Economic downturn provides opportunities
MANY OF us carry out business operations on the basis of 'if it ain't broke, don't fix it'. So, in some respects, recessions can be good for us in the way that they make us take stock.
Let us look at some of the changes in the market.
While the pub industry has a history going back many centuries, the sector has always managed to adapt to our changing habits and culture. And I'm sure it will continue to do so in the future.
Some of the fundamental principles of the hospitality industry have remained the same. One of these is that it must deliver an experience that is an improvement in some way on customers' everyday home environment.
Today, most people enjoy considerably more home comforts and affluence than in previous centuries - or even past decades for that matter. This has upped the ante for hospitality venues.
They still need to create environments that deliver a trade up from the experience at home. There are many factors that can influence this: comfort; design; entertainment; atmosphere; quality of product. Simply offering Sky TV is no longer an option.
Clearly defined customer base
In terms of your offer, it's important to bear in mind that in recessions we tend to get a polarisation in the marketplace - the poor get poorer and the rich become more discerning.
Consider Waitrose and Aldi supermarkets - Waitrose offers a focused quality of offer to a clearly defined customer base and, with a bit of fine-tuning to address current market trends, should continue to maintain its position.
Meanwhile, Aldi provides a streamlined value-for-money offer, with a style of operation that convinces shoppers they are getting both value and quality.
A similar effect is felt in the catering and brewing industries. In brewing, cask ale is catering for a clearly defined market category and is continuing to maintain a relatively strong market position, even when trading is tough, while some formerly popular premium lagers have lost theirs as a result of discounting.
Whitbread is a market-savvy operator and has recognised the need for these distinctions. Costa, one of Whitbread's brands, continues to grow its market (and profits) through a focused and added-value coffee offer during a time in which the competition is losing direction.
At the other end of the scale, its new Taybarn brand (positioned as the ultimate value-for-money eatery) is taking the market by storm.
The lesson for us all is that, instead of working harder to maintain our current position, the trick is to work smarter.
The starting point is to ensure there is a clear understanding of 'what your pub or brand offers' (proposition), 'who you do it for' (positioning) and 'why anyone should bother to visit or purchase you' (essence).
If you don't know the answer to these three critical marketing questions, try asking your customers for starters, then consider getting in the professionals.
Myles Pinfold is managing director of WPA Pinfold, a strategic branding and creative design consultancy with more than 25 years experience in the brewing industry.
