A strategic framework for minimising new product failure with specific reference to a high involvement product category

M.Comm.New products are essential for a firm's long term growth and survival. But the process is frought with risk since new products fail at an unacceptably high rate in the marketplace. Thirty five years of research has not improved the results materially necessitating a re-investigation into the causation of new product success I failure outcomes. The study investigates the total market environment to identify key new product success and failure factors. This entails an examination of the firm's micro, macro and market elements to provide insights into the problem and provide information for strategic marketing planning to reduce the risk of failure. Since past research identified key failure factors by analysing results obtained from across many industries and from a firm's perspective, this study focuses on one industry and one complex product to identify new product threats from a customer's perspective. The reason for this approach was to identify the nature of the industry and product related threats that product managers should be aware of when launching new products, aspects which are not contextually raised in the literature. Customer value- and performance quality expectations, were found to be strong independent variables that determined the customer's value and performance satisfaction which in turn influences total customer satisfaction. In turn, total customer satisfaction is a pre-requisite for first time-, repeat and ongoing purchasing, a process essential for new product growth, increased demand, new product profits and its success. A new product which cannot generate planned profits is a failure. The empirical study verified these findings, leading to a proposed strategic framework for guiding the new product process. The framework considers the adoption of the marketing concept, neglected by most innovating firms and a customer focus to manage total customer satisfaction profitably before and after launch along the new product's life cycle. The framework formalises the new product development activities in the firm's hierarchical levels to attain and maintain total customer satisfaction, from the ideation stage to the product's planned termination phase. To avoid the risk of new product failure, customer satisfaction has to be maintained with superior new product/service value from the customer's perspective and with a sustainable competitive advantage from the firm's perspective. These objectives are best be achieved by planning, implementing and controlling the new product's marketing strategy that focuses on achieving total customer satisfaction in a turbulent business environment