KEY TAKEAWAY: Per CNN “LaCroix was once the “it” brand in one of the fastest-growing parts of the beverage market. But bigger, deeper-pocketed companies have caught up, and LaCroix’s popularity is fizzling.” In other words, the brand has been pummeled by competition.
“The LaCroix brand has gone from bad, to worse, to disastrous in a relatively short period of time,” wrote Laurent Grandet, a beverage analyst for Guggenheim, citing increased competition for similar-type beverages and the “lack of meaningful or disruptive innovation” from the drink’s owner, National Beverage.
While some news media outlets are blaming a bogus lawsuit filed by someone who has way too much time on her hands the real reason the brand has declined is simple: competitors are taking huge market share chunks away from the brand.
This is what happens when inexperienced marketers come up against huge brands with tons of in house marketing muscle. LaCroix’s marketing is non-existent, and its owner is to blame.
Key lessons here?
1ne: Even if you are the first entry in a category if you start making a lot of money competitors are going to notice and jump in.
2wo: Brands need to have top-flight marketing talent in house and be prepared to fend off marketers who are going to try and steal market share.
3hree: Measuring brand loyalty is key to every brand. If your brand loyalty is low you need to take steps to raise it and make it harder for competitors to take market share.
4our: Brands need to aggressively fight bogus lawsuits and in some cases sue law
5ive: Every brand needs to do some competitive gaming to prepare for market share challenges.
LaCroix may never regain the share they lost and frankly some people should be fired because of this mess. It’s a lesson to all brands.