In the process of collecting material for this book, Iya Imshinetskaya asked all of her friends and strangers businessmen the following questions: Does your business have a seasonal decline? How does a business feel it? How does he explain it, for what reasons? How does he fight with him if he fights? In addition, the author was looking for specific examples of dealing with a seasonal decline in open source sales. As a result, a very practical book was obtained, the material in which is classified by the “floors” of marketing and the information from which can be applied immediately after reading. A system of techniques has emerged that are now able to help cope with the seasonal “pit”. A distinctive feature of this book is that two businesses are taken as an example - one is b2b, the other is b2c with non-coincident seasonal cycles and each of the 28 techniques found by the author is illustrated by their example.
What could be the reasons for seasonal sales drops?
The reasons for the occurrence of seasonal differences in sales in business can be different, some of them do not depend on us, and we can influence some. The list of reasons is as follows:
How to determine - do you have seasonality or inept company management?
Of course, the shoe market lives by strict seasonality rules, depending on the vagaries of the weather, commodity circulation, revenue and profits, customer traffic and conversions depend. It often happens that inept managers skillfully cover up their professional miscalculations and wrong actions with the standard phrase "So it's not the season." Therefore, in a market that lives cyclically, by season, it is especially important and not easy to determine whether the low season is to blame for the fact that the store is in the red or a manager or manager with low qualifications. You can talk about the presence of seasonality if:
If all this is about you, there is a seasonal factor. If not, consider whether you (or your employees) hired your company professionally.
What are the types of seasonality?
Tough seasonality - the difference between season and non-season sales reaches 100% (these are New Year decorations and Christmas decorations, “Valentines”). With severe seasonality, the intervention is in the vast majority of cases useless; demand falling to zero cannot be raised until the next season (Christmas, New Year, etc.).
Bright seasonality - the difference in sales at the recession and peak is 30-40%, we are talking about 80% of all seasonal cases. You can jump over such a hole in sales.
Moderate seasonality - fluctuations - 10-20%, do not cause significant harm to business, do not require serious intervention, but require only to take them into account in the annual planning of the company. If you know that in the fall you will have a small hole, then you simply plan the year differently.
When is it NOT NECESSARY to struggle with seasonality?
You do not need to deal with seasonality in the following cases:
And here's what else you can do in the off-season (according to E. A. Skriptunov, the article “Seasonal sales declines”, published in the magazine “Sales Management”, No.9, 2017):
The key question is: if it is NECESSARY to step up its activities in the low season, then HOW to do it?
One and the same problem can be solved in different ways.
Ways to combat the seasonal decline lie in all functional areas of the management system:
Marketing has five floors, five “P” in its structure: Product, Price, Place, Promotion, Personal. And each of them has its own tricks.
1. Product - the assortment features are actively involved: adjust the assortment, diversify in a connected and unconnected manner, release new items; focus on the win-win, the most tested and running items in the assortment, show the second (third) function of the product; Move less urgent and less profitable projects for the off-season.
2. Price - here the methods of dealing with seasonal sales declines are based on the possibilities of pricing policy:
3. Place - here the only trick - the creative use of distribution channels - allows you to go to the target audience, if she does not go to you. Therefore, the main task is to get as close to your target audience as possible.
4. Promotion - the most “populated” receptions floor. The marketing communications are included in the program of actions to reduce seasonal undersales:
5. Personal - One of the main rules of all HR directors is: motivate staff to super work. How - using material or non-material motivation, or combining them - it's up to you.
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