Page 31 - index
P. 31
THE SLOW CHANGE OF is changing. It reflects the art of
business from consolidation to the possible and captures the most
disrupters, innovators and high desirable fragments of customers
value-added competitors is causing many from incumbent brands.
companies to rethink their future. This
is because they have realised that the This makes many others sit up and
more innovative companies are able to take note. It also causes the industry
achieve far greater levels of profitability leaders to experience a low level of
– whether in products, services, retail discomfort and the visionaries to ask
models, business models or any other serious new questions.
unique way of working.
Right now, many brands are large and
Just as business is changing, so too almost omnipotent, making it difficult
is brand marketing, which is evolving to assess how digital technology will
as a result of digital disruption. The change some industries. It is also not
simple truth is that rapid technological as though every large brand will lose all
advancement is changing brands, their customers overnight.
whether they want to accept it or not.
Yet it is a reality that every single big
Similarly, even if a large and brand will at some point lose customers
established company writes off new to small flanking brands. This movement
upstart disrupters as being merely of clients may not be large at first and
peripheral, they may very quickly will often start with the more agile,
profitable and aware consumers. But
? the early adopters may, in time, become
Engagement with more a mainstream trend, which is
customers cannot when the big players really start to feel
be faked anymore the effects of fragmentation.
become central. It is a reality that For example, over the years the banks
businesses have to contend with; the have lost much of their traditional
world has changed and continues to do product and service offerings to other
so at a faster pace every day. brands. This may not have impacted the
organism significantly, but it is indicative
Indeed, even if an established of a trend that will accelerate with the
company genuinely believes that availability of new technologies and
nothing in its market will change, it still the ease with which new brands are
has an obligation to review whether its established in the digital era.
competitive context will evolve and to
rethink how it works and markets. Managing fragmentation within a
business is facilitated with personalised
From full-frontal attacks to brand media and far greater depth of consumer
fragmentation insight. Yet, fundamentally, defending
I call the break up of many industries – one’s market share must start with
into a plethora of consumer offers and acknowledging that fragmentation is
brands – fragmentation. Fragmentation happening in the marketplace.
is not a full-frontal attack on any given
brand, or even an industry, but it does Brand representation moves from two
signify that the paradigm of competition
dimensions to interactive give-and-take
The tradition of brand marketing was
based on brand representation of
a ‘flat’ surface. This means it was
based on what the brand wanted to
present to the consumer, rather than >>
August–September 2016 strategicmarketing 29
