brand mistakes

3 Business Moves to Regret

Business aren’t infallible. CEOs tend to make as many mistakes as any employee of a company. Some of these mistakes, though, can be rather costly. These errors in judgment may have cost companies millions–or even billions.

Google It

Years ago, Google was in trouble. They had, shockingly, arrived too late on the search engine scene, and they struggled with their competitors. So founders Sergey Brin and Larry Page began looking to sell Google to a company called Excite. And CEO George Bell, when offered Google for $750,000, said no.

Depending on how you look at it, this was a very good move for Google and a very bad move for Bell. In the following years, very, very few search engines can stand up to Google. Their name has even entered our lexicon as a synonym for “to look up.” And Excite is nowhere to be seen.

Monday Night Football

In 1970, NFL commissioner Pete Rozelle came up with a weekly TV program we now know as “Monday Night Football.” He offered the chance to air weekly football games to CBS and NBC, two of the three biggest networks. But both of them balked. They didn’t dare move their popular programs, like The Doris Day Show, off of Monday night! That would be a ridiculous move!

ABC, however, didn’t think so. They took a chance on the NFL. Now, over 10 million viewers tune in on Monday Night Football. Granted, it’s now on ESPN. But for a long time ABC couldn’t help but enjoy their wins while CBS and NBC made quite the fumble.

J. C. Penny is not Apple

Ron Johnson came to J. C. Penny in 2011, hoping to breathe new life into the company. Johnson had wild success with Apple stores, and hoped to use some of those same tricks on the big chain. He began by removing the coupons and sales under the claim that these were “fake prices,” trying to be more “real” with their customer base. This would work with Apple products. But, unfortunately, J. C. Penny is not Apple.

J. C. Penny customers liked the feeling of saving money. Buying from this store, unlike Apple, is not a status symbol. People who shop at J. C. Penny generally look for deals that fit in their budgets, rather than shiny trinkets. And the younger generation wasn’t having it, either. They were going to online businesses, like Amazon.

The board swiftly discharged Johnson. Johnson still believes this model would have worked had the company kept him on. However, this is not likely, as the company’s stock has fallen by 85% since then.

 

What can we learn from these companies? One, that no business is perfect. Every company will make mistakes. Second, it’s important to learn that sometimes, risks are worth a second look. You may want to take them. Or, in the case of trying to change your model drastically, perhaps you should avoid them.

Blunders That Killed These 5 Franchises

Failure is the best teacher. For some, that lesson comes harder, and leads to the closing of a business. But these former business owners are not the only ones who can learn from their mistakes. Other franchisors can have that chance too. Here’s a list of franchises we can learn from, and why they failed.

Branding Blunders

Sambo’s

Opening in 1957, Sambo’s restaurants faced controversy early on. Despite their claim that “Sambo” came from the founders’ names, it couldn’t justify the caricature of Li’l Black Sambo so easily. Rebranding could have saved this company had they done it earlier, but even trying to become “The Jolly Tiger” couldn’t undo the damage of poor corporate-level decisions that made it grow too quickly.

White Tower

Seeing the popularity of White Castle, John E. Saxe decided to imitate. They copied much of White Castle, down to the menu, advertising, and architecture of the restaurant. But as popular as this might have made them, they would have been better off distancing themselves a little further. Legal action from the original chain made them change their branding tune, and this ultimately killed White Tower.

Overreaching

Burger Chef

This food chain, popular in the 60s and 70s, once was a real challenger to McDonald’s. They were the first to develop a flamed-broiled burger, a self-serve bar, value combos, and a “Funmeal.” However, this company closed its doors for good in 1996. Why did it fail? It tried to do too much too fast. This rapid expansion helped bring Burger Chef to its knees.

Though you’ve got great ideas and you need to get them out before your competitors, make sure you’re not growing faster than you can handle!

Competition

Other franchisors will always see your success and try to imitate it. To avoid going under or losing customers to them, you have to stay on the edge in product and service.

Henry’s Hamburgers

Another once-challenger to the might of McDonald’s, Henry’s had over 200 restaurants by the early 60s. That’s more than McDonald’s had at the same time! But they could not adapt to the changing industry, as dozens of other hamburger chains began popping up. For example, as other chains began adding drive-thru pickup, Henry’s failed to do so. Plus, they had the disturbing controversy of possibly using horse meat.

Blockbuster

With the advent of streaming services and more convenient DVD rentals like Redbox, the once-common Blockbuster began shutting down in 2013, after going bankrupt in 2010. Their attempt to stick to their old model backfired, closing the vast majority of their stores. Imagine if Blockbuster had changed with the times instead of holding onto the DVD rental model. We might still see them around!

 

Divvy can help you avoid any social media or printing blunders. Just contact us today to learn how we can help your franchise succeed!

4 More Mistakes Franchises Make with Social Media

Social media can drive a third of your referral traffic, and is a great way to grow and market your brand. After all, most people have a smartphone and spend up to 30 percent of their time online. But social media is often underused, overused, or misused in promotion. Many franchisors or brand owners overlook the social aspect of social media, or fail to protect their brand when posting. Last time, we posted 4 major social media mistakes you may be making online. Here are four more you should avoid to keep your social media platforms friendly and, well, social.

1. Being inconsistent

Inconsistency–such as changing voices, long silences between posts, and changing responses to common questions–tend to drive away potential followers. Consistent schedules and voices, however, keep a brand and its content strong. When planning your social media, keep a schedule for your post times and dates. Find a voice and style of content that works well with your following and that will drive future fans your way.

However, when planning content, be careful not to stay so “consistent” that you fall into a rut. Post a wide variety of content to appeal to all your followers, and to encourage them to spread the word.

2. Responding inappropriately to negative feedback

We warned against ignoring feedback in our previous article. This is, naturally, very dangerous to do with your customers. But you should also avoid simply deleting comments or getting into an emotional argument. Negative feedback can carry strong emotions on the customer’s end, and you should be careful not to use those same emotions. Getting into a battle–especially a visible one on your Facebook page–can only lead to disaster.

It will also damage your brand to be inconsistent, canned, or unclear in how you respond. Work with your social media team to create guidelines for negative comments and reviews. This consistency will help your customers feel they are being treated fairly, especially if you fix response times to within a certain window.

3. Buying likes

Many brands and blogs still believe that they can purchase followers and likes to pad their numbers and gain higher notice or credibility. However, this actually damages your brand more than it can help. The number one reason is that fake likes and fans cannot spread the word, nor boost actual interactions. If you have high numbers but little interaction, this puts out a signal to both the platform and to potential buyers or followers that your content is just not that interesting. Certain social media platforms can also delete your account if they find out you are purchasing fans.

4. Over-promoting your products

Social media marketing exists to grow your brand. So the occasional sales pitch meant to drive sales isn’t a bad thing. But you should be careful about the frequency of these ads and sales pitches. Remember, social media platforms are places to grow relationships, and relationships rarely form from an impersonal, loud, or repeating advertisement. Follow the 80/20 principle: post valuable content 80 percent of the time, and focus on product promotion no more than 20 percent of the time. Even better, focus on getting your fans into a marketing funnel so you never need to use your social media accounts for sales.

 

Overall, make sure your team is properly trained about social media and how to market effectively. Remember as well to treat your customers as if you were meeting them face-to-face. This can help you avoid the worst social media mistakes.