Product and brand failures occur on an ongoing basis to varying degrees within most product-based organizations. This is the negative aspect of the development and marketing process. In most cases, this “failure rate” syndrome ends up being a numbers game. There must be some ratio of successful products to each one that ends up being a failure. When this does not happen, the organization is likely to fail, or at least experience financial difficulties that prohibit it from meeting profitability objectives. The primary goal is to learn from product and brand failures so that future product development, design, strategy and implementation will be more successful.
Failures are not necessarily the result of substandard engineering, design or marketing. Based on critic’s definitions, there are hundreds of “bad” movies that have reached “cult status” and financial success while many “good” movies have been box office bombs.
In addition to a faulty concept or product design, some of the most common reasons for product failures typically fall into one or more of these categories:
Tych przykładów chyba nie będziemy wszystkich czytać, bo one będą na slajdach, więc tylko kilka wymienić * High level executive push of an idea that does not fit the targeted market. * Overestimated market size.
* Incorrectly positioned product.
* Ineffective promotion, including packaging message, which may have used misleading or confusing marketing message about the product, its features, or its use. * Not understanding the target market segment and the branding process that would provide the most value for that segment. * Incorrectly priced—too high and too low.
* Excessive research and/or product development costs.
* Underestimating or not correctly understanding competitive activity or retaliatory response. * Poor timing of distribution.
* Misleading market research that did not accurately reflect the actual consumer’s behavior for the targeted segment. * Conducted marketing research and ignored those findings. * Key channel partners were not involved, informed, or both. * Lower than anticipated margins.
Even the greatest companies sometimes make very bad decisions including horrible advertising, incorrect estimate of the market and many other connected with those examples. In most of the cases, they spent millions of dollars either on the unsuccessful marketing action or strait after it to restore companies image. Product failures a do not always mean financial failures, although sometimes they can even lead to bankruptcy. We would like to present you our favorite examples of world famous unsuccessful product launches that we bet these companies wish never happened.
Let’s begin with a field, where companies make most mistakes. Namely Advertising. Probably all of you understand the importance of advertising. It is a favorable representation of product to make consumers, customers and general public aware of the product. It lets the potential buyers, general public and users to be aware and familiar with the brands, their goods and services. However, failure of the product might be a consequence of an unfortunate product campaign. Sometimes, the product isn’t a problem, it’s the person promoting it.
a) New Coke:
New Coke was the reformulation of Coca-Cola introduced in 1985 by The Coca-Cola Company to replace the original formula of its flagship soft drink, Coca-Cola (also called Coke). New Coke originally had no separate name of its own, but was simply known as "the new taste of Coca-Cola". To understand why this potentially disastrous decision was made, it is necessary to appreciate what was happening in the soft drinks marketplace. In particular, we must consider the growing competition between Coca-Cola and Pepsi-Cola in the years and even decades prior to the launch of New Coke. The star of commercial was Bill Cosby. Bill...