Many of the world’s  largest brands (by market capitalization) were born less than 10yrs ago , for example Google, Ebay, Amazon to name a few. Traditionalists are astounded at the rapid growth and customer adoption in such a short time span. They frequently question “how did they do that?” One fundamental principle that all these companies adhere to is empowering  their  customers with interactive tools that enable them to make buying decisions based on their terms, as opposed to controlling choice. This involves a significant investment in technology and innovation, evidently it has proven to produce significant returns for those who have the courage to explore.

So what happens when established marketers avoid innovation to protect their heritage . Although brand heritage can be great asset, it can also become an “Achilles  heel” if it hinders change. What does heritage signify. It signifies that the brand has stood the test of time, and succeeded. Many obstacles have been overcome including   wars, depressions, financial disasters, to mention a  few challenges  a brand may face. So why do legacy brands fail?  History has consistently shown that the management of a company is like the rudder of a ship, although its size is small in comparison to the firm, the direction it points , affects the direction of the whole vessel. Style  and culture influence  the stability of a good rudder, there are times when emergency measures are needed to avoid danger, sharp turns may upset some of the crew, however the most successful teams need to be prepared to venture into unchartered waters.

When challenged by new innovative  products and services, arrogant marketers tend to discount these newcomers as farcical. The foundation of their belief system looks to the past for answers and not the future. Regardless of whether it be the fear of change, or lack of knowledge, dismissing change is the favored choice, because status quo is king in their comfortable world. Many legacy brands fuel the appetite of nepotism ,why?, because numerous corporate executives have their inner  network spoon feeding  whatever  they want to hear. Unfortunately many great companies have failed, not because of defective products or inferior quality, but by defiant management.  The children of nepotism are “neppits” , savvy competitors drive “neppits”  to defiance (an excellent strategy for confusion) ,understanding  in advance the destructive  path it will lead  them down. Previous success does not guarantee future success in the post modern world.  No longer will deep pockets alone solve the problem. Instead marketers need to consider contrarian propositions that may refute their current business model. While this may be emotionally painful in the short term, shrewd management should be attentive to different views and consider numerous contradictory tactics, if indeed they are to holistically plan for the future. Proctor and Gamble is one of the most innovative manufacturers in the world, even when commanding the number 1 or 2 position in any market they constantly innovate and research potential new products that could cannibalize their existing brands. The philosophy behind this practice is that it’s better to understand what could destroy you, and potentially own it before it owns or destroys you.

 

Here’s how Woolworths’s a household name in  retailing, was recently felled after 100yrs . Let’s face it none of us like change, especially when it disrupts our comfort and indulgent habits. Consequently we avoid it, and hope it will go away. The risk of innovative avoidance and defiance is like smoking  tobacco, it’s  hazardous and can cause death, but many people do it anyway, knowing  it can kill them. What’s your choice going to be, innovate or die?