Predicting Troubles

It has been long time since last post because of the work pressure.Today we will discuss clues or the indications that predict that there is a hard time ahead for a product line up.

We can broadly define it as the "Symptoms of Disaster"

1> You are not able to sell your product at the pre-defined and proven price points.(Mild)

2> Some one else can source your alike product and sell more than yours.

3> Some one else can source exactly your product from cheaper country and sells more than yours

4> Your inventory is piling up month after month.

It is very important for any Product manager to keep track of it and take action as and when possible.Especially when someone else is able to sell the same product in same market and you are not,

This is very uncomfortable condition and creates lot of troubles :

1> Margins start shrinking
2> Sales touch rock bottom
3> Confidence in the market is lost
4> Inventory starts increasing at unbearable speed.
5> New products are very difficult to launch.


There can be a short term solution as shock therpy
"You get the product to a price level,where others can not match and hurt them with stuck inventory"
"You buy the material from the market and create a temporary hollow, this gives you chance to think and act"

But all these methods are not permanent solution to this type of problem.As a organization it has to come from top and a strategic decision has to be taken.

If one product bleeds it takes the shine of entire product portfolio.And if the "start product portfolio" is in mess, whole category will be hurt,causing long term damage to company which might be Unrepairable in long term.