A luta (dis)continua – the consumer struggle of discontinued brands
South African consumers have had a lot to contend with in recent months. In addition to the obvious concerns about our health, the lockdown has dealt a devastating blow to the livelihoods of millions. Government flip-flopping on some key regulations had citizens up in arms, but this response pales in comparison to the public backlash against the all-out ban on certain categories of goods (cigarettes, alcohol and it seems, consistent supply of electricity).
South Africans are renowned for our upbeat nature and ability to laugh in the face of adversity. But recent developments on the local brand landscape have pushed things a little too far. Without any word of warning, the much-loved local snack Ghost Pops vanished from supermarket shelves. Just days later, Nestle broke the news (and many hearts) with its announcement that it would cease production of Chocolate Log, the chocolate-coated, creamy marshmallow-centred wafer delight.
“How much more can we take?” expressed fans on social media.
This isn’t the first time that devotees have struggled through the loss of a much-loved brand, and it certainly won’t be the last. I thought it might be worth exploring the rise and fall of some consumer favourites of years gone by, and try rationalise the cruel-hearted decisions brand owners choose to make in the name of profitability.
I’ll begin with the tale of a true local icon which graced SA as far back as the late 1800’s: Lion Lager. For decades, Lion was the leading brand in the brewing giant’s portfolio. As time went by, consumers evolved, and Lion’s proposition overlapped a little too much with that of Castle’s – and by the 90’s the brand entered into decline. Lion’s market share eventually reached a low of just 3,5%. SABreweries initiated a drastic repositioning, which involved limited retention of the original brand’s make-up: new target market, new recipe, new packaging, new messaging. This attempt to rejuvenate the brand failed, and Lion Lager was discontinued in early 2003. In 2006, Lion Lager was nominated in the Markinor/Sunday Times Top Brands survey as one of the top three brands that South Africans missed most. A few short months later, Lion Lager returned to our shelves in a format reminiscent of its original identity as a Limited Edition (I suspect for no other reason but to protect the brand’s trademark), and pops up every now and then to remind us that what was, was.
The rise and fall of Lion Lager demonstrates how portfolio strategy comes in handy: it gives the brand owner a coordinated view of its assets and how they address the market, with a view to maximizing returns. In cases where there is substantial overlap, companies can choose not to spend on two brands when one could do the whole job (or enough of it, at least, to make good financial sense).
Further afield many Americans are celebrating the comeback of the Ford Bronco, after a 25-year absence. The Bronco enjoyed a run after it was first introduced in 1965, earning legendary status as the off-roader of choice for much of its life. In excess of 1.1 million Broncos were produced in its 30-year run. But every dog has its day, and the Bronco was discontinued in 1996 owing to declining sales, at a time when just about every vehicle brand had introduced its own SUV. Ford’s decision to bring back the Bronco suggests that it has a role to play in its current and future portfolio – in which case, bringing back the Bronco with all its residual equity seems to be a strong play.
I may take a tongue-in-cheek view on this topic, but in reality, portfolio strategy is serious business. An effective brand portfolio strategy is probably the one aspect of marketing which gets a Board to sit up and take notice, because its impact on profitability is so profound. It is a challenge which many companies don’t get right, resulting in confused consumers and misallocation of resources.
So when Simba has to make a decision to temporarily halt production on one of its brands, and Ghost Pops doesn’t contribute sufficiently to profitability to make the cut despite it being your personal favourite, or when Nestle outright discontinues your go-to countline, don’t take it personally. Brands are business assets.
The struggle is real out there in the supermarket. Best you hit the aisles before residual stock vanishes into the pantries of the fastest shoppers.
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Image credit Thought Catalog on Unsplash
