Some examples of New Product Failures

List an example of a New product failure in the period 2005-2010 .

-What was the target market of the failed product?

-What was the strategy to provide customer value?

-Why did the product fail?

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13 responses to this post.

  1. Posted by Amardeep Hehar on February 7, 2011 at 4:21 am

    Product: Operating system by Microsoft. Windows Vista.

    Year: 2007

    Target Market/Audience: Computer Users. Everyone that uses a computer, from businesses to individuals.

    To provide customer value the strategy was to make things simpler. The operating system was supposed to help people use their PC’s with more ease and keep things easy to use without encountering problems. But the opposite of this happened, people did not like using Windows Vista. It was designed to fix many of the security flaws in prior windows operating systems but customers including IT pros gave it big thumbs down. Once Microsoft admitted failure of this operating system, it allowed Dell to start offering Windows XP on it’s new computers again. Now we have Windows 7 out in the market and it seems to be successful, a lot more successful than Vista was in part because it is simple and helps users use their PC’s simpler without encountering problems Windows Vista created. Other reasons OS Vista failed was due to issues with privacy, security, performance, and product activation. Some users complained it was difficult to install some drivers onto the PC. 64-bit versions of Windows Vista allow only signed drivers to be installed into kernel mode, this feature cannot be easily overridden by system administrators. There were also flaws in the memory protection features. Some of the individuals buying Vista also complained the speed of this operating system was slower than the previous OS they had in Windows XP.

    Reply

  2. Posted by Jagjeet Singh on February 6, 2011 at 3:25 am

    Sony’s Betamax

    Target Market: 18-35 year olds

    Sony Betamax was a complete failure because initially with the VHS, it could hold two hours worth of video and audio data whereas the Betamax could only do one hour. VHS was capable of longer run times and the market then shifted over to their side. Soon both of these options would be outdated by DVDs.

    Reply

  3. Posted by Jamie White on January 26, 2011 at 10:06 pm

    Product: Microsoft Zune

    Target Market: music lovers of all ages

    Customer values: Released in November 2006 was Microsoft’s “me too” answer to the iPod.

    Why product failed: the zune lacked the style of Apple’s interface and was clunky in comparison. the Zune was not compatible with the iTunes program. It seems to be impossible to overcome Apple’s strong disincentives.

    Reply

    • Yes, that’s true. It just ended up being a “me too” product and failed to highlight any “points of difference” as compared to the ipod.

      Reply

  4. Posted by Jennifer Brasier on January 24, 2011 at 4:51 pm

    Product: Cocaine Energy Drink.

    Pulled from shelves in 2007.

    Target Market: Young adults.

    Strategy to provide customer value: Was marketed as an alternative to street drugs. The product had three and a half times the amount of caffein as Red Bull.

    Why the product failed: The FDA declared that its producers, Redux Beverages, were “illegally marketing their drink as an alternative to street drugs.” The product was is still available online in Europe and the company does not plan to cease production any time soon.

    Reply

    • This example clearly illustrates a firm indulging in an unethical behavior in a legal framework. This is a major issue of debate nowadays.

      Reply

  5. Posted by Drew Babb on January 21, 2011 at 9:14 pm

    Product: XBOX 360 Face plates

    Discontinued: 2010

    Target Market: 18-35 year old males

    Strategy to create value: Following the trend of changeable face plates for cell phones, Microsoft thought customers would be interested in customizing their XBOX’s face plate as well.

    Why the product failed: It turned out that the target market would rather spend their expendable income on games and accessories that provide some sort of game play related utility. Additionally, the face plate fad seems to have run its course.

    http://www.google.com/images?q=xbox+360+faceplate&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&source=og&sa=N&hl=en&tab=wi&biw=1280&bih=617

    Reply

  6. Posted by Melanie Evans on January 20, 2011 at 8:02 pm

    New Product Failure Example: Google Wave (2010)

    Target Market: Tech Savvy Office workers

    Strategy to provide Customer Value: Google Wave was supposed to be a one stop shop for all of an employees electronic communications. Instant message, email, video conferencing, even group project managing could all be accessed from one site at the comfort of one’s own office at his one’s own computer. People predicted it would replace email as we know it.

    Reason Product Failed: Google Wave failed for 2 reasons. First, the site was too complicated, the layout was confusing and accessing all the different features was cumbersome. Second, people actually liked site hopping to all their favorite sites for different forms of electronic communication so there really wasn’t a need in the market for the product to begin with.

    Reply

    • Good. Normally as marketers we believe that we should not succumb to “Marketing Myopia”, but here is an example of a firm trying to broaden its
      range of products by overlooking changing consumer tastes and ignoring the fact that “one product fits all” does not necessarily work in todays world.

      Reply

  7. Good examples!

    Reply

  8. Posted by Josh Joseph on January 20, 2011 at 2:44 am

    Product Failure

    Year: 2010

    Product: Four Locos

    Target Market: Teenage and college age consumers

    Strategy to add customer value: Drink was said to be a “black out in a can”. Marketers wanted to let people know they could get drunk for less than three dollars for 1 can. They targeted underage drinkers and college students by luring them in with the cheap price for such a strong alcoholic drink.

    Reason for failure: Not socially responsible. Banned from sale due to death and sickness to customers. The caffeine in the drink altered the perception of intoxication and created a false sense of alertness. The target market did not know how to handle the product responsibly causing serious injury and death to them.

    Reply

  9. Posted by Phuong Dang on January 19, 2011 at 10:31 pm

    Example of new product failure (2010) : Kellog’s Breakfast Mates
    Target market : parents and kids
    The strategy to provide customer value : emphasizing the convenience in repairing breakfast, the package includes cereal and milk, so people can have breakfast on the go and kids can prepare breakfast themselves….
    Reason of failure : The feedbacks show that people re not used to and dont enjoy warm milk to go with cereal. The tv ad is about the kids prepare breakfast themselves white parents sleeping but the fact is the product’s package is not friendly with children.

    Reply

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