Ashulosh 1hu

PCDM-RM
09II-006
8rund Munugemenl Asslgnmenl

Product will be failure due to several reasons some of the reasons are:
1) Faulty product idea
2) Distributed related problem
3) poor time of launch
4) Improper Positioning
aulty product idea
Ex: polar industries (COOL CATS)
The product often fail because faulty of product idea. A good idea can revolutionize the
market but a bad idea may prove bitter to the firm or it may backfire Eg: Polar industries in
1991 launched "COOL CATS" fan - decorated with cartoon characters meant primarily for
children. The fan was priced at premium; the idea was that children's were increasingly
becoming influensors in purchase decisions and to attract the kids with the cartoon
creatures and to position the product exclusively for kids.
aulty product idea
The product failed miserably inspite of its huge advertising budget because when the fan
was put on it didn't have any colour effect and the customer did not justify its premium
price.
Distributed related problem:
NESTLE
The new product fails if the product is unable to meet the channel requirements. While
developing the product the channel requirements must be given adequate consideration.
Eg: when NESTLE launched its new chocolates the product and promotion was ok but the
product failed in the distribution side because the company stipulated the product to be
stored in refrigerators.
#eason of failure
1)The product faced two problems in the distribution side because it meant excluding a
number of retail outlets as they didn't have this facility.
2) secondly the chocolate was not picked by the customers as it was not seen upfront in the
retail shops. Finally Nestle had to reformulate the product according to channel
requirements.
poor time of launch
Ex: Kinetic Merlin
Too early or late entry into the market is a common cause of failure. Kinetic Merlin was
launched in pune in 1991.It was a 3 in 1 set consisting of a colour television, a stereo with
detachable speakers and a home computer. The product was targeted at the Indian
consumers who are fond of sophisticated gadgets to immediately adopt such an innovative
idea but in reality the idea was too advanced for the customers to digest at that time
because they were not exposed to such type of products before.
Improper Positioning
Ex: Titan Tanishq
Positioning means putting the product into the predetermined orbit. Improper positioning
may affect the product success. Eg: Titan Tanishq introduced their 18 carat jewellery and
the product was positioned at elite segment but there was a contradiction as to why these
elite segment should go in for a low carat gold because the norms for gold in India at that
time was 22 carat. The product failed miserably in retrospect Titan had to introduce 22-
carat jewellery.