PRODUCT SUCCESS AND FAILURE

presented by Nissar.b S3.MBAIMT

product

In marketing, a product is anything that can be offered to a market that might satisfy a want or need.

In retailing, products are called merchandise.

In manufacturing, products are purchased as raw materials and sold as finished goods.  

Product success

When an organization introduces a product into a market they must ask themselves a number of questions.

Who is the product aimed at? What benefit will they expect? How do they plan to position the

product within the market? What competitive advantage will the

product offer over their competitors?

‘Marketing is not about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer’

Kotler suggested that a product should be viewed in three levels.

Level 1: Core Product. What is the core benefit your product offers?. Customers who purchase a camera are buying more then just a camera they are purchasing memories.

Level 2 Actual Product: All cameras capture memories. The aim is to ensure that your potential customers purchase your one.

The strategy at this level involves organizations branding, adding features and benefits to ensure that their product offers a differential advantage from their competitors.

Level 3: Augmented product: What additional non-tangible benefits can you offer?

Competition at this level is based around after sales service, warranties, delivery and so on.

When placing a product within a market many factors and decisions have to be taken into consideration. These include:

Product design – Will the design be the selling point for the organization as we have seen with the iMAC,  the new VW Beetle or the Dyson vacuum cleaner.

Product quality: Quality has to consistent with other elements of the marketing mix. A premium based pricing strategy has to reflect the quality a product offers.

Product features: What features will you add that may increase the benefit offered to your target market?

Will the organization use a discriminatory pricing policy for offering these additional benefits?

BRANDING.

Product failures

High level of executive push of an idea that doesn’t fit the targeted market.

Over estimated market size Incorrectly positioned product Ineffective promotion(e.g.: packaging etc) Incorrectly priced Poor timing of distributions Key channel partners were not informed or

involved, or both Conducting marketing research and ignored

those findings etc…

Some successful products

Maruti swift

“the all new maruti swift is fully loaded with a range of exciting new features. It’s a perfect complement to your evolved lifestyles and tastes. and the best way to take your driving pleasure to a brand new high”.

The pricing of the maruti swift is comparatively low compared to competitors(hyundai)

They are giving an value based offering to customer.

Car of the year 2009

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YouTube - Swift New Advertisement.mp4

PARX

Parx is a premium casual lifestyle brand, which is positioned to cater to the needs of consumers who are looking for dressing up for life across occasions and events.

Parx reflects the persona of the energetic 22-30 year old who is aggressive, outgoing, dynamic and lives his life to the fullest. Parx reflects the pulse of the new generation which looks at clothing as a reflection of their attitude and vibrancy.

Parx has been the preferred choice of brand in the causal wear segment with continuous innovations and international trends and styling.

It is positioned to meet the consumer needs for "beyond work" requirements and this has been addressed through categories like Urban, Sport, Excursion and Club.

Distribution is through the following channels: Exclusive Parx brand stores, which are company-owned and operated.

There are currently 13 exclusive stores and a few more to be added by the end of this year.

 Parx’s exclusive brand stores are directed toward delighting the customer with high standards of service and providing an unique shopping experience.

NOKIA N-series

Customer satisfaction  Customer perception Making satisfactory progress Enhanced product portfolio Increased distribution channel Focused on replacement Increase commitment to emerging market Aggressive pricing etc. AIDA in

nokia(attraction,interest,desire,action)

TATA DOCOMO

It’s from Tata teleservices ltd. First mobile service provider to have

second pulse tariff. Brand image of Tata. Large variety of plans and affordable

to all class people. Tata docomo having a good quality

network which provide high voice clarity

Good range of channel of communication. as Tata already exist in this field as Tata indicom.

Following distinctive style of advertisement in TV's and newspaper.

tat.wng.mp4

SURF EXCEL

HUIL introduced surf in 1959 Wide variants changes from rational appeal messages to

emotional appeal messages Offers and schemes Strong distribution channel. Innovative ad approaches Price quantity and variety Unique selling points Success of slogan “stains are good” CSR of the organization

PARACHUTE

Parachute is premium edible grade coconut oil, a market leader in its category.

 Synonymous with pure coconut oil in the market, Parachute is positioned on the platform of purity.

The quality of the product has contributed to its lasting success

The consistency, with which Parachute has delivered, ensures consumer loyalty and trust in the brand.

Innovations in the packaging whether from the aspect of user-friendliness or aesthetics have and continue to help Parachute grow.

Some of the examples of innovation for Parachute are:

 Flip Top Cap for Parachute bottles to enhance the safety and protect the purity of oil.  

Easy Jar of Parachute to facilitate usage especially during winters.  

Parachute Mini - a bottle shaped small pack being sold at an MRP of Re. 1  

20 ml Parachute - a Rs 5 SKU that enables loose oil users to upgrade to Parachute

GILLETTE

First to introduce shaving gel in Indian market Packaging is an competitive advantage for

Gillette Their products in premium category. Powerful distribution using distributors and

franchisees Extensive promotion for their products in

Indian as well as world market. Roger federrer,Tiger woods, David bechkam&

Thierry Henry are world ambassadors called as Gillette champions.

BATA

75+age old footwear brand Positioning in fashion footwear

segment with a huge range of trendy foot wear

Focusing on customer satisfaction Expanding it’s retail footprints in

major metro’s and big cities Reaching rural through dealers Their competency is a large

showroom space

Focus on product design Range of offering in every market

segment and in every occasion Targeting for family as whole Installation of “point of sale ”

software's in all outlets Better brand image.

COCOCOLA

Strong brand name Local marketing strategies Innovative packing Size and flavor variants Prices vary in each season Eye catching positions of cococola Lot of sales promotions All types of advertisements Brand ambassadors

ADIDAS

Youth oriented designs Innovative advertisement campaigns Strong brand name and brand

loyalty Attracting outlets Danny cipriani brand

ambassador(David beck ham)

Some successful products

Bajaj pulsar Reebok Nike Lee cooper Sparx Dh shirts and trousers Raymond's etc

Some failed products

NEW COKE

New coke last only for 79 days. “we didn’t understand the deep

emotions of so many our customers for coco cola” Donald r. Keogh (president)

Different from original brand taste. Before launched new coke they had

invested us$4,000,000 in market research and undertook 200,000 blind taste tests.

They had focused on the product ,not brand. Neglected emotional value MICROSOFT TV WebTV (now MSN TV) offered consumers Internet

connection via their television sets in the mid-1990s. A Cable World article by Andrea Figler describes it this way:

The service grew quickly at first, attracting mainstream users that typically shied away from technology.

But to Web TV's dismay, they became the dreaded consumer: a customer who failed to produce new revenue streams but insisted on creating expensive customer service problems.

So Microsoft which bought WebTV in 1997, scrapped the brand. It never passed the one-million-subscriber mark. 

Colgate kitchen entrees

The Brand Failures blog explains: In what must be one of the most bizarre brand extensions ever Colgate decided to use its name on a range of food products called Colgate's Kitchen Entrees.

Needless to say, the products did not take off and never left U.S. soil.

The idea must have been that consumers would eat their Colgate meal, then brush their teeth with Colgate toothpaste.

The trouble was that for most people the name Colgate does not exactly get their taste buds tingling.

Harley Davidson perfume Harley-Davidson fans are known as very

loyal customers. However, even the beloved motorcycle brand can go too far.

T-shirts and cigarette lighters were one thing, but when the company started to make aftershave and perfume, fans were not impressed. As the saying goes, less is more, and Harley-Davidson had spread itself too thin. Or maybe people just weren't too keen on the idea of smelling like a motorcycle.

Some important failed products Smith and wesson mountain bikes Cosmopolitan yogurt Life savers soda Coors rocky mountain spring water Cocaine energy drink (red bull) Apple Newton Delorean car Kellogg's breakfast mate Pepsi am & crystal pepsi Rj reynolds smokeless cigarettes