Joan and Julie also talked about timing. Timing is one factor that affect a product. When market is ready, no matter how good is your product, it will not gain a big market share. For example, if someone launched iWatch twenty years ago, I do not think people want to buy it. The product is too advanced for them. People do not need it back in that time. Compare to now, we need that kind of product and people are familiar to use electronic advices. People have desire for those product, so iWatch has a much larger market now.
To connect with what Joan and Julie said in the interview, here are some points and concepts that are similar to what we have learned. In the first lecture, we learned common reasons of new products failures. One of them
is product incorrectly positioned and advertised. Like Dr. Pepper 10, wrong advertisement usually conveys wrong information to the consumers. For iPad, they know what information and products features they want to convey to people. In the commercial they told people how using iPad will make you a cooler, smarter and a better person. After consumer using it, iPad indeed makes people’s life easier. In this way, when Apple launches the next version, early adopters will buy it and this keeps their market. Companies should always do researches before they launch the product. They have to compare with their competitors and see what are their prices, advertisements and the ways they promote the product. Companies can always learn form the successful and failure examples. If you have a high price than your competitors, consumer may not prefer the product, because they can use less money to buy other cheaper substitutes. High cost of product development is another cause that mentioned in the textbook and it’s also the top reason Joan had mentioned in the video. It is good for a company to pay attention on product development, because they will make a product that has a good quality and design. When a company spend too much money on one product, it may be a bad thing. Here are several reasons. First, there may not be enough money for other things, for example, advertisement, distribution, customer services and etc. Without those things, even a good product cannot be successful in market. Without advertising, people won’t know what is the product and the features. If customer has
Companies realize what people need and they take it as sources to produce commodities. However, companies which have famous brands try to get people’s attention by developing their products. Because there are several options available of commodities, people might be in a dilemma to choose what product they looking for. In fact, that dilemma is not real, it is just what people want. That is what Steve McKevitt claims in his article “Everything Now”.
Having a large market share can be very helpful because companies earn more money to produce more. They also create brand loyalties even if they increase their prices. However, companies who have large market shares often times do not provide a lot of innovation. These companies usually feel they don’t need to get ahead because they hold such a big share in the market. This sometimes hurts their brand because when new products enter the market with cool features, consumer are likely to be engaged and
The ease for companies to enter and exit the industry with little capital makes it appealing to anyone. The fragmentation of the industry has led to great competition, the lack of differentiation in the industry will make it hard for any company to stand out from the rest. The power of buyers and amount of competition will force companies to increase their R&D and innovation as the industry matures.
More new products need to be introduced and research needs to be done to find out which products will be most popular and profitable.
“The product life cycle is concerned with the sales history of a product or product class.” (Mullins & Walker, 2013, pg. 271) Beats by Dr. Dre’s mission is to be the leading producer of headphone and portable speaker systems and since their inception they have been climbing the ladder taking market share from competitors link Samsung and Sony. The current industry climate consists of many big brand names competing for a piece of the pie. All of these big brand names have a unique selling proposition and key features but none have differentiated themselves the way Beats by Dre has. The headphones have become an industry standard and they are an item coveted by the masses, creating an opening for Beats by Dre to introduce The Pill.
In this stage there are rules concerning how long the product can be marketed as new. After the initial introduction time the marketing strategy could and should change in order to have the product seen by as many potential clients as possible. Once an item is accepted word of mouth advertising can be just as helpful as the continued mass media marketing strategies already in use. There have been a number of products that when introduced to the market immediately began to be accepted. A few simple toys such as the Furbies and Tickle-me-Elmo had their moment is the spotlight when introduced prior to Christmas and for some reason flew from the shelves faster than retailers could get them. This type of acceptance into the market would be great for any product as long as the demand was constant. Like the toys, many of today’s technological gadgets are sought after and with the mention of a new upgraded version of the phone, tablet, laptop, or other electronic toy drives people to preorder and wait in line for the date of the items release to the market. This is the acceptance that every developing company would love to have. With the acceptance of their product they will be able to quickly recover the money spent on research and development and product validation. Despite being the next latest
Although most innovations succeed, others fail and there are a lot of factors that can be attributed to that failure. These factors can be firm related, project related, product related or even market related (Van Der Panne, 2003). Firm related factors may be due to the firm’s culture and principles where the firm was not willing to change the way they do things and the firm’s strategy to the innovation.
Since the Apple Watch is not a necessity and relatively expensive for even its lower end models, the economic environment could certainly negatively impact Watch sales in present and future markets. One thing Apple has on its side with the release of the Watch, is “the constant thrill that will make the Apple Watch compelling” (Elgan, 2015). To reach another market segment, Apple has succeeded in marketing the Watch as a fashion piece that caters to the “makers that are high achievers who eat, dress, and live well” (Kotler & Keller, 2012, p. 79).
When analyzing the Apple industry on of the main tools that was used was the five forces analysis. The first force looked at was the barrier to entry, in which capital, brand loyalty and economies of scale were the main components. In an industry where technology plays such a major role capital is a must in order to stay innovative and ahead of the competition in the research and development department. Capital is also needed because there are so many major names in the music player industry already that a major advertising campaign as well as some type of niche in the market to set you apart would be needed. When it comes to brand loyalty, companies like Apple, Dell, Creative Labs, iRiver, RCA and SanDisk already play a major role by producing music players that are reliable and cost efficient depending on the technology that you are looking for in a music player. Economies of scale would play a major role in deciding whether or not to enter the music player market because Apple controls 60 percent of the music player market in which only 11 percent of the population owns a player. This would make one believe that since Apple owns such a major percentage of the market that they have sold enough of their products that economies of scale doesn't really pertain to them. In order for you to get to the point where you can sell your product at low enough prices to compete you would have to sale a large amount and with only 40 percent of the market open to smaller less technological companies this would be a difficult task.
On page four of the IDEO Program Development case, Kelley says, “Failure is part of the culture. We call it enlightened trial and error”. What he means is, no matter how intelligent you are or how much you prepare yourself, you can’t expect for things to go the way you want and be committed to it. In more specific words, he means that one should not get so caught up on a product
The target and positioning strategies of Apple are different as well because most of its strategies are related to cult branding. A cult brand has committed users that want to be a part of the unique brand (Acosta and Asagayam, 2010, p. 165 ) because the brand creates an exclusive image from scratch. To create this appeal, Apple invests a great amount of money into its branding so that customers have the connection with this brand only. Moreover, the positioning is done in such a way that Apple customers prefer form over functioning. The type of products Apple has introduced in the market have created a premium image of the brand. This also shows that Apple has offered a limited number of products in the market, which if diversified would damage the upscale image of the company. On the contrary, companies and competitors like Samsung have extended product line that cater to all types of customers, from lower to high-income levels. Apple has maintained its image of being an innovator by giving extra importance to the minute details of consumer usage experiences so that their preferences are examined closely.
...time, marketers have to know if it will be feasible given the nature of the market, consumer buying behavior, competition, and other environmental factors like economic conditions and government influences. They will have to decide how they will position the product versus competing products in terms of quality and price; whether it is premium price or economy price.
emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***
Pricing. Our product is priced lower than our competitors in our industry. Even though our competitors have a different kind of product compared to us.
The product life-cycle concept indicates as to what can be expected in the market for a new product at various stages. i.e., introduction, growth, maturity and decline. Thus, the concept of product life-cycle can be used as a forecasting tool. It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose. The product life-cycle is also a useful framework for describing the typical evolution of marketing strategy over the stages of product life-cycle. This will help in taking sound marketing decisions at different stages of the product