Re: Nelson Peltz, Activist Marketer, Fortune Magazine, July 10,2008
Brand strategy is shrouded in secrecy by most brand driven companies. And the more successful the brand is, the more likely it is that the group responsible for its creation remains around for a long time, each successful year growing more confident, and frequently less open to opinions from outsiders. We see this phenomenon in our politics and we see it in our businesses. Insularity and smugness kill brands.
When businesses falter, how frequently do they go back to the business's founder or early leaders seeking to be rescued by those who had the "original formula" down right? Sometimes, I think the reason why this strategy works at times is because the founder has been disassociated with the business long enough to have seen it from the outside, not because he possess the deep, hidden secrets on which he built his original success. Steve Jobs is certainly credited with turning Apple around and Howard Schultz was brought back to Starbucks with great fanfare. The jury is still out to determine what Schultz learned while away from his creation.
So, this little article about activist investor, Nelson Pelz, has an important message. But it's not that Mr. Pelz is or is not a wonderful marketer. The message is how valuable it can be to bring some fresh air into the insular brand strategy and marketing thinking of established brand driven companies . In Pelz's case, he has bought his own ticket to the party by owning more than 5% of the company's with whom he shares his advice. Management could hardly afford to ignore his views.
But one would hope that enlightened brand managers would seek the views of those who are sometimes outside of their inner circle. Someone has to tell us when the emperor is wearing no clothes!
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