Losing The Plot: Companies Struggle When They Forget Their Big Idea
Many companies are finding it increasingly challenging to connect with their customers in a meaningful way. The problem is that either these companies never had a strong narrative to begin with or have lost it along the way. Take, for example, Levi’s—a company that revolutionized the garment industry by making jeans a global phenomenon. But Levi’s represents more than just denim. When someone buys a pair of Levi’s, especially a teenager in Berlin or Bangalore, they are buying into the idea of America. However, this concept no longer resonates in Levi’s domestic market. And it’s not just B2C companies facing this challenge; B2B companies are also affected by the shift in customer behavior.
**Super Bowl ads** last week were filled with nostalgia, taking viewers on a trip down memory lane. However, what seemed to be missing from these advertisements was a big idea that speaks to the present. There was no Apple “1984” vision or Dodge “God Made a Farmer” message. Nostalgia may evoke positive emotions and remind us of why we love a company, but it can also be a sign of declining relevance. Companies that rely on nostalgia often imply that things are not going well for them in the present.
Indeed, things are not going well for many companies. Connecting with customers in a meaningful way has become increasingly difficult, resulting in sluggish growth. The strategies companies have traditionally employed to drive growth, such as price cuts, discounts, and loyalty programs, are no longer yielding the significant, sustained gains required by brands and expected by investors. This is due to a profound generational shift in customer behavior, led by Generation Z, who prioritize experiences and value meaning over material possessions. Customers today are not just buying products; they are buying into a company’s mission and values.
This shift in attitudes and behaviors has significant implications for companies looking to grow. Brands must offer consumers something to believe in—a compelling and authentic narrative that goes beyond simply making money. This narrative should be evident not only in marketing efforts but also in product design, hiring decisions, and investment choices. As Harvard Business School professor Theodore Levitt famously said, people don’t want a quarter-inch drill bit; they want a quarter-inch hole. Companies that focus solely on product features or price are missing the bigger picture.
Some companies find themselves stuck in the quarter-inch drill bit stage, engaging in price wars or touting minor product improvements. This includes companies like Temu, which presented the not-so-novel idea of cheaper online shopping in its Super Bowl ad. Other companies may have outgrown their once successful narratives. Apple, for example, thrived on its “Think Different” ethos, which resonated when it was challenging the Windows OS standard. However, today Apple is the status quo, and its marketing efforts have shifted to highlighting smaller features rather than a grand vision.
Companies also face challenges when customer mindsets evolve. Levi’s is a prime example. The company redefined the global denim market, representing more than just jeans—it embodied America, freedom, and opportunity. However, this narrative no longer resonates with American teenagers who are increasingly aware of America’s history of structural inequality and racism. Levi’s must find a way to regain relevance in the domestic market and avoid being reduced to selling commodity products.
Not even B2B companies are immune to the shift in customer behavior. Salesforce, for instance, built its success on convincing enterprise clients to embrace cloud-based operations. However, as more companies migrate their systems off-premises, Salesforce needs to find another big idea to stay relevant. This requires more than just a new ad or marketing proposition—it demands a compelling reason for being.
In times of uncertainty and a loss of narrative, companies often turn to nostalgia as a crutch. Yet, relying on the past is not a forward-focused approach. It is crucial for companies to rediscover and adapt core ideas that resonate with today’s consumers. This involves not only marketing efforts but also product development, customer segmentation, and employee recruitment. Patagonia is an excellent example of a company that understands the importance of a clear mission and attracts like-minded individuals who are passionate about saving the planet.
Rediscovering and revitalizing core ideas is undoubtedly challenging for businesses. However, the alternative is stagnation and being left behind in the past. As companies navigate this shifting landscape, they must find ways to create a future that resonates with customers and maintains their relevance.
Analyst comment
Negative news: Companies Struggle When They Forget Their Big Idea
Market analysis: Companies that fail to connect with customers in a meaningful way and lose their big idea will experience sluggish growth. Relying on nostalgia and outdated narratives may lead to declining relevance. Companies must adapt to the shift in customer behavior and offer a compelling and authentic narrative that goes beyond making money. Rediscovering core ideas is crucial for staying relevant and attracting like-minded consumers.