Fortune magazine recently published The Food Issue and I was struck by how the CEO’s of major food corporations are facing head-on the huge loss of market share and consumers. I mean large corporations: Campbell’s Soup, ConAgra, and Hersheys just to name a few. A top analyst in the business stated that the top 25 companies have lost about $18 billion in market share just in the past few years: “I would think of them like melting icebergs, every year they become a little less relevant.”
Since I’ve been on the front lines, witnessing the many ways in which Jewish education is trying to transform itself, the iceberg analogy above sounded all too familiar to me. The issues we may think are isolated are not endemic to Judaism. It seems that much larger organizations need to restructure, regroup, and refocus. So I read on, wondering how the leaders of these corporations were tackling these difficult issues, and if there was anything Jewish organizations could learn from their approach.
One thing was clear, no corporation was pretending that the loss of market share was a fading or fleeting trend.
There seemed to be very little ego involved in these corporate leaders’ decisions to rework things in order to gain footing. There was also recognition and some frustration that it would take time for an upswing to occur.
So, I took in what they said, and found commonalities in the list below:
- People want simplicity and the companies are striving to deliver: by collaborating with other food purveyors, buying smaller, successful companies, or developing entirely new product lines to meet the demand. There is an honest appraisal of the company’s strengths and weaknesses, resulting in adaptations that are essential for survival.
- The consumer’s desire for fresh means that the recycling of old products, i.e. “new and improved” just doesn’t cut it anymore. Customers are discerning and pressed for time. There has to be a new, relevant, approach that appeals to the consumers’ needs for what they want, when they want it. Brand loyalty is not generally a factor.
- The customer wants authenticity and integrity above all. Slick packaging or as one CEO says “the barn on the package” (referring to the false advertising of wholesome nutrients) doesn’t fool the customer into thinking that the product is all natural. There has to be substance beneath the product.
- Large organizations, with lots of structural barriers, are at a deficit when they aren’t able to move fast enough to meet the demands of the marketplace.
Many Jewish organizations are in the midst of enacting some of the changes, but many are stubbornly hoping the tide will turn back in their favor. Time in this case, is a luxury that the Jewish community just can’t afford any longer.