The return of a tasty brand – glazed Krispy Kreme doughnuts are back

Growing up in the Deep South, I have fond childhood memories of watching warm glazed doughnuts coming off of a conveyor belt. They would be eaten while still warm. Eventually Krispy Kreme franchises opened throughout the US and the country found itself anticipating new locations. People from all walks of life were lining up for those indescribable delights. Then, almost overnight, stores began closing and the company found itself filing for Chapter 11 bankruptcy. What had once been a Wall Street darling became irrelevant.

Much to my surprise, Krispy Kreme has been a trending topic across many social networks today. The company has expanded into Asia and its stock risen by over 18% in the past month. The company has appeared to have reached a sound fiscal position. Philadelphia, which had large locations shut down in the city and suburbs, will be welcoming back Krispy Kreme. Keep your eyes open for the red light signifying that hot doughnuts are about to be sold. Brands can come back so watch your calories.

Nothing goes better with Phillies baseball than a Tastykake, however…

We watch Phillies baseball on television, listen to games on the radio. We can recite the Jingle,

Nothing goes better with Phillies baseball than a Tastykake.

Yet, we go to Citizen’s ballpark and a Tastykake cannot be found. So, recently during a ballgame, I expressed this sentiment on twitter. I received a response from The Tasty Baking Co with a note saying, “@SteveLevine1: Here is why: Inquirer: Can’t Get Tastykake at Citizen’s Park about 19 hours ago via Seesmic twhirl in reply to SteveLevine1″

Weather is being blamed as the culprit. In a statement, the company (Tasty Baking Co) said,

Until we can absolutely ensure that the product will remain fresh and delicious in the heat, we won’t offer a subpar product to Tastykake or Phillies fans.

Is there something rotten in Philadelphia? What do you think? Philly Phanatic, please help us.

Saddens me to have been right this time

PepsiCo Conducts Review for $25M Tropicana Pure Premium Account – Advertising Age – Agency News 

Over one year ago, I blogged about how one of my favorite brands, Tropicana, had lost its way.  Tropicana Orange Juice, in the bright container, became like all other generic brands as it changed over to no frills-like packaging. The liquid product had not changed but something did in fact change. A brand that many of us had come to trust, recognize, and easily find on our store shelves was no longer easy to find. When we did stumble upon it, the relationship had changed. It no longer felt familiar. Tropicana did not even feel new and improved.

As a marketing research professional AND consumer, this felt like a brand totally out of touch. Had competent marketing research been done, it would have been noticeable immediately that something was not working.  In a brief period of time, Tropicana lost market share and more importantly lost the special relationship it had with the consumer. A brand that had been built over the course of decades had been taken down in weeks. All due to treating the customer as irrelevant.

In order to better understand the rise and fall of the Tropicana brand, following are some key milestones:

• 1954 flash pasteurization preserved fresh taste
• Throughout the 1960’s and 1970’s shipping innovations
• 1969 Tropicana went public and appears on the NY stock exchange
• 1998 Tropicana acquired by Pepsico
• February 2009 the Tropicana package is redesigned
• April 2009 sales fall by 20% and the former packaging design is restored

It is fascinating that when asked about the sales decline Tropicana executives still do not fess up to the packaging fiasco. There have been many great brands that have faced challenges and they have bounced back. Tropicana…there is a lesson to be learned….Listen to  how other brands have handled obstacles and listen to your customers. 

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Technorati Tags: Tropicana,orange juice,packaging,listening,marketing research

Market Research, Packaging, and the Customer

Great products and brands have significance in our lives.  We know that we can rely on these products; they consistently perform and bring us satisfation and happiness.   Our feelings have grown over time due to the total customer experience derived from the product.  These feelings are a function of both the product and its packaging.  After all, it is difficult to think of situations where we love the product, dislike the packaging, and feel this high degree of total satisfaction.

Recently, one of my all time favorite products changed their packaging.  Tropicana Orange Juice has been a staple in my life for a long period of time.  I know that when I open a carton of Tropicana it will taste fresh, have the right blend of pulp, and be pure.  I have formed a bond with the product.  I also know that when I see the package it will stand out from others on the shelf.  Regardless where I shopped, I knew that I could quickly locate my preferred orange juice.

This all seemed to change overnight.  The reliable staple I had grown to love became repackaged in a more sterile, impersonal way.  I lost my identification with the product and brand. These feelings are not just attributed to me but to many loyal customers. So, what could have been done?  Simply put…effective marketing research.

Merely going out and obtaining input on package designs may have shed some light; however, what about diving deeper with loyal customers?  Was feedback from the consumer elicited in an objective manner?  Objectivity is key.  An advertising agency designing and/or conducting research where there is a subjective agenda does not work.  Going to loyal customers and getting objective, honest insight does work.

To date, the apparent misguided efforts have led to poor decisions.  These missteps have been a function of a flawed research design and, in turn, resulted in losses of customer share and revenue. The New York Times says that “loyal” Tropicana customers are up in arms about the new packaging, refrred to it as ”ugly,” “generic” and claiming that it looks like a store (generic) brand. Others say that the packaging makes it difficult to distinguish between the different varieties of orange juice. A spokesperson indicated that this is the sentiment of a small fraction of vocal dissatisfied customers.  If so, then why has market share fallen?

At the end of the day, customers remain as the ultimate decision makers. While focusing solely on reinventing the brand, Tropicana ignored the total customer experience their customers enjoyed when interacting with the brand.

I offer an idea for a new Ad campaign, “We listened, recognized our mistake, and have brought back that package you have always loved with that same incredible product.”

Do you think it may sell?