SlideShare a Scribd company logo
New Product
Commercialization :
Common Mistakes
Why do products fail?
Product development
stages
1. Initial screening
2. Preliminary market assessment
3. Preliminary technical assessment
4. Detailed market study
5. Preliminary business analysis
6. Product development
7. Alpha tests
8. Beta tests
9. Test market
10. Trial production
11. Final business plan
12. Production ramp up
13. Market launch
Two types of innovation
 Incremental Innovation
 Breakthrough Innovation
Two types of innovation
Breakthrough Innovation
• New to world
• New to Businesses
• New customer
• New Technology
• New processes
• New Knowledge
• New Business Model
Incremental Innovation
• Fits to core competency
• Fits to core business
• Brings short term value
• Additions
• Something that already
• Exists
What are some common
Marketing mistakes?
Mistake 1: Differences in
management tasks required of
incremental versus
breakthrough projects.
 Cross-functional teams require people of appropriate
cross-functional abilities.
Mistake 2: Differences in
resource allocation to
incremental vs. breakthrough
projects
 There is a common tendency that breakthrough
projects equate with high profile activities needing
resources and top management support, and that
incremental projects are of less importance.
 Emami fair and handsome men vs. Emami fair and
ageless.
Mistake 3: “Wait and see”
and “business as usual”
attitudes.
 Using existing organizational systems often means
completely missing the boat on the real customer
and his real needs.
Mistake 4: Positioning strategies
should be driven by the market
rather than ambitions of product
champions- Delusionary
products
Coca Cola
1985, Coca cola introduced a new and sweeter version of their
beverage ( COKE ) to compete with Pepsi .
Blind test was conducted : People preferred Pepsi over Coke
Result : New Coke Failed
Re launched old coca cola recipe and renamed Coca cola classic
*mistake was : product was introduced without finding what
customer exactly wants and spending time and money on same.
Some other common
mistakes
 Lack of research and testing
 Improper focus and positioning
 Marketing without a USP
 Failing to capture repeat customers
 Lack of focus on potential customer’s needs.
Marketing Mishap: Kellogg’s –
a failure of a brand
 Product: Kellogg’s was essentially launching a western product
attempting to appeal to Indian tastes. Globalization may be an
increasing trend, but regional identities, customs and tastes are as
distinct as ever.
 Pricing: The local competition was selling at one third the price and
both were competing with the staple diet, yet Kellogg’s never
worked on correcting this very important factor.
 Place: Eating cornflakes for breakfast was totally alien culture for
Indians and never ever try and make consumers strangers to their
culture.
 Competition: Don’t underestimate local competitors, sometimes it is
big to be challenged.
 Promotion: Kellogg in its advertising campaigns hinted that the
Indian breakfast was not nutritious and was not very good for health.
This deeply hurt the sentiments of the home maker.
GAP
The Gap
 Gap changed its logo from the familiar blue
square to a more "modern" design. After spending
millions on the rebranding, the company
encountered a firestorm of customer ire. They
promptly changed the logo back--thereby
wasting even more money.
 Lesson: Sometimes it's better to leave well enough
alone.
Why did Tata Nano never take
off the way it was expected
to?
 Alternatives
 Aspirational
 Intra-city transportation
 Pricing nether land
 Failure due to perception
 Unclear targeting
 Ratan Tata: Marketing Nano as 'cheapest car' was a
mistake
SUBMITTED BY:
AMRITHA VARSHINI GADDAM
KSHAMA PUJARI
SALONI LHILA
ALEX
SNEHA JADHAV

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Marketing mistakes

  • 3. Product development stages 1. Initial screening 2. Preliminary market assessment 3. Preliminary technical assessment 4. Detailed market study 5. Preliminary business analysis 6. Product development 7. Alpha tests 8. Beta tests 9. Test market
  • 4. 10. Trial production 11. Final business plan 12. Production ramp up 13. Market launch
  • 5. Two types of innovation  Incremental Innovation  Breakthrough Innovation
  • 6. Two types of innovation Breakthrough Innovation • New to world • New to Businesses • New customer • New Technology • New processes • New Knowledge • New Business Model Incremental Innovation • Fits to core competency • Fits to core business • Brings short term value • Additions • Something that already • Exists
  • 7. What are some common Marketing mistakes?
  • 8. Mistake 1: Differences in management tasks required of incremental versus breakthrough projects.  Cross-functional teams require people of appropriate cross-functional abilities.
  • 9. Mistake 2: Differences in resource allocation to incremental vs. breakthrough projects  There is a common tendency that breakthrough projects equate with high profile activities needing resources and top management support, and that incremental projects are of less importance.  Emami fair and handsome men vs. Emami fair and ageless.
  • 10. Mistake 3: “Wait and see” and “business as usual” attitudes.  Using existing organizational systems often means completely missing the boat on the real customer and his real needs.
  • 11. Mistake 4: Positioning strategies should be driven by the market rather than ambitions of product champions- Delusionary products Coca Cola 1985, Coca cola introduced a new and sweeter version of their beverage ( COKE ) to compete with Pepsi . Blind test was conducted : People preferred Pepsi over Coke Result : New Coke Failed Re launched old coca cola recipe and renamed Coca cola classic *mistake was : product was introduced without finding what customer exactly wants and spending time and money on same.
  • 12. Some other common mistakes  Lack of research and testing  Improper focus and positioning  Marketing without a USP  Failing to capture repeat customers  Lack of focus on potential customer’s needs.
  • 13. Marketing Mishap: Kellogg’s – a failure of a brand  Product: Kellogg’s was essentially launching a western product attempting to appeal to Indian tastes. Globalization may be an increasing trend, but regional identities, customs and tastes are as distinct as ever.  Pricing: The local competition was selling at one third the price and both were competing with the staple diet, yet Kellogg’s never worked on correcting this very important factor.  Place: Eating cornflakes for breakfast was totally alien culture for Indians and never ever try and make consumers strangers to their culture.  Competition: Don’t underestimate local competitors, sometimes it is big to be challenged.  Promotion: Kellogg in its advertising campaigns hinted that the Indian breakfast was not nutritious and was not very good for health. This deeply hurt the sentiments of the home maker.
  • 14. GAP The Gap  Gap changed its logo from the familiar blue square to a more "modern" design. After spending millions on the rebranding, the company encountered a firestorm of customer ire. They promptly changed the logo back--thereby wasting even more money.  Lesson: Sometimes it's better to leave well enough alone.
  • 15. Why did Tata Nano never take off the way it was expected to?  Alternatives  Aspirational  Intra-city transportation  Pricing nether land  Failure due to perception  Unclear targeting  Ratan Tata: Marketing Nano as 'cheapest car' was a mistake
  • 16. SUBMITTED BY: AMRITHA VARSHINI GADDAM KSHAMA PUJARI SALONI LHILA ALEX SNEHA JADHAV