By: Jonathan Lee. Vocab. WordsTax Policies Indulgences 100 200 300.
Little Indulgences
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Transcript of Little Indulgences
Little indulgences:10 Insights on where to grow business
Growth Stories
Bringing you a flavour of business
growth trends...in just 5 minutes
A Futures Coaching initiative
www.futurescoaching.com
“Individuals invest more heavily in one domain to make up for what is missing in the other domain” (Staines,1980)
Compensation theory
Estee Lauder coined the recession-proof 'lipstick index'
'Small luxuries' are things to get you through the bad times as well as the good
Today, nail polish also qualifies: up 65% '08-'11 (source:NPD Group)
the dipstick is lipstick
Ice-cream sales are rising in Greece
In Britain, M&Ms sales were up 12% in 2010
(source: Euromonitor)
against all odds
out with small austerity
Rise of small luxuries means declines in small austerities
Example: Danone's Activia creamier yoghurts are booming but health-focused Actimel struggles
Nestlé Eclairs are a recent hit in India: “with an irresistible outer layer of caramel and a yummy milky
filling, you will not find a better temptation”
trend is global
Royal Salute costs upto $600 a bottleAs the brand says: “it's a bottle you need not mortgage
the family home for” (!)
for all pockets
products > services
Surge in sales of pricier Unilever shampoos as compensation for fewer visits to the salon
Expensive food ingredients get a boost as people cut down on eating out
London Tea Company's recent launch of a white tea in silk bags swiftly overtook staples like Earl Grey
focus on NPD
problem with profits
Adding value can come at a cost. It takes six times as long to make silk tea bags; toothpastes which whiten cost more
to makeAs Unilever's Polson reminds us: “good innovation over time
should be margin-accretive”
Padora's charm braclets took the market by storm: an ideal 'pick-me-up' product
Then it pushed up the average price of these 'treats' by 40% in 18 months to $40
Result: the 2011 revenue forecasts were cut from 30% to 0
getting it wrong
Acknowledgement These insights are drawn from The Financial
Times article of August 6, 2011 “In the age of austerity, indulgence is back”
Working with Future Coaching Conference speeches on major trends - accelerating
management awareness Workshopping trends – evaluating impacts on
businesses or brands; future-proofing existing offers Brainstorming sessions – innovating to harness growth Reports on the future of sectors or industries –
jumping ahead of the curve; achieving thought leadership; building in longevity
Training for consumer insight teams – boosting internal futuring capabilities
Website: www.futurescoaching.comBlog: http://futurescoaching.typepad.com
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