Down, But Not Out
Consumers are cutting back spending and changing their spending priorities. But there are still good opportunities to reach them.
- 49 percent of U.S. consumers are reducing their overall spending to compensate for rising gas prices. - source
- A Food Marketing Institute survey shows that 71% of respondents are cooking at home more and eating out less at restaurants. - source
- Sales of new and existing homes are at their slowest pace in 16 1/2 years - source
All of this adds up to opportunities for marketers and PR professionals in the food and home industries. When consumers are feeling the economic pinch, brands and businesses will need to stand out, says David Portalatin, director of industry analysis at the NPD Group, Port Washington, N.Y. "There are opportunities out there for brands that differentiate."
Here are some consumer issues and some marketing inspiration to help you differentiate and reach consumers effectively right now.
Food
Issue: A survey by NPD showed that more than half of financially challenged consumers surveyed said they are stocking up, preparing more meals at home and using leftovers. - source
Inspiration:
- Showcase your food product with healthy recipes that lend themselves to large batch cooking, so consumers can freeze some for later.
- Show consumers how to revitalize leftovers in exciting ways.
- Give consumers at-home recipes that are as appealing as restaurant fare, and show them how to create an elegant dining-in experience.
Another NPD study finds that more men are cooking than ever before. Can you position your product to appeal to these home chefs?
Home
Issue: With a slow housing market, homeowners are nesting. A survey by building products manufacturer Johns Manville and Opinion Research Corporation shows that 24 percent of homeowners are considering using their federal economic stimulus money to upgrade or improve their homes. In addition, roughly one in five respondents said they would definitely use their rebate money for a home improvement project.
Inspiration:
- Demonstrate long-term value: An Ace Hardware survey shows that 25 percent of Americans plan to take on a home-improvement project, and it’s primarily to enhance their home’s value for the future. Give consumers DIY projects that are both personally and financially rewarding, and help them understand what they can and cannot accomplish on their own. - source
- Show and Tell: The most common reasons cited for a home improvement project with the rebate money were comfort (34 percent), aesthetics (17 percent), environmental impact (15 percent), resale (13 percent), and return on investment (8 percent). Show consumers new and affordable ways to accomplish their makeover goals. Tell them how to do it with step-by-step instructions, advice from experts, and on-line resources like instructional videos. Consumers are being more careful in how they spend their money. Give them tools they need to spend it well, and they’ll reward you with repeat business. - source
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