On those Extreme Makeover shows, it’s fun when the family says, “Wow! You look so terrific, we almost wouldn’t recognize you!” But what if the makeover was SO extreme that the baffled husband said, “… who are you?” And the kids cried, “Where’s our mommy?” That’s exactly what happened to PepsiCo’s Tropicana Pure Premium Orange Juice products.

After a major package redesign, Tropicana sales dropped a whopping 20% between January 1 and February 22, 2009, according to AdAge.com. To stop the bleeding, PepsiCo, the parent company of Tropicana, trashed the new look and rushed back to the old design. So what went wrong?

1.) PepsiCo underestimated the value of package recognition.

Consumers knew Tropicana by its look. But when the re–branded packaging was put next to other orange juice brands (Minute Maid, Dole, etc.) nothing said to the consumer, “Hey! It’s me, your old friend Tropicana!” The key design elements that made Tropicana packaging iconic to loyal customers were either muted or missing. Consumers no longer recognized their favorite drink. They assumed it was gone and simply grabbed another brand.

2.) The redesign was too much too fast!

It’s often best to ease into a new logo or package design gradually. But Tropicana dove head first. The packaging changed so suddenly and radically that loyal customers looked right past it.

3.) The packaging was too generic.

Although the new packaging was attractive on the design board, it looked so bland on the shelf that it simply blended into the background. Loyal customers couldn’t distinguish between their favorite brand and generic orange juice brands.

4.) The new packaging made it hard to distinguish between varieties.

Whether you were looking for Tropicana’s No Pulp or Calcium variety, all the new packaging looked the same! Tropicana’s previous packaging had used different colors to successfully differentiate each variety. Even customers who figured out what Tropicana looked like now couldn’t find the taste they wanted.

On February 23, after losing millions of dollars in sales, PepsiCo announced they were ditching their new look and reverting to the previous package design. Clearly, they learned a valuable lesson or two. What would you have done differently if you were PepsiCo?

When times are tough you return to the basics. With the economy in an uproar, people think twice before spending their hard-earned money. While it’s clear that marketers who maintain their advertising investments in a recession fare better both now and after the recovery, it’s still nerve-wracking in the short term. So what’s the basic solution? Talking.

Remember when marketers actually spoke to their customers? Remember those days when you walked into a store, someone greeted you and asked how they could help you or how your day was going? Now, with e–commerce, automated phone systems and a business world spinning a million miles a second it is uncommonly refreshing to receive direct and personal customer service. So today, when times are hard for everyone, remember to take a deep breath, get out there and talk to your customers and clients.

At jhP we’re committed to “the power of partnership.” We know relationships are the core of business success. When money’s tight you prefer to spend with those who offer proven service, who make your life a little easier, who ensure you have one less worry later, and who just plain help you feel better. It’s wise to be progressive in your advertising and marketing – but don’t forget the basics. Take a little time out of each day to talk to people. Maybe you’ll earn a lifelong customer from it – and/or a friend!

When I was sixteen I was lucky enough to spend a month in Copenhagen, Denmark. While this was many years before I began my internship here at jhP, or even considered a career in advertising, one billboard there altered my perspective forever. It was a billboard for Tuborg beer. The ad had a picture of a Tuborg beer bottle with a slogan that translated to “Tuborg: Probably the Best Beer in Town.”

You read that right: “Probably the Best Beer in Town.” A friend and I found it hilarious and made up our own alternate ad: a bottle of Tuborg on an empty table with the logo “Tuborg: Probably the Best Beer on this Table.” We thought the ad was ludicrous because we were used to American ads that asserted they were the best in the world. My friend’s mother, who was Danish, tried to explain to us that Danes accepted that people have different tastes in beer and therefore found “We’re the Best” ads offensive.

The Tuborg ad offered more than a lesson in Danish advertising. It taught me that understanding your audience as precisely as possible and appealing to how they think is of ultimate importance in any marketing effort. Sixteen-year-old American girls visiting Copenhagen were obviously not Tuborg’s target market. Danish beer drinkers, however, loved it. So remember the importance of knowing – and appealing specifically to – your target market!

Picture Provided by Tony Austin on Flickr