Bringing a product to market is always a gamble, but some bets don’t just miss the mark — they fall completely flat. While there’s no surefire formula for success, one critical factor stands out: understanding the cultural context in which your product will live. Without it, even the biggest brands can face spectacular failures. Here are three notable consumer packaged goods (CPG) gambles that flopped, and how a better grasp of culture could have saved them.
1. Pepsi A.M.
Back in the 1980s, Pepsi decided to tap into the breakfast beverage market with Pepsi A.M., a soda specifically marketed as a morning drink. The logic seemed simple: Americans loved soda and needed caffeine to kickstart their day. Why not combine the two?
Why It Flopped:
Culturally, breakfast is a deeply ingrained ritual for many people. Coffee and juice have long been the go-to morning drinks, tied to tradition and perceived health benefits. Pepsi ignored this cultural attachment and assumed that caffeine content alone would sway consumers. Instead, people recoiled at the idea of pairing their cereal with soda.
The Missed Cultural Insight:
Had Pepsi considered the emotional and cultural significance of breakfast routines, they might have realized that challenging such long-standing habits would require more than just caffeine content. A deeper dive into consumer behavior could have revealed the need to position the product differently — or avoid it altogether.
Mondelez understood culture better:
Mondelez International successfully launched Belvita Breakfast Biscuits by addressing the need for convenient, on-the-go breakfast options that align with modern lifestyles. These biscuits targeted busy consumers seeking a nutritious breakfast that could be eaten quickly. The brand emphasized the cultural trend toward health-consciousness and portable meals, positioning itself as both wholesome and practical.
2. Colgate Kitchen Entrees
Colgate, the dental care brand, made a puzzling decision in the 1980s to launch a line of frozen dinners. The idea was to expand its presence beyond toothpaste and dental products. Instead, it left consumers scratching their heads.
Why it flopped:
Colgate’s strong association with oral hygiene made the leap to food feel unnatural, even unsettling. Consumers couldn’t reconcile the mental image of toothpaste with the taste of lasagna or chicken entrées. As a result, the product tanked almost immediately.
The missed cultural insight:
Cultural understanding isn’t just about identifying what people want; it’s also about recognizing the limitations of your brand’s identity. Colgate failed to appreciate that its image was too tightly tied to dental health to branch into food. A cultural audit could have shown how out of sync this move was with consumer perceptions.
Dyson understood their cultural perception better:
While Dyson is traditionally known for vacuum cleaners, the brand leveraged its identity as a technology and innovation leader to expand into the hand dryer market. The Airblade succeeded because it stayed true to Dyson’s focus on engineering, efficiency, and design, aligning seamlessly with consumer expectations for the brand.
3. Wow! Chips
In the late 1990s, Frito-Lay launched “Wow! Chips,” a line of fat-free potato chips made with olestra, a fat substitute. The product promised indulgence without the guilt but quickly became infamous for its side effects, including gastrointestinal distress.
Why It Flopped:
While the idea of guilt-free snacking was appealing, the cultural trend toward transparency in food meant consumers were unwilling to overlook the unpleasant side effects. The negative press about “anal leakage” (a warning required on the packaging) overshadowed any benefits.
The Missed Cultural Insight:
Frito-Lay underestimated how much health-conscious consumers value products that balance benefits with safety and transparency. A better understanding of cultural attitudes toward health and trust in food products could have prompted a different strategy.
Halo Top understood health-conscious consumers better:
Launched in 2012, Halo Top appealed to health-conscious consumers with low-calorie, high-protein ice cream that didn’t sacrifice taste. It tapped into the demand for guilt-free indulgence, offering transparency and a balanced nutritional profile that aligned with wellness trends like macro counting and protein-rich diets.
Wrapping it Up
These three examples highlight a common thread: cultural disconnects can derail even the most well-resourced product launches. Pepsi A.M., Colgate Kitchen Entrees, and Wow! Chips all failed to account for the cultural and emotional factors driving consumer behavior. For brands, the lesson is clear: understanding the cultural context isn’t optional — it’s essential.