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recession trends Posts
Another post recession trend; Monday to Friday lodgers.
December 20th, 2009
It started when a friend told me down the pub about a great way to earn some extra income without a big hassle. She had taken on a lodger.
So, what’s so different about that, you may ask?
This is a ‘Monday to Friday’ lodger, who only stays with you during the working week. So the weekends revert back to normal.
My interest was tweaked.
Monday to Friday (www.mondaytofriday.com) have been going for a while, but have come into their own during this recession. And it makes sense all round.
Many professionals work in London from other parts of the UK and beyond but can’t afford (or don’t want) to rent a flat for the full month. Plus there are many employees who have to pay for expensive hotels each week for consultants to work in the capital.
Monday to Friday theoretically makes sense.
So I took the plunge.
We now have a Monday to Friday lodger who’s from Dublin but has to be in London each week. She spends 3 nights a week with us – her company are ‘over the moon’ because we are much cheaper than a hotel and our lodger has her own room and bathroom and tells us it’s ‘home from home’.
Monday to Friday are on a growth surge and so they should. Like ZipCar, it’s a simple idea that makes sense.
Another successful post recession trend.
So, Sorrell thinks its going to be a LUV shaped recession
November 12th, 2009
Sir Martin Sorrell, CEO of WPP (the biggest advertising group in the world) is a big cheese. My mate Si writes his speeches and my Missus used to work for him. So when he speaks, people tend to listen. (www.wpp.com)
And he did. This week.
According to the Times (www.timesonline.co.uk) Sir Martin offered a new expression to describe prospects for the world’s economy – he predicted an ‘LUV’ shaped recovery.
Once describing a previous downturn as bath-shaped, Sir Martin has now predicted a 3 speed discovery in 2010.
He said the recovery would be L-shaped for Western Europe, U-shaped for The US and V-shaped for Brasil, China, Russia and India and the so-called ‘Next 11’ nations which include Turkey, Indonesia and Vietnam.
Sir Martin said that things were now ‘less worse from July to September than from April to June’, but added ‘you would expect that to be the case, given the massive fiscal and monetary stimuli pumped into the world’s economy. If it hadn’t worked, we’d all be in real trouble’.
The big test is what happens when governments start to withdraw their fiscal packages.
The ship is turning but it hasn’t turned yet.
So we’re all going to be ‘LUV’d up …
Gosh! Strawberry bonbons! It’s like the tuck shop all over again…
November 5th, 2009
Childhood.
My prep school was a Harry Potter-type place – it was great fun. It was a boarding school in the depths of Yorkshire where I was sent for months on end.
At the age of 8, my parents took me up to London to Kings Cross station at the beginning of each term to catch the school train. Grey shorts, shirt and tie with flannel jacket, with a cap on my head – trunk and tuck box in tow.
We caused havoc all the way to Yorkshire on our ‘Hogwarts Express’, throwing fireworks out of the window as we passed each station.
And my parents thought they were giving us the best education possible…. I loved it!
On a Sunday afternoon we were allowed down to the tuck shop where big jars of sweets were stacked along shelves. Sherbet dib dabs, strawberry bonbons, chocolate mice, sheets of toffee and home made fudge, each weighed out and put into little paper bags as we spent our precious pocket money. This was Billy Bunter stuff.
And it’s back! It seems that the recession has prompted a fit of nostalgia in old fashioned tuck-shop treats.
The downturn has fuelled a demand in comfort foods (Tesco report a 200% rise in demand for sirloin steak). M+S has reported a 350% surge in demand for sugary confectionary – wine gums, fizzy cola bottles and rhubarb creams are now all the rage.
The demise of Woolworths ‘pick and mix’ in the UK plus the recession has led to a 9% growth in the sector, set to be worth £2bn in 2010.
So get down to M+S or House of Fraser for your tuck!
But don’t buy liquorice. Liquorice was for losers.
Half of Brits feel no worse off one year into the recession. And London leads the way.
September 16th, 2009
Almost half of British consumers think they are financially no worse off than this time last year, according to a recent study.
45% of the 5000 consumers surveyed say that their financial situation is the same or better than it was 12 months ago. Despite the national and international gloom and despondency, a surprising 15% actually believed they were better off.
London leads the way too – despite a cull of jobs across the City (the financial district), London tops the league table with almost a fifth (19%) claiming they are a lot or a little better off than this time last year.
Men are generally doing better than women, and younger groups faring the best – only 1% of 55-64 year olds said they were feeling better off during the recession.
The research, from TNS, also sees a significant proportion of the population who see the recession as an opportunity rather than simply as a threat, with many resolutely determined to fight the challenge head on. These people are likely to see the current climate as an opportunity to profit from the situation – buy property at knock-down prices, take advantage of low interest rates to borrow more or look for great for the best discounts to find the best bargains out there.
There is a significant group out there who are in employment, who have seen their mortgage repayments drop due to lower interest rates, who are bombarded with the latest discounts and special offers from retailers and restaurants; even some major car brands are offering unbelievable deals.
Everywhere you look there’s a special deal to be had. If there isn’t – just ask! (I tried this last week, asking if I could have any more discount if I paid cash. There result was a 25% discount!).
From the ‘Credit Crunch Lunch’ to the ‘2 for 1’ specials on offer in almost every category. Such as Orange, my mobile phone provider, who offer me a ‘2 for 1′ at my local cinema AND a ‘2 for 1′ at the adjacent pizza restaurant each Wednesday night. It’s now even called ‘Orange Wednesday’.
I even subscribed to vouchercodes.co.uk and now get a weekly email telling me where the best deals are to be found.
Will we be able to stop doing this after the recession? My guess is that we will expect more of the same.
Consumer recession strategies – will these become post recession trends?
September 11th, 2009
TNS, the research giant now owned by WPP, has come out with a study that makes very interesting reading. The study indentifies six core recession strategies used by consumers. Will these become post-recession trends after the current downturn?
Firstly, not everyone is suffering in this recession. There is no universal response.
Secondly, consumers are driven by far more than rational needs.
We’ve all become used to so many brands offering us generic recession response: everyone is suffering so it makes sense to focus on price and product and offer us all a better deal. But is it working and is it good for the brand?
TNS have come up with six core strategies used by consumers:
1. Fight and Exploit – you’re looking for something extremely cheap that allows you to exploit the recession rather than fall victim to it. If you can beat the odds by taking advantage of a ‘50% off’ you feel you have got one over on the situation.
2. Compete and Win – you’re looking for enduring value. You are looking for quality of course, so it’s not about the deals but something that’s going to last over time.
3. Strategise and Plan – you want to make a smart choice and so take a long term focus; the initial cost may be lower but the longer-term value is higher.
4. Retreat and Defend – you have to see it as saving money; you like to feel the company is sacrificing something so even small discounts are OK; and you want your loyalty rewarded with discounts.
5. Collaborate and Accept – you’re not going to buy it just because it’s cheap; you’re happy to get a discount on something that really demonstrates its practical value.
6. Avoid and Indulge – you’re looking for something for nothing; it might be the chance to win something or just a fun experience; as long a s it gives you the opportunity to indulge.
The research found that individual consumers can embrace different strategies, embracing several responses across different categories. It’s possible to Strategise and Plan when it’s time to replace a car, perhaps being wary of ‘deals’. The same person might want to Avoid and Indulge when buying a mobile phone, opting for a price plan that allows then to call their ‘mates’ as often as they like, Yet with weekly food shopping the Collaborate and Accept strategy might emerge, with a tendency to make small cutbacks across the range.
Consumers adopting a Fight and Exploit approach will respond well to a ‘Rebel Brand’ enabling them to make the most out of a recession. Virgin has had a good recession because it’s a Rebel Brand, appealing to those who are prepared to take advantage of good deals.
Strong brands understand the language of archetypes. Finding and working with the right archetypes lets you connect emotionally with your customers and provides a powerful platform for brand building.
A recession beater – steamy honeymoon deal – budget style
September 7th, 2009
It’s far from the most romantic start to married life but is probably a lot cheaper than staying at home.
This is the recession ‘for real’….
A chain of UK budget hotels normally filled with junior sales reps is offering a two-night honeymoon package including dinner (at a Beefeater or Harvester restaurant) and an “all you can eat” breakfast for £58 ($95/€65).
The deal for newly married couples also promises rose petals on the bed, a bottle of sparkling wine, strawberries and luxury chocolates – all from Asda (owned by Wal-Mart) – a Boots hamper of spa treatments and what it describes as “glamorous nightwear” but is in fact a set of pyjamas and a nightdress from Primark, the UK’s leading discount retailer. Anne Summers / Victoria’s Secret it is not.
The offer is available at 10 UK Premier Inn hotels until the end of September for couples who have got married or registered a civil partnership since the end of July. The locations include some of Britain’s less obviously romantic spots, including Belfast in Northern Ireland, the old County Hall near Waterloo station in one of the grungier areas of London, Hull and Llanelli in Wales.
Initially only two of the packages are available at each of the locations on a first come, first served basis but Premier Inn says it will roll out the offer if it proves popular.
So, is this a new trend, driven by the recession?
I think not – more a case of an inventive Marketing Manager spinning an idea out of the recession.
In fact, Premier Inn marketing director goes on to add:
‘Didn’t someone once compare Hull to New York? It’s quite close to the coast and there’s lots to do in that part of the country.’
Hull. Similar to New York??? Talk about spin…
What brands need to do: Fighting the Recession
August 29th, 2009
The principles of marketing in a recession are very different to those that work in better times.
And they aren’t all about discounting.
In recessions, consumers are confused, unhappy and very worried.
Brands that recognise this can prosper:
1. Offer certainty.
In uncertain times, consumers cling to certainty. Most brands struggle to project this as they tend to take their eye off their customer in tough times and focus on internal procedures like cost cutting. Brands that are a bit blurred around the edges then get blanked by consumers searching for confidence as they shop.
Review your brand proposition to ensure it promises the certainty that confused and desperate consumers crave.
2. Offer VALUE, not low prices.
But a cut price business doesn’t save anyone from recessions. Every second rate brand heads for this space at exactly the same time.
And in food, consumers don’t automatically switch to discount food brands in a recession – they move to supermarket private label. Only this week the CEO of ALDI UK was fired as they had failed to gain substantial market share during the recession. Whereas Waitrose, the bastion of middle class food shopping (and one of the most expensive) saw a 15% increase it it’s new ‘Essentials’ own label offer.
Don’t discount what made your brand great.
3. Don’t rely on habit
Habits get broken in recession. The consumers who bought your product last week may not necessarily buy it this week. They have woken up.
Ensure your brand is being bought for reasons other than habit.
4. Don’t be pointless.
In recessions, people don’t trade down. They just cut the pointless stuff out of their lives.
They cancel gym memberships they haven’t used since last Christmas. They cut out the ridiculously expensive bottle of wine. Or the pampering weekend break they thought they might take.
Make sure your brand is not a pointless purchase.
5. Beware of the Internet
As prices fall, consumers search out bargains. Watch out.
With price comparison sites, Goggle and eBay, consumers now have better bargain-hunting tools than ever before.
Watch your back.
6. Beware of ‘word of mouth’
In recessions, media budgets shrink and the chatter of brand’s users becomes even more important.
Bad word of mouth can kill a new film, music or software release within weeks. Bad reviews on Amazon, Expedia and other e-tail sites can do untold damage.
Make sure you monitor what’s going on.
7. Think in terms of price layers
People don’t automatically buy the cheapest thing in a recession. They are just more conscious of the value and price.
Alfred Sloan built General Motors during the Great Depression by segmenting the car market into six distinct price sectors and launching brands to match.
His ‘car for every pocket’ strategy allowed GM to seize leadership of the US car market during the 1930’s.
8. Promise better service
You get much nicer rooms in hotels in a recession. And better tables at restaurants. And more space on airlines.
Services can therefore promise customers better benefits in recessions.
If you run a restaurant, service is better because the staff have fewer customers to serve and more time to serve them. Staff are nicer to customers in a recession because they don’t want to lose their jobs.
Recessions are therefore the IDEAL time to ask people to try your service for the first time.
9. Do Flash Sales
If you are a retailer, do Flash Sales – sales lasting for 24 hours or less. They are much less expensive than a traditional sale because it only lasts 24 hours.
Or how about just setting up store for 24 hours? Flash Retailing has taken off in London in response to the recession, with Gucci, Mango, Apple and others taking the plunge.
Flash sales and retailing create a big buzz for your brand and the buzz lasts a lot longer than the 24 hours. Brands have found them highly effective in attracting consumer attention.
10. Look for opportunities
Google moved from being an unknown start up to being one of the world’s biggest companies during the tech-bust of 2000-2004.
Don’t assume that just because your brand is cutting innovation in a recession that your customers are. Watch out for big moves by strong competitors.
It isn’t recession that kills companies. Bankruptcies peak in the recovery period, when companies weakened by sales declines lose their compass.
Be ready to exploit the endgame.
11. Innovate and cut costs at the same time
It can be done.
Ryanair, the low cost Irish airline used sick bags on flights which doubled up as photo-processing envelopes.
Or Virgin Atlantic who used their sick bags to promote their virginpoker.com online betting site, with the memorable strapline ‘we don’t want you to chuck in your hands’…
In a recession you need to upgrade your communications to make up for a lower budget.
12. Recessions can be GOOD FOR YOU
Finally, marketers need to recognise that recessions can be an opportunity as well as a challenge.
Recessions clear the stage, and let new ideas be seen.
All you need are the ideas.
Innovation of the year! Is this a post recession trend?
August 24th, 2009
It all started when I was handed a flyer when rushing for the Tube (subway, metro) near to where I live in West London. Some guys were strategically standing in my path (the same way as ‘chuggers’ do) giving out flyers. My first reaction was, as always, to avoid them and (in a very London way) to keep my eyes down, avoid any eye contact whatsover and get to the Tube by the shortest possible route.
I could’t avoid the flyer though and just pushed it in my pocket. I short while later, when looking for something else, I found the (offending) flyer. Zipcar.
Hmmm.
Later that evening I rushed past the same guys still handing out flyers, again doing my best at avoiding them and making eye contact. On my walk home I passed a smart VW Golf with a small sign next to it which said simply ‘ZipCars live here’.
My interest was tweaked, so I got online to find out more.
Well, the net result is that I no longer have my gleaming Beamer but have chosen to use ZipCar instead. It’s brilliant. And I am sure that this recession will lead to a lot more people doing the same as me. I save a fortune AND I become a carbon footprint saint….
Just think – you find a car very near to where you live using the Zipcar website, access the car using a credit card type devise, find the key, use it by the hour, day or longer and just return it to where you left it. No insurance, no lease, no congestion charge to pay, no tax disc or residents permit. No searching for a parking space late at night. AND just think of the environment!
So when I realised how much I was paying for NOT using my car, ZipCar made complete sense.
I think it’s a great innovation that can only be a winner – in fact everyone seems to win. Obviously it’s of no use to someone living out in the country or miles from anywhere, but for city dweller it’s perfect.
I see this as a very real post recession trend. I wonder if it’s taking off elsewhere. It deserves to.