Whether a product sells because it is actually great, or sells because of the "bandwagon" effect, in order to maintain momentum, several factors must be present. First, the product must meet some sort of need, either a "real" need or a perceived "need" (We could successfully argue that in our...
Whether a product sells because it is actually great, or sells because of the "bandwagon" effect, in order to maintain momentum, several factors must be present. First, the product must meet some sort of need, either a "real" need or a perceived "need" (We could successfully argue that in our society, we need a cell phone, but it is a more difficult argument to say that we need the latest version of an iPhone, and are willing to stand in lines for hours in order to acquire one.)
Smarter consumers will do research before making a major purchase; periodicals like Consumer Reports can help the buyer make an informed decision. Here are two products that meet your first point, "Great products make great sales."
Great products, great sales:
Garmin GPS is a market-leader in global positioning systems, or GPS. The need is one virtually everyone has: to find your way around. Paper maps used to be your only option. But they are cumbersome and confusing to many people. GPS took the guess work and the clutter out of map reading. Garmin has become the leader in this field, providing a reliable and affordable product. In 2012, "5% of the company's sales in 2012 -- $221 million in operating profit on $1.5 billion in revenue."
Folger's Coffee. When it comes to coffee, people like reliability. Since 1850, Folger's coffee has consistently delivered a good cup o' joe. Studies show that most coffee drinkers like a mild, low acidic coffee, which is what Folger's provides. "Folgers is owned by the J.M. Smucker Company, which reported sales of $5.5 billion in 2012. Of those sales, $2.3 billion came from coffee."
Great Sales, Great Products.
Here are two leaders who started out with great sales, because they hit the market at the "right time" with a good product. This initial successful offering helped these companies grow their businesses.
iPhone. There is no question that Apple's iPhone has benefited greatly from the "gotta have it" mania. Just a few years ago, Blackberry was the industry leader in cellular phones. Everyone, it seemed, had a Blackberry. But iPhone was the first "truly portable computer." Its gaming apps, in particular, exploded the market, and led tot the type of word-of-mouth that skyrockets sales. This infusion of cash has resulted in faster, better, more reliable iPhones. The "first generation" was introduced in 2007. Just seven years later, that phone is "obsolete." There have been five more generations of iPhones since; the sixth is due in 2014, and consumers do not appear to have tired of upgrading to the latest, greatest, product from Apple.
Amazon.com. Can you imagine the behemoth Amazon.com being just a little online bookseller? That's what it was in 1995 until founder Jeff Bezos made his dream of becoming the largest retailer of consumer goods a reality. First, the company added DVDs and music, and now there is almost nothing, from apparel, to appliances, to electronics to cloud computing. In just twelve years, Amazon.com has even encroached on the sales of giants like Wal-mart. In 2013, its stocks rose to record highs and "its shares are up around 150 percent since mid-2010." Amazon.com started out with a good, reliable service, and its quality grew from there.