Rebirth at IBM

Problem: In the early 1990s, IBM was struggling to grow traditional business lines in a computer industry undergoing monumental, permanent technological and consumer behavior change.

Solution: IBM needed to move beyond its image as a mainframe computer provider and reinvented itself, and its brand, as a service company known for delivering quality solutions in the fast growing eBusiness market space. The company was reorganized and a new marketing campaign was put in place to communicate the changes to consumer. Today, 10 years later, IBM is the largest information technology service provider in the world. The services group, IBM Global Services, is the source of about half of IBM’s nearly $100 billion in annual revenue.

Are we still lovin’ it?

Problem: For McDonald’s, changing consumer tastes and an emphasis on healthy eating were diminishing the McDonald’s brand.

Solution: Introduce newer, more upscale menu offerings—including McGriddles, premium salads and white meat chicken strips—and augment the introductions with a refreshing “I’m Lovin’ It” marketing campaign aimed at connecting the brand with a more mature, health-conscious consumer. McDonald’s redesigned its restaurants with a contemporary setting and made outstanding customer service a company-wide focus. In parallel, McDonald’s launched a new brand in a new fast-food market segment by purchasing Chipotle Mexican Grille.

After three years, the results are impressive—record net income, a stock price that has more than doubled and a third straight dividend increase. The strong performance of Chipotle is providing new revenue, new customers and new cash through a public offering of stock.

New programming for Discovery

Problem: For the Discovery Channel, which celebrates its 20th anniversary this year, the challenge was a changing landscape. As a new century approached, its well-done documentaries and news specials were becoming out of sync with changing consumer tastes in TV programming. And even as the Discovery Channel retained its position as the top brand among media and TV companies, it recognized the critical need to evolve to continue to fulfill its education mission.

Solution: Discovery expanded its program content and developed a demographic strategy to include new audiences. A primetime lineup of reality shows, such as American Chopper, Monster Garage and Mythbusters, are bringing younger viewers to the cable network. And, true to its mission, Discovery continues to produce outstanding documentaries and news features, winning two Emmys and one Peabody Award last year. And in 2004, Discovery earned its highest ever primetime rating.

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