Coke’s Subscription Service Signals That Boxes Are the New Billboards
Faced with declining brand value, companies look to subscriptions to get unstuck
Coca-Cola just launched a new subscription box service called The Insiders Club that includes swag, surprises, and three new “test beverages” for $10 a month. The company joins several other mainstream food and drink brands, including Dairy Queen and Arby’s, who are experimenting with subscription box services aimed at hard-core fans.
It would be easy to dismiss Coke’s new subscription service as a trial experiment—a way to pick up some free market research, some free branding, and a little extra money. But I think something bigger is going on. I think the management team at Coke is worried that it’s missing the boat. The way it sells products needs to change, and it needs to change soon.
Don’t just take it from me. Last October, Interbrand released its list of Best Global Brands 2019. This is a company that has been studying and building brands for over 40 years, so its insights are always worthwhile. According to Interbrand, the most successful brands on its list are relentlessly focused on answering three basic questions:
- What needs and desires will we address?
- Through what experiences?
- And with what business model and returns?
Notice the emphasis on outcomes (needs and desires) and experiences versus products and features. Successful companies start with a dynamic customer as opposed to a static product. They identify the needs and desires of their customers first, then create compelling experiences that solve those needs and desires.
The companies whose overall brand values grew the most last year aren’t surprising: Apple, Google, Amazon, and Microsoft. These are the kinds of ridiculously customer-focused companies that are finding success in the subscription economy. But guess who suffered a notable decrease in brand value last year? That’s right, Coca-Cola, with a 4% decline in brand value. (Pepsi isn’t doing so great either with a 1% decline.)
What’s going on here? Isn’t Coke supposed to be the biggest brand in the world? Didn’t Coke invent the concept of a…
