THE PANIC OF 1907




Run on banks
NYSE fell almost 50%
Led to Federal Reserve System
THE PANIC OF 1907




Wrigley’s
THE GREAT DEPRESSION




Began with stock market crash of
1929; lasted through World War II
Stock prices fell 90%
Real dis...
THE GREAT DEPRESSION




Kellogg’s
THE GREAT DEPRESSION




Kellogg’s
Chevrolet
THE GREAT DEPRESSION




Kellogg’s
Chevrolet
Procter & Gamble
1970S RECESSION




Began November 1973 and
ran through March 1975
High inflation made worse
by war and oil crisis
Unemplo...
1970S RECESSION




Toyota
Procter & Gamble
FedEx
People magazine
Costco
Microsoft
1980S RECESSION




Started in July 1981 and ended
November 1982
Increased interest rates
Slowed the rate of growth
of mon...
1980S RECESSION




Walmart
Hershey’s
CNN
MTV
The Home Depot
2000S RECESSION




Began with collapse of dot-com
bubble in 2001
Post-September 11 economy,
Y2K, and accounting scandals
...
2000S RECESSION




Apple iPod
Crest Whitestrips
Swiffer WetJet
Axe body spray
EMPIRICAL EVIDENCE




Stopped advertising
 Loss in top-of-mind awareness
 Loss in awareness
 Negative attitude shift
 Low...
CURRENT ECONOMIC SITUATION




Recession began December 2007
Credit crunch, bankruptcy, bailouts, and housing crisis
Unemp...
CMO SURVEY




U.S. senior marketing executives who believe
that during an economic downturn, the
marketing budget is the ...
FRANK BLAKE, CEO, THE HOME DEPOT




“There’s absolutely a benefit in making changes
 during a downturn. As one of our ven...
BENEFITS




Brand-building is long-term
 Tough times are inevitable
“We never change the long-term
 strategy because of s...
MOST IMPORTANT ASSET
MOST IMPORTANT ASSET




Customers
SUPERBOWL XLIII
SUPERBOWL XLIII




Hyundai
 5 commercials
 2009 North American Car
 of the Year
 Introduced Genesis Coupe
 Over 450 milli...
SUPERBOWL XLIII



             Joel Ewanick               George Wallace




      Vice President of Marketing   Vice Pre...
SUPERBOWL XLIII
SUPERBOWL XLIII
THE OSCARS
THREE YEARS FROM NOW?
SALES RESULTS




January 2009
 General Motors   -49%
 Ford             -39%
 Chrysler         -54%
 Toyota            -32...
TO CUT OR NOT TO CUT?
WHAT YOU CAN’T CONTROL
WHAT YOU CAN’T CONTROL
WHAT CAN YOU CONTROL?




The Three M’s:
 Money
 Medium
 Message
MONEY




How do you get more
bang with less buck?
MONEY
MONEY




Advance Auto Parts
 Budget decreased
 Dumped sports sponsorships and national cable TV
 Increased network radio
...
MONEY
MONEY




Grocery Outlet
 Never advertised before recession
 Negotiate last-minute avails
 Buy unsold/cancelled inventory
...
MONEY
MONEY




Hyundai Dealers (Eastern Region)
V oted to increase ad budget
Afforded more media weight
 Sales outpace the rest...
MEDIUM




Focus on vehicles with proven ROI
Narrow target to best prospects and
hit them hard
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM




Chick-fil-A
 No change to strategy and spending
 Heavy users of outdoor
 Maintain a “wish list”
 General Motors...
MESSAGE




Construct your message for
the times
  Consumers don’t disappear–they
  change their behavior
 Value-conscious...
MESSAGE
MESSAGE




Hyundai
 Identified the real issue–consumer confidence
 Hyundai buyer assurance program
 Protection in case of...
MESSAGE
MESSAGE




GameStop
Two targets: gamers and gifters
 (moms, grandmas, aunts, etc.)
 Gamers: make sure you get the
 games ...
MESSAGE




Results
 Holiday sales up 22% from last year
 Best Buy game sales down 12%
 from last year
CONCLUSION
Aaf Pres For Karsten
Aaf Pres For Karsten
Upcoming SlideShare
Loading in …5
×

Aaf Pres For Karsten

275 views

Published on

Published in: Travel, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
275
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Aaf Pres For Karsten

  1. 1. THE PANIC OF 1907 Run on banks NYSE fell almost 50% Led to Federal Reserve System
  2. 2. THE PANIC OF 1907 Wrigley’s
  3. 3. THE GREAT DEPRESSION Began with stock market crash of 1929; lasted through World War II Stock prices fell 90% Real disposable income fell 28% Unemployment spiked at 25% 9,000 banks failed
  4. 4. THE GREAT DEPRESSION Kellogg’s
  5. 5. THE GREAT DEPRESSION Kellogg’s Chevrolet
  6. 6. THE GREAT DEPRESSION Kellogg’s Chevrolet Procter & Gamble
  7. 7. 1970S RECESSION Began November 1973 and ran through March 1975 High inflation made worse by war and oil crisis Unemployment reached 9% Inflation rose to 11% Stock market crashed almost 50%
  8. 8. 1970S RECESSION Toyota Procter & Gamble FedEx People magazine Costco Microsoft
  9. 9. 1980S RECESSION Started in July 1981 and ended November 1982 Increased interest rates Slowed the rate of growth of money supply Unemployment rate peaked at 10.8% Inflation hit 13.5%
  10. 10. 1980S RECESSION Walmart Hershey’s CNN MTV The Home Depot
  11. 11. 2000S RECESSION Began with collapse of dot-com bubble in 2001 Post-September 11 economy, Y2K, and accounting scandals Unemployment reached 6% Dow Jones worst one-week point loss in history
  12. 12. 2000S RECESSION Apple iPod Crest Whitestrips Swiffer WetJet Axe body spray
  13. 13. EMPIRICAL EVIDENCE Stopped advertising Loss in top-of-mind awareness Loss in awareness Negative attitude shift Lowest increase in sales two years after recession Increased advertising Market share increased 1.5% Nearly 5% increase in profits 275% increase in sales two years after recession Sources: Millward Brown, AAAA, and McGraw-Hill
  14. 14. CURRENT ECONOMIC SITUATION Recession began December 2007 Credit crunch, bankruptcy, bailouts, and housing crisis Unemployment rate 7.6% Drastic shift in consumer behavior since early 2008 “The worst financial crisis since the Great Depression”
  15. 15. CMO SURVEY U.S. senior marketing executives who believe that during an economic downturn, the marketing budget is the first thing to get cut 21% Disagree 79% Strongly/somewhat agree Source: Epsilon, “Epsilon CMO Survey,” September 8, 2008
  16. 16. FRANK BLAKE, CEO, THE HOME DEPOT “There’s absolutely a benefit in making changes during a downturn. As one of our vendors said: “A downturn is a terrible thing to waste.” Source: The Wall Street Journal, June 5, 2008
  17. 17. BENEFITS Brand-building is long-term Tough times are inevitable “We never change the long-term strategy because of short-term problems”–Louis Vuitton CEO Yves Carcelle Positive effects of advertising are seen well past the short term Cost to maintain advertising is less than cost to begin again
  18. 18. MOST IMPORTANT ASSET
  19. 19. MOST IMPORTANT ASSET Customers
  20. 20. SUPERBOWL XLIII
  21. 21. SUPERBOWL XLIII Hyundai 5 commercials 2009 North American Car of the Year Introduced Genesis Coupe Over 450 million impressions
  22. 22. SUPERBOWL XLIII Joel Ewanick George Wallace Vice President of Marketing Vice President of Comedy Hyundai Humor Division
  23. 23. SUPERBOWL XLIII
  24. 24. SUPERBOWL XLIII
  25. 25. THE OSCARS
  26. 26. THREE YEARS FROM NOW?
  27. 27. SALES RESULTS January 2009 General Motors -49% Ford -39% Chrysler -54% Toyota -32% Nissan -30% Volkswagen -16% Mitsubishi -34% Hyundai +14%
  28. 28. TO CUT OR NOT TO CUT?
  29. 29. WHAT YOU CAN’T CONTROL
  30. 30. WHAT YOU CAN’T CONTROL
  31. 31. WHAT CAN YOU CONTROL? The Three M’s: Money Medium Message
  32. 32. MONEY How do you get more bang with less buck?
  33. 33. MONEY
  34. 34. MONEY Advance Auto Parts Budget decreased Dumped sports sponsorships and national cable TV Increased network radio Only paid for 77% of U.S. 23% saved has been reinvested in more radio “Regionalized” a network radio buy
  35. 35. MONEY
  36. 36. MONEY Grocery Outlet Never advertised before recession Negotiate last-minute avails Buy unsold/cancelled inventory Weekly flexibility Cover 90% of stores
  37. 37. MONEY
  38. 38. MONEY Hyundai Dealers (Eastern Region) V oted to increase ad budget Afforded more media weight Sales outpace the rest of the country January national sales +14% January Eastern Region +20%
  39. 39. MEDIUM Focus on vehicles with proven ROI Narrow target to best prospects and hit them hard
  40. 40. MEDIUM
  41. 41. MEDIUM
  42. 42. MEDIUM
  43. 43. MEDIUM
  44. 44. MEDIUM
  45. 45. MEDIUM
  46. 46. MEDIUM Chick-fil-A No change to strategy and spending Heavy users of outdoor Maintain a “wish list” General Motors canceled Snatched up prime locations
  47. 47. MESSAGE Construct your message for the times Consumers don’t disappear–they change their behavior Value-conscious consumer mind-set and behavior shift since early 2008 “Staycations” and “cocooning” 60% of Americans budgeting more this year than last
  48. 48. MESSAGE
  49. 49. MESSAGE Hyundai Identified the real issue–consumer confidence Hyundai buyer assurance program Protection in case of “involuntary loss of income” Addressed fear
  50. 50. MESSAGE
  51. 51. MESSAGE GameStop Two targets: gamers and gifters (moms, grandmas, aunts, etc.) Gamers: make sure you get the games you want Gifters: 2,500 games under $20
  52. 52. MESSAGE Results Holiday sales up 22% from last year Best Buy game sales down 12% from last year
  53. 53. CONCLUSION

×