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Topic : Survive credit crisis
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Survival Tactics by Akash, International Marketing Shabro

Survival Tactics

By : Akash, International Marketing Shabro
Industry : FMCG/Foods/Beverage Functional Area : Recession
Keywords :

recession

economic downturn

surviving recession

Activity:  1 comments  401 views  last activity : 07 06 2010 20:18:04 +0000
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  1. Stay Liquid: In down times cash is king. Review credit policies for customers and take credit from suppliers. Increase cash discounts for customers if required.

 

  1. Enhance customer relationships: One to one close relationship with customers is a must. Build relationship with all customers including small customers which you may not have got enough attention during economic boom. Listen to customers, know their situation and accept their demands and complaints wherever possible. Build up their confidence level.

 

  1. Don’t sack employees instead try to build up their confidence level. Sacking employees lowers motivation level of employees and creates an atmosphere of fear and mistrust which is bound to affect work. It also spoils public image of the company in the market. If required implement pay cuts and freeze all pay hikes for all employees. Start pay cuts from the top to create a good image.

 

  1. Review all expenses in all departments.

 

  1. Keep costs as low as possible. Review all procedures and production process in order to cut costs.

 

  1. Seek multiple quotations for every purchase. There is no harm in checking whether you are getting the best rates in the market.

 

  1. Cut down expenses on seminars, long business trips, etc.

 

  1. Go for selective advertising.

 

  1. Review your corporate portfolio. Withdraw brands which are not doing well. Exit loss-making businesses. Invest in low cost business and sectors doing well like pharma, food industry and entertainment.

 

  1. Employees make effective marketers even if they are not in your marketing department. In companies like Maruti Udyog, Samsung, etc. employees are given perks to sell goods to their friends, relatives.

 

  1. Try to search new customers using internet.

 

  1. Review your goals and objectives.

 

  1. Don’t give up. If business is not clicking, try to develop new products, some low cost options.

 

  1. Don’t try to extract too much brand premium. Big brands like Lays, FMCG majors are reducing their prices or increasing quantity for a given price, to combat recession. For example Lays has started campaign of 20% extra in order to combat Parle in the fast growing chips market. People will think twice before paying high prices for famous brands at this time.
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1 comments on "Survival Tactics"
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  Commented by  Gopakumar Menon, Sales/BD Manager, Garware Wall Ropes Ltd    | 03 03 2009 15:38:08 +0000 
1.Shifting to cash sales from credit sales, eventhough with discounts, will help to reduce the working capital, under the current circumstances, no bank,country is secure, so its better to have money in hand than relying on customers/banks finacial positions.
2.Pricing need to be aggressive: For manuf, units , the key is to utilize the capacities eventhouth at reduced profits.
3. Recession is also a important period to restructure the company,guide organisation to become, lean and fast to respond. Smart leaders shd take this opportunity to change the change the way organisations culture for the better
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