Levis Type 1 Jeans
There was not really anything wrong with the jeans themselves, but everything was wrong with the marketing and pricing. Some retailers sold them as high-end jeans for $100, while others sold them for $30. Customers were confused and bought other brands instead. Type 1 flopped and was discontinued in less than two years.
Additional info:
Harvard Business Review - How Levis become cool again
This is the strange commercial for Type 1 jeans: