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something wicked this way comes

The Drum Design Special

LEWIS recently worked with The Drum to publish a 16 page supplement for distribution to its Scottish subscribers.  Incase you missed it, we've uploaded some of the articles for you to read.

Enjoy!

Economics suddenly isn't such a dry topic. People with no financial background are speculating about the inner workings of credit, mortgages, and the stock market. To listen to the nightly news, you'd think the world economy is on the brink of collapse. But then, economics is also regarded as a kind of voodoo, prone to being dramatically wrong as often as it's right. 

So what's the reality? To get a feel for what's actually happening in the marketplace, we spoke to clients from a number of different sectors about their experiences.

What are the changes or challenges in your market?

Malcolm Cannon, Managing Director of Hunter Boot, makers of footwear for the hunting, fishing and fashion market, points to the credit crunch in the United States as the major danger in his industry. "The credit crunch has definitely hit retail outlets at the luxury end of the market and some forward orders are already being cancelled."  While Hunter is a well-established brand in the UK, growth abroad is more of a challenge now: "Global brands are taking off and the budgets for marketing are rocketing. Smaller brands need to spend very carefully and wisely to compete."  Scott Sharkey, CEO of Sharkey Fit Out, who specialise in interior fit-outs and refurbishments, is negotiating around the danger that companies will reduce their budgets or even put expansion plans on hold because of their financial concerns. His existing clients are expecting more-for-less too. Even though the firm beat its turnover target last year, Sharkey have lowered their targets for this year and expect that they'll need to take on more projects and new clients to reach them.  James Oliver, CEO of Shake, an international agency providing mobile and Web 2.0/3.0 marketing, has contingency plans running continuously: "We're spreading our risk geographically across New York, Cape Town, Johannesburg and the UK, and we hope to be in Latin America by the end of this year. We have a really low fixed cost base so we're pretty insulated from major shocks. However, if all our agencies and clients fall over, then there's an issue for all of us." Angus MacDonald of the Glasgow based printers, Creative Colour Bureau (CCB), faces the challenge of managing staff salaries while dealing with rising inflation and fuel costs - in a crowded industry where margins are being squeezed, print runs reduced and turnaround times shortened. The trend, he points out, is toward a Print-on-Demand marketplace where printers who haven't reinvested will be left behind. 

So how have you adapted your business?

Hunter Boot is taking a new tack to open up opportunities while minimising risk. "Amongst other things we're looking at bespoke tie-ups with other branded companies to reduce the cost and risk of launching new products," says Cannon. "This helps us leverage other brand names to our advantage and also allows other brands to leverage ours."  Similarly, Sharkey have found a way to turn clients' increasing caution into a new business stream. "We've created another solution that provides all the benefits of a full-scale interior plan which in simple terms fits in a smaller space so they can reduce costs by way of selling buildings and reduce their rental expenditure and running costs."  CCB has made the re-investment necessary to stay ahead in the print sector, building a customised factory and purchasing more efficient, state-of-the-art equipment.  As a result, with the increased automation, instead of a downturn they're expecting a 50% increase in speed and capacity - while being able to handle a new range of jobs.

Have you changed your marketing strategy?

Catriona Love, of energy consultancy McKinnon & Clarke, reports that her firm has rebranded over the last 18 months and redeveloped their website and company presentation. "The market is always moving," says Love, "and we need to reflect that in the service we offer our clients and the way we present ourselves."  Sharkey have always relied on the quality of their work to provide repeat and referral business so the firm operated without having any sales or marketing strategy.  Now they have a fully-formed plan in place aimed at connecting more with new and existing clients to make them aware of solutions they can afford.  Some companies are bypassing traditional methods altogether, counting on targeted strategies and promising trends like the increased return on investment from online marketing. Malcolm Cannon of Hunter Boot says: "We're spending less on advertising and much more on tactical PR. We've also invested heavily in online marketing through a new website."

Clearly this is not the time to depend on the status quo to get by. With commercial audiences growing increasingly uneasy and media/information savvy, marketing campaigns have to be accordingly relevant and innovative.  While the adjustment to a new way of doing business may not be easy or comfortable, the ultimate result may mean a climate in which businesses and marketers are more responsive and aware than ever, securing long-lasting, rewarding relationships through a variety of channels - some traditional, some promising new ones whose potential we've only begun to discover.