Wednesday, July 16, 2014

How Lack of Early Innovation Kill Brands, The Nokia and Peugeot Example

Prior to 1999 in Nigeria, Peugeot Automobile was the number one car in Nigeria. It was described as a car for the elite and mostly used by Government. The 504 model was the official brand for the Government at all levels in Nigeria, Federal, States and Local Government. This made the brand, Peugeot to become over confident and relied on what I call “NOW” success. 

They became ironclad in their ideas in terms of innovation and improvement of their cars while other brands of cars were more concerned with innovations. Today, Toyota brand has taken over from Peugeot, Toyota is now number one car for individual and Government in Nigeria. The question is why? The simple answer is innovations. There is no year or even months that Toyota does not change or modify its brands to suite current aesthetics and demand while Peugeot only started innovation while it was too late.

The same thing can be said of NOKIA phones. When Nigeria started using mobile phones in 2001, NOKIA was the number one choice for all, it was popular because of its durability, long lasting battery life span and its functionality. When other brands are going into android, NOKIA refused to join the fray, SAMSUNG took advantage of it and today, they are competing with iPhone and other major brands while NOKIA is at the background.

My advice to all brands is, they should pay more attention on consumption pattern rather than bask on their past glory. Innovation is the key and not past acceptance or space in the market. Take the giant step, do a market research and make sure your target market is carried along on time before they taste other brands that may shift their attention from your brand.

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