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Brandnow.asia: Recession proof your business and brands published Nov 2019

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Brandnow.asia: Recession proof your business and brands
Published Nov 2019

Published in: Marketing
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Brandnow.asia: Recession proof your business and brands published Nov 2019

  1. 1. Recession Proof Your Business & Brands By Brandnow.asia Presented by Pacharee Pantoomano Nov 2019
  2. 2. Table of Content: Survival of the fittest State of B2B Survey - ASEAN 2020 Retail: Walmart Toy: Lego Fast-food: McDonald’s Online entertainment: Netflix FMCG: Colgate-Palmolive Food: McCormick Car: Volkswagen Summary About Brandnow.asia
  3. 3. STATE OF B2B Survey - ASEAN 2020 1 minute survey to understand your sentiments and plans for 2019-2020
  4. 4. How Walmart did it Research reference • Walmart was recognized by the New York Times as having exceptional growth during the great recession of 2007 to 2009 • Bentonville invested in data-driven marketing and product development Report showed  Less browsing and sticking to the shopping list  Less brand loyal and buying store brands  Buying more pasta and carbs, less on expensive items like meat and other protein  Increase in home related entertainment and personal health because dining at home is more economical • Instead of slashing their marketing budget, Walmart recalibrated and geared the campaign for home entertainment (TV, DVD etc) and pushed the "take and bake“ to go with the home entertainment
  5. 5. How Lego did it Research reference • In 2004, Lego almost bankrupted. It had expanded into non-core areas like theme parks, watches and clothing • In 2009, it was a different story. While many companies were facing the recession. Lego’s profits increased by 63% • The US market stagnated and Lego expanded in Europe and Asia to increase sales. Legos are not only for kids. There are many websites and forums for Lego adult enthusiasts around the world • Founded in 1932 (87 years ago) by Ole Kirk Christiansen, the original name is "leg godt" which means play well in Danish. The brand receives free endorsement from celebrities. For example, David Beckham said he was using Legos to build the Taj Mahal and it boosted sales by 663%
  6. 6. How McDonald’s did it Research Reference • With more than 33,000 stores in 118 countries around the world, McDonald is one of the leading fast food brands. It's second only to Subways in terms of the number of locations • During tough economic times, customers switch to lower price options or dined in • McDonald kept sales growing by focusing on growing its footprint in China, which in 2010 it had 1,100 outlets. • To boost sales, McDonald's increase its breakfast menu and coffee options. From 2007, it sales went from $22.8 billion to $24 billion in 2010. • As of end of 2018, McDonalds listed 37,855, serving 68 million customers each day
  7. 7. How Netflix did it Research Reference • In 2008, Netflix was one of the best and most successful company • The peak for the company was in 2009 when Netflix gained 3 million members for their TV/Movie streaming plan • With the streaming plan, it enabled Netflix to have more subscribers to view an unlimited amount of entertainment per month, this was on top the disc-delivery service • By adding a variety, value plans and various services, Netflix recession proof their company • As of today, Netflix continues to evolve. In Q3 of 2019, Netflix had over 158 million paying streaming subscribers worldwide • Trivia: Blockbuster turned down the opportunity to buy Netflix for $50 million in 2000. In 2010 Blockbuster filed for bankruptcy.
  8. 8. How Colgate-Palmolive did it Research Reference • The brand is famous for personal and home care products, as well as pet nutrition products in its portfolio are Colgate toothpaste, Mennen deodorants, and Hills pet foods • Colgate-Palmolive value its customers' loyalty and because their products are inexpensive, most people cannot do without it • In 2007 during the recession, the company took a preventive strategy by lowering price. They managed this by switching production to lower cost facilities • Colgate’s revenue rose from $13.8 million to $15.6 million during this period
  9. 9. How McCormick did it Research Reference 1 and Reference 2 • Established in 1889, McCormick (MCK) manufactures and distributes over 16,000 spices, seasoning mixes, condiments, and other flavorful products to the entire food industry. The company has two business segments: 1. Consumer: spice, herb and regional favorite brands to grocery stores, supercenters, discounters, convenience stores, and e-commerce players 2. industrial flavor solutions: seasonings, sandwich sauces, and branded foodservice products • During recession, people naturally cooked more at home. MCK provides healthier ingredients, especially the organic variety. The organic is now the premium product. This was a winning formula as it encouraged people to cook and save money. • MCK also established more partnership with brands such as PepsiCo (PEP) and McDonald’s (MCD)
  10. 10. How Volkswagen did it Research Reference 1 and Reference 2 • The German brand had a leading position in Latin America and China. It was the head of the pack despite intense pressure from GM. • Interestingly, the German car maker's weak position was in the U.S. market • Toyota has been hit hard by falling sales in the U.S. and closed its manufacturing plant in California, the first closure ever for the world's largest car maker • VW saw this as an opportunity and launched the "Toyota killer" — a new mid-sized car specifically designed for the U.S. and meant to compete head-to-head with the popular Toyota Camry. The car was produced in a new plant in Tennessee. This meant VW can produce faster and reduce import tax • Compared to its battered competition, VW is coasted through 2009, boosting its share of global car sales to 12% from 9.9% in the first half of the year
  11. 11. Summary • Have a prevention strategy Colgate • Focus on another segment or region Walmart McDonald’s McCormick Legos • Take advantages of the situation Netflix Volkswagen
  12. 12. About BrandNow.asia Established in 2008, Brandnow.asia is a boutique branding, marketing and public relations company serving startup, unicorns, disruptive and blue-chip brands here in Thailand, Asia, and around the world. We’re a member of PRN, a network of agencies that spans the globe. Some of our clients are Grab, Lalamove, Nokia, adidas, Pepsi, and Grohe to name a few. Our focus is on brand communications and our services include media strategy, public relations, social/digital PR, direct marketing to event management. We look forward to being of service to you.
  13. 13. STATE OF B2B Survey - ASEAN 2020 1 minute survey to understand your sentiments and plans for 2019-2020
  14. 14. Pacharee Pantoomano brandnow@brandnow.asia +662 105 4217 Youtube: BrandNowAsia | FB: BrandNowAsia

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