Wednesday, February 23, 2011

Change.

"There is nothing wrong with change, if it is in the right direction."- Winston Churchill

I think it's safe to say that most people hate change. But why?
Is it the risk that comes with trying something new? The uncomfortableness? 

Lets think about when consumers experience change. Suppose a product you use on a regular basis is altered in some way. Perhaps this product alteration is for the better, perhaps it's for the worse. Let's turn our attention to product alteration flops- change for the worse.

Change for the worse #1- Sun Chips compostable bag.



Sun Chips decided to make their bag compostable- a great idea in a world where the great majority of north america lives with an ecological footprint far surpassing any level of sustainability. The drawback of this compostable bag? The noise it creates when trying to enjoy a delicious sun chip. This bag was so loud- it measured in at 95 dB, about five decibels louder than the level when you have to start worrying about hearing loss. Not only did it make eating sun chips unenjoyable, but Sun Chips also received a lot of negative publicity over this matter. A facebook group formed, titled: "Sorry but I can't hear you over this Sun Chips bag" and achieved over 30,000 members.

I first heard about this compostable bag at a marketing conference- from an employee of Sun Chips. He talked about the sustainability of the bag and how they were helping to reduce landfill waste by the tons. It sounded like a great idea to me. I was in awe. There was no mention about how the bags were ridiculously loud and how they were not received well with consumers. 

The next day of the conference- VP of marketing from a different corporation mentions the Sun Chips compostable bags in casual conversation, and how big of a flop they were. I was confused. What? A flop? But the man who spoke at the conference yesterday said they were amazing?

Key learning point: there are two sides to every story. I know that your mother has probably been telling you this since you were five, but in a world of marketing it's easy to be persuaded by commercials, by the media, by advertisements. Before you're easily influenced by any form of marketing/advertising- look into it first. Do your research. You'll be more informed and make better purchasing decisions. 

Change for the worst #2- New Coke, 1985

The New Coke, introduced in 1985 is possibly the biggest change for the worst in marketing history. 

When Coca Cola changed their product, they didn't consider that so many of their consumers had grown up with coke, had coke embedded in their childhood. A consumer even said to the CEO at this point in time "thank you for taking away my childhood." Nostalgia is something that so many companies overlook. Although it's necessary to innovate and adapt as markets change, some companies take it too far. They destroy their legacy. 

Unfortunately for Coke, Pepsi used this as an opportunity to gain market share. Soon after the "New Coke" was launched and received poorly by consumers, they returned to their original formula for Coke. 

Key learning point: The power has shifted from corporations to consumers. Consumers have a voice that is easily heard (even more so now through social networking sites, blogs, etc.) Coke consumers spoke up for what they wanted, what they thought was right; and they were given what they wanted. If more people spoke up, the world would be a better place. So speak up and you'll achieve change for the better, not change for the worse. 



No comments:

Post a Comment