The Reinvention of Brands
A look inside the trend of finding a new business model
We all know the classic story of Netflix, a company founded in 1997 that used a traditional pay-per-rental model for movies. Since then it went onto a flat-fee unlimited rental model without due dates, late fees, etc.
You can imagine that in our present time, the business model of Netflix would never survive. So what did Netflix do?
It reinvented itself.
It introduced video on demand via the internet. And do you remember their biggest competitor? (If you don’t that’s fine, because that’s exactly my point.) Blockbuster stayed with their core business idea and couldn’t grow with the changes that happened during that time. If that’s to blame on Netflix, is a whole different story.
The big old companies that are able to survive nowadays, all went through radical changes, because they had no other choice.
Take National Geographic, they had a pretty steady fan-base a few years ago, but that all changed when we started to buy less and less magazines and started to invest more time into internet-based articles. But, guess what? They are now the Number 1 magazine brand if you count their value in likes and followers and their web traffic is escalating. They’ve achieved this rethinking their digital strategy and recognizing that NG needed to invest in a younger generation with different needs.
Similar to the previous brand, is Domino’s. In 2008 the brand had a problem. People were saying that their pizzas ‘tasted like cardboard’ (you probably said it too) and, as a result, sales were in decline. The company did something rather brave though, it admitted its problem and promised their customers to change by doing extensive customer research and launching a new healthier recipe with better quality ingredients.
Domino’s also changed their online presence, by offering some innovative options, like Apps to order and a pizza tracker, so that customers can track where their order is. Always works with really ‘hangry’ people.
But not every brand can do it right. Take Tropicana Orange Juice. The mother company Pepsico was absolutely convinced that it needed to do a redesign. The result? Shocked and angry consumers that hated the new packaging.
Watch this video for a painful example of how not do it:
And last but not least, enjoy all the things that Old Spice has done right in this, this, this, this and this example of great marketing.
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