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New Product Commercialization : Common Mistakes

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New Product

Commercialization :

Common Mistakes

Why do products fail?

Product development

stages

1. Initial screening

2. Preliminary market assessment

3. Preliminary technical assessment

4. Detailed market study

5. Preliminary business analysis

6. Product development

7. Alpha tests

8. Beta tests

9. Test market

10. Trial production

11. Final business plan

12. Production ramp up

13. Market launch

Two types of innovation

Incremental Innovation

Breakthrough Innovation

Two types of innovation

Breakthrough Innovation

• New to world

• New to Businesses

• New customer

• New Technology

• New processes

• New Knowledge

• New Business Model

Incremental Innovation

• Fits to core competency

• Fits to core business

• Brings short term value

• Additions

• Something that already

• Exists

What are some common

Marketing mistakes?

Mistake 1: Differences in

management tasks required of

incremental versus

breakthrough projects. Cross-functional teams require people of appropriate

cross-functional abilities.

Mistake 2: Differences in

resource allocation to

incremental vs. breakthrough

projects

There is a common tendency that breakthrough projects equate with high profile activities needing resources and top management support, and that incremental projects are of less importance.

Emami fair and handsome men vs. Emami fair and ageless.

Mistake 3: “Wait and see” and “business as usual”

attitudes.

Using existing organizational systems often means

completely missing the boat on the real customer and his real needs.

Mistake 4: Positioning strategies should be driven by the market

rather than ambitions of product

champions- Delusionary

products

Coca Cola

1985, Coca cola introduced a new and sweeter version of their beverage ( COKE ) to compete with Pepsi .

Blind test was conducted : People preferred Pepsi over Coke

Result : New Coke Failed

Re launched old coca cola recipe and renamed Coca cola classic

*mistake was : product was introduced without finding what customer exactly wants and spending time and money on same.

Some other common

mistakes

Lack of research and testing

Improper focus and positioning

Marketing without a USP

Failing to capture repeat customers

Lack of focus on potential customer’s needs.

Marketing Mishap: Kellogg’s –a failure of a brand

Product: Kellogg’s was essentially launching a western product attempting to appeal to Indian tastes. Globalization may be an increasing trend, but regional identities, customs and tastes are as distinct as ever.

Pricing: The local competition was selling at one third the price and both were competing with the staple diet, yet Kellogg’s never worked on correcting this very important factor.

Place: Eating cornflakes for breakfast was totally alien culture for Indians and never ever try and make consumers strangers to their culture.

Competition: Don’t underestimate local competitors, sometimes it is big to be challenged.

Promotion: Kellogg in its advertising campaigns hinted that the Indian breakfast was not nutritious and was not very good for health. This deeply hurt the sentiments of the home maker.

GAP

The Gap

Gap changed its logo from the familiar blue

square to a more "modern" design. After spending millions on the rebranding, the company

encountered a firestorm of customer ire. They

promptly changed the logo back--thereby

wasting even more money.

Lesson: Sometimes it's better to leave well enough

alone.

Why did Tata Nano never take

off the way it was expected to? Alternatives

Aspirational

Intra-city transportation

Pricing nether land

Failure due to perception

Unclear targeting

Ratan Tata: Marketing Nano as 'cheapest car' was a

mistake

SUBMITTED BY:

AMRITHA VARSHINI GADDAM

KSHAMA PUJARI

SALONI LHILA

ALEX

SNEHA JADHAV