Troubled Times Worldwide
...As the media tell us: the world is in BIG trouble. Did you know?
Banks come crumble down pretty much every day, consumers change spending behaviour, CFO?s are faced with the grim consequences of the credit crunch...
For global stock exchanges, national economies, investors, consumers — in short for ALL of us: fun times are over!
As wise men say: strategy adaptation is inevitable to survive. So what exactly should be adapted? Armies of number crunchers, crisis-consultants and fortune tellers have been thinking about this question. After analysis of leading existing corporate strategies out there, most of the advisers say: Prioritise profitability above growth; Watch Your Cash, Defend It.
And how to defend that cash? One of the approaches can be: ‘Freeze or reduce marketing costs first, ask questions later?.
Ouch, so ‘fun times? are really, really over even for us, ROI efficient online marketeers? ...And where will marketeers continue to find customers if funds will be limited, budgets frozen?
And are the consumers that will visit our website worth as much as they used to be in monetary terms?
Consumer sentiment indices have fallen sharply around the world — 30% from their 2007 peak.
The Q4 2009 prediction: saving will be more attractive than consuming. Luxury will be stopped or reversed for many consumers. Retail prices will be falling, especially in non essentials.
OZON.ru is fairly lucky. We?re not under pressure and should calmly assess where to go next, with enough money in the bank. We could even benefit from the storm, as some of our competitors are facing hard times. Last week, one of them declared bankruptcy in Russia.
Still, this crisis is a good and inevitable opportunity for OZON.ru to rethink our consumer marketing strategy. Sense check.
Shall we shift from luxury products (iPhones) to essential products (Iphones)?
Shall we keep doing business as usual? IS there any need to change a winning team? Will Russia not suffer from the crisis as much as other nations?