Question

Topic: Strategy

Spokesperson Leaves & Joins Competitor. Now What?

Posted by caffn8d on 4/8/2010 at 2:56 PM ET 250 Points
Here’s the situation. A company has a highly recognized spokesperson. He’s on TV for years. While some people liked him and others didn’t he was still very recognized and had top-of-mind awareness in the market. He decides he is selling his business and retires. New owners take over and use the previous owner in spots (since he’s so recognized) for about 2 years before they develop their own new image/brand. New brand has been well received, but has only been building for 1 year. Previous owner is off air for 3 years and decides he will come out of retirement and start a new company in the same industry. He plans to return on air in a few months. He can’t legally use his old tag line, but can pretty much do everything else. New owners are wondering what their strategy should be when he returns. Do they continue building their own brand or incorporate the old owner (image, old footage, etc.) in their existing creative? Their fear is that he has a following and they may lose a big portion of their repeat business. What should their strategy be?
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RESPONSES

  • Posted by caffn8d on 4/8/2010 at 3:22 PM Author
    Thanks Phil! I agree with the paid spokesperson comment. Do you think it's different if he was also the owner and not a paid actor/celebrity?
  • Posted by CarolBlaha on 4/8/2010 at 3:24 PM Member
    Phil's advice is right on. Do not drop your existing brand. This happens all the time. They wait for the non-compete to run out and re-enter the market.
  • Posted by caffn8d on 4/8/2010 at 3:42 PM Author
    Hi CarolBlaha,

    Thanks for your thoughts. I'd love to show a case study. You mentioned this happening all the time. Can you think of an example that might help?
  • Posted by caffn8d on 4/8/2010 at 3:44 PM Author
    Barq,

    So, Harry became Buddy? Thanks for the info. I googled Harry's and they are still in business. Buddy's is not. Interesting!
  • Posted by CarolBlaha on 4/8/2010 at 3:50 PM Member
    Please email me privately. Off the top I think of 3-- each with different outcomes. I don't want to give some of the names in this public forum. Email is on my profile.
  • Posted by caffn8d on 4/8/2010 at 4:32 PM Author
    Thanks Randall! Good points. I feel the same way. I just have to prove to my client that we're on the right track.
  • Posted on 4/8/2010 at 9:09 PM Member
    Personally, I wouldn't make this decision without calling the guy in for a pow-wow...

    Perhaps something could be worked out to allow both parties to get where they want to go.

    Never hurts to try.

    Right now your decision tree is, in my opinion, missing a branch.
  • Posted on 4/9/2010 at 1:58 AM Member
    If you can't answer the L 'Oreal question, it's because there wasn't just ONE pitch lady for L'Oreal. There have been a series. Andie MacDowell has been prominent lately, but there have been many over time.

    I'll show you my age here when I say that I still remember Jaclyn Smith pitching Liquid Prell Shampoo. That series was about as classy as it gets in advertising.
  • Posted on 4/9/2010 at 11:47 AM Member
    With all due respect, I think that the point of the post is being missed here.

    This ISN'T about getting rid of an old spokesperson and retaining a new one. In that case, YES, "Brand" is first consideration...

    This IS about a spokesperson re-entering the market to be a head-to-head competitor. If this guy has a following, he could significantly impact the poster's bottom line. Based on THIS parameter, I think my earlier advice of sitting down with the guy and attempting to work out something to the benefit of all parties is well founded.
  • Posted on 4/9/2010 at 1:38 PM Member
    BARQ:

    You're making my point for me...

    Suppose Andie moved to another shampoo company that sells PRICE.

    Slogan: "Why pay more for the same thing? It's not WORTH IT..." ;-)
  • Posted by BizConsult on 4/9/2010 at 3:44 PM Accepted
    I'd completely avoid using the old owner in their advertising for many reasons:

    1) You mentioned "some people liked him, others didn't" - simple awareness is not necessarily a good thing - especially for those who DIDN'T like him!

    2) Anyone that is really loyal to him isn't going to be convinced to shop with you while he has his own store and advertising...you're fighting an up-hill battle there - and the attempt will likely seem desperate and misleading

    3) You'd be throwing away the equity built up with the new campaign (and I'm assuming they did stop using his likeness for a reason!)

    4) It's a poor idea for an established brand to chase an upstart - play the part of the market/category leader

    5) You can't out-market the guy with old images and footage when he can create fresh campaigns: Any attempt to do so will likely backfire as he can personally attack it - just reinforcing that people should come to his business and giving him free PR/ consumer sympathy

    Stay the course!
    Steve Udell
  • Posted by caffn8d on 4/9/2010 at 4:06 PM Author
    Thank you all. Your points in many cases are right on and align with ours. The comment however about meeting with him regrettably would not work. He's overall not a nice businessman and doesn't play by any rules. In fact, keeping his print ads in line can be a full time job. They often omit disclaimers and make misleading claims. It really is a complete mystery to me how he built his business. His image, creative and delivery was always very slippery, but in the end it worked.
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