In an era where new tech companies and start-ups are all the rage, only a select few of the world’s leading brands have been able to bounce back from years of decline and reclaim their former glory. Here’s how they have done it.
Starbucks
While Starbuck’s rapid growth since the early 2000s may have seemed like a great thing for the business, the reality is that the store’s overexpansion caused major problems. By late 2008, net income had plummeted, dropping the company’s stock price in half. CEO Howard Schultz turned things around by shutting down 900 underperforming stores, retraining baristas in all 7,100 U.S. stores in the art of pulling espresso, and he introduced free Wi-Fi at all Starbucks locations in 2010. Today, the Starbucks brand has reemerged as the most powerful brand in coffee, and the company looks poised to keep it that way for years to come.
Old Spice
Back in the 70’s, Old Spice was the top brand in its product class. By the 1990s, however, the Old Spice brand had aged along with its customer base and had lost its appeal. At the time, Old Spice was simply a crusty old bottle in your dad’s bathroom. Now, thanks to some outrageously creative television advertising and an expanded line of men’s products targeted at younger consumers, Old Spice has become relevant again. Pabst Blue Ribbon Milwaukee’s classic Pabst Blue Ribbon lager has been an American icon since the beer was awarded its first “Blue Ribbon” back in 1876. While the beer remained immensely popular through the 50s and 60s, by the 1990s, the brew’s image had gone flat. The company hired a new CEO and young brand manager, who noticed that beer sales remained healthy in the hipster hub of Portland, Oregon. Young people embraced the brand due to its no frills, classic image and affordability. PBR also began to sponsor cool events like gallery openings, rather than buy traditional ads. Since 2001, national sales have increased by 165%.
J.Crew
J.Crew has become famous for its turnaround from an uncool American classics retailer to a fashion-forward brand that shows at New York Fashion Week. The way they have done so is hardly a secret. The company overhauled quality across the board, upgrading everything from the cashmere used for sweaters to the light fixtures placed in stores. After cycling through three CEOs from 1998 to 2003, Mickey Drexler arrived and invested $10 million of his personal cash into J.Crew for a 22% stake in the company and the title of CEO. He quickly discovered Jenna Lyons, who had been mastering her craft in the company’s design department for 13 years. Mickey allowed her to become the driving creative force at J.Crew, creating a more upscale line that resonates with fashionable young shoppers.
Converse
The ruler of the athletic market for decades, Converse began to take a backseat to Nike and Adidas during the 1970s. Converse gradually faded by the turn of the century, and the company filed for bankruptcy in 2001. In 2003, Nike actually bought out Converse and made the brand less about sports and more about style. Converse capitalized upon their association with cool musicians and built its new reputation as a fashion and lifestyle brand with hip initiatives like Rubber Tracks, a recording studio in Brooklyn. In 2014, revenues eclipsed $1.7 billion, which was up $205 million in 2003.
Lego
We are all familiar with Legos, but the toymaker faced a major crisis in the 1990s as the rise of video games and other toy competition threatened the company’s viability. Lego even lost money in 1998, for the first time in history. Jorgen Vig Knudstorp was hired in 2004, to help piece things back together, and his effective cost cuts and new popular Lego lines, such as Ninjago, worked wonders. Lego’s newfound popularity even led to the creation of a new Lego movie, which aired in theatres across the country. By 2013, Lego was the world’s most profitable toymaker. Not bad for a company that almost went under 15 years prior.
Target
Formerly just another big-box value store, Target rethought its image in the 2000s and started to lure more high-end customers willing to pay a premium for a better superstore experience. While Wal-Mart remains the biggest box store giant in America, their focus on everyday low prices has left many consumers craving a nicer store environment and more quality merchandise. Target’s new strategy was matched with a rapid expansion, and the company is now a nationwide mass-appeal retailer delivering everyday needs in style. In 2014, company sales reached more than 72 billion dollars.
Disney Animation
While Disney may have still been the best-known name in children’s entertainment, its world-class animation division was not faring so well in the beginning of the 21st century. Successes, such as The Lion King in the 1990s, were followed by box office duds, like Hercules and Fantasia 2000. As a result, the company underwent a major downsizing in the early 2000s. Disney’s acquisition of Pixar and leadership changes by Ed Catmull and John Lasseter in 2006 helped the studio roar back to relevance with fantastic hits, such as Frozen in 2013.
– Contributed by Brian Kenny @brandrenew