Failure in the future? Simply NO!
So what’s the reason that companies suffer from massive financial loss by their marketing strategy?
Marketing failure is cause by applying wrong strategies as far as price, product, position and promotion is concerned (Uusitalo, 2016)
Many product got fail due to wrong marketing strategies therefore studying about the fail product will enable many new companies to learn and avoid mistakes which have been done previously. Market campaign can be strong and progressive by analyzing various tools for doing successful marketing while launching a new product. Moreover it would be difficult to identifying key indication like problems and symptoms while developing a product but if risk is analyzed before the product is market can saved massive budget of organization and avoid the cost which will irrecoverable ones the marketing tactics will failed.
“Many times in market research practices are contributing to this high rate of failure and reason are as follows”
1) From binging many customer need are not understood.
2) The wrong use of methodology
3) No action is taken on collected data.
Studying failures but no guarantee for fruitful future
Getting a good knowledge of failures product is very important which somehow helps to prevent disappointment in future. additionally it give insight reason for those wrong marketing strategies and create long list of factors that increase rate of success . However, there would be no guarantees .
Marketing issues on broader level !!!!
Marketing issue by Retailer
Walt-Mart bakes an ISIS cake
An angry man was asking explanation from Walmart after his request was rejected for a confederate flag on cake but later ISIS flag design was accepted.
On June 2015 wall mart baked an ISIS flag cake on it. However, according to wall mart their worker was unaware that banner belongs to extremist group who are working in Syria and Iraq . Moreover, this cake turn out to associated with controversy surrounding Wall-Mart in summers of 2015 . Whereas, they took a decision to stop selling of any product which represent confederate flag. The merchant apologies for ISIS cake .
2015 retail marketing failure
- Ocd sweater by target
- ‘Race together’ campaign by star bucks
- 9/11 and Boston bombing add run by McDonald
- Urban outfitters sells holocaust design
The many product launches with a good strategies regarding marketing segmentation . most of them gain surplus of product-market combinations. However after Apple and Samsung rose in telecommunication market specially in smart phones , Nokia lack of focus and strategic approach regarding innovation was major obstacle for moving them forward .furthermore somehow marketing strategies have also been a major issue for Nokia that’s why they are no able to deliver according to demand . (Bouwman et al., 2014)
Telecommunication and computer industry marketing failures .
- Apple’s product Lisa
- Coleco’s Adam 19
- Bumble Bees software
- Windows vista
Stereotypical marketing tactics is used by Molson Coors in 2011 for launching its pink beer of its Animee brand to UK market . The lightly sparkling for women come into three types zesty lemon, rose and clear filtered .moreover it was push with $US3.2m for marketing position targeting this beer for a women as a real choice .
Unfortunately, the marketing approach was not up to the mark which can shit Annime off the shelves . Just after 12 months brand comes to failure and stop its operations.
Charge against Red Bull marketing strategies for not giving wings to consumer.
One a consumer sued red bull company after consuming their product for 10 long years. Red bull company claim that they will give wings after consuming it drink but regrettably didn’t happen
Result Red bull had to pay $ 13 million for total damages by their marketing strategies
some other examples from beverage industries are :
- Chelsea—“baby beer”
- Virgin Vodka
- Rc Cola
- Coca-Cola 1985
Common marketing reasons for failures of product!
- The target market ideas does not fit sometimes which is being pushed by high level executives
- Market size is over estimated
- Incorrectly positioned product without studying competitor strategies
- Limited knowledge about branding and market segment.
- Inefficiency in distribution and selection of timing
- Misleading market research which unfortunately does not reflect the actual consumer’s and their behavior for specific targeted segment.
- Findings are ignored after doing marketing research.
While you write your marketing plan be aware of cause which let marketing plan fail. Learning outcome from mention historical marketing issues can avoid this pitfall and increase the success for future marketing strategies
Name : Muhammad Wajahat Ali Khan
abc NEWS, (2015). [image] Available at: http://abcnews.go.com/Business/walmart-apologizes-making-isis-cake-man-denied-confederate/story?id=32103721 [Accessed 17 Aug. 2016].
Bouwman, H., Carlsson, C., Carlsson, J., Nikou, S., Sell, A. and Walden, P. (2014). How Nokia Failed to Nail the Smartphone Market. [online] ResearchGate. Available at: https://www.researchgate.net/publication/265637998_How_Nokia_Failed_to_Nail_the_Smartphone_Market [Accessed 17 Aug. 2016].
Nokia global segmentation strategy, (2007). [image] Available at:https://www.researchgate.net/publication/265637998_How_Nokia_Failed_to_Nail_the_Smartphone_Market [Accessed 17 Aug. 2016].
Uusitalo, J. (2016). [online] Publications.theseus.fi. Available at: https://publications.theseus.fi/bitstream/handle/10024/52282/Uusitalo_Julia.pdf?sequence=1 [Accessed 16 Aug. 2016].
youtube, (2015). Available at: https://www.youtube.com/watch?v=q7ePFollQQE [Accessed 18 Aug. 2016].