Why The Previos Products Failed

There are numerous reasons new products fail when introduced into a product market. In fact one study estimated that as many as 80% of new consumer packaged product fail, 90% of all new products fail within 2 years, and only about 40% of new consumer products are around 5 years after introduction. The reasons for product failure could consist of overestimating the market size, product design problems, costs of product developement, incorrect pricing or positioning, poor marketing research, timing, competitors, or many other various reasons. The point I am trying to make is product fail and there isn't a lot you can do about it. There is however ways to making the chance of failure less and that is doing your homework. Test your product, introduce it at a fair price and don't introduce a high priced item when the economy is low. Products fail everyday so make sure you decided when where and how you are going to introduce your new product.

Ben-Gay Aspirin

Ben-Gay a manufacturer of rubbing ointments used to soothe aiching muscles, introduced their own line of aspirin in the mid 1990s. A company dealing in pain relief already believed this to be a great way to expand their product line to a new segment of users. However, this product did not accomplish this goal in any way shape or form and was on the market for less that two years. The reason this product failed was because consumers had always made a connection between ben-gay and a menthol smell that can be sensed from a mile away. Consumers had the idea that when they would consume the new aspirin it would taste the same as the rubbing ointment smelled and consumers could not bring themselves to purchase it.

Buttermilk Shampoo

Buttermilk company introduced a new product called buttermilk shampoo. Now buttermilk is well know for producing butter spreads for food, not bathroom products. Personally when I first heard about this the first thing that came to my mind was washing my hair with a yellow oily substance, and aparently that was the idea most consumers created. Buttermilk shampoo lasted less than three months in production and on store shelves. Consumers who have trusted a product for the qualities it obtains do no want to see that product name on a totally different type of product, it hinders the reliability the consumer holds in that product.

McDonalds' Arch Deluxe Sandwich

In 1996 McDonalds introduced the Arch Deluxe Sandwich. A sandwich that contained 560 calories, 32 grams of fat, 11 grams of saturated fat, 960 milligrams of sodium, and that was without the optional bacon. The sandwich cost McDonalds 100 million dollars in ad campains, and a 300 million dollar set back in a time when consumers were starting to eat healthy. McDonalds made the fatal error of introducing a product with more calories than ever before in a time when consumers were becoming concerned with the health and well being of the American public.

Crystal Pepsi

As you know the pepsi brand is extremely well known accross the world. In 1992 and 1993 the pepsi company introduced crystal pepsi. It was the clear alternative to normal colas. It was their intention that consumers would make a connection between clearness and purity, this did not occur. As consumers tried the new product from a company they had trusted for so long, mixed reviews began to arise. Many people said they did not like the taste, and others found it to be too similar to regular pepsi. The idea of it being clear really had no impact on consumers, in fact many were asking the question of why would I pay more for a product that tastes the same just because it is clear. Pepsi made a mistake in trying to make consumers perceive a quality that the product did not have. There were no actual benefits to the pepsi being clear, and the taste was nearly the same. This was not a good marketing decision for pepsi.

The Ford Edsel

In 1957, the Ford motor company planned on introducing a new car into their vehicle lineup, it was to be called the Edsel. Ford put 400 million dollars into the development of the Edsel, more than it had ever put into any of their other models at this point. The concept of the Edsel was great, more horsepower, very spacious and increased luxury. The price on the other hand was a lot higher than that of the competition. Ford had put so much money into researching what consumers wanted in a car, but failed to gain any information about what consumers would be willing to pay for these attributes. Ford had set a sales goal of 100,000-200,000 cars for the 1958 model. The truth of the matter is, Ford only sold 100,847 Edsels in the three years the car was in production. Ford lost huge amounts of money, but they gained an important lesson.

Examples of Product Marketing Gone Bad

In the next few posts I will discuss some failed products introduced into the market in the past. Products including the Ford Edsel, Crystal Pepsi, McDonald's Arch Deluxe Sandwich, Buttermilk Shampoo and Ben-Gay Aspirin.

Smart Cars Being Introduced in the United States

Smart cars have been introduced to 12 countries with great success and now it is time for the United States to see what the buzz is about. The Smart car is a extreme compact vehicle with outstanding performance when it comes to miles per gallon. Though you probably have not seen any running around Fort Wayne Indiana, they are among us now. The Smart car marketing approach is targeting larger metropolitan cities like Chicago, New York and Los Angeles just to name a few. The reason for this has to do with the driving conditions in these busy cities and the added advantages to the drivers of those busy streets. With gas prices on the rise and people's continued efforts to help the environment, I would not be surprised to see a Smart car near you in the future.

Effective Marketing in Switzerland

I am currently working on a collaborative project dealing with the expansion of garbage disposers to Switzerland. My group members and I are putting a plan together to introduce the Kitchen Aid line of garbage disposers to Switzerland. Introducing any new products in today's economy is not the easiest task to accomplish, but the benefits garbage disposers have for Switzerland is undeniable. Today in Switzerland the amount of organic waste being thrown into landfills is extremely large. With the introduction of Kitchen Aid disposers at a fair price, it is our hope to reduce the amount of organic waste filling these landfills. The greatest chance for this idea to become a success comes from effective marketing. We must convince the Swiss of the true benefits this product has and the chance for Switzerland to add years to the life of the country.

What Can Be Done to Keep Gas Prices Down?

As I spoke of previously car dealers are having a difficult time selling vehicles with the high gas prices. Is there anything that could help to decrease the price of gas? Personally, I feel as though there are many things that can be done to lower gas prices. I truly believe the first step needs to come from one of two places: the President of the United States and Governmental Agencies or the Oil Companies. The government could implement price caps or increase taxes on oil corporations, but I guess the financial backing of oil companies is more important than the backing of the American people. I guess I was wrong to think that the American people were the most important issue concerning the government. However, the government is not the only source with the power to make an impact. The Oil Companies could do their part to prevent prices from skyrocketing, but they are too concerned with their profit margins. It seems as though the only people who are not concerned with high gas prices are those who are making a profit from it. To me the importance of making profits is one of the reasons our economy is in the position it is right now.

Car Dealers Fighting the High Gas Prices

With gas prices reaching nearly $4.00 a gallon, car dealers are experiencing difficulties selling new vehicles, especially SUVs and Trucks. Though there are still many drivers out there looking for the capabilities of larger vehicles, consumers are questioning whether or not those capabilities and benefits are worth the extra money at the pump. Personally I feel the extra capabilities and benefits are worth the extra spending. I recently purchased an SUV myself and though I have experienced a jump in monthly gas spending, I feel it is well worth it. However, how many people out there will feel the same way, that is the question that car dealers are asking themselves every day. For there to be a jump in SUV and Truck sales, there needs to a drastic change in gas prices or consumer spending.

My Ideas for Boosting the Auto Maker Industry

In today's economy companies have many options to creating a more profitable company. Some of the best ways to increase profitablility include down sizing the employment numbers, cutting departments, outsourcing, and reducing production. These are all ways to increase profits, but all of these include cutting jobs of American workers. In my opinion these options are all wrong. Although outsourcing has become very common in today's society and it is a great way to cut cost by producing the same product with less labor costs, the effects it has on the American economy may be irreversible. In my opinion American companies should be giving jobs to American workers to try to boost our own economy. Without employment of American workers the American economy has no chance to rebound as quickly as all are hoping. I could only hope that the American companies that once created the back-bone of the United States will realize that jobs need to be given in the country that made them so powerful.

Auto Makers in a Slump

Today's American auto makers are experiencing a drought. Our local GM plant workers are being laid off due to the slow down in production. This slow down has been increasing due to the decrease in demand for automobiles. With employees worrying about whether or not they will have a job the next day and companies like GM trying to stay profitable it is a wonder how long automakers will continue to exist in the United States. The question is what can be done to to increase profitability and distribution? How long will this take?

The Loss in Profits of Today's Clothing Market

As the economy continues to decline there are many areas that are suffering. The clothing market is one that can be spoken about. With gas prices on the rise and the threats of employees losing their jobs, people are not spending there money is the same places as years past. Clothing stores are definately experiencing a blow. Companies like Abercrombie and Fitch, Pac Sun, The Buckle and other high end clothing stores are experiencing overflow of inventory. It is becoming harder and harder for everyday people to find the money to spend $50 for a T-Shirt or $150 for a pair of jeans. With prices like these and the economy in a slump it is unkown when the clothing market could bounce back.

Marketing In Today's Economy Is Not Easy

Today's economy, in my opinion is nothing to boast about. People today are very cautious about spending money on everything from brand name foods to family vacations. People are changing the way they live and the economy has a lot to do with it. The falling economy has made it very difficult for businesses to stay at the profit margins of years past. New products, more efficient costs and a less aggressive advertisement scheme are just a few of the ideas companies are trying use to keep profit margins high. For example in an article in the New York Times, this year's Super Bowl ads will be on the softer side, trying to appeal to the viewers in a whole new way. Due to the changes in the economy, this years commercials will not feature the violence and slapstick comedy of years past. Whether or not these ideas will be effective is still up in the air, but Monday morning we should have some answers.