Product Risk Assessment

Product risk assessment is an important aspect of product development, especially when introducing a new product in the market. Launching a new product is like entering unknown territory, where in spite of all the research and consumer surveys, your company’s product may fail to make a connection with the customers. By conducting a proper product risk assessment, the company can understand whether the product is worth launching or not and if it is a sound investment for the company. The areas considered while evaluating risks are performance of similar products, the behavior of the market, effectiveness of the marketing plan, calculation of all the costs which go into the production and sale of the product etc.

Sample Product Risk Assessment:

The following risk assessment has been made by Assessment Experts, California

Name of company: Spic and Span Co

Address: 933 Joshua Avenue, California

Objective of assessment: To identify the potential risks of launching the product and to identify if it will be profitable to the company or be a bad investment decision

Problem areas:

  • There are more than 12 similar products in the market and launching another product of the same category is risky
  • The economy is going slow and so people’s spending capacity has been affected, which in turn will affect their decision of buying the product

Assessment and recommendations:

  • A sound marketing plan will be necessary to create an impact on the minds of the consumers so that they can connect with the brand
  • The product may be priced at lesser amount by compromising on the packaging design and cutting costs there

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