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withdrawn from the market in Dec 2009.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But the product got a tepid response from the consumers and it was withdrawn in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.
Ponds 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 wasnt clear if it is meant for bikers who dont 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 1520 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
UKssupermarkets

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 Groupons 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 Groupons aggressive sales tactics that they often
told the companys 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 Microsofts
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 didnt 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, Apples QuickTake (19941997) 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, whos credited with the Crystal Pepsi concept, said in a 2007
interview: It was a tremendous learning experience. I still think its 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.
McDonalds Arch Deluxe
Year launched: 1996
Why it bombed: McDonalds 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-Lays 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.