Ready for another top-10 list? Kelly O’Keefe, chairman/CEO of Atlanta-based brand strategy firm Emergence, has put together his list of the 10 biggest branding blunders of 2004. And the winners (losers) are:
1. Barbie breaking up with Ken. Two days before Valentine’s Day, Mattel announced that its iconic Barbie doll was breaking up with ken, her beau of 43 years. That, coupled with Mattel’s decision to make teen performer Hillary Duff—whose box office mojo proved less than mighty–the brand’s spokesperson, contributed to a 13% decline in third-quarter Barbie sales, according to O’Keefe. “Just look at the direction Mattel has taken Barbie recently,” O’Keefe added in a statement. “What parent wants their little girl playing with ‘Trashy Barbie’ or ‘Sleazy Easy Barbie?’ Mattel embarrassed itself with this move and tried to save some face by bringing in a bubble-gum pop princess.”
2. Wendy’s “unofficial spokesperson” campaign. The fast-food chain’s effort to replace the late Dave Thomas with “Mr. Wendy” was a flop, according to O’Keefe: “It was a misguided attempt at being cute when Wendy’s needed to remind consumers that its food is still better than the competition’s, despite recent focus on health and quality at McDonald’s and Burger King.”
3. The Vioxx debacle. “What damages [parent company] Merck the most is the question of what the company knew and when,” said O’Keefe. “It apparently ignored some of the warning signs an underestimated the challenges it faced. This likely is going to get very nasty, and odds are good the public will have a long memory.”
4. American athletes as brands. The Detroit Pistons basketbrawl. Barry Bonds, Jason Giambi, and the steroids controversy. And let’s not forget the Super Bowl half-time show.
5. CBS. Not only did CBS air the Super Bowl made infamous by Janet Jackson’s “wardrobe malfunction,” but the network also had to contend with the matter of Dan Rather’s erroneous reporting regarding George W. Bush’s National Guard service. “These two incidents made the network a laughing stock,” O’Keefe said. “The Super Bowl theatrics changed live TV as we know it, and Rather’s gaffe was a blow to his and CBS News’ credibility.”
6. Anheuser-Busch’s reaction to Miller. The beer company reacted to advertisements from rival SAB Miller with its own commercials. But by reacting defensively, according to O’Keefe, Anheuser contributed to declining sales of its Bud Light brand: “Anheuser-Busch took its eye off the ball – its own products – and began watching and reacting to its smaller rival. Instead of taking care of business as usual, it has been on its heels and actually may have brought more attention to its competitor by engaging this feud.”
7. Fannie Mae’s financial follies. In September the mortgage company announced that the SEC was investigating its accounting policies. Two months later, the Ohio attorney general filed a class-action lawsuit accusing the company of securities fraud.
8. Pier 1 Imports’ ever-changing branding. At the end of 2003, the furniture retailer replaced spokesperson Kirstie Alley with Thom Filicia of “Queer Eye for the Straight Guy.” Fine. But after a 43% plummet in second-quarter earnings, Pier 1 announced that it was seeking a new ad agency, which most likely means more changes to its branding efforts. Said O’Keefe: “Corporate marketers and CEOs assume that if numbers aren’t great, it must be time to can the ad agency and start anew. Brands aren’t built by constantly churning slogans, campaigns and agencies.”
9. Dell’s lack of support for Dell DJ. Introduced in late 2003, the Dell DJ was meant to take market share away from Apple’s iPod. But the computer manufacturer/marketer put little marketing behind the DJ. The iPod, meanwhile, is all but ubiquitous.
10. Krispy Kreme’s fall from grace. Profit warnings, suspect franchise repurchases, and rumors of instability in the executive suite have hurt the doughnut firm, especially among investors.