Eddie Yoon discusses why companies struggle to see beyond their existing categories. He uses Bud Light as an example: leaders credit marketing for its success, but the real question is why the entire light-beer category exploded. Getting honest answers requires confronting uncomfortable truths senior leaders avoid.
at the foundation, if I go back to your Ross story, it was like, well, how do I start a new category? You know what it was, Francis? It was getting Anheuser. And the leaders are incredible leaders, incredible business people. Getting them to be honest. Oh. And that was really hard.
Well, as strategic planners, we know this problem very, very well because we fight with companies to face the ugliest truth, and they like to boast and tell how, you know, the great job they're doing, as if this is the regular weekly meeting where each person gets up and talks about how awesome they are. And, and that doesn't work. See, there's some brutal— there's some brutal truths that need to be realized. But if without an understanding of category, it strikes me that the only conversations you can have are within the current category. So even if you're brutally honest within the category, you still end up stuck. Am I hearing you right? Oh,
absolutely, absolutely. It's the— just to bring the words you just said to life, it was the way in which we were brutally honest with them was, why is Bud Light successful? Largest beer brand in the world, right? Even today. And they would say, "Well, it's because we're awesome, right? Our great marketing, our great advertising." I mean, they're so famous for their advertising, right? And so, they would say, "Well, of course, it's that." And then, well, like we said, "Well, okay, but why else might it be successful? Why is the category of light beer successful, right?" So, take— because you've grown a ton, but every light beer has grown.