FRUKT Sessions #003: Communicating in a Downturn

Communicating in a DownturnMatthew Carlton, Xtreme Insight

Communicating in a Downturn > Key Learnings & Themes

Communicating in a DownturnKey Learnings and ThemesFrukt Sessions March 2009


The Dreaded ‘R’ Word – But History Suggests Spending is Vital

To Cut or Not to Cut?

StudiesRonald S Vaile (1940s)Media Advertising When Your Market is in a Recession (1982)Malik PIMS (2001)

BrandsKellogg vs Post (The Great Depression)Procter & Gamble - Crest (1950s)Burger King (1970s)BMW (1970s)Renault - Clio (1990s)


Don’t Slash Budgets – Momentum is Key

Heed the advice, but don’t simply throw money at advertisingLandscape has shifted – media space is cheaperConsumers are questioning and deliberating purchases more than everThey are also increasingly wary of brands Financial brands in particular are under intense public scrutiny


Aviva – Big Campaign, Big Backlash


Aviva – Big Campaign, Big Backlash

Pissing away a fortune to pay those greedy pigs is good for reputation? The ad makes me puke.

Typical Norwich Union - waste money on spin whilst diddling its policyholders insurance is boring and my point is who really gives a shit was they are called? and why waste millions on payouts to greedy celebs who have enough money for many generations of their family

It is so disgusting that this company pays these "fat cats" a fortune just to advertise their change in name, who cares if their name has changed?

still a boring insurance company, and the celebs greed is horrendous, shame on you ringo, bruce, alice, and tranny.

Dreadful grasping company.. pathetic returns; endowment shortfalls; reattribution rip-off; swinging staff cuts; exporting call centres to India etc but they can find money for this sort of worthless advertising and sky gh directors salaries

Just what is needed at the time of a credit crunch - a suggestion that you may have paid some stars a lot of money to star in an advert to tell us about your no doubt costly name changing exercise - great timing!

This rebranding is nothing to do with value creation and everything to do with a new CEO's ego as a very good editorial in the FT said at the time of his appointment. If the Board's main preoccupation was the creation of shareholder value it wouldn't be wasting millions destroying a great brand.


Change of Approach - Halifax

A brand at the epicentre of the crisis

Understanding the need to be more sensitive

Howard is no more

Upbeat and jovial approach is out; serious, community focus is in


Direct Comparative Attacks

Reorganising Brand Positioning

Home & Love

Key Themes

Togetherness & Community

Contextualisation & Relevancy

Non-Core Related Offers

Common Touch / Real Ads, Real People

Heritage & Nostalgia

Tackling the Recession Head on


Home & Love

More brands favouring the comforts of homeMetaphor for happier timesSignifying stability and certainty


Home & Love

Sky

Opportunity not a threat – Home based offering

Movies and the cinema remain ‘recession proof’ as people crave escapism

More marketing movie focused – altered tagline

Reduced price of HD – may be seen as a long term money saver


Community & Togetherness

Community & TogethernessA theme exacerbated by the recessionEasier to overcome difficulties through companionship and partnershipMore brands are intimating unions over themes of self ExpressionTrend emerged pre-recession through O2 and Orange


Community & Togetherness

T-Mobile – Life’s for SharingSky – Share The Movies You Love With The People You LoveAsda – Get The Whole Family RoundPizza Hut – Get TogetherOrange – Wednesday is friendsday


Reorganising Brand Positioning

ALDI – Don’t Change Your Lifestyle, Change Your Supermarket Opportunity not a threatRepositioning – trying to reach up Hoping to woo concerned customers from more discerning brands

Exemplified in UK supermarket sectorBrands move beyond old territories into those occupied by rivals


Reorganising Brand Positioning > Sainsbury’s

Previously in middle / upper sector

Retrench and move into Asda & Tesco space

Above ads from spring 2008


Reorganising Brand Positioning > Sainsbury’s

Notable changes to style and fontPress ads akin to those from Tesco and AsdaGreater focus on ‘Basic’ rangeLess emphasis on ‘Trying something new’Jamie Oliver not seen in TV ads so far this year



Enables consumers to reminisce about past relationshipVirgin Atlantic & Guinness – anniversaries Cornflakes & Heinz – part of family lifestyle Safe option yet can be entertaining



HovisStarted this recent trend120 second TVC charters last 12 decades of British history Shows the brand’s presence throughout key historical momentsVictorian Era – World War – Swinging 60s – Miners’ StrikeSimilar approach used during 1970s recession


Reinforce & Emphasise Credentials / Attack Rivals


Tackling the Recession Head on

Only used by a few brandsRisky > Empathise or alienate?Needs to fit with previous marcomms Entertaining - Can work well with humour


Tackling the Recession Head on > Ubank

UbankTongue-in-cheek webisode series Targets the ‘YouTube generation’ Created buzz and increased brand awarenessNew account openings increased Y-O-Y


Tackling the Recession Head on > Carlsberg

CarlsbergIreland TVCFits perfectly with brand’s relaxed outlook and slogan


Brands should not fear being entertainingView recession as an opportunity not a threatResearch the evolving consumer - identify relevant changes in consumer behaviourEstablish key themes

Top Level Findings

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Communicating in a Downturn > Key Learnings & ThemesCredits: Matthew Carlton – Editor, Special ReportsContact details: Xtreme Insight, Xtreme Information, 45 Foubert’s Place, London W1F 7QH. Telephone +44 (0)20 7575 1905. Fax +44 (0)20 7575 1809.Email [email protected] Website www.xtremeinformation.com

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FRUKT Sessions #003: Communicating in a Downturn

Business

Transcript of FRUKT Sessions #003: Communicating in a Downturn