Price What is the value of my product/service? How does your price compare to your competitors? Promotion How do you reach your target market? What marketing platform do you use? Do events, holidays, or seasons affect your message and your timing? How do your competitors promote their products/service? Offer new products There comes a time when the products/services you offer, no matter how good they are, lose their appeal. You have no other choice but to offer something new or develop the existing product you have to maintain its relevance to your target market. Innovate or go extinct. You don’t have to wait for a recession to develop your product/service. Innovation should be an ongoing thing so when you face a downturn, you’re ready. Yes, product development can be a lengthy and difficult process but during a recession, the mechanics change. Innovation during this difficult time can mean substituting your product with a new one.
Or Offering a New Service at a Cheaper Price
You can draw inspiration from your customers. Author Ram Charan, mentioned in his book, “Leadership in the Era of Economic Uncertainty,” that three quarters of companies in the 2001 recession developed new products through customer surveys and segmentation. Segmenting your customers based on their needs will also provide insight how you can serve them better. For example, a local restaurant started a delivery service offering freshly-cooked meals because of the COVID-19 lockdown, adding only a minimal Colombia Email Address cost for the delivery fee. The additional service made more impact to their customers than the meals they offer because they don’t have to go out or wait in long lines outside the supermarket just to get food. Offer new products to new customers This strategy combines the second and third strategy where you develop new products and sell it to a new target market. This is the riskiest, especially during an economic downturn, but there are a lot of companies that used this strategy and succeeded in doing it. Two companies that best exemplify product diversification are Apple and IKEA.
Apple Introduced the Ipod Despite It Being
A company that produces personal computers. IKEA, on the other hand, started offering televisions when, in fact, their only focus has been furniture. Both of them introduced products that are very different from what they were offering yet the new product became a success. As mentioned beforehand, such a strategy is very risky but not impossible. To CRYP Email List measure your risks or success, consider these factors before you diversify. They allow you not only to look at your business and your competitors but also let you evaluate other things that might affect your business environment. Your competitors – how big are they? How aggressive are they in capturing the market? What is the quality of their product/service compared to yours? Your suppliers – How many suppliers do you have? Can they easily increase their prices? Can you easily switch to a new supplier? If so, will it cost you more or less? Your customers – How many customers do you have and how big are their orders? How strong are they to dictate the price and terms? Can they easily switch to another provider? How much will it cost them if they switch.
