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Archive for the ‘Credit Crunch’ Category« Previous Entries Next Entries »Less Is Definitely Not MoreWednesday, June 17th, 2009
In the latest Marketing magazine e-newsletter, bringing us up to date with the top marketing stories from the U.K. and around the world, two stories caught the eye. They focused on two very different industries – food & drink and airlines respectively – but shared a common theme. In the first article, we were told that Mars and Snickers have reduced the size of their chocolate bars, while retaining the same prices. Both have shrunk 7.2% (from 62.5g to 58g), but a Mars bar will still retail for 37p and a Snickers remains at 41p. Nobody is denying that many major corporations are under pressure at the moment. In fact, Ryanair last week reported its first loss for 20 years. But this low-cost airline could easily have decided to increase the price of all its tickets by just a couple of pounds without most customers noticing; instead it has chosen a controversial move which has caused uproar, will deter some customers from even considering flying with the airline in future, and does not position the company particularly favourably. Similarly, the Mars/Snickers strategy is being put in place to help these brands absorb the rising commodity costs they are facing, but their competitors are facing the same challenges and, as yet, have not resorted to such seemingly drastic measures. Never forget how important your customers are. However tough the environment might be for you, things will be just as bad – if not worse – for your customers. Certainly nobody wants to feel they are getting less for more – or even less for the same price – especially at the present time. The most successful companies when this recession ends will be those who have continued to research, understand and satisfy the needs of their customers. This may not mean offering your product at a cut price, but it almost certainly will mean offering value for money. Trend SettersFriday, May 22nd, 2009
In her first contribution to the Thursday Night Insight series, Research Executive Bianca Boey looks at why market trends can often give us a good indication of future behaviour. ‘Recession’, ‘Credit Crunch’, ‘House Price Crash’. These are all terms that have become a regular part of our vocabulary in reflection of our current economic situation. The global economy is declining daily and affecting everyone and everything within its reach. You can not turn on the television or leave your house without being bombarded in some way by reminders of our economic crisis, whether it is hearing about another company going bust or news of MPs misusing expenses to have their moats cleared whilst the rest of the nation is struggling to get by. So, imagine my surprise when I went out last weekend and was faced with a setting where the recession did not even seem to exist. I had entered a modern day Shangri-La where I was surrounded by Armani, Gucci and Prada! This magical place that I had stumbled upon is the trendy village of Alderley Edge, one point of Cheshire’s ‘Golden Triangle’ which consists of Alderley Edge, Wilmslow and Prestbury. Just down the road from B2B International’s Manchester offices, the ‘Golden Triangle’ is home to many Manchester United and City football players as well as various celebrities and wealthy businessmen. There are more millionaires per square mile here than anywhere else in Britain and women flock from all over the North in the hope of ‘bagging’ a footballer (I know what you are thinking and no, that is not the reason that I was there…) and being accepted in to this recession-free society. As I sipped my modest glass of Pinot Grigio and watched the scantily clad girls with bleached blonde hair pouting from behind a bottle of Cristal whilst keeping an eagle eye out for the presence of any footballers, I found myself asking, what exactly is shielding the ‘Golden Triangle’ from the credit crunch? Yes the area is idyllic, surrounded by countryside, boasting results-topping schools and filled with history and culture, but does this explain why it has remained so unscathed? Apart from the clear presence of affluence in the area, I can not answer the question of why this haven is able to turn its expensively reconstructed nose up at our current downturn and also at other economic crises in the past. If we look further back to the last house price crash in the late 1980s/early 1990s, we can see that the ‘Golden Triangle’ yet again fared this crisis well, with property value here remaining high whilst elsewhere in Britain houses were slipping in to negative equity. Maybe the question I should be asking is not why this has happened, but how can we utilise this knowledge? Ok, I admit that it would be rather flippant of me to suggest that we all cope with the house price crash by jumping in to our Bentleys and taking our spare million to the ‘Golden Triangle’ to purchase a house next door to Cristiano Ronaldo. Obviously, unless you are one of the few incredibly wealthy members of society, this is not possible! However, if we consider the implications of this in a wider sense, we can see the importance of being aware of and analysing both past and current trends before making any significant decisions or predicting future developments. The house prices in the ‘Golden Triangle’ maintained value in the past crisis and so far they have continued on in this way in the current crisis. This clearly suggests that in a similar future situation house prices here will continue to remain steady and therefore we can predict that this is one of the safest places in the UK to invest in property. This theory applies in the business world as well, and it is vital for companies to research and become aware of market trends and changes in order to release the right products, at the right time, in the right place and market them in the best way possible. I know that I will definitely be making sure that I have done my research into past and current market trends before making any important investments or decisions in the future – unless, of course, I do succeed in ‘bagging’ myself a footballer! Marketing Strategies In The Current Economic EnvironmentWednesday, April 22nd, 2009
B2B International recently hosted an online survey for Julia Cupman on marketing strategies in the current economic environment as a part of her further studies. This unique piece of research provided insights into how marketing professionals are responding to today’s recessionary pressures. The survey yielded 396 responses from a plethora of organisations representing all industrial sectors, many b2c sectors and most geographies, and which included some of the largest corporates in the world. The research study provided rich insights on the impact of the recession and how organisations are responding to the current business environment. Four out of ten respondents said the effect of the recession has been very significant. As might be expected, national and overseas sales have been affected, investment has been cut back, plants have surplus capacity and there are cash-flow constraints. Nevertheless, around a half of organisations stated that they are optimistic about the economic outlook over the next 12 months. There is a hint that investment in marketing works, given that 58% of organisations with a higher-than-average spend on marketing were optimistic, versus only 44% with a lower-than-average marketing spend. The most common response to the current economic environment has been cutting costs, followed by organisations (re)aligning their focus from a wider offering to core products and services. 29% of respondents stated that marketing is playing a big role as a weapon to fight the recession and there is currently more emphasis on value marketing, finding new opportunities in different industry sectors and channels to market. Click here to read a full synopsis of this study. Darwin And The RecessionFriday, March 13th, 2009
In today’s Thursday Night Insight, Paul Hague puts forward his argument that the recession could be responsible for bringing about a return to ‘traditional values’ Have you noticed an increasing sloppiness in our business attire over the last decade? I am thinking here of the way we dress, the way we speak and the way we communicate. Of course, our forefathers would say that there is nothing new in this. Every generation claims that standards are slipping compared with the previous ones. I’m not sure I fully subscribe to this. Just because somebody wears a Trilby hat rather than an ostrich plumed cavalier hat, doesn’t mean that we are moving backwards. I am thinking about the way we dress for work. The initial concession of “dress down Friday” gave way to the abandonment of the tie on every day of the week. ”Smart casual” became “straight out of the garden casual”. A similar and parallel trend has taken place in our writing. We dash off e-mails without taking care of either the grammar or spelling. Blackberries encourage a curtness of communication verging on sheer rudeness. Text messages have created an interesting but new language which, for some of us, takes longer to decipher and create than the good old English we grew up with. However, the worm looks as if it might be turning and I think that it is the recession we have to thank. Have you noticed that the tie and suit is making a return? Do you get more e-mails which begin “Dear” rather than “Hi”? Are the comma, colon and semi-colon getting a new lease of life? And, if this is so, why should it be? The only explanation I have is that the boom times of the last 10 years created a cockiness which justified the more relaxed way of working. Claims that informal business practices were breaking down barriers, increasing creativity, and improving efficiency were hard to deny as the profits rolled in. In the yin and yang of life – that delicate balance between good and bad, sloppiness and perfection – we can all be guilty of sliding down the route of least resistance. Dress codes, forms of address, written notes have all suffered. And now as the economy tightens, we suddenly feel we can’t leave anything to chance. When visiting a potential client, some small gremlin at the back of my mind advises me to wear a crisp white shirt, pick out a red tie and don my navy blue suit because I have known for years that it engenders confidence in both the wearer and the observer. My notes to clients have increased in their frequency and I try to improve on my accuracy. Perhaps we will see this trend gather momentum so that it isn’t just the things I have been talking about that will change. I predict there will be less automated phone answering systems and more real people to talk to. Perhaps there will be genuine improvements made to services as people fight for every inch of business by trying harder. I am not enjoying this recession at all but I can see it is whipping me into shape. It must be doing the same to others. Darwin would have had great fun if he was alive today watching his principles work out in business. 2009 Key Challenges part 2 of 2Thursday, February 26th, 2009
We conclude yesterday’s article on the two key challenges facing marketers in 2009 by discussing some short-term marketing solutions which will address current needs yet still contribute to long-term brand equity. In the current climate it is understandable that marketers are scrabbling for short-term solutions to compensate for wider financial constraints, but aggressive pricing and slashed marketing budgets may not be the long-term answer. Cutting prices, for example, may make your offering more affordable and available to the masses, but will it necessarily mean greater profits? Even if you are still covering your costs, are you ultimately damaging your brand image? Are you becoming known as a ‘cheap’ provider in more ways than one – that is to say will your hard earned brand reputation become tarnished as you become known for being a cut-price provider? Worse than that is the scenario where people become so confused by conflicting messages that they don’t really understand what kind of provider you are at all, and so steer clear altogether. Some degree of discounting may be inevitable in the current climate – especially if that’s what all your competitors are doing. But cost-cutting should certainly not be done in isolation, or without due consideration. Other tactics to consider may include measures to encourage customer loyalty, improve customer service, or add value to your brand in some other way. For example, a slightly revised product addition to your portfolio may meet the needs of those looking for a cheaper solution from you. Alternatively, you may wish to target new markets not all will be affected by the recession to the same degree. Equally, you might wish to concentrate more on relationship marketing in an effort to retain existing customers by increasing their satisfaction and their loyalty. All of these actions have the potential to continue to be profitable for you long after the economy turns around and, importantly, they can all add value in a way that remains consistent with your brand. In summary, do not compromise your brand position and brand values. Make sure your marketing goals are clear and that every action is taken with your overall brand strategy in mind. « Previous Entries Next Entries » |
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