We want to implement sitecatalyst solution to capture the login of the user as well as login failures. We thought of implementing this using events
event1 - Successful Login (sent from post login page)
event2 - Login Failure
Can you please suggest if this is the best approach to implement this or other better options are there?
From a reporting point of view this is probably the easiest way to track these types of login events. You'll easily be able to see counts for both scenarios.
Alternatively you could set a single event when the users logs in (regardless of success) and then set an eVar with either 'success' or 'failure' which will allow you to segment down the events into these 2 groups. You'll get a combined figure for all login events more easily.
This option may help if you are short on events in your reporting environment.
You can also set an eVar with the error to help understand common issues.