People are not calling these temporary tough times, they see them as the new permanent reality
In 2009 we conducted a Value Xploring study because the new economic realities have caused people to reassess what they value .
The reality is people are reframing their whole life value system. The only way forward therefore is to understand where our brands can best fit in this new value set.
We believe that retailers and services are responding to this faster than classic brands, which seem to still want to lead the value discussion on their terms. Retailers and services are more attuned in real time to how shoppers are changing their habits and behaviors.
A lot of value discussions are now seen as temporary and tactical. But the reality is that they need to be strategic and long-term. People have already realized this is not going to be a blip – this is the new world order – and any adjustments they make are likely to be permanent. They do not see this as something to “get through’. This is the new reality.
Gas prices are down (lowest point in 5 years), yet miles traveled has not gone significantly back up – people are seeing the benefits that the changes in behavior are bringing and are sticking to them. They’re enjoying taking the bus/walking to work/car pooling with friends. Prius buyers have income levels of BMW buyers (Over $100,000)
BMW buyers are remaining loyal, but trading down from 5 series to 3 series.
