10 Famous Brand Failures & What We Can Learn From Them

Every successful brand has its moments of growth, but sometimes, even the biggest names falter. Guess what? Even billion-dollar brands aren’t immune to epic face-plants.

From soda that tasted like despair to gadgets that flopped harder than a pancake at a trampoline park, history’s biggest companies have stumbled hard.

But here’s the twist: their failures are our golden tickets. We’re spilling the tea on 10 legendary brand blunders (no shame, just lessons!) and what they teach us about ego, innovation, and listening to the crowd.

Colgate Kitchen Entrees

Remember when Colgate decided to leap in the 1980s and launch a line of frozen meals? We are guessing you probably don’t, and that’s because the products enlisted in the marketing strategies spent most of their lives in obscurity.

The brand released products like frozen lasagna and microwaveable dinners, which starkly contrasted the products the brand associated itself with and further left a baffled consumer base perplexed.

As many foresaw, these products turned out to be misplaced and enjoyed a little monetary undesired recognition in history. As the brand failed to enforce any form of reconciling their enjoyed consumption of lasagne with a world of toothpaste, all notions regarding the product line garnished no further hopes.

Alongside losing monetary gains, Colgate lost due to decades of relying on oral hygiene products and reputation, causing the brand identity crisis and becoming the joke of advanced marketing strategy decisions.

Source: listverse.com

The lesson here is simple: not every brand extension will work. While it’s true that diversification may increase business growth, it can be dangerous when new products are introduced that don’t align with a brand’s identity.

Colgate’s reputation is built on trust and quality in oral care. Attempting to conquer the frozen food aisle was a step too far, as it confused customers and diluted its brand values.

For small businesses, this lesson can prove even more acute. Your brand identity and reputation are the most valuable assets you possess. Expanding into other areas can be exciting, but you shouldn’t forget what customers already trust and love about you.

Expanding into unrelated regions without a strong anchor point risks alienating your audience and eroding trust. Understanding your new audience and maintaining your core brand values are crucial when considering new product lines.

The example of Colgate’s frozen food venture serves as a warning because their slogan should have been, “Just because you can diversify doesn’t mean you should.” Having a strong brand is more important than attempting to reach new heights.

Growth efforts that drift too far away from a brand’s strengths can feel inauthentic. If moving away from brand strengths is done, a business risks everything it has built.

Ford Edsel Marketing Failure

In 1957, Edsel was a complete failure, and with Ford’s introduction, Edsel was set to radicalize the automotive industry. Their design and marketing theories assured Ford, so they promoted it heavily and poured money into it. It was expected to sell as a sophisticated car, which no other automobile at the time could compete with.

Source: volanmedia.com

The reality was a complete change from what was projected. As it was being overhyped, the car was ludicrously priced. As it turned out, Edsel missed the mark in performance, promise, consumer demand, and design.

For Ford, which had already injected hefty mad stacks into it, it turned into one of the worst disasters throughout car history, witnessing millions in losses before being pulled off the market in a few years.

The car bombed not only because of its issues but also served as an example of how dangerous overhyping a product without extensive market evaluation can be. Edsel failed because it never got conducted, nor did it gauge consumer perception or market research.

When granted the opportunity to use Ford’s products, the public’s expectations were entirely different, and there was a bleak perception of Ford’s financial prospects.

The main point is that hype does not equal success. Hype can only get you so far, and a high-profile launch or flashy ad campaign will yield little long-lasting hope. Knowing the audience is crucial for small businesses with limited resources.

Researching the market, validating demand, and understanding customer needs is vital before launching a new product or service. It’s prudent to never make assumptions about what people want.

If you can prove a concept with surveys, focus groups, or even pilot launches, then you will be able to measure actual interest. Succeeding in proving demand lowers the chances of costly mistakes and ultimately allows for tailoring to the audiences.

Hoverboards

The year 2015 saw the inception of Hoverboards, quickly gaining popularity among technology lovers, children, and adults. Hoverboards garnered immense media attention during the holiday season as the self-balancing scooter.

Hoverboards became the epitome of self-balancing scooters that people expected to buy, and everyone waited in lines to try and purchase one, riding the wave of the hoverboard craze.

Source: blog.wisecrowd.domains

Unfortunately, things went south real quick. From self-learning scooters, consumers were treated to the aftermath of potential battery failures, self-combustion, and, in some cases, complete detonation.

It soon led to the burning of hoverboards in stores, forcing shops to shut down public sales and thus making hoverboards a figure of public worry. These safety issues resulted in swift negative reactions from the public, who were concerned about the risks associated with these devices.

The darlings of the modern era turned super trendy but were bound to face adversity at some point and hovered on the border of being questioned on their skillset.

These issues showcased the need to strengthen the design, prioritizing safety and a critical eye towards the framework sans base principles of self-combustion and spectacle that enveloped these modern pom-popped scooters.

Achieve the people while ensuring they maintain self-balancing structures that could combust at any time. The main ideas were shakable self-balancing products, whereas reserves shaming raises the question: What crosses the line?

Unfiltered and without who opened Pandora’s box on no-holds-bar perspectives, adverse restrictions don’t hammer marks of safety, and building ridges of being deemed unfit for consumer interaction calls for full-throttle fury.

The highlighted section speaks for itself. This presents the dire need to create boundaries aimed at hoverboard makers like the EU. Set limits to safety on tackle and roll techniques without altering the brand image, mingling technologies and creativity, and the creations’ primary exploration without red lights.

MoviePass

The entertainment world remembered and embraced MoviePass when it offered unlimited movies for only $10 a month. It seemed like the best deal ever for movie lovers, who could watch their desired films without limit for a fraction of the price. The company's rapidly increasing subscriber count showcased the immense popularity of its service, and the advertisement blitz MoviePass was keen on.

Source: youtube

However, things weren't as rosy as they seemed. The MoviePass subscription-induced thrill turned out to be a not-so-subtle, self-destructing hazard. A few months ago, the subscription model was predictably deep in the watery business bankruptcy, and the features couldn't pay for the access.

The year following the subscription boom, we quickly began to see financial losses, escalating service disruptions, and a substantial decrease in user activity as the brand collapsed under the strain of its failing strategy.

A constant focus on sustainability fosters real long-term success. Regarding productivity and profit-generating levels, avoid the "growth at all costs" mentality. Boundless expansion with no safety net can be deadly for a small business, and a growth model that is not well thought out can quickly lead to disaster.

Like everything in life, moderation is key. Design a business strategy. It must withstand the test of time and, hence, should be sustainable, not just scalable. Everlasting success needs to be built step by step while ensuring financial security comes first. This shields us from the risks of uncontrolled expansion and prepares us for a safer, more durable tomorrow.

Sears

Sears was once considered a leading retailer in America, but the changes in consumer behavior and the rise in e-commerce made it unable to cope. For decades, Sears reigned unchanged, spearheading the American shopping culture as the one-stop shop for all appliances and clothes.

However, with the tremendous growth of online shopping and investments in e-commerce by Amazon, Walmart, and Target, Sears failed to keep up with the modernization of their digital presence.

Source: retailmenot.com

Their websites and shopping platforms opted for a more outdated infrastructure and did not try to meet the customer expectations of having an integrated shopping experience.

Their physical stores were also not updated with contemporary trends, making them unappealing to purchase from. This stagnation, coupled with poorly maintained online platforms, led to a depletion in customer loyalty and plummeting sales, which eventually led to them filing for bankruptcy in 2018.

With Sears's situation, continuous innovation and investment are needed, especially in times of advanced technology. With various retailers today, one cannot solely rely on a historical legacy or business model.

As a business, it is essential that you optimize your website, improve the user experience for every interaction, and customize services per clients' needs and preferences. The absence of an e-commerce platform paired with poor in-store service makes a business die hard in this digital age market.

The retail industry is constantly evolving, with updates emerging daily — if businesses do not keep up, they will fall behind quickly. The decline of Sears teaches us the risks of having passive attitudes regarding competition and how important it is to continue innovating to keep the business viable.

Google+

In 2011, the tech giant Google initiated a social media project dubbed Google+ to compete with Facebook. Many believed that using Google’s massive resources, industry knowledge, and brand reputation would allow Google+ to challenge Facebook head-on. Unfortunately, the platform mainly was unable to draw in users. It did not offer compelling incentives to change from Facebook or present itself as unique.

Source: pinterest

Even with multiple redesigns and integration with Gmail and YouTube, Google+ was unable to retain users. Despite being funded by one of the largest tech companies, the platform never reached the level of engagement or popularity as its rivals. Google+ was once touted as a revolutionary platform but has since slowly faded away before being completely shut down in 2019.

This is an example where we can learn something new. Success across all branches of technology is not guaranteed to go hand in hand. Google’s specialization in search engines and emails did not allow the company to succeed in social media. To successfully launch a product, it is essential to understand market conditions, customer behavior, and competition.

The most important steps are addressing gaps in the marketplace and outlining a compelling reason to buy. Simply adding a product to an already existing ecosystem does not work. Users need a strong reason to switch.

Innovations and ambitions alone have never guaranteed success, which is why the story of Google+ still reminds us. Alongside these features, planning, research, understanding the competitive landscape, and, most importantly, the users’ needs are crucial.

Blackberry

BlackBerry used to have highly dedicated customers, but that devotion was put on hold when the company suffered major service disruptions. An internal power failure crippled access to email, messaging, and internet services, which severely tarnished BlackBerry’s reputation as a reliable device.

Regardless of the support that BlackBerry was lingering on, the company’s self-destructive choices indicated that it could not fulfill promises that formed the essence of its appeal.

Source: pinterest

The task was more straightforward and complex simultaneously: BlackBerry had to prove it had something worth competing with, be it the operating system, service, or its legendary keyboard. After all, if Apple redefined the standard of innovation, what would make BlackBerry stand out?

Blackberry had to assure dependability and rebuild trust to recover from the damage. Loyal customers had left because they were unreliable, so waiting wouldn’t turn back customers.

They had to “fix” issues in “now,” remove the word “doomsday” from the plan, and set and communicate clear, achievable milestones aimed at addressing problems. Trust would only be restored if they embraced imperfection with: “This is how we will guarantee reliability.”

BlackBerry 10 tried to rectify those problems. The new operating system promised an updated feature set, including a faster browser. While things did improve, the situation did not get better. The harm was done.

The brand continued to lose ground to increasing competition. BlackBerry 10 did move the needle, but not enough to fix the brand’s position. It failed to provide an uninterrupted value on reliability and innovation. It succumbed to the harsh reality of a market that had moved on.

Bud Light

It first captured headlines when it aired a Super Bowl advertisement promoting its new high-alcohol beer, Bud Light Platinum. Shortly after, consumers were familiarized with other versions like Bud Light Lime-a-Rita, and Bud Light Golden Wheat was quietly sidelined. The flood of new products, which all differed from each other, left customers perplexed as to what Bud Light stood for.

Source: spiritsunlimited.com

The brand’s identity started to dissolve. The myriad of flavor, style, and strength options turned the simple task of understanding the brand’s core message into a branding maze, compromising consumer’s decisiveness and eroding brand loyalty.

When a business with a strong pre-defined identity overstretches itself, it can lose its value proposition and identity. Take Bud Light, for instance. In attempting to cater to virtually everyone, they created an assortment of products that bombarded their customers with choices and left them confused as to what they actually stood for.

The brand, once touted for being a crisp, refreshing beer, was now overpowered by the myriad of options that further deviated from the core vision, creating immense distrust and disloyalty.

Anheuser-Busch expanded the Bud Light line to recharge its sales, which, as expected, came with its own set of challenges. Yes, new options and Bud Light’s variants might reach different consumers, but there is an enormous risk of oversaturating the market to the detriment of the brand image.

Bud Light must consider other approaches that allow meaningful expansion. Rather than attaching the Bud Light name to every spin-off, Bud Light could have fostered distinct brands for each product. Accomplishing this would allow Bud Light to reap the benefits of market expansion without being tarnished by the new policies.

The most important lesson learned: although significant, innovation fails when there is excessive diversification for better reach on the brand’s goodwill. In today’s competitive environment, it is glaringly apparent that having a singular and strong, consistent stance works wonders in the long run.

Kodak

Kodak was once the indisputable ruler of film photography. Every household had one of its iconic yellow boxes. However, Kodak's downward spiral began upon the invention of digital technology. Kodak was the first company to invent a digital camera, but they hesitated because they feared their profit-yielding film business would suffer.

Source: behance.net

Class A film competitors like Canon, Sony, and Nikon seized Kodak's digital technology opportunity, leading to a complete loss of market and consumer trust. In stark contrast to the now Guinness World Record bankrupt innovator, consumers switched to owning portable phones equipped with high-quality cameras. Ultimately, Kodak fell into bankruptcy in 2012.

Kodak's story serves as a lesson for companies who have reached peak market: do not support outdated business models. The consequences are bound to be catastrophic. Businesses across all sectors must embrace innovation, even if it means loosening their grip on their pre-existing idea of success.

Allow companies to hyper-focus on staying relevant to industry technology breakthroughs, claiming obsolete translates to dormant entities. Business portfolios must undergo constant self-evaluation and change to meet trends set forth by unseen customer demands. Following the Kodak case study, it is evident that innovation is required and cannot be disregarded.

Toys "R" Us

Most business experts would pinpoint Toys “R” Us as a prime example of a company that heavily miscalculated its potential. Once towering over its competition in the toy industry, its inability to adjust to new changes will mark the reason for its downfall.

Source: en.m.wikipedia.org

Toys “R” Us used to own massive stores filled with the wonderful world of toys. Children fondly remember their childhood trips to Toys “R” Us with their parents. The booming ecommerce market and their old-fashioned store model severely limited Toys “R” Us” market growth. In 2017, the company declared bankruptcy.

The recent downfall of Toys “R” Us is a prime example of how adopting modern changes directly correlates to reaping the benefits of today’s society. Focusing solely on physical stores will hinder competition and growth in the digital age.

In standalone store models, customers are not able to receive the speed, personalization, and ease of access that would entice them to shop.

The golden rule stands: If you cannot change with the conditions, you will be left behind. Bridging the gap between the digital and physical infrastructure allows growth for all.

This leaves Toys “R” Us unrestrained while forcing businesses that refuse to embrace modern changes to rethink their importance in the market. Making a major change, such as integrating e-commerce, could have potentially saved Toys “R” Us from its downfall.

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Conclusion

The downfalls of famous brands showcase critical insights into innovations, adaptability, and maintaining a relationship with consumers. It is imperative that companies change with the times — adopting new technologies and strategies — because losing relevance is a business death sentence.

These lessons remind us that winning is more than holding on to the status quo. A brand must be flexible enough to shift, try new things, and innovate. By studying these failures, brands will be better prepared to face the challenges of the current marketplace and achieve sustained growth. The key takeaway is that understanding and learning from these failures is essential for brands to remain authentic, consistent, and in tune with their audience.