The Worst Product Flops Of 2011

[dales]

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The Worst Product Flops of 2011

By Charles B. Stockdale | 24/7 Wall St – Tue, Dec 27, 2011 1:43 PM EST.. .
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A number of incredible new products were launched this year. Apple (AAPL) introduced the iPhone 4S — a phone with voice command — and Boeing’s (BA) 787 Dreamliner — a fuel-efficient jet built of carbon composite — finally had its first commercial flight. But not all products and services launched this year did well. Some failed miserably. 24/7 Wall St. looked at the biggest product launches of 2011 in order to identify the worst of the lot.

Products generally fail because they are either inferior versions of already successful products or they have little to no demand. Research In Motion’s (RIMM) PlayBook is the greatest example of the former. There was no room for a poorly designed tablet in a market dominated by the upmarket iPad and its inexpensive cousin Kindle Fire. The Playbook was widely panned. RIM publicly blamed its weak sales on competitive shifts in the tablet market, referring to the release of Kindle Fire.

Many companies also often fail to understand consumer sentiment and, as a result, do not accurately estimate demand for the product. When Netflix (NFLX) announced it would spin off its DVD-by-mail service in the form of a new service called Qwikster, customers were outraged. Nobody wanted the new site and nobody wanted to pay extra money for it. As a result, it failed before it even got off the ground. The Qwikster blunder ended up costing Netflix many customers.

These are the worst products of the year.

1. Ashley Push-Up Triangle
Company: Abercrombie & Fitch

While no stranger to controversy, Abercrombie & Fitch (ANF) seemed to have crossed a line this time. In March, 2011, the retailer unveiled its spring line for Abercrombie Kids, a division targeting children ages 8 to 14. Included in the line was the “Ashley” Push-Up Triangle, a bikini top with padding. The launch prompted a violent response from parent groups. Several child development experts also criticized the top because it sexualized young girls. At first, Abercrombie tried to address the concerns by reclassifying the top as padded and saying it was not intended for very young girls. It stated on Facebook: “We’ve re-categorized the Ashley swimsuit as padded. We agree with those who say it is best ‘suited’ for girls age 12 and older.” But while the bottoms are still available, the bikini top is no longer featured on the company’s website.

2. Qwikster
Company: Netflix

In September 2011, Netflix (NFLX) announced that it would be separating its online streaming service and its DVD mail service. Streaming was going to continue under the Netflix brand, while DVD-by-mail was going to operate under a new website called Qwikster. The change and the accompanying increase in prices outraged customers, leading the company to kill off Qwikster before it was even launched. CEO Reed Hastings announced this decision in a blog post on the company’s website in which he began, “I messed up. I owe everyone an explanation.” The blog post was mobbed with more than 27,000 comments from angry customers. The ordeal cost the company approximately 800,000 customers.

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3. Volt
Company: General Motors

GM (GM) was originally so excited about the Volt that the company had announced in January it was speeding up its roll-out by six months. But by November the excitement had fizzled out. Larry Nitz, GM’s executive director for vehicle electrification told Reuters, “It’s naive to think that the world is going to switch tomorrow to EVs [electric vehicles].” Indeed, sales for the vehicle have been consistently low. Only 125 models were sold in July 2011. This was after GM spokeswoman Michelle Bunker was quoted as saying that the Volt was “virtually sold out” due to its popularity — a statement later shown to be misguided. Adding insult to injury, Chevy Volts are under investigation for fires involving the cars’ lithium-ion batteries. For concerned Volt owners, GM has offered free loaner cars.

Another dog from "Government Motors". I shutter to think that in addition to federal tax credits, how much each of thes pud-mobiles will cost the US Taxpayer with the gubmint bailout of GM. Interesting how the Nissan Leaf has eaten the Volt's breakfast right out of the starting gate.

4. HTC Status (Facebook Phone)
Company: AT&T/HTC

In June of this year, AT&T (T) announced the HTC Status. The Status was the first, and likely the last, smartphone with a dedicated Facebook share button. At the time of its launch, AT&T hoped it would be incredibly popular among Facebook users. “We can’t wait to put the HTC Status in the hands of our young customers who will waste no time tapping into Facebook to update their friends,” said AT&T Senior VP of Devices, AT&T Mobility and Consumer Markets Jeff Bradley in a statement. But sales were significantly lower than the company had originally expected, and rumors that the phone would be discontinued quickly spread. Given the ease with which users can access Facebook on other smartphones, the case for owning the Status was not very strong. Despite its low sales, AT&T has defended its product, stating, “The HTC Status is a great product and our plans for it to be part of our portfolio haven’t changed.”

5. PlayBook
Company: Research In Motion

The PlayBook was one of the most anticipated consumer electronic products of 2011 and “one of RIM’s most important roll-outs,” as The Wall Street Journal put it. It was the company’s first attempt at competing with Apple in the tablet space. Leveraging the success of the BlackBerry, many hoped it would be the businessman’s answer to the iPad. Unfortunately, the BlackBerry App World had few well-regarded apps, critical to compete with the iPad and Apple’s App Store. Following poor sales, RIM (RIMM) lowered its sales target for the second quarter of 2011 to one-third of what it had been originally, according to research firm DigiTimes. In a statement, RIM blamed the poor sales on “several factors, including recent shifts in the competitive dynamics of the tablet market,” by which it was referring to the popular Kindle Fire. The company attempted to get its product off the ground with aggressive promotions, which caused it to lose $485 million in discounts on the tablet in the third quarter.

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6. Fiat 500
Company: Fiat

This year, Fiat released its new 500 — a three door car that is under 12 ft. long. The car was expected to be a big seller, rivaling BMW’s Mini. Even before the car’s launch, however, detractors were predicting failure. Alan Mulally, CEO of Ford (NYSE: F), stated in Panorama magazine, “I do not see a large market in the U.S.A. for a smaller car than the Fiesta. Those that tried failed.” He was right. According to online magazine DailyTech, “Fiat expected to sell 50,000 500s during 2011 in North America. Through the first seven months of 2011, Fiat sold fewer than 12,000.” Sales were so poor that Chrysler Group, which manages the Fiat brand in the United States, ousted U.S. chief Laura Soave this past November.

Not surprising. The car is overpriced for the performance delivered. There is only so much market share for a "niche car" and this market was saturated 6 months after product launch.

7. Mars Needs Moms
Company: Disney

Following the release of Avatar in 2009, Hollywood had a new cash cow in the form of 3-D films. This all changed with the release of director Simon Wells’s Mars Needs Moms — a flop of epic proportions. Disney (DIS), of course, was expecting another hit. The film cost $175 million to make. In its opening weekend it brought in just $6.9 million. According to movie data website The Numbers, Mars Needs Moms lost an estimated $130 million in worldwide gross sales, the biggest money loser of all time. Journalist Brooks Barnes wrote in the New York Times, “In the movie business, sometimes a flop is just a flop. Then there are misses so disastrous that they send signals to broad swaths of Hollywood.” Mars Needs Moms signaled that the market has become saturated and that digitally animated family films are not the sure thing they once were.



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[dgs49]

The Fiat 500 was the one that perplexed me. This is a car that makes great sense in Italy, but no sense in the U.S., where they have to share the road with so many 2-ton-plus vehicles. Obviously a "chick" car, most of the comments I've heard have revolved around how awful it would be to have a collision in one. Hell, hitting a deer in one of these (a totally unavoidable accident in most cases) would be life threatening.

And in this area, some very reputable dealers have bought a Fiat franchise. I hope they can come up with other cars in the future that are more attractive. Thankfully, most of the people (like me) who remember when imported Fiats were made of compressed rust are no longer in the market.

How many of you know where the name comes from? It certainly doesn't sound like an Italian name, does it?

Fattoria Italiana Automobili Torino. F.I.A.T.
Italian Car Factory - Turin.

[Crackpot]

Actually it has fairly good crash test ratings (especially compared to the Smart)

[Scooter]

How many of you know where the name comes from? It certainly doesn't sound like an Italian name, does it?

Fattoria Italiana Automobili Torino. F.I.A.T.
Italian Car Factory - Turin.

As in so many other things, Dave is. of course, dead wrong on this.

Unless, of course, he is claiming that Fiat breeds pigs in addition to making automobiles

(hint - beware of false cognates)

[Joe Guy]

Fattoria?

I thought dgs was going to claim it was Fix It Again Tony.

[Lord Jim]

7. Mars Needs Moms
Company: Disney

Has there ever been a successful movie with the word "Mars" or "Martians" in the title?

If you're a film producer and somebody hands you a script with either of those two words in the title, you might want to think again....

[Joe Guy]

Mars Attacks was a great movie.

[Lord Jim]

I thought about that one Joe...

I agree it's a very funny movie, (especially if you like the whole sci-fi B movie genre, which I'm a big fan of) but it was a commercial flop:

Costing around $100 million, the film only pulled in $9.38 million on its opening weekend.

http://blog.koldcast.tv/2011/koldcast-n ... -tv-shows/

[quaddriver]

Actually it has fairly good crash test ratings (especially compared to the Smart)

but, crash test results are only applicable in a 'mirrored crash' (either into a fixed object, like the chrysler building, or into a like-sized - within 500lbs - vehicle.)

the smart car, the 500, are in sparse company. (to be fair, designers do not envision the smart car being used on the highway)

[Crackpot]

a 35 mph barrier is a 35 mph barrier. the smart car is a 2 star vehicle in a world where 3 stars are the accepted norm. Not to mention it gets shit mileage compared to evrything else in it's class.

[quaddriver]

a 35 mph barrier is a 35 mph barrier. the smart car is a 2 star vehicle in a world where 3 stars are the accepted norm. Not to mention it gets shit mileage compared to evrything else in it's class.

true, but a smart car vs, say, my jetta which weighs almost twice as much (and has 5 stars) would be a disaster for the smart person in the smart car...

yeah, 38mpg....

in fact the smarts city/hwy numbers are lower than that of my J. and I haul 3x the stuff, faster.

but dont worry, a hybrid version for $35K is coming out.....

[Liberty1]

or into a like-sized - within 500lbs - vehicle

Which is why, whatever the results are for these tiny vehicles, the crash test results are meaningless in the US. I'd put my 4Runner up against either one anyday and come out much more alive than the other driver.


I've never understood why anyone would by a Smart Car, they do get poor mileage, unbeleivably poor for their size.

Anytime we see one, my wife says, "Stupid Car, Stupid Car".

[Crackpot]

They rode in on a wave of perception of good gas milage in a world dominated by SUVs. Crash tests are certainly not meaningless You just have to know How to read them. Most accidents take place within the boundaries of the tests Beyond that is a small percentage made up of people largely doing something stupid

[Scooter]

In crowded cities, the ability to manoever them through congested traffic and squeeze them into tight parking spots is also a selling point.

[Crackpot]

But they still don't perform all that better (if at all) than anything else in it's class.

[Joe Guy]

But they still don't perform all that better (if at all) than anything else in it's class.

What else is in its class?

It seems to be somewhere in between a subcompact and microcar.

[Crackpot]

Subcompact

cars like the MINI, Fiesta, Aveo, most Kias etc. Heck you can move up a couple Size categories and still beat the Smart in most areas.

[Rick]

You mean there's something out there that didn't outclass the Aveo?

It must be a real piece of Marmite (my new euphemism)...

[dgs49]

My theory on cars is: There has to be a reason to buy it.

Just about any car that is on the market for more than a few years has one or a combination of one or two reasons to buy it. Volvos are safe, and now they are fairly stylish and comfortable. Camry's are bland, but they are damned efficient (oddly, more so than EPA says), don't cost much, and they last forever. Camaro's are stylish and fast. Etc.

But there is no reason to buy a Fiat 500. It is ugly, slow, not very economical, and profoundly unsafe. The handling is even marginal. For the same money you can buy a dozen other cars that are just as fuel efficient, just as cheap, faster, look better, and are safer. The best thing you can say about it is that the front seat passenger room is better than one would expect. Rather like being "the prettiest fat girl at the dance."

Like I said before, it makes a bit of sense for urban driving in Italy, where its small size is an advantage, but it just makes no sense in the U.S.

[rubato]

My carpool partner bought a Mini about 18 months ago and went nutz the first time we saw a Fiat 500 on the freeway; roughly a year ago. She LOVES the way they look and they are very popular with a lot of women. I have to admit that compared to cars in that price, weight, and MPG, class it is very nicely drawn. We saw a number of them in England and Belgium last year along with a range of other smaller cars which we can't buy here.

Performance, MPG, handling, price, weight, and &c are about the same as most others in that group. It's a 15,000$ car which can be optioned-up a bit more.

If we really care about reducing imports and improving the balance of trade then it starts with oil, which is more than 1/2 of all imports, and not "cheap shit from China". The easiest, best, and fastest way to reduce oil imports is to reduce the avg weight of vehicles.



yrs,
rubato