A story of survival and thrival* in the 1920s
In the dim, distant past of studying for my marketing degree I remember a case study that I thought rang true for our current situation. So, I thought I’d slim it down a bit and share it with you.
What do you do in times of business adversity? Well you can cut costs and focus on survival or invest in the latest innovation in the hope you thrive.
This famous example occurred in the great depression of the 1920s when two companies dominated the breakfast cereal market, Kellogg’s and Post. The Post Corporation cut costs and focussed on mergers and acquisitions. Kellogg’s invested heavily in a risky new product – Rice Krispies. Rice Krispies were inexpensive, novel and popular with children because they indeed do go ‘snap’, ‘crackle’ and ‘pop’.
Kellogg’s profits surged and they overtook Post to become the undisputed market leader.
While we are all not going to invent the next breakthrough in breakfast cereals over the next few weeks it can be a time to do those little tweaks to your membership offering that under normal circumstances you just wouldn’t have the time to do.
*Made up word.