If consumer spending is destined to remain soft during a prolonged recovery and consumer behavior has changed in enduring ways, waiting out a return to the pre-recession, premium-driven consumer mind-set is not a viable strategy. Instead, marketers and retailers need to adapt to the new realities of frugal behavior and spending.
The result will be a step change in your overall marketing capabilities. You will learn to better influence shoppers all along the path to purchase — from home to store and in between. You will build your capacity for shopper marketing, capturing insights about consumers that you have never had before. You will align your marketing efforts shelf-back with brand advertising and promotional marketing, and you will address the right levers across the value equation — price, volume drivers, cost-efficiency — to enhance shareholder value. Those companies that can achieve this will be the winners in an era of new consumer frugality.
- Matthew Egol is a partner in Booz & Company’s global consumer and media practice and is based in New York. He focuses on growth strategy and sales and marketing effectiveness for clients in the consumer products and media industries.
- Andrew Clyde is a Booz & Company partner based in Dallas. He is the managing partner of the Dallas office and is the practice leader for the North American energy, chemicals, and utilities practice. He serves clients across these value chains, focusing on customer- and market-back strategy and operating model design.
- Kasturi Rangan is a principal with Booz & Company in Cleveland. He focuses on corporate and business unit growth strategies for automotive and other industrial companies.