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Stefan Chiritescu_Recession And The Consumer - Prezentare Workshop IAA YP
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Stefan Chiritescu_Recession And The Consumer - 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 ...

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.

„Pentru România, «in store-ul» e zona unde trebuie să construim cel mai mult”, a spus şi Ştefan Chiriţescu, Head of Planning la Graffiti BBDO. Potrivit acestuia, marile lanţuri de retail câştigă teren în faţa brandurilor deoarece pot oferi produse premium la preţuri foarte bune.

Criza nu va dezechilibra puternic piramida de consum în România deoarece, spre deosebire de consumatorii din ţările din vestul Europei, care au renunţat la produsele scumpe, care le afirmă statusul, românii „au tăiat de peste tot”, de la baza piramidei.
---- copyright: Stefan Chiritescu; All rights reserved ----

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Stefan Chiritescu_Recession And The Consumer - Prezentare Workshop IAA YP Presentation Transcript

  • 1. Brands crisis-the crisis before the financial crash
  • 2. Brands needs a trade off to cope with the fact that - retailers can offer premium products at very affordable prices - retailers can decide what brands to have on the shelf -retailers can offer their own shopping experience
  • 3. Always steal choice away from competition Redefine your consumers as shoppers Have a great product Retailize your company Shopping for your product is as important as your product Retailization source
  • 4.
    • Less money
    • Less spending
    • Reassessing needs
    • Adjusting behavior
  • 5. Consumer Credit in Romania
    • Consumer credit has literally exploded in the past 2 years
    • Since December 2005, loans for periods longer than 5 years have grown 6 times
    • At the end of 2007, Romanians had borrowed 71.5 Billion Lei,
    • 78% of it was long term loan
    Billion LEI
  • 6. Consumer Spending Romania Romanians still spend more than half of their income on basic needs like food and beverage In 2008 durables accounted for only 22% of income spending Data: INSSE Report 2008
  • 7. Consumer Spending France By comparison, the French were allocating the same 22% on durables half a century ago
  • 8. Global Crisis but Local Reactions. A cultural conflict
    • Developed economies were already almost stagnant when the crisis hit
    • so they will probably slump into depression
    • Their consumers had already seen 50 years of savage consumerism
    • so they will accept to change their lifestyle to save wherever needed
    • But emerging economies were caught during a period of expansion
    • and the crisis will slow them down rather than turn them around
    • Besides, their consumers are still hungry for the abundance
    • they’ve just barely tasted and they won’t be so happy to go back to austerity
  • 9. Cutting Consumption
    • We expect consumers in developing countries like Romania
    • to adjust consumption on all levels of need rather than cut out completely some of the higher levels in order to insure abundance for the lower levels
    Before Crisis
  • 10. Cutting Consumption
    • We expect consumers in developing countries like Romania to adjust consumption on all levels of need
    • rather than cut out completely some of the higher levels in order to insure abundance for the lower levels
    Before Crisis During Crisis Developed Economy
  • 11. Cutting Consumption
    • We expect consumers in developing countries like Romania to adjust consumption on all levels of need
    • rather than cut out completely some of the higher levels in order to insure abundance for the lower levels
    Before Crisis During Crisis Developed Economy
  • 12. Cutting Consumption
    • We expect consumers in developing countries like Romania to adjust consumption on all levels of need
    • rather than cut out completely some of the higher levels in order to insure abundance for the lower levels
    Before Crisis During Crisis Developed Economy During Crisis Emerging Economy
  • 13. Cutting Consumption
    • We expect consumers in developing countries like Romania to adjust consumption on all levels of need rather than cut out completely some of the higher levels in order to insure abundance for the lower levels
    Before Crisis During Crisis Developed Economy During Crisis Emerging Economy
  • 14. The new Romanian consumer: pragmatic hedonist
    • We believe Romanians will adapt to the new economic realities
    • by finding alternative solutions to their needs
    • rather than short-listing needs and cutting out the fancier ones
    • Romanians will still go on holidays
    • but Greece will be replaced by Bulgaria
    • Romanians will still buy fancy phones
    • but the iPhone will be replaced by Samsung Omnia
    • Romanians will still buy cars
    • but Skoda will be replaced by Dacia
  • 15. The new consumer outside
  • 16. Paying more attention to what he is consuming Swapping segments / shift to a repertoire of brands consumption across different segments Looking for enhanced value /reassurance in the purchases made Restraining the consumption to essentials
  • 17. Shopping trips management Source: Nielsen, Shopping trends in UK, France, Germany – Feb 2009 Decreasing the number of shopping trips They love shopping …. They maintain the number of trips but purchase less Value to the limit !
  • 18. First in line, first to shoot
  • 19. First in line, first to shoot
    • Retailers are building on their existing advertising platform whilst adding on to it a price dimension
  • 20. First in line, first to shoot
    • SURPRISE STRATEGY
    • Builds on the existing communication platform
    • A dedicated communication architecture :
    • a founding film to shift the perception of the
    • consumer from Tesco as the biggest retailer to
    • that of the main discounter
    Tesco - UK
  • 21. First in line, first to shoot
    • In Germany, where the discounters have already strongly established their price superiority,
    • it is interesting to note that brands are trying to engage consumers from an emotional point
    • of view vs an only rational one.
    LIdl brand endline ‘Lidl, pays off’ consequently takes on several layers of meaning, the rational one : it costs you less, and the emotional one : it enriches your personal life. Lidl - Germany
  • 22. While there is a strong drive for value reassurance in the purchasing behaviour, there are still plenty of things that people do not want to trade and can spend money on. Here is a couple of drivers… What about brands ?
  • 23. rituals Regardless recession and a more planned buying behaviour, they still have their ritual brands
  • 24. 48% of the French declare they keep on buying regularly the brands to which they are really attached. This trend is even more important among the people between 15 and 19 (60%). We still love our rituals Source : CLM BBDO/OMG/Scanblog study
  • 25. We keep up with appearances Source : CLM BBDO/OMG/Scanblog study Despite evidence of frugal behaviour and a growing acceptance of being cheap there are some occasions when we’re absolutely NOT willing to compromise
  • 26. kids Kids
  • 27. Quality of meals Leisure time Toys – the area with the highest propensity of cost cutting They don’t cut on kids Source : The New York Times, April 2008
  • 28. And we don’t want to cut our precious time A sense of escape - people tend to maintain the spending on family and friends events but most probably trading on the overall arrangements (frequency, location, etc)
  • 29. Recap of key pointers
    • Consumers will still make high-value purchases, but will require greater reassurance . They are less likely to debt fund significant purchases.
    • Reconsider in store communication
    • Consumers will be massively price sensitive . They will price compare and use digital channels to facilitate this. Given every retailer is offering some form of promotion, consumers know they can access value.
    • But they also want entertainment and escapism . Brands that help them achieve great value and enjoyment are most likely to succeed .