According to an article from The Globe and Mail: “From healthy fries to Segways: Why most products fail” around seventy percent of new products are not successful and not having a good marketing strategy might be one of the reasons.

The objective of a marketing strategy is not only to increase sales but to differentiate the brand from competitors. In order to do it, an analysis of the internal and external factors should be done. However, some companies do not do it carefully and fail. An example given in the article is the New Coke.

By 1985, Coca Cola Company already had its position but Pepsi was becoming first in the consumer’s mind. To avoid this the company took a risky decision, they reformulated their recipe and named it the New Coke.

The decision made some people began to panic, the company did not think about the strong bond that some customers had with the brand. In the article “The real history of New Coke” says that “A man in San Antonio, Texas, drove to a local bottler and bought $1,000 worth of Coca-Cola”. The consumers wanted the “old coke” so Coca Cola Company brought the Coca Cola “Classic” back to shelves.

Even if the New Coke was not successful it helped the company realize that Coca Cola had a very strong position in the consumer’s mind when their customers began to protest the CEO’s decision. The change of the 99 years old formula also proves that as stated by Al Ries and Trout it is very difficult to change the customer’s impression once it is formed and that it is better to introduce more brands rather than replace an existing one.
 

References

[Photograph]. (2013). Retrieved from http://www.retronaut.com/wp-content/uploads/2013/03/221.jpg

Conversations Staff. (2012, November 14). The Real Story of New Coke: The Coca-Cola Company. Retrieved September 28, 2014, from http://www.coca-colacompany.com/history/the-real-story-of-new-coke

Quick MBA. (n.d.). Product Positioning. Retrieved September 28, 2014, from http://www.quickmba.com/marketing/ries-trout/positioning/

THE GLOBE AND MAIL. (2014, September 18). From healthy fries to segways: Why most products fail – The Globe and Mail. Retrieved September 28, 2014, from http://www.theglobeandmail.com/report-on-business/industry-news/marketing/burger-kings-failed-healthy-fries-campaign-not-unexpected/article20680200/

There are many reasons to return a product: the product did not work, it differs from listings, missing parts, etcetera. In these cases, the company can at least improve their services to avoid returns, but these reasons are not always rational.

The article “4 Data-Driven Tips To Optimize Your Return Policy For The Holidays” gives us some examples: some customers order items to wear once and return them, others want to try them on without any intention of keeping them and others try different sizes and colors to pick their favorite. Not surprisingly, according to a Custora’s data analysis these customers have the highest likelihood to return items purchased online.

The problem of this returns is that is expensive for the companies to handle with them. The publication “Returns a 10 billion pain” says that returns “add up to a $10-billion-a-year headache for Canadian merchants, and the problem is only getting worse”. So why would a company have return policies if it costs them money? To build customer relationships. Many shoppers will be attracted to a specific company just because of their return policies and the facilities to return the product. They will be more willing to buy if they know that returning an item is quick and cheap, and they could become loyal customers.

Therefore making it easier for clients to return items and offering them liberal policies can increase a company’s sells. This is why improving this service is very important. Sears for example, will offer a new service in which Customers will be able to choose and pay for products online and pick them up at the store without getting out of the car, and make returns in the same way.

References

[Photograph]. (2013). Retrieved from http://www.shopify.com/blog/4767512-9-tips-on-creating-an-ecommerce-return-policy

Elkind, J. (2014, September 24). 4 Data-Driven Tips To Optimize Your Return Policy For The Holidays. Retrieved September 28, 2014, from http://marketingland.com/4-data-driven-tips-optimizing-return-policy-drive-holiday-growth-101011

Okerlund, K. (2014, April 10). Top 10 Reasons for a Product Return. Retrieved September 28, 2014, from http://www.chargeback.com/blog/top-10-reasons-for-a-product-return

Strauss M. (2006, November 22). Log In – ProQuest. Retrieved September 28, 2014, from http://search.proquest.com/docview/387272359/fulltext?accountid=14656

Tuttle, B. (2014, September 18). Sears Lets Shoppers Do Returns, Exchanges Outside Stores in Their Cars. Retrieved September 28, 2014, from http://time.com/money/3398578/sears-returns-customer-service/

CVS announced that it will stop selling cigarettes and other related products which will reduce their sales by 2 billion dollars. This decision was supposed to be made in order to reduce the availability of cigarettes and therefore their consumption, making a great contribution to society.

We might think that this decision is for the benefit of the community only and we might assume that the company is not socially responsible since is not acting to increase its profits (according to Freedman’s definition). However, the company’s resolution is not as philanthropic as it appears. CVS is planning to provide new products and services such as smoking cessation programs and insurance plans so they will increase their revenue.

However, this innovative idea could not benefit every stockholder (financiers, employees, customers, etc.). CVS has about 26000 pharmacists and nurses that control chronicle illnesses that are related to smoking. So, if people stop smoking, they will not need the employee’s services anymore once the treatment is finished. This will possibly cause staff cutbacks and the company sooner or later will possibly go into decline. If this happened, the manager would have failed trying to find the entrance for all the stockholders.

References

Strom, Stephanie. “CVS Vows to Quit Selling Tobbaco Products.” 
The New York Times 5 February 2014: 1. The New York Times. 10 September 2104 http://www.nytimes.com/2014/02/06/business/cvs-plans-to-end-sales-of-tobacco-products-by-october.html?_r=0.

Zimmerli, Walther Holzinger, Markus Richter, Klaus. “The Social Responsability of Business Is to Increase Its Profits.” 
Corporate Ethics and Corporate GovernanceJanuary 2007: 173-178. Proquest Ebrary. 10 September 2014 http://site.ebrary.com/lib/ubc/reader.action?docID=10187339&page=171.

Freeman, Edward. “What Is Stakeholder Theory?. ” You Tube. 01 October 2009. You Tube. 10 September 2014 http://www.youtube.com/watch?v=bIRUaLcvPe8.

[Graph]. (2013). Retrieved from http://www.hartinmedia.com/what-are-the-benefits-of-csr/

[Photograph]. (2010). Retrieved from http://moneysavingmom.com/2010/06/cvs-deals-for-the-week-of-june-6-13-2010.html