Even though I knew our world was bloated and out of control. Even though I groaned every day when I saw the stock market rising into the stratosphere, and even though I wrote a book about marketing that pointed to the inevitable out come of our reckless spending; I never dreamt it would get this challenging. Who did? Yet here we are and I for one am energized by the challenge.
As a business owner I have lived through many recessions; and I have also endured an industry with shrinking demand. All challenges that we survived. When the good times came again we grew and flourished with a more realistic view of the world. However these good times have gone on for so long that many of us have gotten away from the basics. If you are under 40 this is a revelation. Doesn't feel fair does it? Well embrace it for the near future it is your life.
Now it is time to go back to the very ideas and strategies that built your businesses. As I say to the marketing staff at the various businesses we own; "pretend you were just hired by a new company that markets on Mars. You don't know the market place and need to find a way to attract the Martians to your business." Because the truth is we are on Mars and these consumers are ones we have never met before; not even me with my years of experience.
I believe the pendulum that Francis Fukeyama speaks about in his writing has swung in the entirely opposite position from the excess of our time. Now everyone is as frugal as Ben Franklin; even if they have the money to buy. How long can I survive without shopping in the boutiques on Rodeo Drive? Maybe forever. I just don't feel right bringing home another pair of shoes when so many in our society don't have the money to put a proper meal on their family's plates. Maybe this feeling will pass, but not soon. People say to me "if your not buying Lynda, who is?" Well read your mail as they say; very few. Yet people must buy sometimes, they must eat, and soon they will need a new lipstick, or dress to lift their spirits. However that dress may come from H&M instead of Saks.
The basic tenet of a successful brand is Value - it was before and it will always be. It is more important now to our Martian consumers than anything else you can tout. Go back to the intrinsic value in your brand and concentrate your advertising efforts on highlighting that value in the minds of your consumer.
What is your Unique Selling Proposition? What makes you different than your competitors? Wrap your advertising message around that USP and communicate it in a clear and concise manner.
Don't stop advertising. People will forget you, I promise. If you can afford broadcast, print and outdoor...you will be amazed at the savings. Renegotiate all your media buys, assuming money hasn't changed hands. You will get as much as 50 to 65% more for your dollars than you would have a few months before.
But if you can't advertise go back to basics. If you have a business website; make it stickier; redo the merchandising often and try new things until you hit the right homepage...then try and beat that. The most important audience drivers on the internet are paid search and key word optimization. Concentrate on those. They are very inexpensive compared to banner advertising.
At the point of sale, relook at your packaging; can you slap offers on your shrink wrap, can you entice through shelf strips and danglers - do what you can to speak directly to your consumers.
Do you have a relationship with the bloggers who report on your industry? If not start one. It isn't an overnight solution but it sure is a great grassroots one. You can find them on Technorati. Engage them in your plans and your product's virtue. They are the news media today.
And don't forget Public Relations. Tout the virtues of your brand to the media - editors are they are looking for ideas to spark up their content; help them out.
Take this opportunity to streamline your business of every extraneous activity. Get rid of the deadwood and rethink every plan that was made last year to execute now. Don't proceed with capital expenditures unless you are more sure of the potential outcome.
There will be opportunities abounding for those that survive this moment. There is an end; there always is. It may take 18 months or 3 years but we will get out of these bad times and we will start our economy up again. There are big lessons to be learned. I don't know about your experiences in life, but in mine, the worse the lesson the longer the recovery. When it is over those that ran on lean (not empty), those that went back to basics, those that listened to the marketplace like a good friend and responded, will have new opportunities to grow in a healthy way. Business is a marathon not a sprint. Welcome to reality those of you that have never seen a downturn. You will grow from this; you will become wiser I assure you. Good luck.