Westergaard Advertising » Economic Downturn

In the Words of Others – Try Something

Nick Westergaard — Thu, 05 Feb 2009 19:30:00 +0000

Last week at the Iowa City Area Chamber of Commerce Annual Banquet, former UI president David Skorton was asked how his love of jazz has influenced him. “You don’t know what’s going to happen but you have to improvise to find your way through it – like in the current economy. We don’t know how it’s going to end but we have to try something.”

As a trained theatrical improviser myself (long story for another post) I can tell you that I have always felt that improvisational skills strangely translate to the business world. Being on stage without a script or sheet music to follow brings terror but also a certain calm if handled correctly. The secret, as Dr Skorton described, is that you have to jump in and keep an open mind. On stage the golden rule is to say ‘yes’ to others’ ideas as it always keeps the story moving forward.

Now more than ever it seems that folks are being called on to improvise. In our world of careful analysis and review, many are shell-shocked because the playbook has been chucked out the window. Even the experts are flummoxed (see current debate over stimulus plan). What we need is action. Management guru Tom Peters is fond of saying that we need a “bias toward action.” His “Ready – Fire – Aim!” philosophy asks us to throw something up on the wall and see what sticks. If it doesn’t work, we know that much and can try something else. FYI – Tom didn’t say this in response to the current economy. He said it 16 years ago.

Someone else with words of wisdom in dealing with a struggling economy was Franklin Delano Rooselvelt, who famously said: “It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”

Finally, we should all heed the advice of Southwest Airlines founder Herb Kelleher: “We have a strategic plan. It’s called doing things.” Amen, Herb. We can and will get through this. But we cannot be paralyzed by it. Above all, we must remember to try something.

Photo credits – foreverdigital (Skorton), Flanders DC (Peters), Public Domain (FDR), JC Howes (Kelleher)

The Pie Looks Different Now

Nick Westergaard — Sat, 24 Jan 2009 22:52:00 +0000

At NADA today, Dean and I attended a session about media planning with special emphasis on new media and the current economic downturn. One of my favorite metaphors for how to look at this particular issue is to think of your total spend as a pie, with various media making up each piece.

There used to be just a few slices of pie – print ads, radio, TV, and maybe outdoor – but over the years the media has multiplied. We’ve added different pieces – direct marketing, online, social media – and further sliced our pie.

Given the current economic climate, businesses small and large can no longer slice their pie as many different ways. And the pieces that we have need to work for us. As we look at this, we need to pare down our pieces of media pie to only those few things that work for us. In order to do this, however, we need to remember the classic Peter Drucker quote: “You can’t manage what you don’t measure.”

Does your media pie look different? Consider that each week the average adult spends about 4 hours reading the newspaper and/or magazines, watches TV for 16 hours, listens to 19 hours of radio and spends nearly 33 hours online.

Your pie should look different now.

Off to the Big Easy

Nick Westergaard — Fri, 23 Jan 2009 13:53:00 +0000

As I mentioned last week, today Dean and I are leaving for the National Automobile Dealers Association (NADA) Convention and Expo in New Orleans. Our very first client is an auto dealer and we serve several others in the industry as well (I say is because we have the very rare honor in the advertising business to say that we still have our first client). NADA has always provided exceptional workshops and an expo hall that is second to none.

Throughout the expo we will be reporting back on best practices and trade show goings on from this very big event. We do this not just for the benefit of our friends in the auto industry but for everyone. The news and lessons here are often ones we apply to clients across industries. Plus, as Dean said earlier, “If there was ever a year to go to NADA …” With the economic downturn, industry struggles, Toyota overtaking GM, and keynotes from Ford’s Alan Mulally and two former US presidents, this year should provide a great industry snapshot at a critical time as well as new media vendors looking to offer tools to a sector that needs new tools now more than ever.

The Role of Positioning in an Economic Downturn

Nick Westergaard — Wed, 07 Jan 2009 17:47:00 +0000

If you were Harley Davidson in this economy you might think that you’d have a problem, right? You make high-end bikes that are expensive and could be seen by some as an expendable purchase given the current climate. Well, Harley has headed this off at the pass with their new TV/online campaign (above) that you’ve no doubt seen this past week.

In one fell swoop they re-galvanize their brand evangelists (click through to YouTube and you can see the user comments where someone posts that they’ll have to “pry my current sportster keys from my cold dead hands”) and fire up folks on the fence with their “Guarantee Made of Iron.” They clearly acknowledge the current state of affairs but firmly position the Harley Davidson Sportster as one of the only sure things left in the economy and, moreover, a good investment. They even go so far as to position the brand and what it stands for as one of the building blocks of our freedom. Wow. Well done HD.

See how major brands like Harley and Walmart are talking about the economy without literally talking about the economy? More than overt crisis messaging, what’s called for now is good, old-fashioned Ries & Trout positioning in a way that is relevant to the revised priorities of the day.

What are some other examples – good or bad – that you’ve seen of positioning for the current economy?

Brand New Year

Nick Westergaard — Thu, 01 Jan 2009 16:54:00 +0000

It’s a new year and now that the champagne bottles have been tossed out and the confetti has been cleaned up, we have a lot to do. The economy is in shambles, industries from Wall Street to Main Street are faltering — some with government assistance but most without. We need new strategies to right our course nationally and for our businesses because the old ones just won’t work any more.

At Westergaard Advertising, we have one prediction for the New Year — brands will be bigger than ever. This may sound like a simple overstatement of the obvious but think about it. In a troubled economy you can only lead on price for so long — someone can always go lower and you cannot compete with that, especially when we don’t know where the basement is. Where you can establish an edge is in the intangible …

At the end of the day, it comes back to who your business is. Who your brand is and what kind of equity you’ve built up. In times of crisis there are two paths for your brand to save the day.

Your brand is impeccable, has always been impeccable, and most of your customers will stick with you through rough times.
You have neglected your brand. Your name doesn’t mean much or as much as it used to.

If you are in the first group, you don’t necessarily have it made. If you are in the second group, all is not lost but you must immediately perform a branding course correction. You must take as many resources as you can muster and put them behind your brand. And I’m not merely talking about a new logo or website but rather taking every decision you make as an opportunity to build brand equity. Do customers come into your business to pick something up? How could you go that extra mile and generate buzz and a positive brand experience? Is there something you could do that would leave your customer obligated to tell all of their friends about your business

These are the kind of brand stories you need to cultivate. Even if you are in the first group with an impeccable brand, things are in flux now and you musn’t loose site of your brand’s state in the ever changing public sphere. Reach out to your customers and wrap them in your brand. Remind them why you are remarkable

In short, build your brand in the new year. Keep it at the center of your mission. Put as many dollars toward it as you can spare — think of it as an investment your business’ most crucial asset. But there’s also a lot you can do that won’t cost a dime. Talk to your team. Get their ideas on how to build bulletproof brand loyalty in 2009. And, most of all, Happy New Year.