1. Case of 5 New Product Failures
Submitted By,
Geethu Mary Sajan
S2 MBA
MACFAST

2. PRODUCT
 Product is anything that is made available for sale.
 A product can be classified as tangible or intangible.

3. Tangible product: . A tangible product is
a physical object that can be perceived
by touch.
Ex: building, vehicle, gadget, or clothing
Intangible product : A product that can
only be perceived indirectly such as an
insurance policy

4. SUCCESS
Griiffin & Page (1996)
New product success measures can fall into four
categories- customer based measures, competitor
based measures, financial measures, and technical
performance measures.

5. FAILURE
Failure can be defined both in absolute and relative
terms.
Absolute Failure- occurs if a firm is unable to regain its
production and marketing costs.
Relative Failure- Occurs if a firm makes a profit on an
item, but doesn’t reach the profit objective or
adversely affects the image of the firm.

6. 5 NEW PRODUCTS FAILURES

7. CRYSTAL PEPSI
Pepsi introduced a clear and caffeine-free Crystal Pepsi.
It was introduced in the early 1990’s.
Unlike other clear carbonate drinks , this one didn’t have
a lemon/lime flavor - yet it didn’t quite have a normal cola
flavor either.

8. REASON FOR FAILURE
It was hard for consumers to think of
cola as a clear liquid and the consumers
believe that Crystal didn’t taste like cola at
all.

9. BETAMAX
Beta max also called Beta is a video cassette
magnetic tape recording format developed by
Sony.
 Like the rival videotape format VHS (Video
Home System) , Beta max had no guard band and
used azimuth recording to reduce crosstalk.

10. REASON FOR FAILURE
•Beta was technically superior to VHS in
terms of video fidelity, but Beta failed in the
field of marketing.
•VHS recorders were available from more
manufacturers for a significantly cheaper price
than Beta max recorders.
•Recording times were such odd numbers
whereas VHS was an easy 2/4/6 hrs…

11. New Coke
 New Coke was the reformulation of Coca-
Cola introduced in 1985.
 It is in an attempt to help the soda company stay
ahead of competitors during the so-called “cola wars”.
 As the Pepsi challenge had highlighted
millions of times over, coke could always be
defeated when it came down to taste. So coca-
cola started on a new formula. A year later they
had arrived at New Coke.

12. REASON FOR FAILURE
They focused only on product, not on brand.
They neglected the emotional value of coke to
Americans.
The majority of the tests had been carried out
blind, and therefore taste was the only factor under
assessment.

13. Kitchen Entrees
• This must be one of the most bizarre brand extensions
ever, Colgate decided to use its name on a range of food
products called “Colgate’s Kitchen Entrees”.
• The idea was that consumers would eat their olgate meal
and then brush their teeth with colgate toothpaste.
• This not only failed to draw consumer attention , but also
reduced its sales of toothpaste.

14. REASON FOR FAILURE
This brand extension was a total failure because it
breaks with all consumer’s association s to the brand’s
values and goals.
Another problem was that for most people the name
colgate doesn’t exactly get their taste buds tingling.

15. McDonalds - Arch Deluxe
Burger
• The Arch Deluxe was a signature hamburger
sold by McDonald’s in 1996 and marketed
specifically to adults.
• The Arch Deluxe was a quarter pound of
beef, on a split-top potato flour sesame seed bun
topped with a circular piece of peppered
bacon, leaf lettuce, tomato, American
cheese, onions, ketch-up and a secret mustard
and mayonnaise sauce.

16. REASON FOR FAILURE
The goal of the Deluxe line was to market McDonald’s
fine cuisine to the adult demographic. Unfortunately, adults
weren’t interested in paying significantly more for slightly
different burgers.

17. Main reasons for New Products Fail
•Marketers assess the marketing climate inadequately.
•The wrong group was targeted.
•Marketers assess the marketing climate inadequately.
•The wrong group was targeted.
The marketers assess the marketing climate inadequately.
The wrong group was targeted .
A weak positioning strategy was used.
A questionable pricing strategy was implemented.
Poor implementation of the marketing plan in the real
world.
•Marketers assess the marketing climate inadequately.
•The wrong group was targeted.
•Marketers assess the marketing climate inadequately.