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Counter intuitive Ways to Survive a Tough Economy...Hard economic times provide excellent strategic opportunities for entrepreneurs who are willing to buck conventional wisdom.
http://adholes.com/postings/e3e52888...
2009 PERFECT STORM UPDATE--I hate being right about such dire predictions, Gwynnie. But I am. Things have not changed. Except for one thing. Everything I mentioned is getting worse. The earlier a retailer puts Christmas merchandise out, the more scared that retailer is of not making their numbers. Today’s consumers tend to wait until the retailer offers big enough discounts on certain lost-leader-goods. Then the consumer will usually buy only those goods and leave without buying anything else. The retailer looses because: bait & switch potential sales never materializes, there is little to no margin in the on-sale goods, then those goods run out of stock, then the retailer is right back in the same mess they were previously. By over doing on-sale frequency, retailers water down their store brand and the on-sale merchandise brand names by turning both into a commodities. Some retail layaway programs might help a low end retailer slightly, as long as the consumer is not already over extended on their credit cards (the biggest-money-grab-layaway-scheme, ever, “buy now, pay later”). Today’s weak advertising lifts nothing. What does it all mean?... The lies, greed, waste, short-term-thinking, and self-interest of the few went too far this time. So the many will suffer. Big-time! Take Buddy’s advice. It’s as good as any, and better than most.
HERE IS WHAT IT ALL MEANS, GWYNNIE...Dear, dere's a deer over dere. If you are unsure of a course of action, do not attempt it. Timidity is dangerous: Better to enter with boldness. Any mistakes you commit through audacity are easily corrected with more audacity.
Do not be the deer caught in the headlights.
THESE ARE TOUGH TIMES IN WHICH WE LIVE.
DO YOU WANT TO BE ROAD-KILL?
IT'S UP TO YOU, NO?
Ok Michael so it has been nearly a year since you posted this. What is the one-year-later update? Retailers have adjusted some of their Holiday Sales practices. As in: we were seeing x-mas merchandise in the stores at the beginning of October because they wanted to make merch available for new layaway programs. And how about the advertising campaigns? CP+B's Gap stuff, or the new PUMA ads i see on the subway... what does it all mean?
Well folks, so the earth stopped revolving. You gonna let that stop you?
I am thinking that I might want to pitch the Santa Claus account next year....if Santa doesn't go bankrupt.
I think that the way to get out of this crisis is for everyone to give a dollar to the person closest to them at the exact time they hear the word "crisis"
U.S. retail sales dropped by 0.4 percent in April 2009 again confirming how tight-fisted Americans have become. Across the Pacific Ocean, Chinese consumers are buying like crazy as retail sales surged by 14.3 percent in March and up by 15 percent in the first quarter of 2009.
---CONTINUED FROM BELOW---The bank is saved by the government following dramatic round-the-clock consultations by leaders from the governing political parties.
The funds required for this purpose are obtained by a tax levied against the non-drinkers
THE FINANCIAL CRISIS EXPLAINED IN SIMPLE TERMS ADHOLES CAN UNDERSTAND. . . . Heidi is the proprietor of a bar in Berlin. In order to increase sales, she decides to allow her loyal customers - most of whom are unemployed alcoholics -to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans). Word gets around and as a result increasing numbers of customers flood into Heidi's bar.
Taking advantage of her customers' freedom from immediate payment constraints, Heidi increases her prices for wine and beer, the most-consumed beverages. Her sales volume increases massively.
A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and increases Heidi's borrowing limit. He sees no reason for undue concern since he has the debts of the alcoholics as collateral.
At the bank's corporate headquarters, expert bankers transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities are then traded on markets worldwide. No one really understands what these abbreviations mean and how the securities are guaranteed. Nevertheless, as their prices continuously climb, the securities become top-selling items.
One day, although the prices are still climbing, a risk manager of the bank --subsequently, of course, fired due his negativity -- decides that the time has come to demand payment of the debts incurred by
the drinkers at Heidi's bar. However they cannot pay back the debts. Heidi cannot fulfill her loan obligations and claims bankruptcy.
DRINKBOND and ALKBOND drop in price by 95%. PUKEBOND performs better, stabilizing in price after dropping by 80%.
The suppliers of Heidi's bar, having granted her generous payment due dates and having invested in the securities are faced with a new situation. Her wine supplier claims bankruptcy, her beer supplier is taken over by a competitor.
The bank is saved by the gove
In his speech this morning, President Obama finally listened to the advice from one of his best advisers- Michael Iva, and used Iva's PERFECT STORM analogy as the best way of describing the poor economic situation the country currently finds itself in.
"This year was a long, cold winter. Winter always seems long to me-too long, sometimes. But winter is necessary. In the economy of the climate, winter kills and then makes way for something new. During winter creation loses its sparkle. A once luscious, green forest becomes dismal gray. Most flowers die while others crawl back under the soil to hide from the wintry elements. Color, for a season, vanishes, and it seems, so does all of life. To add to the drab surroundings, the song of nature is stilled as birds take their song to a warmer environment. Is it any wonder that a greater percentage of people suffer from depression during winter?
The recession, job losses, depression, home foreclosure, rejection, death of a loved one, abuse, sickness, marriage problems, divorce, addictions, loneliness, failures-these and more are the gray circumstances of a personal winter. During winter "something dies" so to speak. I don't like winter. However, it's necessary. Winter always precedes spring and every living thing must pass through a winter to enter spring. This is a principle of life that applies to everyone and everything." -Bill Baldwin
Patriotic retirement...... There are about 40 million people over 50 in America's work force. Give them $1 million apiece severance pay with the following stipulations: 1) They leave their jobs. This would create forty million job openings ! .......... unemployment fixed. 2) They buy NEW American cars. Forty million cars ordered ! ............auto industry fixed.
3) They either buy a house or pay off their mortgage. Housing Crisis fixed. and this might cost less than the bailouts.........MAKE SENSE?
Here's another way to look at it, we're not in a recession - it's pre-boom!
I apologize if this has already been said. I haven't had time to read all the way through the comments...
I think we're going to see more of a shift to online retail stores. Sites like
www.etsy.com are really starting to take off. I have a side company that allows me to buy wholesale and the local mart I go to when I need to purchase is really seeing a lose in vendors taking up their booths. They are all going online. Which makes sense. Really not much overhead and the small amount that there will be is most likely tax deductible because they are probably working out of their homes. I know I'm getting a lot more emails from stores that I have subscribed to with great specials and percentages off, not to mention free shipping! I hope that a lot of my favorite stores can survive this way until the retail world is safe again. And I will keep visiting them and my favorite restaurants to do my part is making sure they survive.
This is my suggested cure and/or antidote to the economic crisis and turmoil we now face. If everyone were to truly understand this principle, then implement it in their lives, circumstances would turn around, change, work, and never fall victim to the same mistakes. THE SECRET OF PRODUCTIVITY IS THE ELIMINATION OF WASTE. Think about this principle long and hard until you see the simplicity and elegance of it's solution. Define what productivity means and what waste truly is. Then you will know what to do. Doing is must. To keep on doing it is everything.
Yes we all know fear, and a total lack of finances is bringing EVERY business down. Our favorite shops, services and restaurants will soon be a memory. I can't help but turn back to 9/11 again for an example. Guilliani urging us to go spend, see shows, go out to eat below 14th Street. Seems a little trite, but in hindsight, my eating out in Tribeca with a toxic dust cloud hanging in the air, was a real American thing to do. Unfortunately, I don't think anyone has the means or the inclination to do that today. This time our disaster calls for re-invention. Every business must rethink and address the current situation and not use the same old practices to survive. Is it a new type of consignment store experience? Can Saks have it's very own consignment/refurbished section.
Do we make sharing a meal with strangers a trend in a restaurant therefore bringing down the cost and opening up new relationships. If we're all in this together, perhaps the solutions lies within all of us and our fresh thinking marketeers!
http://carrotmob.org/ Carrotmob is a method of activism that leverages consumer power to make the most socially-responsible business practices also the most profitable choices. Businesses compete with one another to see who can do the most good, and then a big mob of consumers buys products in order to reward whichever business made the strongest commitment to improve the world. It’s the opposite of a boycott.
Carro... Makes It Rain from
ca... on Vimeo .
If agencies take advantage of instituting strong, new business developments efforts that differentiate themselves they will have a leg up when the climate changes. Just as marketers need to re-frame, so do agencies. This way their messaging(points of differentiation) will speak to the needs of the "new" climate = value added products and services. Kind of like meeting up at the middle.
Monday, February 23, 2009. 05:38PM
by
pat tobin
here, here Terrence
so when do our clients realize that they need to differentiate themselves and dial our numbers
Richie, the young and fancy free are just getting hit with it all
as a parent i kept my kid going full force while i did without but reality is catching up with us and she is having to cut corners too
I'm hoping this economic climate will make us all "the wiser". The habits of the past were seeded in a misconception that if you are spending money you are netting a return, even if you didn't have the money to spend. This misconception has been carried by businesses as well as consumers.
I believe as consumers we have more clarity now concerning how we should spend and invest our money. I see some huge challenges with businesses having to eat some humble pie to admit they need help that is measurable. Especially when 2010 hits and consumers stop spending money so carelessly.
Time for some value added efforts vs the 20% off coupon I would say.
I agree with Mr. Ryan Drumwright's comment. The people my age do not really care about the crisis and is not affected greatly. I still shop extensively on clothes online and in stores.. The only thing that worried us is getting a job..
But oh well, they say in hard times there's a lot of opportunities, so I think everyone just have to stay positive and innovate.
Per the suggestion of fellow Adhole Mandy Boyle, I added an introduction to my prediction which sheds additional light on the subject matter. Thanks Mandy.
Thursday, January 29, 2009. 12:28PM
by
pat tobin
We know there is less money to be spent. Our clients have to understand that strong positioning and marketing strategies are tools for survival in this current "situation." They need researchers like me to help them find a sense of direction--to understand their product and their potential consumers in the present tense.
The same old shit is not going to work anymore. The survivors will be the ones that invest in research and marketing now.
Things may actually get a bit worse for the average consumer. They have been juggling a great deal of debt and that game is still catching up with them.
Steve Jobs famously said during the dot come meltdown that Apple was going to innovate its way out of that crisis. Everyone in advertising today has to sell their way out of this crisis. First we have to sell our services to clients, then we have to efficiently sell the clients goods and services to their customers.
Very interesting Michael! Unfortunately, I am afraid it is very true as well. I did some quick research on the topic. Here are some findings and thoughts:
Here is a great resource:
http://www.deloitte.com/dtt/article/... POSITIVE NOTE: 16-24 year olds are retailers’ glimmer of hope. They are less sensitive to "The Slump" and are more positive about the 2009's economic future. Research shows: More than 3 out of 10 16-24 year olds compared with less than 2 out of 10 over 25 year olds plan to spend more this Christmas than last year. For nearly half of 16-24 year olds it is more important to have a good time at Christmas and worry about the cost later compared with 22% of the over 25 year olds. It appears young people are not seeing the reality of the crisis, and are continuing to consume as they did before the crisis. Consumers appreciate the value of the dollar (or lack thereof) more since the economy has slumped. This is causing people to shop around more both online and at brick and mortar stores. They are looking for the "best" deals.
I am interested in how an increase in online purchasing impacts impulse buying. What are retailers doing to increase impulse purchases online? Will we see more promotions like "spend $100 and get FREE shipping" offers? What else?
That is it for now. More later.
Have a great day!
Ryan
Sunday, January 11, 2009. 05:11AM
by
Sonya B
That article is absolutely correct for two reasons: 1. It feels unseemly to be too flashy right now among so many suffering, and 2. It's all about price when there is no customer service or something unique, so online shopping is the way to go. Oh, and a third reason, businesses need to understand their brands and maintain their integrity during tough times. Brand integrity and a lack of understanding are missing in a shocking amount of businesses.
