1 | managing your brand in a recession 25th march 2009
Post on 17-Dec-2015
215 Views
Preview:
TRANSCRIPT
4 |
Changing consumer demand
Losers and Winners (or the relatively unscathed)
Tips in a downturn
Today
6 |
“In a crises, you can downsize, right size, focus and outsource, but, you can't fire the brand.”Anonymous
7 |
“Instead, brands need to become more effective and efficient, in order to not only survive, but win”Interbrand
9
Influencing choice through customer perceptions = Economic value
Brand Positioning
Touchpoints
Brand Perception
Decision Criteria
BehaviourSales & Profit
impact
Economic Value
A clear and
compelling brand
positioning…
…consistently
brought to life
through everything
you say and do…
…Raising awareness of
your differentiation and
emotional relevance…
…making the
case for your
brand over other
alternatives ,
influencing choice…
…which leads to price
premiums,
loyalty and advocacy…
…this increased
demand leads to
financial benefits…
…that creates brand
and shareholder
value…
If managed correctly brand can drive long term economic value
BGB Portfolio MSCI World S&P 500
Annual Average Return 4.73% 0.05% -0.92%
Standard Deviation 14.76% 18.02% 15.36%
Sharpe Ratio 0.07 0.00 -0.06
11 |
Back to the real world for a minute
Same flavourHigher priceMore preferred
Excellent coffeeUnbranded
12 |
…but that behaviour is now changing
Similar flavourLower priceNo less preferred
Same flavourHigher priceMore preferred
+14%+1,000 outlets
-50%-1,000 outlets
13 |
Changing consumer demand
Losers and Winners (or the relatively unscathed)
Actions in a downturn
Today
15 |
Spending patterns are shifting
Delay Household durables (e.g., electronics, appliances, and furniture)
Stop Travel (e.g. airlines, resorts, casinos, holiday companies)
Reduce Personal durables (e.g. clothing)Indulgences (e.g. premium coffee)
Leisure services (e.g. Dining out, salon treatments)
Switch Household cleaning products Groceries
(Booz & Company September 2008: 1,000 households )
16 |
Brands that have fostered a sense of allegiance with their consumers are more likely to withstand an economic downturn.
17 |
Changing consumer demand
Losers and Winners (and the relatively unscathed)
Tips in a downturn
Today
21
Winners
Bird's custard +20%
Fray Bentos +41%
Vimto +11%
Board games +200%.
(Source: Guardian March 2009: Figures relate to Asda sales)
22
Winners
Where can you get a lobster for a fiver?
The answer is Lidl.
Mary Morgan, Corporate Lawyer, Clapham
23 |
Point of View on changing consumer demand
Losers and Winners (and the relatively unscathed)
Tips in a downturn
Today
24 |
1) Know your consumers
Source: “Reacting to Recession” M&C Saatchi July 2008
Crash Dieters
Treaters
Scrimpers
Abstainers
Justifiers
Clothcutters
Ostriches
Vultures
27
3) Don’t abandon long term strategy
1990 - Trebled marketing investment
1991900% profit increase$3 bnNike #1
28
4) Create and communicate differentiation
Be engaging
Reinforce differentiation
Build value back into the brand
Don’t price it out
29
5) Build value in, don’t price it out
Build value proposition from the core brand proposition
Manage the balance between Quality and Value
Drive value from the heart of the brand.
30
6) Make it personal
Less personal = Less loyal
Customers need to identify with the brand
Become indispensible
32
7) Defend against own label
Differentiate on a visceral level
Leverage the brand personality
Elevate from a rational decision
Focus on tangible POD
Resist making price dominant message
33
7) Defend against own label
Differentiate on a visceral level
Leverage the brand personality
Elevate from a rational decision
Focus on tangible POD
Resist making price dominant message
34
7) Defend against own label
Differentiate on a visceral level
Leverage the brand personality
Elevate from a rational decision
Focus on tangible POD
Resist making price dominant message
35
7) Defend against own label
Differentiate on a visceral level
Leverage the brand personality
Elevate from a rational decision
Focus on tangible POD
Resist making price dominant message
36
8) Know your retailer – ‘partnership’
How does my brand help your brand?
What journey do shoppers of my brand take through your store?
How can my brand help drive value based on your brand proposition?
Give ideas for customising your promotions in our category in this time
top related