MARKETING
The importance of innovation during covid
By Graham Villiers-Tuthill
The Covid-19 pandemic has sparked some strange habits amongst all of us . Of course , there are the obvious signs of change that we see every day here in East Africa : face masks , sanitizers , temperature checks , and even the occasional hazmat suit . Scratch the surface and there are other less obvious changes happening too .
The ‘ Treat Brain ’ No matter what socio-economic class you look at , the pandemic has disrupted the ‘ usual ’ routine for all of us . How we connect and socialize with others has radically changed . Where we spend our time has shifted , and so has where we spend our money . I think we all have that friend who has changed career , or embraced a new food obsession , or absorbed themselves in a new TV series . In Kenya , public spaces and parks have never been busier , e-commerce is exploding , and , in markets like Europe , garden centres and DIY sales are booming . Last month , I came upon a new phrase that captures this shift - ‘ the treat brain ’ ( 26th August , The Financial Times ). The central thesis is that your environment dictates your habits , and during Covid people are spending more time at home which means that many consumers are looking for new experiences / treats / rewards as they manage through a stressful macro environment .
When Things Change … Innovate
Occasions are shifting . And when occasions shift marketers need to be thinking about innovation . When Covid first struck the initial impulse amongst many FMCG companies was that advertising and innovations should be halted . On a quarterly call with investors in April 2020 a global soft drink company ’ s CEO announced a reduction in advertising spending and new product launches .
Some critics have pointed out a -11 % net revenue delivery by the company in 2020 and argued that a reduction in marketing investment and innovation was a bad call . Many companies are scrambling to bounce back and kickstart their innovation agenda .
Where Is the Consumer ? Our first role as marketers is to get a sense of where the consumer is . What are the big unmet needs and motivations , what has changed in where they spend their time and their money ? There is so much great research available online , and many rapid and affordable research techniques accessible , enabled by technology . With the proliferation of mobile phones in our markets in Africa , marketers have a better opportunity than ever before to have a closer connection to the consumer . Technology is enabling speed and reducing cost . Do we know where the consumer is , and where they are going ? Once we get a sense of the whitespaces for innovation it is important to sense check if competitors are already here . If so , how can we add distinctivity or superiority versus the competition ?
At EABL , I have been very impressed by the Consumer Planning team ’ s response to the Covid crisis . The team developed a dynamic and iterative SMS-based consumer survey to guide Covid-19 ’ s impact on consumer mindset , income , socialization , category penetration and key occasions . With bars closing early due to curfews , we have seen a shift in occasions , from high to lower tempo .
Bringing It All Together This shift in occasion means consumers are making different category and brand choices . Long mixed spirits drinks are taking off , particularly those connected with the classic ‘ sundowner moment ’. To access the opportunity , we have launched a range of delicious gin brands , which tap into this emerging occasion . The innovation has been across price categories , from the super premium such as Tanqueray Sevilla , ( which is Tanqueray gin balanced with the bittersweet taste of Seville oranges ), Gordon ’ s Pink , a delicious gin with a sweet finish , Gilbey ’ s Mixed Berry , which launches soon across Kenya , to Chrome Gin in Kenya and Bongo Don in Tanzania , accessible , iconic and delicious brands at affordable prices . These innovations have turbocharged our spirits performance across the region , and it all started with a very clear understanding of where the consumer is .
After Covid - What ’ s Next ? Guessing what life will return to in the post-Covid era is probably a futile endeavour . We are not futurologists and if we make assumptions the only guarantee is that we will be wrong ! As marketers what we can do is commit to having a better connection to consumers , truly understanding what is driving consumer choice .
We can ’ t know what the consumer , retail , or macro landscape will be in the post-Covid era , but we can ensure that we have the structures in place to make sense of the landscape today , and the big emerging trends of tomorrow . It is our obligation to use those insights to innovate and drive business performance . ■
Graham Villiers-Tuthill is the Marketing & Innovations Director , East African Breweries Limited . You can talk to him via email at :
Villierg @ gmail . com or Twitter :
@ graham-vt
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