Kenna Borgmeier & Jeff Miller

“Frugality is In” Recession has

prompted unemployment and sales declines

Consumers are adapting Spending less and

scrutinizing more

New shopper is wiser in spending habits and much more frugal

Price must be Right 86% believe price to be important consideration before

making a purchase Consumers feel entitled to better prices and more swayed by

dramatic sales Marketers resorting to pricing strategies to free up

checkbooks Del Monte “Stretch”

Campaign Wal-Mart Annual Savings

Commercials

Define Value Beyond Price Price isn’t everything

Value comes in a lot of different ways Pay attention to the total value

Brands that best meet complete brand-value are going to win out

Panera avoided price focus and stressed quality Chipotle “Food with Integrity”

Word to the Wise Greater urgency for marketers to incite positive word of mouth Carries more weight than typical ad campaign Digital media and recommendations are big influence on

gaining new consumers Invest in social media and find inventive ways to show

customer appreciation Listen, interact and be authentic “My Chipotle” Campaign Lululemon Community

Connecting with the New Consumer

Class Discussion

Have your buying process or decisions changed since the recession? In what ways?

Other than price, what are factors you consider when determining which product to purchase?

How does “word of mouth” influence your decisions?