6 Big Product Flops That Companies Survived

The stock, which had been trading at $45.50 per share as 1996 dawned, was down 12 cents per share at the end of 1996. Still, in 1997 a New York Times article advanced the idea that the company's growth had turned sluggish by the flop. McDonald's is currently priced at about $93 a share.

4.  Product: Earring Magic Ken (a new look for Barbie's boyfriend), 1993

Outcome: Product was discontinued after one year

Investor Outlook: The doll sold well depsite a marketing mess up and the stock more than stood its ground

Barbie has been one of the most enduring dolls since Mattel introduced it in 1959. One of the keys to the success of the toy surely was its adaptability. At first, Barbie was an icon of the conservative times in which it was created. By the late '60s, Barbie and BFF Midge were reflections of the times in mini-skirts and other fashions. Even boyfriend Ken could be seen sporting a Nehru jacket. But not all the attempts to keep the products current worked out as intended.

In 1993, Mattel had created a line of Barbie dolls called Earring Magic. That year, Ken joined the fold. According to all accounts, kids were questioned about what would make Ken "cool." The doll flew off the shelves. But the demographic was not exactly the one Mattel had been aiming at. You see, in his purple leather vest, mesh shirt and chain jewelry, Ken quickly was seen as having come out of the closet, and was nicknamed the "Gay Ken." By the end of the year the doll was recalled and production stopped.

As far as the stock went, investors seemingly made out well. The stock rose from $22 to $25 by the end of 1993 and then split 5:4 in January 1994.

5.  Product: New Coke, 1985

Outcome: Marketing disaster turned around

Investor Outlook: The product tanked but the stock rose

Coca-Cola was the iconic soft drink of the 20^th century, but it was losing ground to archrival Pepsi by the 1980s. The beverage giant figured it had to do something so it set about conducting taste tests of a reformulated version of its flagship product. A sweeter version was the favorite and it was rolled out to great fanfare in April 1985. That's when things spiraled out of control. By July, Coke gave in, announcing that it was bringing back the old recipe. It was henceforth known as Classic Coke, while the updated product was called New Coke, then Coke II. It no longer is sold in the U.S.

All was not lost, however. Coke views the marketing mess as a success, bringing attention to its flagging brand. In fact, Coke has been declared the winner in the Cola Wars, with soft drink sales in 2011 of $28 million, compared to Pepsi's $12 million. The new product was hardly a disaster for investors. In 1985, the stock actually rose from about $57 before the rollout of the new formula to nearly $70 that September. It currently trades at about $38.

Rumors that Coke all along planned to "reintroduce" the original recipe have been denied by the soft drink giant as well as by an investigation by snopes.com.

6.  Product: Ford Pinto, 1971

Outcome: Massive recall, millions paid in lawsuits over deaths

Investor Outlook: The Pinto notwithstanding, Ford was in for a wild ride in the decades that followed

Ford and other American automakers were in a quandary in the late 1960s. Small cars made by foreign companies were gaining favor and they needed to move quickly, too, if they didn't wanted to be left out of that part of the market. American Motors came out with the Gremlin. Ford followed soon after with the Pinto in 1971.

The car proved popular. It was inexpensive at about $2,000 ($11,000 today) and was touted as getting 25 mpg in an era before most people worried about the price of gas. There were some problems reported, like inside door handles breaking too easily, but nothing too bad, at first.

Then came complaints about the car catching fire and exploding when hit from the rear. Lawsuits were filed. The government reported that 27 people had died in such accidents. Others claimed the figure was much higher. An article in Mother Jones magazine in 1977 tipped public opinion against Ford. The article stated that Ford knew the location of the fuel tank was a danger, but calculated it was cheaper not to fix it. Rumors of scores of deaths abounded. Ford discontinued production in 1980.

Later reports claim the position of the fuel tank was standard for the time and the government found no evidence of more than the 27 deaths it reported. A disputed memo seemed to indicate that Ford had calculated the cost of lawsuits vs. the cost of fixing the problem (widely put at $11 per vehicle).

Still Ford faced the prospect of a deluge of lawsuits after a California judge awarded a teenager $6.3 million after he was burned in a crash. There was even a criminal trial accusing Ford of homicide. The carmaker was found not guilty.

Ford, which traded at $53.25 in 1978 when the Pinto was recalled, is currently at about $10.30. The troubles of the Big Three automakers are well known of course. But Ford was the only one that didn't take a taxpayer bailout 2009 and seems to be regaining its footing.

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