Top reasons that cause failure of products
6 likes3,545 views
The document discusses common reasons why products fail, including: 1) Timing issues like launching at the wrong time, as with the Ford Edsel launched post-recession when consumers wanted smaller, cheaper cars. 2) Targeting the wrong market, such as McDonald's trying to appeal to more sophisticated urban customers instead of its base. 3) Fixing things that weren't broken, like New Coke which changed Coke's successful formula without understanding customer passion for the original. The document also discusses challenges with unclear product development responsibility and the importance of customer focus over just product focus in development.
Top reasons that cause failure of products
- 1. Why Products Fail ? Check out the top 6 reasons behind product failures
- 2. 1. Timing – Overshooting the Innovation – Ford Edsel Ford Edsel – Elaborate launch of a product at completely wrong time. Post recession, people wanted smaller, less expensive and more efficient cars
- 3. 2. Wrong target market – Mc Donalds Mc Donalds tried to expand to a demography that was totally at odds with the fast food chain’s brand identity. Tried to expand from fast, low – priced American food to sophisticated, urban demographic. Burger with the grown up taste
- 4. 3. Fixing what ain’t broken – New Coke To secure market share, Coke tried to reinvent its already successful formula to make the drink sweeter & smoother like Pepsi. However, Coke failed to consider the passion of its customers for the distinguished old Coke. Within a month Coke yanked New Coke from store shelves “We did not understand the deep emotions of so many of our customers for Coca-Cola,” said company President Donald R. Keough.
- 5. Most product development effort lose momentum due to lack of ownership, action and unclear responsibility of tasks. Address such challenges with RACI Matrix 4. Responsibility Vs Ownership
- 6. 4. Responsibility Vs Ownership (Continued) 3 Rules 1) Each Role should have at least some participation in at least one task. 2) Not all Roles will be involved in all tasks. 3) One and only one Role can be specified as Accountable for each task. Roles Tasks RACI – Responsibility Assignment Matrix 3 Questions 1) What is to be done ? 2) Who is Involved ? 3) What are the levels of participation? 1) Responsible 2) Accountable 3) Consulted 4) Informed
- 7. 5. Product Development Vs Customer Development Stage Gate Product Development – Product Focused Approach Customer Development Cycle – Customer Focused Approach Ensure that product is targeted at right type of customers (Enthusiats, Early Adopters & Mainstream) at different phases of product lifecycle.
- 8. 6.Consumer Surveys Vs Experience Maps Consumer surveys capture information on HOW CONSUMERS BELIEVE THEY USE PRODUCTS? Experience maps capture information on HOW CONSUMERS ACTUALLY USE PRODUCTS?
- 9. What makes some products really great ?
- 10. If you like this presentation and want a free product management toolkit, please write to us at ProductExperiencia@gmail.com
Editor's Notes
- #4: Indeed, the advertising campaign for the Arch Deluxe rammed the message home with various images of kids shunning the ‘sophisticated’ product.
- #5: Indeed, the advertising campaign for the Arch Deluxe rammed the message home with various images of kids shunning the ‘sophisticated’ product.
- #6: Indeed, the advertising campaign for the Arch Deluxe rammed the message home with various images of kids shunning the ‘sophisticated’ product.
- #7: Indeed, the advertising campaign for the Arch Deluxe rammed the message home with various images of kids shunning the ‘sophisticated’ product.
- #8: Indeed, the advertising campaign for the Arch Deluxe rammed the message home with various images of kids shunning the ‘sophisticated’ product.
- #9: Indeed, the advertising campaign for the Arch Deluxe rammed the message home with various images of kids shunning the ‘sophisticated’ product.