50 Biggest Product Failures in India

50 Biggest product failures in India MAGGI DAL ATTA NOODLES with sambar tastemaker How can anyone expect a magi product failure??? Maggi is the most liked product in instant noodle category, an all-time favorite, loved by all.... Our favorite 2-minute noodle - magi - was launched by Nestle in 1982. In 2006 Nestle India Limited launched Maggi dal Atta noodles. But consumers did not like the taste of these noodles and it was no longer seen in the market PARLE MUSST STICKS The second product failure is again from a commonly known brand name - Parle. Who does not love the "dipped in tea" Parle-G biscuits??? Who does not love Hide n seek, Milano, krackjack, Monaco and more - all by Parle. In this long accepted list of Parle food products there is a parley product that bombed in the market- "Parle Must Stix". It is said that the product failed because there was no product differentiation, it was an imitation of nurture and the product name "Must" was detracting. But Parle relaunched this product and it was named as Full Toss. To read more click here CADBURY PERK MINT Most of you might not have heard of "Mint" Perk - a Cadbury product which was once launched in a mint flavor and it failed to find customer acceptance and it was discontinued from the market. SAFFOLA ZEST Suffolk - a name that is well known for cooking oils entered the market as a health and wellness brand. Soon under the health label they launched 2 more products scaffold low sodium salt and Atta for diabetics which did well in the market. In 2010 scaffold launched scaffold oats and a low calorie and low carbohydrate packaged rice brand - Sabol Arise which is still continuing. But in 2009 Suffolk launched a product that failed miserably - Suffolk Zest - a baked salty snack, which was the first product in the snack food category. It was quickly withdrawn from the market in Dec 2009. Well the munch idea did not work for scaffold MONACO SAMRT CHIPS How many of you remember the two commercial in which Aamir jumped from one place to another offering an oversized T-shirt to people eating unhealthy fried chips??? In the ad Aamir bring in a healthy alternative to fried chips - Monaco Smart Chips by Parle.

But the product got a tepid response from the consumers and it was withdrawn in August 2011. Parle snacks did not find the customer acceptance like their biscuits do. Vanilla Coke The brand was targeted at the metro youth was different. It was different in taste, promotion, package, price etc. Vanilla Coke was promoted in retro style. The brand had Vivek Oberoi , the then bollywood flame endorsing the brand in an unusual style. Vivek sported the retro look with typical combination of Elvis style + Shammi Kapoor style in an Old Lamby Scooter screaming Wakaw. It failed because. The campaign was not targeted at the right segment. This campaign had its fair share of critics also. The brand was priced at a premium over the ordinary coke. This may have discouraged the TG from checking out the brand Godrej Ganga Soap Ganga had a revitalisation effort in 1997 when Godrej tried to relaunch the brand under the name Doodh Ganga. But those effort went in vain. The primary reason why the brand failed was that the differentiation was not sustainable over time. Although Hindu's are very religious in nature and rivers the tradition but the consumers are discerning when it comes to purchasing products Tata Sierra Sierra primarily failed in the market because of its steep price. Priced around Rs 5 lakh, the brand failed to appeal to the value proposition of the Indian consumer. Sierra can be said as a brand that came too early. The Indian market was not ready for this concept. Kinetic Blaze-Shortcut to fame Blaze is so far the most powerful scooter in India. This 165 cc mean machine is huge and heavy. Blaze was all set to redefine the scooter market in India The launch ads (TVC) was nothing but a marketing disaster. The agency just killed the product. The ad talks about Rohit Varma. Then the baseline says " Short cut to Fame". It is one of the lousiest positioning statements ever. Maruti Versa The brand was positioned as " Two luxury cars for the price of one”. The ads talked about twin A/C, comfort and space. Versa was launched with a 1300 cc engine which was the same used in Maruti Esteem.

Despite the dream launch, Versa failed to generate volume. The basic issue was the price. Versa was launched with a price of Rs 5.15 lakh for the base model and the top end model costs around Rs 6 lakh. Those enthusiastic customers who flocked the showroom after viewing the ads was shocked by the steep price of Versa. Versa was priced at par with Maruti Esteem and other entry level sedans. Honda Street Street was the Indian version of the world famous Honda Cub series. Honda Cub was the world's largest selling single model bike which has sold more than 2.5 crore units. The case is about marketing mistake. The product failed in all aspects of marketing mix except the distribution. The product was not good enough. It looked like a glorified M80 from Bajaj which was used by Fish vendors and the like. The campaign was also not successful. The initial campaign tried to teach the customers the new Clutch less gear system and its efficacy, the customers was not impressed with this feature. Tamarind Riding on the pulling power of Hrithik Roshan, Tamarind had a huge brand recall during the launch. Tamarind was positioned as a fashion wear. The clothes were designed by the famed London based designer John Paul Vivian. The brand had the tagline " The Flavour You Wear ". The brand was designed to be a fun, fashionable trendy brand. Three major factors was the cause of this brand's failure. Price and Distribution and Differentiation. Subhiksha Trouble for Subhiksha began in late 2008 when the company ran out of cash, bringing its operations to a standstill. Subhiksha faced severe financial crisis pertaining to liquidity. The cash shortage eventually resulted in Subhiksha closing its nationwide network of 1,600 supermarket stores, and defaulting on loans, vendor payments and staff salaries. The overextended chain imploded and all stores across the country were shut down, most likely never to open again Suzuki kizashi The mid-sized sedan segment is super crowded with focused products at the same price point as the Kizashi. Compound this with the fact that the Kizashi often shares showroom space with superior products, which means salespeople are less motivated to focus on a car that is less likely to result in a sale.

Suzuki has never been known in the US for luxurious or sporty vehicles, and there are few dedicated Suzuki dealerships, often combined with other brands like Hyundai or Subaru that have more appealing product. Suzuki grand vitara Maruti Suzuki Grand Vitara has been a market failure in India. Grand Vitara had engine problems, steering control problems and it was a petrol version when launched in India which gave the average of 7-10kmpl. Learning from the failure, Suzuki has launched diesel variants and recalled the cars with the problems and repaired it worldwide. Maruti suzuki zen classic Maruti Suzuki launched a limited edition model of the mega hit Zen. The Indian car buyer is known to be potentially resistant to retro looks when it comes down to cars. Zen classic was launched in the year 2000, when its competitors were catching the Indian car buyer. The mass wanted to switch to more technological advancements in their four wheelers. This is what went wrong with this product. Zen classic design was more to attract eastern European countries. Rasna oranjolt Oranjolt needed to be refrigerated. The problem was that Indian retailers tend to switch off their shop refrigerators at night. As a result, Oranjolt faced quality problems. The product has a shelf life of three to four weeks where other soft drinks were assured a shelf life of over five months. Servicing outlets was also a problem. Rasna failed to anticipate the quality problems it faced as a result of retail practices. Pond’s Toothpaste Ponds toothpaste is a classic case of product failure by extension. Brands need to be careful to choose the territory in which they tread. Brands need to be cautious while choosing the territory in which they tread. Lack of proper research before entry into a new market or segment can lead to catastrophic results which include wasting of big sum of money on product development and marketing. Kinetic Blaze Blaze is so far the most powerful scooter in India. This 165 cc mean machine is huge and heavy. Blaze was all set to redefine the scooter market in India The launch ads (TVC)was nothing but a marketing disaster. The agency just killed the product. The ad talks about Rohit Varma. Then the baseline says "Short cut to Fame". It is one of the lousiest positioning statements ever. Harley Davidson Perfume Harley-Davidson launched a perfume range. The idea in itself created a confusion in the masses. It wasn’t clear if it is meant for bikers who don’t want to smell like

bikers, ores it for the people who want to smell like bikers. Simultaneously Harley Davidson launched wine coolers, after shave. For brands that inspire strong loyalty, the temptation is to test that loyalty to its limits by stretching the brand into other product categories. Virgin cola Virgin Cols was priced 15–20 percent lower than the two leading brands, not enough consumers were being won over. Part of the problem was distribution. Coca Cola and Pepsi managed to block Virgin from getting crucial shelf space in half the UK’ssupermarkets

Groupon Group-buying deals site Groupon in Aug 2011, shut down 13 of its outlets in China and fired over 300 full-time staff. Groupon now holds a minority share, of the local Chinese daily deals website site Gaopeng which it launched in partnership with Tencent. Groupon is an example of a western internet company to fail in china. It can be inferred that the company lacked local understanding which resulted in its failure Lack of local understanding - One example is Groupon’s sales team in China. In the beginning it urged that the partnering vendor split profits 50:50. It neglected the group buying attitude of Chinese customers. With many seasoned players in the market, the upper hand lay with the vendors when negotiating with group buying operators and the percentage of profit is only 10% as opposed to 50%. Local vendors were so taken back by Groupon’s aggressive sales tactics that they often told the company’s sales people to calm down and come back later with more realistic expectations. Life Savers soda Year launched: 1980s Why it bombed: The candy-flavored drink fared well in taste tests but tanked on the shelves. Some customers found it too sweet, while others avoided purchasing it altogether, assuming it would be akin to drinking “liquid candy.” Microsoft Zune Year launched: 2006 Why it bombed: The Zune, developed in conjunction with Toshiba, was Microsoft’s answer to the hot new iPods that Apple was pushing. But the clunky Zune failed to swipe enough market share, as the iPod took around 65%. On Oct. 3, 2011, Microsoft announced the discontinuation of all Zune hardware, encouraging users to transition to Windows Phone. Colgate Kitchen Entrees

Year launched: 1982 Why it bombed: Colgate decided the logical way to pivot its toothpaste empire was to launch a line of frozen dinner entrees. Unfortunately, customers didn’t exactly rush to get their hands on stir-fry churned out by the same people who put peppermint paste in a tube. Apple QuickTake camera Year launched: 1994 Why it bombed: One of the first digital cameras, Apple’s QuickTake (1994–1997) was a 0.3-megapixel camera that took 640 × 480 resolution images, of which it could store eight. The camera had a built-in flash, but no focus or zoom controls. Other than downloading the photos to a computer, there was no way to preview them on the camera; it also retailed for a pretty steep $600–$750. Cosmopolitan yogurt Year launched: 1999 Why it bombed: Yes, like the magazine. The famously titillating ladymag once made an ill-advised foray into dairy products, introducing a “sophisticated and aspirational” yogurt brand. The only thing Cosmo-gurt aspired to, however, was a short shelf life: It was discontinued after a mere 18 months. Crystal Pepsi Year launched: 1992 Why it bombed: Crystal Pepsi was marketed as a caffeine-free “clear alternative” to normal colas, equating clearness with purity and health. Revenue benefitted from its novelty soon after its launch, but sales quickly nosedived. Yum! Brands Chairman David C. Novak, who’s credited with the Crystal Pepsi concept, said in a 2007 interview: “It was a tremendous learning experience. I still think it’s the best idea I ever had, and the worst executed.” Thirsty Dog bottled water Year launched: 2008 Why it bombed: Does your pet really need his or her own Evian? The founders of Thirsty Dog betted yes when they launched a line of portable water infused with flavors like crispy beef (for dogs) and tangy fish (for cats). Unfortunately, Thirsty Dog ended up permanently in the doghouse. McDonald’s Arch Deluxe Year launched: 1996 Why it bombed: McDonald’s launched the “adult-oriented” Arch Deluxe, which featured a circular piece of bacon, slivered onions and a “secret” mustard and mayonnaise sauce, with a $150 million ad campaign — one of the most expensive

advertising campaigns in history. However, customers were turned off by the high price and unconventional ads, and consumer groups were upset by the higher caloric content. More like Arch De-DUD. Harley-Davidson perfume Year launched: 2000 Why it bombed: The famous motorcycle line debuted a line of colognes — Black Fire, Territory, Cool Spirit, Destiny, Hot Road, and Legendary — that failed to capture the wallets of its rough riders. Qwikster Year launched: 2011 Why it bombed: In September 2011, Netflix CEO and co-founder Reed Hastings announced in a Netflix blog post that the DVD section of Netflix would be split off and renamed Qwikster; Netflix subscribers who wanted DVDs by mail would have had to use a separate website to access Qwikster. After a colossal outcry from customers, Hastings scrapped the whole project one month later. Frito-Lay WOW! chips Year launched: 1998 Why it bombed: Frito-Lay’s new line of fat-free snacks sure sounded too good to be true, and it kind of was: The company replaced the fat in its popular snack brands with a compound called Olestra, which subsequently caused major cramping, “anal leakage,” and other digestive complications for many people. YIKES. New Coke Year launched: 1985 Why it bombed: Coca-Cola tried to improve the formula for its flagship cola product, but many customers fiercely rejected “the new taste of Coca-Cola.” Many of the backlashers were Southerners who considered the drink a fundamental part of regional identity, and soon Coke faced public protests, boycotts, and bottles being emptied into the streets of Southern cities. The company soon reintroduced its original formula, calling it “Coca-Cola Classic.”