Nancy Smith, Ph.D., vice president and food industry consultant at Arthur D. Little, agrees there is no hard data on food product failures. One reason lies in defining a successful product. Or it might be the number of years the product survives in the marketplace. A regional company would have a different definition. The basic product might succeed, but particular flavors or packaging sizes might fail.
Success can therefore be incremental.
Smith estimates that only one in 10 new food products succeeds in the marketplace. The failure to conduct the right kind of market research is the major reason for most new product failures. Food processors are realizing this. We're seeing more integration of marketing, market research and research and development in the form of product-development teams. Inadequate research Several studies confirm the idea that inadequate market research is a major reason for new product failure.