Upload
remalie-comport
View
1.285
Download
1
Embed Size (px)
DESCRIPTION
How should Brands behave in this age of austerity? ARE WE IN AN AGE OF AUSTERITY? BBC News claims that HOW DOES THE CURRENT ENVIRONMENT AFFECT TODAY’S CONSUMER? -Who are today’s consumer -What has their initial response been -What is their overall response -What is their predicted response GENERAL BRAND RESPONSE EXAMPLES OF FAILED BRAND RESPONSE IS IT AS SIMPLE AS WHAT THEY DID RIGHT/WRONG? -There is no general response to the recession MAKING THE MOST OUT OF AN INTANGIBLE SITUATION -Brands have the tools and the ability to plan campaigns that strengthen their position in the recession and therefore minimise the negative impact that the recession can create. -Must look at Brand identity and Consumer psychology not just sales -Stronger brand identity leads to trust, more indepth relation from the consumer and therefore increase of sales BRAND IDENTITY AND CONSUMER SENTIMENT How to understand and capture consumer sentiment? -Understand the consumer spending strategies in the recession -Understand your brand archetype and therefore which strategy your brand is likely to attract. -Centre your campaigns around this EXAMPLES OF SUCCESSFUL BRAND RESPONSE -Using this strategy SO HOW SHOULD BRANDS BEHAVE? -Brand Archetype + Consumer Strategy = Brand Minimal risk assessment strategy
Citation preview
Graduate Presentation
How Should Brands Behave in an Age of Austerity?
“It was the best of times, it was the worst of times” – Charles Dickens (1859) A Tale of Two Cities.
Are we in an age of austerity?
• Governments across Europe are forcing through tough austerity measures to tackle huge budget deficits.
23 June 2010
• Double-dip recession 'more likely' as UK faces two years of house price pain.
15 Sept 2010
• IMF warns of the 'human cost' of public spending cuts. 13 Sept 2010
But what about now?Google Insight
“Our choices and decisions aren’t just governed by where we are, it’s whether there’s a discount as well”
Michelle Strutton Senior FMCG Analyst, Feb 2010
1991 Recession advert aimed at Brand behaviour
General Brand Response1. Inertia 3. Cut Costs2. Lower prices
“The customer’s experience with the product must continue to live up to the promise of the brand, the company must not sacrifice its image and identity by cheapening its product.”
Charan 2009 p.56 found in Effective marketing strategies for a recession
B2B International journal
What is the Recession Strategy?
• Listen to what the consumer needs• Understand who you are as a brand• Bear in mind that marketing in a bad
time is different to marketing in a good time.
Do not fear the inevitable change:“the great [brand] leaders of the last
twenty years have known how to tame change” Jean Marie Dru
Unfortunately there is no general recession brand strategy
But each new campaign strategy should:
Next warns of higher clothes prices but sees no double dip recession as profits jump
Understanding - Who are today’s consumer?
Discretionary spending takes a hit“Spending less on eating out, me and my friends have dinner parties instead because everyone agrees its luxury we cant afford right now. We’ll only eat out if there is a really really good deal on” 16-24 yr old ABC1 female
Portfolio approach: Cutting a bit of everything“Rather than cut back on one specific item I would more likely cut a little from each budget…This allows you to do all the things you are used to doing and you don’t miss out on things you enjoy” 35-44 yr old C2DE male
Travel may be the exception“Only a one-off expensive holiday”
Over-55 yr old ABC1 male
Listen to what the consumer needs:
The change of spending priorities
“ We should be driven by tomorrow’s people” Jean-Marie Dru
The 6 identified Consumer Recession Strategies
Roz Calder during a TNS study has
identified 6 core recession strategies that have been adopted by today’s consumers
Fight and ExploitCompete and TriumphStrategise and PlanRetreat and DefendCollaborate and AcceptAvoid and Indulge
Multi modal consumer
• A consumer may embrace several of these responses at different times and across different categories.
• Understanding this consumer psychology will enable a brand to understand what connects their brand to their consumer
Brands need a strong
• “I think, first and foremost, a strong brand is one that has a clearly defined story to tell and everything emanates from there” Crispin Reed - MD Brandhouse
• Brands need to behave as their identity suggests“A lot of things have changed, but values and core
values, those things shouldn’t change. The thing’s that Apple believed in, at it’s core, are the same things that Apple really stands for today.”
Steve Jobs – Co founder and CEO Apple
Understand who you are as a brand:
REBEL
EXPLORERHERO
RULER
CREATOR
SAGE
CAREGIVER
LOVER
MAGICIAN
TRIBAL MEMBER
ENTERTAINER
INNOCENT
“Archetypes provide the missing link between consumer motivation and product sales”
Blog:
Web article:
Examples of brands aligning their archetype with their most responsive consumer strategy
“Ryanair to charge for online check in” (May 2009)
http://customerlistening.typepad.com/customer_listening/2009/04/pg-and-cocacola-keep-spending-up-despite-recession.html
All ‘Smithy owners’ will have the opportunity to vote online on key decisions on his progress, for example on the meets he should race at (in consultation with his trainer).
“Why Smithy will be National hero.. he's the people's horse” (31/10/2009)
Also read about Smithy’s No Nonsense views at www.johnsmiths.co.uk/smithy
Also bear in mind key differences when
marketing in a Bad time vs marketing in a Good time:
“Effective Marketing strategies for a recession” (2009)
Summary
Strong Brand Archetype
Strong Brand Archetype
Aligned Consumer Recession Strategy
Aligned Consumer Recession Strategy
Practical marketing awareness
Practical marketing awareness
Minimal Risk Assessment Strategy for a Brand
+ +
“Today we no longer judge brands simply by the products they make or the services they propose but by the way they
behave. Brands need to know how to take initiatives…and how to reinvent themselves”
ReferencesPublications:B2B International (2009), Effective Marketing Strategies for a recession, B2B International Ltd
Charan, R, (2009), Leadership in the Era of economic uncertainty, McGraw Hill
Dru, J, (2007), How disruption brought disorder, Palgrave Macmillan
Mark, M & Pearson, C, (2001), The Hero and the Outlaw, Building extraordinary brands through the power of archetypes, McGraw Hill
Articles:Data monitor, UK Consumer Insight 2010: Waitrose Food, September 2010
Brandhouse, Protecting your brand during a recession, May 2009
TNS Consumer, What is a real recession resonse?, 4th July 2009
Mintel, British Lifestyles 2010 – focusing on the essentials
Mintel, British Lifestyles 2010, Market forecasts to 2015
Strategy Business, The new consumer frugality, 15 March 2010