This article is by our guest writer Sandra Hajda, a freelance journalist, publisher and avid investor. Sandra resides in Melbourne and can be contacted at hajdasandra@hotmail.com.
History shows that a bad sales run is not the end of the world. One clever marketing move can pull a company out of a slump and back into business.
1. Bauer Hockey
The Challenge:
Bauer should have had it made – in 1927 they were the first company to begin producing hockey skates in which the blade was attached to the boot!
Like any company that produces a jaw-dropping innovation, Bauer enjoyed a brief, initial dream run. It lasted until the 1930s, when the legendary George Tackaberry boot arrived on the scene. The Tackaberry boot (with its own, admittedly less dramatic innovation: the CCM Pro-Lite blade) was worn by all NHL scoring champions between 1939 and 1969.
The Move:
Bauer rose to the top through innovation, and innovation would get them back there. The company returned to prominence after paying superstar Bobby Hull to promote their products.
These days we’d call it ‘good old-fashioned celebrity endorsement’. Back then it was a revelation – this was one of the first companies to pay a superstar to endorse their product. It paid off enormously, ushering in a new era for Bauer.
The rest, as they say, is history.
Today:
Bauer are still innovating – they’ve just released the Vapor X:60, a revolutionary new stick that’s ‘great news for goal scorers’.
2. Guess Jeans
The Challenge:
During the 80s Guess was one of the most popular brands of jeans. When the nineties arrived, so did some stiff competition (Calvin Klein, Diesel, Tommy Hilfiger, and Gap started rising in popularity) and Guess’ stock dropped dramatically.
Guess was also taking a beating in the press. Awareness of sweatshop expolitation was rising in America, and they were recognised as a major offender in this area. Guess contractors were facing litigation for failing to pay their employees minimum wage or provide adequate overtime – a nasty kind of company.
The Move:
By the 00s the sweatshop controversy of the 1990s was largely forgotten. Guess seized the opportunity to execute its own revival, the only way a fashion house knows how: a dramatic new look and style.
Marketing ads grew increasingly sexier – the Guess girl as we know her today (pouty lipped, shiny-skinned, luxuriously attired) emerged. Sales skyrocketed, a new market was tapped, and provocative billboards became a Guess mainstay. Many a male driver probably came close to his end ogling an 8-foot tall Guess girl.
Today:
Guess are making moves into the menswear market. In 2006 they introduced the Marciano men’s line, available exclusively on the website Guess.com. A line of men’s shoes (from sandals to dress shoes) is also beginning to enjoy success after a slow 2006 start.
3. The Body Shop
The Challenge:
In the early years Body Shop founder Anita Roddick had it made – she had a talented cosmetologist (Mark Constantine) who helped her create ‘natural’ (by the standards of the time) products with fashionable colours and fragrances.
When Constantine left in the 80s (the cosmetologist had entrepreneurial dreams of his own – he went on to found Lush Cosmetics) he left Roddick directionless. What would she do? How could the fledgling company make its mark?
The Move:
In 1986 the Body Shop began to do something very curious with its promotions. The marketing started to sound less like ‘marketing’ and more like activism. Educational posters about social causes appeared in shop wondows. Local charity and community events were sponsored. The company’s ‘No Animal Testing’ policy was emphasised at every turn. A ‘Body Shop Foundation’ emerged, and an alliance with Greenpeace was secured.
Every new product promotion was tied to a social cause. Jojoba Oil, for example, would help ‘save the whale’ (it was a substitute for whale spermaceti).
Roddick built a reputation for innovation, integrity and social responsibility, and the alignment with social causes generated massive free publicity.
When the Body Shop’s stock was floated on the London Exchange its price increased by 500%. Body Shop shares earned a nickname: ‘the shares that defy gravity’.
Today:
The Body Shop is now owned by the L’Oreal corporate group. This has attracted criticism (L’Oreal has a history of animal testing) but L’Oreal claims it has not tested on animals since 1989 – around the time it joined forces with Roddick. Roddick has told reporters she sees herself as ‘a kind of “trojan horse” who by selling her business to a huge firm will be able to influence the decisions it makes’.
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