JWT’s AnxietyIndex is designed as a place to discuss how brands and consumers are responding to the global recession. With daily content updates, AnxietyIndex.com includes contributions from around JWT’s network, offering a truly global perspective.
Brazil’s GDP rose 1.9 percent in the second quarter after a downward trend that had lasted two quarters, and Brazil’s finance minister has announced that the country has “left the crisis behind.” The media has shifted its attention away from the “economic crisis,” and the news now mostly covers the discovery of oil in Brazil’s deepwater pre-salt region, the political crisis in the Brazilian Senate and the performance of the national soccer team in the run-up to next year’s World Cup.
Advertising communication has, of course, reflected this shift. In the retail sector, some of the brands whose crisis-related strategies we’ve written about, such as Ponto Frio and Wal-Mart, are shifting back to their regular positioning. Wal-Mart is delivering its “Save money. Live better” positioning, associating itself with the idea of sustainability, while Ponto Frio is falling back on a retail promotional program for its upcoming anniversary.
Retail brands offer a good example of how brands across Brazil are following the suggestion of the finance minister and leaving the crisis behind. Now … what’s next?
Two retailers here in New York are trying out a charitable spin on the government’s Cash for Clunkers program. Local sportswear specialist JackRabbit is asking customers to bring in “clunky old” running shoes in exchange for $5 off a new pair of shoes; one of several charities the company works with, including Soles for Souls and Shoes for Africa, will get the used ones. Rothman’s, a men’s apparel store, is offering $100 off a suit to customers who bring in an old one. New York Cares will get the clunker suits.
The tactic may help to assuage consumers’ current guilt over shopping and appeal to their affinity for recycling. It seems like the type of creative promotion that analysts who study chain stores say is necessary to inspire consumers to spend, according to a recent New York Timesstory. As retailing analyst John D. Morris told the Times: “It’s not only that you need to dangle value in the face of the consumer. … The consumer is bored with the same old promotions. The smarter companies are going in and changing the marketing message.”
In India, Levi’s is the No. 1 denim brand and also one of the most premium brands. So while the brand is hugely aspirational, broadening the user base and making the brand more accessible is still an issue: How does the brand cater to those who aspire to buy Levi’s but may not be able to afford a purchase? And how can it do that without discounting the brand or weakening its premium positioning? Levi’s also wanted to increase frequency and value of purchase among existing customers.
To achieve these goals during an economically challenging time, Levi’s came up with a solution revolutionary for the apparel category: partnering with one of India’s major banks (HDFC) to offer an EMI (equal monthly installment) scheme. In terms of the creative, JWT did not want to simply announce the offer, we also wanted to keep the brand in the conversation. So the communication champions a “Live Now” philosophy; the anthem print ad, which brings this philosophy to life, takes on the “un” from the “Live Unbuttoned” global Levi’s campaign.
The program has seen terrific industry and consumer response, and has generated a lot of PR and buzz. The average bill value has risen by about US$20, and 60 percent of HDFC credit card users who have recently made a Levi’s purchase have used the EMI scheme.
In this new Coca-Cola commercial from Latin America, adversity, loneliness and darkness are metaphors for the turbulent financial times we’re facing. The sun won’t come out by itself, we have to make it happen. We see a dark world in which a boy fetches a ladder, climbs it and paints a sun in the sky; everyone is awakened by it. Then we see endless ladders pointing at the sky, and the collective effort results in the sun eventually lighting every corner of the city. Coca-Cola’s optimistic message: The crisis is still here, but so is the sun; it’s just hidden, waiting to emerge through our collective efforts.
What’s curious about the spot is that the track is reminiscent of a typical ’80s jingle. And in fact the entire commercial has an ’80s mood. Is this a retro gesture, like the one we saw from Coca-Cola Mexico, which used the Annie song to assure people that the sun will come out tomorrow? Is Coca-Cola subtly linking the brand with the pop naivete of the ’80s, a time that wasn’t beset by any crisis? When the future is uncertain, optimism seems to rely on nostalgia as a point of reference.
Warrior Lacrosse gear is the best; it’s created by real lacrosse players and used by top professional and collegiate players. As a result, this Michigan-based company is the market leader in performance lacrosse equipment.
So what does a brand do when it already has a hefty portion of the pie? Grow the pie by making the sport bigger. To that end, Warrior Lacrosse sponsors clinics for kids getting interested in the game. These cost just $25 (vs. a norm of about $250) and include daily lunch, stick and T-shirt.
The recession has hit many higher-income households hard, so generating goodwill and interest in a “rich kid” sport among non-traditional participants is a great strategic move (in addition to offering something very positive to at-risk Detroit kids). Much like Henry Ford’s revolutionary $5 daily wage once helped create Model T buyers, clinics like these form Lacrosse players. Once kids get hooked, they’ll be prime Warrior target consumers, ones already exposed to the brand in a good way.
Warrior isn’t just looking for customers, it’s creating them. Very smart.
One of my first posts looked at UBank and its series of “Money Box” Webisodes,a sort of “Recession 101” for younger Australians. Six months on, UBank has launched its first TV commercial, “Saving Is the New Spending,” to promote the USaver account. The spot sweeps through an upscale restaurant, noting how many of those enjoying the high life are actually living beyond their means (one diner’s maxed out his credit, another’s eaten baked beans for a week to afford a lobster dinner). The tone manages to stay more lighthearted than preachy.
It’s interesting to consider “living beyond your means” as an undesirable, and almost laughable, trait—particularly when it follows a period where credit-fueled exuberance has been the norm and one’s ability to keep up with costly trends has been a common aspiration and driver of social status.
Leveraging this shift feels like a strong strategy for a savings offering such as UBank given the current climate; however, the question is how ownable this will be for the brand ongoing—and whether this will strategy will stimulate a change consumer behavior (if that is indeed the objective for UBank!).
Smart brands are gaining followers on Twitter by offering real-time discounts or giveaways to get customers into their stores. Borders, the bookstore chain, is offering free or discounted books at certain locations. Baja Fresh, the Mexican fast food food chain owned by Wendy’s International, offers freebies or discounts during lunch hours to customers who show the Tweeted offer at the register.
This kind of promotion is smart for a couple of reasons. Establishing consistent rapport with consumers during a downturn helps a brand remain top-of-mind when the economy improves. And for chain retailers, which are often seen as having no real connection to the communities where their stores are located, a promotion like this evokes a sense of local familiarity. The tactic is also extremely measurable—return on investment is easily calculated based on the number of Twitter followers a brand has and the number of people who follow through on the giveaway.
Plus, this is a great way to participate in the online conversation, the constant stream of social media chatter that brands need to join. Our most recent trendletter, “The Now Web,” explores how brands can leverage the Web’s shift to real-time communication.
Dubai’s hotel industry has been hard-hit by the downturn. In the first half of 2009, revenue per available room fell as much as 35 percent compared to the previous year, according to a report from STR Global and Deloitte & Touche Middle East. (By contrast, hotels in the 22 Middle East cities surveyed experienced an overall drop of 17 percent.)
In the midst of Dubai’s hotel price wars, one approach stands out. Taking a cue from Priceline’s “Name your own price” option, the Monarch has launched a “Name your price for luxury” online auction. The process is simple: Just enter the five-star hotel’s Web site and bid on a room, a spa treatment, a meal or the entire package.All bidders get a 5 percent discount at the Mizaan restaurant.
At the least, the tactic is likely to help generate traffic to the Monarch’s spa and restaurants. And, most important, it manages to achieve three things: connect with consumers by engaging them in the auction game; create a memorable experience in contrast to a clutter of bland promotions; and build a database where participants are matched with their preferred hotel experience. Faced with a crisis, it’s always wise to look sideways from time to time.
Indian culture has always given a lot of importance to sound health, and strong immunity is considered a prerequisite for good health. Traditional sciences such as Ayurveda and Unani believe that certain herbs and tonics improve immunity.
Two brands operating in this realm are among the few to leverage swine flu in their communications: Dabur Chyawanprash, a leading Indian health supplement, and Brooke Bond Red Label Natural Care, a popular tea brand from Unilever. The messaging manages not to reek too strongly of opportunism. I think that’s because these brands have always been positioned as immunity-boosters and have established credibility for themselves. Their communication doesn’t need to persuade consumers or change their beliefs, it needs only to influence and aid recall.
While Czech tourism was expected to decline this year, the traditional wine-growing region in the south is seeing more visitors. Some of this is due to more Czechs taking staycations (saving money by sticking to their home country instead of traveling abroad), but vintners believe that certification of wineries in the area has also helped. The certification logo—a visual pun on a tulip as a wine glass, using the colors of the Czech flag—guarantees the quality of wine cellars, accommodations in the area, restaurants with wine themes, etc. As many as 71 percent of certified facilities have noticed more tourists compared to last year.
At a time when anxiety and fear are prevalent, there’s a demand for safety and security. Cautious consumers want assurance that they’ll get a certain level of quality for their money. With a third-party guarantee of quality, they’re more likely to feel that it’s OK to treat themselves.
Warrior Lacrosse
