Is Your Business Recession-proof?
Webinar Key Takeaways
02
Key Takeaways
Meet the Speakers
In Preparing for a Recession, Manage Finances Wisely
Develop a Game Plan Before a Recession
View Key Takeaways
Watch the Webinar
Additional Resources
Recessions Defined
01
03
Kathleen Blum, Vice President, Shopper Insights, C+R Research
Christy Schlosser, Vice President, C+R Research
Moderated by Seth Adler, ATI Conference Director
Featuring:
Sponsored by:
Dave Mastrofski, Vice President, C+R Research
Learn From Some That Are!
Brand Identity Matters
04
An economy experiencing two consecutive quarters of negative GDP is generally considered to be in a recession. Recessions can occur for a variety of reasons, whether a spike in oil prices, excess debt in the housing market, rapid changes in economic expectations, or a global pandemic. Over the last 70 years, when recessions occur in the US, they have typically lasted between 2 and 18 months, accounting for less than 15% of all months. Over time, the US economy expands more than it contracts. Those businesses that are more recession-resistant provide necessities, such as healthcare and groceries, and value vices, such as alcohol and grooming services. But offering necessities or vices is not a guarantee of recession resistance, though.
Key Takeaway
Share this page
1
Previous | Next
“We have 52 company restaurants, making us the largest operator of the restaurant brand. So, we are right there next to the franchisee. We know exactly what it takes to run them and what it takes to build them and what the challenges are, be they labor or food or whatever.”
- Scott Deviney, CEO, Chicken Salad Chick
To successfully navigate a recession, companies must be flexible and ready to adjust
“During the Great Recession . . . beauty salons grew by more than 14%. When you think about it, we all want to look good, but how many of us are skilled at cutting our [own] hair?”
- Kathleen Blum, Vice President, Shopper Insights, C+R Research
Vinod Paul, Chief Operating Officer, Align Managed Services
Any business needs to stay aware of what is happening in the market and the reasons for the recession. A company prepared for a recession will fare better than an unprepared one.
Vice President, Shopper Insights, C+R Research
Kathleen Blum
Kathleen Blum on Recession Resistant Business
Watch
Managing finances wisely helps businesses absorb losses and make investments in research and technology during a recession. When thinking about an economic downturn, focusing on understanding the shopper, branding, and quality, and enhancing the shopper experience, can lead to higher sales and profit margins over the long term.
2
Wise financial management means still investing in the business
There are three risk areas to be aware of:
Increase the likelihood of weathering a recession with a research-based plan to mitigate risks
3
“Ahead of a recession, we need to stay vigilant about where those threats are coming from . . . we have to . . . put out the biggest fires first.”
- Dave Mastrofski, Vice President, C+R Research
In every instance, risks can be understood and mitigated before a recession occurs—by talking to consumers, talking to businesses, and reading the marketplace. This pre-recession research contributes to a more actionable plan, whether that involves revising a category's value proposition, focusing on innovation in a product or marketing, managing price thresholds, or using simulations to counter competition.
Category exodus, when customers leave a category entirely, which can happen if the category is about to fall out of trend or if the category is no longer going to be used in the way it once was, or if consumers are shifting purchases to an adjacent category or method of purchase. Reduced consumption, when customers make fewer trips and/or purchase less in each trip. Brand switching, when customers switch purchases to a competitive brand.
1. 2. 3.
Vice President, C+R Research
Dave Mastrofski
Dave Mastrofski on Recession Risk
To minimize damage from a recession, the first step is to create a focused game plan.
In any industry, maintaining brand identity before, during, and after a recession is important to viability. During a recession, it is critical to stay true to brand values to ensure a swift recovery post-recession. Maintaining practices that support the brand’s vision and values, such as continuing charitable giving or community involvement programs, impacts customer loyalty during a recession. When streamlining product offerings or SKUs in a recession, which makes sense to save money on operations, focus on key traffic-driving SKUs. Do not choose arbitrarily or use “gut instinct” to streamline products, but rather rely on financial analytics, shopper analytics, and product research to keep those that are drawing in customers while cutting those that are not as beneficial to operations. While it might seem counterintuitive, it is important during a recession to maintain a product innovation pipeline to continue differentiating from competitors and drawing in new consumers.
4
Staying true to brand vision and values maintains customer loyalty
“It’s a fairly reasonable way to get new guests in your restaurant, partly because third-party delivery is bringing them there.”
“[A recession] is definitely time to innovate. Don't rest on your laurels. . . be judicious about how you innovate by listening to what shoppers are looking for.”
Christy Schlosser
Christy Schlosser on Staying True
Price elasticity can help, but should be considered in conjunction with other brand aspects that are not price-related. Offering value to customers by finding unique ways to message value that are separate from price will help avoid getting into price wars with competitors and/or degrading brand equity and upsetting customers. Instead, consider using a rewards or loyalty approach to boost traffic, or provide extras to customers along with the core product offering. This might include samples, free services, or free features.
Speakers
Seth Adler
ATI Conference Director
Watch the WEbinar
Watch Webinar
Is it true that some industries are recession-proof? The hard facts are that a recession impacts everyone in some way, but some businesses navigate these waters better than others and are perceived as recession-proof. Since there is debate as to whether we are already in a recession or entering one, this webinar will unpack tips on how to minimize the effects of a recession on your business. Things you can expect to learn from this webinar are: • What makes some businesses appear to be recession-proof • Tips you can learn from recession-resistant businesses • Recommendations on how to prepare and survive a recession and come
WEbinar
out thriving
Turning to an Omnishopper Community to Stay Ahead of the Curve
Case Study
View Case Study
Previous
Resources
Using Live Hive to Develop and Optimize Positioning
Three Ways to Turn Recessionary Lemons into Lemonade
Blog
Visit Blog
