Podcast
Questions and Answers
What is one possible consequence of using inappropriate pricing strategies?
What is one possible consequence of using inappropriate pricing strategies?
Prices may be too high or too low.
What is one of the main reasons Klozee failed in India?
What is one of the main reasons Klozee failed in India?
The Indian market was not ready for the clothing rental service.
What might happen if a business fails to position itself correctly in the market?
What might happen if a business fails to position itself correctly in the market?
It can confuse customers.
What is one thing that inappropriate marketing messages can do to a business?
What is one thing that inappropriate marketing messages can do to a business?
What type of business was Klozee?
What type of business was Klozee?
Flashcards
Poor Marketing Definition
Poor Marketing Definition
Failing to meet customer needs with new products, using inappropriate pricing, wasteful promotions, incorrect market positioning, or offensive marketing.
Klozee
Klozee
A clothing rental business in India that failed due to low demand and cultural concerns about hygiene.
Poshmark and Rent the Runway
Poshmark and Rent the Runway
Clothing rental businesses similar to Klozee, successful in the USA.
TracxnLabs
TracxnLabs
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Arman Haji
Arman Haji
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Study Notes
- Marketing problems can cause business failure.
- New products that do not meet customer needs can cause businesses to fail.
- Inappropriate pricing strategies can also cause businesses to fail.
- Businesses may invest too heavily in wasteful or inappropriate promotional campaigns.
- Businesses may fail if they do not position themselves correctly in the market.
- Inappropriate or offensive marketing messages can cause businesses to fail.
Klozee failure
- Klozee was a clothing rental operation in India, which tried to imitate similar operations in the USA.
- Klozee borrowed money from venture capitalist TracxnLabs but closed down after 6 months.
- Klozee co-founder, Arman Haji, said that the Indian market was not ready for such a service.
- Demand was low with Klozee receiving just 12-15 orders per day.
- There was not a culture in India for renting clothes.
- Many Indians had concerns over hygiene, despite assurances of high-quality cleaning.
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Description
Poor marketing strategies can lead to business failure. Examples include failing to meet customer needs, inappropriate pricing, wasteful promotions, and incorrect market positioning. The case of Klozee, a clothing rental service in India, illustrates how a mismatch with cultural norms and consumer preferences can lead to business collapse.
