Canadian Marketing Blog

Top Two Branding Blunders

Why oh why do companies fall into these branding traps that wind up costing them a ton of cash for virtually no return or worse yet, actually cost dollars in lost revenue. There are two big branding blunders (I’m sure there are more than that, but these are the ones that immediately come to mind) to be aware of if you are considering rebranding.

1: Fixing what isn’t broken

Change is not always good; there is something to be said for the familiar especially in tumultuous times. Take the “new look” of Tropicana orange juice. A US 35 million dollar blunder. Yes, that’s right, a 35 million dollar blunder (and that’s only the first 2 months not the final tally). Thanks to the new simplified look of Tropicana, consumers mistook them for a "bargain basement” no name brand and walked right on by and purchased a competitor’s orange juice. The Tropicana look was not broken. They were not losing market share. There is something to be said for the comfort of a familiar logo. That orange with the straw sticking out of it and dark green lettering for me represents premium, freshly squeezed OJ and it makes me feel good. And that’s what matters most your customer’s perception. Once you have lost a customer it’s tough to get them back. Good luck on that one Tropicana.

2: Fixing (aka changing) your brand/logo before you fix your product and/or service

We’ve all seen it – a new look, a new logo, an onslaught of advertising – all telling you we’re new, we’re great, come and do business with us. There’s just one problem – outside you’ve changed, you’re wearing a new suit so to speak but inside you’re exactly the same. Now I feel like I’ve been duped, you’re making a promise that you have no intention of delivering on or at least not in any immediate time frame. A certain Telco comes to mind that shall remain nameless. A new CEO comes in, anxious to make his mark and show he’s different, he immediately rebrands. Ahh I’m not quite sure how to tell you this but – you’re wrong – as a customer now I feel betrayed. I know nothing has changed, your product and service offering is status quo. So let me get this right, you’ve spent millions of dollars changing your letterhead, repainting all of your trucks, redoing your web-site and all of your multimedia and yet as far as I’m concerned you haven’t spent a dime to improve your customer service that quite frankly I think sucks. A word to the wise – improve your offering/service first and once you have it right and you’ve tested to make sure it’s right then and only then should you present a new face (aka logo) to the world.

Coca cola is a one hundred and twenty three year old company and its logo hasn’t changed. And by the way, they are still the dominant soft drink worldwide. Perhaps there is something to be said for deciding what you stand for and then delivering on it, consistently year after year. It’s not glamorous but it pays the bills and in fact chugs out a pretty decent profit. And at the end of the day isn’t that why we’re all in business?

Good article though I would have liked to see more than one example cited for each "blunder" as well as examples of companies who have done it right. The Coca-Cola reference was interesting but it seems like the exception rather than the rule. Few companies, especially new companies, have that kind of world-wide recognition and legacy to draw upon. How can newer companies (that aren't Coca-Cola) learn from this?

Also, "loosing" means to loosen something or run loose (like a belt or the hounds). I think the writer meant to use "losing" as in the loss of something.

"Typo" corrected - thanks.

I gave a similar talk at the CMA national conference on brand blunders and they were more popular then the rest of my discussion of what leading brands from Interbrand's list of Best Global Brands are doing.
Often times learning from mistakes is more important than trying to copy Coca-Cola...

While the "Coca cola is a one hundred and twenty three year old company and its logo hasn’t changed" anecdote is a bit of an old chestnut (perhaps see here: http://bit.ly/tBBmF) you're making a valid point.

One of the worst things a brand can do is react (too much, too early) without reason and without consumer consultation. The temptation to chase after every new fad or attempt to co-opt every new trend (especially when it comes to the world of online marketing and SEO) can do far more harm than good to brand loyalty and recognition.

In these times it's challenging to think of new ways to attract customers and draw attention to your brand. It is good to keep in mind that sometimes things aren't broken and that persistence and hard work are what can draw the biggest returns. Another situation to watch out for is changing the product...coke may not have changed their branding, but when the "new Coke" came out in the 1980s it tasted like Pepsi and loyal Coke drinkers were not too happy. Coke backtracked on that one and I'm sure it cost them millions.