Brand Failures

Internet and new technology failures 233
Add value. ‘In a product area where the retailer adds no extra value,
Pets.com was doomed to disaster the day the first wave of competitors
came along,’ says e-marketing expert and author Dan Janal.
Don’t compete on cost. As discounts were the company’s major selling point,
Pets.com’s profit margins eventually shrank to nothing.
Don’t rely on gimmicks. Sock puppets may be popular, but they can’t singlehandedly
support a brand. Just ask ITV Digital.
Recognize that emotion isn’t enough. Pets.com vice president of marketing,
John Hommeyer, was very proud of the bond the company had created
with its customers. ‘It’s one of the few dotcoms that’s really built a brand
and established an emotional connection with consumers,’ he said, shortly
before the company’s closure. When dealing with an online brand however,
emotion isn’t always enough to get consumers to buy online.
Have a strategy. Pets.com’s insufficient strategy was highlighted at the time
by Michael Dunn, CEO of branding consultancy Prophet Brand Strategy.
‘Most people have a playful, fun relationship with the sock puppet, but it
has yet to translate into a compelling brand story that makes people want
to transact with the company. Building a brand devoid of a clear business
strategy is a recipe for failure.’ And so it proved.