Great decision #14: Konosuke Matsushita decides to institute product demonstrations

Q1. What is the decision?

Konosuke Matsushita decides to institute product demonstrations. During the 1920s, Matsushita was a struggling young business and its latest product, a bicycle light, was initially unsuccessful. Then Konosuke Matsushita ordered salespeople to leave a working light in each store they visited. It was a brilliantly simple marketing decision.

Q2. Whether Decision number bad or good?

The best decision 14 to institute product demonstration was a brilliantly good decision.

Q3. Why it is good or bad decision?

Seeing is believing. If product is innovative and different, customers need assistance in understanding its possibilities. Show them Matsushita believed in making products that had clear, practical benefits and uses.

Q4. Why decision was undertaken?

That was in the 1920s. Millions of Japanese rode bicycles at night with candles or oil lamps tied to handle bars. The flame often blew out on windy evenings. It also wasn't good to have blazing wicks near the wood and paper houses most Japanese resided in at the time. Matsushita was overseeing a struggling family business. He hit on the idea of making a battery-run bicycle lamp. His bullet-shaped light burned from 40 to 50 hours on a small battery. Initially it was unsuccessful. Matsushita began devising ways to create sales channels for his products

by concentrating less on manufacturing and more on building a sales force. This led
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to a retail store network and product demonstration that finally placed Matsushita's company on the map in Japan's electrical manufacturing and retail industry.

Q5. What is the impact after taking decision?

Matsushita took it upon himself to personally market his products to retail bicycle shops. Once the idea caught on, his sales for the battery-powered bicycle lamps soared. Seeing the light at work changed peoples perceptions.Sales took off, and so did the
company.

There were three specific products that were being created in Matsushita's company at this time: the bicycle lamp and battery division, the electrical socket division, and the radio division. For each of these products, a national sales department was formed with regional offices established in strategic locations.

This simple product demonstration impressed customers, and the business took off. By 1932 Matsushita had over 1,000 employees, 10 factories, and 280 patents. Matsushitas decision to show retailers and customers how his product worked. Provided the initial basis for his business empire. Matsushita created a $42 billion business from nothing. He also created one of the worlds most successful brands, Panasonic, and amassed a personal fortune of $3 billion.

Awards and honors:

Grand Cordon of the Order of the Sacred Treasure Grand Cordon of the Order of the Rising Sun (29 April 1981) Grand Cordon of the Order of the Paulownia Flowers (29 April 1987) Knight Commander of the Order of the Defender of the Realm (PanglimaMangku Negara which carries the title "Tan Sri") Medal with Blue Ribbon Medal with Dark Blue Ribbon
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Q6. What is the learning from decision? The reasons for your failure are within yourselves
Seeing is believing. After-sales service is more important than assistance before sales. It is through such service that one gets permanent customers. Expect quality and efficiency. Manufacturer mission(to overcome poverty, to relieve society as a whole from misery, and bring it wealth.) Failure to make a profit is a sort of crime against Society Utilize intelligence.

Products made by Konosuke matsushita insulator plates innovative bicycle light ships and planes electrical socket Radio

Brand name of Konosuke Matsushitas products Panasonic National Technics Quasar