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Tropicana's Trouble: Why Loyal Customers Hate Change

February 25th, 2009 @ 12:33 pm

45 Comments

Categories: Marketing, Research

Tags: Tropicana, Marketing Research, Marketing, Sean Silverthorne

The kerfuffle over Tropicana’s recently yanked new design for its orange juice carton is just another reason why marketers have a love-hate relationship with the Internet and social media.

For years, Tropicana’s products have pictured a beautiful orange punctured by a straw. What could be fresher? Still, it was rather long-in-the-tooth, so Trop’s parent, PepsiCo, decided to modernize the marketing message and update thhttp://i.bnet.com/blogs/newtropicana.jpge design to feature a glass of chilled OJ and some modern typography.

Well, the oranges hit the fan. Customers this week finally pressured the company into going back to the old design.

Writing on Harvard Business Publishing, marketing expert Peter Merholz says the new design maybe wasn”t really all that bad–but  Pepsi’s user testing surely went off the tracks. “Tropicana no longer stands out. You now have to stop and think about which juice you want to buy, and given all these options, you enter “Paradox of Choice” territory, where you end up frustrated trying to decide between so many options.”

And I’m sure that’s part of it. But here is why I think marketers are of two minds about social technologies. It was a very small number of Tropicana users who bombarded the company with criticism, a number characterized as a “fraction of a percent of the people who buy the product.” But these were the most loyal customers, those who cared enough to email, blog and otherwise communicate their distaste for the change.

The Loyal Customer Paradox

Well, in almost any product group, your most loyal users are also the ones who like things just the way they are. They like the current design of New Yorker magazine, and will kick and scream when you change a font size. They really don’t want Apple “improving” the Mac interface with an application dock. And don’t get them started about New Coke.

But here’s the thing. Yes, the new Tropicana design would have alienated older customers, but what if it attracted a whole new generation of customers to carry the product forward?

So to my marketer friends in the audience, give Tropicana and the rest of some advice on how to create innovative changes that will win the hearts of loyalists rather than send them rushing to the keyboard?  What’s the messaging? What’s the testing look like? Alternatively, when do we toss loyalty to the wind and start with a clean slate?

(Tropicana image by Justinlai, CC 2.0)

 
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  •  
    1

    davebarnes

    02/25/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I did not protest, but I HATED the new design.
    It looked like a carton of milk.

    I think one message for marketeers is "incremental change". For example, if they had gone with just the new semi-spherical cap, I think there would have been acceptance and even some excitement.

  •  
    2

    Spryka

    02/25/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    The new carton design was disgusting. It
    looked like a store brand. I am glad they
    changed back to the old design

    Valencio

    http://www.EmailCharger.com

  •  
    3

    hellodavid

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I admired the simplicity of the new look and only wish they had been bolder and gone further. (Guess I should have told them.) But it's the "preserve some rainforest" offer that captured my 7 yr-old. He insists we buy this brand and participate -- and who am I to argue? He needs to believe he can make a real difference in the planet's and his own future. It's a bargain I am happy to pay for. Tropicana: please keep that idea going (and take up better ones, like bird-friendly orchards).

  •  
    4

    ahebard1

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    It was my 11 and 9 year old who commented negatively on the new design - I was surprised they even noticed as it didn't bother me in the least. So much for thinking the "new" generation would be attracted to it.

  •  
    5

    smartstartcoach

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Might as well go on record saying I don't like the new spherical cap even though I get the "cuteness" of it looking like an orange.

    Frankly, the new design of the cap makes it much harder to open the container to get to the juice and it's really putting me off the brand.

    It's just one of those little irritations that I can do without -- know what I mean?

    Linda M. Lopeke
    The SMARTSTART Coach

  •  
    6

    Sep09

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I think Dave has it. Incremental change is the key to taking customers with you in any change of brand identity. I have experienced this myself with the small consulting company I owned then sold. It still operates today under a "similar" name. Thats the key. keep it familiar and customers find it easier to accept.

  •  
    7

    Rational_Observer

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I too hated the design, it does not stand out .. I had to really look for it for some time, to figure out if it s a generic Store type brand or indeed the Topicana Premium in that carton.

    Yes, Marketing / Brand Testers need to be aware, customer loyalty includes the looks appearance ( and of course the quality of the material)and the price vs packaging.

    One more thing a value propsition is what customer needs in this hard economy. In packaging quantity vs. price. Looks like you are now selling different sizes 64 fl. oz, 98 fl oz and some thing in between whatever in jugs, which are not the gallon jugs. So, that may boomerang as well, of course I always look for the per fl oz cost to me.

  •  
    8

    alansawyer

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    In his book Brand Asset Management: Driving Profitable Growth Through Your Brands, Scott Davis defined brand positioning "A strong brand position means the brand has a unique, credible, sustainable, and valued place in the customer's mind. It revolves around a benefit that helps your product or service stand apart from the competition.?

    Differentiating a brand from the rest; yet in this case, PepsiCo eliminated that distinct, different and familiar look that Tropicana sported for years, and gave their package a disguised, similar-to-other-brands look and possibly left the consumer to also wonder if what is inside is also different. PepsiCo tampered with Tropicana?s positioning which caused the familiar to be unfamiliar and took away the comfort factor associated with brand loyalty.

    Brand loyalty is really brand comfort. People buy what they know, trust and like. More often than not, purchasing habits are based on perceptions, expectations and experience, not loyalty.

  •  
    9

    john3347@...

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    This is another example of some overpaid stuffed shirt advertising person or group trying to fix something that wasn't broken in a bungled attempt to justify their job. "Familiarity breeds loyalty"

  •  
    10

    Rational_Observer

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Please dont make big changes. Customers loyalty to brand name and package is very strong ! I had very tough time distinguishing Topicana from a generic store brand. If you had checked out the design effect on sales you would probably find decreased sales. I was very unhappy and almost did not buy it.

    Price vs packaging: This is another sour chord of mine. Note to Tropicana and or others who want to package with slighly less than the std 64 fl oz, 98 fl oz, 128 flo oz and others.

    In these cases customer has tough time figuring the per unit cost.. I know it is posted on the rack with bar codes.. This is too much imposition. (And quite often, the unit price may not be constant ??)

  •  
    11

    RichardWL

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Why not both? Keep the old design while introducing the new design. The old design retains the goodwill of the loyal customers. The new deisgn attracts new customers and also attracts existing customers who want to try something new.

  •  
    12

    cpenhallegonjr

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    As has been noted by several commenters, the new design looked like a generic - hard to say why specifically, but it did.

    This is a bit off-topic, but my real gripe is the "lets's shrink the package and hope they won't notice" gambit. For all you too-clever-by-half marketers out there, I refuse to buy anything that has been shrunken while the price stays the same. As an example, seems several of the major ice cream marketers (yum, I love my ice cream!) have decided that we're too stupid to tell that a 1.75 qt. or even (I kid you not) a 1.5 qt. container is smaller if they just keep the same front dimensions. It's only 1/4 less for the same price!

    For my part, I will only buy the brand (brands? down here it's only Blue Bell) that have had the decency to maintain the full 1/2 gal. container. If you look closely, it's actually less per oz. than the others.

    Anybody buy coffee in the last few years? Canned tuna? Makes me sick.

  •  
    13

    ThreeDeuce

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    It's foolish in almost every case to walk away from your brand equities. Coke had tremendous equity in its original flavor profile, so New Coke was doomed to failure. I'd guess Tropicana had significant equity in the "orange with straw" image. However, the new design eliminated this equity and did not replace it with anything ownable: Tropicana certainly can't "own" the image of a glass of OJ or a generic typeface.

    To answer Sean's last question, you never toss loyalty to the wind. But you might reach for a more disruptive initiative when there is a major brand problem to solve. The Tropicana redesign doesn't fall into that category; it looks remarkably like a solution in search of a problem.

    Matthew Fenton
    Three Deuce Branding
    www.ThreeDeuce.com
    Blog: www.ThatBrandingThing.com

  •  
    14

    themarketingspot

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Well, of course it's the stupid customer's fault. Don't they understand you're trying to re-brand the product? Put new packaging on it and no one will remember it's your father's OJ.

    Tropicana, if you really want a product that appeals to a younger generation, create one. Don't repackage an old brand and pretend it's new.

  •  
    15

    clayco

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    The new design was pure stupidity. It went from a classic brand to a generic carton. I hated it the first time I saw it and thought to myself who came up with this brilliant idea. Tropicana is losing it if they can't figure this one out.

  •  
    16

    minmor@...

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    With the new design, I couldn't find the TYPE of OJ I've been buying from them for years. The blue cap and great, big, blue stripe for Calcium was a no-brainer, but then they removed or miniaturized the visual queues. Frustrating to have to ask help to find it when I've been buying it for years. Glad they are listening!

  •  
    17

    Waldoemm

    02/26/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Maybe Tropicana should have explained what they planned to help transition their loyal customer base. If quality is why customers choose Tropicana the container is just a familiar habit. Change is not easy. But if the quality doesn't change maybe the habit needs to. Easier said than done.

  •  
    18

    Ian P

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Never heard of the stuff.

  •  
    19

    vampirekwc

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I don't care one way or the other what the package looks like. What annoys me is something that cpenhallegonjr mentioned, which is much more sinister: the reduction of package size for the same price. Tropicana angered me greatly when they introduced the new mid-sized jug design (not the image, but the shape of the package). It went from 96 oz. to 89 oz. and the price stayed the same. Luckily for me (at least for now), the 128 oz. jug hasn't been replaced with a smaller container. If it does, I will no longer buy Tropicana OJ.

    All the yogurt companies did the same thing. Has anyone noticed that what used to be 8 oz. containers all went to 6 oz. containers...which are now being even further reduced into 4 oz. containers??? The price, however, has not gone down. I no longer buy yogurt.

  •  
    20

    Coach-Lee-428

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    The message hear is leave alone what works. Ford experienced the same problem by renaming the Ford Taurus to the Ford Five Hundred. Human beings are conditioned animals. We think in pictures even when we see words. When the words conflict with the associated picture in our brains, there is conflict. This conflict can jeopardize customer loyalty.

    Change for the sake of change is not innovation.

  •  
    21

    dfyoung

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I've purchased Tropicana for years because I like what's
    IN the container. This was my shopping experience upon
    the switch:

    "Hmmm, where's the Tropicana? Oh, there it is...different
    label...I think we're almost out of half and half..."

  •  
    22

    PlasticPrinters

    02/27/09 | Report as spam

    OJ

    It just goes to show brand loyalty is a major factor, and your identity, packaging, the way you market yourself is all key.

    It's an extremely touchy factor to change your package let along change your logo, its best in a lot of scenarios to stay with what is working and not to fix anything that isn't broke.

    Sometimes changing or updating a package or product is best done in baby steps, some people just don't take well to change, this is a great example.

  •  
    23

    zinkracer

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    "Ford experienced the same problem by renaming the Ford Taurus to the Ford Five Hundred."

    When Ford last uses "500" it used to follow another familiar name - Galaxie. They might have done better with "Taurus 500". Who knows. I suspect they were trying to upgrade the image of a car that had sunk into "fleet status". Either way, it mostly flopped. The original Taurus broke a lot of new ground for the traditional family sedan. The Five Hundred did not. Branding can only go so far.

  •  
    24

    vanyali

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Change can be OK, but you still have to do a good job, just like if you were launching a new product. Tropicana just put out a dog of a design. If the new design had been bold and eye-catching (and still functional) then I don't think they would have had a problem.

  •  
    25

    BocaMarketing

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Food for thought - I am not a regular orange juice drinker, however, when I do make the purchase .. it is ususally Tropicana (I do live in FL - so get spoiled with truly fresh squeezed). However - my point is - can all this attention to a container be bad? Isn't no news - bad news in a corporate stand point?

    I will be checking out the juice section tonight - shopping for the weekend goodies.

  •  
    26

    lw00049

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Thank god! I thought I was the only one who HATED the new package. I couldn't tell what that orange oval was supposed to be until I saw a billboard of the new carton from a side angle. I agree with vanyali -- had the design been one where I knew it was Tropicana, I wouldn't have minded.

  •  
    27

    ellisera

    02/27/09 | Report as spam

    Are You Kidding Me?

    I loved the new design! It looked more clean cut than the previous one, and it seemed to integrate a lot better with the latest health craze that seems to have gripped the major coast cities in the US lately.

    Think about it: every one that has been talking "green" in those cities has been profiting more lately. Whole Foods and Trader Joe's are all the craze now in NY, and so many other companies are taking advantage of that. Why not Tropicana?

    As for package resizing, yes, I agree that it's deceiving, however did any one of you whiners even think about inflation? What would your reaction be if the package size stayed the same but the price went up? Resources cost more now than they did a year ago, and they cost more then as opposed to a year before that. You can't expect companies to keep things the same out of the goodness of their own "hearts" while doing so loses them money. That's not the way works, so sorry to disillusion you.

  •  
    28

    aertel

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Can't believe it made it through consumer testing. I hated it, but was shocked to have other customers openly commenting on it when i was shopping. Generic and jarring to the eye. I couldn't find it on the shelf. Again, I find it very hard to believe they did consumer testing among any demo on this.

  •  
    29

    bmcguire@...

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Why annoy your customers for no reason? Virtually all of us will accept useful change. This change was not that! My husband bought the wrong type of Tropicana juice due to the color change (and ended up tossing it down the sink). Dificult to find what you want, annoying, and expensive - hmm... great marketing!
    To your last question - you never toss loyalty to the wind! Making a huge mistake of this type in this economy ... you finish the thought!

  •  
    30

    mkwasny@...

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    It would have been OK to change the packaging if they would have increased the amount of juice in the container for the same price and used the new package to highlight that approach.

  •  
    31

    AdScam

    02/27/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Do you realize that in the second paragraph you said... "For years, Tropicana?s products have pictured a beautiful orange punctured by a straw. What could be fresher?" Then you said... "Still, it was rather long-in-the-tooth." So what if it was "Long in the tooth." It was the leading brand... As a commentator said... "If it aint broke, don't fix it." The only winner here is Peter Arnell who got paid $35 million for replicating a seventies Swiss art school look. The same guy who got paid million for the diastererous Pepsi re-design... Smoke and mirrors + ********.
    Cheers/George

  •  
    32

    macquid

    02/28/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Is it possible you were all duped?

    All that free advertising in newspapers on blogs and now bnet too...

    You're all crying out loud "Tropicana brand is REALLY IMPORTANT to me"... "sacred almost"... "DON'T TOUCH MY TROPICANA!"

    Hey people, makes me personally wanna go out and buy some right now happy

    Heck Coca-Cola used the same ploy about a decade ago with "Coke Classic". Maybe, just maybe Pepsi thought "It's our turn now".

    That's my "educated guess" and I'll drink (OJ) to that.

  •  
    33

    Fred H Schlegel

    02/28/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I find it hard to believe that Tropicana would reverse
    gears if sales figures were not saying the same thing
    their 'loyal' customers were. Sometimes the squeaky
    wheel is right.

    Maybe macquid is right and the folks at Pepsi were
    thinking the 'Coke' gambit is an easy out if things go
    wrong. But the Coke strategy only looks brilliant in hindsight because they were lucky, if I recall it had a disastrous effect on short term sales. And, if their loyal
    customers had been even a little less vocal they might
    not have changed gears fast enough to save the brand
    from its 'we're like the other guy now' approach.

  •  
    34

    Jim Harpst

    03/02/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I just couldn't easily differentiate their various products to find the one I buy. They all looked the same.

  •  
    35

    akboat

    03/02/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I think that the new philosophy of trade is about making the customer feel supreme in your line of producing anything-ie the marketing concept- therefore strategic changes need to be strategic enough so as to bring about a good change for the best of both customers(loyal) and the firm. Nevertheless this shows a need for a good P.R.O. to communicate the need for the change process so as not lose most loyal customers even if it means developing a new line of loyal customers.

  •  
    36

    sshelle

    03/02/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I haven't seen the new Tropicana design, but thanks for the flashback to New Coke and the hoarding of Coca-Cola in the 80s by people who were scared to death that Coke was never going back to the original formula. . .

  •  
    37

    plish

    03/03/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    What this shows is that there are some serious methodological flaws in prelaunch trials (Both for this and the new Coke). This visceral type of feedback shouldn't be a surprise.

    And people wonder why companies are in trouble today....

  •  
    38

    dmsilva1

    03/05/09 | Report as spam

    Change for the sake of change is not good

    I read this discussion before seeing the new bottle. The old image on the bottle was as identifiable as their logo, why change it for a nondescript image?

    If you are going to make a change in your product or brand make sure there is a good, qualified, marketing reason.

    BTW Coke DID have a good marketing reason to introduce New Coke: Even die hard coke fans would choose new coke in a BLIND taste tests. If Coke would have rolled out the new formulation in secret, preserving the brand, New Coke would have likely been a success (Of Course New Coke probably ended up being an even greater success for Old Coke)

  •  
    39

    Sars2008

    03/06/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    Great write, it made me think... and I wasn't even aware of the situation. I just bought Tropicana orange juice and didn't even realize the difference. I'm 22 and I don't think my generation really cares too much what it looks like but what it tastes like. Maybe that's too much to ask of a product that it just tastes good these days... haha

  •  
    40

    fpotter@...

    03/06/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    TOO GENERIC!!! The first time I saw this in the cooler section of the grocery store, I could NOT find my Orange Juice!!! I thought they were out of Tropicana! Talk about brand recognition.

    The other changes are completely unnecessary. For example:

    1- "No Pulp" versus "Pulp Free": What's the point here in changing the dialog?
    2- "Never from concentrate" versus "Not from concentrate" - Again, what's the point in changing the verbiage?
    3- Changing the font on all the words give it that "store brand" look.

    In summary, they introduced a new "Store Brand" look, but they sure kept their "Pure Premium" price!!!

  •  
    41

    ryanprimate

    04/02/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    It has nothing to do with customers fearing change. It
    has everything to do with poor design and a lack of
    knowing your customers-- whether it's Pepsi or their
    branding agency (Arnell in New York).

    Ryan Rodriguez

  •  
    42

    BionicWoman

    05/08/09 | Report as spam

    New Design

    I think that the new design looked a little "generic", which is not representative of the company. I also think if they want to change their design they should opt for gradual changes not shocking immediate ones.

  •  
    43

    dibill444@...

    05/14/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    I found that alot of people between my age and my parents' age had a hard time 1) finding the product as the design didn't "pop" on the shelves; and 2) once the found the product, the lettering as to what type of juice it was, was too hard for them to see easily without picking it up and getting real close. There was an article in Business Week discussing Pepsi's new marketing chief who decided to make quick change and for the most part, consumer testing beforehand went right out the window. Pepsi forgot "user ergonomics" doesn't just apply to the shape of a vegetable peeler or computer mouse, but to everyday product packaging and design.

    But Pepsi was also smart to listen. When my parents took the time to call and complain, they were issued a coupon for free juice; and then when they changed the packaging back, they received yet another coupon. Kudos to Pepsi for managing the faux paux.

  •  
    44

    andreashorey

    06/05/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    it's amusing to read all the reviews.

    so many people are against change.
    What?! Why?!

    Did I just read that right? Because they don't want to have to read the label??

    I'm amazed that so many people live on auto pilot?
    WAKE UP PEOPLE!

  •  
    45

    Vise-Grip

    07/20/09 | Report as spam

    RE: The Tropicana Troubles: Why Loyal Customers Hate Change

    What did the POS look like when they changed packaging? Yeah I get that nobody liked the new design but what did the sales numbers say???

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