5 failed products from massive companies

Introducing a new product or service to compliment what you already offer is often a great idea as it can contribute to extra revenue and give your brand a whole new audience. However, it is important to act with a degree of caution. A disastrous product launch can be extremely costly for any business, big or small. Here are five examples of poor products launched by some of the world’s largest companies.

Key Takeaways

• Prioritise organic marketing alongside glitzy launches. The HP Touchpad failed despite high-profile promotions because it lacked social proof and clear demonstrations of its value compared to the iPad.
• Adapt quickly to emerging technologies. Nokia lost its market dominance by being too slow to anticipate the smartphone revolution, eventually leading to a desperate and unsuccessful partnership with Microsoft.
• Protect your brand identity and associations. Colgate’s foray into frozen food became a textbook branding disaster, as consumers could not reconcile a toothpaste brand with frozen entrees.
• Stick to your core strengths. Cosmopolitan Magazine’s attempt to enter the dairy market with yoghurts lasted only 18 months, proving that radical departures from a brand’s primary expertise rarely gain traction.
• Ensure product functionality meets user expectations. Apple’s early digital camera flopped because it lacked basic features like zoom or a preview screen, illustrating that even innovative ideas require polished execution.
• Conduct thorough market research before going live. Successful expansion requires a genuine need for the product, so businesses should take the time to get it right rather than rushing a flawed concept to market.

Hewlett Packard’s bitter tablet

To rival Apple’s enormously successful iPad, Hewlett Packard decided to get their teeth into the tablet market by launching the Touchpad. The product itself was said to have all the technical capabilities of the iPad. However, according to Time.com, “Despite large scale press events and promotions, the HP Touchpad was a colossal failure and was discontinued immediately.” Whilst Hewlett Packard had a more than capable product, this was not reflected in sales.

One fundamental reason for its failure was the lack of organic marketing which accompanied its release. They had the glitzy product launch but failed to showcase the product to a wider audience, particularly on social channels or through videos that demonstrated the Touchpad’s qualities. The product was soon discontinued and the iPad, well let’s just say it’s doing alright.

Nokia arrive unfashionably late to the smartphone party

Those of you old enough will remember the huge success that Nokia experienced in the late 90s and early 00s. Unfortunately the company’s golden period ended when they were too slow to adapt to new technology and failed to to anticipate the smartphone. This lead to them partnering up with Microsoft in 2011 to help launch their new Lumia range.

This partnership proved to be a disaster as the Lumia phones failed to dent the smartphone market. To make matters worse, the company became a laughing stock during the launch when they decided to review their own phone, which opened them up to ridicule and accusations of desperation.

Colgate introduce minty fresh frozen food

In perhaps one of the strangest product range launches in recent history, in 1982 toothpaste giant Colgate introduced a range of food products called Colgate Kitchen Entrees. Obviously the Colgate name was not something consumers associated with frozen food. According to the Huffington Post taste magazine, “When people think of Colgate they tend to think of clean teeth not frozen swedish meatballs.” This was reflected in the fact that the product  didn’t last long and is often referenced as a branding disaster.

Cosmopolitan’s newest edition, packed full of positive bacteria

A very bizarre product was launched in 1999 when Cosmopolitan Magazine decided to take on the food market by launching their own range of yoghurts…. yes yoghurts. And as you probably have guessed, this new product range did not gain much traction.  In fact it was stopped 18 months after its initial launch. In retrospect the company should have stuck to what they did well, rather than embark on such a radical departure..

A bad Apple

In 1994, a time when not everything Apple touched turned to Gold (we’re talking pre-Steve Jobs), Apple launched one of the first digital cameras – it flopped. According to Buzzfeed the product was majorly flawed “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.” Of course digital cameras would later become hugely successful but in this instance Apple clearly didn’t give enough thought into making the product as excellent as it could be.

There you have it, even some of the world’s largest companies are capable of creating products that simply don’t work. So what can your business take from this? When creating a new service/product you need to carry out all the necessary research (for example, is there a need for it?) before ‘going live’ – it’s far better to take your time and get it right rather than rushing something out.

If you would like to read more posts like this take a look at our dedicated Small Business blog.

FAQs

Why do most new products from big companies fail?

Most new products fail because of a lack of market research, poor timing, or a disconnect from the brand’s core identity. Even large corporations can fall into the trap of rushing a launch without verifying if there is a genuine consumer need or if the product aligns with what customers already trust the brand to provide.

How can I avoid branding disasters when expanding my business?

To avoid branding disasters, ensure any new service or product feels like a natural extension of your current offerings. Conduct thorough market testing to see how your audience perceives the move. If you are planning a radical departure, consider launching under a sub-brand to protect your primary business reputation from potential fallout.

What is the importance of market research for small businesses?

Market research is vital because it helps you understand your competitors, identify your target audience’s pain points, and determine if your pricing is sustainable. For a small business, a failed launch is often more damaging than it is for a global giant, making it essential to validate your ideas through surveys or pilot tests before a full rollout.

Does a bad product launch mean my company will fail?

Not necessarily, as many successful businesses have survived significant setbacks by learning from their mistakes and pivoting quickly. The key is to acknowledge the failure early, minimise further financial loss, and return your focus to your core profitable services.

How do I protect my business name and reputation?

Protecting your business involves both legal safeguards and consistent brand management. You should ensure your company name is registered and consider company fraud protection to monitor for unauthorised changes. Maintaining a high standard of customer service and delivering on your brand promise are the best ways to protect your reputation during an expansion.

What are the most common reasons for product discontinuation?

Products are typically discontinued due to:

• Low sales volume or lack of market share.
• High production costs that outweigh the profit margins.
• Negative consumer feedback regarding quality or usability.
• Strategic shifts where the company decides to focus on more profitable sectors.