Bail-out Bitter
“A bitter ale for bitter times” is the marketing slogan coined by the Howe Sound Brewery in British Colombia which has just launched a new ale in honour (?) of the global financial crisis and the budgetary problems of the Canadian government. They are backing this up by offering Blue Plate depression meals in their pubs priced at affordable levels.
This is just one of the clever ways in which businesses can capture the mood of the times and generate some extra sales through a healthy dose of black humour. Restaurants are offering “credit munch” discounts and one of my students told me this week that millions of us have downloaded tracks which are specifically related to money. Favorites include the classic ABBA track “Money, Money, Money”, and Pink Floyds “Money”. These songs have seen a 28% increase in downloads from the iTunes website.
Has anyone come across other innovative “recession marketing”? If so please add your contribution!
Exiting the Market
We have been discussing in our microeconomics classes, examples of businesses that have exited a particular market - reallocating their resources into what they hope and expect will be more profitable avenues. A business-collapse or implosion is an obvious example of when there is a net loss of firms from a marketplace, for example the collapse of several low-cost airlines this year and the closure of many businesses linked to the ailing housing market.
read more...»Bitter blow for pubs as more opt to call last orders
It is a bitter blow for the licensed trade but 1.2 million fewer pints of beer are being drunk every day in Britain this year compared to last and over twenty pubs a week are calling last orders for the final time.
read more...»Unintended consequences of the smoking ban
Any government intervention in the market can give us cause to consider the Law of Unintended Consequences where a policy decision or action leads to fresh actions which might not have been considered by those putting a policy in place. Some of these knock-on effects can be positive, a windfall that enhances the impact of the original decision. Others can be negative leading to fears of government failure and a deepening of an existing problem or market failure. The smoking ban seems to be providing a rich seam of examples of such unintended blow-back effects.
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