Overcoming Product Failures and Analysis of Wheaties Dunk-a-Balls Cereal - Essay Example

Overcoming Product Failures Introduction New, innovative product manufacturing costs are higher because of “an initial massive inventory build-up needed for introductory deals and special offers” (Brody and Lord, 2000, p.56). When a new product is cancelled before introduction or withdrawn after launching, its failure results in considerable economic losses for the company incurred during both product development and introduction. It is proposed that the following failed product: Wheaties Dunk-a-Balls Cereal (Arbor Strategy, 2007) will be analyzed using the model of consumer decision making based on external influences. Further, a market research will be conducted on the selected product, and the results of the questionnaire interviews will be discussed. From a marketing expert’s point of view the reasons for the product’s failure will be discussed, and recommendations will be put forth to help the company turn the situation around. Discussion Analysis of Wheaties Dunk-a-Balls Cereal Wheaties Dunk-a-Balls Cereal (Arbor Strategy, 2007) was manufactured by General Mills in 1994 under the Wheaties name. The basket-ball shaped, sweetened corn and wheat puffs was promoted as a cereal that children could play with in the form of a game, before eating it. The innovative idea was conceived to capture the children’s market for establishing the new product. Even though it was advertised as available only for a limited time, the marketing was unsuccessful, causing the product to be recalled. This was mainly because mothers did not take to the idea of their children playing with their food before eating it. In order to improve the business outcomes and increase the sales of Wheaties Dunk-a-Balls Cereal, an analysis of the product was carried out using the Model of Consumer Decision Making. The model consists of the external influences in the form of inputs which influence the consumer’s decision-making process, resulting in the output in the form of consumer’s purchase or post-purchase decision. To re-launch Wheaties Dunk-a-Balls cereal, each element of the consumer decision making model will be discussed. The innovative cereal was unsuccessfully introduced in 1994, after which there is increasing use of technology by consumers, in terms of online product appraisal, shopping and purchasing. Therefore, it is essential that the company General Mills should establish its Web presence strongly, at online shopping sites and advertisements at other sites, so that the product can be sold online. Moreover, the product should be made available widely at all related oulets, for easy access, and other media such as television and radio should be harnessed for advertising it, creating awareness and regular impact on the consumer. The convenience of purchase and pricing at lower costs would help to tilt consumers’ choice towards the product. Among the sociocultural influences, the target age group is childen, who usually follow peer preferences. However, the actual purchase of the product would be undertaken by the parents, particularly mothers. Hence, during the decision making process, mothers should be convinced of the product’s superior quality in comparison with others, and its cost-effectiveness besides the vital need for it. Most mothers were not happy with the idea of their children playing with their food, as this could lead to more boisterous behavior while eating, specially if in the company of other children. Hence, General Mills should eliminate the game value of the product, and emphasize its taste and nutritive value, if necessary by adding more protein and vitamins to the product in the form of nuts and dried fruits. Creating a change in consumers’ psychological factors such as perception and attitude towards the product would motivate them to purchase the cereal. Successful implementation of the above strategies would impact the output of the model, resulting in increased consumers’ purchase of the product, Market Research with the Help of Questionnaire The Questionnaire distributed among four women with children, was as follows: Name: Address: Telephone Number: 1. Are you the main person responsible for grocery shopping in your home? Yes ___ No ___ 2. Are you generally open to trying out new innovative products if they are within your budget? Yes ___ No ___ 3. How frequently does your family have breakfast cereal? a. Everyday b. Two to three times a week. c. Around once a week or less. 4. What are the criteria for your choice of breakfast cereal? a. Nutritive value b. Low cost c. Innovative approach to attract children towards preferring the brand d. Ease of access: home delivery from neighbourhood store/ online purchasing 5. How would you rate a cereal which are essentially basket-ball shaped puffs, made of sweetened corn and wheat. Children can play basket-ball with them on the table, preliminary to eating them with milk, as regular cereal. a. Good idea, would try it out b. Not sure c. Would not purchase it, as it can lead to children messing up, prolonging their breakfast time, or rough play among the siblings. 6. Do you shop online, and how convenient do you find it? Yes ___ No ___ 7. Is home delivery of groceries including breakfast cereal an important aspect of shopping, for you? Yes ___ No ___ 8. Do you prefer to shop at the local grocer’s, and carry home the purchases/ use home delivery facility? 9. Would you prefer to go in for trial offers before trying out innovative products? Reasons for Failure of the Product The above questionnaire was distributed to four women within the age group of 25 to 32 years, with young children. The evidence from the research survey indicated that three of the four women opted for personal grocery shopping at the local grocers’ shop, rather than online shopping. They carried home their purchases, and used the home delivery option when the purchased quantity was large. Online shopping for groceries including breakfast cereal was done only by one of the respondees of the questionnaire interviews. She opted to try out innovative new products if they were not too expensive. All the women voted against letting their children play with the basket-ball shaped cereal, since they could foresee delay and inadequate intake by the children. All the four women reported giving their children cereal for breakfast on a regular basis, and they were careful to purchase according to the nutritional value of the product. Two of them were not averse to trying out a trial pack, if it was straightforward, without anything too fancy, as well as economical. Thus, from the results of the above survey, it is clear that Wheaties Dunk-a-Ball cereal marketed in 1994, was a failed product mainly because of its basket ball game playing aspect. It not only lacked a “compelling consumer benefit” (Brody and Lord, 2000, p.63), but also did not appeal to the mothers with young children. It was positioned poorly because the product’s entertainment benefits were irrelevant to the consumer. A new product should possess unique characteristics and benefits to make it stand out, as well as add variety to similar products already available at the retail outlet or online shopping Website. Thus, poor designing of innovative products, lack of usefulness, inadequate product development, poor organization of supply lines, and inadequate distribution to local outlets can lead to product failure. Recommendations to Help the Company Overcome Product Failure When a new product is ready for marketing, the commercialization process requires careful planning, besides a realistic evaluation of the firm, the channels of distribution, the supply chain, and regular assessments of the quality of the product. The product may be of a superior quality, but that feature alone is not sufficient. Frequently, due to enthusiasm in introducing the new product, advantages may be exaggerated while overlooking the obvious shortcomings of the product, the distribution channels’ demands and the product commercialization effort. It is essential to have a team of experts specialized in critical areas of product development and commercialization to completely assess the requirements for a successful product launch. This is supported by Udell and Hignite (2007), who add that objective, periodic reviews should be conducted by the multidisciplinary team in a systematic and professional manner to identify potential failure factors, and promote the improvement and commercialization of the product. Similarly, Mass and Berkson (1995) state that extensive, sustainable gains can be achieved through an integrated, tailored approach. Managers should have the far-sightedness to create world class product development. However, isolated improvement efforts based on best practice concepts such as methodical screening processes, and planning and performance measurement oriented towards achieving milestones, can have adverse effects on product development. This is because they do not take into account the multiple interrelationships that form the dynamic framework of product development. Further, following aggressive commercialization schedules may have the opposite effect of achieving improved product development, because of the consequent longer delays with lower quality. Moreover, lack of adequate staff can also lead to poor product development. Additionally, companies normally insure against property and casualty loss. In a similar manner, it is vital that a possibility of product failure should be insured by the firm. Companies that use business risk insurance find it to be a new and efficient source of capital, that helps to “preserve or even increase shareholder value” (Wetzel and Perregaux, 2002, p.94). Further, some important interventions to prevent product failure need to be undertaken. These include adequate marketing research to identify real needs in the market place, and the extent of competition existing regarding the same type of product; and secondly, anticipating and dealing successfully with technical problems in the design and production stages. Cooper (1993) reiterates the importance of these factors, and adds that timing is of vital importance. Product failures may be caused by slow movement due to technical problems, or the product moving too fast. These pitfalls should be avoided by improved planning, organization and control of the development and marketing processes. It is essential to keep abreast of customer preferences which may shift during the development cycle, or competitors may move more quickly to seize the market opportunity. Conclusion This paper has highlighted the failure of products in the market. Using the model of consumer decision making, the product Wheaties Dunk-a-Balls Cereal was analyzed, to understand the reasons for failure of the product in the market. Further, a market research was conducted by interviewing four women about the selected product, through a questionnaire survey; and the results of the interviews were discussed. Recommendations were given to help the company overcome the failure of the product. Market research, careful planning, product development with the help of multi-professional experts, an integrated, tailored approach, regular quality testing, and obtaining insurance against product failure are essential steps for optimal outcomes. References Arbor Strategy. (2007). NewProductWorks: Failures. Retrieved on 28th February, 2010 f from: http://www.arborstrategy.com/asg/newproductworks/failures.html Brody, A.L. & Lord, J.B. (2000). Developing new food products for a changing market- place. Florida: CRC Press. Cooper, R.G. (1993). Winning at new products: Accelerating the process from idea to launch. Massachusetts: Perseus Books. Mass, N.J. & Berkson, B. (1995). Going slow to go fast. The McKinsey Quarterly, 4: 18- 26. Udell, G. & Hignite, M. (2007). New product commercialization: Needs and strategies. Journal of Applied Management and Entrepreneurship, 12(2): 75-86. Wetzel, P. & De Perregaux, O. (2002). Must it always be risky business. The McKinsey Quarterly, 1: 94-102. Read More