All Brands Have Ups & Downs

Brands, like people, are not perpetually perfect. Organizations have their ups and downs where they lose focus and forget why they are in business. I think there are many reasons that contribute to the loss in focus: new management who don't believe in the organization's purpose (or just don't get it); taking shortcuts or making compromises to save on costs; expanding products lines or appealing to new consumer groups that don't help the organization pursue it's purpose, and so on...

When this happens, not only are consumers confused, but so is the organization internally. Consumers no longer know what to expect from the brand, because what the organization has been saying about itself (brand messaging) no longer aligns with its actions (reasons to believe). So, that trust and loyalty a customer had for the brand begins to diminish - they are no longer able to believe in the brand. And internally, employees no longer know what their purpose is - there is no guiding beacon to point them in the right direction. They begin to worry about cutting costs, capturing more market share no matter the cost to the organization's long term value. They no longer have to uphold a credo or a higher purpose. This not only induces poor decisions, but it also eliminates motivation to come to work and the feeling of making a difference. 

However, if an organization looses its way, it doesn't mean there isn't a way back. You just have to refocus - looking back on why you got into business in the first place and make sure you are relevant to your customers today (but in a way that enables you to pursue your purpose).

Take Apple, for example - in the late 80's Steve Jobs recruited John Sculley from PepsiCo to go work for the company. Supposedly, Jobs asked Sculley, when recruiting him, "Do you want to spend the rest of your life selling sugared water, or do you want to change the world?" Unfortunately, Sculley mustn't have taken Jobs seriously, because after Steve left in 1987, Apple took a turn for the worst.  The first product launch post-Jobs was the Macintosh II - it no longer took the form of the one-box design Jobs created.  Rather it looked like every other PC on the market - it was no longer special. To make matters worse, in 1993 Apple launched 19 computers! So, not only were the Apple computers like every other PC, which made competition difficult, Apple created 19 more competitors creating additional competition for even its own computers, officially eliminating any possible point of differentiation. Apple was no longer unique. As a result Apple's loyalists were no longer loyal and its profit margins were suffering, indicating that the perceived value for the brand was diminishing.

However, when Jobs returned in the late 90's he refocused the company starting by cutting out all the unnecessary products & focusing on a select few - the iMac, iBook & iPod. Jobs was also extremely focused on the customer experience with every product and service - it must be simple and beautiful. In addition, he brought back his evangelist, Guy Kawasaki, to be the internal brand ambassador, ensuring everyone at Apple knew and believed in the Apple purpose. This refocus and dedication to Apple's original purpose led to a stronger than ever cult-like following of customers and its stock price increased 1,000+ percent over the next 10 years! Focus on purpose is essential!

Then there is Starbucks, who hasn't been doing too great over the past few years. Howard Schultz launched his European inspired coffee shop into stardom in the 80's when the out of home coffee consumption industry was plummeting - who would have thought. But Schultz had a dream to create the 'Third Place' - the place between home and work for people to relax and/or meet friends & family. Starbucks was to be a place to sit down and enjoy a special customized cup of coffee - and it was! Every detail of the store experience was planned out perfectly - the aroma, seating, sounds, etc. It all had to be perfect. Starbucks knew its opportunity to build customer loyalty was in-store, so that's where it dedicated its resources.

Unfortunately, as time went by, Starbucks lost its dedication to creating the best in-store experience and started focusing solely on efficiencies. So, it became faster to have coffee beans delivered already ground in flavor locked packaging, losing the beautiful coffee aroma in the store; and it was faster for Baristas to use automatic espresso machines, which sacrificed the flare when making beverages - these compromises affected the experience of buying a Starbucks coffee, which made customers begin to think "Why am I paying $4.00 for a cup of coffee again?"

In an effort to remind people why a Starbucks cup of coffee IS worth $4.00, Starbucks has begun to focus back on the experience introducing the Mastrena espresso machines to bring back some of the Barista flare while ensuring some efficiencies exist to minimize wait time for customers. It has, also, begun to focus more on its employee retention and training programs so that Baristas stick around longer to get to know the customers and make them feel special. Although Starbucks has additional improvements to make, its refocus on the in-store experience to revitalize the 'third place' are promising actions to turn itself around!

Organizations just need to focus on their purpose and remember why they are in business and why it matters to bring themselves back on track!