Despite the recession there are still a number of companies, across a range of industries that are experiencing profit growth. We should be celebrating these successes and not let our focus be consumed by the negative stories. Recession is almost certainly a time for change, but not necessarily failure. Brands may have to adapt to reflect how people are spending; like Waitrose, which recently introduced a lower priced range to their traditionally high-end selection of products, to encourage profit growth.
This change from Waitrose came days before, supermarket Morrisons reported in its preliminary results for 52 weeks ending on the 1st February 2009 that like for like sales were up 7.9%; proving that value is currently an important issue for supermarket shoppers. Chief Executive, Marc Bolland, said: “Our focus on fresh food and value appeals to shoppers everywhere and provides a strong platform to take Morrisons from national to nationwide.”
This, it seems is a theme that unsurprisingly repeats itself across many areas, not least entertainment. As people are watching the pennies, cheaper entertainment seems to be an easy way for people to cut back. This is good news for companies such as Cineworld, which operates 75 cinemas. The company has just released its figures showing that sales for the year rose by 4.4%.
On this, Chairman, Anthony Bloom commented: “Movies have an enduring appeal and a visit to the cinema is relatively low cost when compared with other forms of leisure and entertainment.”
Operating in a similar sphere, LOVEFiLM.com, Europe’s largest online DVD & games rental service and entertainment has also had a phenomenal year achieving success during recession: “40 per cent increase in memberships since the credit crunch began. Now renting over 3 million DVDs per month from a catalogue of nearly 70,000 unique titles, the latest figures reveal further proof that for Britons, staying in is the new going out.”
Commenting on the recent success during recession of LOVEFiLM CEO Simon Calver said: “This is further evidence of what another great year it’s been for us. Given the uneasy economic climate, we’re thrilled that customers increasingly recognise LOVEFiLM as the affordable and accessible entertainment option. Coupled with our recent acquisition and integration of the Amazon DVD rental business in the UK and Germany, we are looking forward to what the next year brings.”
A few other success stories include KFC announcing the creation of 9,000 jobs, McDonald’s sales increasing by 7.6 per cent in the final quarter of 2008, Cadbury announcing a 30 per cent annual profit growth as consumers turn to chocolate treats during the recession – and the list goes on.
This small selection shows the success of businesses offering cheaper options and reflects the way people are choosing to spend their time. For the average Briton adjusting to the difficulties of a recession may mean spending less, but that doesn’t have to mean enjoying life any less. Value brands and cheaper entertainment options are the obvious choice for consumers, so how can every other business align themselves with value brands to ensure steady trade, without damaging the brand’s values?
Businesses such as LOVEFILM and Cineworld have capitalised on marketing their brands through loyalty and membership programmes, which give members further discounts and build loyalty at a time when the public are looking for extra value. But these clubs are also a way that brands such as Virgin Experience Days and Theatre Tokens can offer customers discounts and drive sales without devaluing their usually more expensive products.
The Rocket Marketing Group has a range of products that offer businesses a way to tap into the discount market. These products include The Entertainment Club, The Midweek Dining Club, The Big Savings Club and The Home and Garden Club.
Contact Us for more information and to discuss how we can help your business achieve success during recession.