Let’s take on 2023

We need businessmen and marketers to be courageous risk takers, growth creators and driving positive confidence that growth will happen

• It’s the time to create and communicate the real value of your brand to your consumer

The Cassandras are in full flow. Pessimism for what lays ahead in 2023, predictions of falling consumption, research companies churning out data at a rate to substantiate the dire predictions of what businesses are likely to face. Not one of it is pretty. The prophecies of doom and gloom are all pervading. 

So how does one as a businessman and a marketer approach this situation? What can we as professional marketers and enterprising businessmen do to ensure we navigate the stormy waters of 2023 and stay firm on our growth path?

I have a few myths for us to look at and some reflections countering the myths to help us on our journey in 2023.

1.Data shows that consumers have rationalised their purchases and are only buying bare essentials due to shrinking purchasing powers. Reflection – most consumers buy most discretionary items on impulse, while essentials are by rote and listed, discretionary items such as indulgence products – leisure, beauty, grooming are need based, habit based and sometimes mood based purchases. There is a myth that in a market where consumers have significant constraints placed on purchasing power will result in the end of ‘indulgence’ purchases. In global markets the learning is even at times of adverse economic headwinds consumers see ‘indulgence’ impulse purchases as a “health and wellness” necessity. At times of anxiety and stress a little indulgence can have a big impact. There could be a ‘chill’ in consumption not a ‘freeze’. The task for such brands and businesses is to continue to stay top of mind and relevant.

2. Prices need to be cut to make products affordable. Reflection – Price cuts may generate short-term sales but could severely impact your brand both from a profitability context as well as a sustainability context. With inflationary pressures mounting, adding value to the brand is the only way forward. Finding ways to reframe the value of your brand through smart insightful communication is one way out of this dilemma.

3. Let’s bundle our product offerings to provide better value. Reflection – consumers don’t buy purely on deals in most categories, they buy on needs and value. It’s time to really focus on the value your product/brand provides. For e.g. a young father I know was saying that every weekend he buys chocolates for his little son and that irrespective of whatever happens he will continue to do so – he values the joy those chocolates bring to his son’s weekends. The value of a brand lay beyond product attributes. Is your brand really connecting to needs that are beyond tangible product attributes? It’s time to get into your brand DNA and evaluate its true value to consumers. Do you really know the intangible value your brand provides and are you communicating that regularly is the key question to answer?

4. Let’s cut down on communication costs as it’s expendable. Reflection – the key thing that connects a consumer to the brand is the communication. This is the time to increase our engagement with the consumer and now more than ever the time to drive relevance and loyalty. Cutting communication is tantamount to cutting our chord with the consumer – and this consumer is our lifeline. And the engine of our growth. Do you want to navigate the stormy uncertain ocean without the power of the engine?

This is indeed the time for the real marketers and businessmen to stand up and be counted. Your acumen at brand building and loyalty creation are needed most, at this time of depressed markets and shrinking budgets. The best businessmen and marketers know that data is mostly retrospective – very rarely predictive. It can be used as an excuse to do nothing and cut value across the board. This can have drastic short term and medium to long term consequences for your business. Or it can be challenged to create new value and growth for your product and brand. 

The three key values that most differentiate the great businessmen from the good – creators, risk takers and confidence drivers. We need businessmen and marketers to be courageous risk takers, growth creators and driving positive confidence that growth will happen. And let’s communicate true value to our consumers, stay connected with their lives, build loyalty and indeed growth will happen. The foreboding data you see can become a self fulfilling prophecy or you, the really good business person can say “I am not settling for this. I am going to make things happen”. Let’s create fresh data. Let’s engage and convince the consumer of your value. Let’s take on 2023 and prove the Cassandras wrong. 

(The writer is Chairman and CEO of FCB kl.lk. He is a marketing communications expert with 20 years of experience in multi-national locations. He can be reached at [email protected].)