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