In April 1985, Coca-Cola unveiled New Coke—a sweeter, jazzier riff on their timeless classic. They spent millions on research, tested it with 200,000 people, and created a big buzz around the launch.
Three months later, it was a disaster. Customers flooded phone lines with complaints, sales dropped, and Pepsi took advantage while Coca-Cola worked to bring back the original. This wasn’t just bad luck. Research from Harvard Business School shows that up to 95% of new products fail. That’s a lot of products that never make it. So, why do so many fail, and how can you succeed? Let’s break down why products flop and how you can avoid those mistakes, whether you’re a startup founder or a small business owner trying your luck.
The Flop Formula: Why launches fail
Product flops follow a pattern. First, there’s poor market research. New Coke assumed that “sweeter” would be better, missing the emotional connection people had with the original—this is a classic example of listening to what you thinkpeople want, rather than what they actually need. The second reason is poor execution: rushed launches, untested products, or focusing too much on fancy features instead of solid quality.
For example, Google Glass had amazing technology but failed because it was clunky, too expensive, and raised privacy concerns. Poor marketing can also sink a good idea—think about Quibi, a 2020 streaming app with $1.75 billion in backing, burned out in six months partly because its short-form pitch didn’t click amid lockdown binge-watching. And finally, there’s stubbornness after launch—ignoring customer feedback and refusing to make changes. For example, Blackberry’s downfall came when it stuck to physical keyboards even as touchscreen phones took over. These aren’t isolated cases—they’re the common reasons for failure.
Trevor Rumble from BioPak kicks things off with this advice: “Start by understanding your customers’ needs.” Guessing won’t work—like when Crystal Pepsi failed in 1992 because people didn’t care about clear soda. Trevor suggests using surveys, chats, and tracking customer purchases. Konstantin Klyagin from Redwerk agrees, saying, “Talk to your customers regularly and ask about their problems.”
For example, Konstantin started QAwerk after clients told him about issues with testing services for years. Daniel Cortezi of BioPak says, “Use the data you already have to make the customer experience better.” Think of a bakery noticing that muffins sell more on weekends and using that info to offer special deals.
Test ‘til it hurts
Rushing is a rookie move. Trevor Rumble talks about creating a strong plan that lets you test and refine your product before going to market. Elliot Cohen from Pebl Payments says, “We tested with a small group first, gathered feedback, and made improvements.” Sharon Williams of Taurus Marketing stresses the importance of constant testing: “The real work starts when you launch.” Her company’s Taurus SHOP took three years to perfect. Testing could have saved Segway from the $5,000 scooter failure. Testing helps you avoid shipping a bad product.
Olivia Jenkins says, “Create a brand story that resonates deeply with people.” Simply listing features, like “our product has 10 settings,” won’t cut it. She says, “Make your brand stand out.” Dollar Shave Club did this in 2012 by selling not just razors, but a fun, relatable message—“Shaving sucks, we’ve got you covered.” On the other hand, Microsoft’s Zune had decent tech but no clear identity, while the iPod’s “music is life” message won people over. Emily Bencsics from Megantic advises creating content that excites people. Repurposing content—like turning a blog post into a TikTok video—could have helped Zune grab attention.
Hype smart, not big
Marketing is key, but it’s not about spending big—it’s about being smart. Elliot Cohen says Pebl’s launch focused on social media, press releases, and partnerships, not a huge budget. Sharon Williams suggests using integrated campaigns that work together—ads, PR, and events that align. Daniel Cortezi says, “Focus on paid search to reach people already interested in your product.” The Ford Edsel in 1958 was overhyped and ugly, but Pebl shows that smart marketing is better than loud marketing.
Adapt or die. Trevor Rumble says, “Have a plan B and be ready to change course.” New Coke failed, but Coca-Cola was quick to bring back the original. Sharon Williams agrees: “Customer feedback after launch helps you adjust.” Elliot Cohen says, “We kept updating Pebl based on feedback.” Fitbit’s early struggles were fixed with customer input, and now they’re a leader in wearables. Lara Barnett from Logicalis advises, “Know when to shift your approach.” Blockbuster stuck to their old ways while Netflix pivoted and succeeded.
Launch like a pro on a budget
You don’t need millions to launch successfully—just focus on what you can afford. Trevor Rumble and Konstantin Klyagin emphasize the importance of knowing your customers. If you can’t afford surveys, try informal chats or quick polls on social media. Ask what frustrates people in your industry. Look at competitors’ reviews to find market gaps. Elliot Cohen and Sharon Williams recommend small-scale testing. Give a product, like handmade soap, to loyal customers and ask for honest feedback. Make changes based on what they say. Use simple videos on your phone to explain your product and get feedback. Olivia Jenkins and Emily Bencsics suggest telling a story about your product, like “Tired of dry skin? This soap’s my grandma’s secret recipe.” Share this story on Instagram or TikTok to get more people interested.
Elliot Cohen and Daniel Cortezi recommend smart promotion. Skip expensive ads and instead engage customers on platforms like X or Facebook groups. Work with other small businesses to cross-promote. Consider testing Google Ads with a small budget, targeting customers who are already looking for what you offer. Be ready to adjust. If your launch doesn’t go as planned, get feedback from your customers and adjust your product or pricing. Always have a backup plan, like offering a lower-priced version.
ALSO READ: Launching new products or services: A step-by-step guide
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95% of new products vanish. Don’t let yours be a ghost story. Here’s how to launch a product that wins and stands out News, Product, Product Launch Dynamic Business
