How To Survive and Thrive in 2010 Synopsis Having decided that we are going to survive and thrive in 2010… <ul><li>How you are we going to do this? We are going to do it by: </li></ul><ul><li>- re-evaluating our business proposition </li></ul><ul><li>using the power of marketing </li></ul><ul><li>getting our overheads under control </li></ul><ul><li>lightening the ship if necessary </li></ul><ul><li>managing cash closely </li></ul><ul><li>servicing the hell out of our existing customers! </li></ul><ul><li>valuing suppliers </li></ul><ul><li>keeping the bank informed and staying positive </li></ul>… not forgetting to play golf!
How To Survive and Thrive in 2010 Acivities 1. Focus on value 2. Stay connected with existing customers 3. Maintain marketing spend 4. Adjust pricing tactics 5. Grow market share 6. Get better brand awareness Eight key marketing activities in a recession: 7. Emphasise core values 8. Adapt marketing strategies to suit the times
How To Survive and Thrive in 2010 Focus on value When economic hard times loom, we tend to retreat indoors We look for cosy family scenes in advertising to replace images of extreme sports, adventure, and rugged individualism. Greeting card sales, telephone use and discretionary spending on home furnishings and home entertainment will hold up well, as uncertainty prompts us to stay at home but also stay connected with family and friends. Stay connected with your existing customers
How To Survive and Thrive in 2010 Maintain your marketing spend This is not the time to cut advertising and marketing It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower costs than during good economic times. Uncertain consumers need the reassurance of known brands, and more consumers at home watching television can deliver higher than expected audiences at lower cost-per-thousand. Increasing the use of email marketing gives more immediate sales impact. … but get your overheads under control
How To Survive and Thrive in 2010 Review product portfolios Re-forecast demand for each item in your product lines as customers trade down to models that stress good value, such as cars with fewer options. Tough times favour multi-purpose goods over specialized products, and weaker items in product lines should be pruned. Industrial customers prefer to see products and services unbundled and priced separately. Gimmicks are out; reliability, durability, safety and performance are in. New products, especially those that address the new market reality and thereby put pressure on competitors, should be introduced, but advertising should stress superior price performance, not corporate image. In tough times, price cuts attract more support than promotions
How To Survive and Thrive in 2010 Adjust pricing tactics <ul><li>Customers will be shopping around for the best deals. </li></ul><ul><li>You do not necessarily have to cut list prices, but you may need to: </li></ul><ul><li>offer more temporary price promotions </li></ul><ul><li>reduce thresholds for quantity discounts </li></ul><ul><li>extend credit to long-standing customers etc. </li></ul>… and manage cash closely
How To Survive and Thrive in 2010 Grow your market share… In all but a few technology categories where growth prospects are strong, companies are in a battle for market share and, in some cases, survival. Knowing your cost structure can ensure that any cuts or consolidation initiatives will save the most money with minimum customer impact. Savvy organisations increase their spending during a recession with a specific view to gaining additional share and better brand awareness at the other end. … and get better brand awareness
How To Survive and Thrive in 2010 Emphasise core values Although some companies are making employees redundant, owners can cement the loyalty of those who remain by assuring them that the company has survived difficult times before Maintain quality rather than cutting corners Service existing customers rather than trying to be all things to all people. Spend more time communicating with customers and employees. Successful companies do not abandon their marketing strategies in a recession they adapt them to suit. Adapt your marketing strategies to suit the times…