BUSINESS MARKETING COLUMN: Position and vision are the future

Font Size:
Default font size
Larger font size

In about 30 years, between the early 1950s and 1980, the number of breweries in America plummeted from about 350 to just 40. Large companies became huge and forced out or bought out companies that could no longer compete.

Of course, this is nothing new. It has happened since the advent of capitalism. Many smaller companies hold on as long as they can, others capitulate early, and some determine to fight back. A few of those fighters thrive.

In the mid-1800s, Leinenkugel brewery was founded to slake the thirst of Chippewa Falls, Wisc., lumberjacks. It survived prohibition by bottling soda water, and in the early 1960s, powerhouse Schlitz Brewing introduced Old Milwaukee, a budget brand that underpriced Leinenkugel and took market share.

Determined to fight back and thrive, Bill Leinenkugel took some marketing classes, learned the concept of "positioning" and developed a line of more expensive, craft beers outflanking the much larger and more powerful competition. Eventually, Leinenkugel was purchased by Miller Breweries -- now SABMiller PLC -- and has become a national brand.

I happened to learn this when I read Bill Leinenkugel's obituary. His story got me thinking of all the small, local businesses that have succumbed to large, better capitalized, better managed, more aggressive businesses that move in and take over the territory. Leinenkugel must have realized that, if his company was going to compete, it would have to change. He changed product offerings to appeal to markets his competitor didn't go after and created new customers.

Often, the small business doesn't, or can't, reposition itself and its products to outflank the competition successfully. But, in every industry, a few are able to figure it out and manage the herculean task of being able to change enough to attract customers and grow even in the face of daunting odds.

Obviously, they have enough confidence, resources, energy, vision, power-of-will and a little luck to get the job done. The companies that figure it out are icons that every small business should look to as examples of vision and position to ensure the future of the company.

Opinions expressed solely are those of the writer. Larry Galler, of Larry Galler & Associates, is a marketing and management consultant for small and mid-size companies. For more information or to get his free report, "Tolerations driving you nuts? Eliminate them now!" contact larry@larrygaller.com or call (219) 464-9463.

Print Email

/business/local
Current Conditions
43° F
Sponsored by:

Connect with Us

My NWI