In the past few weeks, the press has been full of news regarding failing companies and failing brands, with Mothercare and Premier Foods recently in the firing line.
Mothercare announced plans to cut 500 jobs after unveiling an annual profit warning, a plummeting share price and the exit of CEO Simon Calver, and a number of Premier Foods’ brands are suffering as a result of the supermarket price wars.
The retail tectonic plates truly have shifted. There are now about 100,000 ‘zombie brands’ operating worldwide, estimates the Adam Smith Institute. These are brands that have become irrelevant and have no real meaning to us. Their sales are probably flatlining and they aren’t generating the profitability required to grow. They’re dying and staff often bear the brunt of this.
So how do brands become zombies? Simple: they lose their reason to exist. It has never been more important for brands to stand for something meaningful. They have to understand why they exist and make this the core of everything they do, rather than simply understanding what it is they do. apple is a prime example of a brand most people love. They understand the reason it exists is to challenge the status quo. Had it simply defined itself as a technology company, the draw wouldn’t be anywhere near as strong.
So what can brands do to halt this half-dead march towards extinction? At 1HQ, we were tasked with bringing Phileas Fogg crisps back to life. Consumers know them as a snack but we had to generate a sentimentality toward the brand to build loyalty and ultimately guarantee their longevity.
We established their why as: ‘To bring exciting flavours from around the world into your living room.’ The result? Growth targets were met in the first six months, with a 361% increase in sales.
I would urge others trying to bring zombie brands back to life to do more to engage with consumers emotionally. They also need to think long term, maximise digital channels of communication - and most importantly of all, not chase the year-on-year sales figure that is a zombie’s staple diet.
Mark Artus is CEO of global branding agency 1HQ
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