Why Unilever, General Mills And Procter And Gamble Aren't Good At Marketing In The Modern Economy
For years, brands from huge companies like Unilever and Procter and Gamble didn’t have to worry about their marketshare. Their size was their advantage. But in Kimberly Whitler’s new Forbes column, Simulmedia CEO & Founder, Dave Morgan, argues that as a result, those companies actually became B2B companies. With a constrained distribution model, one of their keys to success was keeping their channel partners happy. In doing so, Morgan argues, they lost touch with their customers.
Contrast this with the rise of direct-to-consumer brands like Harry’s Razor and Dollar Shave Club. Together they’ve given the people what they want, and in turn, have taken nearly 14% of the men’s razor market in just five years. Companies don’t need access to big retailers anymore, Morgan says, and the big consumer brand companies aren’t ready for the disruption. The only question is if they’ll be able to adapt before it’s too late.