Nurturing your brand through turbulent times

Rosie Hawkins, global head of brand and communications at TNS

“There is no doubt we heading into difficult times globally for brands... we will see it in brand behaviour, people's behaviour, the squeeze on extensive brand campaigns... and this is where consumers are so fascinating. There are certain things people will not give up on.”

Down to individual choice

Hawkins, who spoke to Bizcommunity.com exclusively on a recent visit to South Africa, says it comes down to individual choice and the way that consumers make changes in their lives as it is a very personal choice and everyone will be different.

“It's important to understand the consumer psyche during tough economic times. Consumers are forced to redefine value and will make basic decisions about what they are prepared to spend. If a brand is truly important to a consumer, then they will at least try to find a way to buy it some of the time. But generic versions of particularly lower involvement categories do become very compelling.

“In tough times, we tend to see the 'collapse in the middle'. The category leaders often do well and even become stronger. People cannot afford to make mistakes and familiar brands can offer some much needed comfort and reassurance. The value brands are also likely to receive a boost as the combination of a familiar name and a reasonable price is compelling in these circumstances.”

She says the brands that tend to suffer during turbulent times are the mid-level brands that have failed to carve out a clear positioning and cannot compete in terms of value with either the category leaders or the value brands.

Brand spending

“From a marketing perspective, it is important to remember that brand building is a continual process and that consumers will continue to experience brands and form opinions about them both during active and inactive (marketing) periods.”

Hawkins goes on to say that while it may be necessary to cut brand spending, the consequences on the brand must be considered. “Brands can provide reassurance and comfort (and even a retreat or escape) during hard times and an 'absent' brand may be perceived as abandoning its users.”

Her advice to a brand when marketing budgets are under pressure, is as follows:

• Assess the brand portfolio. If you have multiple brands, understand brand architecture and how equity flows across the portfolio. This can help to identify the brands that should receive support, knowing that equity flows from these brands to other brands in the portfolio.
  
• Can the offer be adjusted? Pack sizes: with less disposable cash available, people may not be able to buy in bulk (even if this is better value in the long run). Smaller pack sizes/individual use sachets may make a brand more accessible. In the automotive sector, manufactures have addressed slow economic times by setting up ‘certified pre-owned' vehicle programmes. Secondhand cars are fully serviced and detailed giving the buyer some of the new-car experience, but at a lower price.

Attracting new consumers

Ultimately, Hawkins says, the brands that survive are those that understand and are built around the emotive drivers of brand choice: “While hard economic times signify periods of more careful consumption and factors such as price and value take on greater significance, people's underlying needs do not change and brands can continue to satisfy these needs.”

There are several areas which brands need to capitalise on to bring them closer to their consumers, while still attracting new consumers:

1. Commitment - the strength of emotional connection.
   
2. Getting to consumer needs - understanding what they need.
   
3. Future influence - understanding a community, that all important future view of a community.
   
4. Valuing authenticity - authenticity and integrity in what you buy and who from.
   
5. Individuality - increasing need for customisation: ‘Don't treat me like everyone'. Consumers need to be spoken to as individuals and each have their own needs addressed.
   
6. Trends around corporate responsibility - brands need to make ethical choices.
   
7. Time poverty, real or perceived - consumers feel that time is more precious, so they are looking for products and brands that make their lives easier.
   

New consumers are most conscious of those trends so brands which take them into account are those best positioned for future growth.