Products which flopped due to poor Diversification Strategy
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Brands spend years into building their presence and a perception in the mind of consumers. After years of relentless efforts, brands build their own identity. And sometimes, such powerful is their presence that their strength is used for diversification. But there have been occasions where brands have failed where the diversifications have been quite off-color. Here are some examples of brands which have failed due to wrong diversification.
The Coca-Cola Company of Atlanta, is registered in United States since March 27, 1944. Ironically, it was first used as a medicine until businessman Asa Griggs Candle led Coke to iconic heights of the world’s soft drinks market. Its logo was created by Frank Mason Robinson in 1885. Coca Cola Company keeps on re-inventing its products, to keep up with ever changing demands. Thus, it launched an all new recipe in the form of New Coke in 1985. Roberto Goizueta, the then Chairman, said in an interview that the New Coke tastes “smoother, uh, uh, rounder yet, uh, yet bolder…has a more harmonious flavour”.Customers quite liked the flavour initially, but they soon started missing the original Coke. In fact, the company also tried to salvage the drink by changing its name to Coca-Cola II. After immense backlash from their fans, they withdrew the product and went back to the usual ways.The new coke may still be available in Yap & American Samoa.