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David is Beating Goliath and You Can Too
David is Beating Goliath and You Can Too

David is Beating Goliath and You Can Too

Cleveland, Ohio
November 17, 2017 02:15pm | Updated: December 16, 2017 10:35am
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he battle royal between marketing giant Procter & Gamble and activist investor Nelson Peltz is a case study on the effective use of digital marketing currently playing out before our eyes. Mr. Peltz says “P&G (Goliath) suffers from market share erosion and low organic sales growth due to smaller companies (David’s, just like you and me) using digital marketing more effectively”. In the middle of the proxy battle this summer P&G dropped a bombshell on the digital ad world by eliminating $140 Million of what it called ineffective digital ads in the 4th quarter of 2017 alone. Many observers implied if P&G doesn’t think digital ads work, digital ads must not work, right?

Just like you and I, Mr. Peltz’s objective is to create sustainable long-term value at P&G. Not by cutting costs in areas like marketing or research and development but to use those resources in new and effective ways by embracing the digital disruption in order to increase business and add value. Mr. Peltz eloquently proves his point by demonstrating how smaller upstarts like Harry’s Razors and Honest Company are doing digital right and are currently stealing market share away from the P&G.

This article will outline how Mr. Peltz is advocating P&G can do digital right to grow their business units using the same low-cost digital channels available to everyone with a laptop and internet connection.

The Old Model “Big is Beautiful” has Left the Building
Unheard of before the digital age, small, mid-sized and local brands properly deploying digital are taking market share away from the behemoths. Mr. Peltz says the “Big is Beautiful” model is threatened as the internet and social media eliminate barriers to entry for new (and savvy) brands. In other words you don’t have to be big to succeed, all you have to be is agile.

Embrace Digital Disruption and get Ahead of the Curve
Digital has disrupted business functions at all levels but none more important than attracting your Next New Customer. The digital ecosystem has leveled the playing field diminishing the “moat” of owning shelf space at mass retailers. The digital age disruption is much more dramatic than just the “retail apocalypse” in the news. P&G’s current challenges prove digital is an opportunity for SMB’s, professionals and non-profits of Biblical proportions.

Digital Has Leveled the Playing Field
Mr. Peltz recommended strategy for P&G: Run like a series of smaller connected companies to be faster moving more locally adept and more fit to compete in today’s rapidly changing environment.
Small, mid-sized and local brands are now better able to utilize the digital ecosystem (social media, digital advertising, and online channels) to level the playing field with P&G.

Must Win at Digital
SMB’s, professionals and non-profits must win at digital, failure is not an option. The B2C consumer and B2B purchaser carries the digital swiss army knife of procurement with them 24/7. If they don’t like what they find about you online, you are losing business.

P&G has spent untold millions on digital and is still experiencing “market share erosion”. Mr. Peltz points to the way smaller competitors like Harry’s and The Honest Company are successfully using new digital strategies to take market share from P&G. The question isn’t should we use digital or not? The right question is what is the most effective digital strategy to use to grow your business in the digital age.


Keep those calls and emails coming.

Thanks, Mark

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