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ABSTRACT:
fail to come to fruition, the following research will show some reasons for
substantial reasons can be cited for the failure of these projects. A few
examples are: did the plan lack the necessary funding or financing to
bring it to fulfillment; was the project dependent upon only one person;
particular development.
one person fail, while another succeeds? Is there an inner hidden quality
in the successful person that is lacking in the person who fails? These and
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PRODUCT FAILURES AND THEIR STRATEGIES
INTRODUCTION:
The withdrawal of the product from the market for any reason;
The inability of a product to realize the required market share to
sustain its presence in the market;
The inability of a product to achieve the anticipated life cycle as
defined by the organization due to any reason; or,
The ultimate failure of a product to achieve profitability.
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PRODUCT FAILURES AND THEIR STRATEGIES
offering products or services to a price that exceeds the costs. The fact
that products don’t sell forever also adds to the importance of developing
new products. Each product has a limited life cycle involving five stages:
product development, introduction, growth, maturity and decline.
On a company level companies can create economic growth in
internal or external ways. Anderton defines internal growth as higher
output within a firm, and it could be achieved through increased
investments or increased labour force. Merger, amalgamation and
takeover are some of the external ways to realize higher growth rates.
Corporate growth leads to economic growth and is therefore
important in a macroeconomic point of view. The profits from durable
economic growth for a nation are several, for instance economic growth
increases government finances, and will give possibilities like better
welfare, higher spending on health care and education, or improved
infrastructure. In this context it is clear product development is an issue of
significance even outside the micro-level.
Failure is the lack of success. Is failure being down-and-out and
broke? Just because you fail at something doesn’t mean you are
impoverished, or does it? Psychologically speaking, what is failure?
Studies indicate that failure is nothing more than a state of mind (Hirsch,
2002). Failure is the result of taking on a task without having the proper
resources, at a specific time, to accomplish it. Failure can be someone
else’s perspective or thought about how a specific task should be
performed (Dyer, 1976). Individuals and businesses may fail several times
before coming up with an end result that fills a specific need. Even
psychologists and scientists have failed in their experiments while trying
to find a solution to a particular case study (USA Today, 2004). Handling
failure is the key to success and the proper way to handle failure is a
learned skill. Learning these skills will prevent other psychological
disorders, of which many have failure as the root cause.
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PRODUCT FAILURES AND THEIR STRATEGIES
help prevent future failures. Studying the history of product failures may
generate some insight into the reason for those failures and create a list
of factors that may increase the opportunity for success, but there are no
guarantees.
High level executive push of an idea that does not fit the targeted
market.
Overestimated market size.
Incorrectly positioned product.
Ineffective promotion, including packaging message, which may
have used misleading or confusing marketing message about the
product, its features, or its use.
Not understanding the target market segment and the branding
process that would provide the most value for that segment.
Incorrectly priced—too high and too low.
Excessive research and/or product development costs.
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PURPOSE:
The introduction leads us to the following question: What product
development processes should a company consider when developing new
products to reduce the risk of failure? We want to compare product
development methods and theories with the practices in companies, and
investigate whether formal product development processes and failure
rates are connected.
METHODOLOGY:
This chapter aim to describe our methodological choices during the
writing process of our research paper. In the end of this chapter we will
discuss validity, reliability, and the ability to generalize our conclusions.
The work has been developed through the following process.
CONSUMER ADAPTATION PROCESS:
FIVE PRODUCT CHARACTERISTICS INFLUENCE THE RATE OF ADOPTION
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AMWAY CORPORATION
Amway Corporation was first given its shape in 1959 by two persons
in Michigan ada usa. It recorded for more than half a million dollars sales
in just few years from the commencement of business. They had a typical
approach for the business making it a complete new concept of man to
man marketing and sales which was applauded by every one who were
involved in it. Amway is now a leader in its own way continuing its winning
spree in which ever nation it enters globally.
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the product length is concerned it stretches from home use products like
soaps to luxury products..
There are several factors behind its downfall in china but the
most important consideration left behind was the slept factors of
china.
ECONOMIC FACTORS:
The gap that exists between rich and poor is growing almost as fast
as overall income, depicting that inequality is increasing nearly with the
country’s development. Huge income discrepancies emerging within
social groups and between regions can be seen clearly.
POLITICAL FACTORS:
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SOCIAL FACTORS:
TECHNOLOGICAL FACTORS:
CULTURAL FACTORS:
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risk and fear for loss of the status in society if at all wrong purchase
decision is made. Generally the relation between perception of risk and
loyalty to the brand are closely related.
LEGAL FACTORS:
The main challenge was to interpret the very different cultural and
political implications of their presence in a changing communist
country.
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Some other reasons for the failure of the product could be:
They were not able to find the right market niches suited to the
business.
Resistance for adaption and updating the products to local needs.
Amway produces standard products to meet consumer needs in
Japan, Philippines, Taiwan, and Singapore... but their product range
may not be appropriate for China.
There was no added value to their products by the consumers as
the segmentation of the products in the mindset of the people was
not as efficient as the products they used in daily means which
made the difference.
Amway had not considered the environmental influences on
international marketing that could represent barriers to their entry
in China.
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PEPSI BLUE
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Over the years Pepsi is trying to compete with the brand coca-cola.
Pepsi blue was primarily designed to compete the coca-cola’s
vanilla coke.
COLOR:
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reason why many restaurants have realized this truth and accordingly
design their rooms in the shades of red, yellow, green etc that would
stimulate the customers easily.
COLOR STRATEGY:
It is observed that people tend to relate the typical cola to the color
red. And as such it took years for Pepsi to position itself in the market with
the brand color blue and red. Where the color red symbolizes cola and
blue to make itself stand out from coca-cola. However in the recent years
one can visualize coca-cola to color red and Pepsi to color Blue.
DISTRIBUTION STRATEGIES:
During the world cup 2003, Pepsi Blue was launched in the Indian
markets, although there were only limited editions initially. Basically the
color was marked to match the Indian cricket team’s sports shirt.
COUNTRY RESPONSE
Panama
Colombia
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Costa Rica
Canada
Indonesia
BRAND NAME:
Also one can notice that the product was named as “Pepsi –Blue”
which further creates an image that it should taste like the regular Pepsi,
but it actually did not.
TARGETING:
DISCUSSION:
The problem is not that Pepsi was not innovative enough to design
new ranges of cola’s. The problem can be even stated that Pepsi was
trying to please the customers so much that it forgot to view the impact
that the blue drink would have on customer’s minds. Also it is imperative
to say that Pepsi has failed to communicate the product well to its target
customers. It adopted creative promotion technique that could be seen
from the advertisement.
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SUGGESTIONS:
When the communication of the product fails it can be brought back to the
design development stage and retested to meet the expectations of the
target customers. And sometimes the innovative idea could be simply
dropped if it does not possess sufficient caliber.
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It’s not a thumb rule that a business should always necessarily follow the
customer preferences. There are certain fundamental human preferences
that a business should not ignore. As discussed earlier, blue color is
generally perceived as an unnatural color by most of them. Also human
beings generally have an aversion towards food that is blue in color, which
also reduces the appetite.
CONCLUSION:
It means that Amway must follow the culture rather than imposing
itself, as its rival direct marketer Avon did. So it has to start practically
from scratch in marketing the business in China, otherwise, the probable
bans of the Chinese government could be dangerous for its activity. It
should begin with new distribution methods in order to work with China’s
regulations and adapting the products to local needs.
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Marketers, beware! The consumers are smart now. The only thing you
can do is out-smart ‘em.
REFERENCES:
1. Rick Aristotle Munarriz, for Fool.com. September 5, 2002. "Swallowing
Pepsi Blue".
7. www.Scribd.com/docs/art-62342344#
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