Less is more. Brand Building with a small budget

LESS IS MORE BRAND BUILDING WITH A SMALL BUDGETΠαρασκευή, 27 Φεβρουαρίου 2009

BIG, DIFFERENT OR SMALLΠαρασκευή, 27 Φεβρουαρίου 2009

“It is not the strong, nor the intelligent who survive, but those who are quickest to adapt.” Charles DarwinΠαρασκευή, 27 Φεβρουαρίου 2009

THE MOST CHALLENGING BUSINESS ENVIRONMENT FOR YEARSΠαρασκευή, 27 Φεβρουαρίου 2009

SAY THE ‘R’ WORD • Recessions caused by liquidity problems are particularly severe. In recent months we have seen major financial institutions and the world’s stock markets collapse. • Some companies do succeed in recession. They see it as an opportunity for growth. • Your company needs to estimate the profitability of marketing spend. The time is now.Παρασκευή, 27 Φεβρουαρίου 2009

CUT THE MARKETING BUDGETΠαρασκευή, 27 Φεβρουαρίου 2009

CUT BUDGETΠαρασκευή, 27 Φεβρουαρίου 2009

FLIGHT, FRIGHT OR FIGHTΠαρασκευή, 27 Φεβρουαρίου 2009

Why? • Is your industry recession- proof or recession sensitive? • Where does your company place on the scale? • How can marketing help grow profit? • Can you deliver a knock-out blow to competition?Παρασκευή, 27 Φεβρουαρίου 2009

RECESSION EXIST ON(LY), IN THE MIND OF THE CONSUMERΠαρασκευή, 27 Φεβρουαρίου 2009

Changes in consumer behavior depend not so much on how much money people have, but on how they view that amount. It depends not so much on their current financial situation, but on their expectations.Παρασκευή, 27 Φεβρουαρίου 2009

Recession-proof • They expect their income to grow. They’re confident about their income and savings. • A recession does little to change their behavior. • Enjoying the material benefits of life is important to them, so they will keep buying top of the line brands.Παρασκευή, 27 Φεβρουαρίου 2009

Solution-seeker • Even in deep recession this group is optimistic about their future. They believe they will keep their jobs. • Their life is not so much financial gain as achieving what they see as the good life.Παρασκευή, 27 Φεβρουαρίου 2009

Security-seeker • These people are obsessed with financial security. • They are looking for more than just a “good buy”. • Their need for security leads them to well known and trusted brands that offer reassurance and stability.Παρασκευή, 27 Φεβρουαρίου 2009

Vulnerable • These people have opposing life goals. They want the better things in life for the social status they bring. • But at the same time they feel the need to be cautious and protect themselves. • They may switch to buying products and brands that are more affordable.Παρασκευή, 27 Φεβρουαρίου 2009

PUT AN END TO TELE-TERRORΠαρασκευή, 27 Φεβρουαρίου 2009

WINNING STRATEGIES IN RECESSIONΠαρασκευή, 27 Φεβρουαρίου 2009

No more Mr. Nice Guy • Recession is an opportunity to put weaker competitors out of the market. • Review your competition to see which brands are vulnerable. Is the cost of additional marketing support less than the potential gain? • Research will help you here. A decline in the strength of consumer’s relationship with the brand can be seen in research after 6 months.Παρασκευή, 27 Φεβρουαρίου 2009

Harvest the Cow • Companies that increase marketing spend in recession increase their market share. • Higher ad-spend achieves greater share gains during “recession” times. • New and improved products have more consumer impact when competitors are weak.Παρασκευή, 27 Φεβρουαρίου 2009

High Value • Consumers always look for value for money, especially in recession. • Value doesn’t mean cheap. Value for money can be defined as (relative) price times (perceived) quality. • You can improve your brand’s value by increasing its perceived quality at the same price.Παρασκευή, 27 Φεβρουαρίου 2009

INVEST IN CREATIVITYΠαρασκευή, 27 Φεβρουαρίου 2009

CREATED DURING RECESSION TIMESΠαρασκευή, 27 Φεβρουαρίου 2009

HOLLYWOOD DOES WELL IN RECESSIONΠαρασκευή, 27 Φεβρουαρίου 2009

Emotive Persuasive Informative 60 45 30 15 0 Sales Market Share Profit Loyalty Source: Binet, Less and Field: Marketing in the Era of Accountability Base: 880 Campaigns 1979-2006 APPEAL TO THEIR EMOTIONSΠαρασκευή, 27 Φεβρουαρίου 2009

On Target • Multi-channel campaigns have better success rate (65%) than single channel campaigns (58%). • Don’t spread your budget too thinly across too many channels. The crucial metric in every channel is always the share of voice relative to the competitors.Παρασκευή, 27 Φεβρουαρίου 2009

THE MEDIUM IS THE MESSAGEΠαρασκευή, 27 Φεβρουαρίου 2009

OK, WE’RE DESPERATEΠαρασκευή, 27 Φεβρουαρίου 2009

Where to cut • Drop support for stagnant brands. • Exploit seasonality to make cuts in off-peak sales periods. The sale loss will be lower. • Small brands often take a disproportionate share of marketing spend because they are trying to grow, but bigger brands are likely to deliver bigger returns in the short term.Παρασκευή, 27 Φεβρουαρίου 2009

Great advertising can sell 20 times more than average advertising. The recession will put extra pressure on the advertising budget, you need a bigger bang for every cent.Παρασκευή, 27 Φεβρουαρίου 2009

CHOOSE AN AGENCY THAT LOVES EFFIESΠαρασκευή, 27 Φεβρουαρίου 2009

ENGAGE THEM WITH YOUR BUSINESSΠαρασκευή, 27 Φεβρουαρίου 2009

Corporate Marketing Communication Advertising Strategy Strategy Strategy Strategy DEFINE ADVERTISING EFFECTIVENESS IN TERMS OF YOUR CORPORATE GOALSΠαρασκευή, 27 Φεβρουαρίου 2009

Written Briefs • Everything flows from your brief: it is the platform for the communications strategy and the internal creative brief, for the creative work and the media mix. • The more clearly you key business issues and objectives are defined, the more likely is to get effective work. • Written briefs save you time and money.Παρασκευή, 27 Φεβρουαρίου 2009

Building a bridge • Briefing an agency is like building a bridge. • Begin by explaining where you want the bridge to start from. That’s point A. • Then you would say where it should go. That’s point B. • Don’t tell them how to build the bridge, this is their job. They are the specialists after all.Παρασκευή, 27 Φεβρουαρίου 2009

Don’t use Creative to clarify Strategy • On average 75% of creative ideas go through three stages of approval, and 22% go through four. • Informal or sloppy briefing from junior members of the team, or changing requirements cost you time and money. • Set the objectives before the creatives start work and stick to them.Παρασκευή, 27 Φεβρουαρίου 2009

Judge Properly • Judge the work against the marketing and creative briefs. Does the work solves the business issue? • Expect the great work to go beyond the letter of the brief. The brief can only go so far towards the solution. • It is not the solution itself, there should always be a creative leap.Παρασκευή, 27 Φεβρουαρίου 2009

Use research wisely • Always bear in mind the limitations of pre-testing research. • The samples involved are often small, the work is usually shown in rough form with zero production values. Don’t delegate all responsibility to it. • Don’t use research as a drunk uses a lamp post - for support rather than illumination.Παρασκευή, 27 Φεβρουαρίου 2009

LEARN WHAT WORKS AND DO MORE OF THATΠαρασκευή, 27 Φεβρουαρίου 2009

Pay by results • If the agency’s campaign create a huge success for your brand, it will make a substantial amount of money. • But if your brand suffers, the agency will share your financial pain. • Your agency needs to cover its basic costs, then set KPI’s which together add up to 100% of remuneration above cost.Παρασκευή, 27 Φεβρουαρίου 2009

OPTIMIZING PRODUCTION EXPENDITUREΠαρασκευή, 27 Φεβρουαρίου 2009

Save up money • Production covers anything involved in the final delivery of creative ideas to selected media. • Add to this the hidden costs managing the process as well as what it may be hidden within the advertising agency’s creative fees. • Handling agency production in the right way can create 30% efficiencies.Παρασκευή, 27 Φεβρουαρίου 2009

Create efficiencies to reduce costs • Consolidate all your production in one place. • Managing Creative assets efficiently. • Outsource to more cost effective markets. • Large savings can be achieved through central buying. • Ensure fewer mistakes in final production.Παρασκευή, 27 Φεβρουαρίου 2009

IMPROVING SALES PERFORMANCEΠαρασκευή, 27 Φεβρουαρίου 2009

Marketing that sells. • Traditionally Marketing and Sales exist in an adversarial relationship to one another. • Where there is the least amount of alignment between the two functions performance is clearly at risk. • Gaining alignment among two traditionally competing camps is no easy task.Παρασκευή, 27 Φεβρουαρίου 2009

Difficult Questions • Should I cut low performers or invest in them? • How can I get more of my mediocre performers up to the learning curve faster? • How can I ensure that I don’t lose my top performers? • How do we maintain a value sell and not discount by cutting price? • How can I better equip my sales force with the marketing tools they need so they ‘ll spend more time talking to prospects and less time prepping?Παρασκευή, 27 Φεβρουαρίου 2009

YOU SEE A CRISIS!Παρασκευή, 27 Φεβρουαρίου 2009

“I was asked what I thought about recession. I thought about it and decided not to take part.” Sam Walton, founder of Wall-MartΠαρασκευή, 27 Φεβρουαρίου 2009

THANKS antonis.kocheilas@loweworldwide.comΠαρασκευή, 27 Φεβρουαρίου 2009

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Less is more. Brand Building with a small budget

by Antonis Kocheilas on Mar 20, 2011

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