By Kylie Beaufoy
Rising interest rates. Higher petrol prices. Soaring grocery bills. Falling sales. They’re not a problem – they’re a business opportunity, according to a leading Australian marketing expert.
Hall Chadwick Marketing Communications Director Kylie Beaufoy says just as Gordon Ramsay demonstrates with his hit TV show Kitchen Nightmares, when times are tough, there’s only one way to go – up!
And she says there’s a simple process to follow – take a good look at your business … reconnect with your customers … provide the very best products, services and prices … and market as hard as you can!
“Too many businesses sense tough economic times ahead and meekly retreat into their shells,” Ms Beaufoy says. “They focus on the cost of everything and the value of nothing – so, they cut back on spending and make survival the sole priority.
“Customers and staff can almost smell the decay, the negativity, the lack of ideas, the lack of confidence, the bunker mentality.
“As a customer or client, how much do you want to work with a business which is clearly preoccupied with all manner of internal traumas and conflicts? Doesn’t make you feel confident, does it?”
In contrast, Ms Beaufoy says, the smart and successful entrepreneurs see an opportunity in every situation.
As economic conditions become more challenging, the leading business people are changing the shape of their company - and coming up with assertive and innovative marketing strategies.
They are asking themselves some fundamental questions:
• Are my business goals still relevant in the new economic circumstances? If not, change them.
• Am I providing the value-for-money customers want now they have less disposable income? If not, increase the value you’re offering.
• What lessons can I learn from the mistakes of others – especially the slump star companies which didn’t adapt to changing economic circumstances? Anyone who doesn’t learn from the past is destined to repeat the mistakes of history.
• How can I maintain an aggressive marketing strategy and budgets to steal a march on the competition?
Ms Beaufoy cites the example of Apple Computers as a company which refused to follow convention and actively thrived as the market was contracting in the early 2000s.
“The Washington Post spoke to a number of industry analysts at the time and found that home computers were increasingly being regarded as commodities and consumers had lost some of their enthusiasm for buying cutting-edge gadgets,” she says.
“Most technology companies tightened their belts, lowered their prices and downsized to adapt to a slower-growing market. But Apple took the bold move of releasing its first portable MP3 player and opening the first Apple stores.
“Later on, Apple launched the revolutionary iPod and iTunes, leading consumers to a brand new electronics and music distribution system.
“As a result, Apple’s market capitalisation soared to $162 billion, which is more than IBM and Intel. While it’s achieved less than 10% of the market for PCs, Apple currently is half as valuable as the software leviathan Microsoft.
“By taking the contrary point of view, Apple generated millions of new customers and helped boost its market share in personal computers in the United States from 2% to 8%.”
The Apple marketing communications program was hailed as a casebook example of a bold and imaginative campaign which transformed a potentially disastrous change in the market into a success story.
Most importantly, it had a hugely positive impact on Apple. Sales went up 24%, earnings up 75% and the stock price went up 146%. The company has enjoyed a great reputation for its innovative ideas and Apple is continuing to grow strongly in a demanding and competitive market.
“This is exactly the approach small businesses should be taking – creating opportunities with a forceful yet capable marketing strategy and budget”, says Ms Beaufoy.
“The message is clear,” Ms Beaufoy says. “Tough economic times create an opportunity for imaginative entrepreneurs – the smart ones are looking for innovative and integrated marketing strategies which generate higher sales by increasing the loyalty of existing customers and attracting new customers.
“While many businesses are seduced by the need to cut costs when the chips are down, the visionary entrepreneurs are asking: What new marketing strategies can I introduce to improve the customer experience?”
Kylie Beaufoy is the Director of Hall Chadwick Marketing
Communications, a full service marketing consultancy with a solid
reputation for delivering excellent, cost-effective results for high-
profile clients like SAI Global, Souls Private Equity, ANZ Private Bank
and BMax Property Fund.
Our award-winning team has the right experience, expertise and
resources to create - and implement - a winning strategy to transform
a client's marketing objective into successful reality.
Hall Chadwick Marketing Communications is a member of the Australia-
wide Hall Chadwick group of companies.
Contact Kylie at kbeaufoy@hallchadwick.com.au or on (02) 9263 2696.
