It takes hard work, big ideas, precise timing and good luck to turn the fortunes of a failing business around
What do tech giant Apple, Old Spice aftershave and former US vice-president Al Gore have in common?
The answer, to what may at first seem a bamboozling poser, is that they have all staged unexpected comebacks.
Gore is entitled to take most of the credit for his rebirth as a high-profile environmentalist after a narrow loss to George W Bush in the US presidential election of 2000. But what about the brands written off as gone? Everyone loves a comeback. But it's not easy - it takes hard work, big ideas, precise timing and good luck.
Apple has had one of the most dramatic comebacks in the past 30 years. The firm, which first changed computing with the Apple II in 1977, went public in 1980 in one of the biggest initial public offerings ever at the time. But by 1993, Apple was operating at a loss as it struggled with competition from Microsoft's Windows, parts shortages and mistakes in predicting customer demand.
The company continued its decline until Steve Jobs, the co-founder who left acrimoniously left Apple in 1985, returned in 1997 - starting a turnaround that led to the iPod, iPhone and iPad. These made Apple one of the world's most profitable brands. It made $25.9 billion in its most recent fiscal year. Another brand that has been successfully spiced up is Old Spice - a 70-year-old brand that young people generally associated with their fathers.
All that changed in 2008, when new competition in the men's spray and shower gel category caused Old Spice owner Procter & Gamble to revamp the brand. A quirky "Smell Like a Man" ad campaign launched in 2010 and became a viral hit, sparking sales and brand recognition. The campaign was a success: Old Spice body wash sales grew 27 per cent in the six months.
Cadillac's turnaround has been much slower. Parent company General Motors' efforts to remake the brand from a stodgy one that attracts old fogies to a hipper car company have evolved over the past decade or so. The company improved its Escalade SUV (left), which it first rolled out in 1999. As a result, it has become wildly popular among luxury buyers, including sports stars and hip-hop artists. Because of the brand's efforts, the average age of a Cadillac driver has been dropping, slowly but surely.
Strugglers that want to emulate such firms need a "story that people care about", says Allen Adamson, of branding firm Landor Associates. "Without that, it's 'I've heard of that, but who cares?' Marketers that have come up with the right story can revitalise their brand."
© 7Days 2012
