In April 1985, Coca-Cola introduced New Coke—a sweeter, more vibrant variation of their classic recipe. They invested millions in comparisons, surveyed 200,000 consumers, and generated immense excitement surrounding the release.
However, just three months later, it became a crisis. Customers inundated call centers wiht grievances,sales plummeted,and Pepsi capitalized on the situation while Coca-Cola struggled to restore the original formula. This wasn’t merely bad luck. Research from Harvard Business School indicates that as many as 95% of new products do not succeed. That’s a significant number of products that never make it to market.So why do so many fail and how can you succeed? Let’s explore the reasons behind product failures and how you might avoid these pitfalls whether you’re a startup founder or a small business owner trying your hand at something new.
The Failure Formula: Reasons for Launch Failures
Product failures often follow a pattern. Initially, there is inadequate market research. New Coke presumed that “sweeter” would be preferable but overlooked the emotional bond consumers had with the original—this is a classic case of assuming what you think people want rather of understanding their actual desires. The second reason is poor execution: hasty launches, untested products or an excessive focus on flashy features rather then solid quality.
A case in point is Google Glass which had remarkable potential but failed because it was cumbersome,overly expensive and raised privacy issues. Ineffective marketing can also doom even good ideas—consider Quibi, a streaming service launched in 2020 with $1.75 billion in funding, which collapsed within six months, partly due to its short-form pitch failing to resonate during lockdown binge-watching periods. Lastly comes stubbornness post-launch—disregarding customer feedback and refusing to make adjustments. As an example, Blackberry’s decline occurred when it clung to physical keyboards while touchscreen devices gained dominance. These are not isolated incidents—they represent common causes for failure.
trevor Rumble from BioPak starts off with this advice: “begin by understanding your customers’ needs.” Guesswork won’t suffice—a lesson learned when Crystal Pepsi flopped in 1992 because consumers weren’t interested in clear soda drinks at all.Trevor recommends utilizing surveys, conversations and monitoring customer purchases for insights.
An example is Konstantin Klyagin from Redwerk who agrees by stating, “Engage continuously with your customers and inquire about their concerns.”
Klyagin founded QAwerk after clients expressed frustrations regarding testing services over several years.Daniel Cortezi from BioPak adds, “Leverage existing data to enhance customer experiences.” Imagine if a bakery realized that pastries sell better on weekends using this information to create special promotions.
Test Until It Hurts
Pushing ahead without adequate testing is an amateur mistake. Trevor Rumble emphasizes developing a robust concept allowing you to test and refine your product before launching into the market.Elliot Cohen from Pebl Funds states, “We started by testing within a small group first gathered feedback then made improvements.” Sharon Williams of Taurus marketing highlights continuous testing’s importance: “The real work begins once you launch.” Her company’s Taurus SHOP took three years for perfection.Testing could have perhaps saved Segway from its $5k scooter debacle.Testing helps prevent launching subpar products.
Olivia Jenkins advises creating an engaging brand narrative that resonates strongly with people.Simply listing features like “elementary settings,” won’t suffice.She asserts, “''.Make sure your brand stands out.” Dollar Shave Club achieved this back in 2012 by promoting not just razors but also delivering an entertaining relatable message—“Shaving sucks—we’ve got you covered.” conversely Microsoft’s Zune boasted decent technology yet lacked any distinct identity while iPod’s slogan “music is life” captivated audiences.Emily Bencsics from Megantic suggests crafting content that excites individuals.Repurposing content—like transforming blog posts into TikTok videos—could have helped Zune gain traction.
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