![]() The premise behind the product was simple: To create a new, convenient way for customers to enjoy coffee instantly, without having to actually make themselves a cuppa at home. In 1990, Maxwell House launched Ready to Drink Coffee. Solving a non-existing or rare problem won’t earn the popularity you need to gain traction in the market. Reason #2: Solving the Wrong ProblemĮvery successful product needs to solve a problem for its users, and, going back to the idea of product-market fit, there need to be enough users with that specific problem. Companies that routinely earn and keep product-market fit do so by adapting their product regularly to fit the changing needs of their market (not the other way around). Targeting the wrong market can lead to problems with fit, as can chasing a market that’s too small to sustain your business. What’s the lesson from this mistake? It’s hard to know how the market will react to a product and marketing messaging, hence why it’s crucial to test these things beforehand. Microsoft’s marketing campaign fell flat compared to Apple’s, and the Zune’s feature set wasn’t as valuable to users as the iPod’s was. Why did Zune fail? Microsoft was just chasing Apple and created a product that offered no reasons for customers to switch. Yet, in spite of great promises, Zune failed on the market. The company launched Zune, which promised to do everything that Apple’s device could do too. I’m sure you remember how Microsoft decided to take on the iPod in 2006. ![]() Without product-market fit, you’re unlikely to find much success with your product, no matter how well it works. Product popularity growing through word of mouth.When you’ve found it, you’ll see signs like: Reason #1: No Product-Market FitĪchieving product-market fit means you’ve developed a product that offers value to the right market for your business. New products can fail for a variety of reasons-poor product-market fit, unanswered customer needs, or staunch competition, to name a few. The stakes are high for new startups to launch products that earn enough revenue to sustain the business-but it isn’t an easy feat to achieve. While newer research suggests that the number is closer to 40%, the likelihood of product failure still represents a very real risk to fledgling companies. Some popular statistics overestimate that 80% to 95%-the vast majority-of new offerings wind up as failures. It’s difficult to say precisely how common product failure is.
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