Much has been written about the causes, nature and likely effects of the current downturn; and every day seems to forecast tougher conditions and tales of business decline.

But it’s not all doom and gloom!

We’ve pulled together this ”Survivor’s Guide”: a concise checklist of things to do and think about in order to optimise the chances of brand and business survival.

In this 3-part blog post we will examine:

1. IMPACT OF DOWNTURN – on Markets – on Business

2. SURVIVAL PROGRAMS: ASSESSMENT – Impact on category – Impact on business model – Impact on brand

3. SURVIVAL PROGRAMS: INVESTMENT- Insight – Marketing support – Innovation

So firstly; how to assess the impact of the downturn.

At a basic level, most consumers now have less disposable cash and / or feel insecure about employment stability. This leads to:

• Trading down to lower priced products/services
• Focus on promotions
• Delayed timing or non purchase of non essential items

But remember that the impact of economic downturn is not evenly spread amongst the population. You will need to bear in mind not only the usual myriad of different demographics, segments, occasions and needstates, but also whether your consumers are:  

• Starting from a base position of relative affluence or poverty
• Employed or unemployed – and how secure their jobs may be
• Borrowers or lenders (e.g. interest rates may actually lead to greater disposable income for those on tracker or variable rate mortgages)

Having started to assess the impact on consumers, you’re probably already conscious of any impact on your business: 

• A NEGATIVE IMPACT ON CASH FLOW as consumers cut back expenditure or drop out of the market
• A NEGATIVE IMPACT ON MARGIN as consumers trade down / seek better value

We’ll be exploring more later about how to survive – with some key pointers on accurately assessing the impact on your category, business model and brand…