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Ailing Brands

The Sydney Morning Herald cemented its reputation for hard-hitting reportage on Tuesday with the story of the ‘Ninja’ Kangaroo who was wrestled out of a Canberra home by a man in his undies.

What caught my attention was the final few lines of the piece, which manages to namecheck Bonds’ undies twice.

Given the backlash resulting from its parent company’s decision to cut nearly 2,000 Australian jobs and move manufacturing offshore, this publicity couldn’t have come at a better time for Bonds…

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Barely two years ago, Starbucks CEO Howard Schultz admitted in a leaked memo that the chain had lost its passion for coffee, admitting that its ambitious growth had seriously damaged the brand experience. Last week he announced that Starbucks is moving into instant coffee.

Creating a genuinely superior instant coffee offers Starbucks a platform for huge growth, particularly among those consumers who do not currently visit its stores. However, there is inherent risk in Starbucks associating its core brand with the instant coffee category.

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