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Fads are hard to miss. Whether it’s this summer’s craze, they take off like a rocket in popularity and then seem to fizzle out just as quickly.

While fads present challenges to businesses riding that wave, they can also spell opportunity if managers are smart about taking the cash generated by these crazes and using it to build a sustainable business.

O que a pesquisa de Wharton revela

  1. Fad products eventually experience a rather abrupt decline in sales, but revenues don’t necessarily fall to zero.
  2. Marketers need to be very careful about driving an overly rapid adoption of a new product. A lot of times, marketers want products to catch on quickly. But in certain domains, particularly those areas connected with identity (music, cars, clothes), faster adoption is linked to faster dying off. Recording artists who start lower on the charts build a following more slowly, but ultimately sell more records.
  3. Even when a fad fades there may be a smaller but sustainable business to be carved out by selectively targeting segments.
  4. Reaching beyond the band of hard-core fans, however, requires some sharp product development and marketing. Facebook is a good example of a company that avoided flash in the pan syndrome. Facebook really changed, increased its functionality and became more valuable in terms of what it was offering users. Products and services that endure find ways to renew themselves.
  5. Apple is an example of a company that knows how to avoid burnout with its products: the company introduces a new and enhanced product soon after launching it to keep techies loyal and unlikely to lose interest. They want each generation of a gadget to be a fad, generating a lot of sales and profit in the first year with a planned obsolescence through follow-on versions of its products.
  6. Marketers need to factor a speedy build and burnout into their plans for supplying an item to retailers. Products that are a bit hard to get in the beginning often have staying power.

    Texto integral em Knowledge@Whaton

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