Marketers Could Have Saved Target and Southwest Airlines: A Deep Dive into Branding Missteps
Marketers have a profound understanding that often eludes many business leaders: everything is marketing. From operational procedures to the physical appearance of buildings and staff policies, each element shapes public perception. When any of these components diverge from brand values, it can lead to catastrophic consequences.
The Lessons from Target and Southwest Airlines
Let’s take a closer look at Target and Southwest Airlines, two companies that made choices in the past year that likely didn’t undergo proper marketing scrutiny. If they had involved their marketing teams, even the most junior marketer would probably have exclaimed, “ARE YOU OUT OF YOUR MIND?”
Southwest Airlines: From Unique to Generic
Southwest Airlines built its brand on the premise of being different from other airlines. For decades, customers relished the experience of enjoying fresh chocolate chip cookies on flights, experiencing friendly and helpful service, and benefiting from policies that allowed free baggage. This commitment to customer satisfaction cultivated a loyal following, enabling Southwest to achieve a cult-like status that competitors envy.
However, in 2010, the airline made a significant misstep by eliminating the beloved chocolate chip cookie, prompting nostalgia rather than outrage. The real trouble began recently when the airline made critical changes:
- First layoffs in history
- Introduction of baggage fees
While the layoffs may have been necessary amid dwindling revenues, these changes alienated loyal customers. In the first quarter of this year, Southwest reported a $149 million loss, reflecting how essential brand differentiators can vanish in a blink.
The Burden of Baggage Fees
The introduction of baggage fees was a breaking point for many long-time customers. For years, Southwest had marketed their "Your bags fly free" policy, which removed a significant worry for travelers. Changes made for business rationale resulted in a brand now functioning like any other airline, and the loss shows the danger of departing from core brand values.
Target: A Case Study in Brand Betrayal
Now, let’s turn our attention to Target. Humorist Will Cuppy once stated that “[The dodo] seems to have been invented for the sole purpose of becoming extinct.” Target’s abrupt discontinuation of its Diversity, Equity, and Inclusion (DEI) programs seems equally reckless.
In a politically charged environment, President Trump targeted "wokeness,” leading companies to reassess their DEI efforts. On January 24, 2025, Target joined the mass exodus of organizations abandoning these initiatives. The aftermath was swift: Target’s stock plummeted from $138 to $96.50 by late April, while foot traffic in stores declined 9% year-over-year.
Understanding the Reasons Behind Sales Decline
While some analysts attribute the drop in sales to organized boycotts, it’s crucial to recognize that many customers were unaware of the protests. The backlash against brands is often slow to build, unlike the blazing speed of last year’s boycott against Bud Light.
Target’s customer demographic generally views the brand as a stylish alternative to Walmart. Shoppers are drawn to Target for its better aesthetic and higher-quality products. However, a Reddit user expressed concerns that Target has cultivated a facade akin to Walmart, raising questions about authenticity and brand loyalty.
No Middle Ground in Inclusivity
Target has presented itself as an inclusive brand for years, engaging in initiatives for Black History Month and supporting Pride Month. They faced backlash for selling Pride merchandise, which they ultimately retracted in many stores but kept online. This attempt to straddle two worlds ended in misalignment, leaving many customers feeling betrayed.
With a storied history of supporting diverse communities, the abrupt DEI retreat was perceived by many as a betrayal of brand values. Target’s attempts at damage control, including meetings with social leaders and reaffirming their commitment to featuring Black-owned businesses, have thus far failed to bridge the rift with LGBTQ+ shoppers.
The Core Commodity: Trust
In the end, businesses primarily sell one thing: trust. Had Target’s management consulted their marketing team regarding the implications of abandoning DEI, they would have received a resounding, “[EXPLETIVE DELETED!?!] ARE YOU OUT OF YOUR [INSULTING EXPLETIVE DELETED] MIND?”
Marketing experts like Jim Stengal, former CMO of P&G, remind us that “you can never know your customers too well.” It’s a lesson that resonates deeply for Target and Southwest Airlines.
To save themselves from further turmoil, perhaps these companies should revisit their core values and strive for a genuinely inclusive and loyal brand experience.
For further insights into marketing strategies in today’s polarized climate, check out articles on marketing in the age of outrage and authenticity during Pride Month.
