If you’re an established market leader it can be easy to sit on your laurels. But in today’s hypercompetitive world, sitting still today means falling behind tomorrow.
This one of Craftory founder Elio Leoni Sceti’s guiding principles. Prior to top jobs at music group EMI and frozen food conglomerate Iglo, he spent over a decade in executive roles at FMCG giant RB. When he was tasked with growing sales in a seemingly saturated market, he stopped trying to steal share, and started to look for innovative ways to grow the pie instead.
"Reckitt Benckiser was the market leader in dishwasher detergent. One in three households in Europe was using our product but we wanted to grow our market share.
"As the leader in that category, the normal approach would be to fight the competitors to get more share through more marketing.
"Instead we decided that it would be more beneficial to work with a number of white goods manufacturers to create a campaign that would grow the market penetration of the appliance itself.
"Every new dishwasher came with our brand associated with it and therefore we were able to leapfrog on the back of the consumer loyalty that was associated with that.
"I call this the principle of opening gaps. Looking for new gaps to open allows you to then find ways to close them."
FOR MORE INFORMATION
Leoni Sceti shares his top tips for successful innovation. Beer boss Lord Bilimoria details how Cobra beer was able to break into a crowded market (with no budget) and to find out how one marketing campaign quadrupled this company’s turnover, read here.