In 2002 Blackberry launched the 5810 smartphone.
When it launched, it was groundbreaking.
You could get your work emails on your phone. There was a single mailbox synchronised across devices. You could hold the device and type with your thumbs.
People loved it. Oprah Winfrey said, “I cannot live without this.” When President Obama entered the White House, it was the only thing he refused to relinquish to the secret service.
By the end of 2008, Blackberry accounted for half the US smartphone market.
But things were about to change. Very quickly.
Apple had just launched the iPhone. When Steve Jobs introduced it he said, “Today Apple is going to reinvent the phone.”
As the iPhone burst onto the scene, the Blackberry team stuck to their belief in the features that had made Blackberry groundbreaking in the past. They were confident people wanted a wireless device for work emails and calls, not a computer in their pocket with apps, music and a powerful internet browser.
When Blackberry founder, Mike Laziridis, raised concerns about the iPhone, his Co-CEO Jim Balsillie said, “It’s OK. We’ll be fine.”
But Blackberry weren’t fine. They weren’t fine at all. Their market share plummeted.
In December 2008, Blackberry had a value of $70 billion. Apple had a value of $65 billion.
Now Blackberry is worth $2.27 billion. Apple is worth $3.69 TRILLION.
Blackberry no longer produce phones.
Why are we talking about this? Most of you reading this will be in the FMCG industry. Fast Moving Consumer Goods. ‘Fast moving’ refers to the rate of the sale of these products. They are bought frequently.
We sell products that are ‘fast moving’. But the way we sell them is often ‘slow moving’.
We often do the same things in the same way. We do them because they are the things we’ve always done. We do them because they are the things that everybody else does. We do them because they are the things that are easiest to do.
It means you end up following the same set of (unwritten) rules as your competitors.
Busy doing things without taking the time to step back. To think about what you are doing and whether you could do it differently. To do a bit of rethinking. To start breaking the FMCG rules.
So, how can you do this?
Plenty more on this in upcoming blogs but for starters…
Rethink your approach to STRATEGY. Take category strategy. A lot of category strategies follow the same rules. Start by setting out everything you know about the category. Throw in a bunch of growth drivers. Profile them to death. Create a long shopping list of actions. All the things the category could possibly do. Share it internally and externally. Then get frustrated as it gets little traction.
Rethinking means breaking these rules. Focus on your category story. Why the category matters. Why the category can grow. A short, sharp set of growth drivers that people will remember. A prioritised set of actions that can make a real difference. Share the story internally and externally in a way that is easy to digest and gets real traction.
Rethink your approach to KEY ACTIVITIES. Take promotions. A lot of promotions follow the same rules. They are focused on this purchase. Getting shoppers to buy you now. They are often predictable. Same mechanic. Same frequency. Making it easy for shoppers to align their purchases with your promotion cycle. They are things any brand can do. You cut your price to £1 this week. Your competitor does the same next week.
Rethinking means breaking these rules. Promotions that are designed to get this purchase AND future purchases. That reward shoppers for loyalty not promiscuity. Promotions that are less predictable. Varied mechanics. Varied frequency. That don’t allow shoppers to align with your promotional cycle. Promotions that give shoppers different incentives to buy – not just a price discount. Things that only your brand can do.
You can rethink lots of things. How you think about category and brand growth – maybe it’s not just about penetration. How you think about channel development – maybe discounters can be a growth engine for your category or brand. How you think about your competition – maybe your biggest competitors are outside your category.
It’s a New Year. Time to do some rethinking.
Because if you aren’t doing it, someone else will be. And by the time they force you to rethink, it might be too late.
It’s why you’re not reading this on a Blackberry.
Feel free to forward. Have a great weekend. Speak to you in a fortnight.