Cultural Factors

These factors can also be associated with the psychological aspects of discontinuity. Food habits are strongly entrenched in the culture and hence are extremely difficult to change. Except for Maggi (noodles have a Chinese origin), there does not seem to be any other food brand, which has succeeded in a similar manner. Microwave ovens, which have been around for almost ten years, have a dismal penetration level. Even you may be apprehensive about using the product for Indian foods.

Stigma ‘barriers can prevent consumer acceptability of new product like cigarettes for women (Ms, a cigarette brand which was launched a few years back was targeted at women professionals). The personal care products and cosmetics category for women have taken several years before emerging as a solid market. For such products, marketers need to aim at a specific ‘niche’ rather than at huge markets. It is easier for companies with a strong financial muscle to launch such products, as these will have to be sustained over a period of time before they start appealing to profitable segments.

Functional Value

New product categories will have a better chance of getting accepted if they offer a better functional value, which can upgrade existing consumers rather than create consumers. When the target segment (upper strata) employs a number of staff for domestic help at home, what could be the functional value addition from a dishwasher? Additionally, there is also need to train people hired for domestic help. Pressure cookers, gas stove, fully automatic washing machines and mixies have provided functional utility with disrupting the domestic routine much.

Trial Ability

Cielo opened up a new dimension with its promotional strategy of offering the car for a test ride for 18 months (for 200 customers). These prospective customers had the option of returning the car after the test drive period. This promotional method is suitable from product categories like durables .The modalities of offering this kind of trial ability depends on the product, type of prospective customers and the launch budget of the company. In certain product categories where a niche is targeted, this may be more effective than advertising. This method not only builds credibility of the new product but also helps in word of mouth publicity.