Article courtesy Eduardo Pérez, Marketing Manager-Market5201/www.market5201.com.
2023 has already caught up with us. Although the new year is less than two months away, it is a reality that we must approach it in a different, disruptive and creative way to take advantage of the business opportunities it presents.
2023, A year for Creativity and Intelligence
High inflation for next year, country growth rates of less than 2.5%, and rising labor and input costs. All this leads us to be prepared, get out of our comfort zone, and implement innovative business strategies.
Bank of America reduced its growth forecast for the U.S. to 1.5% when it previously estimated 1.8%.
The Fed’s actions have triggered an economic slowdown to reduce inflation. While that could lead to improved inflation rates, the real risk is that in 2023 we could face a recession.
Where Does This Lead Us?
The consumer is no stranger to what happens in the market when there are sharp fluctuations. Consumption habits adjust when purchasing power is affected by the inflationary environment.
Hispanic families are beginning to adjust, which will continue in the coming months. We now have shoppers seeking to balance consumption with income, questioning price points to optimize the amounts they pay during their visits to the store.
This may lead, at some point, to a re-evaluation of the brands being purchased, a migration phenomenon where one brand may be temporarily sacrificed for another. For the brand that leaves, it is a problem because it allows others to enter, and for those that enter, it is a tremendous opportunity to improve their business.
What Can We Do
It’s not all bad news; instead, it’s a moment where we need to generate specific actions to come out on top.
First: Brands must reinforce their communication plans and marketing, seeking to be present in the consumer’s mind through a comprehensive effort that culminates at the point of sale. Remembrance and positive association are essential as they will help us reduce the possibility of migration to other brands. It will be a deterrent to the temptation to change.
Second: Extend or make room for product portfolios that include new alternatives that are smaller than the usual presentations to maintain price points or mitigate part of the increases.
Third: Innovate. It sounds simple, but disruptive alternatives, products that solve immediate needs and focus on immediate consumption, will definitely be well received in the current situation.
In examining conscience, can we say that the business is ready, and do you already have comprehensive marketing and merchandising plans? If not, now is an excellent time to start.