A traditional effect on the bottom line

In 1987, I stretched my wings and moved to Fort Collins, Colo. The experience opened my eyes to the struggles of doing business in an untraditional world.

In Colorado, there was little sense of tradition. It was a modern society with most people “doing their own thing.”

I was employed by a local radio station at the time – a station struggling to build an audience from a population that had become apathetic to long-established media outlets. There was very little brand loyalty, and the effect was felt in all industries.

In Colorado and other such states, national icons like Coke were losing market share to competitors and domestic automakers were losing share to foreign brands.

In 1985, Pepsi’s share of the cola market was growing so rapidly, Coke changed its 100-year old formula and dubbed it “New Coke.” It was a monumental disaster, and the company quickly reversed course.

That same year, 80 percent of the new vehicles sold in America were produced by the “Big Three” automakers – GM, Chrysler and Ford. Today, that has slipped to less than 50 percent.

Although part of Coke’s decline in the ’80s and the Big Three’s decline today is their own doing, the rebellion against tradition that began in states like Colorado is a contributing factor.

While Coke and the Big Three are experiencing some decline locally, the region, rich in tradition, continues to carry the brands. Coke continues to outsell Pepsi more than two-to-one in Louisiana and the market share of the Big Three in the Tri-parish area was nearly 70 percent in 2008.

If your family has always driven a Chevrolet or Ford, chances are you will drive a Chevrolet or Ford. A new, innovative line from these companies will simply mean that you’ll enjoy owning it more.

While tradition wanes in other parts of America, it continues strong in South Louisiana, as well as in many other countries.

Traditional brands like General Motors and Ford are having great success in foreign markets where tradition is highly regarded. GM posted 2008 market share growth in 14 of the 26 emerging markets, and Ford increased its 2008 share in 15 of the 19 European markets.

As the national media talks of bankruptcy and dealership closures, there remains a lot to be said about tradition. The Big Three have been our brands of choice in the Tri-parish area, and that is not likely to change.

My mother drives a GM vehicle, and when my father was alive, he always drove a Ford. It is no wonder why my wife and I own both a Ford and a GM product. Tradition affects our buying habits in south Louisiana. It also affects where we live … after just two years in Colorado, I gladly moved back to Louisiana.