Ever try driving down the road while looking in the rear mirror without crashing.? Probably do not want to try this, as you are likely to crash and burn. Even with this common sense knowledge, you will find this analogy going on with companies every day, even though they know this will likely result in failure.
Market driving companies are one’s that find themselves at the forefront of consumer perception, from both a product innovation and market positioning standpoint. Those that “drive” the market vs those that are “driven” by their respective markets, have established creative processes which allow them to interpret future consumer desires, dreams and needs and bring them into reality. When brought to reality, it is packaged, merchandised and marketed as the next evolution/generation that all “early adopters” mush have or be left to follow the crowd. The earlier in the adoption curve the brand can grab these “early adopters”, the longer the product lifecycle and greater profitability at retail. Both good for your customer … the retailer…
Companies’s that are merely “driven” by the market find themselves with a “late adopter” consumer base, competitive pricing pressures and shorter product lifecycle. They must be very adept at managing forecast and inventory turns, within a very short window of opportunity if they expect to achieve any margin contribution.
For this reason alone, the greater your ability to “drive” the market and “core” consumer to your new/next generation of products, the greater your ability to avoid significant competitive pricing pressures, increase your product lifecycle and eventually draw down your product price points over time, while still maintaining substantial margin.
Always look to be the Leader, not a Follower…
Always Innovate, do not Imitate, it will keep you in the “First Mover” position…
Always take Risks, it should the Lifeblood of your Creative Engine…
Enjoy the Ride…!
Bryan Smeltzer
LiquidMind
LiquidMindsite.com
BLOG: “Product Innovation & Marketing Success..”
The author
Bryan Smeltzer is a successful consumer products business executive and entrepreneur. He has held executive-level roles in business development, product, and marketing with some of the world's most prestigious brands, including; Oakley, TaylorMade, Adidas, K-Swiss, Schutt Sports, among other international brands. In addition, Mr. Smeltzer founded an apparel brand, successfully running a profitable business for ten years, eventually selling to a VC firm. He currently oversees LiquidMind Inc., a global brand strategy firm that partners with both start-ups and established brands to empower their businesses to think different, be different, drive a passionate culture, and execute relentlessly.