Change Or Die
- 1. CHANGE OR DIE The problem facing Brand owners is a Changed (New) Context. The opportunity is Change (New) Context. What do you need to do to be a recession breakaway brand marketer and maintain upward momentum? Plan and position your brand to be around for the recovery. To aspirational cohorts is down not up. Debt is a now a stand still on marketing strategy whole in a better measure of spend, “The mass not income. downward trajectory results in decline and a long hard market has However, the mass market crawl back, if ever. Be a breakaway brand marketer. has new needs that brands new needs need to tap into and new Our analysis, which includes profitable segments are that brands emerging for brands to expert Global, Euro and local market studies, innovate across all need to tap dimensions of marketing. concludes that the new context is indeed the new P&G global strategy is a into” normal for a while, some good example of this. In even claim 2020. In short many developed markets, There are new the mind-set of today’s many marketers are abandoning the Squeezed consumer choice mass consumer is fearful and they are anxious about middle and turning to 50+ drivers & priorities: job cuts, debt management as well as Millennial. and life-stage shifts. The A good maxim is that a There are new expectations 50+ cohort will be working marketer’s brand role is to from brands as consumers for longer and 18-24 year be the custodian of the are becoming more olds will be lifestyle curbing. brand and to leave it in considered The Gini index (inequality better health that you purchasers. Greater between income groups) found it. consideration means that suggests that the mobility they are selecting brands of Wealth to the next What you must not do is through a closer evaluation generation will be curbed what you always do and - only if they would need or and that the new reference expect that it will work. miss them. of many of the traditional That is called ‘delusion’. Brands are quickly being down traded for lower cost options, often by retailer or mccp.ie For more information contact: [email protected] ph (01) 6350030
- 2. other ‘brands’. Pew Consumers’ needs 1. Clear out what Research Centre (2012) highlights how 71% of US from brands are does not work consumers claimed to have evolving anymore; change made changes to how they from ‘symbols of buy brands with many how you spend your meaning’ to moving to buy less on brand ‘pathways of budget and who you and replacing through promotional items or store experiences’ work with brands because they A recent global study from What is central to this believe the quality was Landor (2012) confirms this strategic shift is for ‘just’ as good. trend towards marketers to adopt a experiences. What different mind-set. They The number of people consumers want from need to be hungry to make believing that a brand does brands is that they be the difference in their not mean better quality has trusted entities that make business and change how increased to 64% which life easier through they understand their means that the brands in connections, convenience brands relationship with the some categories have lost and confidence so they can consumer. They need to be their brand power. carry on with enjoying the up for change. day to day. For example, Now is the time when the “74% of Skype gives a human face to rules for brands and marketers are being a social need and consumers’ experience and Amazon rewritten. Now is the opportunity to get rid of makes it easy to navigate avail of choice. what doesn’t work and start working in new ways. Be This has massive BOGOF’s implications for how faster, more nimble and more focussed in what you marketers think and plan to when win. It is a time to spend your money on and how you work. surround yourself with the shopping” best talent. In the UK, as in Ireland, the The 2. Base line option: volume sold on promotional solution: Strategies Follow through an prices and on smaller unit buys is on the increase as that work aggressive and higher consumers want to buy focused play on the lower priced units. Although MCCP has worked with over they buy more when on 80 Irish and UK clients since market deal; 74% of consumers the recession started and helped them ‘game You can either compete to avail of BOGOF’s when change’. There are a few grow your share of the pie shopping; 67% avail of common themes around or simply change the pie. ‘extra free deals’ while 56% what we do to successfully Increasing your share of pie take advantage of ‘3 for 2 help clients and their is a traditional yet essential deals’ agencies transform their marketing practise, This (Source: justaskMCCP 2012) business. entails, investing to stay top mccp.ie For more information contact: [email protected] ph (01) 6350030
- 3. of mind (share of voice, Stepping back means media/channel spend), challenging the old ways. “72% of strong propositions and This requires smarter creative that really punches research techniques, better consumers above its weight. collaboration between your Aggressively competing agencies and interventions are in against your weakest rivals that challenge old thinking and staying in the game can and that bring consumer led agreement increase share by only a few planning and strategy that percentage points. is real, sharp and insightful with the Significant growth requires to the table. a sharp focus on; statement i) newly identified 3. Craft strategies that ‘luxury is market segments, ii) refined and that meet the needs taking time rebalanced of consumer positioning, segments needs out to relax’” iii) innovative product You must segment to and channel instead of just understand how different propositions and, consumers have been thinking about your iv) fresh affected by the recession communication competitors and uncover their new strategies that priorities. This is important focus on new It is not the case that the to find new zones of consumer journeys spending power of all of innovation. Position, your consumers is in innovate and fine tune These are all key to decline. product portfolios to new unlocking the game needs and seek to create changing potential of value in niche yet profitable brands. segments. Rise of Smart Convenience: 44% of consumers have bought a smartphone in the past 12 months while 32% have upgraded their broadband provider (Source: justaskMCCP). Increase in Home Utopia Trend spend: 54% of consumers have held a house party in the past 12 months (Source: justaskMCCP). mccp.ie For more information contact: [email protected] ph (01) 6350030
- 4. Micro luxury: 72% of entirely new and relevant In summary, this is the time consumers are in way. for transformational agreement with the thinking and for marketers statement that ‘luxury Big ideas are harder to to really up their game. Find is taking time out to leverage and resource in a the best team(s); identify relax’ while 70% agree low to zero growth market segment/consumer needs with the statement so micro innovation that is that you can find single ‘luxury is little treats & continuous or (what we call minded unrivalled focus; rewards’. (MCCP lean innovative thinking) leverage best process in Trendstream™) works best. Small changes strategic, creative (to to the product or service include innovation) thinking Healthier options: 43% can offer simplicity, and skills; commit to a of women ‘avoid fats’ & relevance and create continuous planning and 46% eat diet/low disproportionately higher focus cycle. This will enable calorie products value for the user and the you to game change your (Source: Mintel 2011), product owner while also way as a breakaway brand while Bord Bia research being delivered at to find a new growth (2011) uncovers the affordable prices. This can frontier. fact that usage of deep make the difference. fat fryer Examples include the Kay McCarthy is MD & decreased 16% since packaging, the format, the Founder of MCCP 2003; while Steamer channel, functionality and The Planning Agency who has increase 11% & innovative marketing plans. work with some of Ireland’s Wok 7% over the same largest brands to help game period. At MCCP, we have set up an change through better Innovation Planning Lab to consumer insights and help clients to game change sharper strategy (brand, 4. The Bigger play: on these dimensions so as communications and to drive success. innovation). Game change through higher levels 5. ‘Always on and of strategically better planning’ applied creativity and Planning should be an on- innovation going concept, not a ‘think and pause’ one. At MCCP, Game change by changing whilst we believe long the pie is innovating to range vision planning is create new value for both necessary to set down a the brand and for the visionary North Star - this consumer; this is a needs to be coupled with necessary new frontier. more regular micro Innovation is the new planning so as to constantly creativity – offer something adapt while shifting new or different so as to towards consumer’s needs attract a new segment or so that allow us to refine position your brand in an and amend. mccp.ie For more information contact: [email protected] ph (01) 6350030