Why Brands Flop

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21st March, 2010

TOO MANY PRODUCTS
FAIL. HERE’S WHY – AND
HOW TO DO BETTER.

By Christopher power, Kathleen Kerwin, Ronald Grower, Keith
Alexander & Robert D. Hof
Business Week 16 August,1993

by,

S. Ayaz Nizami
Umair Uz Zubair
G-10

FL P

Protect

your Brand from becoming

failure….

HOW

By understanding two things,

1 Why a brand fails ?
2 How you can prevent this ?

A brand is a product, service, or concept that is
publicly
distinguished from other products, services, or concepts
so that it can be easily communicated and usually
marketed.

A brand is not a logo.
A brand is not an identity.
A brand is not a product.
So what exactly is a brand ?

a BRAND is
a person’s

GUT FEELING
about a
PRODUCT,
SERVICE,
or
ORGANIZATION.

IT’S NOT WHAT

YOU SAY IT IS ……

IT’S WHAT

THEY SAY IT IS……

Why

branding

choices &

is so important

time.

Most products have same quality and

features.

?

Product and brand
failures occur on an
ongoing basis
within most
organizations.
The primary goal is
to learn from
product and
brand failures so
that future product
development,
design,
strategy and
implementation will
be more
successful.

Products & Brands

When its presence in the market leads to:
• The withdrawal of the product from the market for
any reason
• The inability of a product to realize the required market share to sustain its presence in the market
• The inability of a product to achieve the anticipated life cycle as defined by the organization due to any reason
• The ultimate failure of a product to achieve profitability.

Brand/Product
Examples

Brands……that failed
1. Cadillac Allante hasty,
2. Mc Master (study)
1. Huffy Corporation…. Research

1. BIC Corporation *perfume

Brands……that failed
5. Anheuser Busch

1. Chrysler
1. Colgate Palmolive …50% to 20%
2. Campbell Soup 160 ….120
3. Revenues 49%

Ford Edsel $400M 59

Dupont’s Gloss finish, durable but was st
Micheal Cimino Over budgeted and Deer hunter
Polaroid’s Polavision

Short silent movies and dim 77

RCA’s Video Disc

Home recording and rental 70’s $ 580M

RJ Reynolds Premier
Smokeless cigarette, taste $325 M

Common reasons for product
failures


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.



Excessive research and/or product development costs.



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.

Getting Smart About New
Products
1. Ask your customers what they want
2. Set Realistic Goals (new product sales
revenue)
3. Break Down Walls (interdepartmental
harmony)
4. Create Gateways (your new product
meets the criteria of manuf. Viability,
customer acceptance, sales support and
budget planning).

Getting Smart About New
Products
5. Watch those Test (besides the test
market result go for the detail market
response on new product customers
feedback)
6. Do your Post mortems (reward managers
who learn from mistakes)

Does the left brain know
what the right brain is doing?

When both sides work together you can build a charismatic brand

The shape of an iPod or
the smell of a child’s
crayon – branding goes
deeper than logos.

by

Martin Lindstorm

Me …
See

Feel me


touch me……

• 7 out of 10 in 1980’s
• 8 out of 10 new releases
• Today 83% ads reach us visually and only
17% is left for the other 4 senses.

Smash
Shape

1915

Brand ………!

Your

&

Color Impact

Smell
75 % of all emotions we...
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