Large companies in the UK are not growing their businesses and
marketers are failing to address this.
David Cowan, consultant at Strategies for Growth, and Tony Scouller,
director of Mulcaster PR and Brand Genetics, studied accounts of 25 of
the top 50 companies in the UK, based on turnover in 1993, and
calculated their organic growth rates for the following five years.
The findings showed that when inflation and consumer spending rates were
taken into account only six of the companies were growing faster than
the economy and on average they were declining by -4.6%.
The few companies that experienced positive growth were Rolls Royce, P&O
and Zeneca, with National Power, ICI and Cadbury Schweppes being among
the worst performers.
’There is virtually no new category innovation by large companies, and
research shows that only 7% of new products offer new or significant
benefits,’ said Cowan.
He added that the 95% failure rate of new products was the same figure
that was recorded 30 years ago, suggesting that marketers have learnt
This article was first published on Marketing