Systems Architecture B-52 Case StudyCohort 5 MPD Thesis and Thesis Presentation:
A Concept Selection Tool to Extend Pugh Matrices, by
Moe Fawaz, Michael J. Vinarcik, Susan Wellman-Smith
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Why Products Fail
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It’s an X-Ray machine used to fit shoes
It was popular in the late 1940’s and the 1950’s
Then people realized that the radiation danger outweighed the perfect shoe fit – especially when many machines were poorly maintained, leaked radiation, and were improperly adjusted
http://www.neatorama.com/2008/03/06/shoe-fitting-x-ray-machine/
Definitions
Product Failure: (1) occurring whenever management regrets the new product introduction, (2) a product failing to live up to its company expectations in the market
Product Successes: products which met or exceeded their objectives
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Likelihood of product success increases if the company understands user requirements and provides “market-pull” type products
The most common reason for product failure is inadequate market analysis
Surveys have shown that about 2/3 of products considered to be a technical success are product failures
Product success requires:
efficient development
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1 of 7 new product concepts succeed commercially
the others are either cancelled or fail after introduction
80% of the products which fail do so very shortly after their introduction; a further 10% die within 5 years
46% of resources are devoted to new products are spent on products that fail
Product failure spans all domains of products (and services)
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Better products don’t necessarily cost more
Consumers select products closely tailored to their needs using factors such as :
Price
Quality
Reliability
Why Products Fail
Facts About Companies
Established global giants are just as likely to introduce flops as smaller, younger companies
Companies do not learn from each others’ mistakes (in fact they often follow them)
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Idea Failure
Extension Failure
New detergent formula that is supposed to fight any stain
Formula was so powerful that at high temperature it didn't only destroy the stain but the clothes as well
Products need to be tested in every environment they are likely to be used
Ariel, effective without destroying the clothes
The Hot Wheels Computer
A computer that targeted the boys’ market, had hardware decorated with hot wheels flame logo
Attempt to gender marketing
Get designers involved at the start. Designers should give engineers input on product usability and interface issues
Radion
Differentiate yourself from the competition
More expensive and lower quality than its main rival
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Divides existing pie into smaller slices
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First fluoride toothpaste brand.
Crest kept on offering new variations on the same theme, thereby confusing the toothpaste-buying public.
Don't confuse the customer by offering too many product duplicates.
Colgate came with fluoride, tartar control, gum protection…all in one.
Heinz All Natural Cleaning Vinegar
A double-strength cleaning aid
The fact that both vinegar and Heinz are normally associated with things you can eat only made the product more confusing for the customer.
Products can be expanded provided they remain true to their core identity.
Xerox Data Systems
A computer technology and data processing
Xerox was trying to transform itself into an IBM-style "information business,” but the public was unwilling to think of Xerox in any terms other than the copier company.
It is vital to know the association of the brand name in the consumer's mind before introducing a new concept.
IBM
Why Products Fail
Public Relation Failure
When a company doesn’t provide the truth about a negative incident of a particular product
This might lead to an automatic new concept flop
Ex. Firestone handling of the tires issue
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Why Products Fail
The People Failure
Product ultimately depends on individuals who represent it in order to survive
Ex. Enron, top executive acted irresponsibly
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Tommy Hilfiger
The internet facilitates expansion to new markets
It is important to remember cultural differences which can affect the product’s chances to succeed in new markets
Hallmark cards in France (they prefer to write their own words inside)
Kellogg's cereals in India (traditionally had hot vegetables for breakfast, cereal expensive)
Pepsi in Taiwan (“Come Alive With the Pepsi Generation” was translated “Pepsi Will Bring Your Ancestors Back From the Dead”)
Parker pens in Mexico (“It Won’t Leak In Your Pocket” was mistranslated to a slogan involving unwanted pregnancies)
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Failure criteria
Kodak mc3
MP3 player, a digital camera, and a digital video camera, all in one.
All in one for $ 300 came at the cost of quality
Betamax
Was regarded as far superior in sound and picture quality to VHS formats
Consumers turned their nose up on the price – which was driven higher than VHS largely due to Sony’s proprietary stance
Manual Typewriter
Hydraulic elevators
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Polaroid Vs. Digital Cameras
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Of It.
Will Be Used In.
Be Easily Activated By Accidentally Pushing An Object Against It
On/Off Switch Is Placed
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“Controls Are Arranged In
The Configuration As The
Chord Of Familiarity
Radical concepts should be kept on the market for enough time or be heavily advertised
Communicate Clearly
How they should operate it
What its purpose may be
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Consumers will select the product that makes their lives easier
Extraneous Extras
Consumers won’t pay for what they don’t want or can’t use
Failure Is Opportunity
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Ignore Office Politics
Don’t be afraid of pointing out the flaws of a bad concept
Picket Fences
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Convenience
Environment
Ethnicity
Fun
Nutrition
Packaging
Size
Youth
Innovation= 99% perspiration and 1% inspiration
No better way to success than by learning from mistakes
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Why Products Fail