A recession isn’t the time to sit around and wait to make decisions. Decisions made now will crush or build your empire. Every business, brand, or company will sit down during a recession and decide how to make and save the most money. In a tumultuous time like such, it is not time to be frugal and conservative. If you want to take your company to the next level, surpass your competitors, and build steady growth, you need to make the right decisions – data-driven decisions.
Inflation After Effects
We continue to feel the effects of inflation. Although things are improving, groceries are still expensive at 10.3% inflation compared to February of 2022. Consumers are responding to these effects.
What to do While Consumers are Struggling
Companies in the consumer-packaged goods space have the opportunity to set themselves up for the future. Those who plan on leading the pack in the future will invest now, build for the future, and adapt to the current state of the economy. The path to success lies in evolving, not hiding. The world is changing constantly and being stagnant during a low point can set you back miles. Gen Z is entering the consumer market and ignoring their needs/wants could be the downfall of some companies and the meteoric rise of others.
Adapting to meet consumer needs
The consumers’ needs are changing. Gen Z is entering adulthood, more and more millennials are becoming parents, and baby boomers are retiring by the clip. New trends in consumer needs are growing. People want companies they shop with to have certain qualities including sustainability, inclusivity, and convenience.
Green consumerism is a growing term and consumers are actively seeking environmentally sustainable companies to buy from. The country is diverse, and people want to see themselves in the marketing for the products they might buy. Finally, convenience may be the most important factor of all, and one that all the generations agree on. Consumers want ease of access, functional online availability, and increased speed of delivery.
Investing to Meet Consumer Needs
Investing in brand growth during a recession is how companies will survive and thrive. Building e-commerce is a necessity. Everything product has an alternative you can buy online now. People are making product choice decisions based on whether they have to leave their homes to acquire the product. Companies that do not invest and grow in the e-commerce area will be handing these consumers to their competitors.
Only 1 in 4 consumer packaged goods companies will grow during the recession. They will do that by growing their margins and expanding their portfolio to meet consumer needs by moving into adjacent categories, segments, and geographies. Understanding how consumers will respond to price, size, package, and ingredient changes is the key to knowing if your brand will fail, maintain, or grow during a challenging period.
Data is your best friend right now. Understanding that consumers needs/wants change during a recession is crucial to surviving, but knowing how to position a brand for the future is how a company will thrive. Marketing Analysts can help you understand consumer reactions to a range of strategies you will be considering during this period. Reach out to find out more about us and how we can be your partner in growing your brand. Set up a consultation with Robert Clark, managing partner of the firm, to see how Marketing Analysts can help you!