 |
Woody Stoudemire
President,
Gotham, LLC
|
Overcoming
the Great Panic of 2008-2009
These are tumultuous times, of which, I’m sure you’re aware
and don’t need me to run down the laundry list of economic woes facing
the nation and the world.
This is the third recession I have encountered in our 20 years
of marketing here at Gotham, and without a doubt, the most significantly
challenging set of circumstances yet. Some call this period a “correction”
or a “weeding out of weaker competition,” while the news media
likes to compare it to the “Great Depression.“
If you Google “recessions in the US” you will find a better term
for it- “panic.” Apparently, before the term “recession,” there
was the “panic of 1857” and so on. Though, much like a recession,
panic is a short-term phenomenon, and we all need to keep that
in mind.
Since this is my third “panic,” I would like to share some wisdom
I gleaned along the way. Hopefully, these ideas will help you think
strategically about what you can do on a personal, and corporate
level, to navigate the apprehension that naturally comes with times
of panic.
Personal Tips for Dealing with a Recession
- Thank God you are in possession of your number one asset…your
health. Without health, all the financial strategies in the
world are irrelevant.
- Count your blessings, of which there are many. We
are a “society of fixers” who tend to look for what’s broken
in an attempt to correct it. It’s far too easy, and human nature,
to fixate on the negatives in the world today.
- Accept that the
recession is a temporary situation. Long recessions historically
last 16 months. We are in unprecedented times and this one
may last longer; nonetheless, we are in month 15 of this economic
downturn. Better times are around the corner.
- Turn off the TV. The
recession/depression hyperbole is unavoidable in the news
and particularly bad on TV, where messaging is truncated into
dramatic sound bites designed to arrest your attention.
- Exercise and get
good rest to counter festering stress. Taking care of yourself
allows you to think clearly and maintain sanity under duress.
- Be
positive and try to spread the word. Consumer confidence can
be built, one person at a time.
- Come out of your shell. Although
hiding is a strategy, someone is pursuing your customer base,
while you’re “laying low” until better times.
- Accept that the
“good old days” in business may be long gone. The new reality:
there is competition everywhere and cheaper channels of communication
for them to address the market.
- Rethink
everything. Become more efficient personally and corporately.
- Pray
on a regular basis for continued good health and better
things to come.
10
Reasons Why Advertising
in a Recession is
a Great Idea
- Many companies tie their advertising to what competitors are
doing. How could so many people have missed the “Would
you jump off a bridge if others did?” speech from their mom.
These “me too” companies will always struggle to get ahead of
the competition because they are emulating others. The idea is
to be different, market differently and grow market share as
a result.
-
During the
Great Depression, two cereal makers dominated the market.
Post and Kellogg’s entered the period with equal market share,
Kellogg’s chose to continue advertising while Post cut back.
Kellogg’s emerged from the Depression as the dominant market
leader; a position they have not relinquished to this day.
Disclaimer: Blah, Blah, Blah, Etc.
- To grow market share, your
company’s offering must be communicated in every economic
climate.
- Many
companies are cutting staff or going out of business
altogether, which leaves their former clients looking for
new resources, like yours. Attrition can be a very good thing.
- There is less
clutter in the communication channels. It’s much easier
for your message to be heard when the competition is retreating.
- There
are excellent deals to be found, particularly in media
buys for print, broadcast and outdoor. These media outlets are
hungry for advertising dollars.
- Businesses review everything in a downturn- operations, personnel
and vendor relationships. In a downturn, there are opportunites
that may not be available otherwise.
- Once the recession is over, your company
will be positioned for continued success in the future.
- The Internet
enables companies to advertise to an international market
more affordably than ever. Take advantage of this cost-effective
advertising solution.
- Money is still being spent. It’s a little harder to
come by, but the world is still rotating. Go out and
get your share!
|
 |
 |
Meet
Brent Fidler and Jeff Carter from
Southern Glove.
Southern Glove is a manufacturer and supplier dedicated to
providing the best value and highest quality gloves available within
the work glove industry since 1945.
The company originated when Arthur C. Little, grandfather of Brent
Fidler, who had a milk delivery route as a youth. Arthur delivered
to Newton Glove and was impressed with the glove sewers and machinery.
It soon became his passion to start a glove company one day.
In the midst of the Great Depression, Arthur, who was a graduate
from NC State, found work as a bookkeeper at a trucking firm prior
to forming Southern Glove. In 1945, he and brother, Percy Little,
started Southern Glove. Arthur grew the company to six factories
with over 1,200 employees by the late 1970s.
In 2000, Arthur’s grandson, Brent, became President and CEO of Southern
Glove. A Clemson graduate with a B.S. in Industrial Management and
a MBA from Appalachian State University, Brent is married with three
young children. Since the age of 16, Brent has worked for Southern
Glove with a very “hands-on” approach.
Brent’s knowledge and experience in the work glove industry truly
make him the backbone of the company. After three generations
and over 60 years, the company is still owned and operated
by the same family.
Like most manufacturers, Southern Glove has faced many challenges.
The largest, according to Brent, was turning the company around
from a very unprofitable position in 2001. He was forced to close
all domestic manufacturing operations and relocate them to Honduras.
“Ongoing challenges include finding new and innovative
products to continue to differentiate Southern Glove from the Asian
import competition,” Brent says.
On the frontline in the battle for work glove market share is Brent’s
right-hand man and Vice President of Sales for six years, Jeff
Carter. Jeff is married and has two children. With a B.S. in Business
Administration from Gardner-Webb University and 30 years of experience
in the hand and arm protection industry, Jeff has done an incredible
job of increasing sales, as well as developing and building customer
relationships. Regarding the economy, Jeff says, “ We have experienced
nice growth in the last several years and hope to continue that
trend. Of course the current economic conditions are a concern
to everyone. We are meeting this challenge by constantly looking
for new customers, supplying more product to existing customers
and expanding our contract sewing services to diversify our product
line even more. We have a team philosophy at Southern Glove and
work together to ensure the future success of the company.”
Gotham has enjoyed partnering
with Southern Glove on various projects over the years. Recent
jobs include a new
website design featuring a content management
system that functions as an online catalog as well as the design
of a comprehensive four-color printed catalog. “We have been
very happy with the follow up and dedication the Gotham team
has shown to our projects, and are very satisfied with the look
and feel of all our marketing materials to date. We are extremely
pleased with the creativity of design Gotham has brought to our
new catalog and website.” Brent Fidler
|
Brent Fidler
President & CEO
Southern Glove, Inc.
Jeff Carter
Vice President
of Sales,
Southern Glove, Inc.
|
|
 |
Marketing During
a Recession
Successful marketing and advertising during a recession stems
from two key objectives -- increasing short- and long-term profits
and growing market share. Studies show that maintaining marketing
efforts can better position your company, not just during a recession,
but for years to come.
A McGraw-Hill Research study of U.S. recessions found business-to-business
firms that maintained or increased advertising expenditures during
the recession in 1981-82 reported a much higher sales growth, both
during and after the recession, than companies that cut or froze
advertising dollars altogether.
Companies that were aggressive with advertising during the recession
not only saw an increase in sales, but profits were 256% greater
than companies that did not maintain advertising. In fact, for
businesses that cut advertising during the recession, sales growth
was modest, even two years later. Those companies that kept up
with advertising campaigns reported significant sales growth for
a period of four years.
[ click image to expand ]
Penton Research Services, Coopers & Lybrand,
conducted a study of the 1990-91 recession, along with Business
Science International. Results indicated businesses that focused
on a strong marketing program performed best, thus strengthening
their customer base, winning business from less aggressive competitors
and positioning themselves for future growth.
|
|
 |
Client: NW
NC Advanced Materials Cluster
The Northwest North Carolina Advanced Materials Cluster, led by
Interim Director, Mike Pierce, is responsible for developing and
promoting an employee economic development initiative called the
“Workforce Preparation System” throughout Wilkes, Ashe and Alleghany
county. Now more than ever, Mike has a challenging, but very
rewarding job. This collaboration is a combined effort of Wilkes
Community College, the JobLink Center, Northwest North Carolina
Advanced Materials Cluster, the High Country Workforce Development
Board, the NC Community College System, Wilkes, Ashe and Alleghany
public schools, and the three county governments.
At the center of WPS is “WorkPath,” a step program that assesses
the career-readiness of the regional workforce, increases knowledge
of career requirements, helps employers identify skilled employees,
improves coordination between partner agencies that assist the workforce
and its employers, and ultimately produces a solid base of manufacturing
and engineering skilled employees for companies looking to relocate
to the area.
Employees entering WorkPath are tested in three key
areas: Applied Math, Reading for Information and Locating Information.
Based on the results of these tests, employees can earn a Career
Readiness Certificate (CRC) of Bronze, Silver or Gold based on skill
level. Employees benefit by increasing their marketability to potential
employers and by increasing their chances for advancement. Employers
hiring WorkPath employees benefit by hiring the right person with
the right skills for the job and reducing turnover. Ashe, Alleghany
and Wilkes counties benefit by showing new businesses looking to
come to the area that a viable workforce exists.
Target Audience:
The Workforce, Employers, Educators of Wilkes, Ashe and Alleghany
county, and Potential Businesses looking to relocate.
Primary
Objective:
Develop a comprehensive marketing strategy that would ultimately
brand the effort, create awareness, and create demand. The secondary
objective was to increase the number of employees earning Career
Readiness Certificates by 1,000.
Challenge:
To a great extent, employers and employees are unaware of the
components and benefits of the “ready to work” piece of the Workforce
Preparation System and the resources available.
1.) NW NC Advanced Materials had
a limited marketing budget obtained through a grant written and
secured by Mike Pierce to promote economic and workforce development.
2.) Creating
an image for a government program that would appeal to the general
public may be tricky.
3.) Creating communication tools for a government
program that are clear, concise and easy to understand may be difficult.
4.) There were so many stakeholders with different agendas
involved and strategic and consistent messaging, as well as a one-stop-shop
for accurate information, was non-existent.
5.) There are a significant
number of citizens in the tri-county area who lack a high school
diploma or GED.
6.) There is a significant lack of skilled craft
persons in the tri-county workforce.
Solution:
Gotham researched and evaluated the NW NC Advanced Materials Cluster
from “head-to-toe” including current marketing practices, communications
pieces, and the initiative’s overall creative look and messaging.
A 20+-page comprehensive marketing plan, complete with competitive
analysis, market assessment, communications critique, budget
and timeline for tactics, was developed and presented to Mike.
Results:
Based on Gotham’s recommendations, and in an effort to brand the
initiative, a new name was created for the “ready to work” part
of the Workforce Preparation System called, “WorkPath.” The name
is memorable and will appeal to the general public. A two-color
logo was created to give life and credibility to the step system.
Two, four-color brochures are in development. One targets employers,
detailing how hiring WorkPath employees can benefit their company.
The second brochure speaks directly to employees as to why their
participation in WorkPath is so critical.
While tactics are currently
being rolled out, future projects include a PowerPoint presentation
for educating community leaders, an all-inclusive website www.goworkpath.com where
employees, employers and educators can go for consistent and
accurate information, and a public relations campaign to inform
the community at large about WorkPath, the CRC, etc.
Client's Reaction to the Project:
Mike enjoys the partnerships between business, industry, education and government,
not only for the great people he works with, but also the satisfaction
of doing something that makes a difference in people’s lives. “Working
with Amy and Woody has been a great experience. The professionalism, creativity
and energy they bring to our project guarantees that we will reach our
market with the desired message.”
Mike Pierce - |
Mike Pierce
Interim Director,
The Northwest NC
Advanced Materials
Cluster
|
| |
|
|
|
|
