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Recession Proofing Your Market Share

November 10, 2008

Posted by: Keith Betz in Consumer

Let’s face it…the economy stinks. Consumers are suddenly plagued with decisions such as choosing between their favorite brands and less expensive alternatives, illustrated by the Consumer Confidence Index hitting an all-time low in October. Businesses have tough choices to make too as they see profits slipping and costs rising. A new sense of urgency has taken over, forcing some advertisers to hit the panic button. This means cutting budgets in hopes of riding out the storm and coming through unscathed, or at least less beat up than the competition. But as history shows us, this financial climate that we’re in can actually offers advertisers more opportunity than meets the eye.

I remember learning about Kellogg’s and Post cereal companies back in college. Before 1929, Post was so dominant in the breakfast cereal category that when the Great Depression hit and sales slumped, they cut their advertising budgets figuring their market share was on solid ground. Kellogg’s took the exact opposite approach by doubling their ad spending and rolling out a new, highly positive campaign focusing on a tiger named “Tony”. Americans embraced the new campaign and Kellogg’s never looked back, except to see Post in their rear-view mirror, as Kellogg’s remains #1 in their category to this day.

But it’s not just about advertising more, it’s about smart strategy. Your message can be repositioned to address new buying behaviors and concerns, depicting you as the stable and strong brand while the competition lays low. Keeping your message out there also allows you to stay in contact with the consumer at a time that they might be reevaluating their buying decisions and brand loyalty is open for negotiation. Media vendors are also scrambling to keep their revenue flowing and there are deals to be had out there, especially with traditional tactics. That is where we can help you take advantage of the opportunities that a recession like this offers. Through smart media strategy and execution, we can help you emerge from this economic downturn even stronger than before