For various reasons, I have been watching much more TV than I would normally be doing when rushing about work wise. The experience has slightly depressed me - but also given me a lot to think about.
It seems to me that as the economy - and things generally - has got tight and tighter, instead of brands and TV companies focusing on innovating and finding new and exciting offers to attract tight resources, they have succumbed to a level of standardisation and safety. The world is becoming duller and less exciting - and we need excitement and new ideas to get us out of the tight conditions we are in. We need to focus on new ideas to get growth.
For brands and retailers it seems that either price or sameness/ safety is the norm.
It struck me as interesting when it comes to retailers, for example, as all the ads are screaming about how cheap they are, and how they are cheaper than the others. But at the same time Tesco, the largest retailer in the UK has been losing share but they don't quote price as the issue but the fact that they have not been investing enough in stores and the shopping experience and cutting in-store staff levels which has meant that there is less service and assistance. The plan to get back growth is going to be about investing in better stores, service and experiences.
Price is the order qualifier for them. They need to be seen to offer a decent and competitive price, but when all the market competition are more or less the same price then it is the added value that determines who wins or loses. It also determines if you can make money or not. Better experience, better service, easier and more convenient process and things that add to the decision mailing process for consumers.
It seems to me that (in the UK anyway) that you never pay full price for anything anymore. Everything is on offer, even eating out. The problem is that to protect margins brands and retailers are cutting back in quality, volume and so on. This cannot be the way to succeed.
It is time to be bold. It is time to innovate. Consumers seek value and will only allocate tight resources to things that give them that. But slashing price and quality is not value. It could be suicide. This is the time to break out and break through.
For more thoughts on importance of innovating not cost cutting out of a tough time read my other post: click here
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