Marketing Campaign Strategies: Risk Is the New Reward
Taking risks is a crucial component of staying competitive. However, navigating the balance between calculated risks and safe, traditional strategies is not easy.
Let’s explore when to take the leap into risky campaign work.
Defining Campaign Success
Before we check out the brands that have taken a gamble with their marketing strategies, we’ll need to define how we analyzed the success of their campaigns. Most strategic marketers will use a variety of KPIs to track success, most commonly (and obviously) sales numbers.
For this deep dive, we’ll use four different but important metrics to evaluate the level of risk in a campaign:
Good Campaign: Did the campaign risk lead to increased sales and brand awareness? Did it lead to positive earned media?
Good Launch: Was the campaign launch well received by the public?
Bad Campaign: Did the campaign risk lead to decreased sales, decreased brand awareness and/or negative earned media?
Bad Launch: Was the campaign launch poorly received by the public?
Obviously Risky
Many marketing campaigns fall flat (or can even destroy a brand) when campaigns launch that make their audiences wonder, “How did this ever get approved?”
risks vs. actual mistakes
Bad creative is bad: Whether it's a campaign that was done in-house or through an agency, an asset that is unwatchable or unreadable shows serious skill issues instead of an example of a calculated risk.
Bad partnerships: Working with a third-party company or organization that doesn’t understand the campaign vision will most likely create more problems than it’s worth.
Offensive or bigoted content of any kind: Jokes that use racism or sexism of some kind are always a bad look. They could result in PR nightmares as well as lower-than-ever sales.
We’ll avoid covering the obvious mistakes already mentioned and focus instead on some of the riskier campaigns that have led to successes and failures across a range of brands.
The Marketing Campaign Tactics We'll Cover
Reaching & Targeting New Audiences
Product Launches
Utilizing New Marketing Technologies
Collaborations
Rebrands & Redesigns
Reaching & Targeting New Audiences
Associated Risks:
Reaching a new audience that doesn’t understand your brand or campaign
Finding your audience but failing to understand them, or worse, upsetting them
Difficulty in accurately predicting the new audience's needs and preferences, leading to wasted resources
Potential Rewards:
Opportunities to expand your customer base and find new growth potential
Ability to diversify your marketing approach and reduce over-reliance on existing audiences
Gaining valuable insights about different market segments and discovering untapped, high-value customers
Overall, reaching and targeting new audiences can be a strategic move, but it requires careful planning, testing and an understanding of the associated risks and rewards. Marketers must weigh these factors carefully when deciding whether to pursue new audience expansion.
Brand Examples that Have Targeted & Reached New Audiences
Kraft: Bad Launch, Bad Campaign
In 2020, Kraft Foods launched a campaign with a new mac & cheese display that read, “Send Noods," to target a slightly younger yet mature audience. However, many felt that this brand’s messaging was in poor taste since the well-known family brand did not consider its current audience of mothers who often purchase this product for children.
State Farm: Good Launch, Good Campaign
In an effort to get younger audiences to start thinking about their insurance, State Farm launched their “Gamerhood Challenge,” a video game competition with popular Twitch streamers. The challenges featured risks that State Farm Insurance would cover. Risky, maybe, yet they’re the only insurance company in the gaming space—and it must be paying off because they launched the Gamerhood Challenge 2, with enhanced game features and more interactive elements for viewers.
2. Product Launches
Associated Risks:
Failure to generate enough interest and sales
Negative customer feedback or reviews
Unexpected costs or delays in production
Competition launching similar products
Potential Rewards:
Increased brand awareness and visibility
Growth in customer base and market share
Positive customer testimonials and word-of-mouth
Opportunity to differentiate from competitors
Potential for increased revenue and profitability
Carefully planning and executing your product launch with thorough market research, effective messaging and strategic timing are all critical elements of a product launch.
Risky Launch Brand Examples
McDonald's "Arch Deluxe": Bad Launch, Bad Campaign
In the late 1990s, McDonald's introduced the "Arch Deluxe" burger that targeted adults with a sophisticated taste. The marketing campaign for the Arch Deluxe was extensive and expensive, but it failed to resonate with consumers, leading to disappointing sales. The product was eventually discontinued, resulting in a substantial financial loss for McDonald's.
Amazon's Kindle Fire: Good Launch, Good Campaign
In 2011, Amazon launched the Kindle Fire to rival the latest Apple iPad. Although the iPad could do more, electronic readers were rising in popularity, and Amazon wanted to compete. This was especially risky since, by comparison, the Kindle was a stripped-down device with limited capabilities. The Kindle Fire’s lower price benefited the brand, attracting audiences who wanted to spoil their loved ones without breaking the bank.
3. Utilizing New Marketing Technologies
Associated Risks:
Potential security and privacy concerns with user data
Compatibility issues with existing marketing infrastructure
Unpredictable audience reception and campaign performance
Potential Rewards:
Improved audience targeting and personalization capabilities
Enhanced campaign measurement and optimization opportunities
Access to valuable consumer insights and behavior data
Increased brand awareness and engagement through innovative experiences
A balanced, well-researched approach is crucial for brands looking to stay on top of at the forefront of new marketing technologies.
Brand Examples of New Marketing Technologies
Heinz & AI: Good Launch, Good Campaign
The brand played around with different AI prompts centered around ketchup and found that, in all circumstances, the ketchup resembled Heinz. Using this discovery, Heinz created a video spot and incorporated their “It Has to Be Heinz” campaign.
The controversy here was the use of AI, since this new technology faces exceptional consumer skepticism. For a traditional, older brand, AI was a bold choice.
Snapchat & AI: Bad Launch, Bad Campaign
This multimedia instant messaging app (which allows users to send and receive photos, videos and chats), that’s popular with young users, quietly added an AI chatbot under users’ direct messages in early 2023. This addition startled avid users and intrigued others. In the months that followed, Snapchat received a lot of negative PR based on the answers that “MyAI” would give, especially in regard to mental health concerns. It was clear that this feature was far from polished at launch. MyAI does still exist, even though the campaign ultimately rubbed many people the wrong way.
4. Brand & Influencer Collaborations
Associated Risks:
Loss of brand control: The brand may have limited control over the influencer's content and messaging
Misaligned values: If the influencer's values don't align with the brand, it can damage the brand's reputation
Lack of authenticity: Overly promotional content from the influencer can come across as inauthentic
Potential Rewards:
Increased reach and engagement: Influencers can help brands tap into new audiences and drive higher engagement
Enhanced credibility: Collaborating with a trusted influencer can lend credibility to the brand
Valuable user-generated content: Collaborations can produce content that the brand can repurpose across its channels
Overall, brands must carefully vet influencers, set clear expectations and monitor collaborations to maximize the rewards and mitigate the risks.
Brand Examples That Have Collaborated with Other Brands and Influencers
e.l.f. Cosmetics & Many "Gen-Z" Brands: Good Launch, Good Campaign
e.l.f. has a knack for finding partners in other categories to team up with and creating beauty products inspired by the other brand. They’ve done it with American Eagle, Dunkin’ and Chipotle (to name a few). To add to the list, in Spring 2024 they worked with Liquid Death to launch their Corpse Paint Vault coffin-shaped makeup set box.
This disruptive launch sold out in a mere 45 minutes and had the internet buzzing. Launching in March seemed random instead of during the Halloween season, but according to Liquid Death’s Senior Vice President, Dan Murphy, this was all part of the strategy.
Paris Hilton for Hilton: Good Launch, Good Campaign
Though she’s made a comeback tapping into early 2000s nostalgia, there is no doubt that Paris Hilton is a very controversial figure. As her reputation recovered, Hilton’s idea to use their “heir” and OG influencer to advertise the “Celebrity Treatment” you’ll receive when staying at their hotels just made sense. Hilton risked rekindling negativity towards their namesake by advertising their association with Paris, but the gamble paid off.
5. Rebrands & Redesigns
Associated Risks:
Alienating loyal customers who are resistant to change
Costly investments in new branding, packaging, advertising, etc.
Potential failure to resonate with the target audience
Damaged brand reputation if the changes are poorly received
Potential Rewards:
Revitalize a stagnant brand and make it feel fresh and modern
Help a company stand out in a crowded marketplace
Attract new customers and appeal to evolving audience preferences
Communicate a brand's evolution or pivot in focus
The decision to rebrand or redesign should be made strategically, with a deep understanding of the brand's positioning, the competitive landscape and the needs and expectations of the target customer base. A thoughtful, well-executed campaign can yield tremendous benefits, but rushing into major changes without proper planning can backfire.
Brand Examples That Have Rebranded and Redesigned
Tropicana Redesign: Bad Launch, Bad Campaign
In 2009, the popular beverage brand Tropicana redesigned its orange juice carton. While the design wasn’t necessarily bad, consumers had a hard time locating the same product at the grocery store. Consumers were also confused and frustrated, thinking that the brand had changed the recipe or flavor of the OJ they’d come to know and love.
Dunkin Rebrand: Good Launch, Good Campaign
VS. IHOP Rebrand: Bad Launch, Bad Campaign
In 2018, both Dunkin’ and IHOP changed their names in an effort to better reflect their brands. Dunkin’ Donuts didn’t have much trouble or consumer resistance when they shortened their name from “Dunkin’ Donuts” to “Dunkin’”. Since their coffee is quite popular, it was a no-brainer to lop off the “donuts” part of their original name.
However, IHOP, or the International House of Pancakes, had a harder time rebranding. The beloved restaurant chain, known mainly for its breakfast (especially its pancakes), dropped the “Pancakes” and renamed themselves IHOB, with the B referring to “Burgers,” a less loved menu item. This change was an effort to remind customers of IHOP’s lunch and dinner menus, which featured many burger choices. Ultimately, the confusion turned to mockery and the brand went viral overnight. IHOP got so much backlash that it decided in the same year to just stick to its original name.
Final Thoughts on Risk-Taking
It’s okay to take risks in marketing. It's okay to make mistakes. As marketers, we are very hard on ourselves, but it is important to remember that making “mistakes” is how we test and learn. Learning from past examples helps develop best practices and teaches us how to become better marketers.
And luckily, not one of our campaigns has turned into tomorrow’s negative headline.
Struggling with your next campaign idea?
We can help.
Is your brand thinking about or planning on targeting new audiences, launching new products, utilizing new marketing technologies, rebranding, redesigning or wanting to collaborate with an influencer?
We’ve helped our clients do all of these things. We’ve even rebranded ourselves!
We have a few tricks up our sleeve when it comes to creating strategic marketing campaigns. See how we can help take your brand’s campaign to the next level by contacting Dale Elwell at delwell@teamaftermath.com.