Advice to hard pressed Kitchen and Bedroom retailers in the current economic climate
David Caulfield – BA Components Sales & Marketing Manager looks at current Market trends and offers advice to hard pressed retailers in the current economic climate.
We are living in extraordinary times and the recent meltdown of the global economy has had an impact however large or small on us all.
It is important in any business in such times that we don’t passively succumb to doubt but together rediscover as a market and an industry our determination and belief that we can manage the current situation.
Whether we are manufacturer, distributor, retailer or fitter we need to realise together that the potential in the market for growth will return and by working together towards a common goal we can improve and develop the KBB market as a whole.
Amid all the uncertainty and even now with the arrival of possible signs of an emerging recovery the core question is simple: are we resilient and strong enough and do we have the long term strategies in place to weather these uncertain times and stay the course?
We have witnessed the demise of many in our market in the last twelve months, from small one man band fitting operations to some of the giants in our industry like MFI and Bernstein.
In order to not only survive but to continue growth and development in the current climate our strategic approach whatever the size and scope of our business must include some essential elements:
Investment; we need to invest in the future by continuing to develop our brands, our products and our people to better cope with the present and be prepared to capitalise on the expansion that will invariably follow the recession. The need to publicise our offering to the market by advertising, PR and good marketing is imperative. A well planned and effective advertising campaign in difficult times can position our businesses for growth and expansion. If the target audience are unaware of the service we offer the likelihood is they’ll never avail of it. Advertising strategically can be an extremely good method of lead generation however large or small our business, and can be bought in a cost effective manner if purchased wisely.
Establish and agree an advertising and promotional budget that is manageable and comfortable within your current business planning and whatever the circumstances stay within it. Always choose the media to suit your brand, your target market and more importantly the budget you have set. Try to spread the cost and effect of what you are doing over as long a period as possible, as it takes time and repetition to establish your branding and message in your target customer’s consciousness, but stick with it as the results will be rewarding for your business.
Good marketing and PR with effective and well positioned displays, POS and brochures will give your customers clear reference points, particularly if linked visually and in content with your current advertising activity, to make sensible and intelligent buying decisions and the more buying decisions made in your favour the better the outcome.
Efficiency; The careful and thoughtful implementation of a plan to credibly and comprehensively address any inefficient spending or material waste in our business procedures and practices is essential in times of financial extremes and needs to be addressed as a matter of urgency. Establishing a service/cost structure and fiscal framework suitable for our businesses and the current marketplace and climate while at times painful and stressful is still essential to long term survival and growth. There is no place in a depressed market for waste and inefficiency.
Competitiveness; It is critical to maintain competitiveness while facing increased competition not only from within our own market but from many others all competing for our customers spend. Offering choice and quality to allow consumers to customize the look that fits within the needs of both family and budget is the key to long term success and we need to supply solutions and tools to provide this.
With the current parlous state of the property market fewer people are buying or selling property and moving home, but there is a real opportunity for those who want to improve their current kitchens, bedrooms or bathrooms. Ensure you are best placed to offer a service suited to this with replacement doors, worktops, accessories and allied products.
While reducing marketing and advertising spend in a downturn defends profit in the short term, sustainable marketing and advertising investment now will realise a growth of market share and later result in an improvement in profitability to outweigh any short term reduction.
The time is right to offer hard pressed consumers the benefit of innovative design, products and marketing strategies to realise their dreams and to publicise and grow our brands. The market is still out there, it is up to us all to go out and find it.
