Стратегический Директор Optimum Media OMD Ксения Михайленко на конференции "Рецепт от кризиса", 12.06.2014, рассказала о специфике нынешнего кризиса для категории FMCG. В основном брэнды привыкли соревноваться в кризис на территории цен. В борьбе за самую низкую цену в FMCG всегда побеждают Private Labels торговых сетей. Противостоять им можно, только если ваш брэнд готов предоставить «вознаграждение» выше Private Labels, чтобы оправдать разницу в цене. На уровне продуктов разница не всегда ощутима, поэтому может быть передана в основном на уровне брэнда и его коммуникации. Поэтому ставку нужно делать или на продвижение брэнда (а для FMCG это в первую очередь ТВ) или на продажи по самой низкой цене.

1. | p.
I N S I G H T S • I D E A S • R E S U LT S
Affordable happiness
or FMCG in crisis

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It’s truethat Ukrainian consumer is
unconfident now
2
Confidence index 56
(-7P vs. 1Q’13)

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Unconfidence has financial & emotional
background
3
Stress Financial
limitations
Activates “Safety mode” in consumers minds

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Emotional-Financial=purchase intention
Brian Knutson, Professor of Stanford University made an experiment, which measured neural activity of
consumers minds. This research discovered that when consumers look on price of the product, they
activate the area of brain that responsible for pain.
Pain Reward
Source: Phil Barden Decoded he Science Behind Why We Buy

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painreward
Purchase takes place when rewardis
higher than pain
>
Decrease Pain (Price) or Increase Reward (Brand/product proposition).

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Consumers fill pain, especially today…
Consumer Confidence Index (CCI) Index of the Current Situation (ICS) Index of Economic Expectations (IEE)
Source: GfK Ukraine

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Producers are looking for pain-relive drug
1+1=3

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Who will win in the price rush?
Price
Reward
Private
Labels
A
brands
B
B
B
B
B
B
A
A
Private Labels as the
price-based proposition has
ability to provide the lowest
prices to consumers
“Make your brand strong, or get organized to be the one
that sells at the lowest prices!”
A

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Are you ready to provide the lowest price?
All the year round?
Challenge #1:

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The fieldof battle
Role of product’s characteristics & marketing
In the category
#ofbigbrands
Inthecategory
Price driven: higher share of private labels
High differentiation,
Limited # of Big brands
High differentiation,
Big # of Big brands
Low differentiation,
Big # of Big brands
Low differentiation,
No/ limited # of brands
Double efforts
for the
impulse
categories
Pure Price battle
Needed category
argumentation &
category TOM support
Brand image
support is highly
important
Convince in your
added value or sale
by the lowest price

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Can you sell your brand or your category only through
the best price proposition?
Challenge #2:

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Bring Value or get organized to be the one that
sells at the lowest prices!
advertize or lowest price
12

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Let’s look on the problem from
other side!

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Crisis is the time of opportunities
Usually the ability of brand to win SOM is limited as the big part of customers are buying on “autopilot”.
Now customers are reconsidering almost every choice and can open a new brands for themselves.
14

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Increase reward opposite to pain
15

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Brand is the frame which
changes perception of the base product
The similar products can have different perceived values for consumers depending on the brand which
is behind that products.
16

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Perceived value of the brand can
justify it’s price
Brands which will convince consumers that they can satisfy specific consumption goals (relevant in
crisis) better than other can justify their prices.
17

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VALUE for money,
has broader meaning than value for money brands
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How become considered and create
rewarding value for consumer?
There is no “magic pill” for any brand. Each category and brand are unique one. But there are
several directional options which can be considered for different categories as a base for further
thoughts .
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First of all Don’t act like “nothing happened”
Avoid the 'business as usual' approach in your advertising that can result in ads out of touch with people's
concerns during a recession and, eventually, translate into a waste of money
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Consumers are changing
21
Shock, fear, depression
Intend to consume smarter
Need of confidence in their choice
Escapism demonstrates
the growing trend in society
Waiting for empathy from
surrounding world

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What do they needfrom brands
22
Proof of correct choice
Feeling that the choice is smart
Understanding of their current
situation from the brand
Self-
Indulgent,
possibility to
run from
reality

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Values relevantin crisis:
More for the same
money
23
Like professional,
but more affordable
Performs like
more expensive
Smart
choice

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Values relevantin crisis:
24
Confidence
Less amount, but
proven quality
Needs that you can
afford

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Values relevantin crisis:
25
Understan
ding
Brand as ally
(союзник)
Empathy Brand
(сочувствующий)

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Values relevantin crisis:
26
Indulgence
Enjoyment/Reward

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Values relevantin crisis:
27
Escapism
Feel like in another place
Territory of positive
emotions
Territory of positive emotions

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Affordable happinessin crisis
28
11,5грн
11,5грн
8,5грн
4,5грн 1,3грн 2грн
Big pleasures are on “pause” mode now. But there are a lot of things that consumers can afford to
indulge themselves and feel happiness in black & white period.

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Ролик
29

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?????????????????
30
Are there any break –through media recommendations in crisis times?
Any media
thoughts???

31. | p.
Only 2:
31
•Focus big
• Media rules are the same

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Focus big
Xno
Focus on mass-coverage media with proved effectiveness (TV)
Vyes
Focus on key brands, to invest
in enough volume for each
Choose the strongest brands
which has potential to survive

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Media rules are the same
Media:
is Mathematics is not a poetry

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Media rules are the same
Media has it’s oven rules which works in all the times:
• Broad coverage = Big consumer base = Big Share of Market
• Consistency of communication = People forget = Out of air-Out of mind
• Competitive SOV = Visibility =Competitive SOM
• etc. …

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Crisis doesn’t changes media approaches
it changes communications
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I N S I G H T S • I D E A S • R E S U LT S
Make your consumers happier!