All sizes of companies make mistakes, but you can learn from them.
Whether it’s the A&W 1/3lb burger debacle in the 80’s due to a lack of market research beforehand or Nivea’s ‘White is Purity’ campaign, we can all learn from the benefits of market research and just taking a step back to think.
You don’t need to pay a marketing research firm to do market research. Ask people. Ask your customers. Reaching people and customers has never been easier than it is right now, just make sure you are targeting correctly for your needs. Need a teens opinions? Don’t post on Facebook. Need Grandparents opinions? Don’t ask on Instagram or Snapchat. Sounds simple but too often wrong channels are used.
In case you don’t know, A&W lost ALOT of money with their “Third is the Word” campaign. They were competing against McDonald’s Quarter Pounder. A&W priced their third pounder and the same price as McDonald’s quarter pounder but sales we’re happening. So, they hired a market research firm. The firm did a simple focus group to find out why the public wasn’t buying the larger burger at the same price.
Can you guess why? Because people didn’t understand fractions. That’s right. They thought 1/3rd was smaller than 1/4.
Not only could A&W have prevented the loss by doing a small focus group, but they would’ve know how to advertise it from the beginning.
As far as Nivea’s ‘White is Purity’ campaign, there isn’t really much to say. With all marketing, you have to think in the perspective of not only your customer, but the general public.