Tutorial 5 - Vegemite iSnack 2.0

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When (Re)Branding Goes Wrong?

Tutorial 5: iSnack 2.0

Strategic Marketing – SUMMER SCHOOL 2014 2

• Lecture Revision– What is brand equity?– What is a brand extension?– Top 10 Rebrands: Good or bad?

• Case Discussion– Vegemite iSnack 2.0

• Branding Exercise

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Overview for today

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Good or Bad?

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Good Brand Revitalisation, except…

Estimated cost: $211,000,000. The company spends up to $125 million annually on improving their brand and marketing.

The new logo was a symbol of mockery after the Gulf oil spill in 2010…

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Good or Bad?

During the busy Christmas period of 2010, Gap launched a new logo design and rebranded their. The original Gap logo, a design that had served the brand for more than 20 years, disappeared from without warning…

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PR Stunt?

Estimated Cost: $100 million - not the price tag you’d expect for something that could’ve made using WordArt. After public outcry, it was reverted back one month later.

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Good or Bad?

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Good, but expensive…

Estimated Cost: dubbed “the $1 billion rebrand”, all in all, a lot of money to spend on such a generic solution.

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Good or Bad?

Brand strategy: Consolidate multiple product categories and give the Microsoft ‘ecosystem’ a consistent look and feel

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Consistent ecosystem

Estimated Cost: Unknown, but it took years to implement the solution

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Good or Bad?

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Pointless?

Estimated Cost: $1.2 billion over 3 years with the logo mark for Pepsi alone coming in at $1 million

“The white stripe on the new logo varies across Pepsi products, getting wider or thinner depending on product. The design team that spearheaded the campaign

explains that they’re supposed to be “smiles,” but we don’t really see it.” Forbes Magazine

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Good or Bad?

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Complete disaster

Estimated Cost: £1.5 million to launch in January 2001. Another £1 million to rebrand themselves as Royal Mail.

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Good or Bad?

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Good or Bad?

Estimated Cost: $137 million in sales between January 1st and February 22nd a case of lost identity

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Embarrassing…

When CEO, Mark Weinberger took the helm of Ernst & Young in 2013, rebranding the firm might have seemed like a cool idea…

You would expect the world’s biggest audit firm to audit the EY brand name prior to beginning a major rebranding…

What do you see when you google EY (under images)…

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Good or Bad?

When the new leadership decided to return to the initial globe identity, only with a way cooler vision, creating an illusion of a circle, BBC One had to pay over 1.2 millions pounds

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Good or Bad?

Brand strategy: As the company no longer looked at itself just as a shipping and delivery service, the wrapped package in the logo had to go, being replaced by a sparkling new logo, still keeping the main concept…

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Good or Bad?

Brand strategy: Apple decided to give their logo a more modern and professional look, this shift brought also a change of name, from “Apple Computers” to “Apple Inc”, as the name no longer matched their company identity…

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Good or Bad?

Brand strategy: Starting a new direction in their production line, Fiat decided to embrace the future by giving a new interpretation to the original Fiat logo, going way back to 1931 and proudly looking up to their historic identity.

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Good or Bad?

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https://www.youtube.com/watch?v=itA1oP6nTKY © Imperial College Business School

Vegemite iSnack 2.0

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https://www.youtube.com/watch?v=QmIjLBssqyk

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Comedy YouTube Clip

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1. Should Talbot use a brand extension to revitalize Vegemite?

2. What are the goals of the extension?

3. To whom should the extension be targeted?

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Case Study Questions

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Group ExerciseBest ‘rebrand’ or brand extension wins a prize!

• Pick a product, category or company (brand) in need of rejuvenation, where rebranding could help e.g. reach an ‘untapped’ market segment. Explain your choice.

• Present the vision behind the new branding, the marketing objectives (Repositioning? PR stunt? Rejuvenation?), as well as a rough design and a tagline

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RebrandingSome suggestions for the presentation

1. Problem statement: Why is the product/company in need of rebranding?

2. State the objective: What is the marketing strategy? – Rejuvenation i.e. changing with the times– Repositioning i.e. new markets, brand extension– Awarenesss i.e. PR stunt

3. Devise a vision: What should the new branding represent?

4. Present the idea: Use sketches, moodboards, inspiration

5. Suggest a tagline

http://www.minimallyminimal.com/blog/2012/7/3/the-next-microsoft.html

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Team 1Launching the Baskin Robins brand in Asia

WINNERS

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Team 2Rebranding Aston Martin to young high net worth individuals

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Team 3Rolex Brand Extension into Men’s Accessories