The Jolt: Innovate or die
Brand loyalty goes out the window in a recession and you have to work very hard to win it back. It's also cruical for brands to plan for the recovery that follows the recession and to be innovative as possible during it or face extinction. But its not all bad news and marketers can be successful during this environment, according to Kinetic Worldwide's Krishnan Menon.
Speaking at an SPH MediaBoxOffice trade seminar last Friday, titled ‘Advertising in a Recessionary Market', Menon said several tips and strategies can be deduced from studying previous economic downturns.
Menon, country manager for Kinetic Worldwide, said it's important for brands to hold firm with their brand strategy at times like this.
"You have to nurture your brand," he said.
"You need to plan for the recovery that follows the recession. Profits and market share increase quicker after a recession."
Menon said all brands can provide value, and in a downturn, customers want more for less.
"Uncertainty reigns, so brands must build trust by showing sympathy, empathy and engaging emotionally with consumers," he said.
Menon showed the crowd at the seminar a Hyundai ‘Assurance' ad that aired in December last year in the US. January 2009 was globally the lowest month for car sales since 1945 but in that month Hyundai posted a 14.3%.
"It touched a cord [the Hyundai ad]," Menon said.
"Empathy and an innovative product offer is what got them there."
Menon's advice to marketers is to change, be innovative, befriend technology and if possible, spend.
"Consumers are will to adapt to new products [in a recession] that give better value," he said.
"Brands need to innovate or die. It's a good idea to spend money in a recession. You can get closer to the customer, the point-of-sale, and to the customer at the point-of-sale. In a recession people are impatient and we must keep up with them to maintain their attention."
- Kinetic Worldwide
- SPH MediaBoxOffice