Lessons from New Market Failures
Somewhere around 1974, a senior engineer named as M Nath who was working in a multination company in India, worked hard to develop a machine which was meant to wash clothes and drying them. This machine was supposed to perform both functions itself. At that time if we look at the western countries, this machine was very successful and was very popular. This made him more confident about the success of the product because it was the emerging trend in India. The company had a lot of resources and he was considered to be sitting on pot of gold. The product was named as Laundromat. He used his own equipment to develop this machinery and many marketing campaigns were conducted in many schools, colleges and hospitals etc. The expectations were high due to the insight of the same product demand in western countries. But unfortunately the results came quite opposite, the concept of self-services machinery failed resulting in no sale of the product in the market.
What where the causes of these failures?
The causes of failure are as following,
- The shortage of space in the residential houses in India, people did not even bothered to buy such machinery
- Another reason was the cost of this machinery was quite high, that made washing of clothes quite expensive
- The need to wash extensive clothes in hospitals and hotels was required, as the machinery was designed to wash for short period of time.
Were the failures preventable? If so, how?
Various factors blocked the success of the product,
- Due to high cost of installation
- No encouragement from the government
- Large size of the machine, more space was required than the existing alternatives
- The distance between the users and makers made it difficult for them to reach it.
These measures were so far preventable, if they had planned all these things in the beginning, they should have reduced the size of the machinery and made it more efficient and capable of washing more clothes at the same time (Yang, 2017).
- Special Brand Roles
There is a list of roles that a company need to follow in order to compete with the market and to bring its product in the reach of each and every individual and make its accessible at every single location,
- Appeal a specific market portion not presently being covered by the other brands of the company
- To protect the leading brands
- To serve as a company profit maker
- To attract new customer towards franchise
- To provide prestige to the entire brand portfolio
- To rise the vender requirement in the store
- To appeal consumers who are looking to change the product brand
- To increase competition within the organization
- To crop economies of advertising and sales
There are numerous brands that are fulfilling these roles one or the other way, but the brand who is very consistent in making progress among these roles is P&G. Procter and Gamble’s relocated its top level LUVS Diaper brand to assist as a value fighter among the other brands in the market and stored brands to protect Pampers premium brand. Similarly we have many examples of brands who try to fulfill these roles in order to compete the market.
- Ethical Issues in Global Market Entry
What are some ethical issues that an organization may face when entering the global market?
There are number of ethical issues that an organization suffers while entering the global market. As the business tends to expand globally, they are not only required to understand an organization’s mission, vision or goals (Ali, Al-Aali, 2015). They must also keep an eye on the ethical and moral issue that they can face while entering the global market. When an organization takes an initiative of expanding in the global market then they must also take preventive measure to control the ethical and moral issue that they might face during expansion. Only by keeping these things in mind they can be successful in expanding in international market.
Some of the common issue that the business might face include working standards, working conditions, outsourcing, workforce diversity, trust, integrity, opportunity, human right, religion, political barriers, overall environment and federal laws and legislations.
Is it ethical to market potentially harmful products to minors? Why or why not?
It is highly unethical to market a potentially harmful product unless you let the audience know the negative side of the product. It is only unethical when you are hiding the truth from the customers. If you want to sell a product which can have a harmful effects then you are obligated to let people know about the negative side of the product.
Do organizations have different brand messages for different ethnic/cultural groups? Why or not?
Organizations do have different marketing strategies according to the target culture and audience. Customers belong to different cultures having different norms and values. To market the product on a large scale in order to capture maximum audience, different marketing strategies are used. Brands portray different messages according to the target audience.
- Holistic Marketing
In the consumer marketing, every brands market its product in such a way that it mentions the point of difference from other consumer products. They keep their focus on the points that provide their product an edge on the other competitive products. By doing this they capture their audience to get the product success. Hence it is very significant for the brands to strategically plan their marketing strategy. Sometime the lack of argument dialogue can cause the loss in customers. Marketing teams need to design their marketing strategies in such a way that they could get maximum number of customers (Master, 2018).
It is significant to learn the roles and responsibilities of marketing and then implementing those strategies on the specific target market. Creating a marketing strategy also includes the integration of various components of marketing.
The holistic marketing concept is actually based upon the design and development of the marketing plans and programs and then implementing those plans and activities on the target market. These activities helps to recognize their width and the dependencies among the marketing plans. Holistic marketing refers to as everything matters in marketing. There are four components of holistic marketing and these are internal, integrated, social and relationship marketing.
- Corporate Code of Conduct
Code of conduct is a company’s statement which is written for the employees of the company, which generally protects the rights of the employees and inform employees about the company’s expectations.
Procter and Gamble’s, a worldwide multinational consumer goods company has one of the best corporate code of conduct among other multinational companies. The code of conduct highlights the company’s norms and values, describes the company’s approach to corporate business conduct. The code of conduct states the company’s principles, values and its purpose.
The code of conduct tends to cover various fields regarding company’s operations and legal and ethical issues, favorable conduct in the workplace as well as commercial rights of the employees and consumers (Kolk, 2005).
The code of conduct of Procter and Gamble’s states that “P&G has built their organization in such a way that the men and women they possess in the company will always be their significant asset.”
Was it written to address international/global standards, or just domestic market standards?
It is written in the code of conduct to address the international standards of the company as well as the domestic market.
Ali, A. J., & Al-Aali, A. (2015). Marketing and ethics: What Islamic ethics have contributed and the challenges ahead. Journal of Business Ethics, 129(4), 833-845.
Kolk, A. (2005). Corporate Social Responsibility in the Coffee Sector:: The Dynamics of MNC Responses and Code Development. European Management Journal, 23(2), 228-236.
Master, A. (2018). The significance of holistic marketing on motivations, expectations and experiences of travellers: A case study on Queenstown’s first-time tourists (Doctoral dissertation, Auckland University of Technology).
Yang, B. (2017). Stock Market Crash, New Market Failure Theory and Extremely Great Economic and Financial Crises. World Review of Political Economy, 8(1), 4-34.