Successful and unsuccessful product

Analysis of successful and failed product in market after a launch.
Lesson from it.
Business Guidelines

1. Successful And Unsuccessful Products “ Success is not final, failure is not fatal: it is the courage to continue that counts.” - Winston Churchill

2. Team Details Jay Padhariya   -  19K050 Shivam Padmani   -  19K051 Pallavi Kumari -  19K052 Pratham Shah  -  19K067 Shivam Mirani  -  19K071 Avni Nathani   -  19K076 Saikanth Gudavalli   -  19K079 

3. Successful Products JIO Ferrero Rocher

4. JIO ( Joint Implementation Opportunities) A fundamental reason for the success of Reliance Jio  has been their regular strategy of thinking big and delivering something that neither customers nor even competitors can ever imagine. JIO started its journey during the days of demonetization, i.e. on 27th December '2015, where they provided free 4G internet and calling services till 31st March which made millions of Indians to get their sim cards. This made a huge positive impression in people's minds.  After that, when they introduced their data and services plans, the prices were way less than its competitors, which made the users other than JIO, to transfer to JIO.

5.  This was the main huge success of JIO. This made their competitor's shares and worth to a standstill.  This also opened eyes of Indians that the services are way too less than it was, which created an aggression in the minds of people towards other service providers. In recent stats by Jio , over 78% of the users completely don't use the features like 1.5GB/day data and 2000min of  Jio to Jio talktime , which saved a lot of revenue used to provide the services without reducing prices of plans. According to a study conducted by a private organisation , Jio provides its services to only 57% of its users, because remaining 43% use the services not used by those 57% users.

6. For example, if a person uses 0.5GB/day instead of 1.5GB/day then that remaining 1GB data plus some other users left out 0.5 GB, sums to 1.5GB, which is given to a new user, similarly the calling services. In this way Jio network is saved and hence its money. Now although other network providers reduced their prices similar to that of Jio , but the trust of charging overprized plans before made people to stick to  Jio only. This effect is called Endowment Effect. Jio  is also is one of the company to provide firstest 4G network to India. 

7. By that time, there were mobile phones running of 3G networks only. For this, they made a wireless router which can be used the 3G phones through Wi-fi.  This was also widely successful product, after went through a downfall, after many mobile companies started producing 4G phones. Jio being a big business now, has a bright future and will continue to provide a cheaper and affordable plans for Indians.  Surely the business mindset of Mukesh Ambani has made Jio  a great success. By  Saikanth   Gudavalli   -  19K079

8. FERRERO ROCHER  Loyalty towards consumers and the trust they place in products through their everyday purchases are at the core of the long-lasting relationship that company enjoys with them. A fundamental element of their success is the careful selection of the highest quality raw materials. Their products are sourced with full respect for a strict ethical code concerning the origin, harvesting and manufacturing.  They give exquisite attention to themes such as nutrition and physical activity while subtly forging the best chocolates in the world.

9. Their focus is on research strategy and production investments on the creation of high quality products, all in which are carefully developed. ​ The Ferrero Group has seen such success because of its solid and deeply rooted culture of "learning by doing" a lesson which us all should learn. ​ A crucial element of sustainability in Ferrero's model is the accumulation of technical skills and knowledge of products, markets, and consumers over time that guide us from "creating value" to strengthening the "value of creation". ​

10. THE FERRERO STORY

11. CURRENT SCENARIO The  Ferrero Group  worldwide – now headed by CEO Giovanni Ferrero – includes 38 trading companies, 18 factories, approximately 40,000 employees.  Ferrero International SA's headquarters is in Luxembourg. Ferrero is a private company owned by the Ferrero family and has been described as "one of the world's most secretive firms". They have introduced several products and brands that have taken a rise in the market- Nutella, chocolate-hazelnut spread  Pocket Coffee  Mon Chéri Confetteria Raffaello  Ferrero Küsschen  Kinder Surprise  Kinder Joy Kinder Chocolate By Avni   Nathani   -  19K076 ​

12. Unsuccessful products Kingfisher Airlines Kodak

13. KINGFISHER AIRLINES Kingfisher Airlines was established in the year 2003 and owned by the United Breweries Group which is based in Bengaluru. It came into the aviation market at a time when the low cost airlines had galvanized the market and made air-travel available to every Indian.  The promoter of the airline was Mr. Vijay Mallya . He used his popularity to uplift United Breweries Groups brand and invented “King of all times” slogan for the beer. Starting off as the Chairman of UB Group, his international blitz of buying and selling Berger Paints U.K. He started spending money on fast cars, yachts and many international homes remodeled him to its infamous brand icon. 

14. By the year 2006, the Airlines achieved a five-star status and were popular among the business class travelers. ​ It also offered personalized live in-flight entertainment by collaborating with Dish TV India Limited. ​ By connecting Bengaluru with London, the airline commenced its international operations on 3rd September 2008. ​ During the year 2008, the company attained the reputation for being the only five star air travels in India It came to be known for rendering excellent flight services to its travelers and maintained its position for the next three years. 

15. Vision of the Company “The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.”

16. Causes of Downfall Decrease in safe operating standards or evidence of cutting corners.  Fall in training standards.  Significant turnover of personnel.  Delayed meeting payroll.  Insufficient aircraft maintenance.  Storage for supplies and spare parts.  Decrease in frequency of flights.  Sales or repossession of aircraft and other major  equipment items.

17. Reasons for Downfall Operational reasons  Rise in fuel prices  Bank dues Merging with Air Deccan degraded the brand status of KFA. Marketing reasons

18. Some strategic issues leading to failure The major mistake committed by Mr. Mallya is that he failed to make proper decisions. He failed to understand the requirement of consumers and made all decisions on the basis of luxury. For him airlines were considered to be a luxury travels but in India only selected classes were ready to pay extra for luxury.  Mallya being a liquor tycoon was unable to identify the differences between the two industries. Customer might pay extra for alcohol but not for transport, because transport is sort of necessity than luxury.  In 2008 Deccan airlines was rebranded as Kingfisher Red by Mr. Mallya . So Kingfisher Airlines operated both business and economy class airlines. This looks perfect but actually was not. Mr. Mallya was in different businesses at the same time.

19. For his liquor business officials were appointed except for airlines all was going by itself. The business needed the attention of Mr.  Mallya . ​ According to reports, 366 domestic flights, 20 international flights were flown by KFA. It also owned 67 aircrafts. This increases aircraft lease rental.​ In 2011, the lease rental crossed Rs.984 crores and since of this, 66 aircrafts are grounded.​ In 2011 there was a time when Kingfisher was not able to pay the salaries to employees. Salaries were due for 4 to 5 months.​ Due to this the workers started refusing to sign the mandatory “Tech Log” which states that aircraft is fit and prepared to fly. This was noticed by Directorate General of Civil Aviation (DGCA) and they cancelled the license of KFA.​ By Pallavi Kumari-19K052

20. Kodak The Eastman Kodak Company or simply Kodak is an American technology company that produces camera-related products with its historic basis on photography. It is best known for photographic film products. Kodak was founded by George Eastman and Henry A. Strong on September 4, 1888.  George Eastman

21. Evolution Of The Camera An artist using an 18th-century camera obscura (Pin-Hole camera) to trace an image The Giroux daguerreotype camera, the first to be commercially produced in 1839 Late 19th century studio camera used collodion plates Kodak Brownie Box Camera which for the first time used  photographic film unveiled  in 1900

22. The Decline of Kodak Kodak began to struggle financially in the late 1990s, as a result of the decline in sales of photographic film.  its slowness in transitioning to digital photography, despite developing the first self-contained digital camera. In January 2012, Kodak filed for Chapter 11 bankruptcy protection in the United States District Court for the Southern District of New York. Shortly thereafter Kodak announced that it would stop making digital cameras, pocket video cameras and digital picture frames and focus on the corporate digital imaging market. But the damage had been done.

23. Root Causes of the Decline of Kodak 1. Photography going Digital - When the digital came, the film sales went out the window. Kodak management’s inability to see digital photography as a disruptive technology, would continue for decades.

24. 2.Photography Going from Digital to Social-   As it turned out, digital cameras were not the biggest fish in the pond. Smartphones took the world by storm and digital cameras producers saw their sales quickly spiralling down. People went from printing pictures to storing them on digital devices or sharing them online on social media platforms.

25. Companies’ failure is usually an inability to truly embrace the new business models the disruptive change opens up.  Kodak created a digital camera, invested in the technology, and even understood that photos would be shared online. Where they failed was in realizing that online photo sharing was the new business, not just a way to expand the printing business.  Before Mark Zuckerberg wrote a line of Facebook’s code, Kodak made a prescient purchase, acquiring a photo sharing site called Ofoto in 2001.  Unfortunately, Kodak used Ofoto to try to get more people to print digital images. It sold the site to Shutterfly as part of its bankruptcy plan for less than $25 million in April 2012. That same month Facebook plunked down $1 billion to acquire Instagram, the 13-employee company Systrom had co-founded 18 months earlier. 3.Failed to Reinvent itself & Resistance to Change

26. 4. Complacency & Organizational Inertia Kodak’s lack of strategic creativity led it to misinterpret the very line of work and type of industry that it was operating in which was later devastated with a fundamental shift towards the digital age.  Kodak avoided risky decisions, and instead developed procedures and policies to maintain the quo of its legendary but old photographic film division. Kodak was failing to keep up even before the digital revolution when Fuji started doing a better job with the old technology, the roll-film business. With the complacency so rock-solid, and no one at the top even devoting their priorities toward turning that problem into a huge urgency around a huge opportunity, of course they went nowhere.

27. Lessons to Learn from Kodak’s Failure Transform the way you view strategy, business models, innovation management and think and act holistically. Be prepared to shift from protecting your company’s competitive advantages to making change radical and revolutionary. To avoid complacency ensure that your innovators have a voice with enough volume to be heard (and listened to) at the top. Adopt agility as an organisational strategy for development and having an enterprise mindset that is open to change. By Shivam Mirani- 19K071

28. Thank You