Causes of New Product Failure


Many new products with satisfactory potential have failed to make the grade. Many of the reasons for new product failure relate to execution and control problems. The following is a brief list of some important causes of new product failures after they have been carefully screened, developed and marketed.

  1. No competitive point of differene, unexpected reactions from competitors, or both.
  2. Poor positioning.
  3. Poor quality of product.
  4. Nondelivery of promised benefits of product.
  5. Too little marketing support.
  6. Poor perceived prices/quality (value) relationship.
  7. Faulty estimates of market potential and other marketing research mistakes.
  8. Faulty estimates of production and marketing costs.
  9. Improper channels of distribution selected.
  10. Rapid change in the market (economy) after the product was introduced.

 Some of these problems are beyond the control of management; but it is clear that successful new product planning requires large amounts of reliable information in diverse areas. Each department assigned functional responsibility for product development automatically becomes an input to the information system needed by the new product decision maker. For example, when a firm is developing a new product, it is wise for both engineers and marketers to consider both the kind of market to be entered (e.g., consumer, organizational, international) and specific target segments. These decisions will be of paramount influence on the design and cost of the finished good, which will, of course, directly influence, price, sales, and profits.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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Design Jobs


Job design looks for the best way of doing any particular task. It describes the details of the work to be done, the skills and equipment needed, supervision, interactions with other questions, environment and so on. From the organization’s point of view, the aim of the job design is to make employees productive and efficient. But employees have their own social and psychological needs, and they want to interact with other people, be recognized, appreciated and properly rewarded. So the real aim of job design is to meet the performance goals of the organization, while making the job safe, satisfying and rewarding for the individual. There are elements of job design:

a)      The physical environment is the place where the job is done, its layout, the tools used, equipment available, lighting, temperature, noise, safety features and so on.

b)      The social environment,  which affects the psychological well-being of the people working. A good social environment gives a higher quality of working life, and leads to higher motivation and better performance.

c)      Work methods, which describe the details of how a job is done. Work methods usually break the job into a series of small tasks and analyses each of these. In particular, they ask questions like ‘Why is this task done?’ ‘Could it be done automatically?’ ‘How could the layout of the workplace be improved?’ ‘Would different tools help?’

 When a company (L&M Industries) involved in window frame making, looked at their process, they counted 162 separate steps. Of these, 39 involved walking to fetch materials and tools, and another 18 involved waiting for something to happen. By redesigning the jobs, L&M reduced the amount of movement by 85 percent and cut the time needed to make each frame by 58 percent.

 Such improvements need someone to recognize that changes are needed and then do the planning. This can take time. You have to design jobs properly, so that they satisfy the needs of both the organization and the employee.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Pulling in High Quality


Organizations pay a lot of attention to product quality. Thousands of companies advertise that they are “ISO 9000 registered,” and man have objectives of making ‘products of the highest quality.’ They emphasize quality for four reasons:

a.    Processes can now make products with guaranteed high quality;

b.    High quality gives a competitive advantage;

c.    Consumers have got used to high quality products, and won’t accept anything less;

d.    High quality reduces costs.

 

If you make poor quality products, your customers will simply move to a competitor. Although high quality won’t guarantee the success of your products, low quality will certainly guarantee their failure. So survival is one of the benefits of high quality, and others include:

a.    Competitive advantage coming from an enhanced reputation;

b.    Larger market share with less effort in marketing;

c.    Reduced liability for defects;

d.    Less waste and higher productivity;

e.    Lower costs and improved profitability;

f.     Enhanced motivation and morale of employees;

g.    Removal of hassle and irritants for managers.

 

Most of these are fairly obvious – if you increase the quality of your products, you expect people to switch from competitors. But the idea that higher quality can reduce costs is particularly interesting. This goes against the traditional view that higher quality automatically means higher cost. Gucci are well known for this combination, and say, ‘Quality is remembered long after the price is forgotten’

 

When you take a broader look at the costs, you can see that some of them really go down with higher quality. If you buy a washing machine with a faulty part, you complain and the manufacturer repairs the machine under its guarantee. The manufacturer could have saved money by finding that fault before the machine left the factory, and it could have saved even more by making a machine that did not have a fault in the first place.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Use Project Management


Management is usually viewed as continuous process that lasts without a break for the whole of your organization’s life. But some jobs are clearly projects; they do a specific job, have a distinct beginning and end and a fixed duration. When the job is done, the project is finished.

 

People have developed special approaches to project management. A project manager often has overall control and can have very wide-ranging responsibilities. The project team does not follow the usual ‘line of authority,’ but is seconded from line functions. This gives a matrix structure where people have divided responsibilities. The control of projects is made easier by dividing them into phases running from conceptual design through to termination. There are special methods for planning projects.

 

Managers have increasingly realized that they can use these methods in their everyday work. You probably find that a lot of your work is not continuous, but consists of a series of projects. Consultants work for different clients, software houses work on different packages, marketing departments run a series of promotions.

 

Project management can bring a lot of advantages to your work. It gives the expected times for some key activities, and the computer automatically prints schedules for activities and all resources. More generally, project teams have the benefits of:

  • Using management methods that recognize the nature of projects;
  • Solving problems quickly, as the right people are assembled to concentrate on a solution.
  • Spreading expertise around the organization, as team members move on to new projects and share their experiences;
  • Using resources efficiently, as they are released to other projects when not needed;
  • Tightly controlling operations, with constant feedback on progress.

 This does not mean, of course, that project management is better than continuous management. But project management does give an additional set of management tools that you might find useful.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight