COMMERCE 2MA3 Lecture Notes - Lecture 13: Market Saturation, Biogen, Brainstorming
29 Nov 2018
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Document Summary
Completely new to the market products represent fewer than 10% of all new product introductions each year. Some estimates indicates that only 3% of new products actually succeed. Imagine if car manufacturers simply expected that people would keep their cars until they stop running. If this were the case, there would be no need to come up with new and innovative models; companies could just stick to the models that sell well. But few customers actually keep the same car that long. If some products in a portfolio are doing poorly, others may be doing well. Firms with multiple products are able to withstand external shocks, including changes in consumer preferences or intensive competitive activity: fashion cycles, improving business relationships: Capri sun noticed that its lemonade flavor wasn"t selling well, and this was due to the placement of the packages in pallets. Because lemonade was at the bottom, it was the last flavor retails would sell.
