It was estimated nearly 5 decades ago, that 15 out of 16 products or brands fail. That is, only 1 brand out of 16 is a success. In terms of percentage it comes to 6.25%. In a globalized context and the highly competitive market that exists today, I estimate the success rate to be around 1 in 20 to 25. That is, it is around 4 to 5 % or even lower. Please note it is an estimate and we have not done in any research on it. Often, a failure of the product or brand in the marketplace is attributed to advertising or selling or distribution or sometimes the product itself. Experience shows that when a brand or product failure takes place, companies look for a scapegoat. This is mostly the ad agency or the management consultant or the marketing consultant or in some cases, the marketing or brand manager. However, it must be noted that if a brand or product failure takes place, it is not just marketing or production failure alone, it is also a team failure, especially the TMT.
It is a paradox that as the competition keeps on increasing, top management skills seem to be getting scarcer. Marketing Development is the job of TMT and it needs clarity and vision on its part. The main problem is that many established and good companies prefer to 'grow their own timber' for top management positions. This is not a bad policy. However, there is flop side to it. The human nature is such that longer a person spends time in the existing company, his or her horizons become narrower, loses vision, audacity, flexibility that the dynamics of business demands. The entire TMT must be marketing development oriented, hire suitable advisers or consultants to advise and caution them at the right time. Finally, they must listen to them and take action. Otherwise, the long term survival of a company is at peril.
New products or brands do not fail on their own. It is the marketing judgment that fails most often in such cases. It is rather strange that while everybody knows the above facts, still some of the aspects mentioned above are neglected or ignored for the reasons best known to them. However, of late I have come to one more conclusion on the above. It is the lack of commitment, complacency and arrogance at the top management level that invariably leads to a debacle. The lack of commitment exists because of petty personal differences and ego problems between human beings. This is more common and prevalent in family managed organizations. In the process, the entire company and the brand suffers. In some cases, it is curtains for the company leading to loss of jobs for hundreds or thousands of people. No wonder that team work and attitudes play very important roles in the success of brands and hence enterprises. If a brand or a product fails, it is the failure of the entire top management team and the CEO has to take the responsibility for the failure. There is no point in looking for scapegoats. If sacking is necessary, then the entire team must pack up and go. Since this is not an advisable proposition, some soul searching would be necessary, so that it does not get repeated.
Copyright. November 13, 2007. www.madgopes.com . All rights reserved.
To learn more about this author, visit Madhavan T Gopalachary's Website.
Like this article? Share it with your friends
 |
Related Articles |
|
 Open the umbrella brand strategy
|
| |
When attempting to unite a series of brands within a single message, an “umbrella brand” strategy is one way to get your consumer, audience, or constituency to make you their first choice.
|
|
Mines a BMW thats me
|
| |
When it comes to cars and other products and services most of us have a pretty good idea of what particular brands stand for, and an accurate mental map of where they stand in relation to other brands. We don't hav...
|
|
Why brands fail ?
|
| |
It must be noted that if a brand or product failure takes place, it is not just marketing or production failure alone, it is also a team failure, especially the TMT. It is the failure of its marketing judgment.
|
|
Are You a "Brand Behind a Brand?"
|
| |
Normally, when people hear the term “brand” they immediately think of popular consumer goods and services . . . Coke, Tide, Sony, Apple, Nike, Verizon, and the like. Here at Delia Associates, our definition of brand...
|
|
Retailer Brands - Lessons from UK and what it takes
|
| |
Retailers are assuming that consumers will embrace retailer-owned brands. They may be in for a big surprise. Hopefully, being sensible, they will have researched this move. Not to do so would be naive. It is suggest...
|
|
|
Madhavan T Gopalachary
(Visit Madhavan's Website)
Madhavan Gopalachary, nick name "madgopes"
(g pronounced as in go) given by IIT
classmates, is a Mechanical Engineer and
an alumnus of Indian Institute of
Technology, Madras having passed out
specializing in IC Engines &
Thermodynamics.
He has nearly 35 years of experience in
the Corporate World. He started off as a
trainee and handled sales, marketing,
manufacturing, product management, profit
center management, strategic planning and
corporate development including R & D in
various organizations and at various
levels before becoming a CEO. His last two
professional assignments were at CEO level
before embarking to start management
consultancy business on January 01, 1998.
He has worked for British, Swedish MNCs as
well as very large Indian business houses.
He has spent a large portion of his time
from June 1998 till date in East African
Countries practicing as an independent
Management Consultant.
More details can be obtained at the
following web sites:
mmg.name/
mtg.html
mmgconsu
lting.biz/
|
|
 |
|
Madhavan T Gopalachary's
Complete
List Of
Management
Articles
|
|
If you enjoyed this article, get Madhavan T Gopalachary's Complete List of Management Articles For FREE!
|
|
|
|
