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Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP
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Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP

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Peste 150 de tineri din agenţii şi din departamentele de marketing ale clienţilor au luat parte,la evenimentul organizat de IAA Young Professionals pe tema strategiei şi eficienţei în comunicare, ce a …

Peste 150 de tineri din agenţii şi din departamentele de marketing ale clienţilor au luat parte,la evenimentul organizat de IAA Young Professionals pe tema strategiei şi eficienţei în comunicare, ce a avut loc joi, 12 martie, la IAA House.

„Strategia, în mintea unui client, înseamnă atenţia coordonată a întregii echipe: de la agenţie la echipa de vânzări”, a spus Călin Clej. El le-a recomandat tinerilor prezenţi la eveniment să se folosească de „word-of-mouth” şi să încerce să-i angajeze pe consumatori în comunicarea cu brandul. De asemenea, le-a sugerat să pună în practică cele mai curajoase idei, profitând de circumstanţele unei „perioade pilot”.

„Vă puteţi permite să pierdeţi consumatori loiali pentru că puteţi să-i recâştigaţi cu argumente legate de preţ. Lumea se uită acum la criterii raţionale”, a spus Marketingul Managerul PepsiCo. „Este momentul să vă daţi peste cap şi să veniţi cu lucruri absolut revoluţionare. Cei de pe poziţia mea abia aşteaptă să vadă şi altceva decât lacrimi, credit crunch şi dobânzi care cresc”.

Cât despre propria strategie de marketing, Călin Clej a declarat că a reorientat o parte din bugetul de media spre activităţi care urmăresc rezultate pe termen scurt, cum ar fi promoţiile. El a adăugat că mediul online nu se numără printre cele mai eficiente canale de comunicare în perioada de criză, promovarea la raft fiind recomandată în acest caz.
---- copyright: Calin Clej; All rights reserved ----

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  • 1. Target audience: young proffessionals from marcomm, juniors / middle both from agencies and clients Key topics: 1 . What is Strategic Planning through the eyes/mind of a client (role, vision, aplicable definition in one phrase – personal touch) 2 . Effectiveness during crisis time / the “what if” paradigm from “optimistic” marketing model to the new one IAA Young Professional Forum March 12 th , Bucharest
  • 2. It's the focused examination of your interactions and tactics and products and pricing that, when combined, determine what and how people think about you. 1.
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  • 13. Digital
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  • 16. Some questions for the audience… <ul><li>How many of you believe times are going to get tougher in this country over the next 12 months? </li></ul><ul><li>How many of you have changed your personal purchase patterns or rethought a major purchase in the past few months? </li></ul><ul><li>How many of you have had, or are facing, marketing budget cuts in your businesses? </li></ul><ul><li>Why do you think marketing budgets are being cut? </li></ul>
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  • 18. How is he/she feeling ? The financial crisis has given a new dimension to the consumption crisis Lost of trust and confidence in the ‘big institutions’ and some- how the blame that their greed is impacting deeply the way he/she will have to live and behave in the next 12-18 months. From denial to survival A quick shift from a state of ‘this will be shortly lived and we will be back to economic prosperity soon’ – to already measures in place ‘to help me get through this’ From feel good to feel sure/secure A strong sense of reassurance and guarantee in the way they spend every penny
  • 19. The PIMS Research Project Objectives and methodology of research Previous research (2001, ~ 1000 business units) looked at recessions and the subsequent recoveries. PIMS (Profit Impact of Marketing Strategies) looked for markets undergoing the following 5-year pattern, and looked at three measures for performance: Recession Recovery <ul><li>Average inflation-corrected return on capital employed (ROCE) during recession </li></ul><ul><li>Increase in inflation-corrected ROCE in first two years of recovery </li></ul><ul><li>Market share change in first two years of recovery </li></ul>
  • 20. Results of research conducted pre 2000 PIMS compared businesses that cut costs, maintained costs, and increased costs (as a % of market size) in the following cost areas, with the following results: Key question: how have the results for marketing, R&D, and new products stood the test of time? There are ~100 new recession + recovery observations up to 2003-7
  • 21. During the recession, cutting or increasing marketing budget is likely to have a very similar effect on Capital Returns, but during market recovery the differences are staggering. ROCE During ROCE After Market Share After
  • 22. These findings, which may seem counterintuitive, can be explained by four basic factors. <ul><li>Brands exist because of the relationships consumers have with them </li></ul><ul><ul><li>More than two thirds of sales are explained by strong brand relationships. </li></ul></ul><ul><li>The relationship between Share of Market and Share of Voice </li></ul><ul><ul><li>The connection between share of market (SOM) and share of voice (SOV) has been proven. The higher your share of voice compared to your actual market share, the more likely your brand is to grow its market share in the subsequent year. </li></ul></ul><ul><li>The relationship between brand size and profit margins </li></ul><ul><ul><li>Because they enjoy advantages of scale , big brands enjoy an advantage over smaller ones in terms of attracting repeat purchase and recouping their marketing investments and benefiting from the brand multiplier effect. </li></ul></ul><ul><li>Reduced “noise” during recession provides opportunities </li></ul><ul><ul><li>A new product launch may actually have greater impact during a recession than at other times. Competitors may be late in countering a new product. </li></ul></ul><ul><ul><li>And, because media costs are likely to be lower, advertisers should get more bang for their buck . These savings may be compounded by the relative ease of cutting through in a less cluttered atmosphere. </li></ul></ul>
  • 23. R 2 = 0.74 0% 50% 100% -30% 0% 30% % losing share (354 brands grouped on the basis of relative ad spend) Media Pressure (Share of Voice - Share of Market) Investment in brand reduces risk of brand declines, even in tough economic times
  • 24. Whereas investing disproportionately to market share can have significant gains both long and short term R 2 = 0.77 0% 100% -10 0 10 Media Pressure (Share of Voice - Share of Market) % gaining share (354 brands grouped on the basis of relative ad spend)
  • 25. What do we need to consider when we think about our brand strategy in these tough times… <ul><li>The nature of the category we operate in </li></ul><ul><li>The size of the category we operate in </li></ul><ul><li>The inclinations and motivations of our customers </li></ul><ul><li>The strength of our brand </li></ul><ul><li>The likely competitor response </li></ul>
  • 26. The nature of the category <ul><li>People are likely to postpone purchases of high ticket , durable items like household appliances and cars. (evidence already clear) </li></ul><ul><li>Base products with fewer options are likely to sell better than those with lavish features (unless you are willing to include these as an incentive at no extra cost). </li></ul><ul><li>Habitual grocery purchases are likely to be reexamined as shoppers become more price sensitive. Store brands , and value brands , may enter the consideration set. </li></ul><ul><li>On the other hand, affordable luxuries may see an increase in demand as people trade off travel and designer clothes in favour of cheaper indulgences like chocolate, alcohol and cosmetics. </li></ul><ul><li>Service categories such as telecommunications and banking where barriers to exit exist, may be less affected than others, since most recessions are relatively short-lived. </li></ul>
  • 27. The size of the category <ul><li>Like it or not, your potential return on investment is largely dictated by the size of the category in which you compete. </li></ul><ul><li>A one-point share gain in share produces different returns in a million-Euro category than a billion-Euro category. </li></ul><ul><li>Findings from the U.K.’s Institute of Practitioners in Advertising dataMine suggest that to gain one point of market share , advertisers should set SOV 10 points higher than SOM. </li></ul><ul><li>In a category that is growing (or is likely to grow as a result of the recession), the long term gain may justify the investment. But in small or declining categories, where the long-term return will be lower, brands might do better to cut spend and ride out the storm. </li></ul>
  • 28. The inclinations and motivations of our customers <ul><li>In most categories, and particularly during a recession, people want to believe they are making the right purchase decision . </li></ul><ul><li>So unless people simply cannot afford to buy their preferred brand or you are dealing with inveterate price shoppers, the key issue is perceived value . </li></ul><ul><li>Do consumers believe that your brand offers a better value than the competition? Provided that its price is in an acceptable range, people will be more likely to bet on a known and trusted brand than a cheap one. What is the risk of the wrong decision? </li></ul><ul><li>During a recession you need to remind people why your brand is worth the price by focusing on functional advantages . </li></ul>
  • 29. Difference categories would react differently based on the importance of the brand and price as purchase drivers Categories more vulnerable to Pure PRICE Purchasing LESS Price Driven Brand Very Important Brand Not That Important MORE Price Driven Categories less vulnerable to Pure PRICE Purchasing
  • 30. Different categories would dictate different strategies… Mineral Water Motor Fuel Apparel IT Hardware IT Software Grocery Stores Airlines Plus how long is the inter-purchase interval? LESS Price Driven Brand Very Important Brand Not That Important MORE Price Driven Face Care Mobile Handsets Credit Cards Cars Luxury Cars Banks Insurance Fragrances Nappies Fast Food Beers Coffee Hair Care Detergents Deodorants Oral Care Body Care Soft Drinks Spirits Telecoms eCommerce
  • 31. The strength of our brand <ul><li>In difficult economic times, a brand must reinforce the attributes that make it appealing and differentiated in the eyes of existing customers. </li></ul><ul><ul><li>Small or niche brands would do well to focus investment on the core brand offering rather than spread existing resources too thin. </li></ul></ul><ul><ul><li>Larger brands may find more scope in category extension , particularly if the new category offers better growth prospects. </li></ul></ul><ul><ul><li>Weaker brands that offer acceptable products should be able to weather the storm . </li></ul></ul><ul><li>What are customers looking for? </li></ul><ul><li>Is their definition of value changing? </li></ul>
  • 32. The likely competitor response <ul><li>Of course, if every brand increased investment during a recession, SOVs would remain consistent and little would be achieved. </li></ul><ul><li>While that is unlikely to happen, you must consider the probable response of your key competitors. </li></ul><ul><li>Don’t price promote unless you can cut costs or live with lower margins. </li></ul>
  • 33. Some other thoughts… <ul><li>Communicate and demonstrate empathy and a desire to work with consumers (CRM) as they have more potential so see you as an ally rather than a villain in tough economic times. </li></ul><ul><li>Smaller pack sizes enable consumers with little ready cash to still buy their favourite premium brand, thus maintaining loyalty and preventing the price fighters from taking full advantage of the situation. </li></ul><ul><li>Emphasise functional, down to earth benefits – emotional affinity loses out to an empty stomach every time, so focus on how your brand can be of real, direct assistance to cash-strapped consumers in this difficult time. </li></ul>
  • 34. And Finally… <ul><li>When a brand’s Share of Voice is greater than its Share of Market, it is likely to grow its market share in the coming year. </li></ul><ul><li>History has shown that brand investment during a downturn reaps long term rewards, but not everyone can afford this investment. </li></ul><ul><li>It is crucial to question what each element in your marketing plan is intended to achieve. </li></ul><ul><ul><li>How will it encourage brand loyalty? </li></ul></ul><ul><ul><li>What barrier to purchase does it address? </li></ul></ul><ul><ul><li>Will it make the brand seem worth paying more for, or will it create a belief that this is a cheap brand? </li></ul></ul><ul><ul><li>Because the stakes are higher when money is tight, you need to feel confident that your investment will provide a good return. </li></ul></ul>
  • 35. <ul><li>The key to success during a downturn is maintaining focus. </li></ul><ul><li>We need to make the most of every Euro spent in support of our brands if we hope to maintain strong consumer relationships. </li></ul><ul><li>Those that succeed should then be well positioned to take advantage of weaker competition when the good times return. </li></ul><ul><li>REMEMBER </li></ul><ul><li>Recessions come and go… </li></ul><ul><li>Brands are for life!!! </li></ul>And (really) Finally…

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