It is said that “There are no mistakes, no coincidences. All events are blessings given to us to learn from”. So true. Big corporate houses and MNCs make huge mistakes that sometimes led to the downfall of the product or sometimes even the organization. Being a startup entrepreneur, one gets a chance to unlearn from these acts and set a chance for the survival.
Edsel from Ford Motor Company has become a synonym with failure. It was introduced with considerable publicity and also promoted by a top-rated television special, The Edsel Show, but failed due to over branding. Edsel failed to standout to the public expectations. Being a startup, it is not important to focus more on making your brand appealing, rather it is to make the product or services according to the need of the market. With cutthroat competition, the products or services available in the market has become par with each other, so it is important to create a distinctive factor rather than over branding your product.
Pre Announcement Of Launch
A company pre-announces a new product that ends up being delayed and sales of the current product suffer as buyers hold off purchasing while waiting for the new release. One good example is Apple. The first iPhone was shown off six months ahead of general availability. In such cases, the companies need to suffer from Osborne effect that occurs when the pre-announcement is made either unaware of the risks involved or when the timing is misjudged.
“A day that will live in marketing infamy”, is what Coca-Cola quotes for its attempt to change its classic recipe. This backfired the company and the confidence on the product and their strategy turned out to be over confidence and the consumer torment likes of which no business has ever seen. According to Roberto Goizueta, the then Chairman and CEO of the company, they set out to change the dynamics of sugar colas in the U.S., and did exactly that – albeit not in the way they had planned.
For a startup, that has very few opportunities in terms of penny to experiment with, they should be confident enough on the actions that they take on and should follow the scheduled plans. Change is the fact of life, and no stubborn will live for long. Accept changes to the plans when and where needed and let the others involved know about it.