How Classic Brands Adapt or Fade Away

For classic brands that have a foothold in the marketplace, changes are not always welcome. When major shifts occur, established brands are forced to adapt or fade into oblivion.

One of the biggest mistakes in brand strategy in recent history is that of the longstanding retailer JCPenney. This retailer attempted to do away with coupons and sales in favor of reducing prices across the board. The company also tried to update its stores by offering newer brands and doing away with popular items. Customers did not take the changes very well, resulting in a loss of billions of dollars and the exit of CEO Ron Johnson. Executives have gone back to the drawing board to develop a new brand strategy, one facet of which involves bringing in new products by Martha Stewart and other designers.

Some retailers are now facing the challenge of adapting to the needs of emerging markets. Despite the popularity of Apple products in the United States, market saturation will eventually force the tech giant to try to sell smartphones and other devices to customers in emerging markets in Asia. Because customers in these markets will not want to spend five hundred dollars for a smartphone, Apple will have to adjust its brand strategy by thinking of ways to lower production costs to enable the company to offer less-expensive products. If Apple does not adapt to market changes, the company will likely lose out on sales in some countries.

Kmart and Sears are also examples of companies that had to adjust their brand marketing strategy. After filing for bankruptcy, Kmart merged with classic retailer Sears in 2005. Sears, which has been struggling partly due to the closure of a number of malls, has not been able to adapt to market changes very well during the subsequent eight years. Some stores have a hard time drawing customers because the stores need repairs and updates; unhappy sales associates are also a part of the problem.

Amazon is a great example of a company that adjusted its brand strategy and succeeded. The retailer got its start as an online bookstore competing with Borders and Barnes & Noble. Amazon's founder, Jeff Bezos, recognized the need for an online retailer that could offer competitive prices and fast shipping on many different items. Bezos took advantage of advances in technology to create the Amazon consumers know and love today.

Brand marketing strategy is not set in stone, so you must be willing to adjust your strategy if you notice market changes affecting your business. If your company does not adapt to retail trends and changing markets, then your brand strategy will likely fail. Companies that adapt to such changes will continue to move products and serve consumers.

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