Thriving In Business During Crisis

William Kellogg

Before the Great Depression, companies Kellogg's and Post were the market leaders for packaged cereal. It was still a relatively new market since most Americans couldn’t see past oatmeal and cream of wheat until the twenties. When the Great Depression hit, no one knew what would happen to consumer demand. Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg's doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant leader.

Walter Chrysler

Chrysler’s outside-of-the-box thinking during the Great Depression is a classic example of bold leadership during crisis. Chrysler had been the third player in the U.S. auto industry, behind G.M. and Ford. But early in the economic downturn of the early 1930s it gave a big push to a new brand - Plymouth - which targeted the low end of the market, and by 1933 it had surpassed Ford to become North America’s second-biggest automaker.

Apple debuted the iPod just one month after September 11, 2001.

Kraft introduced Miracle Whip in 1933 during the Great Depression, and saw it become America’s best-selling dressing in six short months.

Texas Instruments made a huge partnership and brought out the transistor radio during the 1954 recession.

Groupon launched in the middle of the economic crisis in November 2008 yet saw incredible growth. Why? Because it provided for a huge felt need consumers had at that time.