Product or brand success - Essay Example

College: Report Product or brand success Basically, product success can be defined as the capability of a specific product to meet the requirements of a consumer in the market. When defining product success, it is important to consider portfolio management. Portfolio management refers to a vibrant decision process whereby list of investments or projects related to new products are listed, revised and updated regularly in an enterprise (Product Success 5). With regard to this, the projects are analyzed chosen and prioritized. In this case, exiting investments can be accelerated, eliminated or de-prioritized. Again, the resources within the business can be allocated or re-allocated to active investments. Normally, portfolio decision approach is characterized by changing and unforeseen information, vibrant opportunities, various objectives and strategic considerations among many others. Also, a variety of decision makers and locations are considered. In determining product success, portfolio management incorporates or ignores a number of decision making approaches in the business. These include periodic evaluations of the all portfolio investments, making of decisions with regard to individual projects on a continuous basis (Product Success 7). Similarly, there is development of new product process characterized by a complete resource distribution decisions. Apart from decision making and resource distribution, new product portfolio control deals with future opportunities and events. However, there is a lot of information needed to make the best out of investments. First, there is need to understand that product portfolio control focuses on future chances and events. Therefore, most of the information needs to make investments selection decision process at its best. Secondly, the decision environment is a very vibrant one. The status and opportunities for investment in portfolio are continuously changing with the introduction of new information. Thirdly, projects in portfolio are at various stages of completion, although all the projects are competing for resources so that comparisons are made. Finally, resources to be distributed across the projects are restricted. A verdict to finance one project can mean that resources are not accessed by another and resource sharing between projects is not completely seamless. There are four major goals in portfolio management that leads to product or brand success. Actually, the goal that an individual wishes to focus on mainly is the one that will eventually determine the choice of portfolio approaches. These objectives include: Value exploitation Balance Strategic course Right number of investments With regard to value maximization, the main objective is to distribute resources with an intention of maximizing portfolio value. This means that the projects are selected so that the sum of values are maximize that are related to active projects. On the other hand, balance deals mainly with the development of balanced approach to realize the desired balance. For instance, the relevant balance in terms of permanent short term projects versus long term projects must be attained. Strategic direction as part of the main objectives ensures that apart from all the other factors, the ultimate project portfolio truly gives a reflection of business approach. This should mean that the breakdown of using funds across markets, projects among other investments is closely related to business strategy. In relation to the right number of projects, most organizations have several continuing projects for the limited resources that are available. Therefore, an overriding objective is to make sure that a balance is reached between resources needed for the main projects and resources that are available. Product or brand failure In contrary to product success, product or brand failure means that the product in the market cannot meet the customer needs in the market (Hlavacek, Maxwell, and Williams 33). Marketers understand that they are supposed to maintain a steady flow of new products in the market. If for no other motive, the marketers should not keep up with competition. With constant changes in circumstances, demands, and trends, there is not even a single person wants to be left behind. In connection to that, business people also understand that innovation is quite risky and expensive process currently (Hlavacek, Maxwell, and Williams 33). Whereas no organization prefers a scenario of encountering a possible brand or product failure, unfortunately, defective or inferior brands and products can have their way into the market due to unforeseen challenges (Schachter 10). In addition, failure can be attributed to consumer misuse or abuse of the brand. There are several reasons that lead to product failure, and range from simple product breakdowns to potentially dangerous situations. Also, there are likely to be customer complaints about alleged product sensitivity. The actual challenge when failure is realized is to understand the kind of strategies to take to address the problem (Hlavacek, Maxwell, and Williams 33). Below are some of the attributes that researchers have pointed out to be the cause of product failure: Business individuals assess marketing climate in unsatisfactory manner Targeting of the wrong group Use of weak positioning approach Selection of less than maximum configuration of benefits and attributes Implementation of questionable pricing process Creation of inadequate level of awareness through advertisement campaigns Success of coca cola brand Coca cola is one of the world’s oldest and successful brands. Across the globe, the brand would emerge to be among the most successful and famous brands of all time. However, the question that lingers in the minds of many is the reason behind the success of the brand. The organization has managed to come up with a brand that has amazed all the customers across the world. Some of the major elements of its success are attributed to the branding approaches that have continuously created awareness and concern among the consumers (Hall 7) . The main elements of its success are attributed to branding approaches. Since its inception, the company has kept a constant and upward completion levels together with the development of special approaches that have continuously raised consumer interest. For example, the organization has a lot of emphasis on brand enhancement while at the same time participating in the re-invention so as to achieve extra impressive trust. In general, some of the major factors that have contributed immensely to the success of the brand include: Marketing Innovation Customer reaction analysis Developing brand trust According to many economic experts and marketers, Coca Cola Company’s developmental approaches would be perceived as the main cause of the modern marketing. It led to the introduction of advertisement strategies which represent several loyalists of refreshment clients. Its strong and vibrant marketing strategies have significantly enhanced success (Hall 10). Even after encountering irregular and continuously alternating markets, the organization kept its activities. This has been promoted by the company’s capacity to provide new and more reliable products together with introduction of new brands. In order to understand customer notion with regard to Coca Cola products, the company has managed to assess responses from the clients in a constant manner. Coca Cola brand itself has kept a specific level of customer satisfaction which has mainly resulted in its success. Following this, the brand loyalty has been created with a strong foundation. As matter of fact, consumers became more and more attached with the organization’s product with the satisfaction of their needs (Moreno 48). In the current world, any enterprise can become a brand with reliable marketing approaches. However, a few can manage to achieve the success of industry giants such as Coca Cola, Apple, and Nike. In essence, the brand success must provide value to the users. From the production of the product relevant to the target clients to accessing platforms that create innovative and simple encounters, brand experts believe that Coca Cola applied some of the principles to maximize brand worth. Below are eight principles that Coca Cola applied to achieve brand success: Being share-worthy The success of the brand requires more than just having a social access online. Creation of the content that is forceful and adequately applicable to guarantee sharing is important. Average efforts at small advertisements and partial marketing attempts may not yield the required results. Only well planned and implemented marketing campaigns will drive the company’s brand forward and foster trust among the stakeholders (Moreno 48). In other words, the point is to take time thinking about the brand plans and simply focusing on issues that have a positive effect on the clients. For example if maintenance of a blog in a website is part of the marketing strategy, it is better to make it a destination rather than a path or channel. Also, instead of using a generic blog advertisement, it is more prudent to consider roundtable discussions that feature guests or even multiple workers to initiate a discussion with the readers. Interesting and vibrant content keeps clients in contrast with regularity. Integrate In order to fully use the success of the brand, sales and loyalty, fluid incorporation between all the marketing paths is necessary. For example, the Coca Cola’s persistent use of mobile in the Chinese marketing advertisement, bringing both TV and iPhone applications enabled the users to get bottle caps as they win their prizes (Moreno 49). Thinking horizontally Each brand, service or product has a network of pieces and supply channel, hence the need for the organization to think in an end-to-end approach. For example, thinking literally and taking a bird’s view perspective of your brand chain and finding out the link in it must be kept constant. The purpose of this is to facilitate a continuous brand experience (Hall 13). For Coca Cola, this approach goes far beyond the chains and eventually going up the supply channel to their ultimate products. More good instead of more more A natural extension of showing “share worthy” attributes always concentrates the company’s efforts, manpower, and investment. No doubt, money plays a crucial role in this case, but experts have argued that bringing together good and profit is the bottom-line in brand success and customer trust (Moreno 50). Listening more than talking Experts from the Coca Cola Company argue that listening is the main thing that differentiates just a brand from a great brand. In fact there is a suggestion by such experts that there is need to use all the relevant available channels to know the client’s talk about their needs and wants. In particular, social media mainly comments and response on Facebook and twitter, are quite accessible information that should be utilized to analyze and develop products to match the desire of the customers (Hall 13). Consistency, relevance and scale Consistency has been a significant success attribute for Coca Cola for the last several decades. For instance, the special Coke bottle has been kept for a long time, and is currently the second most famous symbol in the world. In this case, it is believed that consistency provides the shareholders a foundation of fulfilled expectation and trust. This creates a lifetime brand users and invaluable oral advertising. Similarly, the stakeholders of Coca Cola Company explained that being continuously relevant to customers is the next logical approach beyond quality. There must be a balance between undertaking adjustments or accumulations to maintain the current business operations and remaining true to the main principle. In order to remain relevant, a brand should be in a position to constantly listen and engage its fans. This is to make sure that each project has a meaning (Moreno 50). Collaborate Silos inside a given organization are the immediate challenges to advancement and success. Coca Cola hired employees with excellent teamwork skills and marketing capabilities to make sure that main departmental communications are profitable and can enhance ideas that might have been impossible in a narrow perspective of functional departments. Refusing the status quo Coca Cola’s ultimate value strategy refers to drive and true ambition of leadership and the team. To become a truly successful brand, everyone behind the scenes needs to align himself or herself in passion and strategy to spend more time trying to get each facet relating to the campaign needs. Every member of the team should be eager and ready to promote the brand to family members, relatives, friends, and online clients. As a matter of fact, the person in charge of promotions must bear in mind that great brands are forward-moving and proactive (Moreno 50). In brief, the ultimate objective is for the company’s staff to be customer-centered, passionate, and relevant. Long term-popular Coca Cola brands Some of the products from the Coca Cola Company include Coca Cola and Fanta soft drinks. Many consumers have shown special interests to these particular brands. So far so good, there are no major changes which have been implemented on the products. This shows that consumers are satisfied with the products. The future of Coca Cola The future of the brand is bright considering its past. Although there have been major challenges facing the company, there is no other drink brand that is rated at the same level with Coca Cola brand (Moreno 50). iPhone 5 iPhone 5 is the latest mobile product by Apple Inc. that has taken consumers by surprise. The product is less than three years since its release and has performed extremely well in the market. The brand has completely changed the image of the mobile phone industry. With time since its inception in 2007, each successor of iPhone product has been more successful and better than the previous model. When iPhone 4s was released into the market, many consumers were not impressed simply because the product was almost similar to iPhone 4. In an attempt to correct the failures in iPhone 4s, Apple Company decided to introduce some of the excellent features that eventually contributed to the success of iPhone 5 product in the market. Below are some of the features that led to success of iPhone 5 in the market (Apples iphone 5 a roaring success n.p). Sleeker look iPhone 5 product is preferred by most consumers because of the sleeker look. Ever since the inception of the first iPhone, the first impression that came into the minds of many is that it was very different from other smart cell phones. Apple Company created a special sleek design to make the phone more attractive to consumers (Rushton n.p). Bigger display Normally, iPhone have had 3.5 inch screen display. In the past, this was great but not now. When Samsung galaxy introduced a 4.3 inch display, iPhone became less superior and attractive. This became a benchmark for iPhone 5 to introduce a more superior display. 4G LTE Most of the iPhones have been missing 4G LTE. iPhone 5 introduced the 4G LTE features in the brand and attracted a good number of users. This became a competitive edge for the company to sell more products of iPhone 5 (Rushton n.p). OLED display This is the new impressive feature in most of the smart phones. When iPhone 5 introduced this particular feature, the products became much more attractive to the customers. This is because of the enhancements that the feature brought to the cell phone. Improved battery life iPhone 5 cell phone unlike other smart phones have longer battery life. This coupled with other impressive features have contributed immensely to the success of the product. Longer battery life enables users of the gadget to download important materials from the internet and use them for various purposes. Other popular brands in the product iPhone product category IPhone 4 and 4s Basically, iPhone 4 and 4s are the improvements of the initial iPhone product. Following the invention of smart phones, iPhones became one of the most the most household products across the world. Some of the interesting features of the product were its touch screen, high definition camera, and internet access among many others. All these features became the spring board for the subsequent series of the product that culminated in the introduction the current super series model dubbed iPhone 5 (Rushton n.p). The future of iPhone products When iPhone was introduced, the world of cell phone technology started experiencing major changes. Smart phones started becoming the domain of influential businessmen as well as arch product lovers. This was mainly attributed to price and utilitarian features. However, iPhone managed to bring together the influence of smart phones with a general and easy to understand approach. Today, iPhone offers numerous applications that were not realized overnight. It is expected that Apple Company will release iPhone 6 in 2014. There has been information that Sony has provided Apple with some image sensors with 13 megapixels being packed into a small space without affecting image quality. This is an indication that the future iPhone is able to provide HDR recording to get maximum information from videos (Rushton n.p). d. The rise and fall of McAfrika McAfrika is a product that was released in 2002 by McDonald’s. The success of the product is attributed to the aggressive marketing strategies of McDonald’s the world’s most famous brand. The success borrowed deeply from an experienced lot of workers who worked for the organization. With the brand being the world’s most famous, most customers were interested in getting another professional product from McDonald. In essence, the success of the product was based on the name of the main company, but not the product itself. Many customers were interested and curious in having the most delicious product as it had been advertised before its release. Since most of the products from McDonald were of high quality, many consumers assumed that the McAfrika would have the same quality as other products. However, this was not the case after the entry of McAfrika into the market (Osborn n.p). The failure of the product began when the company was accused of too much insensitivity. After its release in Norway, one of the worlds’s developed nations; many people were experiencing hunger in Africa. Its launch infuriated the Norwegian regime and caused a storm of bad publicity. The mixture of cheese, beef, salad, and tomatoes in a sandwich manner is said to be related to original African menu and is sold to the Norwegian clients at an expensive cost. According to aid agencies in South Africa, argued that timing of McAfrika in the market was insensitive, ill-considered and required a remedial decision from McDonald. By then about 12 million South Africans were experiencing starvation, yet McDonalds was insensitively introducing the product into the market. Faced with ever increasing criticism and protests from international organizations, the management decided to withdraw from the market McAfrika. Its withdrawal from the market marked the end of McAfrika in the market (Osborn n.p). e. HD TouchPad The product is among the most short-lived technological products in history. The discontinuation of the product came in an un-expected manner and was part of HP’s buying independence. A week later after its launch on 1st July 2011, HP told the public that the use of the product has been discontinued. Its discontinuation led to a sad ending to Palm. Initially started as Palm before being sold to U.S robotics, Palm managed to introduce the first Operational PDA. Later, the company was taken over by 3com. The executives of 3com had left to create a handspring which took over licensing responsibilities of Palm product. Shortly after merging with Palm and being renamed Palm OS, the operations of Palm declined significantly. PalmOne bought the shares of Palmsources included the trademark and went back to be named as Palm. ACCESS bought palm and was later bought back by Palm. This formed essentially the same initial organization. Eventually in towards the end of April 2010, HP purchased the whole lot (Holmquist 68). Reasons for the failure of HP TouchPad The first reason for the failure of this particular product is attributed to poor timing. In few instances, luxury goods that have been in planning phases for many years are expected to launch in a similar manner as the start of a recession. This is the case with HP TouchPad. In some cases, the product can be ahead of its time, hence lack of market. The TouchPad has a few limitations, like its inability to see through the meaning of its expensive costs (Butow 23). Another cause of failure of the product is that it did not live up to the expectation of many. There is nothing bad more than when clients feel like they have been cheated. This scenario occurs mainly when a product has excited potential clients. Again, a strong brand can become a curse or a blessing. Consumers may have had a trust on the brand, but it failed to impress eventually. In addition, the strategy to fix what is not already broken can be dangerous. Organizations that are already successful may try to improve their position but does not make any sense when the same product is characterized by several limitations. The issue of cross contamination also played a major role in the failure of HP TouchPad. Mixing more than one successful goods in one big failure became a major weakness to the company. It is apparent that mixing different successful products will eventually result in a disaster (Butow 34). Again, the decision by HP to select wrong business partners is seen as part of the factors that led to the failure of the product. In this case, the weaknesses of other organizations find their way in and compromise the outstanding performance of the other company. The bottom line is that there is no proof for success or failure of a given product. For instance, there have been cases of good products failing in the market and poor products succeeding. Considering this, it can be argued that failure has many features and is usually not predictable. Factors likely to cause product failure in the market Choosing a poorly performing business It is easy to fail when a person selects a business which is not very profitable. Even if the person involved takes part in lots of activities, it is still possible that revenues may not materialize to a point where it is necessary to retain a developing organization (Stark 30). Insufficient cash If a person does not have adequate finances to undertake business activities for the first six months, the prospects for success are very low. Therefore, it is very important to consider both individual living and business expenses when deciding the amount of money required for the business to operate. Poor product pricing It is always important to clearly determine the pricing process. It is possible to be the best or the cheapest in the market. However, trying to do both might not be possible because one of them will not be effective (Stark 40). Lack of clear definition of potential market In defining the market of the product, it is very crucial to know the potential customers. In this case, it is very important to know them more than anything else. Also, there must be a way of reaching the same customers. This means that a way of reaching such customers must be clearly defined. Another important aspect that has led to failure of products is not understanding whether the product or seasonal or not. Some products fail during the off peak period. Inadequate anticipation of cash flow When a person is just beginning a business, there is need for quick payment for the inventory. If one sells goods on credit, the time between selling and getting earnings can be several months. This approach can pull the business down if there is poor planning. Factors likely to bring product success Experienced and highly skilled top management staff- Most of the business failures are directly related to poor managerial strategies. Determination, endurance, and resourceful attitude- A good number of business owners have not succeeded due to lack of determination, endurance, and focus. Some have given up when they are about to succeed (Stark 45). The capacity to develop a buzz in relation to the product with aggressiveness and strategic approach- Investors should be in a position to make sure that rare marketing is crucial. Deal-making experience to sell the product at the highest possible cost given the nature of the market- This comes down to the customer’s perception of the product value and individual power of attracting customers. Maturity to consider workers, partners, and suppliers in a fair and respectful way- Normally, trust and respect leads in a business contributes to high productivity. The income increases in a manner that may not be determined or seen. Superior geographical setting and promotion that creates a link between the product and where it can be accessed- Research shows that it can involve seeing the product or brand several times before a customer buys it (Stark 52) . Continuous source of business during peak and off peak periods- Over the long term, the organization must develop product mix that includes winners during the peak and off peak moments. Work Cited Apples iphone 5 a roaring success. “Daily Tribune”. (2012). Retrieved from http://search.proquest.com/docview/1056524093?accountid=35812 Butow, Eric. How to Everything Hp Touch Pad. McGrawHill/ak/Feb, 2012. Print Hall, Tom. “Coca-cola sets the standard”. Conference and Incentive Travel, 15.15 (2012): 1-15. Retrieved from http://search.proquest.com/docview/1060319725?accountid=35812 Hlavacek, Jim, Maxwell, Craig, and Williams, Jimmy. “Learn from new product failures”. Research Technology Management, 52.4 (2009): 31-39. Retrieved from http://search.proquest.com/docview/213799534?accountid=35812 Holmquist, Lars E. Grounded Innovation: Strategies for Creating Digital Products. Boston: Morgan Kaufmann, 2012. Print. Moreno, Julio. “Coca-cola's other secret formula”. Beverage World, 130.1819 (2011): 48-53. Retrieved from http://search.proquest.com/docview/926577375?accountid=35812 Osborn, Andrew. New from McDonald’s: The McAfrika burger. Retrieved from Product success. “CFR : Carpet, Flooring, Retail”, 7.7. Retrieved from Rushton, Kathrine. “Component firm volex victim of iPhone 5 success”. The Daily Telegraph (2012). Retrieved from http://search.proquest.com/docview/1040934117?accountid=35812 Schachter, Harvey. "Product Failures. The Globe and Mail (2013). Stark, John. Global Product: Strategy, Product Lifecycle Management and the Billion Customer Question. London: Springer, 2007. Print. . Read More