Reinventing & Retooling is How Companies Are Rebounding From the Economic Downturn

The drop in the U.S. and world economies overdiscovered that private label brands are a way to
the past 18 to 24 months has created seriousdistinguish themselves from their competitors.
challenges for retailers and manufacturers. SinceChallenges in the economy have driven more
starting this entry, the U.S. Stock Market sufferedshoppers across social economic groups to
a Flash Crash which will continue to have apurchase Private Label/House Brands, recognizing
negative impact on the economy. During the pastthe value of house brands vs. name brands.
year, many manufacturers have had to retoolRetailers have experienced an upside by adding
and rethink their product line. Retailers,Private Label programs that encourage trial and
restaurants, hotels, and spas are fighting forrepeat purchases across food and nonfood
wallet share amongst themselves. Manufacturerscategories.
are teaming up with retail establishments toCoupons are a great marketing device for
create new promotional marketing tactics to wincompanies to increase their customer base.
market share.Coupon usage has been on the rise; last year
The new norm for the smart shopper is to shopover 3 billion coupons were redeemed.
with a coupon or watch for promotional deals.Advertisers are using coupons to entice folks to
The savvy and even not so savvy consumer isbuy; coupons allow the consumer to pinch pennies
not spending money they way they once were.and buy name brands or try newly introduced
The need for a $250 handbag, new outfit or aproducts. Companies like Couponmom.com,
night out on the town has been replaced for lastGroupon, Valassis, and SmartSource have seen a
year's handbag, a less expensive outfit andsignificant increase in coupon use.
evenings at home.Restaurants have the biggest challenges in fighting
It is not uncommon to turn on the TV or radiofor wallet share in today's market. Many
and hear how businesses are struggling or evenrestaurants have gotten creative in order to bring
closing their doors. When the housing market andin customers. It just isn't fast food restaurants
banks crashed, the bubble burst and Main Streetlike MacDonald's, White Castle and Dunkin Donuts;
saw the ripple effect in lost jobs. At the sameit is steakhouses like Morton's where a
time the unbreakable baby boom generationthree-course meal for two is $99.99. It's not
started to hit 50 & 60.The tricks that thisuncommon for some restaurants to offer ½
generation used to rebuild businesses during pastoff bottles of wine during the week, while others
economic melt downs have not worked. Retoolinghave no corkage charge when you bring your
and creating a new norm seems to be the wayown bottle. Small dishes are another way for
that many businesses are reinventing themselvesrestaurants to cut costs and offer meals at a
going forward; many companies survived thelower price. I am all for smaller plates as they are
Great Depression the same way.more figure friendly. Fixed menus and deals at
What businesses have done to capture walletcertain hours assist customers in managing their
share these economic times.dining out budgets. P.F. Chang's has a great idea
Major retail chains are working with clothingfor Date Night, a four-course fixed menu for only
designers on creating exclusive lines to draw$39.95. McCormick & Schmick's features daily
traffic to their stores. Retailers are looking for aspecials for under $10.00, all of which include a
unique point of view in order to pull away fromsalad. Family restaurants are offering free meals
the pack. Established brands like Ellen Tracy,for kids under a certain age as well as small
Tommy Hilfiger and Dana Buchman have added adishes and action packed kids menus like that of
lower priced line to attract new customers andThe Cheese Cake Factory.
retain loyal ones. Macy's has been running adsThe recession has opened up opportunities for
promoting their return policy (up to 120 dayschange and creativity amongst American
where most retailers have a 30 day or lessbusinesses. For most companies the theme going
return policy). I haven't been a department storeforward on recapturing market share is; Reinvent
shopper for the past ten years, but I have been& Retool=Rebound. The true winners in today's
lured back by heavy discounts and generouseconomic climate are the savvy consumer and
return policies.companies that recognize that the consumer has
Grocery stores and big-box retailers havechoices.