What could these emerging trends mean for the wood products industry?
Return to mass production. As consumers grow more value conscious, a move toward lower-priced, functional products could accelerate. Think Ikea. Their low prices are afforded by huge volumes made on high-speed production lines.
More affordable customization.
Simplifying semi-custom product lines could impart more value at lower prices.
Use of new materials. Lightweight panels, for instance, could provide mass with less material thus reducing a product’s cost and environmental footprint.
More local production. Changing global economics combined with the creative use of technology could mean a rebirth of domestic manufacturing.
marketing practice requires that you segment them by their purchasing criteria, or why they buy from you.
Innovate new ways to deliver value.
It’s not about inventing the next iPod but rather about being the best at what you promise to deliver.
Simplify your product line. Make it easy for your customers to select from and price your offering. Choice and customization should not be over-
whelming. Some experts are predicting the return of simple choices with few options.
Adjust your sales force and distribution. If the recession killed off your independent reps, commission salesmen, or distributors, recruit replacements immediately. Employ new distribution channels that best fit your new prod-ucts/markets.
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What should you do to prepare for the new normal?
Know your existing customers. Every business, new or old, starts with a customer. Now more than ever you need to understand how your customers define value and are responding to that definition. Find out if their purchasing decision process has changed and whether the attributes you sold on before the recession are still important.
Acquire new customers. The latest economic crisis, like others before it, disrupted the status quo. Companies have retrenched, cut their work forces, idled plants, stopped buying new equipment, and changed their processes to fit the times. Other firms have disappeared. In doing so, they may be leaving customer needs unmet. Put on your marketing hat and discover how to deliver those needs profitably.
Modify your market segmentation accordingly. Your customers are not a single homogeneous group. Sound
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