Companies need to turn a profit to be viable and have longevity and this is usually achieved by adopting a multi-pronged approach.
Pedalling novelty can certainly bring in the money. Apple’s success is predicated on their phenomenal ability to convince customers to upgrade to the latest model or embrace the latest trend.
Cutting overheads can also improve the bottom line. Streamlining processes and reducing waste are challenges that every company faces and grapples with on an ongoing basis.
However, there is no one foolproof formula for success and there are times when amorphous qualities like “sentiment”, “childhood memory” and “patriotism” can throw a spanner in the works as the relatively new owners of Cadbury have discovered. A recent study in The Grocer showed that controversially changing the chocolate in a Cadbury’s Creme Egg has cost them a massive £6 million in lost sales and threatened their dominance of the Easter market.
This is not the first change implemented by the American owners Mondelez that has trampled on the much-loved traditions of Cadbury. Rounding the edges of a Cadbury’s Dairy Milk, reducing the size of a Cadbury’s Chocolate Finger and scrapping the Christmas practice of giving chocolate to retired former workers may save the company some money but does not go unnoticed and may have lasting and damaging effects on the company’s reputation.
Change is undoubtedly necessary to the success of any organisation, but mess with a classic at your peril!