Recession is certainly unwelcomeable for branding industry. Howerver ,recession may be look edupon as a period for brand introspection . It is a period of test of brand's health. However ,there are some product categories whose consumption is recession proof. However ,many corporates may tend to spend less during the recession cycle, some brands can get a long lasting mind space by spending a bit more during the recession period as noise levels would be low. Every brand must have it's own suitable strategy to combat recession.
Deepak Parashar, Asst. Manager- Marketing, SKF India Limited - February 4, 2008
In a recession economy is where the losers and the winners are finally distinguished.
“ The recession” will act as a brand accelerator. Those brands who carefully harnessed their brand equity will obviously thrive and the others brands who where lethargic is not even worth mentioning their fate.
David Sanchez, brand consultant, HyperBrand - February 4, 2008
I think the recession will force lot of companies to communicate about (or to find) their brand soul. More that ever a brand is not just an empowering tool, but values and concrete actions that can create individuals adherence. Finally the matter is more about the having a heart than smartly allocate the budget.
Alessandro Buffoni, International Marketing, L'Oréal - February 12, 2008
No question: brand up! When consumer confidence is low, it's more important than ever to focus on qualities that make your brand stand above the rest. Hopefully, marketing has layed the groundwork prior to the economy's downturn so when consumers do spend their limited discretionary income, they are choosing your products or services - and feel good about it in the process. Ikea, which just opened its doors today in the Cincinnati market, is the perfect example of the power of the brand. 11,000 people rushed into the store during the first hour alone. The Cincinnati Enquirer quoted one of the shoppers: "I'm Danish...so part of it is getting stuff that reminds me of home." The Ikea brand - consistent, focused, trendy and affordable - breeds proud Ikea loyalists.
The crisis requires to 12,45€ (Shoes shop in Oporto)
Context planning Context Consumer Bad Economic situation Low consumer price inflation Unemployment Low Gross domestic product CRISIS AND RECESSION Low purchasing power Increase of criminology Instability of Government Depressing times Financial crisis Decrease credibility of brands More pessimism Instability of Oil prices Banks privatization Housing Crisis More rational consumer Increase of cocooning Low trust
Now, people save time and are looking for their purchases in different shops, spending more time looking at what gives them more advantage in certain products.
The budget of the Portuguese is increasingly devoted to food and not for hygiene products or drugstore. At the same time, they are cut into leisure activities, investing more in times of homemade consumption.
The paradigm of the Portuguese consumer is changing:
"To buy detergents, I choose Pro (DOB). It is cheaper and better than Sonasol, which smells like fish, as my husband says. I only use DOB´s. Brands are a mistake. VêGê Oil? It’s the same that others, only changes the packaging." Low Cost Generation, Vox pop Portuguese newspaper.
In several sectors, the traditional brands lost ground to low-cost alternatives.
The tourism (hotels, airlines, rent a car) and clothing (Zara and H&M) are perhaps the most advanced in this pressure for lower prices.
Other sectors where it will attend a small revolution is the automobile. The group Renault-Nissan is already focusing on Dacia, the Indian Tata is producing the cheapest car in the world and Fiat announced in 2010 that will launch a low cost brand.
And what’s about Ikea? Design at low prices.
Airlines Supermarkets Car insurance Rent a car Airlines Supermarkets hotels Cable tv Airlines Communication Automobile Supermarkets
So, What role is reserved for marketers in the current time of economic crisis?
The turbulence of the economy can also be seen as an opportunity for brands and for agencies.
Opportunity to reinvent the industry, products and services.
Need to know how to communicate them, in order to meet the expectations of consumers .
In terms of retail, there was the explosion of brands and product discount, but that's not enough. We need to do a job with consumers who are not confined to the price. There is need to establish brands with new levels of confidence among consumers, and here I speak of reputation and trust.
We know that many consumers are already hitting the pocket, but they will continue as always to make savings and more rational choices in certain products or services and then doing something that gives them more pleasure, and then spend their money savings.
“ Portuguese people love Jumbo because Jumbo loves the Portuguese people" is the claim of Jumbo in the campaign developed by BBDO Portugal. The main objective demonstrates that the Jumbo worries about all the Portuguese, and is attentive to their needs, which is at their side to help and support. The communication helps to create empathy with people, especially at a time of crisis in which people need distraction, moments of entertainment.
Agency – BBDO Lisbon
***Jumbo is a hypermarket brand
Brand - Pingo Doce Category – retail Recently, this supermarket brand changed it’s positioning and claim to “Feels good pay so less” “ Enough promotions, loyalty cards, or coupons. We want lower prices”
With this bet, the Natural shape Luso*** wants to reach the entire population and attract new consumers, who seek the benefit of Luso but don´t like flavoured water. But if this product responds to the demands of consumers, the objective is to be more economic too.
Brand - Luso natural shape Category – beverages ***Luso is a water brand
None of houses, cars or pots - American advertisers and agencies are offering cash prizes to encourage consumers to buy. The trend is related to the economic crisis and would be a resumption of a popular form of promotion during the years of depression, the decade of 30, when cash prizes were distributed by advertisers through radio programs and competitions in magazines and newspapers
Volkswagen, Crispin Porter @Radical.Media, for example, produced a series about race with “wannabes professional pilots” in which the winner has led USD 100 thousand of VW.
Online travel company Zuji Australia believes everyone should be able to travel more. As part of their “Helping holidays happen” campaign, Zuji produced and sold their won household items such as baked beans, toothpaste and toilet paper, and sold them at “ridiculous low prices” to allow people to save for their next trip.