Innovation and progress often translates to “new and improved.” Companies use new products and services to set themselves apart from the competition. Sometimes, however, companies find that “new and improved” is not the only path to increased revenue. Instead, firms look to past ideas for inspiration.
Chevy resuscitates its “heartbeat”
Chevrolet makes up a large portion of General Motors Company (NYSE:GM)’ total global sales. GM relies heavily on Chevy to remain profitable. Yet, Chevy’s market share has decreased to 12.8%, which is both a historic low and an almost 2% drop from six years ago.
General Motors Company (NYSE:GM) knows it must reinvigorate Chevy to increase market share. But, how does it plan on doing that? Perhaps it needs to re-establish Chevy as the “Heartbeat of America.”
Even though the brand lost market share over recent years, Chevy still has a global presence and brand strength. Therefore, resurrecting Chevy’s image promises to reinvigorate sales. As Chevy regains its past strength, General Motors Company (NYSE:GM) will likely see additional revenue and better brand image.
Forget plastic and aluminum, give us glass
Replaced by aluminum and plastic, glass soda bottles are a thing of the past. Or are they? Glass bottles are making a comeback.
The Coca-Cola Company (NYSE:KO) now produces many of its products in glass bottles. Granted, glass bottles only make up 2% of total soda sales. But, they serve a few important purposes. The packaging appeals to a variety of demographic groups including baby boomers, Hispanics, and millennials.
The novelty of the bottles and the appeal to different demographic groups allows Coke to sell the soda at a premium. A six pack of 8 ounce Coke in glass can cost you $7.50. This compares poorly to the $8 or $9 you may pay for a 12 pack of plastic Coke bottles. Moreover, glass bottle sales rose 4.5% last year, while plastic bottle sales were up 2.5%, and can sales increased by 1.4%.
Coke’s strategy will not only continue to increase profits but will also strengthen and reinforce its brand. The brand is tied closely to its original glass bottle’s shape. Coke only stands to gain by selling its traditional glass bottles.
The next old fashion soda fountain
Since 2011, Starbucks Corporation (NASDAQ:SBUX) moved beyond coffee and expanded its business. That year, it removed “Starbucks Coffee” from its logo and bought the juice maker Evolution Fresh. In 2012, the firm purchased San Francisco Bay Bread and the tea maker Teavana. These acquisitions allowed Starbucks to diversify its product base.
Today, Starbucks Corporation (NASDAQ:SBUX) cafés offer meals and grocery stores offer beverages in prepackaged containers. Also, the company is looking to an “old fashion” methodology for expanding its offering even further by creating soda fountain drinks.
Though the company is still testing the beverages in Atlanta and Austin, the drinks promise to provide additional revenue streams. Since Starbucks Corporation (NASDAQ:SBUX) started to offer more than just coffee in 2011, revenue has continued to increase.
By diversifying its product offerings within its core competency (high end beverages and café food), Starbucks Corporation (NASDAQ:SBUX)continues to build a stronger brand. Soda fountain drinks should only help. Larry Miller from RBC Capital Markets noted that the beverages will bring customers into Starbucks locations during nonpeak hours. Also, by adding yet another type of drink, the company can defend against tougher competition.
Conclusion
As General Motors Company (NYSE:GM), The Coca-Cola Company (NYSE:KO), and Starbucks Corporation (NASDAQ:SBUX) demonstrate, companies do not always need new ideas to rejuvenate revenue. Sometimes, the best technique is to rekindle past success. If integrated correctly, tried-and-true practices can help companies set their brand apart in the eye of the consumer.
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This article was written by Michele Milheim and edited by Chris Marasco. Chris Marasco is Head Editor of ADifferentAngle. Neither has a position in any stocks mentioned. The Motley Fool recommends Coca-Cola, General Motors, and Starbucks. The Motley Fool owns shares of Starbucks.
The article 3 Firms Look to the Past to Boost Revenue originally appeared on Fool.com.
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