Friday, February 18, 2011

Whe do Products Fail so Often

In our free marketing economy we have the right to start our own business and make a profit. We also have the right fail and loose money. Sometimes we fail because we don't listen to our customers. It is estimated that up to 80% of new product introductions fail. Read the excerpts below and answer the questions as comment posts.








Product Failure #1 - McDonald's Arch Deluxe In an effort to class up the McDonald's brand, the company created the Arch Deluxe, a product marketed towards adults with more sophisticated palates. Just one problem -- people don't go to McDonald's for sophistication.



1. Explain why you think this new product failed.







2. As a Marketer what would you have done to try and make this a success?











Product Failure #2 - Betamax Video Recorder The Sony Betamax VCR hit stores in 1975. A year later, Sony's rival released another video recorder -- the VHS. By early 1977, four other companies were selling VHS machines. Meanwhile, Sony chose not to license Betamax technology. Because the two formats were incompatible, consumers had to choose between the two.

1. Why do you think this product failed?

2. Sony could have done something very simple to make this new product successful. What do you think that is??

49 comments:

Grant Waters said...

1. McDonalds isnt a sophisticated store, its just a fast food burger place.

2. I wouldnt have tried to make it a huge deal.

3. Because it had too much competition, and the other products were better and compatable with each other.

4. Made their product compatable with the others.

Taylor Welsh said...

1. The new product failed because when you go to McDonald's you are not going to get a sophisticated meal, you are there to get a tasty quick meal.
2. If I was a marketer i would have tried to make the new sandwich seem better than the Big Mac.
1. This product failed because it was released at a bad time.
2. They could have waited and used the technology to make their own VHS.

Demi Ogunnowo said...

1. Explain why you think this new product failed.

Because they were trying to copy an item, and they did it for the wrong reasons, and the way they wanted to market it.

2. As a Marketer what would you have done to try and make this a success?

I would have tried to market it a different way, and not only target adults, but target everyone.

1. Why do you think this product failed?

Because they were not usinga aptenet to make sure no one else was stealing there priduct, so everyone was free to take it.

2. Sony could have done something very simple to make this new product successful. What do you think that is??

Make a Patent

Billy Summa said...

McDonald's
1. People don't want to go to McDonald's for sophistication, they go for greasy junk food.
2. I would of not said sophisticated palates in the ads.

Video Recorder
1. The product had too much competition and people wanted the easiest video recorder on the market.
2. License Betamax technology.

Jake Fredenburg said...

1. People with sophisticated palates don't go to McDonald's
2. Market on more sophisticated places.
3. Betamax was incompatible with other VCR
4. Sony could have licensed the Betamax technology.

Marisa Warren said...

First article
1. People don't want to go to a food place to order a "sophisticated" food item, we go to hopefully get a food choice that we like and will enjoy.
2. As a marketer I wouldn't say that it is a sophisticated food item, I would say that it's something else that it yummy and you would feel very good after eating it.
Second article
1. I believe that it failed because the sony customers could not buy both products hoping that they would be able to work off of each other. Also because the two products were not compatible for each other.
2. I think that they could of just updated the techonolgy used instead of designing a new product.

Josh Vandine said...

1. I think that this product failed because people who they marketed to dont like mc donolds or they mkade the price too high and no one wants a expensive mc donolds meal.
2. i would have advertised it to famalies or someone who you knows goes to mc donolds.
3. i think it failed because the market was not big enough for the two products and the other product was better or better advertised.
4. they could have market it better so taht they could have got more people to buy it.

Jordan Dean said...

Product #1
1. I think this product failed because people go to McDonald's for fast and cheap food, not for sophisticated possibly expensive food. This food might also have taken a longer time to make and that's what people are trying to avoid when they go to get fast food.

2. I would have tried to make this a success by makreting it more, because I have never even heard of Arch Deluxe. If more people had heard about what it was they might have gone to McDonald's and tried it.

Product #2
1. I think the reason the product failed is because Sony didn't license their product. If they had licensed it it may not have failed.

2. They could have made this product successful just by licensening it.

T.C. Cunningham said...

Product #1

1. I think this product failed because it was meant for people with more upperclass taste but those are not the type of people who go to McDonalds.
2. I would have changed the product to fit the more average persons taste.

Product #2

1. I think this product failed because more people were using the VHS and the VCR was not compatible with it.
2. I think Sony could have made it compatible with VHS as well.

Keenan Cozzolino said...

1. Explain why you think this new product failed.

Customers at McDonald's are there to get fast, accessible food that they can eat in a short amount of time. People just want to eat the food, they don't care for sophistication.

2. As a Marketer what would you have done to try and make this a success?

Segment the market so that the people wanting sophisticated menu items becoming attracted to McDonald's.

1. Why do you think this product failed?

Since only one company was offering the VCR, customers decided to go with the more accessible product. Had other companies made VCR's instead of VHS's, the VCR would have succeeded and the VHS would have failed.

2. Sony could have done something very simple to make this new product successful. What do you think that is??

Make it VHS compatible.

Caveh Davari said...

1. Because people do not think of mcdonalds as somewhere to get nice food. Also when people go to mcdonalds they don't want a sophisticated meal.
2. Find a better target market for the product and targeted to them.
3. Because it did not have the best technology during its time.
4. The makers could have upgraded the product to be compitatible with the VHS.

Chad said...

1. This product failed because people won't pay more money for a product that comes from a fast food restaurant. The image of McDonalds doesn't fit what they were trying to market.
2. I would have stuck around the McDonalds products and just get nicer ingredients.
1. I think it failed because more companies sold the VHS and it wasnt licensed.
2.Sony should have licensed Betamax technology so it would be more compatible with other companies models.

Cam Haney said...

1. This product failed because not many people go to McDonalds for fancy sandwiches and nobody bought them
2. I would have not made it so fancy.
3. This product failed because the consumers had too many options on what to choose.
4. They could have made it so that there was only one choice for the VHS.

Matt Felts said...

Product One
1. This product failed because McDonalds is more of a just go and quickly get some food and has been marketed mainly towards kids, so sophisticated burgers probably wont work.

2. As a marketer I would focus on how it is a healthier burger for all ages so that people would come and buy it.

Product 2
1. I think this product failed because people like to buy things that are in style and new.

2. Sony could update it so that a newer version of it is compatible with current items.

Alyssa Sanchez said...

Product #1
1. I think this product failed because people that are higher class and more sophisticated won't be going to McDonald's for a meal. The product may appeal to people these people, but give them no reason to come and buy it.

2. As a marketer, I would have marketed this product giving the consumer a reason to eat it. So far they have only marketed the "sophisticated sandwhich" but have neglected to talk about prices, convenience or anything else. If they do explain more about there product, then they may be able to win over more mature customers.

Product #2
1. This product most likely failed because consumers couldn't decide which product to use, and since neither were compatible with each other, were forced to pick. This may have resulted in the customer not buying the better product.

2. They could have completed the entire package by making there product compatible with there rivals product.

quentez said...

part 1
1. i think the reason they failed because exactly what the person whoever wrote this said people dont go to mcdonalds for sophistication its fast food for a reason.
2.honestly i wouldnt have changed anything mcdonalds has a pretty huge percent of the fast food market and like they say"if it aint broke dont fix it"
part 2
1. i think the product fail just becuse better qualitys of other products
2.they could of got a patent

dalton said...

1. This product failed because people that are looking for classy food and health conscience foods don't look for it at Mcdonald's.
2. I wouldn't have made it sound so fancy, I would have just called it a healthier alternative.
1.This product failed because the other companies created the easier to use VHS.
2.They should have licensed the VCR technology then make it more compatible.

Patrick Cook said...

1. when people go to mcdonalds they go there to get a buger or fries, not to get somthing that is sophistication.
2. advertised it as a helthy substutuite to a burger or other food there
1. becasue VHS is ha higher grade of tecnology then VCR
2. update it so that it is compatable with the current items

Thomas Schmedding said...

Product 1
1. This new product failed because people do not go to McDonalds for sophistication. You go to McDonalds for a quick bite to eat. Besides, most people that go to McDonalds don't have a sophisticated pallette because they are choosing to eat at the Golden Arches instead of a gourmet restaurant.

2. As a marketer, I most likely would not have offered this product. However, if I were to offer this product, I would advertise it as a "healthy choice that is sweeping the nation among adults." I never heard about the Arch Deluxe, so maybe they needed to mark it more/differently.

Sony VCR
1. The Sony Betamax VCR was not sucessful because it was not what the public wanted. If the VHS was not released so soon, the VCR could have become a hot comodity. I think the portability of the VHS videos caused more people to become interested in that player.

2. I think Sony could have marketed this as a simple way to store movies. Clearly they did something wrong, because this was a flop.

Austin Gardener said...

1. Explain why you think this new product failed.
Because people today have accustom to fast food such as McDonalds. They are not going to go to a fast food resturant wanting 5 star quality food. They want something quick and easy just like McDonalds is. The fancy fast food, is just something Americans can not get used to.



2. As a Marketer what would you have done to try and make this a success?
Advertise it as either a new fast food resturant with its simalirites and differences to McDonalds, or make it seem like a resutrant completelly different with more of a clean and "better" food enviornment.

1. Why do you think this product failed?
Because its rival came out with a product that was better than its original. And when it came out, the product was beoming popular. So all eyes went to this product.

2. Sony could have done something very simple to make this new product successful. What do you think that is??

Make a newer model.

Mitch DeForest said...

1. McDonald's new product failed because people arent lokking for nice sophisticated meals when they go to fast food resturants. people want a good burger, fries and a soda. tasty and cheap.

2.what McDonalds should have done is tested the product out with groups of people before releasing it out to the public. they should have understood better what their consumers wanted, talked with McDonald's eaters and see if people would have liked the new item att all; before releasing it to the general public.

1. the VHS machines were easier to obtain for the public because multiple companies had them. Sony was the only one with the VCR making it more expensive and less excessable to the public. thats why sony failed.

2. sony could have allowed the Betamax thechnology to be used by other companies, whjile still getting profit from them using it. this would have mand sonys VCR more widespread and reconizable in the public eye.

Jacob Giaquinto said...

1.) McDonalds is a fast-food resturaunt, meaning people dont care about what luxury there food has they just want the food quick, fast and easy.
2.) Record polls on what ways customers would want this item to appeal to them, and make them want to purchase this item.

1.) Because it was not compatible with other VHS items.
2.) Make it compatiable with the other VHS's.

Abraham Osorio said...

1. This product failed because people go to McDonalds to buy a burger and eat, not for anything that has to do with sophistication.
2. I would of put the sophistication in the burgers and made them bigger and better.
1.Since consumers had to choose which one they wanted they chose the one they thought would work better and newer which was the VHS.
2. They could of just put out a newer version and put some features that the VHS didn't on the VCR.

Matthew Bailey said...

1. Because people aren't looking to go to mcdonalds for sophistication they want to pig out.

2. I would've said that it tastes the same but is actually healthier


1. Because sony wasn't trying to be ahead of everyone else and their competititors won.

2. Make the other format compatible so that they could use the betamax.

Liam Serenciscs said...

1. no one goes to mcdonalds for luxury. they go for goowd eats

2. i would have tried to advertise it as just a new type of burger and not a delux item

3. because the vhs was a better product and people would choose that ove the betamax

4. sony could have made their product compatible with the vhs

Camden Mckinstry said...

1: people dont go to mcdonalds for luxory they go to have a quick and easy meal that there is nothing to it
2: i would have advertised it as another nasty, gross mcdonalds meal that people would get sick after they eat it

1: becasue a rival company came out with a better product that more people bought

2: they could have licensed betamax instead of making the customers choose between the 2

melissa kaznowski said...

1. i think it failed because mcdonalds is more targeting to teens and fat people. and fat people arent sophisticated.

2. to make this a success, i would advertise it more and add bacon. mcdonalds puts bacon on something and it sells like no other

-----------
1. it failed because the vhs was a better product so people would shoose the vhs

2. they could have mixed their ideas together thus forming a partnership

garrett taylor said...

1.because people dont go to mcdonalds for fancy meals they just want somthing quick and easy thats why its called fast food
2.made it cheap and maybe come with 2 sandwiches for 2 dallors
3.because the vhs was better than the vcr so everyone bought the vhs and they were probably cheaper
4.made there product cheaper than the rest

Sam Eaton said...

1. I think that the new McDonalds product failed because people dont look for McDonalds for really high quality food. They want something fast, and convenient.
2. I would have eased into the concept of deluxe food at McDonalds, and sent out surveys afterward to see how the public felt about it.

1. I believe the product failed because Sony made a different type of product that did the same function, but wouldnt run together. This caused confusion and also made things difficult for consumers.
2. They couldve use a wider range of advertising and endorsements and made it appeal to the masses, as opposed to something not as great, that got blown out of the water.

Jesse Womble said...

1.) This product failed because people who go to McDonalds to eat go to get a cheap meal not something fancy

2.)I would have marketed it to everyone not as a sophiticated meal but as a healthier but still cheap meal

1.)This product failed because there was a product just like it that was better equiped

2.)Sony could have lisenced the Betamax VCR

Teja Mulpuri said...

Mcdonalds
1. I think that offering classy food at a mcdonalds possibly the most unclassy place in the World was a bad idea because mcdonalds is not a place you go for sophisticated food. you go to mcdonalds for quick, cheap food thats gonna give you a heart attack.
2. I would maybe open up a subdivision of mcdonalds that was more sophisticated better areas more high tech and then maybe it would suceed because it would also be healthy food not a heart attack sandwich.

Sony
1. Because the two technologies are in theory supposed to work together however, the were not compatible so they did not work and the product failed.
2. THey could have made sure these products were compatible and liscenced it.

Ryan Sullivan said...

1. If someone wanted a sophisticated meal/ classy meal then your last choice should be to go to mcdonalds, and just about everyone in the country knows that.
2. I wouldnt have tried to make something sophisticated at mcdonalds. Thats a terrible idea. Thats like seeling pillows at a steel company. Who does that?

1. Because they gave other companies the option to use their software.
2. Got a license for it.

Mark Beacham said...

1. McDonalds customers dont care how sophisticated the products are they just want them fast.
2. I would have marketed the product in a way that made your experience at McDonalds faster.
3. This product may have failed becase the VHS machine was a better product.
4. They could have licesnsed the bettamax technology.

Stephvon Jones said...

1. These new products failed bacause people got use to the old brand and didn't want to really try a new brand.
2. I wwould had slowly brougt it out to the customers and test if they like it or not before i completely change it.
1. This failed because sony made their customers choose between there product and another's
2. They could have got reed of the first product and brougt out the new.

Elizabeth Margagliotti said...

1. I think this product failed because McDonald's didn't think about what people go there for and they didn't do a very good job of advertising it.
2. In order to make this a success I would have advertised more and made samples before actually selling it.
3. This product failed because Sony believed their customers would choose their product over others.
4. They could have made their product compatible to the others.

colton rossiter said...

1.) because the people eating at mcdonalds do not like the ingrediants put into the arch delux.

2.)switched some ingrediants

3.) the others were cheaper because of all the competition.

4.) they could have licensed it.

Collin Hardee said...

1) I think that people like something for its base value. At McDonald's, people like there food the way it is, that's why they chose McDonald's. By changing it up and bringing a new "sophisticated" approach, your just taking away from what McDonald's truelly is.
2) If I were a marketer, I would have advertised and got celebrities to endorse the new product.
1) I think the Betamax failed because Sony took a leap of faith and it just so happened to fail. Because the VHS was becoming so popular and the amount of companies creating these was more than the Video Recorder so Sony had a choice to convert to makign VHS like it's rivals or create something that isn't compatible for what the majority of people want.
2) Sony could have added a VHS player so that it was compatible with rival companies.

Ryan Tittus said...

1. People go to McDonald's so that they can get what they want and get out (hints to why it is called Fast food, they don't want to look up at the menu and take 5 minutes to decide what they want. Most people already have an idea of what they want by the time they show up.

2. Surveys or online polls would show the customers opinion on the product and slowly promote it more often than the other popular products.

1. The competition probably beat out Sony's Betamax VCR using things like; price and nonprice competition.

2. They could have made a simpler product or marketed the product more often so that they could see if it appealed to consumers, if not then they should have made a newer product.

Nathan Yonk said...

Product 1
1. People aren't looking for sophistication at mcdonalds. They are there for some wuick and easy food.

2. I would have just said that its a new look with the same great taste.

Prodcut 2
1. Sony's rivals made a better product then them.

2. I think they could have just made it advertised it.

Anthony Corrao said...

1) i think this product failed because of how adults dont really go to McDonalds for a nice meal that is nutritious to them.
2) to make this a success i would have probably changed the view or vision of McDonalds to a more sophisticated place where nicer meals are also provided.
3) i think this product failed because of how it was shown in two different formats and consumers had to choose between them.
4) to combine both of the formats to make one compatible product.

Amanda Walker said...

1. When poeple go to mcdonalds theyre most likely looking for a BigMac, fries or chicken nuggets because that's what McDonalds is known for. When somebody goes to McDonalds theyre not looking for steaks, pastas, vegetables or anything sophisticated therefor the product failed.
2. If I were a marketer I would make commercials showing more sophisticated people eating it so that the target audience knows about it and I would advertise it on billboards and on the windows of the McDonalds.
3. This product failed because with Sony you had to choose between the two and with other companies you could get them both in one.
4. Sony could have liscenced the Betamax technology.

Ryan Davey said...

1. i beleieve this failed, because most restauraunts have their own image,an image is a very important factor in restauraunts. Mcdonalds image isnt one for class and elegance, which is what they were going for, and this is why i believe it failed.
2.If i were a marketer i would have done some more research on how i could have made this idea work.
1.I think it failed because its like buying a car, it cost a lot of money and you only make one choice.Buying two would just cost too much.
2.Combine the VHS and the Betamax VCR into one device.

Jeff Valdini said...

1.)I think that this product failed because people don't go to McDonalds for fancy, high quality food. They go to there to get something to eat really fast and cheap.

2.)I would have made all products, except the ones on the kids menu, more sophisticated and slowly introduced the new product.

1.)I think that this product failed because there was too much technology and people prefer newer technology.

2.)I think that Sony could have licensed it so other companies couldn't take its idea. Also, they could have made it easier and more available.

Josh Cortes said...

PRODUCT FAILURE #1
1) McDonalds Arch Deluxe probably failed becuase mcdonalds is a fast food franchise and people go there when they want good foosd fast. If they were looking for a sophisticated meal they would probably not go to McDonalds and go somewhere like Olive Garden.

2) I would have advertised it saying "sophisticated meals, same recipe, just as fast" to show that you can have sophisticated meals while still in a hurry perhaps.

PRODUCT FAILURE #2
1)Becuase sony was selling their version of the machine and numerous companies were using the VHS people had more brands to choose from for the same product which probably meant competative prices

2) Sony probably could have lowered the price making them the cheapest with the product

Tino Weiss said...

Product #1:
1. I think this product failed because of what is stated in the blog: "people don't go to McDonald's for sophistication". When people go to McDonlds, they want a quick, fast meal, and do not care that it is sophisticated. People who want a sophisticated meal should go to nice sit-down resturants.
2. To make this a sucess, the marketer should have advertised that the taste of this new sandwich will appeal to the younger kids that want to go to McDonald's. The created could have made the sandwich a little less sophisticated, and quicker and more appealing.

Product #2:
1. I think that this product failed because the two formats were not compatible with each other.
2. To make this product successful, Sony could have programmed their device to be compatible with the other format.

Kieran P. said...

Product Failure #1
1. I think that the new product failed because people generally go to McDonald because it is a place that is not sophisticated and they can just go and grab a simple bite to eat. So when McDonald tried to class it up a bit it took away what the costumers liked about McDonalds.

2. As a marketer to try and make this a success I would not change McDonalds by making it more sophisitcated. McDonalds is successful for being a quick and easy fast food chain and i wouldnt change that.

Product Failure #2
1. I think the product failed because costumers had to choose between the two, they obviously chose the newer one.

2. License Betamax technology.

Jacob Roberson said...

1. I think that this new mcdonalds item didn't work, because people going to McDonalds just want to get a normal burger, not anything different or fancy. Thats the whole reason people go there.
2. If I was a marketer I would have created a product that was new and different, but I would not have started trying to change the product to something completely different from what people are used to getting at McDonalds.

1. I think the Sony product failed, because the other company's took their technology and made it better.
2. If Sony had licensed the product, other company's would not have been able to use their technology and make it better.

jake berger said...

Market Failure #1

I feel like this product failed because nobody wants to pay extra for the same product you could get at any normal mcdonalds. An upscale mcdonalds to me is a ridiculous idea because there is nothing fancy about the golden arches. I also beleive it failed because it was marketed towards people who were a little more classy, so it lost many customers who could not afford to eat at an upscale mcdonalds.

2. I would have made all the items the same price as a normal mcdonalds, just a nicer venue. At this upscale place i would also offer items that have never appeared on the regular menu. The target market would be anyone who enjoys the golden arches.

Market Failure #2

1. No one wanted to use a betamax because it was alot different than a VHS and was more expensive. Sony should have thought about the competition and went along with it instead of making a product that was too expensive for customers to buy. They didnt liscense it so no one else could use it

2. They should have liscensed it for other companies to use because if everyone was selling them somebody would have started buying them

Adam Gitlin said...

1. The new product failed because they marketed to the wrong group; they should of marketed towards the people who visit McDonald's the most.

2. If I was the marketer I would of simply not used this marketing strategy. I don't think the everyday customer cares how good the food looks like before they eat it.

1. Sony's product failed because the product was not compatible with the product that made it work, the VHS.

2. Sony should of made the VCR and the VHS compatible so the product would be more sucessful.