rebranding

Another Rebranding Apology; Another Marketing Misfire

Uber joined the corporate rebranding apology tour with a new 60-second TV spot. While striking a sincere tone, the ad still falls short on specifics and direct outreach to the customers and stakeholders most affected by the scandals that provoked the need for rebranding.

Uber joined the corporate rebranding apology tour with a new 60-second TV spot. While striking a sincere tone, the ad still falls short on specifics and direct outreach to the customers and stakeholders most affected by the scandals that provoked the need for rebranding.

Like Wells Fargo, Uber faced a tough 2017. Unlike Wells Fargo, Uber has launched an ad campaign that offers a more sincere-sounding plan on how it plans to clean up its act.

In a 60-second TV spot called “Moving Forward,” Uber CEO Dara Khosrowhahi, who was hired in the middle of a series of scandals, walks through the actions the car-hailing company is taking. Keeping in mind it is a TV ad, not a consumer bill of rights, Uber says it will enable in-ride reviews of drivers and promises to improve the culture at Uber headquarters.

“Moving forward, it’s time to move in a new direction,” Khosrowhahi says in the ad.

Advertising observers have panned the Uber ad as “vague” and another corporate entry on the “apology tour.” That criticism is not invalid, but the Uber “apology” strikes a notably different tone than Wells Fargo’s ad that says the iconic company that began in 1852 is re-establishing itself in 2018.

The Wells Fargo ad started with historical footage and references to its gloried past before getting around to the one specific it announced – eliminating sales quotas for brand managers and instead emphasizing customer satisfaction.

The Uber ad comes across as less flashy and a bit more on point. Instead of a narrator, the voice you hear is the CEO who promises continuous improvement to make things better for riders, drivers and, presumably, Uber staff.  The ad also shows Uber riders and drivers.

Organizations that face rebranding challenges following scandals or product failures should study and learn from the Wells Fargo and Uber ad campaigns. Drawing on history and letting the CEO do the talking are just tactics. But rebranding strategy should center on specific action steps. If the digital age has done nothing else, it has made promises less important than actual improvements. Flash and CEO sincerity aren’t substitutes for on-the-ground change.

It isn’t a knock on advertising to observe that it may not be the best medium to convey the substance of a rebranding effort, as both the Wells Fargo and Uber ad campaigns demonstrate. Often, direct outreach to affected customers or stakeholders is the best path to successful rebranding. Convince them your change is real and meaningful, then let them talk about the change in unscripted ways on social media and, eventually, in an ad campaign featuring consumer reaction to your change.

We talk a lot about customer engagement and building trust. TV ads, regardless of their quality, push a message, but don’t engage. That can have the unintended effect of deepening cynicism and mistrust.

Wells Fargo and Uber deserve credit for undertaking rebranding. They both would have been better served by launching their rebranding in a less splashy – and possibly a lot less expensive – way by reaching out to their customers and telling them directly about the changes being made and asking for their reaction. That kind of engagement may not fit in a 60-second TV spot, but it is likely to provide a more satisfying and durable outcome.

 

Rebranding Is Still Branding

There are lots of good reasons to rebrand, but throwing away your brand history isn’t one of them. Mr. Clean and its familiar jingle have been around since 1958 and have grown and evolved with the brand in step with the needs of their customers.

There are lots of good reasons to rebrand, but throwing away your brand history isn’t one of them. Mr. Clean and its familiar jingle have been around since 1958 and have grown and evolved with the brand in step with the needs of their customers.

There are many good reasons to launch a rebranding campaign – a new name, direction or product line. That said, though, rebranding shouldn’t abandon the original brand but instead move it to new ground with fresh expectations.

One of the worst outcomes of a rebranding campaign is to sacrifice the hard-earned capital of previous branding efforts. Even if a brand has some rust to shake off or a incurred a dent to smooth out, it still has residual value. Rebranding isn’t about starting over; it’s about refreshing (and fixing) what has been.

After a string of food safety issues, Chipotle received lots of advice about its brand. Some argued the company should scrap the name and start over. Others said the Mexican fast casual chain should retain its name and undertake a rebranding campaign that underlined why people like Chipotle's food and how the company has responded to its food safety crisis.

Like branding, rebranding is all about positioning. What makes your product or service distinct? What is your value proposition? Why should anybody care about what you offer?

Rebranding affords a chance to tell the world who you are in a fresh way, whether it’s updating your product or service line, using new tools such as video to tell your story or placing your story in new channels where customers hang out and pay attention.

Rebranding allows companies to respond to their customers' changes in taste. Think of all the food ads you now see that talk about being gluten free or produced without growth hormones.

Stodgy brands turn to rebranding to inject a youthful step into their offerings. You can still enjoy venerable Campbell’s chicken noodle soup, and now you can take it to work in a handy cup that heats up in a microwave.

One off the best uses of rebranding is to move from pushing a message to attracting viewers through informative, relevant and useful content. This can mean rethinking a website to relying on digital media promotion. A website makeover can evolve from what is essentially and electronic brochure to an information hub designed around how existing and potential customers or clients interact with a product or service. Moving to digital media could be as basic as relying less on the phone book and more on self-publishing content of value to customers or clients.

If, like Chipotle, a company is rebranding to move on from the past, then rebranding has to deal openly and honestly with the past. That honesty conveys its own freshness that customers often will reward. This requires more than lip service to change. Show the change with video and validate its value with credible third parties.

Rebranding is not a brand divorce. It is more like a brand family extension. The all-purpose Mr. Clean was introduced in 1958 with its own character and jingle that helped propel the product, originally developed to swab out ocean-going ships, into a best-selling customer favorite.

In 2016, after the Mr. Clean product line had expanded into a full line of cleaning products, including the Magic Eraser, the character and jingle were modernized. You could still recognize the spiffed-up Mr. Clean and the jingle struck a familiar chord. Instead of mentioning white sidewall tires and old golf balls, the jingle talked about using Mr. Clean to “clean your whole house and everything that’s in it.”

The rebranding has been an unquestionable success. And the jingle is the longest running advertising tune in television history.

Reader Ideas to Meet the #ChipotleMarketingChallenge

Faced with a series of high profile food safety mishaps over the past several months, Chipotle is on a daunting mission to restore its image. 

Faced with a series of high profile food safety mishaps over the past several months, Chipotle is on a daunting mission to restore its image. 

Based on the ad hoc advice we got, Chipotle may have a tough time convincing wary customers to return.

The Mexican restaurant chain – which built its fast casual brand on quality, locally sourced food – faces the challenge of wooing back customers after at least three separate food safety incidents across the country. One source reported Chipotle’s revenues – despite reopening its previously closed stores – dipped 30 percent in December.

We asked people to pretend to be the chain’s marketer and meet what we called the #ChipotleMarketing Challenge,” an open-ended strategy session about how you would repair the damage. Here’s a sampling of comments, without attribution, that we received:

“I never went back to Sizzler or Jack in the Box after their troubles.”

“They’ve given an edible plant a bad name. I guess they could work on another one.”

“No kidding! Been wondering how they will rebuild the Grand Canyon of public mistrust."

“Chipotle = Corvair. It will be over very soon.”

One commenter threw up his hands and said the best thing Chipotle’s marketing director could do is look for a new job.

Not everyone was fatalistic, though.

“Challenging situation, but Chipotle is not Enron.”

“Try explaining what happened and how it’s been fixed. How about treating customers like intelligent beings. Then suck it up and take a hit on profits for a little while trust is rebuilt.”

“Rename and rebrand. Not that hard if you do it the right way. But you can’t polish a turd.”

“They could start by foregoing all the healthy positioning of food that isn’t healthy. Hello to the 1,200-calorie burrito.”

“Maybe divide local sources of food into distinct local brands featuring regional specialties based in part on what is in season locally. Emphasize freshness and a lower carbon footprint from transportation.”

“Food safety is obviously essential. Overhaul safety procedures in a transparent way. Open up the facilities with web cams and implement a pioneering food handling effort.”

“Have a long view and don’t attempt to rush to a quick fix (like losing all brand equity). Execute. Execute. Execute. This is a process issue and can only be fixed through years of excellent in process improvement and execution.”

"I believe in second chances. What about a 'Great Reopening' campaign. A day of free samples of food? Coupons and food prize give-aways. Everyone likes free stuff. Have each location give away one free meal an hour. Must make a purchase to qualify for the hourly drawing. Have one big grand prize at the end of the day. Good luck!"

There were also some more entertaining suggestions, like following the example of “The Worst Hotel in the World,” where you warn patrons up front. Here are some more quirky marketing ideas.

“Hire Martha Stewart and Snoop Dog, who have great chemistry on her talk show, for a series of cute ads.”

"Have Morgan Spurlock (a documentary filmmaker and humorist known for producing “Super Size Me”) eat at Chipotle for 30 days, then follow him with cameras to see what happens. The toilet experience might be too graphic.”

On the other hand, maybe Chipotle doesn’t need a big marketing campaign to restore its image after all, which one commenter pointed out. “A large number of their customer base are high school students who don’t care and have continued to eat there three or four times a week through all this."