During a recent conversation with a management consulting client we started brainstorming about the companies we knew were doing well in this economy.  They were working with a pasta manufacturer that was seeing strong sales as people eat in more and turn to less expensive fare.  When we called on a company that manufactures signs for retail locations (such as banks), they were so busy with all the mergers that their parking lot was full.    That got us thinking.  There are a number of industries and companies that are doing well as buying habits change.  And those are the companies that it would make sense to target in your marketing. 

So, who would you suspect is doing well in this economy?  Our brainstorming suggested car parts dealers (people are fixing their older cars themselves), home centers (more DIY projects, less outsourced remodeling), grocery stores (more eating in, less restaurant meals), government (there’s a lot of stuff in that stimulus package), companies with locked-in revenue streams, and mid-market firms.  A quick Google search for companies with strong earnings noted the following:

·         Kirkland’s, a value-priced home décor retailer, reported a 10-fold increase in Q4 net income and stronger same-store sales and margins throughout the holidays. 

·         Virgin Mobile reported that all “headline results” improved and they ended the year with a strong Q4.  They cited proactive management measures and the aggressive marketing of plans that would appeal to customers as contributing to strong results.

·         Darden Restaurants (Olive Garden, Red Lobster) reported better-than-expected Q3 profits and raised their 2009 sales and earnings forecast.  Good management, strong marketing and falling commodity prices helped with their results.

Companies are growing and thriving in this economy.  When you read the earnings reports, many cite that the management teams identified trends early, made tough decisions, listened to their customers and adjusted their marketing and sales strategies.  These are the companies you should target in your marketing.  If you’re calling on firms that are receiving TARP funds, reducing their workforce, scaling back operations or experiencing lower than expected earnings, you might be barking up the wrong tree.