Failure to read the room costs two giants billions (Opinion)

Knowing how to read the room.

Have you ever heard that expression before?  It means “to be or become aware of the opinions and attitudes of a group of people you are talking to.”  Of course, it is used in a wider capacity depending on the situation and today it can be applied to many things.  From a sales standpoint, it might be a simple as knowing the market and what people want and don’t want.

For example, some of those in high-profile management positions at Anheuser-Busch and Target did not read the room before making costly marketing decisions that have cost them billions of dollars and most importantly consumer loyalty.

What the two did was put themselves in the middle of a controversial issue that has divided many and in their cases backfired mightily.

Beer giant Bud Light’s use of transgender activist Dylan Mulvaney in a marketing campaign back in March resulted in an immediate boycott of the top-selling brew in the U.S. and for seven consecutive weeks sales have lagged way behind what they were at this time last year.  Rival beer companies are relishing the opportunity to steal market share and Bud Light does not have an answer and is finding out that brand loyalty only goes so far.

Target, which has supported and celebrated LGBTQ Pride Month for more than a decade, this year offered a Pride-themed clothing line for children and a swimsuit specifically for transgender women.  Not only did overall sales plummet for the retail giant but employees were harassed by outraged customers, displays were knocked down and threats of violence were made, especially in the more conservative South.

Clearly marketing executives at both did not “read the room” and it’s a good lesson for others.