When a product fails, there could be many reasons – poor economy, too much competition, or a lack of market demand. Famous examples include “New Coke,” Crystal Pepsi or Sony Betamax.
These products all failed hugely and publicly. While the advertising was blamed in many cases, it’s also true that at least part of the fault lies with poor market research. If proper focus groups and quantitative research surveys had been conducted for any of these products, the embarrassment and monetary loss for all three companies could have been avoided.
In focus groups for New Coke in the '80s, the samples of New Coke were well-received. However, participants were also satisfied with current Coca-Cola offerings, and some had strongly negative reactions when asked if they would buy this new soft drink if it replaced Coke Classic. The survey was less negative, but if the focus group results had been better used to create the quantitative research questions, things could have gone differently.
For example, the consumer survey could have contained questions such as:
1. Are you satisfied with the original Coke formula?
2. Do you regularly purchase Coke products?
3. Would you consider buying a “New Coke” product if the flavor was different?
4. Would you buy the “New Coke” if the new formula replaced Coke Classic?
These types of questions might have given a more well-rounded view of public sentiment, like the response that happened in the focus groups. Although it might seem less exciting to have a negative result to a marketing research survey, overall the company will save money, and avoid negative press. Paying for a study is cheaper than launching a product no one wants, after all.
These products all failed hugely and publicly. While the advertising was blamed in many cases, it’s also true that at least part of the fault lies with poor market research. If proper focus groups and quantitative research surveys had been conducted for any of these products, the embarrassment and monetary loss for all three companies could have been avoided.
In focus groups for New Coke in the '80s, the samples of New Coke were well-received. However, participants were also satisfied with current Coca-Cola offerings, and some had strongly negative reactions when asked if they would buy this new soft drink if it replaced Coke Classic. The survey was less negative, but if the focus group results had been better used to create the quantitative research questions, things could have gone differently.
For example, the consumer survey could have contained questions such as:
1. Are you satisfied with the original Coke formula?
2. Do you regularly purchase Coke products?
3. Would you consider buying a “New Coke” product if the flavor was different?
4. Would you buy the “New Coke” if the new formula replaced Coke Classic?
These types of questions might have given a more well-rounded view of public sentiment, like the response that happened in the focus groups. Although it might seem less exciting to have a negative result to a marketing research survey, overall the company will save money, and avoid negative press. Paying for a study is cheaper than launching a product no one wants, after all.
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