Recession signifies tough times for economies, people and organizations. As people begin to watch their spending, organizations face difficulty in building brands and maintaining their market share. Growth is not even on organizations’ radar in such a scenario. All effort is directed towards minimizing the damage that recession can cause to business. This is where organizations falter.
It is for them to create opportunities for themselves even in recessionary times. A new product line that offers value for money can work much better than imposing a cut in marketing spends. Businesses need to innovate to be valued by consumers as a brand they are unlikely to compromise upon. Position the product as worthy of its price. Brand building is possible even during an economic slowdown if an organization knows how to go about it. Adhere to the following to pave the way for success.
1. Emphasize on product value
Consumers are drawn towards value for money products that give the desirable quality while being affordable at the same time. Highlight the product features that present it as an alternative worthy of the consumer’s money. When it comes to product quality, consumers are willing to pay a premium for an established brand because of the trust factor. Make your product command that price for its standing on the parameters of quality.
2. Introduce a new line of products
There are consumers who are likely to stick to their preferred brands even in times of recession but for some, recession comes as a time to search for products that fit in the budget while maintaining quality standards. Make an effort to cash in on this phenomenon. Introduce a new product line that falls in this price segment. Make your presence felt in market segments within your reach to expand your customer base. This works in times of recession and even beyond that. Capitalize on the opportunities available for expansion even during times of recession.
3. Do not jump onto the price cut bandwagon
Cutting prices beyond levels that are profitable is not a sound strategy. After all, what will an organization do with sales volumes if these only generate losses? There are better ways for customer retention. Emphasis on quality in customer care services gives an organization an upper hand in all circumstances.
Keep your focus on effective customer care. Make your brand synonymous with excellence in customer care. Do not compromise on this even during an economic slowdown to reap rich dividends. Avoid a price war that reduces the value of your products as consumers are likely to resist paying higher later if you slash the prices during recession.
4. Streamline but do not slash advertising spends
Many organizations make the mistake of holding back their proposed marketing campaigns. The emphasis is on looking for the right opportunity, perhaps when the economy is faring better. This is certainly a wrong approach. Marketing efforts are required when things are not going well.
If everything is going great, marketing initiatives of an organization will have little to achieve. Focus on your strengths in your marketing campaign. Make people understand the value of your products and what makes these to stand out. If you go into hibernation seeking to emerge from oblivion when the situation is better, you would have lost precious market share to your competitors.
5. Make customer engagement a priority
Engage with consumers on social media, through e-mail marketing campaigns and other initiatives. Keep them in the know about new product launches and their significance during the recessionary times. Make the consumers feel that the organization values its customers and believes in offering quality to them even when all is not going right. Focus on your product as an apt solution to balance the cost requirements with quality.
Marketing initiatives and brand building efforts are meant to work by taking a long term approach. You can tweak your marketing initiatives during an economic downturn but abandoning the plans or putting them on hold is not an option. Businesses need to survive even the tough times while making an attempt to register a growth in market share. There are several instances of organizations having emerged stronger from the effects of an economic slowdown. It is their marketing and brand building initiatives in the face of adversity that win over the consumers. Products thrive on giving hope to consumers. Organizations need to believe in the same when it comes to managing their brands.
About the author: Alia Haley is a passionate writer who loves blogging on topics related to living room design ideas and latest innovations. She is in love with her iphone and enjoys shopping for designer clothes. Recently she is busy in writing an article on acer iconia review .