Review consumers prioritize consumption by sorting products and services into four categories during global slowdowns . These are essentials , which are necessary for survival , treats which are indulgences whose immediate purchase is considered justifiable , postponable whose purchase can be reasonably put off and expendables , which are perceived as unnecessary or unjustifiable .
Recessions always push brands to cut costs through reduced capital spending , research , marketing , and communication activities , and even layoffs . But these strategies have never paid off as they still find themselves in tighter financial situations that force many that see a slowdown as a crisis to fall and never rebound .
So , what should brands do to remain afloat during the current global slowdown while at the same time adapting to changing consumer lifestyles ?
Research and history teach us that brands should look at the economic downturn as an opportunity . There are several tactics that have been tried and tested which can I recommend for brands to help weather the storm .
Forbes avers that when the economy is in a flux is the time that we need to treat brands as an asset and to invest more in them through rebranding .
As indicated earlier , during downturns many brands react by cutting their budgets on advertising and marketing . It has , however , been proved that brands that decreased advertising got in a more difficult position on the market compared to brands that kept or increased their advertising budget .
Rebranding offers a better way to refine brands and improve their perception among critical stakeholders such as customers , investors and employees who are also faced with hard economic times .
These players are also facing same economic conditions and are less likely to spend more and more likely to look for brands for stability , a sense of ownership and belonging , and reassurance that they can rely on their trusted brands to provide great products and services .
“
In times of recession , the market witnesses changing consumer behaviors which companies must understand and align their brands to . The wave of bad economic news is undoubtedly eroding confidence and likely buying power , driving consumers to adjust their behavior .
Brand building can help create or support the overall brand story and is more emotional , and persuasive to customers and other groups . But a good longterm marketing strategy would be one based on a mix of emotional and rational communication .
The global economic slowdown also offers brands opportunity to rethink their customers decision journey . Unlike 15 years ago where there was limited information to be relied on by consumers when making buying decisions , times have changed , and a potential buyer is more aware and has many options to choose from . In short , the customer journey has moved from linear path to circular and buyers will take more time gathering information on several brands before deciding which ones to drop .
During a crisis , consumers will even take more time on gathering information in the active evaluation stage than they do during other periods . They will take an extra effort to look at which alternatives are available , especially for products that the consumers need to be more heavily involved in , where the decision is complex , and the perceived value / risk of decision is high . Creating top of mind awareness through advertising will therefore help .
And there is no opportune time to ramp up advertising campaigns than during the economic slowdown . The advertising budget makes up a big part of the overall marketing budget , meaning that when marketing gets cut in a lot of companies during a recession , the ad market becomes less crowded . The prices of ad spaces also start falling , which means an excellent opportunity to increase share of voice .
The other tactic is the use of power of consistency . Consistency is an essential part of rebranding which increases the value of your company by fostering equity and recognition . A consistent brand creates a strong , recognizable image in your customers ’ minds that builds awareness and loyalty .
This is also the time for brands to play balanced and smart if they are to successfully implement a long-term marketing strategy that will see them thrive in the face of the economic downturn .
This calls for a marketing investment strategy backed by data and robust metrics in tracking and reporting . When research is prioritized and insights shared with the broader team , brands can adapt plans to reflect the dictates of a changing marketing landscape as the recession takes shape .
Brands will also find it useful to adopt a multichannel marketing campaign to optimize sales and revenue performance . This requires proper messaging at the right time , with the right offer , to the right customer .
Brands can be able to leverage innovative digital technologies to streamline media buying , creative messaging , and analysis to generate scalable cross-platform advertising campaigns that make an impression .
At Ipsos in Kenya , we help brands to energize their innovations through datacentric research that offers insights on changing consumer lifestyles and the market landscape in different economic scenarios .
Our range of social marketing research offerings help brands take the best course of action to protect their investments and the hard-earned equity won in their advertising and brand campaigns . This helps brands to build and safeguard consumer trust and loyalty to grow and rebound in the face of the current economic slowdown .
Enock Wandera currently serves as the Chief Client Officer at Ipsos Limited . You can commune with him on this and related matters on mail via : Enock . Wandera @ ipsos . com .