CEO Blunders: Five Product Strategies That Failed Spectacularly
CEOs play a big role in a company’s success or failure, especially when it comes to product strategies. Some CEOs have made bad decisions that led to major failures. Here are five examples of bad product strategies and what we can learn from them.
1. New Coke: A Big Mistake with Customer Loyalty
In 1985, Coca-Cola’s CEO Roberto Goizueta changed the recipe of Coca-Cola, creating “New Coke.” The goal was to compete with Pepsi, but it turned into a disaster. Customers loved the old Coke and were very upset with the change. The company had to bring back the original formula quickly, calling it “Coca-Cola Classic.”
Takeaways:
- Always understand how much customers love your product.
- Changing a beloved product can upset loyal customers.
- Listen to customer feedback before making big changes.
Detailed Account
In the 1980s, Coca-Cola was facing stiff competition from Pepsi, particularly with younger consumers. Pepsi’s aggressive marketing and sweeter taste profile were winning over more drinkers, and Coca-Cola’s market share was under threat. In response, Coca-Cola’s CEO Roberto Goizueta decided to reformulate the beloved drink. This was…
