Amity University 2012-4th Sem B.B.A Business Administration Research methodology and report preparation of - Question Paper

Numerous factors can reason new products to fail. The biggest issue weve encountered is lack of preparation: Companies are so focused on designing and manufacturing new products that they postpone the hard work of getting ready to market them until too late in the game. a few of the failures are explained below:


Coca-Cola C2

For its biggest launch since Diet Coke, Coca-Cola identified a new ,market: 20 to 40 years old men who liked the taste of coke (but not its calories and carbs) and liked the no calorie aspect of Diet Coke (but not its taste or feminine image). C2, which has half the calories and carbs and all the taste of original Coke, was introduced in 2004 with a $50 million advertising campaign.

However, the budget couldnt overcome the fact that C2s benefits werent distinctive enough. Men rejected the hybrid drink they wanted full flavor with no calories or carbs, not half the calories and carbs. And the low-carb tend turned out to be short-lived.

Why dint these problems come up before the launch? Sometimes market research is skewed by asking the wrong ques. or rendered useless by failing to look objectively at the outcomes. New products can take on a life of their own within an organisation, becoming so hyped that theres no turn back. Coca-Colas management ultimately deemed C2 a failure. Worldwide case quantity for all 3 drinks grew by only 2% in 2004 (and growth in North America was flat), suggesting that C2s few sales came mostly at the expense of Coke and Diet Coke. The company studied from its mistakes, though: A year later it launched Coke Zero, a no-calorie, full flavor product that can be obtained on the shelves- and in mens hands today.


Febreze Scent Stories

In 2004 P&G launched a scent "player" that looked like a CD player and emitted scents (contained on $5.99 discs with names like "Relaxing in the Hammock") every 30 minutes. The company hired the singer Shania Twain for its launch commercials. This confused the consumers, many of whom thought the device involved both music and scents, and the ambiguity caused Scent Stories to fail. When a product is actually revolutionary, celebrity spokesperson may do more harm than good. A strong educational campaign may be a better way to go. The products features give the message to build a brand voice, aided by research and development terms, outside experts, and consumers whove tested and love the product.


Segway

The buzz spiraled out of control when the news of a secret product code-named Ginger created by the renowned inventor Dean Kamen leaked to the press nearly 12 months before the products release. Kamen, it was said, was coming up with nothing less than an option to the technologically advanced motor scooter, they were dumbfounded. Ads showing riders look like circus performers perching on weird-looking chariots dint help or did the price tag $5000. Instead of selling 10,000 machines a week, as Kamen had predicted, The Segway sold about 24,000 in its 1st 5 years. Now it sells for far less to police forces, urban tour guides, and warehouse companies, not the general public. If there was a ever a product to disprove the axiom "If you build it, they will come," its the Segway.


Discussion ques.

a) elaborate the major flaws explained in the case above that resulted in failures of different products.

b) The case teaches a few lessons which should be kept in mind before launching a product, elaborate those?

c) In situation of the above case, suggest areas which could have been researched more to avoid failures.

Earning:   Approval pending.