Supply Chain Issues are Impacting the Marketing Strategies of Businesses
2020 can only come up in conversation with a shutter of remembrance of the pandemic. From logistical challenges and delays to complete shortages of materials and products, the global supply chain was disrupted to unprecedented levels. The impact of the economic shutdown will be felt for years as businesses struggle to play catch up. This blog will discuss how supply chain issues impact businesses’ marketing strategies and how they can adapt.
Supply chain issues can be broken down into many levels; however, the single overarching principle is a delay in products to consumers. This disruption culminated during the perfect storm of the pandemic due to lockdowns, labor shortages, decreased production, and shipping delays; naturally, this increased demand for everything…even toilet paper. Supply chain issues and challenges have surprisingly influenced marketing strategies (and their budget) despite their relationship not being 100% obvious.
Product Availability: A new product is set to be released, a marketing budget has been allocated and implemented, and the effect of decreased raw materials or inability to fulfill product manufacturing leads to frustrated consumers looking elsewhere to spend their money.
Logistics: Being on time is invaluable. From promotional campaigns to product launches to the actual shipping of the product, when one is late, they’re all late. Supply chain issues are a marketing campaign’s worst nightmare when it results in wasting resources.
There have been numerous post-pandemic lessons learned for businesses. Adapting correlates with survival, and a few steps have been more successful than others.
Diversifying: Diversifying supply chains has decreased vulnerability to potential disruptions, giving businesses back the power of having options.
Communication: Businesses that have genuinely stayed in touch with their audiences and honestly communicated why prices have risen or products are delayed open the door for loyalty.
Strategy: From a marketing standpoint, businesses that have changed their strategies from transactional to more relational have helped businesses spend resources more efficiently.
Values: There is nothing quite like staying true to your brand and values. Consumers are more willing than ever to let the world know if you lose their trust.
Want to talk more about the relationship between marketing strategies and supply chain issues? Let’s talk! YCS Marketing will help you define your marketing strategies to navigate the post-pandemic storm.