editor’s note Navigating Marketing and Business Plans in a Recession

As New Zealand grapples with the stark reality of a recession, it becomes increasingly imperative for supermarket brands and retailers to exercise caution and consciousness in their marketing strategies, communication, and business goals. The current economic climate demands an acute awareness of the challenges faced by consumers and a commitment to understanding their needs and aspirations. Brands and retailers cannot afford to be tonedeaf in their messaging and actions. Instead, they must adapt and prioritise empathy, compassion, and flexibility to thrive in these trying times.

The recession has put immense pressure on consumers and suppliers, significantly impacting their purchasing power and behaviours.

During such an economic climate, it is essential for brand owners and retailers to recognise that the customers they serve are facing heightened financial uncertainty and emotional stress. Their marketing messages should reflect an understanding of these challenges and be framed to provide solutions and be empathetic.

An aggressive marketing approach that often dominates the retail landscape during economic prosperity is one of the first aspects that must be toned down. In a recession, consumers are more cautious about spending, and the conventional methods of pushing products and encouraging impulse buying may not yield the desired results.

Brands and retailers must adjust their focus and prioritise building long-term customer relationships.

Attention Grocery Suppliers

This can be achieved by engaging in meaningful conversations, offering value-driven promotions, and demonstrating genuine concern for customers' well-being.

Transparency and authenticity are vital components of any communication, but they take on much more significance during a recession.

Be clear about your intentions, values, and actions. Consumers are more likely to support businesses that are honest about the challenges they face and their efforts to help their customers through these tough times.

In addition to marketing, business plans and goals must align with the current economic climate. Recessions are periods of rapid change, and consumer behaviour can shift drastically. Therefore, adaptability is paramount. Brands and retailers should reassess their product offerings, pricing strategies, and supply chain operations to remain competitive and meet the changing demands of consumers.

Innovation and creativity can play a pivotal role in thriving during a recession. Brands that can identify unique ways to offer value to their customers, such as providing costeffective options or introducing essential products and services, will be better positioned to weather the economic storm.

During a recession, the focus extends beyond immediate profit and encompasses social responsibility. Brands and retailers can demonstrate their commitment to the communities they serve by supporting local initiatives and assisting those most affected by the economic downturn.

The current economic climate serves as a critical wake-up call for the FMCG industry as a whole to be conscious about marketing and business plans. This is not a time for complacency or short-term gains but a period that demands empathy, adaptability, and responsible decision-making. By demonstrating a genuine understanding of customers' needs and embracing the changes required, brands and retailers can not only survive the recession but in effect build stronger, more loyal relationships with their customer base.

For those that remember the GFC or even the last recession, you will know that these times of crisis bring out the best and worst in people and companies.

Far better to be remembered as a company, a brand, a retailer, or an individual that cared, delivered on promises and adapted to the changing circumstances of the customer, and you'll still be around for the next crisis.

The Food and Grocery Council is an industry association for grocery suppliers providing members networking, events, industry information and strong advocacy. Contact us for information on the benefits of membership: raewyn.bleakley@fgc.org.nz

• Networking • Industry Updates

• Conference and Events

• Education and Training

• Advocacy and Law Reform www.fgc.org.nz

The NEW ZEALAND BEVERAGE COUNCIL is an industry association whose members cover all aspects of the non-alcoholic beverage market both in New Zealand and the export markets.

The Council members are spread throughout New Zealand and come together annually for a conference that covers industry issues and is addressed by international speakers. The organisation monitors product quality, sets standards for the industry and runs national competitions and awards.

PUBLISHER Tania Walters

GENERAL MANAGER Kieran Mitchell

EDITORIAL DIRECTOR Sarah Mitchell

EDITOR Caitlan Mitchell