When Market Research Fails: 6 Big Brands That Got It Wrong

You might think that big companies like Coca-Cola, Apple, or McDonald’s always know exactly what people want. After all, they spend millions on market research before launching a new product.

But guess what?

Even the biggest brands can get it completely wrong.

In this post, we’ll explore six famous product flops—times when companies misunderstood their customers or ignored small but important details. These stories are more than just funny mistakes—they’re powerful lessons in what not to do in business. Some even led to later success.

☕ 1. Starbucks & Pepsi – Mazagran

In the 1990s, Starbucks and Pepsi teamed up to create a new drink: Mazagran, a cold coffee soda. It sounded exciting at first—but it flopped fast. Why?

Because customers didn’t want fizzy coffee. Market research showed that people were interested in a bottled coffee drink, but they expected something creamy and sweet, like a milkshake—not a soda.

📌 Fun Fact: This failure inspired Starbucks to create the Frappuccino, one of its most successful products ever.

🥤 2. New Coke – Coca-Cola

In 1985, Coca-Cola launched “New Coke” to compete with Pepsi’s sweeter taste. Market tests showed people liked it. But when it replaced the original Coke, consumers were furious.

They missed the old taste—and the emotional connection they had with the brand.

Coca-Cola had made the mistake of testing taste, but not customer loyalty.

✅ Just 79 days later, they brought back the original recipe as “Coca-Cola Classic.”

📱 3. Apple Newton – Apple Inc.

Long before iPhones, Apple released a handheld device called the Newton. It could take notes, store contacts, and even recognize handwriting.

But the tech wasn’t ready—the handwriting feature was glitchy, and the price was high. The public wasn’t impressed.

📌 Takeaway: Apple learned from this and came back stronger with the iPhone years later.

🧃 4. Crystal Pepsi – PepsiCo

Clear soda? Sounds cool, right?

In 1992, Pepsi launched Crystal Pepsi, a caffeine-free, transparent version of cola. It did well at first due to curiosity, but customers soon missed the classic cola flavor and look. Sales dropped.

💡 Lesson: People like innovation—but they also want familiar flavors and brand identity.

🚗 5. Ford Edsel – Ford Motor Company

Ford expected the Edsel to be the next big American car. It was flashy, high-tech, and launched with huge marketing.

But customers didn’t like it. It was too expensive, oddly styled, and released during a recession.

The result? A massive failure.

📌 Lesson: Even with lots of data, timing and consumer mood matter.

🍔 6. Arch Deluxe – McDonald’s

In the 1990s, McDonald’s tried to target adults with a “gourmet” burger: the Arch Deluxe. They spent millions advertising it as a “grown-up” option.

The problem? McDonald’s was known for family-friendly, affordable fast food. Most adults didn’t want to pay more for something they could get cheaper.

✅ Lesson: Know your audience—and don’t try to be something you’re not.

💡 Final Thoughts

Market research is a powerful tool—but only if it’s used wisely. The biggest lessons from these failures?

• Don’t ignore what your customers actually want

• Always test how people feel, not just what they say

• Be open to failure—it might just lead to your next big idea

Like Mazagran gave birth to the Frappuccino, sometimes failure is just step one on the path to success.

📚 Vocabulary to Remember

• Flop – a complete failure

• Market research – the process of studying what customers want

• Loyalty – strong support or emotional connection to a brand or person

• Glitchy – not working correctly; full of small problems

• Curiosity – a desire to learn or try something new

• Consumer mood – how buyers feel or behave at a certain time

• Brand identity – how a company wants people to see them

• Gourmet – high-quality, fancy food

Try using these in a writing or speaking task!

💬 Class or Journal Discussion Questions

• Have you ever tried a product that didn’t meet your expectations? What was it?

• Which of the examples above surprised you the most?

• Do you think all failures are bad—or can failure be part of success?

• What’s something you’d improve about a product you use now?

✏️ Writing Prompt

Choose one of the failed products above. Write 5–7 sentences explaining:

• Why it failed

• What the company learned

• What they could have done differently

💌 Stay Inspired, Stay Ahead!
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