03/31/2020
LESSONS FROM THE GREAT DEPRESSION...
Leading up to the Great Depression of the 1930s:
Two companies dominated the market for packaged cereal.
Kellogg and Post.
Breakfast cereal was still a relatively new concept.
Most of the world didn’t see 'ready made' cereal as a real alternative to oatmeal or 'cream of wheat' until the twenties.
So, when the Great Depression hit, no one knew what would happen to consumer demand.
Post did the predictable thing: It reined in expenses and cut back on advertising.
But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies.
(Snap. Crackle. Pop!)
By 1933, even as the economy tanked, Kellogg’s profits had risen almost 30 percent and it had become what it remains today...
The industry’s dominant player.
Here's the punchline...
How many BILLIONS of packets of cereal have been sold over the last century as a result of that single proactive decision?
I'm not suggesting that you drain your coffers on advertising.
But...
How you choose to react to whatever happens 'next' will have ramifications for your business NOT JUST for the next six months...
But for YEARS to come.
These are scary times. You can give up -- (I feel like it too sometimes) or you can fight to stay alive and thrive in the new world rises from the ashes of the Covid-19 pandemic. You can let fear paralyze you. Or you can use this time to grow, pivot, and create a business which will enable you to thrive in the post-pandemic world.
If you choose the latter, reach out to us. We're the Lifeline for Struggling Businesses. We're Lifeguard Business Services.
