Explain product failure

Assignment Help Marketing Management
Reference no: EM1334956

Explain Product failure

Did you know that only about a third of the products test-marketed do well enough to go on to the next phase? The areas that are most often used as a "test market" include: Grand Junction, CO, Cedar Rapids, IA, Eau Claire, WI, Pittsfield, MA, Odessa-Midland, TX and Wichita Falls, TX. These areas have been selected because they appear to have characteristics that are most representative of the US consumer.

Read the list (below) for the eight reasons why products/services fail. In addition to these eight reasons, a ninth reason could be added which includes, "little or no market research." Although no research can be associated with many of these failures, it certainly is worth a listing of its own since it is an area that is often overlooked.

DailyFinance is a consumer finance site that helps consumers manage their money and understand how the important stories of the day affect their wallet. Journalists go out, get the stories and share them on this website.

Pick any one of the 25 failed products from this website and list detailed two reasons why you think the product failed. Be sure to connect your reasoning's to the list of product failures in the attachment. Please ensure that the reasons are thoroughly complete and not in general.

Marketing Resources for New Product Failures
Marketing Reasons for New-Product Failures: Both marketing and non-marketing factors contribute to new-product failures. Using the research results from several studies on new-product success and failure, we can identify critical marketing factorsâ?"which sometimes overlapâ?"that often separate new-product winners and losers.

1. Insignificant point of difference. Research shows that a distinctive point of difference is the single most important factor for a new product to defeat competitive onesâ?"having superior characteristics that deliver unique benefits to the user. In the mid-1990s, General Mills introduced Fingos, a sweetened cereal flake about the size of a corn chip. Consumers were supposed to snack on them dry, but they didn't. The point of difference was not important enough to get consumers to stop eating competing snacks such as popcorn and potato chips.

2. Incomplete market and product protocol before product development starts. Without this protocol, firms try to design a vague product for a phantom market. Developed by Kimberly-Clark, Avert Virucidal tissues contained vitamin C derivatives scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. It failed in test market. People didn't believe the claims and were frightened by the "cidal" in the brand name, which they connected to words like suicidal. A big part of Avert's failure was its lack of a product protocol that clearly defined how it would satisfy consumer wants and needs.

3. Not satisfying customer needs on critical factors. Overlapping somewhat with point 1, this factor stresses that problems on one or two critical factors can kill the product, even though the general quality is high. For example, the Japanese, like the British, drive on the left side of the road. Until 1996, U.S. carmakers sent Japan few right-hand-drive carsâ?"unlike German carmakers who exported right-hand-drive models in several of their brands.

4. Bad timing. This results when a product is introduced too soon, too late, or when consumer tastes are shifting dramatically. Bad timing gives new-product managers nightmares. Microsoft, for example, introduced its Zune player a few years after Apple launched its iPod and other competitors offered new MP3 players.

5. Too little market attractiveness. The ideal is a large target market with high growth and real buyer need. But often the target market is too small or competitive to warrant the huge expenses necessary to reach it. OUT! International's Hey! There's A Monster In My Room spray was designed to rid scary creatures from a kid's bedroom and had a bubble-gum fragrance. While a creative and cute product, the brand name probably kept the kids awake at night more than their fear of the monsters because it implied the monster was still hiding in the bedroom. Also, was this a real market?

6. Poor product quality. This factor often results when a product is not thoroughly tested. The costs to an organization for poor quality can be staggering and include the labor, materials, and other expenses to fix the problemâ?"not to mention the lost sales, profits, and market share that usually result. For example, after Microsoft launched its Xbox 360 video game console, millions began to experience the "red ring of death." The problem: The consoles' microprocessors ran too hot, causing them to "pop off" their motherboards. Microsoft had to set aside $1.1 billion to extend its warranty and fix any affected console for freeâ?"costing it future sales and reducing its market share lead in the multi-billion dollar market over rivals Sony and Nintendo.

7. Poor execution of the marketing mix: brand name, package, price, promotion, distribution. Somewhere in the marketing mix there can be a showstopper that kills the product. Introduced by Gunderson & Rosario, Inc., Garlic Cake was supposed to be served as an hors d'oeuvre with sweet breads, spreads, and meats, but somehow the company forgot to tell this to potential consumers. Garlic Cake died because consumers were left to wonder just what a Garlic Cake is and when on earth a person would want to eat it.

8. No economical access to buyers. Grocery products provide an example. Today's mega-supermarkets carry more than 30,000 different SKUs. With about 20,000 new packaged goods (food, beverage, health and beauty aids, household, and pet items) introduced each year, the cost to gain access to retailer shelf space is huge. Because shelf space is judged in terms of sales per square foot, Thirsty Dog! (a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for your dog) must displace an existing product on the supermarket shelves, a difficult task with the high sales per square foot demands of these stores. Thirsty Dog! failed to generate enough sales to meet these requirements.

Reference no: EM1334956

Questions Cloud

Issues-decision making methodologies and client strategies : What types of issues can interfere with the client's ability to understand fully his or her wants?
Elucidate the impact of an increase in production technolog : In the Keynesian, Classical, as well as Solow model, Elucidate the impact of an increase in production technology
Explain and identify the four ps of the marketing mix : Explain and Identify the four Ps of the marketing mix as they relate to your purchase
Provide the cyclical nature of government tax revenues : Provide the cyclical nature of government tax revenues and spending, how would the resulting budget deficit or surplus vary over the business cycle.
Explain product failure : Explain Product failure and DailyFinance is a consumer finance site that helps consumers manage their money and understand
Analysis of decision making strengths and weaknesses : Choose a decision Making Methodology. Provide a brief explanation of the steps involved, the types of decisions that could be made using it, and a brief analysis of its strengths and weaknesses.
Describe the pros and cons : List and explain the pros and cons of being a technological leader as a functional strategy.
Discuss the evolution of the federal reserve system : Discuss the evolution and responsibilities of the Federal Reserve System. What circumstances promulgated both the development and composition of the system.
Improving the recruitment efforts police agencies : How could a police agency improve it's recruitment efforts for women and minorities?


Write a Review


Marketing Management Questions & Answers

  Explain ebusiness organizations

Explain eBusiness organizations and describe why they have a competitive advantage and explain if you think they will be able to sustain this competitiveness

  Explain internal hosting and external hosting

Explain Internal hosting and external hosting and can a business have both Internal hosting and external hosting

  Explain e-business vulnerability to business cycles

Explain E-Business Vulnerability to Business Cycles and other situations might create conditions of heightened vulnerability to eBusiness reliability risks

  Define the legal environment of business and online commerce

Explain The Legal Environment of Business and Online Commerce and Propose an argument that the actions of the defendants to petition

  Explain e-business brainstorming

Explain E-Business Brainstorming and What e-Business strategies would you recommend Prehistoric Computers to adopt

  Define a discussion on the pros or cons of internet taxation

Explain A Discussion on the Pros and Cons of Internet Taxation and do you think there should be a nationwide internet sales tax as a way of reducing the federal income tax

  Explain computer models in management

Explain Computer models in management and what are the three most important factors you would use in evaluating computer hardware

  Explain decision making software

Explain Decision making software and you have been asked to visit a local company that has an information systems department

  Explain privacy and marketing and the internet

Explain Privacy and Marketing and the Internet and Privacy is a bigger issue in the online world than the off-line world

  Inflation for good business

Suppose someone argues that inflation is good for business (because businesses receive higher prices) and bad for individuals (who pay the higher prices). Is there any validity to that reasoning? Why or why not?

  Explain mobile computing

Explain Mobile Computing and explain the differences between fixed computing and mobile computing

  Explain barcode scanning benefits

Explain Barcode Scanning Benefits and tracks inventory and provides data to the purchasing department information for future inventory purchases

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd