The document discusses marketing strategies during and after the COVID-19 pandemic. It suggests that the pandemic may last 12-18 months until a vaccine is developed and that businesses should prepare for continuous disruptions. Industries like retail, travel, and oil will be significantly impacted, while e-commerce, healthcare, and local production may see growth. Marketers are advised to assess the impact on their business, develop strategies considering changing consumer behaviors and priorities, and focus on essential products and services while improving affordability and digital offerings. Going forward, brands should bolster trust, position for economic recovery, and identify new opportunities from changes brought about by the pandemic.
4. And China is seeing the second wave of the virus, already
5. Imperial College has estimated 12-18 months
Until there is a vaccine or herd immunity, the base case scenario is a continuous
up and down of disruptions in how we work and live for the coming 2 years,
resulting in new habits long after.
*Imperial College estimate: period impacted 12-18 months (Summary report @
ft.com)
11. "You never want a serious crisis to go to waste…
It's an opportunity to do things you thought you
could not do before."
Rahm Emanuel - Barack Obama's Chief of Staff
27. Health and Safety will be key, for all industries
Marginal
Increase in
Personal
Transportati
on
Decline in
Shared
Mobility
28. Are you gonna walk into a restaurant on 4th May,
or
Would you rather order from an online app, that
shows you the temperature of the chef who
prepared your food?
34. 34
Assess the impact with scenario planning
Scenario 3
No change in cost structure
with XX % drop in revenue
Scenario 1
Marginal Drop of X% drop in
revenue with 0.8X% drop in
cost
Scenario 2
Marginal Drop of X% drop in
revenue with 0.5X% drop in
cost
37. 37
Organisations and Brands should prepare now
for a possible long-term shift in consumers’
values and attitudes.
38. 38
Marketers may forget that rising sales aren’t
caused by clever advertising and appealing
products alone.
Purchases depend on consumers’ having
disposable income, feeling confident about their
future, trusting in business and the economy, and
embracing lifestyles and values that encourage
consumption.
39. 39
The slam-on-the-brakes
segment feels most vulnerable
and hardest hit financially.
Pained-but-patient consumers
tend to be resilient and
optimistic about the long term
but less confident about the
prospects for recovery in the
near term or their ability to
maintain their standard of living
The live-for-today segment
carries on as usual and for the
most part remains unconcerned
about savings.
Comfortably well-off
consumers feel secure about
their ability to ride out current
and future bumps in the
economy.
Understanding Recession Psychology
40. 40
Consumer
Priority based
Products &
Services Sorted
into
Four
Types
Essentials are necessary for
survival or perceived as central to
well-being
Treats are indulgences whose
immediate purchase is
considered justifiable
Postponables are needed or
desired items whose purchase
can be reasonably put off
Expendables are perceived as
unnecessary or unjustifiable.
43. 43
Managing Marketing
Investments
Customers are likely to
become price sensitive
and less brand loyal.
Building and
maintaining strong
brands—ones that
customers recognize
and trust—remains one
of the best ways to
reduce business risk.
Surgically trimming the
budget is easier to do
during a downturn than
in prosperous times.
Assess
opportunities
Your strategic
opportunities will
strongly depend on
which of the four
segments your core
customers belong to
and how they
categorize your
products or services
Companies should
concentrate their
marketing resources on
maintaining relevance
to core customers in
order to sustain brands
through the recession
and into the recovery
Allocate for the long
term
Marketers that drift away
from their established
base may attract some
new customers in the
near term but find
themselves in a weaker
position
It’s critical to track how
customers reassess
priorities, reallocate
funds, switch brands, and
redefine value.
Balance the
communications
budget
Typically, the share of the
advertising budget
devoted to broadcast
media shrinks, whereas the
share that goes toward
efforts with more-
measurable results, such
as direct marketing
campaigns and online
ads, grows.
Digital advertising in
particular is targeted and
relatively cheap, and its
performance is easily
measured.
44. 44
Bolster trust without
impacting quality of
product/service
Position for recovery by
focussing on what is going to
be important for your
customer
Identify new
product/customer segments
due to Covid19
Improve Affordability with
offers
If a premium brand, look at
a sub brand with new
affordable offering
46. 46
Switching From
Defense to Offense
It’s time to prepare for the next
phase.
Industries that were stable for a
decade are now wide open to
turn around. Fast and decisive
movers will win
47. Key Takeaways
● Be prepared for the pandemic to continue for some more time, and for the second wave
● Lots of companies are going to take hard calls - and you may have to, as well
● India is still going to grow - but will require your business model to pivot
● Adapt, keeping in mind health, safety and digital transformation
● Do Scenario Planning and define your organisation and brand strategy
● Understand recession psychology and tailor your tactics
● Go offensive, be digital first and Act on it