Of course, we all know that launching a product is not as easy as many people think, and even though you already have a big company and brand, the process of launching a new product can be tough at times, as well as commercially unsuccessful.
It’s no secret that even the biggest companies in the world, such as Amazon or Apple, can have the occasional flop, but it’s important to learn from your mistakes, because otherwise, you could go bankrupt. According to Amazon CEO Jeff Bezos, “Amazon will be experimenting at the right scale for a company of our size if we occasionally have multibillion-dollar failures.”
Having a famous company comes with a lot of responsibilities. Big brands and firms have their advantages, as well as their disadvantages. For example, people can use some products just because they trust your brand, so in some cases, the name of your brand is more powerful than the product itself, so people will buy your items. Of course, huge companies have enough resources to experience things and create new products, so if they fail at something, the loss won’t be that great. However, for a small company, a commercially unsuccessful product can be a real loss that can bankrupt the firm.
That being said, it’s important to understand that even famous companies can make mistakes from time to time, and the truth is that they don’t always create successful products. So, even if the firm is well known as an expert in a certain field, they can create products that are not commercially successful as well. Plus, there are also companies that want to push past their limits and create products that are not part of their niche, proving to be a bad idea later.
Hence, these companies show us that pushing the boundaries can be embarrassing sometimes, but also that making mistakes is normal, even if you are already famous. Read on for more information!
When you sell food in the wrong place, the product can become a failure
- Company: The Sharper Image
- Failed product: Donald Trump’s Steaks
Donald Trump is known internationally not only because he is the 45th President of the United States, but also for his business empire, including finance and real estate. Of course, Trump is one of the most successful men in the world, but that doesn’t mean he hasn’t experienced some failures with some of his products at some point in his career.
For example, in 2007 he launched a brand of steaks and other meats called Trump Steaks, which was sold exclusively through The Sharper Image and QVC. Well, it seems that Donald Trump failed to sell the steaks through The Sharper Image because it was a brand that offers consumers home electronics, air purifiers, gifts and other technology related items rather than food. So, The Sharper Image discontinued sales of the product line after only two months.
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The presentation and promotion of a product matters too
- Company: Tesla
- Failed product: an all electric, battery-powered, light duty truck called The Cybertruck
Tesla is an American electric vehicle and clean energy company based in California that was founded in 2003 by Martin Eberhard and Marc Tarpenning as Tesla Motors. However, Elon Musk has been the company’s CEO since 2008. Tesla has produced numerous effective electric vehicles, such as the Roadster, the Model S sedan, the Model X SUV, the Model 3 sedan and the Model Y crossover. According to the press, the Model 3 is the best-selling electric plug-in car in the world.
Nevertheless, even if Tesla is a famous electric car company, this does not mean that they can’t make mistakes, not to mention that the way you present a product matters a lot. For example, in 2019, they unveiled a light duty truck called Cybertruck, with production set for late 2021. (see more on the next page)
The company says that the Cybertruck is designed to have the utility of a truck, but with the performance of a sports car. Well, the product wasn’t a total failure, but its presentation was a little embarrassing.
Yet, according to James Goodwin, chief executive of an Australian car safety organization, some parts of the Cybertruck may pose some safety risks, although the company promotes the product as being safe for passengers.
Going back to that embarrassing presentation, during the unveiling of the Cybertruck event, Elon Musk started testing the durability of the car, so with a sledgehammer, he started hitting the car. The second test to measure the car’s durability, lead designer Franz von Holzhausen had to throw a metal ball twice at the impenetrable armor glass, but the car window smashed twice. Elon Musk confirmed after this event that the car should be improved.
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Pushing past your limits shouldn’t involve exceeding the niche you are activating
- Company: Apple
- Failed product: Macintosh TV
Apple is an American multinational technology company based in California well known for its famous products, such as the iPhone, iPad, Apple Watch smartwatches, AirPods wireless earbuds and Mac computers. Apple is regarded as one of the biggest technology companies in the world. As you probably already know, this company was founded by Steve Jobs and Steve Wozniak in 1976. They initially hired some computer designers and worked in Jobs’ garage, until they went public in 1980 to instant financial success.
Even though Apple is among the biggest technology companies in the world, it doesn’t mean that they have always created successful products. For example, in 1993, they created the Macintosh TV, which was a total failure, not only because it was too expensive (US$2,097 equivalent to approx. $4000), but also because of the lack of storage, as well as the lack of standard video output ports.
The Macintosh TV was supposed to be a personal computer with integrated television capabilities, but being a failed product, it was discontinued after four months.
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Healthy products can lead to bankruptcy… in some cases
- Company: The Coca Cola Company
- Failed product: Diet Coke Plus Green Tea
The Coca Cola Company is a multinational non alcoholic beverage corporation based in Georgia and founded in 1892 by Asa Griggs Candler. As the name suggests, the company produces Coca Cola, a beverage that was invented in 1886 by pharmacist John Stith Pemberton, but in 1889, the formula and brand were sold for $2,300 to Candler.
The truth is that Coca Cola has always been famous and appreciated regardless of the bottle in which it was sold, concept, flavor or other aspects, but even in the case of this company, there is a failed product that we can talk about, a concept that they will probably never try again, namely the combination of Coca Cola with a healthy drink, green tea. The product was called Diet Coke Plus Green Tea.
This product, which was meant to be healthier and make people more health conscious, was launched in Japan in 2009. Having green tea in its composition, the beverage also contained antioxidants (which are actually good for reducing your risk of inflammation in the body). People in Japan drink a lot of green tea, so the product was marketed there, not globally.
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When you combine the ‘useful’ with the ‘pleasant’, it can lead to failure
- Company: Colgate-Palmolive Company
- Failed product: Colgate Kitchen Entrees
In some cases, combining the useful with the pleasant can lead to a total failure. However, we have to admit that pushing your limits can be helpful if you want to become the best version of yourself, but if you are already a big brand, well known because you are good at something in a certain field, then why would you want to expand your brand to another niche? So, let’s talk about Colgate and its failed product.
One of the classical brand expansion failures of all time occurred when toothpaste manufacturer Colgate (of the Colgate-Palmolive Company) decided to create a line of frozen meals in 1964, called Colgate Kitchen Entrees.
Their main idea was to make people eat the Colgate frozen meals and then brush their teeth with their Colgate toothpaste, but it didn’t work, because people couldn’t associate toothpaste with food. However, it turned out that the Colgate Kitchen product was only a test, and was never officially launched.
Nevertheless, the Colgate-Palmolive company is currently the second leading personal care brand worldwide.
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Being creative can also cause some side effects
- Company: Burger King
- Failed product: Halloween Whopper
Being creative is one of the most important traits that someone could have, and if you are a brand and manage to surprise your customers with your creativity then you have won the jackpot. But what if you are a big food brand and you surprise your customers in a negative way, and your creativity leads to green bowel movements? Well, let’s find out the story of Burger King Halloween Whopper.
Burger King is an American multinational chain of hamburger-type fast food restaurants based in Florida, founded in 1953 as Insta Burger King by Keith J. Kramer and his wife’s uncle Matthew Burns. They decided to open their first restaurant after vising the McDonald brothers’ restaurant. When the company began to falter in 1959, James McLamore and David R. Edgerton bought it, renaming it the Burger King company. (see more on the next page)
However, in 1957, they released their first signature product called the “Whopper”, which was also their first major addition to the menu. Since then, they have introduced many products that failed and one of them is the Burger King Halloween Whopper launched in 2015.
Unfortunately, this product was not only commercially unsuccessful, but customers also reported unpleasant side effects, such as green bowel movements. Obviously, the following year, they discontinued the product.
Well, according to experts, people who eat food coloring can experience colored bowel movements. For example, spinach can also lead to green feces, but this is a healthy vegetable, unlike other food additives used by fast food restaurants.
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The fight against the competition can sometimes be difficult
- Company: Bayerische Motoren Werke AG, also well known as BMW
- Failed product: The M1 – a mid engine sports car
Bayerische Motoren Werke AG, also known as BMW, is a German company that produces luxury cars and motorcycles. It was founded in 1916 as Bayerische Flugzeugwerke AG, and renamed in 1922.
Even though they are famous for their luxury cars, BMW didn’t start with a reputation for supercars, especially when they created the M1 in 1978, a mid-engine sports car that proved to be a total failure.
At that time, Porsche cars were excellent at European racing, but unfortunately, the BMW M1 wasn’t able to compete with them. For example, during a 1979 competition, Porsche cars finished in first place, and the BMW M1 came in sixth. The company sold this type of car until 1981 when they discontinued the line.
According to the company, BMW M1 is the first mid engine car to be mass produced. However, in 2013, they launched the i8 plug-in hybrid sports car. They sold about 20,000 units in 2020, making the BMW i8 the best selling plug in electric sports car in the world.
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Sometimes you have to take advantage of the market before it’s too late
- Company: Amazon
- Failed product: Fire Phone
Amazon is an American company that focuses on e-commerce, and offers a wide variety of products, from books, electronics and software to furniture, food and toys. The company was founded by Jeff Bezos from his garage in Washington in 1994. Amazon is one of the most valuable brands in the world.
However, although the company is one of the most successful brands out there, it doesn’t mean they didn’t create products that turned out to be failures. (see more on the next page)
For example, the Fire Phone developed by Amazon and manufactured by Foxconn in 2014, was a complete failure not only because it was too expensive, but also because it entered the smartphone market too late (when Apple and Android already had at least 8 generations of smartphones).
Not to mention that Fire Phone had a limited number of apps, unlike Apple and Android smartphones. To be more specific, in 2014, Android had more than 1 million apps available on Google Play.
Nonetheless, the following year, the company realized that the Fire Phone was commercially unsuccessful, so they discontinued sales.
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