This piece was originally published in Forbes.
“These are businesses, not religions.”
Ted Sarandos, co-CEO of Netflix, recently shared this sentiment at the Fast Company Innovation Festival, challenging business leaders to remain open to doing the things they once vowed their companies would never do. It's a lesson that applies not only to operations, but also to how brands should approach their marketing strategies.
Throughout its 27-year history, Netflix has pivoted multiple times. It once said it would never do original programming—now, it’s famous for everything from Stranger Things to Squid Game and The Crown. It once claimed it would never introduce ads, yet recently, it launched a $6.99 ad tier. It even insisted it would never venture into live sports, but on Christmas Day this year, Netflix will be the only place that fans can watch the NFL’s two holiday games.
After facing some headwinds in 2022, Netflix kicked off the first quarter of 2024 with over nine million new subscribers, five times more than the same period the year prior. It added another 5 million this past quarter, with revenue up 15% year-over-year.
Pivots can come with challenges, as Netflix well-knows from its crackdown on password sharing, but when rooted in data-backed strategies that ultimately align with evolving consumer behaviors, the rewards outweigh the risk.
For marketers, legacy brands in particular are often hesitant to stray too far from their original approach. Many reached their long-held success through appealing to the general population, or very broad swaths of it. But the nature of marketing has fundamentally changed.
Today, subcultures drive mainstream culture. Young consumers in particular value brands that foster a sense of community, and reaching these niche communities is the best way to kickstart a new wave of growth. Doing so requires a deep understanding of what matters to them, and who has the authority to bring your message into their space. Often, this means breaking out of your brand’s comfort zone.
Imagine showing the Nutter Butter executives of 30 years ago the unhinged TikTok content their brand is producing today—they would likely be appalled. Yet, in the comments section, the subculture that understands all the inside jokes of the eccentric brand universe Nutter Butter has created is proudly proclaiming, “I bought Nutter Butter today. I haven't bought one in 30 years.'" Nutter Butter isn't the only one engaging with this subculture; Dunkin’ Donuts recently promoted its Halloween spider donut with a similar tone, resulting in one of its highest-performing social campaigns in terms of likes, shares, and engagement. Chief Marketing Officer Jill McVicar Nelson told The Wall Street Journal that Dunkin’ wanted to “bring new energy and new life to a product that we’ve sold for a while.”
Similarly, had Stanley not embraced the subculture of on-the-go mothers and nurses who determined its Quencher cup was a perfect addition to their lives, the brand wouldn’t have grown from the $70- million to $750-million-a-year business it is today. After more than 100 years of targeting the “outdoor adventurer,” Stanley took the time to understand this new customer base and build products and content that worked for them. It continues to produce items that appeal to its legacy consumers while also reinventing—most recently, releasing a holiday collection that includes a miniature Stanley cup ornament—to appeal directly to its new consumer base.
To re-energize a legacy brand, marketers must question the absolutes set in place years ago, and challenge whether they still work for today’s consumer. Tapping into subcultures will require brands to try things they once said they never would. But as Sarandos said, companies must “reserve the right to get smart”—smart about evolving with shifts in consumer behavior, smart about how to reignite enthusiasm for their brand, and smart about how modern marketing can best fuel business growth. Because you can’t accelerate growth with an old playbook.
