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.
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