Lessons from the Recession le - 4imprint Learning Centerinfo.4imprint.com/.../uploads/1P-02-0410-Lessons-from-the-Recessio… · Lessons from the Recession’s Most Successful Businesses

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copy 2010 4imprint Inc All rights reserved

Lessons f rom the Recess ion

4imprintcom

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ers

copy 2010 4imprint Inc All rights reserved Blue

Pap

ers


Lessons from the Recess ionrsquos Most Successful Bus inesses

In his classic novel ldquoDon Quixoterdquo author Miguel de Cervantes said it best ldquoTo be

prepared is half the victoryrdquo

Itrsquos also half the battle As we build our business we hope for success and prepare

for the futuremdashwe prepare for the next big idea for the latest technology just

around the corner for the changing demands of our consumers Unfortunately

preparation for the future often doesnrsquot account for major unforeseen events

like natural disasters or the recent worldwide economic recession And sometimes

the bigger picture vision of the future eclipses the smaller more mundane details

like the basic b-school tactics needed to build a business initially

If this recession has taught us anything it has served to remind us

that these tactics are also required to sustain a business regardless of

economic climate The proof can be found in the handful of businesses

that have not only walked away from the battlefield of the last two

years relatively unscathed but are actually better off than before with

new investments new products or increased sales These businesses all

have one thing in common They were successful before things went

south they were positioned and prepared to forge ahead

Itrsquos time to get back to basics Take a few hintsmdash10 to be exactmdashfrom

the recessionrsquos most successful businesses to grow and sustain your own

business well into the future no matter what the future may hold

1 Bui ld a strong brand with loyal fo l lowersA brand is not just a logo Itrsquos not just a tagline a storefront a color palette

a brochure or a spokesperson A brand is an emotion or perception held by

someone outside of your business that describes the experience of buying your

product or using your service Businesses that understand this and successfully

relate to customers on an emotional level will likely find loyalty in customers who

buy (and buy again) and who recommend a brand to anyone willing to listen

Perhaps the best example of a business that ldquogetsrdquo branding is Applereg Apple is

one of the most recognizable brands in the world with one of the most vocal and

fiercely loyal customer bases This customer base is directly responsible for the

46 percent profit increase in Applersquos 2009 fourth-quarter and its revenues that

reached upward of $10 billion1

1 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones

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In fact Apple CEO Steve Jobs himself is quoted as smugly

saying ldquoRecession What recessionrdquo as the fourth-quarter

numbers were announced2

If you ask branding expert and author of the book ldquoEmotional

Brandingrdquo Marc Gobe why Apple is so successful he will tell

you that itrsquos got little to do with products

ldquoWithout the brand Apple would be deadrdquo says Gobe

ldquoApple is about imagination design and innovation It goes beyond commercerdquo3

In an interview with Wired magazine Gobe explains that successful emotional

brands like Apple have been created in part with three very specific approaches4

bull The human factormdashThere is a strong humanistic corporate culture and

a strong corporate ethic Apple makes it clear that its brand and its

products are about people and community Apple aims to empower

people with technology and gives to like-minded causes such as donating

computers for education

bull A unique identitymdashFonts logos language and style are unique to the

brand and consistent in all communications across an extended period of

time Applersquos modern minimalistic styling and geeky-cool attitude is just

as apparent in ads as it is on its Web site and in its actual products like

the Mac operating system the iPhonetrade or the Macbooktrade

bull RelationshipsmdashThe business makes an ongoing effort to engage with

consumers and build trusting relationships Apple achieves this not only

in creating products that are built around people but in fostering a

community with a cult following Customer loyalty programs industry

blogs marketing efforts that build buzz and perks unique to Applersquos

products are all examples Theyrsquove succeeded in giving consumers the

sense that Apple canrsquot fully be understood until itrsquos experienced and that

itrsquos in this experience that Apple brings people together

| Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt

2 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones | Cult of Macrdquo Cult of Mac | The Mac the IPod the IPhone - and the People Who Love Them 19 Oct 2009 Web 06 Apr 2010 lthttpwwwcultofmaccomapple-laughs-at-recession-sells-record-numbers-of-macs-ipods-and-iphones19035gt

3 Kahney Leander ldquoApple Itrsquos All About the Brandrdquo Wired 04 Dec 2002 Web 02 Apr 2010 lthttpwwwwiredcomgadgetsmaccommentarycultofmac20021256677gt


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There are additional components that successful brands like Apple have honed in

on such as

bull RelevancymdashThey offer products and services that connect to what

audiences deem important

bull AuthenticitymdashThey deliver on the expectations of consumers while

creating a brand product and services that might be rivaled but

definitely not mimicked

bull Thought leadershipmdashThey simultaneously focus on the demands of the

industry and customers in the present while identifying and creating

solutions to the demands of the future

A solid brand canrsquot be built overnight but if thoughtful care is put into

building it your business will develop an asset that canrsquot easily be lost

with the stock marketmdashthe power of emotional connections created by

successful brands is priceless

2 Def ine your niche and adjust as necessaryCF Martin and Cotrade has been manufacturing instruments since

1833mdashthey are the worldrsquos oldest-surviving instrument maker

and the United Statesrsquo largest producer of acoustic guitars

Martin Guitarstrade as the brand is most commonly referred to in

the US is known for instruments that sound good and look

good Many of its instruments also have a price tag to match

That was however until the economy dipped5

Previously Martin had defined one of its niches as an elitist

group of musicians and collectors but in 2009 found that this niche stopped

buying at the rates they once did People stopped spending So Martin identified

a new nichemdashmusicians and discerning guitar enthusiasts on a budgetmdashand

created a new product a guitar with the tonal quality the manufacturer is known

for but with a

bare-bones design that skimped on decoration while saving on production costs

The resulting guitar the Series 1 retails for around $1000mdasha veritable steal in

the world of guitars The result Orders surged worldwide and the Series 1 has

been permanently added to Martinrsquos line of inventory6

5 Smith Kimberly ldquoCase Study Lessons From Martin Guitars Three Ways to Survive a Downturnrdquo MarketingProfs Marketing Resources for Marketing Professionals 26 Jan 2010 Web 05 Apr 2010 lthttpwwwmarketingprofscomcasestudy164gt


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Any business knows that its audience or its overall market needs to be defined

before any business or communications goals can be accomplished Itrsquos also known

that in offering or marketing products to a very specific segment a business or

particular product stands a better chance of success Itrsquos a successful business

though that realizes segmentations used to identify niches can change as the

priorities interests or needs of the individuals in that segment change These

businesses strategically build their products services and marketing plans to be

adaptable and to truly be of value and relevancy to customers no matter what

Allen Weiss founder of MarketingProfscom suggests beginning the

segmentation process by identifying a niche This can

be done by looking at the benefits offered by different

groups of customers and then separating them out based

on whether there are groups of customers who would care

about different clusters of these benefits7

Weiss then suggests basing segmentations off of usage

application and prior experience with the product category

brand loyalty buying situation and lifestyle8

ldquoYou will know that you have a good segmentation if the customers in the

different segments make tradeoffs differentlyrdquo says Weiss9

You also know your business has identified good segmentation and subsequent

niches if the segments are measurable and they are reachable by numerous

channels Good niches are sizeable and sustainable and often have needs that

arenrsquot being met by brands or products elsewhere

3 Know your industryRemember how just before the economy got really messy fuel prices skyrocketed

to record-setting highs So does Ford Motor Co In fact the entire automotive

industry took note as consumers abandoned gas-guzzling SUVs in droves for more

fuel-efficient compact cars and hybrids Foreign automakers for the first time

even shifted much of their focus on developing cars to meet this new demand

Recognizing a trend not just in consumer buying behavior but in the entire

industry Ford stepped up to the plate and became one of the first American

car companies to actively seek ways to reduce emissions and increase the fuel

7 Weiss Allen ldquoHow to Segment Marketsrdquo MarketingProfs Marketing Resources for Marketing Professionals 01 Mar 2005 Web 06 Apr 2010 lthttpwwwmarketingprofscom5weiss8aspgt



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efficiency of its entire line up10

Additionally it has been speculated that the

grant money Ford was able to secure to explore

the technology required to make these efforts

possible provided a cushion that later aided them

in becoming the only car company to refuse bailout

money from the US governmentmdashdeeming it

unnecessary Indeed Ford sales in December of 2009

were up 335 percent from 200811

Knowing your businessrsquos industry isnrsquot about keeping up with the Joneses Itrsquos

about securing the information that will allow your business to offer competitive

products and services differentiate provide quality customer service select new

locations and learn from the mistakes of othersrsquo

To know your industry your overall marketing strategy should include plans

to monitor competitors and stay abreast of industry news through respected

industry publications blogs local and national news and participation in

professional associations Set up Googlereg alerts to monitor keywords or phrases

of your industry and the names of your tops competitors in addition of course to

your own name and team members

4 Understand your customersIn 2001 Leonard Lauder chairman of Esteacutee Lauder Companies noticed

somethingmdashlipstick sales were on the rise while the sales of other types of

cosmetics soured He watched this trend hold true over a course of a few months

as consumer spending dipped worldwide and developed a theory that has

since been dubbed by economists as the Lipstick Effect The theory asserts that

consumers donrsquot forgo luxury purchases in a recession or economic downtown

completely but rather they purchase smaller luxuries like designer lipstick Now

and after further research with the latest downturn economists say that the sale

of lipstick may actually be an indicator of the economy12

While interesting and it is interesting the theory is not the entire lesson of

Lauderrsquos original observation Lauder knew his customers well enough to

10 Walsh Dustin ldquoUS Needs to Value Manufacturing Base Then Rebuild It Bill Ford Saysrdquo Detroit News and Information - Crainrsquos Detroit Business 16 Feb 2010 Web 06 Apr 2010 lthttpwwwcrainsdetroitcomarticle20100216FREE100219906gt

11 ldquoAuto Sales - Markets Data Center - WSJcomrdquo Business News amp Financial News - The Wall Street Journal - WSJcom Web 06 Apr 2010 lthttponlinewsjcommdcpublicpage2_3022-autosaleshtmlautosalesEgt

12 Schaefer Kayleen ldquoHard Times but Your Lips Look Greatrdquo The New York Times - Breaking News World News amp Multimedia 01 May 2008 Web 06 Apr 2010 lthttpwwwnytimescom20080501fashion01SKINhtml_r=1gt

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understand their buying habits Once he understood these buying habits he was

able to predict future trends and make correlations that directly affected the

product lines When the sales of lipstick edge up Esteacutee Lauder expands its lipstick

offerings to include new colors and new formulations and it even develops or

expands partner productsmdashsuch as lip conditioners lip liners brushes glosses and

plumpersmdashthat can enhance the lipstick experience13

The lesson here is that businesses canrsquot just draw the line at

understanding basic demographics of customers and market

segments instead businesses

bull Need to know customers well enough to identify buying

habits and predict patterns Know what motivates them

what discourages them what they want versus what they

need and what they can afford versus what they are willing to pay

bull Need to be proactive in conducting ongoing market research to get

this information and to cultivate relationships with customers by really

listening to customers through your own customer service channels

through social media monitoring and frequent surveys

bull Use this information to take advantage of timing to build relationships

and continue to meet the demands of customers before the demand is

actually voicedmdasha critical factor in satisfying customers and staying a cut

above the competition and forever relevant

5 Value your customersJust as important as understanding customers is valuing them Not only is it the

right thing to domdashbecause without them you wouldnrsquot existmdashbut customers

that feel as if their business is appreciated are more likely to become loyal brand

followers

In an industry rife with bankruptcies and layoffs that resulted in fewer flights

more cancellations and disgruntled passengers Southwest Airlines refused to

budge from its core beliefmdashthe value of customer service

ldquoThe mission of Southwest Airlines is dedication to the highest quality of

customer service delivered with a sense of warmth friendliness individual pride

and company spiritrdquo14


14 ldquoSouthwest Airlines - The Mission of Southwest Airlinesrdquo Southwest Airlines Web 10 Apr 2010

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The airline coped with the recession and past downturns by cutting costs where it

could demanding a consistent management style from employees and perhaps

most importantly it continued to invest in training programs for staff that

instilled and encouraged the positive attitude and customer focus the airline is

known formdasha program that requires $3 million in annual expenditures plus the

costs of upkeep and staffing of a 40000 square foot training terminal15

Customer service training was just the beginning While other airlines began to

search for every possible source of additional revenue like charging additional

fees for in-flight meals and tacking on services fees for checked baggage

Southwest continued to provide complimentary meals to certain ticket holders

and allowed all passengers to check two bags for free They refused to sacrifice

customer service for the bottom line While these may seem like small gestures

travelers appreciated them all the same After announcing it had seen a profit

throughout the recession and into the fourth quarter of 2009 its 37th straight

year of posting a profit

Southwest believes that it was able to maintain and grown business when other

airlines faltered based largely on these seemingly small gestures mdashgestures that

were once standard for all airlines but are now seen as extras in

the eyes of consumers16

This is not to say that Southwest wasnrsquot forced to take action to

reduce costs and seek revenue elsewhere The airline secured a

credit line froze certain hiring practices and implemented an

additional fee for unaccompanied minors and pets Southwest

strategically chose what to cut and where to charge extra in order

to stand behind its mission and in doing so filled a gap within the industry that

made customers feel valued and appreciated17

So what can your business do to get back to the basics of showing your customers

how much they mean to you Here are a few ideas

bull Make sure your customer service policy is in writing and easily accessible

to employees and customers on site and online This helps employees

know what is expected of them but also reassures customers of what

your business stands for and how they can expect to be treated

lthttpwwwsouthwestcomabout_swamissionhtmlint=GFOOTER-ABOUT-MISSIONgt15 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print16 Koenig David ldquoSouthwest Airlines Posts 4Q Full-Year Profit - ABC Newsrdquo ABCNewscom 21 Jan 2010 Web

10 Apr 2010 lthttpabcnewsgocomBusinesswireStoryid=9621566gt17 Taylor Chris ldquoRecession Survivors Training to the Rescuerdquo T+D Oct 2003 28-34 Print

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bull Give your employees authority to resolve customer service issues If

employees donrsquot have the power to make it right customer service

complaints are a moot point While not all employees are able to

change a process or a policy all employees should be able to make the

promise that someone will review the customerrsquos concern Employees

should also be given the ability to offer vouchers discounts free items

or replacement products as a gesture to show customers that their

happiness is important

bull Similarly know that happy employees equal happy customers Do what

you can to help employees to educate and train employees and to foster

a sense of pride in them Offering a sense of security when possible helps

toomdashit should be noted that Southwest has never not

once laid off an employee Ever

bull Develop a measurement of outstanding customer

service and reward employees who get it right

bull Listen to customers Donrsquot just wait for them to offer

up opinions or voice unhappiness make sure there are suggestion boxes

on site contact information on your Web site or a customer service-

specific phone number andor e-mail for assistance Adding virtual

customer service chats is an increasingly popular effort many retail

businesses are trying on for size too

bull Give a gift for no reason Thank-you notes are often hard to come by

these days let alone a personalized one from a business that simply

shows that someone took the time to say ldquoThanks for your business We

appreciate yourdquo When you can send a token of appreciation with this

note for added warm-fuzzy effects

bull Build relationships This part will come easy if you listen to your

customers and resolve issues by meeting the needs of your audiences

Once they see that your business values them and is invested in them

theyrsquoll be more likely to be engage through repeat purchases or positive

word of mouth and social media interactions

6 Never stop invest ing in innovat ionWhen customers quit buying itrsquos practically a knee-jerk response to halt spending

wherever possible But the recessionrsquos most successful businesses resisted this urge

Instead they found valuemdashand financial sustainabilitymdashin spending Yephellipthatrsquos

right spending

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Not just willy-nilly spending though Strategic spending Cutting back in certain

areas and reallocating funds to invest in ideas that generate new income and

position business for a recovered economy

Cisco Systems Inctrade decided to go ahead with plans to acquire camcorder maker

Pure Digital Technologies Inc for $590 million in March of 2009 followed by a

$34 billion offer for video conference company Tandberg ASA in September

Then it opened up its wallet again in October to snag Starent Networks Corp

a wireless equipment manufacturer for $29 billion Whatrsquos

more Cisco expanded its internal start-ups too recognizing

the potential to generate $1 billion per year Thatrsquos some major

spending for a recession yet Ciscorsquos profit rose 23 percent by

2010 and stock went up 53 percent18

Robert Lloyd senior vice president of Cisco shares that economic downturns

often provide immense opportunity While everyone else is cutting back and

saving businesses that have the courage to continue to invest in innovation

can do so with relatively little competition or with little to lose Additionally

businesses with the courage stand to take advantage of a new market share that

didnrsquot exist before but was created with the new economic situation19

ldquoIt takes the courage to make decisions that perhaps good economic times allow

us to postponerdquo says Lloyd ldquoToday is about the courage to act to not only cut

but to continue to buildrdquo

Lloydrsquos sage advice to businesses everywhere is to always prioritize exactly

where the growth opportunities are especially in times when sales and leads

begin to cool20

ldquoYou prioritize how you can shift resources today towards those opportunitiesrdquo

says Lloyd ldquoYou prioritize how your strategy needs to be reinforced Or maybe

double-down in those areas that just make sense And you donrsquot get distracted

with the view that everythingrsquos about cuttingrdquo21

18 Worthen Ben ldquoCisco Plumbs Lessons From Dot-Com Bust - WSJcomrdquo The Wall Street Journal - WSJcom 08 Mar 2010 Web 04 Apr 2010 lthttponlinewsjcomarticleSB10001424052748704269004575074181146076528htmlKEYWORDS=recession+lessonsgt

19 Lloyd Robert ldquoSuccess During a Recessionrdquo Interview by Peter Shaplan Audio blog post NewsCisco Podcasts Cisco 21 Jan 2009 Web 07 Apr 2010 lthttpnewsroomciscocomdllspodcastsciscocast_exec_lloyd_012109htmlgt



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There are other efforts businesses can take to create an environment that fosters innovation in any economic climate

bull Leadership should expect and support creative thinking Without support

from the top down employees may lack motivation to seek the next big

idea and the funds that are often required of innovation may be hard

pressed to find if not allocated or approved by the C-Suite

bull Understand that perfect is the enemy of innovation Employees need to

know that not every idea is going to work and thatrsquos okay Demanding

perfection in each new idea will make people less likely to create and

unwilling to take risks for fear of failure

bull Know that innovation is a team effort even after the

support from leadership is secured Consider holding team

brainstorming sessions on a regular basis to share and build

off of ideas that could lead to better processes products or

services or new ones altogether

bull Encourage professional development in a variety of fields

Donrsquot limit learning to strictly areas that relate directly to

an employeersquos job Allow them to explore and expand other

skills sets that broaden experiences and offer an alternative

viewpoint or a new knowledge base Well-rounded employees that have

a wider well to draw from hold the potential for greater innovation

The business world technology and consumerism are ever-changing What works now may not work tomorrow and if your business fails to seek new ideas even when times are tough it may fail altogether

7 Be indispensible In good times the economy can support a number of different businesses offering

the same services and products but in not-so-good times the environment can

shift to one of too many businesses and not enough customers Itrsquos the businesses

that become indispensible to the market and to its customers that will make it

through the gamut of economic climates like Ford Cisco Southwest and others

have done

Bestselling author and marketing expert Seth Godin explains in his book

ldquoLinchpin ndash Are You Indispensablerdquo that individuals need to make themselves

indispensable in order to survive in the new post-recession economy

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ldquoWe can all agree that the worker who puts widget A into widget B all day is a

factory workerrdquo says Godin ldquoBut I want to argue that someone who fills out the

same insurance form every day who plugs numbers into a spreadsheet every day

is a factory worker as well All of these jobs can be taught from manuals And

as soon as a job can be written down in a manual you can find someone else to

perform the task more cheaplyrdquo22

While his book is aimed at the individual his ideas really do transcend to

businesses as well Donrsquot be cookie-cutter donrsquot offer what everyone else offers

Innovation understanding customers knowing the industry and conducting

ongoing evaluation of customer demand all help to make a business

indispensible Doing so will provide the knowledge and resources necessary to

offer products and services customers simply cannot live withoutmdasheven when

they begin to spend less elsewhere

To make your business indispensable consider taking the following initiatives

bull Be dependablemdashBy becoming reliable a business is likely to find

customers and clients who return because

they have come to count on you

bull Stay connectedmdashKeep in touch with

customers and clients regularly Personal

notes are nice but even regular direct

mailings or opt-in e-mail marketing counts

Remind customers and clients that you are

there and why they do business with you

bull Refine and revisit the USPmdashYour businessrsquos unique selling proposition

like other factors discussed in this paper are subject to change based on

the economy competition or changing consumer habits Revaluate this

proposition to determine if itrsquos the message that needs to change or the

product itself

bull Be different be the best and dominate the market when things are

good so yoursquore the business people will come back to when the climate

changes

22 Key Stephen ldquoAre You a Linchpin An Interview with Seth Godin | Inventions and Product Ideasrdquo AllBusinesscom 08 Mar 2010 Web 10 Apr 2010 lthttpwwwallbusinesscomlabor-employmentworker-categories-factory-workers14060563-1htmlgt

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8 Involve staffThe old adage ldquothe whole is more important than the sum of its partsrdquo still rings

true A businessrsquos employees are important players in its success and itrsquos important

that they feel valued secure and engaged

If staff cuts are inevitable businesses need to be mindful of the morale of those

still hard at work As mentioned previously happy employees equal happy

customers and customers are ultimately the driving force that determines success

or failure in a recession

Additionally a recent survey conducted by workforce solutions provider Kelly

Services found that businesses with positive management strong morale and

active communications have succeeded in making their workforce more engaged

and more loyal in spite of the uncertainty caused by falling profits and layoffs23

Involve staff by being as open and honest as possible about the financial situation

of the businessmdashbe sure to always present this information with strategic plans

for moving forward which will help focus everyonersquos efforts and quell uneasiness

if the outlook isnrsquot too rosy

Be sure that staff members are shown the impact of their work on the entire

businessrsquos bottom line This helps foster a sense of pride but also can serve

to reiterate the importance of an employeersquos role which should boost

motivation and morale

Lastly reward staff as a way of involving them Reward success with small

gifts like gift cards or branded items or larger gifts like bonuses or extra

vacation time Also make sure that your business is creating opportunities

for everyone to learn from failures Focus on what the business is doing to

ensure a different outcome next time or how your business is recovering

from a failure Doing so will help foster innovation as discussed previously

and it shows employees that there is always value in their efforts

9 Recognize that everything is temporary Nothing is permanent Cisco is great example of taking this knowledge and

running with it It survived the economic downturn of the dot-com bust in 2001

and then took those lessons learned and applied them more recently with the

knowledge that the economic pendulum swings both ways You always have the

power to change a situation and knowing that everything is temporary should

23 ldquoKelly Services Inc - Employee Loyalty Rises During Global Economic Recession Kelly International Workforce Survey Findsrdquo Kelly Services Inc - Investor Relations 08 Mar 2010 Web 14 Apr 2010 lthttpirkellyservicescomreleasedetailcfmReleaseID=450036gt

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inspire your business to act thoughtfully and to aggressively stick to optimism in

rougher times

ldquoThe solutions that win over consumers today may well be the ones they hold

onto when the pendulum swings backrdquo suggests James Moed an economic

strategist24

Looking at business from this perspective may also provide an equally optimistic

employee morale or perceived customer service by reiterating your dependability

to customersmdashldquoWe will always be here for yourdquo

So if your businessrsquos sales slouch or the demand slows keep in mind what every

successful business of the recession did not domdashthey did not stop in their tracks

and throw up their arms in surrender Instead they played the hand they were

dealt by knowing that things will change as they always have so itrsquos best to be

strategic now in order to prepare for what lies ahead

10 Prepare for whatrsquos around the cornerAs we build our business we hope for success and prepare for the next big idea

While being mindful of the basic b-school tactics of establishing a business yours

will be better prepared for looking around the corner and aheadmdashwhether it is

sunny skies or rainy storm clouds

These ten tips have hopefully provided some inspiration for

getting back to basics and moving forward with an aim for

success and the need for sustainability The recessionrsquos success

stories were thoughtful about their brands their products

and their people long before the recession hit When it did

hit they didnrsquot change much They did what they knew

worked They found victory in preparation and so can you

24 Moed James ldquoReframing Recession Lessons from the Potatordquo Criticaleye The Network of Leaders Web 19 Apr 2010 lthttpcriticaleyenetinsights-detailcfmid=633gt

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Lessons from the Recess ionrsquos Most Successful Bus inesses

In his classic novel ldquoDon Quixoterdquo author Miguel de Cervantes said it best ldquoTo be

prepared is half the victoryrdquo

Itrsquos also half the battle As we build our business we hope for success and prepare

for the futuremdashwe prepare for the next big idea for the latest technology just

around the corner for the changing demands of our consumers Unfortunately

preparation for the future often doesnrsquot account for major unforeseen events

like natural disasters or the recent worldwide economic recession And sometimes

the bigger picture vision of the future eclipses the smaller more mundane details

like the basic b-school tactics needed to build a business initially

If this recession has taught us anything it has served to remind us

that these tactics are also required to sustain a business regardless of

economic climate The proof can be found in the handful of businesses

that have not only walked away from the battlefield of the last two

years relatively unscathed but are actually better off than before with

new investments new products or increased sales These businesses all

have one thing in common They were successful before things went

south they were positioned and prepared to forge ahead

Itrsquos time to get back to basics Take a few hintsmdash10 to be exactmdashfrom

the recessionrsquos most successful businesses to grow and sustain your own

business well into the future no matter what the future may hold

1 Bui ld a strong brand with loyal fo l lowersA brand is not just a logo Itrsquos not just a tagline a storefront a color palette

a brochure or a spokesperson A brand is an emotion or perception held by

someone outside of your business that describes the experience of buying your

product or using your service Businesses that understand this and successfully

relate to customers on an emotional level will likely find loyalty in customers who

buy (and buy again) and who recommend a brand to anyone willing to listen

Perhaps the best example of a business that ldquogetsrdquo branding is Applereg Apple is

one of the most recognizable brands in the world with one of the most vocal and

fiercely loyal customer bases This customer base is directly responsible for the

46 percent profit increase in Applersquos 2009 fourth-quarter and its revenues that

reached upward of $10 billion1

1 Kahney Leander ldquoApple Laughs At Recession Record Profits on Record Sales of Macs and IPhones

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on such as

























for but with a







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followers









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right spending

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begin to cool20









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have done




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product itself



changes


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rougher times



strategist24





















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on such as

























for but with a







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followers









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Blue

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right spending

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Lessons from the Recession le - 4imprint Learning Centerinfo.4imprint.com/.../uploads/1P-02-0410-Lessons-from-the-Recessio… · Lessons from the Recession’s Most Successful Businesses