marketing mistakes
TRANSCRIPT
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
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
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