I have also had the benefit of seeing how the businesses that operate in the industry work first hand. How competitive it is, how expensive and how much it is driven by the corporate dollar and support of their sponsors.
So today is an interesting day as I digest the news that my favourite team, the one I buy merchandise from, the one I follow intently over each season and the one I have taught my kids to support, have changed their product. Next year my team won’t be driving Holdens- they will be driving Nissans. The horror!
Now don’t get me wrong. The business of racing cars is in reality part of the entertainment industry. For businesses in the entertainment industry to succeed they have to have a product that the public wants. This extends further in sport to the need for success. A successful product creates interest which generates support which generates revenue which generates investment and innovation which generates success and the circle goes. It is for that reason that the decision by Kelly Racing is a smart business decision and is also a decision which is good for the sport.
But what about me and the heap of other disappointed fans (consumers) that are lamenting the change away from “The Lion”? How can they keep us on board, keep our support, and keep our merchandise and corporate dollar flowing. They have to re-engage us. The Kelly Racing Team saw this first hand yesterday as they were bombarded with hate mail on social networks and unpleasant phone calls to their headquarters. How dare they?
This is no different to businesses that do not race cars as their core business. A fundamental change in your products or services is risky. Even though it may be an improvement on the old product or service it needs to be sold to your market. You are, despite your innovation, back to stage 1.
So how do you successfully manage the transition?
- You need to have a plan as to how the new product is going to be presented to the market, before you take it to market. When, how, who?
- You will need to communicate and sell the benefits of the change (especially considering that you now have no track record with the new product). What is the marketing plan, what mediums will you use, how much do you spend?
- You need to ensure that you are aligned with and have effectively communicated the benefits of the change to your stakeholders; your suppliers, distributors, financiers and team.
- You need to educate and train your team on how to how to manage the emotional backlash that will inevitably come.
Andrew Mattner
Hattam McCarthy Reeves
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