What we are doing...

There has been a significant increase in our public outreach work this year. The persistent and critical water shortage in at least 36 states, the need for vigilant water conservation, the increasing need for and use of recycled water all require a strategic, focused outreach to the public. Education, information and behavioral modifications are mandatory for states and cities to achieve their goals in this most important endeavor.

Because of the above, we have also seen an increase in research, website redesign and social media interest.

We have inaugurated a hybrid billing scheme which allows certain companies the opportunity to work with only one department of the agency. Be it creative, media, research or public relations, a company can consult and work with an individual discipline avoiding the additional cost of account service, trafficking and the other cost centers associated with full-service agency contracts. We are interested to see how this works out.

We continue our search for an agency in Central California to partner with, take a stake in or purchase.

 

Monday, December, 2009

“How the recession has changed US Consumer behavior”

A recent report from the Retail Practice team of McKinsey has pointed out interesting changes in consumer behavior that could, perhaps should inform your advertising specifically, and marketing generally.

Their research discovered an average 18 percent of consumers bought lower-priced brands in the last two years. Of those, fully 46 percent reported those lower-priced products performed better than expected, and most reported the performance as much
better than expected. Additionally, and significantly, 34 percent of the switchers said they no longer preferred the premium brand. Depending on the category of product, the number of switchers in the category and their experience with the lower-priced product, many consumers previously “lost” to other brands are now susceptible to new messaging.

McKinsey goes on to point out that while consumers might be expected to return to their favored premium brand once the recession is over, the changes in their perception of lower-priced brands has fundamentally changed their perception of value.

Clearly this research has implications for marketers of both the higher and lower priced products. Armed with a better understanding of purchasing behavior and motivations, marketers of both lower and higher-priced brands can maximize the impact of their ad dollars and even make substatial gains in marketshare or at least share of voice.

Brand repositioning and messaging to influence the price/benefit and margin/volume factors will be vital to optimizing marketing performance now and after the recession.

As McKinsey clearly states, “Understanding this challenging shift in consumer behavior is necessary for companies to compete successfully. It represents an opportunity for those that respond quickly and effectively to differentiate themselves from their peers.”

Believe it or not, you can survive, even thrive during this disorienting economic event.

Branding: Done right, customers buy more of your "things", more often, over a longer period of time, at a higher price.

"I'm not young enough to know everything."

A continuation of our most popular mailing, "Made You Look", is at the printer.

The new mailing, "How DoYou Create a Brand Promise", will be (we hope) as well received as the first.

Call Margot Stewart and she'll make sure you get your copy!

Get the pdf version here.