When times are tough and revenues are falling there may be a temptation for business to cut ‘discretionary’ budgets - money allocated to activities such as design, perhaps.
But design is a powerful tool in a downturn.
Our research shows that more than half of the UK’s businesses:
- are looking to design their way out of downturn
Over half (54%) of the firms in our survey thought design would contribute to a large or great extent in helping maintain their competitive edge in the current economic climate.
- think design is more important now
Similarly, 53% thought that design had become more important in helping the firm to achieve its business objectives over the last three years.
- think design is integral to the economic performance of the UK
The same number agreed or strongly agreed that design is integral to the country’s future economic performance.
Fortunes can change for any business – large or small – sending a once successful and thriving operation into decline. Shifts in the economy, in consumer sentiment or changes in the marketplace are just a few of the factors that might leave a company in trouble and unsure how to get back on track. Even mighty corporations such as McDonald’s or entire industries like the Swiss watch industry have fallen foul of changes in the market, but both responded through an investment in design and innovation which helped to turn their fortunes around.
What can design do?
There are many ways design can help your business perform more strongly, from improving your image (internally and externally), innovating your products or services, through to enhancing your overall efficiency and saving you money.
Companies of different sizes and from different sectors have worked with designers to improve their performance during challenging conditions.
Castle Rock Brewery gets a professional image
Competing in the competitive real ales market is tough. Castle Rock Brewery in Nottingham brought in designers The Workroom to give its communications and graphics a more professional edge. Demand is now outstripping supply and the company’s barrel sales growth has doubled.
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Thistle hotels uses design to reposition itself in a changing market
The rise of value chains has meant that hotel groups in the traditional mid-market have suffered. Thistle hotels is using an image overhaul by designers Navyblue to spearhead a multimillion-pound refurbishment and service improvement programme, and visitor numbers are already rising.
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McCain’s packaging tells a positive story
Frozen food company McCain suffered badly following a backlash against poor diets and rising obesity, so it worked with designers Elmwood to rethink the way its packaging speaks to shoppers in supermarkets, promoting the product’s natural ingredients and low fat. Sales have since blossomed to record levels.
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HMV rethinks the music store as buying habits change
High street music specialist HMV has had to react to massive changes in the way its customers buy music and video titles since the arrival of digital files and the internet. It used design to create a next generation store and whole new brand proposition. Sales at a trial store jumped by 25 per cent.
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Ian Macleod Distillers brings new customers into an ailing whisky market
Scotch whisky drinking is in decline. So family company Ian Macleod Distillers employed designers to create packaging for its new Smokehead whisky aimed at bringing younger consumers to the whisky market. Sales have doubled since launch in 2006.
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You can also find out how:
have survived downturns in their sector by using design.
Design beats the blues
During hard times investment in design can give a business a competitive edge over rivals who are reining in their design and innovation budgets in order to save money. As American Express chief executive Ken Chenault told Fortune magazine: ‘A difficult economic environment argues for the need to innovate more, not to pull back.’ Similarly, in September 2008 following a crisis in the global financial markets and in the face of an impending worldwide recession, Intel’s chairman Craig Barrett told Reuters that investment in the company’s products and innovation remained very much on track. ‘We’ve always had the attitude that you have to make that investment in good times and bad,’ he is quoted as saying.
While American Express and Intel are global businesses, with dedicated R&D and marketing functions, the same wisdom applies to a business of any size: when times are tough it is change, dynamism and vitality – not hunkering down quietly – which are the keys to success. And this is exactly where design can help.
As you can see in the case studies above, companies big and small are rising to the challenge of hard times through a conscious investment in design. Their decision to innovate – to rethink and regenerate their products, operations and image – can be taken by a company of any size and in any area. Design and brand strategy can help elevate a firm or its products from the ordinary, the tired or the predictable, demonstrating that the business is alive, dynamic and responsive. And in a declining market that just might make the difference between growth and collapse.