Greener Pastures for Cash Cows

 

They’re called Sleepers, Sleeping Beauties, Nibs (no investment brands), Bottom Shelf Dwellers or Cash Cows. Most companies have at least one in their brands portfolio. A few decades ago these brands were the mainstay of their businesses. Times have changed, marketers have come and gone, consumers have moved on and companies haven’t bothered chasing the consumer – they’re in the decline stage of their product lifecycle.

The funny thing is these brands still contribute significantly to bottom line. They provide an unmatched ROI because there is no investment! They still enjoy good brand awareness, good image, good distribution and a loyal buyer base, even though in many cases they may sit on the bottom shelf of the supermarket. They are of good quality, reliable, provide value and haven’t been tinkered with.

Their survival in many ways is based on complacency until a competitive product comes along.

What Cash Cows have is enduring brand equity even after years of neglect, especially amongst Baby Boomers and seniors, who grew up with these brands.

The revitalisation of a Cash Cow brand is one way a company can take advantage of the growing 50+ opportunity.  There have been some good international examples – VW Beetle, Mini, Caterpillar and Brylcream.

If a Cash Cow is known over at least 2 generations it has the ability to grow again. Lion Breweries have done a great job in revitalising its icon beer Steinlager. It’s taken a few years of being hammered by international brands to realise they had a Sleeping Beauty. Sure there has been a big investment in the overhaul and obvious understanding of the consumer. But less investment is required in advertising and distribution.

 It will interesting to see who the new Steinlager consumer is. I bet they have good disposable income, are liberal, non-conformist, appreciate quality and comfort and are in their 40s or 50s.

Chris Schultz

MD Senioragency New Zealand

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