Marketing the Frugal

ConsumerBy Jon El Kordi-Hubbard, Chris Dale, Dre

Campbell

Executive SummaryThis is a new age in our economy: consumers are focusing more on value then spending. Shoppers are considering frugality to be trendy Make frugality a habit Marketers fear that Frugality may be here to stay.

Consumer Frugality Recession has impacted the way Americans purchase goods. “Stretching Money” (Getting more bang for your buck) Cheap is Cool. Marketers need to develop deeper insights into the consumer.

New ConsumerMiddle class families have been effected the most by frugality (ages 25-35) Touting their frugality

Becoming a lifestyleNew consumers find the best deals Retail Industry will be permanently effected

Must lower their prices

How Consumer Frugality Impacts Marketing

Shopping out of their closetsEra of conspicuous consumption in America is overPeople are more disciplined in their spendingMarketers must redefine their brandsConsumers are suppressing spending urges

Making better use of their possessions

How Marketers Plan Successful Strategies

Marketers must make a deeper connection to the consumers Dollar General found original roots as an honest and casual brand

Listened to the customers (ult. Lowered prices) Must add a new dimension: fresh

To refresh the brand

Which Strategies are Likely to Fail

Adding value of price on a product of service If you do not match or better another companies promotion, your business is likely to fail Must create an experience for the customer Mass marketing likely to fail

Shopping is much more simple, with less process

Companies Benefit from Frugality?

Expanding product lines to reduce cost can be a winning retail strategy

HallmarkCreate brand loyalty

Focus on value by companiesBusinesses are learning to adapt to this frugality to benefit themselves

Promoting in store brands like Safeway Select

Company Struggling in the Economy

Aeropostle introduced similar style to Abercrombie with lower prices Higher-end retail companies like Abercrombie & Fitch are doing poorly

Why purchase that product (Jeans) for $100 when an off brand with the same style is cheaper Consumers buy it for an “image” not the product

Marketing Plan “Going Green”

Customers feel more inclined to purchase a product if it is Eco-friendly or for a good cause

Consumers are interested in efficiency Bonus rewards for loyal customers; more convenient (product is a bargain) Consumers want to know what you can do for me

In ConclusionFrugality in the Consumer is here to stay If Companies do not adapt to this new less-trendy lifestyle, then ultimately they will suffer. Cheap is Cool.

Work CitedBenady, David, and Mary-Louise Clews. "New Era of Frugality Dawns." Editorial. Marketing Week 11 Dec. 2008: 78. Business Source Premier. Web. 3 Nov. 2010. <http://we.ebscohost.com/ehost/delivery?vid=6&hid=13&sid=7d9f4...>.

Crossan, Jane. "Is the Economic Storm Over? Consumers Weigh in on the "New Frugality""

  Business Source Premier. EBSCO, Nov. 2009. Web. 17 Nov. 2010. 

Davis, Jill, ed. "Redefining Retail Brands in an Age of Frugality." Business & Company Resource

 

Center. 2009. Web. 7 Nov. 2010.