RECESSION PROOF YOUR BUSINESS

With oil prices soaring, real estate sales the lowest in over 10 years, and the value of the dollar weakening, the future seems uncertain. An almost tangible tension hangs in the air as people everywhere, from economists to minimum wage workers, debate about whether we are in a recession.

The ‘R’ Word

Are we in a recession? Maybe, maybe not. But no matter what you call it, we will all agree that the economy is not in peak health. And as business owners and marketers, we alpaca breeders must work within that reality.

The Popular Approach to Survive a Recession

The most common reaction for businesses during times like these is to cut expenses and halt spending. And usually, the first budget item that faces cuts is marketing. Statistically, most alpaca breeders see marketing as a luxury, or at least as something that is over and above their normal operating expenses. So when things get tough, marketing is shelved and stored away for a better day. They tell themselves that when the economy improves and the future is more certain, they will dust off their marketing and begin anew, starting from where they left off. But Market research experts say that this type of thinking is shortsighted. Unfortunately for these breeders, their place in the alpaca market may not be what it was after their marketing hiatus.

The Correct Approach to Survive a Recession

There is an enormous amount of research that shows conclusively that advertising aggressively during recessions not only increases sales but also increases profits. And conversely, those companies that cut back on marketing during slow economic times, experienced a decline in sales and profit, and lost market share. Additionally, after the recession has ended, these businesses continued to substantially lag behind those that maintained their marketing budgets.

Why is that so?  Well if this is a recession, it is helpful to keep in mind that all previous recessions ended with a significant increase in consumer spending. Companies that continue to advertise through the recessionary period were better able to maintain their brand image and consumer awareness. And when the recession was over, they were the businesses that were poised to reap the rewards of the increase in consumer spending. Whereas, business that went on a marketing recess, were out of sight and therefore, out of the public’s mind when it came to making purchase decisions.

Let’s take a brief moment to look at some real numbers associated with these statements. In their commissioned paper, Advertising in a Recession, the American Association of Advertising Agencies (AAAA) reports the following findings. 

In January of 1982, Cahners Publishing Co. and the Strategy Planning Institute released a report that outlined the results of an extensive joint study. The study revealed that businesses that spent more during recessionary times tended to gain more market share. And the main reason was that competitors, particularly smaller ones, who were less willing to continue spending were less able to compete against more aggressive firms who either increased or even merely sustained their marketing efforts. The study also pointed out that these latter businesses, gained an average of 1.5 points of market share through their sustained or increased advertising.

The group MarketSense compared 101 household name brands during the recession of 1989-1991. The brands Jell-O, Crisco, Hellman's Green Giant and Doritos saw sales drop as much as 26 to 64% due to a cut in marketing expenditures. Conversely, Jiff peanut butter increased their ad spending and experienced a sales rise of 57%. And Kraft salad dressings saw a rise of 70% due to a similar increase in marketing. In the beer category, overall spending was down 1 percent, while Bud Light and Coors Light, each spending more then their competitors, saw sales increases of 15% and 16% respectively. And in the fast food arena, both Pizza Hut and Taco Bell made huge inroads into McDonald's supremacy with sales rising 61% and 40% respectively, thanks to strong advertising support. And McDonald’s volume went down approximately 28% due to a reduction in their marketing expenditures.

When the Going Gets Tough the Tough Get Marketing

So, as we can see, history and research show us with certainty that there is opportunity for growth and prosperity during a recession. You just need to be willing to go against your gut instinct to close down your farm's marketing department. So what is an alpaca farmer to do to optimize their alpaca farm's brand performance during these bad economic times?

The Best Marketing Tool, Recession or Not

It is universally true, that people, consumers and sellers alike, are concerned about cost, regardless of the economic climate. But in slow times, concerns about spending are heightened. Not only are people looking for more ways to cut spending, they are more cautious about the money they do spend. They want to get more for their money, maybe not more in quantity, but more effectiveness, more quality, more information and more service. Basically, you and your prospective clients have similar needs--spend less money, but get more in return on what you do spend. As an alpaca marketer, you want to save on your marketing dollars, while still gaining brand awareness, and profits. And your prospective alpaca client wants to feel they are making sound decisions that give them the greatest return on their investment.

Content Management Alpaca web site

With such seemingly conflicting goals, it might seem impossible for both parties to have their needs met. Don't despair, though. There is one tool that not only makes this possible; it can do it with ease. And that is your alpaca website. But not just any old alpaca website. It has to be a fully functioning Content Management Alpaca website, one that has the power and functionality to serve as a true marketing venue and marketing command-central for your farm. With a true Content Management Alpaca website, you have access to all areas of your site, from textual to photographic, and with no requisite knowledge of design or coding.

A site such as this is invaluable for your alpaca farm's success but imperative during difficult economic times. A true Content Management site should provide the following:

• The ability to add new or edit existing animals to your alpaca website, including multiple images, descriptive text, awards, progeny, genealogies and histograms
• The ability to add new pages and sections per your need, such as new articles, new service descriptions, new events, etc.
• The ability to feature specific animals and or events in promotional touts within your alpaca website
• The ability to add and feature galleries of images with associated descriptions
• The ability to add new or edit existing products if your alpaca website is an e-commerce site
• The ability to edit existing images and text throughout your alpaca website, including homepage content.
• The ability to optimize your pages, per their specific topic, via built-in search engine optimization tools
• Unlimited alpaca website expansion and publishing capability

This sounds great, you say, but how does it really impact my ability to market successfully? Why is all this necessary? Well to answer this, let's look at the average consumer, their needs and how they make purchase decisions.

Consumers look for outward signs of a business' success, the quality of its product and services and its trustworthiness. It is your company's Brand Image that they look to for this information. And your alpaca website is where most consumers will come in contact with your Brand.

With this in mind, let's look at how your alpaca website can impact your alpaca business' brand image and your overall success. The following items apply to alpaca purchasers in any type of economy, but are even more pertinent in a down economy.

• Visitors look to your alpaca website for clues to your alpaca business' health and success. Out-of-date content tells them your business may be struggling, or not active. At the least, it says you let things slip and aren't attending to all areas of your business. And all of these are bad signs for someone considering an alpaca purchase, whether for the first time, or not.
• Time is money, and in today's economy people have very little excess of both. A well-designed alpaca website, with current content and valuable information helps prospects make the most of whatever time they have to spend on researching alpacas. And it makes it easier for them to do business with YOU.
• Because of the nature of our business, new alpaca buyers need to acquire a lot of information prior to purchasing. Therefore, they feel more vulnerable compared to purchasers of other products. And in tight economies, they feel even more vulnerable than normal. Your alpaca website is the best place for them to gain confidence and knowledge via informative articles, upcoming events, current news and up-to-date sales lists.
• In any economy, alpaca purchasers want to feel they are dealing with professionals-- people knowledgeable and skilled in all things alpaca. Your alpaca website is the single best way for you to convey this image, especially to anyone not yet in the business. An alpaca website that you manage on your own, is the easiest and most cost effective method for you to achieve this.

In summary, continued marketing in a down market is important and vital to your success. And finding efficient, cost effective tactics is key to your ability to do so. So how does a Content Management alpaca website fit into this scenario? Well let's look at the alternatives to having a Content Management alpaca website and their associated costs.
 
After reading this article, the alternative of not having a site that was kept current, should already be seen as a costly venture. Although you may be spending less to maintain it, the cost to your brand and your business' bottom line is enormous. And essentially, your steps to save money have actually hurt you.

Another option, and a viable one, would be to hire an agency or skilled person to make your updates for you on a regular basis. On the surface this may seem the most cost effective solution, as the initial development cost of this type of basic alpaca website may be less than a Content Management alpaca website. However, most agencies charge on an hourly basis for this service. And since the nature of an alpaca business is one that is always changing with new alpacas, new crias, new awards, and events, this can become an expensive arrangement. Adding to the inefficiency of this solution is the fact that your changes and updates are rarely made immediately. You are at the mercy of the agency and their schedule and available turn-around time. 

The last alternative is not only the most expensive; it is probably the least practical. And that would be for you to acquire the skill and knowledge in coding and design required to make the updates and revisions to your alpaca website personally. The cost and learning curve of doing this would ¬simply be too steep to even consider.

So, if cost were to be the deciding factor in directing your web development decisions, then a Content Management alpaca website is truly the most cost effective route. But it is interesting to note, that this is one of the rare situations where the overall least expensive route, is truly the most valuable one. That being said, not all Content Management sites are equal. Some agencies and web service companies offer websites touted to allow you the ability to maintain your content yourself. But in actuality, there are only certain categories accessible to you or certain types of content. For instance, you may find that you are only able to change certain areas of text on a select number of page types. Photos of any sort, and numerous pages, may be out of your reach to change.

At BreedWorks we understand the nature of the alpaca business and are intimately familiar with the ever-changing environment of an alpaca farm. To that end we develop first-in-class alpaca websites that allow their owners access to all areas of their site.

We build alpaca websites to be true marketing venues that give their owners full reign and endless power. You can add unlimited amount of new pages for alpacas, articles, services, events etc. Also, search engine optimization tools are added, allowing you to optimize each page for your specific goals and needs. These add-on tools are in addition to built-in, site-wide search engine optimization features that work to make your site search-engine friendly. The end result of all of this-- current content, unlimited site expansion and publishing capability, and search engine optimization--- is a site that can serve as a virtual marketing hub and one that is above and beyond what other marketing companies provide. And if at any time, you wanted to add e-commerce to your site, or a completely new feature or functionality, we do not need to rebuild the core site. Our sites are built to grow with your business and can support endless add-ons.

And you will be happy to hear, a BreedWorks Content Management alpaca website is easier to use than you think, and more affordable than you'd imagine. View our portfolio of award-winning work and see examples of how other alpaca businesses are making an impact online with their BreedWorks custom designed Content Management Alpaca Website. Contact us by phone (607 432-6860) or email, to discuss your needs and learn more about how we can help you succeed.

Alpaca Marketing
Internet Marketing

FEATURED WEB WORK

NEAOBA

The New England Alpaca Owners and Breeders Association (NEAOBA) came to BreedWorks for their expertise in building comprehensive and beautifully designed web sites that are virtual work horses in regards to their marketing power.

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THE IDEAL ALPACA-- FROM MYTH TO REALITY

This much acclaimed book, by author Mike Safley, features the design and illustrations of BreedWorks partner, Susan Muther.

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FEATURED IDENTITY WORK

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Sun King Alpacas came to BreedWorks to create a logo that was worth of its name. The name 'Sun King' is a tribute to the great Incan society that made breeding alpacas for their exquisite fiber an art.

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