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BIG FAILURE IN POSITIONING
AND PRICING
Smith and Wesson
Mountain Bikes
A study commissioned by the company found brand awareness so strong that consumers said they
would consider S&W not only for handguns, but for other products as well. As long as that something isn't
mountain bikes. S&W had been selling bicycles designed for law enforcement, security and emergency
response since 1997. So in 2002, it took another step by offering mountain bikes to consumers too.
Unfortunately, while the bikes continue to be loved by public service officials, the public never caught the
"fever."
Microsoft WebTV
 : WebTV (now MSN TV) offered consumers Internet connection via their television sets in
the mid-1990s. A Cable World article by Andrea Figler describes it this way: The service
grew quickly at first, attracting mainstream users that typically shied away from
technology. But to WebTV's dismay, they became the dreaded consumer: a customer
who failed to produce new revenue streams but insisted on creating expensive customer
service problems. So Microsoft which bought WebTV in 1997, scrapped the brand. It never
passed the one-million-subscriber mark.
Colgate Kitchen Entrees
 The Brand Failures blog explains: In what 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. Needless to say, the products did not take off and never left U.S. soil. The
idea must have been that consumers would eat their Colgate meal, then brush their teeth
with Colgate toothpaste. The trouble was that for most people the name Colgate does
not exactly get their taste buds tingling.
Harley Davidson Perfume
 Harley-Davidson fans are known as very loyal customers. However, even the beloved
motorcycle brand can go too far. T-shirts and cigarette lighters were one thing, but when
the company started to make aftershave and perfume, fans were not impressed. As the
saying goes, less is more, and Harley-Davidson had spread itself too thin. Or maybe
people just weren't too keen on the idea of smelling like a motorcycle.
Sony Betamax
 The Betamax video recorder hit stores in 1975. A year later, Sony's rival released another
video recorder -- the VHS. By early 1977, four other companies were selling VHS machines.
Meanwhile, Sony chose not to license Betamax technology. Because the two formats
were incompatible, consumers had to choose between the two. As Sony was the lone
Betamax producer, you can guess which system they chose.
McDonald's Arch Deluxe
 In an effort to class up the McDonald's brand, the company created the Arch Deluxe, a
product marketed towards adults with more sophisticated palates. Just one problem --
people don't go to McDonald's for sophistication. McDonald's customers know what they
want, and what they want is a classic and convenient burger. Needless to say, when the
Arch Deluxe debuted in 1996, consumers weren't lovin' it.
ITM BUSINESS SCHOOL
Thank you
Pratik Ray Khatri
Economics Assignment

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BIG FAILURE IN POSITIONING AND PRICING

  • 1. BIG FAILURE IN POSITIONING AND PRICING Smith and Wesson Mountain Bikes A study commissioned by the company found brand awareness so strong that consumers said they would consider S&W not only for handguns, but for other products as well. As long as that something isn't mountain bikes. S&W had been selling bicycles designed for law enforcement, security and emergency response since 1997. So in 2002, it took another step by offering mountain bikes to consumers too. Unfortunately, while the bikes continue to be loved by public service officials, the public never caught the "fever."
  • 2. Microsoft WebTV  : WebTV (now MSN TV) offered consumers Internet connection via their television sets in the mid-1990s. A Cable World article by Andrea Figler describes it this way: The service grew quickly at first, attracting mainstream users that typically shied away from technology. But to WebTV's dismay, they became the dreaded consumer: a customer who failed to produce new revenue streams but insisted on creating expensive customer service problems. So Microsoft which bought WebTV in 1997, scrapped the brand. It never passed the one-million-subscriber mark.
  • 3. Colgate Kitchen Entrees  The Brand Failures blog explains: In what 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. Needless to say, the products did not take off and never left U.S. soil. The idea must have been that consumers would eat their Colgate meal, then brush their teeth with Colgate toothpaste. The trouble was that for most people the name Colgate does not exactly get their taste buds tingling.
  • 4. Harley Davidson Perfume  Harley-Davidson fans are known as very loyal customers. However, even the beloved motorcycle brand can go too far. T-shirts and cigarette lighters were one thing, but when the company started to make aftershave and perfume, fans were not impressed. As the saying goes, less is more, and Harley-Davidson had spread itself too thin. Or maybe people just weren't too keen on the idea of smelling like a motorcycle.
  • 5. Sony Betamax  The Betamax video recorder hit stores in 1975. A year later, Sony's rival released another video recorder -- the VHS. By early 1977, four other companies were selling VHS machines. Meanwhile, Sony chose not to license Betamax technology. Because the two formats were incompatible, consumers had to choose between the two. As Sony was the lone Betamax producer, you can guess which system they chose.
  • 6. McDonald's Arch Deluxe  In an effort to class up the McDonald's brand, the company created the Arch Deluxe, a product marketed towards adults with more sophisticated palates. Just one problem -- people don't go to McDonald's for sophistication. McDonald's customers know what they want, and what they want is a classic and convenient burger. Needless to say, when the Arch Deluxe debuted in 1996, consumers weren't lovin' it.
  • 7. ITM BUSINESS SCHOOL Thank you Pratik Ray Khatri Economics Assignment