Prepare for difficult times ahead

Written by Nick Dymoke-Marr

Friday, 07 November 2008

I was talking to a friend who is a partner in a commercial architectural practice. Their industry is now facing uncertainty. He thinks his firm will come through because it realisedfour years ago that the property bubble would burst and made provisions.

It reorganised its business model, moderated profit expect ations and over invested in people, IT and customer service. It seems to be winning an exponential share of any new business opportunities in its area and has opened a "household improvements" division.

It made me think about how we might prepare for difficult times. The industry's resources are weak. There's no war chest to over invest in marketing, promotion and consumer engagement. Margins have reached uneconomic levels and consumer confidence and financial uncertainty has put a brake on discretionary spend.

We also have increased taxation and governmen legislation aimed at curbing the social and cultural problems linked with indiscriminate drinking.

Outsiders may think the industry has failed to build long-term loyalty through investment in communication, brand management, creative intellect and technical evolution.

Perhaps, now is the time to re-engage our consumers. We need to listen, under stand, learn and act on their feedback.

Nick Dymoke-Marr is a wine consultant.