Get this: 73% of people who currently use Tide laundry detergent report that it was the detergent of choice in their household growing up. This is an important part of a business model–when you own a business that seeks to maintain the same customers for life, it is important to understand the source that creates the habit. When it comes to laundry, you buy Tide because your mom bought Tide. Most importantly, it suggests that the purchasing habits formed during youth are critical to business success because it becomes part of the invisible script that sticks with a person throughout life.
Take a look at smoking rates once the old guard tobacco companies … Read the rest of this article!
Since I began covering stocks in 2011, almost every company imaginable has gone through an unpopular period. People didn’t want to touch Johnson & Johnson for a while, as a string of manufacturing recalls punished the stock in the $60s. An inability to deliver sales growth concurrent with price increases kept Procter & Gamble stagnating for a few years. A decline in the price of energy companies sent ExxonMobil and Chevron stock down 30% or more. General Electric, possibly the greatest industrial giant in the world, saw its price hover in the teens before recently becoming more appropriate priced around $28. Poor short-term news at Wal-Mart has sent the stock currently down to … Read the rest of this article!