An Economic Downturn Could Mean an Upturn in Opportunity

You would think that for companies navigating through tough economic times, this would be a time to hunker down and "wait and see". Not so fast. In fact, history has proven that those businesses that continue to invest in advertising and remain visible during a downturn, perform better when normalcy returns, short as well as long term. 

Here is a story of two companies surviving during The Great Depression. 

Kellogg dared to introduce Rice Krispies, a cutting-edge cereal whose new technology allowed it to stay afloat in milk and even “crackle”. Their competitor, Post, chose the more common, conservative approach and reduced advertising and promotion, waiting for the storm to subside. What happened? Kellogg’s profits rose by more than thirty percent. They became an industry leader, a position they held for decades. 

While at first glance cutting back may appear the obvious course, downturns have been known to present opportunity. The field is no longer level, but takes a dip allowing new products and ideas to stand out. Something new and inventive is given the opportunity to rise and shine.

History repeated itself as Kraft introduced Miracle Whip in 1934 which became one of the top selling salad dressings, Texas Instruments pioneered its transistor radio in 1954, and we all know what happened when Apple launched the iPod in 2001. All were introduced during a down economy. 

According to Google, over 85% of the U.S. consumers say it is perfectly okay for companies and brands to be communicating at this time (citing practical information such as hours, change in services, etc. as crucial).

The moral of the story is don’t sit back on your laurels: Put an experienced expert in your corner who has who has skilled insight into what is best. Continue to work, think for innovation and stay productive in anticipation of a time when the effort will not only pay off, but will allow you to flourish while the others are busy playing catch-up. 

At Yuthas Marketing, we pride ourselves on responsiveness. We understand the need for immediacy and are ready and committed to help businesses thrive.

Marketing agility reigns as king well into 2023 with speed to audience calling the big winner. Make sure that you’re prepared.