Shorter brand product life-span is in vogue
Feels great to watch people get excited with their
newly bought mobile handsets, doesn’t it?! The shine, the oh! so wonderful colour that gives a form to the very magic of telecommunication & the sparkle in the eyes of the owner is indeed worth a watch. Well, that’s not the end of the story though... If you ever catch a glimpse of the same customer, with the very same mobile handset even a month later, you’ll see no change... well, nothing really except the sparkling eyes! And so are the strategies of players in the modern business scenario. And whoa! They challenge the very traditional concept of ‘extending’ a branded product’s life span, and pretty well at that, only proving the concept of dynamic preferences that modern day customers have. He/she doesn’t like common colours, or the very same shapes, or simply, the very same product, no matter how renowned the brand is. Think of it. Nokia walks into the market with its product ‘X’ priced at Rs.25,000. And it’s a hit! The next month, you discover a reduction in the handset price to Rs.15,000! You aren’t surprised for even you know that it’s just a part of its business exercise – to skim the market first, then kill the product and play with volumes... ultimately killing the very product!
For Complete IIPM Article, Click on IIPM Article
Feels great to watch people get excited with their
newly bought mobile handsets, doesn’t it?! The shine, the oh! so wonderful colour that gives a form to the very magic of telecommunication & the sparkle in the eyes of the owner is indeed worth a watch. Well, that’s not the end of the story though... If you ever catch a glimpse of the same customer, with the very same mobile handset even a month later, you’ll see no change... well, nothing really except the sparkling eyes! And so are the strategies of players in the modern business scenario. And whoa! They challenge the very traditional concept of ‘extending’ a branded product’s life span, and pretty well at that, only proving the concept of dynamic preferences that modern day customers have. He/she doesn’t like common colours, or the very same shapes, or simply, the very same product, no matter how renowned the brand is. Think of it. Nokia walks into the market with its product ‘X’ priced at Rs.25,000. And it’s a hit! The next month, you discover a reduction in the handset price to Rs.15,000! You aren’t surprised for even you know that it’s just a part of its business exercise – to skim the market first, then kill the product and play with volumes... ultimately killing the very product!For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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