Fly on the E-Commerce Cyberwall

Adapting to a Tough Economy
Reading the paper lately, I've been struck by all the articles that focus on bad economic news.

Company X lays off 500 workers. Company Y announces that it's going out of business.

Yesterday, though, several positive business stories struck me. They show that all is not lost when the economy turns sour.

And they give a valuable lesson about what to do in a difficult economy.

A small, medical device manufacturer struggling to stay alive in Minnesota has turned all their attention into a single medical device designed to help users curb their appetites and lose weight. In the face of R&D money drying up for other, life-saving devices, they're finding a continuing market for something for which people continue to seek a solution even in difficult economic times: weight loss.

Pillsbury, after years of struggling to boost its sales, suddenly finds surprising growth. As people cut back on the money they spend going out for meals, those people turn more and more to frozen foods and ready-to-bake items provided by Pillsbury.

Another article highlighted how sales of modestly priced wines are soaring, again in response to the economic downturn. As people cut back on the money they spend for fine dining, they reward themselves with elements of a fine dining experience or a night out at home.

What lesson does this give to us about navigating your business through difficult times?

For one thing, look for ways to refocus your business on needs that people have no matter the economic outlook. By refocusing on weight loss, the medical device company tapped into a market that people never cut back on.

For another thing, look for ways to reposition your business to supply items that are a less expensive alternative for the things people previously had done to reward themselves. The desire to feel good about oneself does not go away when the money is tight. Both Pillsbury and many wine makers find themselves benefiting from the economic downturn as consumers turn to them as cheaper alternatives.

Ultimately, be creative. Instead of hunkering down and trying merely to survive economic tightening, look for ways to reposition yourself in markets in which people continue to spend money.

Creatively yours,
Jeff

Labels: marketing