Posts filed under 'Recession'
September 3rd, 2008
Despite high gas prices and general economic malaise, consumers are still spending money…but trading down to dollar stores and one-stop-shops like WalMart that are closer to their homes or offices. The biggest loser? Home improvement and home furnishing stores.
TNS Retail Forward’s survey shows a trickle-down thing but not in the way some economic theorists expect - shoppers that traditionally shopped at department stores are moving to discount retailers, and discount retailers are losing their traditional customers to dollar stores.
One of the most salient parts of the research shows that consumers (75% of them) are making a concerted effort to plan their errands to conserve as much gas as possible. Other results from the report:
| Planning errands to minimize the distance traveled |
75%
|
| Going to stores where I can do one-stop shopping |
58%
|
| Going to stores that are closer to home or work |
55%
|
| Doing more activities around the house instead of driving places |
47%
|
| Doing more online shopping |
26%
|
| Visiting friends and family that don’t live close by less often |
23%
|
| Reducing miles driven during vacations |
17%
|
| Walking/bicycling to places instead of driving |
15%
|
| Doing more carpooling |
10%
|
| Using public transportation |
8%
|
| Telecommuting to work/working from home more often |
6%
|
So, what’s a local business to do?
1. Partner with neighboring businesses. Saving on gas is making those “lifestyle centers” and downtown shopping districts a whole lot more attractive - park once and get all your shopping done in one location. Organize a sidewalk sale or cross-promote with your neighbor; chances are, people will be drawn in with the promise of saving a few bucks on gas.
2. Offer to rebate a customer’s gas bill. If you’re in a particularly far-flung location, a gas incentive might just be the ticket…provided customers make a minimum purchase.
3. Make sure your website has pricing information and displays sales details prominently. More consumers are doing online research instead of driving from store to store.
4. Highlight any “private label” brands you may offer. Consumers are now more than willing to try store brands to save a few bucks over name brands.
5. Recognize a shifting demographic in your store. You may be losing regular customers to lower-priced rivals but gaining others that shopped more upscale businesses. Capitalize on these new customers and don’t let them go. Capture their contact information to grow your database.
6. Make sure your customers feel appreciated and informed. Don’t let up on customer service just because you’re down in the dumps about the economy. New customers will turn into repeat customers if you provide a quality product at a fair price and with good service.
We’re all struggling at the moment - believe me, with a husband who drives back and forth to Hoffman Estates every day, I know from high gas prices - but we’re all in this together. As the inimitable Jerry Springer says, “Take care of yourself…and each other.”
August 29th, 2008
Teamwork. We’re taught it as children and it’s encouraged in corporations all over the country. But what about working as a team with another business when advertising? Lots of business owners think that’s opening the door to the coop to let the fox in. But it’s not as crazy as it might sound - a partnership with a complementary business, where you pool your advertising and promotional resources to reach more customers, just might make good business sense.
Take the latest partnership between ladies clothier Ann Taylor and laundry superstar Tide and Downy. Through a new joint venture customers who purchase clothing at Ann Taylor will be encouraged to take care of their clothes to make them last longer and to avoid dry-cleaning bills. Oh, and by the way, here’s a sample of new Tide Total Care and Downy Total Care to do just that. Want more information? How about a special promotional “magazine” produced by the Tide folks with articles, how-tos and coupons for their products? Thanks, and have a nice day.
These two businesses are not competitors but each feeds off the other one. Clothing that lasts longer through better detergents will promote the quality brand promise of Ann Taylor…and consumers also see that if Tide can keep my Ann Taylor blouse looking good longer, maybe I could try it for Junior’s jeans?
Local businesses could team up to cross-promote each other too. A camera store and a frame store…an auto repair shop and a carwash…a bowling alley and a movie rental store. The possiblities are endless. And given the economy and the trend for families to be seeking out deals at every turn, giving them the package deal at a discount would certainly gain more eyeballs and interest than a stand-alone promotion.
July 29th, 2008
No news that prices are rising everywhere and consumers and businesses alike are searching for more efficient ways to operate and ways to reduce spending, but stricter budgets can in fact spur good ideas and creative solutions.
Like the housing market which has seen a rise in renovations, additions and refurbishing as a reflection of the slow market, businesses can take the same initiative. Updating and “renovating” your brand can be the perfect vehicle for initiating growth. Think about it- consumers want value and quality. Do they currently encounter value and quality at every interaction point with your product? Maybe you don’t need to revamp the warehouse or hire new staff to help increase sales, maybe a new tagline or well-designed logo that reflects your focus on simple great quality would be the “coat of paint” that spruces things up and reminds customers of your value. (More on taglines- http://money.howstuffworks.com/ad-slogan2.htm)
Listening to consumers will often tell you exactly what you need to know, so if you don’t know what they are saying, now could be a good time to do a survey, create an email campaign to get feedback or come up with a new idea for PR and interaction with your customers. Another point that cannot be underestimated is enthusiasm. With all the budget restrictions it would be easier to fall into a “sad state of affairs” rather than renovate and tout accomplishments, but enthusiasm for the quality of your brand filters into marketing and is apparent to consumers. So now might just be the perfect time to renovate. There are countless ways to make changes that reflect a cosmetic improvement as well as enhanced quality behind your brand.
May 28th, 2008
The Columbus Dispatch featured a story recently that highlights a trend across the country – the “staycation.” Does your business offer amenities that cater to the ‘staycationers’ that will be in Rockford this summer? With the high price of gas, many vacationers will be cutting back on travel and opting instead for spending time and money at home.
Think backyard bliss first of all. What can you offer that would make a backyard better? If your realm of expertise falls under food, swimming, lounging or socializing with friends at a small party, you can bet that there will be an audience this summer for your marketing efforts.
And what about relaxing? Salons and spas should be catering to those who may be staying in town to save some money on gas, yet who still will want to feel that they got some R&R time this summer. A spa and hotel package right here in Rockford could be a nice option for a staycation, but there are certainly those who have not thought of this as a good alternative to travel. With a little marketing effort started soon, the summer could look very different indeed. Use words like reconnect, home paradise, local leisure and highlight saving money without skipping the vacation feeling.
For more ideas, check out The Outdoor Living Guide from Consumer Reports:
http://www.consumerreports.org/cro/home-garden/resource-center/outdoor-living/0705_outdoor-living.htm
Columbus Dispatch article: http://www.dispatch.com/live/content/business/stories/2008/05/25/stay-home_summer.ART_ART_05-25-08_D1_QCA9F64.html
April 21st, 2008
The Bear is on hunt….particularly for small-business owners. Now, I work for a small business, most of our clients are small businesses, and chances are many of you work in a small business too…which is why I found Crain’s Chicago Business‘ special section last week on small-business survival during a recession of particular interest.
Included was a special section about how small businesses can survive in light of a recession. Aside from not cutting your marketing and advertising budgets (see the ADWire post from March 17), there were several other worth-the-read tips, including these two pieces:
March 17th, 2008
It’s well-known among advertising and marketing pros - those companies that maintain or, ideally, increase their marketing dollars during a recession will gain market share and a better return on their advertising investment. Today, the market place seems to be holding its breath (particularly after last night’s firesale of Bear Stearns), and there’s a lot of uncertainty and confusion.
During times like these, business owners may be inclined to pull back on marketing because there are employees to pay and inventories to maintain - and marketing can be seen as just an expense on the balance sheet. But that’s a mistake. Here are just three reasons why you should maintain or increase your advertising during a recession:
- You’ll stand out from your competitors who cut back, and probably eat into their marketshare.
- Customers need to know your name now - people still need goods and services, not matter what the economic climate…and they tend to turn to trusted names and brands during a down economy.
- Customers will remember you when the economy picks up again.
But don’t just take my word for it. John A. Quelch, the Lincoln Filene Professor of Business Administration at Harvard Business School, posted this article - Marketing Your Way Through a Recession - a couple of weeks ago. Or take a look at Marketing Lowdown: Ad Spending During a Recession by Robert Grede, best-selling author of Naked Marketing: The Bare Essentials.
