Another good example is SUVs. Although I'm not a fan of this type of vehicle, and far from it, Chrysler once again that saw the potential of that category of vehicles when they launched the Grand Cherokee in the '90s. The others could only follow, which made this famous truck one of the most desirable according to the buying public for several years, in front of some favourite models and brands. Rest assured, I have never been one of those.
Inversely, an example of a fuming failure was Ford's Edsel. In the '50s, Ford decided to build a new type of car, very avant-garde, that would help the company take the lead in both image and sales. That's when the management decided to go with a new scientific tool in order to make sure that their product is most successful.
In your opinion, what could be this tool? Was it a new type of construction? A high-tech engine? A more-efficient assembly? Nope, all wrong. That tool was: a poll! Yes, like market studies that were starting to appear in the world, the trend of polling was born and changed the whole capitalist system.
At the time, the public relations specialists admitted that the time when a manufacturer imposed a product that the buyer had to adapt to, was over. Gone were the times when Henry Ford could say that you get one of his cars in any colour you wanted, as long as that colour was black. Now, the customer was right!
However, taking its first steps, this emerging "science" revealed to be more empiric than scientific. As a matter of fact, polls today are still not perfect, and far from it. Just think about polls during the election period.
Then, Ford polled thousands of consumers in order to learn about their tastes, their needs, their deepest desires. And the final result was a monumental flop. After investing a billion dollars in the company, after dreaming about making Edsel a new division, Ford pulled the plug after consumers, the same ones who told them what they wanted, brutally rejected the finish product.
But... what happened?
It's simple, in fact. After that failure, not only for Ford, but also for that public relations branch, researchers studied this case in order to figure out what went wrong. After months of research, the conclusion was brutal. When we ask people what they want, what they like and what they need, they will often lie!
They will lie about their tastes so we think that they're more sophisticated than they really are; they will lie about their revenues so we think they're richer; they will lie on their answers to try and please those who run the poll. In short, it's very difficult, with direct questions, to get the real portrait of consumers.
The Edsel case is a hallmark one, and everyone remembers it today.
2-The snooping way (or ear on the rail)
Less risky investment-wise, but sometimes more risky in industrial espionage, this method consists of trying to make a successful product by closely observing what the avant-gardes are doing. The advantage of this method is that it requires less investment in research and development, and it can allow a company to look like they're high-tech without having to take the risk to really be.
However, since this pretty subtle way in which we have to try and evaluate if the trend that's starting is a durable one in a category, of if it doesn't simply limit itself to a very vague product, the risk of a flop is limited but still possible. The Subaru Baja and Toyota Paseo are concrete examples.
In addition, industrial espionage that is often used with this method includes the risk of lawsuits, scandals and discredits. So, this method is to be used with great care.
Inversely, an example of a fuming failure was Ford's Edsel. In the '50s, Ford decided to build a new type of car, very avant-garde, that would help the company take the lead in both image and sales. That's when the management decided to go with a new scientific tool in order to make sure that their product is most successful.
In your opinion, what could be this tool? Was it a new type of construction? A high-tech engine? A more-efficient assembly? Nope, all wrong. That tool was: a poll! Yes, like market studies that were starting to appear in the world, the trend of polling was born and changed the whole capitalist system.
At the time, the public relations specialists admitted that the time when a manufacturer imposed a product that the buyer had to adapt to, was over. Gone were the times when Henry Ford could say that you get one of his cars in any colour you wanted, as long as that colour was black. Now, the customer was right!
However, taking its first steps, this emerging "science" revealed to be more empiric than scientific. As a matter of fact, polls today are still not perfect, and far from it. Just think about polls during the election period.
Then, Ford polled thousands of consumers in order to learn about their tastes, their needs, their deepest desires. And the final result was a monumental flop. After investing a billion dollars in the company, after dreaming about making Edsel a new division, Ford pulled the plug after consumers, the same ones who told them what they wanted, brutally rejected the finish product.
But... what happened?
It's simple, in fact. After that failure, not only for Ford, but also for that public relations branch, researchers studied this case in order to figure out what went wrong. After months of research, the conclusion was brutal. When we ask people what they want, what they like and what they need, they will often lie!
They will lie about their tastes so we think that they're more sophisticated than they really are; they will lie about their revenues so we think they're richer; they will lie on their answers to try and please those who run the poll. In short, it's very difficult, with direct questions, to get the real portrait of consumers.
The Edsel case is a hallmark one, and everyone remembers it today.
2-The snooping way (or ear on the rail)
Less risky investment-wise, but sometimes more risky in industrial espionage, this method consists of trying to make a successful product by closely observing what the avant-gardes are doing. The advantage of this method is that it requires less investment in research and development, and it can allow a company to look like they're high-tech without having to take the risk to really be.
However, since this pretty subtle way in which we have to try and evaluate if the trend that's starting is a durable one in a category, of if it doesn't simply limit itself to a very vague product, the risk of a flop is limited but still possible. The Subaru Baja and Toyota Paseo are concrete examples.
In addition, industrial espionage that is often used with this method includes the risk of lawsuits, scandals and discredits. So, this method is to be used with great care.