When times are tough, it's time for marketing to get real
Clive Lewis, Joint Managing Partner, Fellow of the Chartered Institute of Marketing and regular BBC Radio Gloucestershire business briefer explains how economic slow-down will sort those brands with real emotional content from those with hype.
When the purse strings are tightened, many customers will seek value in low-price propositions. For suppliers, this often means a low-margin proposition.
If you don't want to be a low-price, low-margin supplier then it will come as good news that when cash is short, many customers become more risk adverse. When we are worried about our job and getting credit, many of us make purchasing decisions that feel safe and look safe to our peers or bosses.
Levi Strauss & Co seems to be banking on this. It is launching an updated 501 line with higher prices. Chief Executive, John Anderson, said "Our experience tells us that when times get tough (people) go to the brands they know and trust."
Many customers will be attracted to both low-price and low-risk at the same time by, for example, splitting the weekly shop between Aldi and Waitrose.
As suppliers, we have the choice of being seen as low-price or trusted quality. It takes time to build that solid rock position of trust with the customer but those that have made the investment in their brands may now have the chance to maintain good margins as others fall by the wayside.
In the face of fierce competition, it is tempting to stretch the emotional facets of brand a bit to nudge ahead of the competition. Don't do it! Have you ever seen an ad extolling the green or socially responsible virtues of a fuel company, bank or car manufacturer and thought, "I don't believe them"? When customers are risk-adverse, such claims are dangerous unless you are squeaky clean. If not, you could be exposed as being guilty of hype and, possibly, very publically.
A great example of a brand being real is Dove. Research showed that women are self-conscious and find beauty ads intimidating. Dove's campaigns use 'real' women instead of unfeasibly beautiful models, the immediate result - sales doubled. Dove has connected with its customers at an emotional level in a real and honest way. I would put my money on this little luxury being sacrificed by few in the slow-down. How about your products?
If you want to talk any of this article over, just give me a call or drop me an email
Clive Lewis (0) 1242 42 1000 email clive
