Rebranding

is a Waste
Dr. Augustine Fou
Melisa Lopez
Marketing Science Consulting Group, Inc.
Methodology
1. We use change in search volume to
detect awareness and interest in the
rebranding.

2. We use actual corpor...
Olive Garden (2014)

Rebrand Est. Cost
Unknown
April 16, 2012.

• Store Traffic: -13%
• Sales: -5.4%
• Social media commen...
JCPenney (2012)

Rebrand Est. Cost
$100 million
April 16, 2012.

• Revenues: -20%
• Store Traffic: -10%
• Facebook comment...
Starbucks: Logo (March 2011)

Rebrand Est. Cost
$100 million
April 16, 2012.

• Revenues: Flat
• Search: Flat
5
Overstock: Name/Logo (2011)

Rebrand Est. Cost
$50 million
April 16, 2012.

• Revenues: Flat
• Search: Declining
6
Gap: Logo (End of 2010)

Rebrand Est. Cost
$100 million
April 16, 2012.

• Revenues: Flat
• Search: Flat
7
Radio Shack: Name/Logo (2009)

Rebrand Est. Cost
$100 million
April 16, 2012.

• Revenues: Declining
• Search: Declining
8
Tropicana: Package (2009)

Rebrand Est. Cost
$100 million
April 16, 2012

• Revenues: Big Dive
• Search: Declining
9
Holiday Inn: Logo (2007)

Rebrand Est. Cost
$100 million
April 16, 2012.

• Revenues: Flat
• Search: Declining
10
Other Rebrandings - Samples

Discovery Channel, Axe, Pizza Hut, AOL, Pfizer, Xerox, KFC, Coke, Sci Fi
April 16, 2012.

11
Other Rebrandings - Samples

Intel, Pepsi, Snapple, Vodafone, Qantas, Best Buy, Seattle’s Best, Kraft, Jack in the Box
Apr...
Other Rebrandings - Samples

United Airlines, BP, UPS, NFL, Comedy Central, Animal Planet, SanDisk, Google Chrome, Capital...
So what?
If not rebranding, then what?
“Instead of spending money on cosmetic
changes like rebranding the logo, the colors...
Dr. Augustine Fou – Chief Digital Strategist
Dr. Augustine Fou is Chief Digital Strategist of
Marketing Science Consulting...
Melisa Lopez – Digital Media Director
Melisa Lopez has over 7 years of experience
in ecommerce, digital media marketing, a...
APPENDIX
April 16, 2012.

17
Starbucks: Logo (March 2011)
revenue: steady

search volume: no change

April 16, 2012.

18
Overstock: Name/Logo (2011)

Revenues
Earnings
Search volume continues decline
April 16, 2012.

Revenue steady, earnings d...
Gap: Logo (End of 2010)
One week later they reverted back to the prior logo…
sales: steady

search volume: no change

Apri...
Kraft: Logo (2009)
Lower sales in 2011

Search volume: no change

April 16, 2012.

21
Radio Shack: Name/Logo (2009)

Search volume continues decline
April 16, 2012.

Revenues steady; earnings decline
22
Pepsi: Logo (2009)
Search volume: no change

Revenue decreased in 2009
April 16, 2012.

23
Mountain Dew: Logo (2009)

Search volume: steady
April 16, 2012.

2009: Pepsi reported revenue of
$1.1 billion in the quar...
Gatorade: Logo (2009)
Search volume: no change

Old logo awareness 82% versus 43%!!
…Gatorade’s sales volume decreased 13....
February 2009 – Tropicana Reverts Design
after 19% ($33 million) drop in sales
Tropicana Line's Sales Plunge
20% Post-Rebr...
Pizza Hut: Logo (2009)
Sales: steady

Search volume: no change

April 16, 2012.

27
Xerox: Logo (2008)
Sales decreased in 2009
compared to 2008

Search volume: no change

April 16, 2012.

28
Holiday Inn: Logo (2007)

Search volume: continued decline

Sales: slight increase in 2008
April 16, 2012.

29
KFC: Logo (2006)
Search volume: no change

Sales: steady

April 16, 2012.

30
AT&T: Logo (End of 2005)

Sales: increase in 2007 due to iPhone

Search volume
increases due to Apple
iPhone introduced to...
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Re-Branding is a Waste of Money

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Instead of spending money on cosmetic changes like rebranding the logo, the colors, or packaging, spend money on true innovation, improving product, service and quality. These will lead to longer lasting lifts in revenue.

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Re-Branding is a Waste of Money

  1. Rebranding is a Waste Dr. Augustine Fou Melisa Lopez Marketing Science Consulting Group, Inc.
  2. Methodology 1. We use change in search volume to detect awareness and interest in the rebranding. 2. We use actual corporate financials for the 2 quarters after the rebrand to determine if there was any business impact. April 16, 2012. 2
  3. Olive Garden (2014) Rebrand Est. Cost Unknown April 16, 2012. • Store Traffic: -13% • Sales: -5.4% • Social media comments: negative 3
  4. JCPenney (2012) Rebrand Est. Cost $100 million April 16, 2012. • Revenues: -20% • Store Traffic: -10% • Facebook comments: 80% negative 4
  5. Starbucks: Logo (March 2011) Rebrand Est. Cost $100 million April 16, 2012. • Revenues: Flat • Search: Flat 5
  6. Overstock: Name/Logo (2011) Rebrand Est. Cost $50 million April 16, 2012. • Revenues: Flat • Search: Declining 6
  7. Gap: Logo (End of 2010) Rebrand Est. Cost $100 million April 16, 2012. • Revenues: Flat • Search: Flat 7
  8. Radio Shack: Name/Logo (2009) Rebrand Est. Cost $100 million April 16, 2012. • Revenues: Declining • Search: Declining 8
  9. Tropicana: Package (2009) Rebrand Est. Cost $100 million April 16, 2012 • Revenues: Big Dive • Search: Declining 9
  10. Holiday Inn: Logo (2007) Rebrand Est. Cost $100 million April 16, 2012. • Revenues: Flat • Search: Declining 10
  11. Other Rebrandings - Samples Discovery Channel, Axe, Pizza Hut, AOL, Pfizer, Xerox, KFC, Coke, Sci Fi April 16, 2012. 11
  12. Other Rebrandings - Samples Intel, Pepsi, Snapple, Vodafone, Qantas, Best Buy, Seattle’s Best, Kraft, Jack in the Box April 16, 2012. 12
  13. Other Rebrandings - Samples United Airlines, BP, UPS, NFL, Comedy Central, Animal Planet, SanDisk, Google Chrome, CapitalOne April 16, 2012. 13
  14. So what? If not rebranding, then what? “Instead of spending money on cosmetic changes like rebranding the logo, the colors, or packaging, spend money on true innovation, improving product, service and quality. These will lead to longer lasting lifts in revenue.” - Dr. Augustine Fou, Chief Digital Strategist April 16, 2012. 14
  15. Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is Chief Digital Strategist of Marketing Science Consulting Group, Inc., a company he founded over 11 years ago. He is an industry- recognized thought leader in digital strategy, search and social media marketing and former Group Chief Digital Officer of Omnicom's Healthcare Consultancy Group. Dr. Fou is also an Adjunct Professor at NYU in the School for Continuing and Professional Studies and at Rutgers University at the Center for Management Development, where he teaches courses on digital strategy, social media marketing to executives. He is a frequent panelist, moderator, and keynote speaker. Dr. Fou completed his PhD at MIT at the age of 23. He started his career with McKinsey & Company. He writes a monthly column on Integrated Marketing for ClickZ.com, and can be found on Twitter.com @acfou. April 16, 2012. acfou@mktsci.com 15
  16. Melisa Lopez – Digital Media Director Melisa Lopez has over 7 years of experience in ecommerce, digital media marketing, and Internet strategy consulting as founder of MR Roses Flower Co, and WPS Digital, a digital marketing company. Melisa Lopez is a former Client Analyst at Goldman Sachs. Melisa earned her MBA from Florida International University, and a Professional Certificate in Digital Media Marketing from New York University. She is a magna cum laude, Bachelor of Arts in Economics, of Universidad San Francisco de Quito Melisa can be found on Twitter @carmenmel LinkedIn: http://www.linkedin.com/pub/melisa-lopez/4/488/962 April 16, 2012. acfou@mktsci.com 16
  17. APPENDIX April 16, 2012. 17
  18. Starbucks: Logo (March 2011) revenue: steady search volume: no change April 16, 2012. 18
  19. Overstock: Name/Logo (2011) Revenues Earnings Search volume continues decline April 16, 2012. Revenue steady, earnings dropped 19
  20. Gap: Logo (End of 2010) One week later they reverted back to the prior logo… sales: steady search volume: no change April 16, 2012. 20
  21. Kraft: Logo (2009) Lower sales in 2011 Search volume: no change April 16, 2012. 21
  22. Radio Shack: Name/Logo (2009) Search volume continues decline April 16, 2012. Revenues steady; earnings decline 22
  23. Pepsi: Logo (2009) Search volume: no change Revenue decreased in 2009 April 16, 2012. 23
  24. Mountain Dew: Logo (2009) Search volume: steady April 16, 2012. 2009: Pepsi reported revenue of $1.1 billion in the quarter – a decline of 4% compared to 2008 24
  25. Gatorade: Logo (2009) Search volume: no change Old logo awareness 82% versus 43%!! …Gatorade’s sales volume decreased 13.7% in the first quarter of 2009 - Its market share decreased 6.3%. …Rebranding has hurt Gatorade’s sales by making the brand unrecognizable on shelves… April 16, 2012. 25
  26. February 2009 – Tropicana Reverts Design after 19% ($33 million) drop in sales Tropicana Line's Sales Plunge 20% Post-Rebranding AdAge 4/2/2009 Tropicana Discovers Some Buyers Are Passionate About Packaging The New York Times 2/22/09 In Blow To Arnell, Tropicana Drops Package Redesign BNET 2/23/09 April 16, 2012 26
  27. Pizza Hut: Logo (2009) Sales: steady Search volume: no change April 16, 2012. 27
  28. Xerox: Logo (2008) Sales decreased in 2009 compared to 2008 Search volume: no change April 16, 2012. 28
  29. Holiday Inn: Logo (2007) Search volume: continued decline Sales: slight increase in 2008 April 16, 2012. 29
  30. KFC: Logo (2006) Search volume: no change Sales: steady April 16, 2012. 30
  31. AT&T: Logo (End of 2005) Sales: increase in 2007 due to iPhone Search volume increases due to Apple iPhone introduced to US market (2007) Search volume declined in 2005 – 2006. April 16, 2012. 31

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