In Episode 218 of Idea Diary - Today, I ramble about Al Ries’ book, “The Future of Your Company Depends on It ” from 2000!
My Notes From the Book:
* Line Extensions can kill a brand, For Example when A1 Steak Sauce decided to invest 18 million into…
In Episode 218 of Idea Diary - Today, I ramble about Al Ries’ book, “The Future of Your Company Depends on It ” from 2000!
My Notes From the Book:
* Line Extensions can kill a brand, For Example when A1 Steak Sauce decided to invest 18 million into making an A1 Chicken Sauce, which obviously no one has ever heard of.
* Just buying and selling line extensions is not a business.
* Small towns have "general stores," large cities have tons of specialty stores. I think the internet creates millions of micro store opportunities.
* Specialization makes countries and companies rich. Also, it can make people rich.
* Technology and products do not converge to survive, and diverge. (However, I think over time technology is converging. Smartphones are now television, radio and telephone combined. I think when this book was written, Al was correct about this thought. However, the speed of technology at this point in 2022, I would like to ask his opinion on this point.
* TOYS R US was successful at the time this book was written, and was the category leader in toy stores. Amazon didn't kill TOYS R US, like we all assume. The investors of the company loaded the company with debt, and drove it into bankruptcy. Also, a cold warehouse style of shopping for toys drove the brand down in its category.
* Managers hired need to be specialized in their field. Remember "Bottom's Up Marketing" Senior Management/Executives, usually can't relate to customers, and Mid-level Management want to diversify strategies to make sure they don't fail, and lose their jobs. Which totally loses the branding and marketing focus. These two groups usually think that growth can do no wrong, but this is false.
* When starting your brand. Select your category. Decide if you want to be better, or different. Better is usually only an option for the #1 Spot in any category, and doesn't actually need to be the better product. Leaders own their category, and own a word in the mind of the consumer. To win a spot on the ladder, you need to be different.
* Defend your leadership by launching a second brand.
* The Market is created by new products and ideas.
* Business needs competition. If you are first and have no competitors, then you can experiment with line extension, but once you have competition you have to defend your spot on the ladder.
* What single product is your best hope for the future? 80/20 Rule. Out of 100% of your efforts, only 20% of your time working is what moves you forward.
* Centralized companies are more focused, and more successful.
* Focus takes time
* Focus is simple
* Focus is immediately understandable
* Focus is not a strategy
* Focus is not forever.
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