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prk21ms1099 Assignment 1
prk21ms1099 Assignment 1
And, as you’ll see below, even the most successful businesses suffer
the occasional flop.
If that $50 million goal feels right for your business, then go with
that.
The withdrawal of the product from the market for any reason;
The inability of a product to realize the required market share to
sustain its presence in the market;
The inability of a product to achieve the anticipated life cycle as
defined by the organization due to any reason; or,
The ultimate failure of a product to achieve profitability.
So how can you make sure that this doesn’t happen to your product?
After, all, while powerful psychology principles guide product design,
there are still plenty of great failures in product design.
By learning from the mistakes made by others, you can stand on the
shoulders of giants and avoid their pitfalls.
And it’s a good thing, too. A lesser company would not have survived
the (literally) explosive fiasco that was the Samsung Galaxy Note 7.
The Note 7 was the 6th iteration in the Galaxy Note smartphone line.
The hybrid smartphone/tablet unexpectedly featured two battery
design flaws which caused the phones to catch fire.
This testing revealed the two design flaws that lead to the problem.
The one thing we know for sure is that Samsung’s phone batteries
will undergo much stricter testing procedures going forward, testing
for the kind of failures that its pre-Note 7 protocol didn’t catch.
It’s in your product’s best interest that you find any defects before
sending that product out into the wild. A recall is far more costly –
financially and for your brand reputation – than finding flaws early
and fixing them pre-launch.
Neither did I.
Well, it may have something to do with the fact that Orbitz wasn’t
actually a soda. And, it wasn’t a juice, either. Orbitz was a “beverage.”
But beyond that, it was pretty hard to define.
Bustle’s Maddy Foley writes:
Sadly, the taste and texture left something to be desired. Was this
the result of the use of gellan gum – a substance that helped keep the
small gel balls afloat? Or perhaps it was the strange flavor
combinations like Vanilla Orange or Pineapple Banana Cherry
Coconut?
You may capture consumers’ attention and make an initial sale with
a clever gimmick. But, without the product performance to back it
up, word will quickly spread and your sales will fall.
For sustained sales, opt for substance over show. But, if you can nail
both, you’ll be golden.
Juicero (2016 – 2017)
Image courtesy of Fortune Magazine
Sadly, internet infamy was not the business model Juicero was
aiming for.
The hi-tech kitchen accessory had already come under fire for its
hefty price tag, but, the Bloomberg revelation was Juicero’s final
death knell.
The cat was out of the bag – the expensive product was redundant
and unnecessary.
Before long Juicero was forced to slash prices, offer refunds and
finally close their doors completely.
In 2001 Apple launched the iPod and the way we listen to music
changed forever.
While mp3 music players already existed before the iPod, they
achieved only a middling success.
But, the iPod’s superior performance and sleek design changed all
that.
Lesson: If you’re gonna compete with the big boys, bring your “A”
game.
The competition was getting stiffer and Coke was losing market
share to Pepsi-Co.
The backlash was swift and merciless. In fact, Coke was forced to
bring back their original formula – now called Coca-Cola Classic –
only 77 days after New Coke was released.
The Lessons:
Lean into your brand.
When Coke’s fans demanded the classic formula back, Coke listened.
And when Coke Classic returned it was more popular than ever.
Listen to your customers and quickly fix your missteps.
Apple’s Newton Message Pad (1993 – 1998)
Apple has had a few epic fails of their own, including their very first
tablet – the Newton Message Pad.
For those of you who don’t remember the Newton, it was one of the
first hand-held computing devices – a touchscreen personal
assistant.
The MessagePad series lasted only five years and showed mediocre
sales figures at best. It must have been hard for consumers to justify
spending $700 on a computerized notepad that didn’t work as well as
a pad of paper.
McDonald’s in the 90’s was known for their cheap, quick, and kid-
friendly fare. While this is still true, McDonald’s was even more kid-
centric in 1996 than it is today. In fact, the Arch Deluxe ads featured
kids sneering at the new “grown-up” burger instead of adults
enjoying it.
Know your brand inside and out. And, let your brand guide you
when deciding which new products to pursue.
Look to the Past to Find Your Future
Doing business demands bravery.
You put your money and your livelihood on the line every time you
make a new business decision.
You can close your eyes, cross your fingers, and hope it all works
out… Or, you can do everything in your power to make the best
choices.
Handover by:
Gopi Krishnan.j
Prk21ms1099