It’s a sign of the times sadly, when household names like MFI and Woolworths are set to disappear. The obvious blame lies at the feet of the problems with the economy, but why will some companies survive, whilst others won’t?
I heard the news about MFI on the BBC’s Breakfast News where the business reporter was interviewing a very important man from the City, whose name escapes me. Interestingly, when pressed on what had led to MFI’s problems, he didn’t blame their products or their customer service, he blamed their branding.
The company changed their offering a few years ago, away from the cheap, flatpack DIY products that they’d become a comedy byword for, to a higher end of the market; quality appliances, furniture and fittings. Sadly, their branding never reflected the change, the public never cottoned on and stayed away in their droves.
Changing your offering to a higher quality product can work – just ask Volkswagen about Skoda – but the brand must follow suit. It’s fine to be a bargain basement brand, if your products are bargain basement, but you can’t sell quality with a cheap brand.
So the question is, does your company’s brand reflect your offering?