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Recently in my Marketing course, we have been learning about the development of new products. One aspect of this topic is new-product failures. An example that we have discussed in class is the recent failure of the new Samsung Galaxy Note 7. This smartphone has been recalled due to multiple reports of the phone’s batteries overheating and causing the phone to explode.

Image from http://digitalspyuk.cdnds.net/

This weekend, I spent my fall break down in South Carolina. I took two connecting flights each way and on all four flights there were announcements about the new smartphone. The flight attendants told the passengers that if they were in possession of a Samsung Galaxy Note 7 to notify them immediately because they have been banned by the Federal Aviation Administration. Talk about bad publicity.

According to an article in USA Today, the Samsung Galaxy Note 7 is now considered a forbidden hazardous material.

“If an airline representative observes a traveler with the device before boarding a flight, the airline must deny boarding to the passenger until the phone is discarded, the department said. Anyone caught trying to sneak a Note 7 on board could face fines and criminal prosecution. If a flight crew member identifies that a passenger is in possession of the device in flight, the crew member must instruct the passenger to power off the device, not use or charge the device while aboard the aircraft and disable.”

I think that this ban will definitely make things harder for Samsung. The main factor contributing to their product failure is poor product quality, which our textbook defines as the factor that results when a product is not thoroughly tested. If customers are loyal enough, they might stick around until the problem is fixed. Usually the biggest problem is the loss of sales, profits, and market share. The technical problems with the Note 7 will be able to be repaired, but it’s going to be harder for Samsung to rebrand after becoming a “forbidden hazardous material”. That’s an extremely negative association. Also, current Samsung customers who get singled out on flights will probably start to think twice about remaining loyal to the company.

Samsung is definitely going to have to do a lot of damage control. In my opinion, I think that they need to recognize the 7 as a failed product and try again with an even better Galaxy S8.

Sources:

http://blogs-images.forbes.com/cartoonoftheday/files/2016/09/160913Hall.jpg?width=960

http://digitalspyuk.cdnds.net/16/38/980x490/landscape-1474363963-galaxy-note-7-burn.jpg

http://www.usatoday.com/story/news/2016/10/14/dot-bans-samsung-galaxy-note-7-flights/92066322/

Marketing: The Core, Sixth Edition, Roger Kerin, Steven Hartley, William Rudelius. McGraw-Hill: New York, 2016