Cost Savings Innovation in a Downturn: Keys for Success
Manufacturers are clearly looking to cut costs and streamline operations in a tight economy. Downsizing, upsizing, package material changes, and product reformulation are all avenues of potential relief. Yet, these are not simple fixes in a recessionary environment where consumers are scrutinizing purchases with impunity, looking for value, and being increasingly vocal about it.
It is more important than ever to be thoughtful in executing any cost innovation strategy, and consider all the angles. The right strategy for one manufacturer may be completely wrong for another. Take the example of one manufacturer, reacting to consumer sentiment and competition, which upsized its core product only to see no impact. Why would that be the case when so many others have had great success with this strategy?