Thinking of cutting back on your marketing during these tough economic times? It’s a natural reaction. After all, money is tight. But look back at history, as the New Yorker’s always-interesting James Surowiecki did this week, and you discover an amazing secret: when everyone else is disappearing off consumers’ radar, you can take over an entire industry segment.
“When the (1930’s) Depression hit… Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies.”
And the result?
“By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant player.”
Read the rest at: Hanging Tough: The New Yorker.
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