Reference no: EM133575029

Question

GPS Marketers was contracted to help a company improve the sales of its Zoom robot vacuum cleaner. When first launched, the vacuum sold very well and actually became the number one sales item for the company. However, sales have declined over the past two years, and GPS came in to change up the marketing and boost sales. During the course of their research, GPS found that the vacuum cleaner was in the decline phase of its product life cycle and suggested that the company add the ability for the vacuum to also mop floors as well, something that customers frequently said they wanted-one device, two tasks. The company developed a combination vacuum/mop product, and sales zoomed once again. Why was product innovation essential for the product to survive? Innovation would be necessary in order to justify any attempts to boost sales of a product. Product innovation will allow the company to keep raising prices on the vacuum to make a profit even when the prices of competing vacuum products inevitably go down. In the age of advancing technology, customers often demand that devices do more than one thing so they can justify the price they pay. The dual-use innovation allowed.