How Pepsi, Intel, McDonald's messed up their branding strategy: Brand Failures
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Transcript of How Pepsi, Intel, McDonald's messed up their branding strategy: Brand Failures
“
“A brand for a company is like a reputation for
a person. You earn reputation by trying to do
hard things well.”
- Jeff Bezos
A word or wordsA color
combinationA shape
increasing sales and
ensuring growth since the dawn
of capitalism.
Brand identity has been the
single most
important factor for
was developed to
products
from failure.
public anxious
BrandsSaved the
day!
Does that mean brands never fail?
Absolutely Not!
Things are no more like back in the 19th
century….Today, in the 21st
century, the
picture is totally different.
in trouble.of their own success.
If a
pro
du
ct
,it’s the brand
that’s at fault.
In brief
It is
an
Way to use
to
sell.
But when
it costs a lot.
Brand Failures
But why
do brands
fail?
Let’s have a look
on some brand
failures
PepsiIn Pursuit of Purity
Pepsi took “Crystal Pepsi” in market in 1992
“Crystal Pepsi” failed and
“Crystal” from Pepsi came in
1994
The situation got worse than the
predecessor
Beside that, Pepsi had problem with its
identity . Its logo had to face the challenge of differentiating Pepsi
from coca cola with its poor color and style for
a long time.
AfterB
ac
kT
o B
ac
kPepsi finally
admitted defeat
and scratched
off the idea of
“clear cola”.
However, the idea
of “Presenting
clear and pure”
helped Pepsi to
bring out “
Aquafina”, which
was, and still is a
satisfactory
product.
As for the logo problem,Recently, has sacrificed
red for mainly blue to create a
stronger
distinction between the two
leading brands. Now Coca-Cola
equals red and
Pepsi equals blue.
If you spot a hole in the
market, it doesn’t mean that
you should fill it. Just
because clear cola didn’t
exist, it didn’t mean it had to
be invented.
Crystal failed once, but
Pepsi still believed
the world was crying out
for a clear cola. The
second version fared even
worse than the first.
Differentiate yourself from
your main competitor. For
any business, it is
important.
Intel’s Pentium Chip
Problem? What Problem?
Problem In The Chip
In 1997, a professor of mathematics found a
glitch in Intel’s Pentium chip.
He discovered that the mathematical
functions for the chip’s complicated
formula were not consistently accurate. The
professor sent an article about his findings
to a small academic newsgroup. This put a
negative impact on intel.
Consequences
Intel kept on denying the issue
Intel’s share value dropped by
over 20 points
The media pointed to Intel for proper
response
The news of faults spread
quickly in the media
when
IBM’s declaration that
Intel
Xerox Data Systems
More Than Copiers?
A Disastrous AmbitionXerox is one of the best branding
success stories of the 20th century. The
company didn’t just create a new
product, it invented a whole new
category. Even today, many people use
the term “Xerox Copy” instead of
“photocopy”.
The Xerox Company started in 1949,
with the first photocopier or Xerox
machine. Since then it was nothing but
success that kept on company with
Xerox…
From 1970, the company expressed its desire to stretch beyond copying intothe field of computer and other technologies. Which led to market several
products.
Xerox Data
System
Tele copier
Memory writer
Unfortunately…all of these attempts failed and caused a huge lose to Xerox. Customers seemed to refuse to think of Xerox for any product other
photocopy machines.
So, after all
attempts failed,
Xerox went back to
making
Photocopiers.
Trying to transform itself
into an IBM-style ‘information business’.
Forgetting that brands are bigger than
products
Spending too much time and energy looking
into a future which didn’t
exist
EnronFailing The Truth
A white Lie Staining Black on SuccessIn the relatively short space of 15
years, Enron rose from
nowhere to become the seventh
largest company in the United
States, and
the most well-known energy supplier
in the world. It boasted over 21,000
employees and had a presence in
more than 40 countries.
Achievements
“Most Innovative Company in America”
Award
High Position in the rankings in “Best
Companies To Work For”
An image of good citizenship
However, in 2001–02 this turned out to be a lie – one of
the in corporate history. The company’s profit
statements were proved to be untrue, and it emerged that
massive debts had been hidden so that they weren’t evident in the
company’s accounts. Enron’s accountancy firm, Arthur Andersen,
was involved in the shredding of documents relating to Enron’s
accounts, which meant the impact of the scandal was going to be
catastrophic for that firm’s reputation as
well.
Over the years, Enron depicted itself as a
highly profitable, growing
company.
With the unfolding of deep deception, investors and creditors retreated
Farm had to record themselves as bankrupted
Enron executives made matters worse by refusing to testify and arguing that they had no chance of a fair trial.
Consequences
also had political implications,
because of the firm’s close links with the
Enron
involvement
The whole company image portrayed by Enron proved to be a complete fraud. And as soon as
one lie emerged, it didn’t take too long before the
rest were unraveled
Though Enron tried to project the image of
perfection, they couldn’t keep it legal. Any illegal product, no matter how good the quality is, is
always aborted
Enron managed to make a terrible situation even
worse by refusing to acknowledge any
wrongdoing after the facts emerged
McDonaldsArch Deluxe
An Expensive LossArch Deluxe
These failures are
more
However
After all….
“
“If you are not prepared to be wrong, you
will never come up with anything
ORIGINAL..”
- Ken Robinson