The transfer was corporate suicide. Wrigley’s corporate strategy failed to identify the impending business storms. Instead of evaluating consumer behavior and attitudes towards Altoids, Wrigley’s was desperate for rapid integration of it business process. The company is rather integrated and diversified instead of doing market research.
Consumers have a tendency of identifying with a brand. Rebranding and transfer of a brand production base alienate a brand from its consumers. This is the case with the planned transfer of Altoids production from Wales to Chattanooga. Consumers lost touch with a product and a brand name they had for a long time identified with. The transfer distances the product from its traditional consumers. Such a clientele forms the larger segment of the brand’s market share. The brand’s competitive edge is lost during such processes as rebranding and transfer of production facilities from a traditional market to a new and far away environment.
As such, Wrigley was wrong in its integration and diversification plan. Their business model should have remained allowing Altoids to continue production and operations. By redefining its marketing plan, Wrigley could have continued enjoying its place in the chewing gum market with Altoids remaining a growing subsidiary. This could have complimented Wrigley’s growing market share.