Brand Failures_ The Truth About the 100 Biggest Branding Mistakes of All Time - Matt Haig [88]
Pets.com, as with boo.com, shows that a successful brand depends on a solid business plan. No matter how effective a company’s advertising and PR proves to be, unless it can differentiate itself in terms of product and service and add real value, it will be left stranded.
There have also been some doubts about the effectiveness of the advertising in the first place. Andrea Reisman, CEO of Pets.com rival Petopia.com, believed Pets.com was targeting the wrong people. ‘We don’t advertise on the Superbowl,’ she said. ‘That’s not where our customer is.’
There is no denying that the adverts did have a lasting appeal though. Indeed, the sock puppets were among the most popular items sold on the Pets.com website. Ironically, the mascot used to build the brand had become bigger than the brand itself. Even after Pets.com had announced it was shutting up shop, interest in the sock puppet character was strong enough for him to be invited back on Good Morning America. Towards the end of the interview, the show’s host asked the puppet if he had any advice for the investment community. And the puppet’s response? ‘Don’t invest in dot.coms.’
Lessons from Pets.com
Differentiate your brand. No market can support dozens of companies with similar business plans.
Add value. ‘In a product area where the retailer adds no extra value, Pets.com was doomed to disaster the day the first wave of competitors came along,’ says e-marketing expert and author Dan Janal.
Don’t compete on cost. As discounts were the company’s major selling point, Pets.com’s profit margins eventually shrank to nothing.
Don’t rely on gimmicks. Sock puppets may be popular, but they can’t single-handedly support a brand. Just ask ITV Digital.
Recognize that emotion isn’t enough. Pets.com vice president of marketing, John Hommeyer, was very proud of the bond the company had created with its customers. ‘It’s one of the few dot.coms that’s really built a brand and established an emotional connection with consumers,’ he said, shortly before the company’s closure. When dealing with an online brand however, emotion isn’t always enough to get consumers to buy online.
Have a strategy. Pets.com’s insufficient strategy was highlighted at the time by Michael Dunn, CEO of branding consultancy Prophet Brand Strategy. ‘Most people have a playful, fun relationship with the sock puppet, but it has yet to translate into a compelling brand story that makes people want to transact with the company. Building a brand devoid of a clear business strategy is a recipe for failure.’ And so it proved.
81 VoicePod
Failing to be heard
Technology company Altec Lansing learnt the importance of marketing with its failed VoicePod digital recorder. As the leading maker of computer speakers, Altec was sure it had a hit on its hands with its innovative recorder that attached audio messages to e-mail.
PC World magazine said the VoicePod looked like ‘a mouse on steroids – a lot of steroids – and promised to make your voice dramatically more helpful as a tool for the PC.’ Gone, said Altec, are the days of unnecessary typing and fumbling for multimedia controls as its device offered the benefits of simple installation and use. VoicePod let users record and attach voice files to documents and e-mail messages with a few simple pushes of a button. There was another handy feature of the VoicePod: personal to-do lists. Users could dictate a short message to themselves and then save it.
The design was also technologically advanced as it exploited the company’s ‘signal processing technologies’ that used noise removal filters and other technology to allow for minimum background noise and clear recording. ‘With these features, the VoicePod could be a sound investment,’ reckoned PC World. Not enough computer users agreed.