While we all love a success story, sometimes a story about failing is just as informative. We say, “it couldn’t happen to me….” But oh my, it can happen to anyone and any company. After all, roughly 95% of new products fail. Further, only about 20% of new products live longer than two years after launch. Those are daunting numbers.
Despite all these rather glum numbers and examples, innovation in products and services are absolutely critical to companies. What can we learn not just from the successes, but just as importantly from the failures?
Here’s a few examples to ponder:
- Microsoft’s first music player – the Zune.
- Apple’s Power Mac G4 Cube.
- ESPN mobile phone.
- Google Stadia.
- Juicero juice press.
- Keurig KOLD.
- CNN+ (launched, lived, and died in 30 days).
- Samsung Galaxy Note 7.
- Amazon’s Fire Phone.
- Google Glass.
- New Coke.
- Cheetos lip balm.
- Facebook Home.
What are some of the common elements of the failed products? Well, top of mind comes a bad product-market fit, poor timing, ignoring customer feedback, a poor or incomplete marketing plan, failing to satisfy customer needs, poor quality, or just a me-too product are among the most common errors.
Can you name a recent product failure?
Group Activities and Discussion Questions:
- Poll students: What are key elements to a success new product?
- Discuss the needs of the market along with a solid marketing plan.
- Show a video about product flops: https://youtu.be/Hq7Pz27j2lI?si=_peXfR_BFASf3aA8
- Divide students into teams. Have each team select a failed product to analyze.
- After they have analyzed what went wrong, have each team either (1) develop a new marketing plan, or (2) explain why the product will never make it in the marketplace.
Source: Cohen, B. (19 July 2024). The man in Silicon Valley who’s completely obsessed with failure. Wall Street Journal; Webber, A. (29 January 2024). 11 of the biggest product flops of the last decade. 24/7 Wall Street.
