In 2003, McDonald’s was, as BusinessWeek stated, “In Hamburger Hell.” McDonald’s subsequent turnaround had many facets. One of McDonald’s critical strategies was modernizing the brand-business without jeopardizing its heritage. In other words, McDonald’s aimed to evolve its heritage for today without losing its roots from yesterday.
Rather than continually striving for technological advances, brands should shift their focus toward how their products and services can enhance the social relationships of consumers.
The outcry faced by Delta Air Lines over proposed changes in its SkyMiles and SkyClub programs last Fall is a good reminder of the risks faced by brands looking to take value out of their products and services.
UPS ditched its CMO. And, UPS eliminated the CMO role completely. While it is true that marketing does not solve every organizational problem, it is also true that the CMO role, when executed properly, is a necessity.
Imagine yourself in this situation: You sell a product that’s essentially identical to competitors’ offerings, at similar pricing. You have a massive core business serving a market that’s becoming gradually outmoded. What do you do to differentiate and grow?
