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Abstract:
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Product deletion is relatively given a low preference as to the product development
activities undertaken by the organizations. Compared to the excitement of developing
and launching new products; getting rid of out-dated, ineffective or obsolete products
take a back seat. Product deletion is just as important as the product innovation
process; because whatever are for deletion, are obstacles to profitability. They
may consume too much valuable executive time, financial resources, factory and
warehouse space and generate hidden cost, all of which could be devoted to growth
products and markets. Despite the boldest attempt to save the products they are sometimes required to be pruned or deleted. Perhaps new technology has made the product obsolete or heavier cost has started eroding profits. The product may have become the victim of changes in consumer taste or competitive pressures. Whatever be the reasons, when a product reaches the decline phase of its life-cycle and sales dip seemingly irreversible, consider deleting the product, so that the company can maintain an effective product mix. In this article let us look at the warning signals for product deletions, stages of product deletions and the product deletion strategies in the Indian scenario |