Have you seen the recent headlines? The neg-ative economy metrics seem to be outdoing themselves Inflation rate is steadily rising, companies are downsizing, unemployment rate is on the rise and crude oil is averaging $30.The nightmare is all occurring at the same time.
With a drop in disposable income and the uncertainty that comes with a slowing economy, most purchases become an economic decision as opposed to a utility decision. Consumers will strive for goods and services that lay emphasis on value for money. The current envi-ronment is not accommodative of price increase as con-sumers are ready to make a switch. Brand and consumer loyalty continues to shift in favour of cheaper products.
But there is a silver lining in all of this.
How does an SME plan to leverage on the changing con-sumer behavior?
How does it plan to position itself as a competition of substitute value brand?
How is it planning to capitalize on the general weakness in the macro economy which is affecting consumer dis-cretionary spending?
Luxury and high end products are usually the first to get hit as consumers are changing spending pattern. The under dogs can seize the opportunity to push their brand by offering value for money. Catering to the needs of the market by meeting the key needs of the consumers and cutting out excesses.
In the midst of a slowing global economy and with most companies releasing a profit warning, McDonald’s sales soared thanks to all day breakfast which it rolled out in October.
Many McDonald’s fans had been calling on the company for years to make Egg McMuffins, hash browns and other early morning treats available at lunch or dinner time.
It finally responded to demand and the menu change clearly paid off for it.
What are your customers saying? What do they want?
There isn’t a better time than now to make those changes that your customers want.
This is the time to review prices as well. Are you passing dead weight to customers? Are you inefficient with your processes?
Why not restructure to cut costs, this decline in costs can then be passed on to customers.
Not only will this set your company apart in this drought
Exciting times are here, a time to be innovative, to be dynamic, to solve the prob-lem at hand with lean cost.
This should drive traffic that companies set in their ways will miss out on.
season, it will give you an edge in the days of plenty (when the market rebounds)
Exciting times are here, a time to be innovative, to be dy-namic, to solve the problem at hand with lean cost. This should drive traffic that companies set in their ways will miss out on.
Reinvent to stay in the game.