Monday, 6 April 2009

Tropicana Line's Sales Plunge 20% Post-Rebranding



Interesting article on how a disastrous re-branding of Tropicana's famous "orange with a straw" caused sales to plunge 20% in less than 7 weeks:


from adage.com

NEW YORK (AdAge.com) -- Tropicana's rebranding debacle did more than create a customer-relations fiasco. It hit the brand in the wallet.


The new Tropicana Pure Premium packaging had been on the market less than two months before the company scrapped the redesign.

After its package redesign, sales of the Tropicana Pure Premium line plummeted 20% between Jan. 1 and Feb. 22, costing the brand tens of millions of dollars. On Feb. 23, the company announced it would bow to consumer demand and scrap the new packaging, designed by Peter Arnell. It had been on the market less than two months.

A swift reversal

Now that the numbers are out, it's clear why PepsiCo's Tropicana moved as fast as it did. According to Information Resources Inc., unit sales dropped 20%, while dollar sales decreased 19%, or roughly $33 million, to $137 million between Jan. 1 and Feb. 22. Moreover, several of Tropicana's competitors appear to have benefited from the misstep, notably Minute Maid, Florida's Natural and Tree Ripe. Varieties within each of those brands posted double-digit unit sales increases during the period. Private-label products also saw an increase during the period, in keeping with broader trends in the food and beverage space.

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