Following are the reaons,
1. High price as compared to competitive product.
2. Low quality material.
3. Status conscious regarding a new arrival product.
4. Change in technology
5. Change in income level which shift the customer to upper level products.
by
Haris Rahman , Inventory Manager , Hino Saudi Arabia(Jamjoom Vehicles & Equipment)
Business Case is Flawed – This is where we would capture things like a product strategy that is not profitable, for example, your model was dependent on exponential growth – so even though you had consistently growing market share, it wasn’t enough for the product to be considered “a success” by you.
Picked the Wrong Market – Maybe this market is about to go away, like buggy whips or audio cassettes. Maybe the competitors in this market are just too good. Maybe entering this market is too divergent from your corporate strategy and dilutes focus and investment in your company’s other products. Another example would be if your team does not have the skills and resources needed to win in a particular market.
Takes Too Long to Enter Market – Whatever it is you’re doing to enter the market, it took you too long. Competitors have “out-gunned” you, your customer’s needs have changed, etc. This is to capture causes where even if everything else was good, you simply didn’t move quickly enough. At first blush, I expect organizational problems (lack of alignment, bureaucracy, insufficient resources) will all land here.
Doesn’t Solve the Right Problems – This is where most product managers focus most of their time – making sure we’re actually solving the right problems (the ones customers are willing to pay to solve). Problems of design – where we intended to solve the right problem, but the proposed solution doesn’t cut it – would not be in this branch – they would be in the “not good enough” branch.
Positioning & Sales Approach is Wrong – For the first iteration, this is my catch-all for marketing and sales. All of the problems that are “your potential customers don’t think of your product as a solution to their problems (even though it is).” Also the problems of “your potential customers decided not to purchase (when they should have)” and “your potential customers have never heard of your product.” This is definitely an area where you can contribute more than I can to the framework. How would you (product marketing managers, I’m looking at you) frame this?
Product is Not Good Enough – Execution is key here. Not solving problems completely (although that might move to the “right problems” branch) is an example. Bad design is an example – both bad user-experience and bad architecture. Poor execution also lands here – broken windows, sloppy implementations, poor quality. For this branch to work, “product” is not just theproduct that your development team builds, but also your customer relationships, distribution, services, etc.
