Sometimes, marketing fails like Starbucks in Australia. It is important to solve the right question for marketing research to prevent marketing failures. Do you know of any other cases of marketing failures? How would you do differently if you were in charge?
No amount of words just write as little or much as you can.
Reply to 2 classmates: 3-5 sentences each
Classmate 1: When I think of marketing failures, one product always comes to mind: New Coke. In 1985, the Coca-Cola company decided to reformulate their famous flagship product and re-brand it as "New Coke." New Coke didn't just differ by appearance, but also introduced a new flavor that was described by the Coca-Cola company as being "bolder", "rounder" and "more harmonious." It was ultimately described as being sweeter than the regular formula. Loyal Coke consumers disliked the new flavor in comparison to the original, and the product faced extreme backlash. New Coke was eventually discontinued in 2002, and the original Coke cans were labeled "Coca-Cola Classic."
If I were in charge, I would have introduced New Coke as another option in the soda line up instead of completely replacing the original product that had made the company famous. By introducing the new formula as a separate product, the Coca-Cola company would be catering to its loyal consumers by sticking to its roots, while also attracting new customers who may prefer a sweeter flavored beverage. I don't think New Coke was a total flop, however. In an interview on the topic, the vice president of Coca-Cola's trademark Jaideep Kibe stated: “Some people think of 1985 as an epic failure. Others think it’s marketing genius because what it did was it strengthened consumers' connection to the real thing in some ways. (Campbell-Schmitt)” While the Coca-Cola company was certainly taking a risk, the sporadic removal and reintroduction of their flagship product showed how loyal their customers were to their brand. Sales may have dipped when New Coke was first introduced, but Coca-Cola Classic quickly circumvented and surpassed its temporary successor soon after reintroduction to the market.
Works Cited:
– Campbell-Schmitt, Adam. “We Compared New Coke to Coca-Cola – Here Are Our Thoughts.” Food & Wine, Food & Wine, 29 May 2019, www.foodandwine.com/news/new-coke-vs-coca-cola-taste-test.
Classmate 2: One notable and well-known example of a case of marketing failure is the rise and fall of the movie rental company Blockbuster, and their failure to adapt to the rise of streaming services like Netflix. For many years Blockbuster was known as the dominant player within the video rental industry but ultimately failed to recognize the future potential of streaming technology. In the early 2000’s Blockbuster underestimated the shift from physical movie rentals to streaming / digital movie rentals which led to their failure and bankruptcy. Additionally, according to Frank Olito and Alex Bitter, “mistakes, such as declining to acquire Netflix when it was just a startup, led the company to go bankrupt and close almost all of its stores.”
If I were in charge, I would have prioritized and conducted further market research to fully understand the changing market trends and evolving needs, wants, desires, and preferences of consumers. In addition, based on the conducted research I would’ve noticed the rising of popularity within streaming services and platforms such as Netflix which would’ve have resulted in a shift of the company’s business model. If I were in charge, I would’ve been proactive to embracing change and willing to innovate in order to remain at the forefront of the industry while simultaneously maintaining the evolving needs, wants, desires, and preferences of our customers in the market. Additionally, instead of trying to hold on to the ancient and traditional values of brick and mortar I would’ve created a customer centric approach and formed a strategic partnership with up-and-coming streaming platforms such as Netflix or investing directly into Blockbuster’s own version of a digital infrastructure / platform / service. Shifting to a streaming / subscription-based business model would’ve made accessing content more accessible and easier for customers to view anywhere and anytime and that’s how I would’ve target marketed our consumers. Furthermore, if I were in charge, I also wouldn’t have underestimated any of the competitors emerging in the movie rental industry such as Netflix and Redbox. Instead as the dominant player within the industry I would’ve claimed the majority market share with the household brand name of Blockbuster by studying market trends, and the strategies of the competitors.
Work Cited:
Olito, F. & Bitter, A. (2023, April 24). Blockbuster: The rise and fall of the movie rental store, and what happened to the Brand. Business Insider. https://www.businessinsider.com/rise-and-fall-of-blockbusterLinks to an external site.