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| Old and new orange juice cans |
Companies work hard and spend lots of money on brand recognition.
The reason behind it is because when people get used to a brand they tend to stick with it, and they become loyal customers.
Although people are not consciously looking at logos, their buying habits are formed, and they do not like changes, especially for essentials.
It is not just the company name that people get used to, but even the design of the product. When Tropicana changed their orange juice bottle, customers moved to a different brand with a more familiar look.
The rebranding of Tropicana did more than create a customer-relations fiasco. It left a big dent in their portfolio.
After its package redesign, sales of the Tropicana Pure Premium orange juice line plummeted 20 percent, costing the brand tens of millions of dollars.
Without saying a word, customers have spoken with their wallets. After the new design had been on the shelves for less than two months, the company has announced it will scrap the new packaging design.
The company acted fast as they have reportedly lost 20 percent, or about $33 million during the two months.
Several of their competitors have benefited from the debacle, notably Minute Maid, Florida's Natural, and Tree Ripe. Varieties within each of those brands posted double-digit gains in sales during the period.