- Crystal Pepsi was introduced in the early 1990s as a clear alternative to cola drinks but failed to catch on due to being an offensive drink that targeted the wrong demographic and lacked proper market research.
- The HP Touchpad tablet, released in 2011, struggled due to a lack of apps for its WebOS platform, weak advertising, and its similarity to the highly popular iPad which it could not compete with.
- Samsung's Galaxy Note 7 was abruptly discontinued in 2016 after some phones exploded due to issues with lithium-ion batteries from one of Samsung's suppliers that caused overheating from incorrectly coiled parts inside the batteries.
Why These Products Failed: Crystal Pepsi, HP Touchpad, Samsung Galaxy Note 7
1. FAILED PRODUCTS
SHINU C KOSHY
S2 MBA(2021-23)
MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES THIRUVALLA (MACFAST)
KERALA INDIA
www.macfast.org
2. INTRODUCTION
In this we discussed about the reasons for the failure of products at its introduction stage.
The products that we are going to study ;
1. Crystal Pepsi (1990)
2. HP Touchpad (2011)
3. Samsung's Galaxy Note 7(2016)
3. CRYSTAL PEPSI
Crystal Pepsi is a clear cola soft drink made by PepsiCo.
It was initially released in the United States and Canada from 1992 to 1994, with brief re-
releases throughout the mid-2010s that were prompted by grassroots public revival efforts.
It was briefly sold in the United Kingdom and Australia.
Its flavor resembles standard Pepsi, with the absence of caramel color, allegedly making the drink
less "acidic" tasting.
4. Contin…
An early 1990s marketing fad called the clear craze equated clarity with purity.
This began with the reintroduction of ivory soap, with a marketing slogan of "99 and 44/100
percent pure", adapted from its classic milky solution.
Crystal Pepsi was marketed as a caffeine-free "clear alternative" to normal colas. Its marketing
slogan was "you've never seen a taste like this".
On April 13, 1992, PepsiCo introduced Crystal Pepsi to test markets in Denver, Sacramento,
Dallas, providence, and grand rapids, and the product generated a positive response pleased with
the results, PepsiCo began to sell the cola nationwide in December of that year.
5. HOW CRYSTAL PEPSI BECAME THE WORLD’S GREATEST FAIL
Marketing fad.
Offensive drink (sugar and water with little bit of flavoring).
Competition with Coca-Cola to grab the market.
Failed to product attributes.
Targeted old consumers.
Marketing inefficiency.
Too much caffeine than regular drinks.
Pepsi hadn't conducted much comprehensive market research.
6. HP TOUCHPAD
The HP touchpad was announced on February 9, 2011, at the webos "think beyond" event held at
the fort mason center in San Francisco alongside the HP veer and HP pre 3.
Initial sales of the device sold 25,000 of 270,000 units, and did not meet hp's expectations,
rapidly becoming overshadowed by the launch of the iPad 2 in march.
On august 16, 2011, it was reported that best buy refused to pay HP for any more touchpad stock.
in Europe, the touchpad was estimated to have sold 12,000 in its first month of release..
7. In Australia, Harvey Norman who was the exclusive retailer sold about 1,200 units in the four
days it was on sale.
Industry commentators suggested that the lack of apps for the platform and lackluster advertising
was hindering sales.
On august 18, Hp announced that it would discontinue all webos devices. HP CTO Shane
Robison noted that the touchpad "was half a generation or a generation behind the iPad and so
that wasn't going to drive volume.”
Some years later, a member of the development team described the device as being made from
"cast-off reject iPad parts.”
Contin…
8. REASONS WHY HP FAILED IN THE MOBILE BUSINESS
1. IT MISJUDGED APPLE
Like far too many other companies in the mobile market, HP failed to realize that apple’s popularity in the
mobile space was not going to slow down anytime soon. The company seemed to believe that after the
iPad 2 stayed on store shelves for a while and the iPhone 5 continued to be delayed, it could capitalize on
impatient would-be apple buyers. But that never happened. Instead, those folks just bought apple
products-and HP lost.
2. IT DIDN’T PLAY THE ANDROID GAME
One of the biggest mistakes HP made was not accepting android. Like it or not, in today’s mobile market,
android is the operating system that every vendor (except for apple and Microsoft) should be using. It’s a
mobile OS that people know and trust, and it has been proven to sell quite well in the mobile space. To
double down on webos was a mistake.
9. Contin…
3. WEBOS WASN’T APPEALING
Webos wasn’t appealing
Webos itself simply wasn’t all that appealing. The operating system lacked enough third-party
applications to attract consumers, and its functionality was simply too different from ios and android
for customers to give it a second look. What’s more, the operating system wasn’t really known outside
of tech circles, putting it at a disadvantage from the beginning.
4. THE TOUCHPAD WAS A MISTAKE
Hp’s touchpad tablet was a mistake from the very beginning. As mentioned, it was running webos,
which already put it at a disadvantage. Combine that with the fact that HP made the device look
awfully iPad-like, complete with a similar design, identical price tag and the same screen size, and it
quickly becomes clear that it didn’t have much of a shot to start with. Devices like the Samsung galaxy
tab 10.1 are doing well because they’re different enough from the iPad 2 to justify a purchase.
10. Contin…
5.HIGH PRICING
Pricing too high with the market leader, iPad starting at $499, HP was foolish to price its touchpad
comparable.
High Costs Electronics analyst firm iSuppli estimated that it cost HP $306.65 to make each Touchpad,
not including the $1.2 billion HP plunked down to acquire Palm and the web OS in the first place.
That’s a big investment to have been made.
6. NO 3G/4G SUPPORT
HP promised that later versions of the device would support 3G and 4G but the first generation
supported only Wi-Fi, a limitation when pitted against other tablets.
11. SAMSUNG GALAXY NOTE 7
The Samsung galaxy note 7 is a discontinued android-based phablet designed, developed, produced
and marketed by Samsung electronics.
Unveiled on 2 august 2016,it was officially released on 19 august 2016 as a successor to the galaxy
note 5.
It is Samsung's first phone with a USB-C connector, and the last phone in the galaxy note series to
have a physical home button. Although it is the sixth main device in the galaxy note series, Samsung
branded its series number as "7" instead of "6" so consumers would not perceive it as being inferior to
the flagship Samsung galaxy S7, and to prevent confusion about the order of release due to the same
release year (2016).
12. Contin…
The galaxy note 7 is an evolution of the galaxy note 5 that inherited hardware components and
improvements from the galaxy S7, including the restoration of expandable storage and IP68 water
resistance, and new features such as a dual-sided curved display, support for high-dynamic-range
(HDR) color, improvements to the bundled stylus and new software features which utilize it, an
iris recognition system, and a USB-C port.
The galaxy note 7 received positive reviews from critics, who praised the quality of its
construction, its HDR support, as well as its streamlined user interface, although it was criticized
for its high price and increasing similarities in overall specifications to the main galaxy S series of
phones
13. FAILURE REASONS
The explosion of the Samsung galaxy note 7 resulted in to recall of the phones .
The specific phones that were overheating were taken for analysis to establish the causes of the
explosion. The techniques employed for the analysis were failure mode and effect analysis
(FMEA). This entails a critical analysis of the entire lifecycle of a product
It analyzes the specifications of the design, operation, and maintenance by establishing the system
functions, identification of the failure modes in the system, and functions which then leads to the
determination of the effects and possible causes . The analysis covers both the software and
hardware functionalities.
14. Contin…
The FMEA is used by engineers in the design stages of a product or posts analysis in the case of
issues arising.
The initial FMEA conducted after the failure was hardware FMEA
This is a straightforward analysis guided by the understanding that mechanical, electronic, and
electrical failures happen due to some issues such as unanticipated stress, overload, and faulty
wiring.
The analysis of the engineers concluded that lithium-ion batteries from one of the suppliers had a
fault. Part of the battery’s inside coiled incorrectly; hence, caused stress to the battery.