Managing brands today

BusinessWeek, which I've read for fifteen or more years, is not known for its insight, rather for its timely reporting of not just business news but also trends and analysis. But the current issue (February 14, 2005) has an insightful piece on the P&G / Gillette deal and what it says about brands in today's consumer marketplace.

Smart companies, the article says, "are thriving by managing brands differently than [they] did in the heyday of the mass market." The five branding lessons, I think, are right on the money. Here they are, with only a brief elaboration. (Go to the article for more detail.)

1. Innovate.
P&G combines technology with relevant consumer research to do more than milk existing products.

2. Move quickly.
Consumers are "hooked on innovation," so deliver it to them.

3. Minimize exposure to Wal-Mart.
You need to sell the big guy, and Wal-Mart represents 18% of P&G's volume. But more of it is in higher margin goods, not the easier to commoditize stuff like paper towels.

4. Pay attention to "the new media message."
"The goal is to both target specific customers and to fit the medium to the message."

5. Think broadly.
"P&G has expanded its mandate to become a solver of every problem in the home."

In other words, control your destiny before someone controls you.