Some Insights into Our Crappy Economy – by Todd Hale

Here’s the summary of a neat presentation by Nielsen Economic Advisor Todd Hale, as he provides some insights into consumer behavior in lieu of our crappy economy (marketers and business owners, take note):

Behavior Shifts:

1. Coupon redemption which in past years has declined, was up 17% in Q4’08
2. Consumers are increasing their turn to internet – must have messaging on your website about value
3. Increased ownership of home electronics, particularly big screen tv’s
4. Spam, Macaroni and Cheese, Ramen, and dollar stores had a great year
5. Organics are doing poorly, canning and freezing supplies are doing well
6. More people are spending time at home to save money.
7. TV viewing time has increased 5 hours/month to an average of 151 hours/month
8. Newspaper advertising is dying
9. Of all the spending channels, Online Spending had the highest increase in Q1’09 of 15%

Marketing:

1. Kellogs SEO’d for the terms “Cereal + Deals” and “Cereals + Value”
2. In the last recessions, companies that increased their marketing and sales efforts during the recession, experienced on average, a 275% growth in the 5 years post the recession.
3. You need to have the right promos on the right products

So let me break that down for you point by point…

Behavior Shifts:

1. People were cheap once… now they are even cheaper.  Yaye coupons!
2. I reckon it’s due to a) high gas prices b) online prices tend to be cheaper and c) fear of rioting in Los Angeles…  Ultimately, be grateful you have an online business.
3. That $600 stimulus tax rebate we got back from the IRS obviously went towards something useful, like a healthy investment in a large TV.
4. Re-read #1.
5. This makes sense… bad economy = the need to cut corners and save.  Forget about saving on big screen TVs and other frivolous materialistic items, we should cut corners on our health YO!  After all, we got health care to take care of us when we get sick and old right?  RIGHT???
6. Yes, spending time at home watching TV and sucking on frozen foods.  That’ll save money – boo ya!
7. After a long day of hard work, Jerome deserves to sit in front of the tube (which he bought with the $600 tax return) rotting for five hours while eating his canned foods all in an effort to *gasp* save money!  Good for YOU Jerome!  Never mind more productive things like investing, self-improvement, or picking your nose with your toe (all of which is more productive).
8. What’s a newspaper?
9. Do they sell TVs and frozen and canned foods online?  If so, that makes sense.

Marketing:

1. They should’ve SEOed for “cheap frozen cereal” and “cheap canned cereal”.
2. Get your marketing on NOW   Think about it, with everyone else cutting their marketing department, that’s only thinning the competition in the marketplace which also means cheaper advertisement/marketing and more eyeballs.  Umm, duh?
3. Right, buy a teddy bear and get a razor blade for free no longer works.

For more Todd Hale fun, visit him at Nielsen Wire.

Raymond