Upper management does not like projects that lose money. The new products team increases the size and number of test markets to increase sales volumes, to achieve economies of scale. The budget numbers now look better, but not good enough for upper management. So, the new products team increases the projected share of market until the budget is acceptable to upper management. New products quickly die without management commitment and determination.
New products are risky.
Many will fail. In the final analysis, determination is probably the single most important predictor of new product success. They keep trying and they keep experimenting until they find a success formula. Then they go to the bank and roll the dice again and again. Inc. All rights reserved.