Marketing flops: Typology and cases

Table of Contents

1. Introduction

1.1 Relevance

1.2 Scope and objectives

1.3 Methodology

1.4 Structure

2. Typology and overview of marketing flops

2.1 Product flops

2.2 Branding flops

2.3 Pricing flops

2.4 Promotion flops

2.5 Placement flops

2.6 Crisis management flops

2.7 Selected observations

3. Case studies: Reasons for flops and mistakes in decision making

3.1 Coca-Cola Company: New Coke

3.2 Maytag Corporation: Hoover UK

3.3 Source Perrier: Perrier

3.4 Selected observations

4. Conclusion

4.1 Summary

4.2 Limitations and avenues for further research

4.3 Implications

Objectives & Themes

This thesis investigates the typology of marketing failures to understand why major corporate decisions lead to disastrous outcomes rather than expected success. By analyzing 90 cases and conducting in-depth empirical studies, the research explores how flawed decision-making processes, particularly in the initial formulation stages, contribute to marketing flops, and provides insights into how these mistakes could be avoided.

• Typology of marketing flop categories (Product, Branding, Pricing, Promotion, Placement, Crisis Management).
• Application of Nutt’s (1993) formulation process theory to analyze decision-making failures.
• In-depth case analysis of Coca-Cola, Maytag/Hoover UK, and Source Perrier.
• Identification of critical "signals" and interpretation errors in corporate strategy.
• Prevention and recovery strategies for marketing mistakes.

Excerpt from the book

Summary of Chapters

1. Introduction: This chapter establishes the relevance of studying marketing failures and defines the research scope, objectives, and methodology.

2. Typology and overview of marketing flops: This section defines various marketing failure areas and classifies 90 historical cases to identify commonalities and characteristics.

3. Case studies: Reasons for flops and mistakes in decision making: This chapter provides an in-depth analysis of three major corporate cases using the formulation process theory to retrace how flawed decisions occurred.

4. Conclusion: This chapter summarizes the research findings, highlights the importance of understanding customer needs, and offers implications for future managerial practice and academic research.

Keywords

Marketing flops, Marketing failure, Decision making, Formulation process, Brand equity, Consumer research, Product development, Pricing strategy, Crisis management, Brand extension, Typology, Management mistakes, Service recovery, Corporate strategy, Marketing mix.

Frequently Asked Questions

What is the core focus of this thesis?

This thesis examines why major marketing failures, or "flops," occur by developing a typology of failure areas and analyzing the decision-making processes that lead to these corporate mistakes.

What are the primary fields of marketing failure discussed?

The work categorizes failures into six key areas: product, branding, pricing, promotion, placement, and crisis management.

What is the primary objective of this research?

The main goal is to determine how marketing flops can be categorized, identify why companies make wrong decisions, and explore how these mistakes could have been prevented.

Which scientific framework is used for the analysis?

The thesis utilizes Paul C. Nutt’s (1993) framework for describing organizational formulation processes to analyze the decision-making steps taken by companies.

What is covered in the main section?

The main section includes both a broad overview of 90 marketing failures and an in-depth, step-by-step analysis of three specific cases: Coca-Cola, Maytag/Hoover UK, and Source Perrier.

Which keywords best characterize this work?

Key terms include marketing flops, decision-making, brand equity, formulation processes, and customer-oriented management.

Why did Coca-Cola fail with "New Coke" despite extensive research?

Coca-Cola mistakenly interpreted taste as the sole buying criterion and failed to recognize the deep emotional ties and cultural symbolic value consumers placed on the original formula.

What caused the failure of Maytag’s promotional campaign at Hoover UK?

The promotion was too attractive relative to the company's cost structure, leading to an overwhelming, unmanageable customer response that incurred massive financial losses.

What primary lesson can be learned from the Source Perrier contamination crisis?

The case highlights that failing to be transparent with stakeholders and attempting to maintain a brand "myth" in the face of a crisis significantly destroys brand equity and trust.