All Roads Lead Back to Brand
When the next crisis arrives, how will your brand weather the storm? That’s the question every company must face at some point. Recently, Urban Outfitters, Bath & Body Works, and Starbucks all had to answer that call when faced with some serious challenges to their core business. How are they doing it, and what lessons can be learned from their example?
Each company is leaning heavily on brand fundamentals to drive their renaissance in uncertain times. To get that opportunity though, you have to have a sound brand foundation. If you haven’t built that, you might not get the chance to bounce back.
Recovery with Urban Outfitters’ Pillars
Urban Outfitters is taking a close look in the mirror. Faced with declining market share and losing connection with its core customer, Urban Outfitters is taking aim at Gen Z. They’re focusing on five brand pillars to help stabilize after a rough year.
Identify target customer and market toward them.
Lower prices.
Strengthen leadership team.
Add new products.
Rethink retail locations.
Targeting suburban and college-age consumers is new for this historically edgy brand, but Urban’s aim is to drive sales by repositioning itself as a relatable, accessible choice in both style and price. By creating experiences that resonate with this diverse crowd, Urban is tapping into their existing core idea that a well-defined and reimagined brand identity can meet new customer needs and ultimately improve revenue and market share.
Resilience through Bath & Body Works’ Apology and Amends
We’ve all been there, a snafu no one saw coming, but in retrospect, probably should have. How to bounce back? This is exactly what’s facing the team at Bath & Body Works. They released a new candle design and almost immediately received complaints. Many customers took offense and questioned the sensitivity of a candle label that was supposed to look like a snowflake and instead resembled a certain white supremacist group’s hoods.
BBW’s response? A swift yet sincere apology and the immediate removal of the offending product. The retailer will continue to lean into their popular customer loyalty programs as well. They cater to this group because they’re responsible for 4 out of 5 of the company’s sales. It is undoubtedly easier to win back customers who were invested with the brand to begin with. Their plan to continue to add value, lean into the familiarity and brand identity is the ultimate example of resilience based on a firm foundation.
Roots and Retrenchment with Starbucks
At Starbucks, the brand experience is everything. And their leadership realized that recently they’ve been falling short. Relying on their mobile app to offer deals and rewards is affecting the in-store experience negatively by overwhelming baristas with big promotions. And the product has been inconsistent at times.
Historically, they’ve always charged a premium—proof of the loyalty their customer base has to the brand’s core experience. But the deals and discounts have proven too much. So, they’re cutting back. Starbucks plans to lean into the “premium” aspect of their brand, and that will include the prices. Whether in-store or on the go, Starbucks is doubling down on the value of “the Starbucks experience.” Through product consistency, digital innovations, and an emphasis on quality, Starbucks aims to reinforce its brand strength. They want to meet customers where their high expectations live. They’re hoping that leaning in to that aspect of their brand will enable them to maintain higher price points and greater overall satisfaction.
In each of these cases, we see brands pulling through adversity by deepening their commitment to their core values OR rethinking their target audience and how they connect. So, while branding is fundamental to corporate strategy, it is also the foundational tool of recovery when things don’t go as planned. In these three examples, and for most businesses, the message is clear: all roads lead back to brand.
