Discover a way to keep your business presence relevant
By Carina Yeoh
The current business environment is not for the faint of heart. Gillette, one of the almost timeless brands in American business history, which the famous Warren Buffett is a big investor in, is now facing extreme pressure from competitors. In summary, Warren Buffett is admitting the “Brand” game is a lot trickier than he thought.
Gillette’s marketshare dropped from 70 percent in 2010 to 54 percent in 2016.
To be frank, Warren Buffett is somewhat naïve when it comes to brands. Even the greatest investor of all time has gotten it wrong in the last few years with other famous brands such as Kraft.
Gillette won’t die off, but a brand needs to be ever so active.
There is no such thing as a “Passive income” after your Brand has made it big. The truth is a brand does not last without the right kind of direction and nurturing.
All too often older brands have a problem connecting with the younger and newer generation, so they just stick to where they know best: the current demographic which they had gain such a popular following with. They continue to increase spending with this group of consumers.
They see their product or service resonates with a group that appreciates the company. So in return, the company reaches out to the group. Spending and marketing budgets increase and they see it’s nice to be appreciated and these consumers are extremely loyal. But does this really contribute to how to move the brand forward? There comes a point where the well has been sucked dry, and where is the budget for the new wells to dig up?
It’s tough to get to new consumers, to be relevant and gain acceptance. It’s out of most people’s comfort zone
You will face resistance from your own colleagues, even bosses. But once you do reach out, you will have dug a new well. That backbreaking work to gain a foothold with the new generation of consumers pays dividends later on.
The complacency of Big brands to sit back and relax suddenly is hitting home really hard. In the case of Gillette, who finally took them down? It was these boutique online shave clubs and hipster brands which resonated with the younger generation.
Did Gillette perhaps not dig enough other wells to gain acceptance with a new consumer group? It’s probably a major contributing factor among many.