www.Biz2BizNWA.com 33
Positioning Your
Recession-proof
Products
A November 2009 study reported in marketers because of their higher spend-
MediaPost Communications shows the ing power,” says Dr. Val Srinivas. “While
recession will have lasting effects on Ameri- it is true that they have also curbed their
can consumers, now being pigeonholed spending, they are the most capable, both
into four consumer groups. psychologically and financially, to willfully
The study, “Marketing to the Post-
resurrect their past spending patterns.”
Recession Consumers” by Decitica, ad-
Most are men in the 60s with an income
dresses the way American consumers have
greater than $75,000.
internalized the recession experience. It’s Apathetic Materialists –– the least
particularly relevant in developing position- changed by the recession, this group has
ing and marketing, merchandising and not embraced the new frugality to the same
advertising strategies. extent, and don’t particularly find price com-
The study’s principal, Dr. Val Srinivas,
parison to be satisfying. Overwhelmingly
claims marketers need a “fresh lens
men in their 20s, they represent 22% of the
through which to view consumers in the
population. They are single with recession-
post-recession world.”
driven limited disposable income.
There are four distinct consumer seg-
What makes this research particularly
ments emerging from the recession accord-
unique, says the report, is the examination
ing to the study:
of consumers’ self-efficacy –– the belief
Steadfast Frugalists –– are committed
in one’s abilities to successfully achieve
to self-restraint, engaging in prudence with
certain outcomes–– in practicing spend-
unequivocal enthusiasm no matter what the
ing restraint. Specifically, this research
economy. They make up about one-fifth of
concludes that:
American consumers (mostly women) and
• The effects of the Great Recession on
cross all income and age groups. “Market-
consumer behavior are so profound that
ers will find this group to be the most chal-
many of the assumptions underpinning
lenging, as they are the least brand-loyal
consumer segmentation are no longer
and most likely to discount marketing.
valid.
Involuntary Penny-Pinchers –– make
• Marketing strategies that do not fully
up about 29% of the population and have
recognize the diversity of consumers’
been the most severely affected by the
recession experiences won’t have the de-
recession – financially and emotionally.
sired potency in the post-recession world.
Forced to embrace thrift like never before, • Many have accepted this radical
they include households with incomes of change as the “new normal,” and not just a
less than $50,000. Right now they don’t cyclical phenomenon.
behave much differently than their Frugal
• The recession has caused a pro-
counterparts, but they don’t find the penny-
found, deep-rooted change in consumers’
pinching experience all that fun.
spending habits in favor a more restrained
Pragmatic Spenders –– “Pragmatic approach.
Spenders are the most attractive group for
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