Grim reading all this economic crisis stuff. Just hearing recently that there are now 80 million Europeans at risk of serious poverty and 20 million of these are children. Yes, very grim news indeed.

But just as necessity is the mother of invention, marketers will always find new approaches and methods to respond to this ever-deepening crisis. You may have heard that Unilever is now employing the same marketing tactics it uses in the developing world in some of Europe’s most failing economies. In Spain, it’s launched Surf washing detergent in packs of just five sachets – just enough for a weekly load of washing; while in Greece, Unilever is developing new low cost brands to staunch its losses as consumers move to cheaper private label alternatives.

Well this is all very clever and represents the smart thinking we’ve come to expect from Unilever, but where does this leave us all for the foreseeable future? As household budgets come under ever more scrutiny and consumers are literally counting the pennies, retailers and brand businesses are having to align themselves with the rapidly changing consumer behaviour to survive. Brands need to be nimble and adapt, just like Unilever, and provide products that meet our immediate needs. Focussing on the weekly shop and creating formats that have just the right amount for a week’s use, as Unilever did with Surf, is certainly one way, but overall the situation is more complex.

Though consumers are more tolerant of discount brands and private label and are switching on those non-brand critical items, it is not the case that we’re seeing an ever-deepening plunge into base level value. As they say, there can only ever be one cheapest product in the store and even value brands need to be able to distinguish themselves with an authentic attitude and appeal. They may be cheap but that doesn’t mean they can’t inspire consumers with an engaging and unique brand story.

The reality is that we’re moving into a much more fragmented market place. Yes, there is a growth in the value end but there is also growth in the top of the market too. It is more about the growing divide between the haves and have-nots. The big question is what is happening in the middle to the everyday good solid products that used to be the engine room of growth and profits? Many of these brands are in danger of losing their identity and are having to fight for the right to survive by carving out a unique space they can own and defend. Being a ‘good all rounder’ brand is no longer enough, as the old adage says, a brand for everyone is a brand for no-one.

So what’s the opportunity? We can expect the fragmentation of markets to continue as demographics and economics splinter further. Brands will need to be ever more adept in aligning themselves with more niche consumer groups both in brand presentation and product delivery. What price is a brand that can capture what is sure to be a swathe of poverty pensioners or become the champion of the large family with a low income.

With all this depressing news around there’s only one thing for it….. I’m off for a beer…