A while ago we started a new series analysing the most instructive repositioning case studies of all time, then forgot about it for five years. So here is the second article in the “series”, which we will attempt to continue more consistently than we have so far.
These posts focus on repositioning examples that show how brands have either succeeded or failed commercially as a result of redefining their brand territory.
Last time we wrote about GoPro and Lurpak. Today we take a look at Old Spice and Michelob Ultra, which both attracted younger audiences – one intentionally and the other rather by accident.
1. Old Spice
Old Spice was launched in 1937 as a female brand called Early American Old Spice. Old Spice for men was introduced almost a year later and quickly became the bigger of the two.
The repositioning of Old Spice is one of the most spectacular brand rejuvenation success stories of all time. The first changes were introduced at the product portfolio level, when Old Spice successfully added deodorants and body washes to its range. Until 2008, however, the brand was targeted primarily at older men and perceived as a gift product for fathers or even grandfathers. With increasing competition from brands aimed at a younger market (in particular Axe / Lynx and Dove Men+Care), Old Spice was losing relevance.
The new brand strategy was, to a large extent, based on the brand’s past values of masculinity and confidence (“the mark of a man”). The brand personality and tone of voice, however, changed entirely. Before the repositioning, “the Old Spice man” was a traditional, successful and self-confident “alpha male”; after, he became a man who, while still strong and masculine, is funny and does not take himself too seriously.
The changes to Old Spice’s brand strategy began in 2008, when the company failed to meet the sales targets for its “Glacial Falls” scent. With the help of Wieden + Kennedy, one of the world’s most awarded advertising agencies, Procter & Gamble (the owner of Old Spice) initiated a new chapter in Old Spice’s history. “Glacial Falls” was renamed “Swagger”, the product was given a distinct “swaggering” personality and a new, humorous campaign was launched, showing how Old Spice Swagger gives men confidence. This transition turned out to be a commercial success and encouraged P&G’s management to revamp the Old Spice umbrella brand.
Research uncovered a fact that shaped Old Spice’s communication strategy: around 60% of men’s body wash was bought by women. The new campaign was therefore aimed at women, for a product used by men.
In 2010, the company launched the now iconic “The Man Your Man Could Smell Like” campaign, followed, a few months later, by a highly successful social media campaign – a two-day marathon of Isaiah Mustafa’s personalised video responses to questions from celebrities and Old Spice followers. Jess Monsey, former Account Director at W+K, explained how the agency managed to turn the brand’s outdated character into an advantage: “A big question for us at the time was the name and whether the brand could be relevant to young men moving forward. An early and key decision was to turn this perceived weakness into a strength. With its 70-year brand heritage Old Spice was ‘experienced’ and well positioned to be an expert on masculinity and being a man.”
More than 15 years later, that positioning is still in use and Old Spice remains one of the leading men’s grooming brands in the US.
What’s the key lesson?
When a brand loses relevance but retains high awareness, rejuvenation can be an effective strategy to reach younger generations. Sometimes it requires a full repositioning and sometimes, like in Old Spice’s case, it can be done by building on existing brand equity and only changing the way the brand expresses itself.
2. Michelob Ultra
Michelob Ultra was launched in 2002 as a sub-brand of Michelob, which was best known for Michelob Original Lager (now discontinued), a heritage beer dating back to 1896 and positioned as a “draught beer for connoisseurs”. Initially, Michelob Ultra was created to satisfy the needs of an older audience, defined as active baby boomers, trying to lose weight using low-carb diets. Reportedly, August Anheuser Busch III (the company’s chairman at the time) came up with the idea himself and insisted on testing the new product on retirees in Florida.
From the start, Michelob Ultra’s proposition at product level was based on its low-carb, low-calorie content. In the US, it is a 4.2% beer, containing 95 calories and 2.6g of carbs per 12 fluid ounces (ca. 355ml); in the UK, its alcohol content is even lower, at 3.5% ABV. At launch, Michelob Ultra’s competitive advantage was communicated through the tagline, “Lose the carbs. Not the taste.” The new product quickly became a commercial success but, to the surprise of company executives, it resonated better with a different group of consumers than originally anticipated.
It transpired that Michelob Ultra managed to attract a much younger audience than expected – people in their 20s and 30s, aspiring to lead healthy lifestyles but also valuing fun and pleasure in life. Additionally, the brand emerged as a popular choice of beer among women.
When Michelob Ultra realised that its growth was coming from a different audience than the one the company had originally intended, it changed its strategy. The “low-carb, low-calorie content” proposition evolved from being the brand’s main message to becoming a reason to believe (RTB), supporting the benefit of a healthy and active lifestyle. The brand also started portraying younger people in its campaigns.
Michelob Ultra was ultimately positioned as an after-workout drink (“Enjoy workouts that end with a cheers”) and as a lifestyle brand related to sport, fitness and the outdoors, which is unique in the beer category.
Although Michelob Ultra was introduced as a sub-brand, it has since evolved into a master brand in its own right, with a growing portfolio of extensions. Over the past decade it has been one of the fastest-growing beer brands in the US and has now become the country’s best-selling beer by volume.
What’s the key lesson?
A strong, relevant brand proposition sometimes attracts audiences it wasn’t meant for. When that happens, the brand needs to decide whether to keep investing in the target it planned for or to follow the one it has actually won. The second route carries a risk, since chasing a new audience can strip out the very thing that attracted them in the first place. Michelob Ultra avoided it by sticking closely to its original proposition.
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Magda Adamska is the founder of BrandStruck.
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