When Nielsen analysed over 3,400 new consumer product introductions launched in the U.S. market in 2012, it found just 14 managed to generate at least $50 million in sales in their first year and sustain that momentum into their second. Out of some 17,000 new products launched since 2008, just 62 of them have had that kind of success.
Every brand has two vulnerabilities from an activity point of view: what it’s doing (because that makes its strategy more visible to its competitors) and what it’s not doing (because in failing to act, it generates opportunities for others to do so). Nothing startling there. But Derrick Daye mentioned something recently that I think we need to pay more attention to: the opportunities for “competitive intelligence” – understanding and responding to the underlying attitudes inside a rival brand and the implications of those dynamics competitively. Here’s three examples of things to be looking for and some actions you could take.
As the downtown areas of major metropolitans reclaim popularity and no small element of retail cool amongst the citerati, more and more globally scaled brands are scaling up their physical presence with impressive and expensive flagship stores that literally showcase who they are and what they have to offer.
Every brand manager would like to believe that the world will love their brand. Given how much time, energy and experience they pour into trying to make that happen, that seems like a reasonable hope. But, as Douglas Van Praet observes in a recent Fast Company article, consumers are far from inclined to feel that way. “The human truth is no one wants to connect emotionally to your brand … People want to be [led] to a better life not bond with companies.”
I’m dismayed by how frequently the conversation around content seems to devolve to quantity and tactics. That’s hardly surprising in some ways because of course the two are quickly linked. When everyone’s using the same tactics, quantity starts to look like the only differentiator.
P&G’s decision to formally end the era of “marketing” at the company and make the shift to brand management may accelerate what amounts to much more than a title change for marketers generally. To me, it could point to a fundamental re-examination of the role of the people responsible for brands.
Marketers are busy talking up the value of telling the stories of their brands. But why aren’t more organisations structuring their own strategies and issues as stories, and what role are marketers taking in making that happen?