Don’t Be A Grinch

While the holiday spirit is merry and bright there are always Scrooges and Grinches who see the worst in everything. Don’t let that happen to you! There’s an old saying in the news business that “if it bleeds, it leads.”

Basically, this explains that bad news grabs the headlines and gains attention quicker than something uplifting. The negativity and fear found online on television, and on the radio wants to keep you scared. Why? Well, if you are full of worry then you will you keep coming back to that media for more information. Headlines and outlandish claims about a pandemic or doomsday financial predications are commonplace, even on trusted networks. This worry can easily creep into your business. What should you do if some of these claims do come true? How should your company respond if lockdowns happen or if customers stop coming?

This may sound counter-intuitive, yet a company should market more when things are tense, or business has slowed down in pace. No brand has ever grown by cutting its spending. Repeat – no brand has ever grown by cutting its spending! This isn’t an opinion; it is a proven fact. “In the 1920s, Post was the category leader in the ready-to-eat cereal category. During the Great Depression, Post cut back significantly its advertising budget and rival Kellogg’s doubled its advertising spend, investing heavily in radio and introducing a new cereal called Rice Krispies, featuring “Snap,” “Crackle” and “Pop.” Kellogg’s profits grew by 30% and the company became the category leader, a position it has maintained for decades,” wrote Brad Adgate in Forbes.

Believe it or not, in the middle of a depression when companies are closing, is an amazing time to advertise. Repetitive and consistent branding sets your business apart from the competitors. When companies cut back their ad spend it is easy for them to lose their “share of mind” for current and possible future sales. The old saying is true, “out of sight, out of mind.” An increase in the share of voice can lead to an increase in the share of the market.

A downturn, recession, or even lockdown is the perfect opportunity to set a company apart. In the 1990-91 recession, Pizza Hut and Taco Bell took advantage of McDonald’s decision to drop its advertising and promotion budget. As a result, Pizza Hut increased sales by 61%, Taco Bell sales grew by 40% and McDonald’s sales declined by 28%.
Doom and gloom may be all around in the news, but that isn’t really news. We all know bad things happen. The world will always have troubles. You didn’t start your company to close down. One reason over 80% of small businesses shut their doors within 5 years is that they stop marketing. Don’t let the negativity in the news prevent you from growing. Don’t be a Grinch!