Monthly Archive for April, 2009

Recession-themed spot switches gears in India

Published by Pragya Singh - New Delhi on April 30, 2009 in Asia Pacific. 1 Comment Tags: , , .

One of the first television commercials here to take inspiration from the slowdown belongs to a category one would least expect: not real estate, not banking or insurance, not airlines or travel but switchgears.

Indian electrical-products manufacturer Havells humorously reminds consumers that its electrical switches (technically, multi circuit boards) are shock-proof by showing situations that are not shocking these days—canceled salary increases and dwindling property prices. And it notes that while the recession has caused many shocks, consumers can at least avoid electrical shocks with Havells.

The tone is neither heavy-duty nor mushy—the spot simply attempts to make light of the economic situation for viewers who’d prefer brands not to add to the gloom that newspapers and TV news have already created. It also fulfills the same need that cinema and music do for the bulk of Indians, providing entertainment and a refreshing break from reality.

No reservations … with enhancing your experience

Published by Carl Desir - New York on April 30, 2009 in North America. 0 Comments Tags: , , , , , .

aturkus_waverly-restaurantWith so many New Yorkers feeling the hurt of this recession, restaurants from high end on down have been pandering to patrons in ways they’ve never had to before. At the highest end, Le Cirque has offered a $39 three-course lunch and a $74 seven-course tasting menu in its dining room. And for those with only spare change to spend, the Cuban café Casa Havana has offered a 20 cent (yes … cents) breakfast that includes eggs, ham or bacon, fries, toast and coffee.

Myriad other special offers are logged on the restaurant blog Eater’s “Dealfeed.” Among them: The Patina Restaurant Group (operators of Brasserie and Naples 45, among others) is taking 20 percent off food and beverages Friday-Sunday, the Russian Tea Room is throwing in a free vodka martini with the Business-Express lunch, and the restaurant Jane is offering a $15 “bird and beer” special (fried chicken, a side and a pint).

Dealfeed’s list feels like a contest to see who can lure the most customers without hurting the bottom line. Ultimately, however, it’s establishments that worked overtime to secure loyalty before the recession that will likely escape unscathed.

Photo credit: aturkus

British Study: The Recession and Its Impact on the Youth Market

Published by Marie Stafford - London on April 29, 2009 in Europe. 0 Comments Tags: , , , , .

millennialsHaving grown up during a period of unprecedented growth, young British adults have become accustomed to having what they want and having it now. As they experience recession for the first time, the dual prospects of struggling to find or keep a job and dwindling disposable income have come as a shock. More than any other age group, they are feeling resentful about the ways in which the recession is affecting their generation. To keep young Britons spending, brands will have to compete more fiercely than ever, offering more for less at a time when “Spoiled Britain” can no longer afford to have it all.

These are among our conclusions from our U.K. AnxietyIndex study “The Recession and Its Impact on the Youth Market.” You can download it from our Trends and Research page.

Planning for brands in a rental economy

Published by Gino Borromeo - Singapore on April 29, 2009 in Asia Pacific. 2 Comments Tags: , , , .

singapore_rental-economyIn Singapore, a copycat of three-year-old Bag Borrow or Steal—the U.S. service that allows members to loan designer bags for a monthly fee—called www.thatbagiwant.com is offering the latest luxury bags for a minimum commitment of SGD 125 (US$83).

In 2008, one of JWT’s trend forecasts for the year was “cooperative consumption”—the concept of sharing costs via fractional ownership. The luxury market was hot, and “fractionals” usually help provide access to luxe goods. Today, while frugality is in and luxury is waning, this approach seems right for the times because a “rental economy” is starting to make a lot of sense.

Many consumers are rethinking their financial commitments. When the economy was booming, conventional wisdom said that ownership was the thing to do—e.g., buying a home was seen as smarter than renting—but given the prevailing uncertainty, people now prefer not to sink money into long-term investments. Today, ownership is far less appealing.

With consumers hesitant to make commitments, should marketers be rethinking big overarching campaigns that demand commitment? In this climate, successive short-term initiatives to build a brand—a “rental economy” approach—might make more sense.

In China, a premium brand justifies its cost

Published by Haidong Guan - Shanghai on April 28, 2009 in Asia Pacific. 0 Comments Tags: , , .

OMO, a leading washing powder brand in the premium segment in China, is positioned as cleaning more types of stains than competitors—99 types of stains, as its advertising claims. Heightened consumer sensitivity to price recently prompted the brand to further justify its cost. Current advertising tries to convince housewives that OMO is a good value because it cleans twice the amount of clothing with the same amount of powder. Most urban consumers here have not been hard-hit by the downturn and few brands are actively responding to the crisis—all the more reason that OMO’s proactive messaging is likely to resonate.

When news goes from bad to worse, what’s a marketer to do?

Published by Andrew Ortlieb - Detroit on April 28, 2009 in North America. 0 Comments Tags: , , , , .

urban-hunterHere in Michigan, we have the nation’s worst unemployment, GM and Chrysler are circling the drain, and when USA Today features a family taking on the “pioneer” lifestyle (cutting way back on spending, growing their own vegetables, raising chickens, etc.), of course they’re from Michigan!

Fine, but when The Detroit News runs an article about an urban hunter, a Detroit old-timer selling fresh raccoon meat, even my stress level rises. Is that how bad it’s going to get? Should I start thinking about the squirrels in my backyard?

It’s got me rethinking that bike purchase or the next family vacation (might have to eat squirrels soon, for god’s sake!). And that’s the point: This barrage of negative news changes behavior, which makes things worse, which leads to more bad news … and a self-perpetuating cycle. The nonstop media blitz, now constantly at our fingertips, is then compounded by blogs, Twitter and whatever was invented earlier today. You have to work hard to avoid it, and it’s making this downturn worse.

When bad news is pervasive, brands can provide a much-needed reprieve. They can help assuage anxiety by projecting confidence in the future (of the economy generally and of the customer specifically), with messages of hope, pragmatic optimism and, when appropriate, humor.

Staying out of the price wars, Part 2

Published by Pragya Singh - New Delhi on April 27, 2009 in Asia Pacific. 0 Comments Tags: , , .

surf-excel-packIn my recent post “Staying out of the price wars,” I wrote about brands that are highlighting unique features in their products to beat value players that compete on price. Another approach is distraction: focusing customers on your brand’s strengths, distracting them from making direct price comparisons with cheaper competition. There are three simple (but powerful) strengths you can leverage:

Source Credibility: Emphasize the quality of your product/service—e.g., highlight the raw material used, the source of key ingredients or the processes involved. The way Everest, an Indian brand of spices and condiments, advertises its saffron product is a case in point.

Brand Integrity: Draw attention to the values your brand champions. Surf Excel, a popular detergent brand, pledges its commitment to child development and education by giving scholarships to poor students in India.

Brand Heritage: Bring to the fore your legacy, the number of people you have touched, the kinds of relationships you have cemented over the years. Kellogg’s in Europe and the U.S. regularly underscores its long heritage to help counter the effects of store brands.

Distraction Strategy will not only help you keep your customers, it will also greatly strengthen your brand’s equity.

Australian insurer tells consumers to ‘Unworry’

Published by Mollie Hill - Sydney on April 27, 2009 in Asia Pacific. 1 Comment Tags: , .

To differentiate itself in the commoditized insurance market, NRMA Insurance has launched a major brand repositioning based on the theme “Unworry.” Communications center on the power of “un”—e.g., “Who couldn’t do with more ‘un’ in their lives? Unstress, uncomplicate, unhassle ….”

The strategy promotes the value of the positive feeling consumers can get from being insured rather than focusing on the rational differentiator of price versus inclusions, waiting periods, etc. This strategy followed NRMA category research that revealed “after two years, if people had not made a claim on their insurance they developed a level of resentment in paying premiums, feeling that they had not got their money’s worth,” according to an article in The Australian.

Driving the value equation (value over price) is a commonly discussed recession strategy, and given how much anxiety and worry the downturn is stirring among consumers, NRMA’s campaign is particularly relevant. However, the sustainability and effectiveness of this repositioning surely relies on whether the business and its product/service offering have truly adopted it—or whether it’s simply a front-ended campaign that risks becoming generic wallpaper.

Encouraging family (and TV) time

Published by Sebastian Codeseira - Mexico on April 24, 2009 in Latin America. 0 Comments Tags: , .

sebas_cablevisionCablevision Mexico is writing to its customers:

Dear Subscriber,

They say these are difficult times. At Cablevision, we know these are times to show who we are. Time to go back to our family. Times in which being close to your loved ones should not be a sacrifice ….

The message encourages taking refuge in family, spending time together at home. Promoting this ideology of togetherness is a smart way to encourage spending more time watching subscription TV. And what makes this even smarter is the fact that the channel for the message is a simple letter. So the medium itself comes into the house to impart the message of staying home. Once again, the medium is the message.

Uniqlo opening inspires retail excitement in Singapore

Published by Gino Borromeo - Singapore on April 24, 2009 in Asia Pacific. 0 Comments Tags: , .

uniqlo-1Ever since Japanese casual wear retailer Uniqlo opened its first Singapore branch on April 9, long queues have been a regular occurrence, even on weekdays. Retail is among the hardest hit sectors here, but you wouldn’t know it from the way Singaporeans have been flocking to the store.

Yes, you could argue that Uniqlo’s initial success in Singapore has been driven by its hip yet affordable clothes and the novelty of its presence here. But it’s also vivid proof that despite the recession, people can still get excited about brands—excited enough that they’re opening their wallets and braving long waits to get in. (In Uniqlo’s case, the brand manages to be exciting both online and offline.)

Which begs the question: How are we creating a renewed sense of excitement around our brands?