The document discusses the negative impact of rebranding on several companies, including Olive Garden, JCPenney, and Tropicana, citing decreases in sales and store traffic as common outcomes. It argues that instead of costly rebranding initiatives, businesses should invest in innovation and improvements to products and services for long-term revenue growth. The findings are based on analysis of search volumes and corporate financial performance post-rebranding.

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.
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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