Once admired for their financial acumen, well-known brands like Citi, Morgan Stanley and Goldman Sachs (and, to a lesser extent, any of the hundreds of firms that took federal bailout funds) now have a vibe of wanton recklessness, if not outright criminality.
Sun Life Financial sees an opportunity in this. As its president recently stated: “Sun Life has a 144-year-old record of financial security, over 20 million customers worldwide, and excellent financial strength ratings, yet U.S. consumers are not familiar with our brand.”
A new campaign, “Get to Know Sun Life,” focuses on the fact that Sun Life has never needed a bailout and emphasizes its long, strong track record of consistent returns. Perfect timing on this: Some people will never again trust the big Wall Street firms, so a company that can offer a clear, safe alternative will get fresh consideration.
Photo Credit: www.sunlife.com
A new campaign from Godiva focuses on “the golden moment” of eating a delicious piece of gourmet chocolate. Whereas in better times the brand essence revolved around “luxurious celebration,” one new aim is to play up the “emotional appeal of giving, sharing, eating Godiva chocolate,” Godiva’s Lauri Kien Kotcher told The New York Times. The print and outdoor ads feature black-and-white fashion shots of young British socialites experiencing moments of joy that are easy to identify with (a romantic embrace, laughing with friends, etc.).
We’ve noted that candy sales have spiked during the recession and that this is one indication of the recession-era appeal of simple pleasures (one of 10 trends we forecast for 2009) and small treats. Godiva’s shift in focus to emotional indulgence is a smart move in tune with today’s definition of luxury. Anxious consumers are looking for ways to squeeze more enjoyment out of what they can afford. Godiva is effectively increasing the pleasure/price ratio by providing consumers a means of feeling good without a high price tag. Instead, Godiva is encouraging consumers to derive more satisfaction from moments of simple delight.
Photo Credit: love-janine
Back in April we wrote about a Singapore bag-rental service that mimics an idea that originated with Bag Borrow or Steal in the U.S. Now toujourschic.ae, a site for UAE residents, offers the same designer-handbag deal for fashionistas bit by the recession. Prices start at $79 for a two-day rental.
As in much of the rest of the world, the UAE’s luxury sector has been the hardest hit segment of retail, as consumers save more and focus on necessities. Luxury purchases are now looked at as long-term investments—which makes one question whether today’s price-sensitive consumers will go for short-term emotional satisfaction at a not-so-cheap cost.
Still, as we previous noted, a “rental economy” seems to make sense at a time of prevailing uncertainty, when consumers are cautious about long-term financial commitments and the appeal of ownership is waning. Indeed, Rent the Runway, a new venture in the U.S., is betting that this idea will work with designer dresses. It will be interesting to see if copycats again pop up around the world or if cooperative consumption—as we’ve previously dubbed this business model—has its limits.
Photo Credit: toujourschic.ae
Despite prevalent anxiety in India, its consumers are the most optimistic in the world, according to a Nielsen Global Consumer Confidence survey conducted earlier this fall. India’s score was 120, far higher than the global average of 86. (Indonesia and Norway were also in the top three, the U.S. fell just below the average, and Japan, Latvia, Portugal and South Korea scored as the least confident countries.)
While the past few months have been tough—largely because of rising food prices and worries about job security—they have not dimmed India’s fundamentally upbeat attitude. FMCG brands know that, and their stimulus into the market by way of ad spend tells the story of confidence amid anxiety.
Most of India’s biggest FMCG companies have substantially increased
expenditure over the last two quarters, contributing to continued sales growth in this rapidly developing market. According to the BL Research Bureau, the country’s biggest consumer packaged goods manufacturer, Hindustan Unilever, boosted its year-on-year advertising and promotional spend by as much as 31 percent in the 
six months to September, to 1,132 crore rupees ($241 million).
Its rivals also increased advertising and promotion spending substantially: Dabur by 47 percent, to 234 crore rupees; Marico by 40 percent, to 176 crore rupees; Godrej by a whopping 61 percent, albeit to just 94 crore rupees; and GlaxoSmithKline Consumer by 57 
percent, to 156 crore rupees. All four companies saw sales rise substantially as well.
Brands are racing to reach confident consumers in a country whose economy is expanding despite the global downturn—India’s GDP is forecast to grow by 5.8 percent for the fiscal year ending in March.
Walking around Dublin, you can’t miss the campaign from Unilever. “Who wants lower prices on the Flora range?” one ad on the side of a building reads. “Who wants lower prices on Cif sprays?” another plastered on a bus asks. “Who wants lower prices on Vaseline lotions?” yet another begs. Each time the answer—punctuated by a check mark in a box—is unanimous: “Ireland says Yes!”
Smartly, the campaign is riding the wave that followed Ireland’s overwhelmingly positive vote for the Lisbon Treaty, which includes a pulling together of all EU members in matters of legislation, trade, etc. Following the Oct. 2 vote, there was an air of good feeling (which is thin on the ground), a slight togetherness and almost a sense of maturity in the country. (When the treaty first came up for a vote in June 2008, Ireland was the only country to have a referendum out of the 27 EU states, citing reasons such as loss of sovereignty and a lack of clarity around the specifics.)
What’s even more smart is the fine print in the ads: Unilever says it’s reducing its prices for retailers “to help them reduce prices for you.” A press release about the campaign crams in the facts: “With 1.3 million Unilever products sold in retail outlets nationwide every day in Ireland and an average price reduction of 11 percent across 70 percent of its 900-strong brand portfolio, Unilever Ireland’s price reductions will play a significant part in delivering real value to consumers on premium brands.”
With Ireland’s unemployment rate hitting 13 percent, its citizens need all the help they can get. Unilever trimming prices positions the company as an ally in trying times and will help to instill good will in the consumer not only now but in the years to come.
Photo credit: Gavin Doyle
New York City’s new “NYC Extreme Local” campaign—designed to get locals spending more at neighborhood businesses during the holiday season—reflects several trends JWT has written about in the past few years.
Co-sponsored by American Express and AT&T, the print, outdoor and online campaign touts “24 days of shopping, dining, deals, events and more” in 15 Manhattan and Brooklyn neighborhoods (the emphasis on neighborhoods presumably explains the “extreme” aspect of local). A microsite also outlines a promotion: Make a total of $300 in purchases at three or more participating businesses with an American Express card and get a $50 card credit.
NYC & Company, which is behind this campaign, is one of several tourism organizations that have responded to the ongoing “staycation” trend by focusing on locals. Such efforts tie in well with the current affinity for all things local, especially at a time when many neighborhood businesses are hanging on by a thread; efforts like the 3/50 Project have sprung up to encourage people to patronize such businesses. (Most participants in the “Extreme Local” effort are independents, but IKEA in Brooklyn and a few other chain stores are also involved.)
One of JWT’s 10 trends for 2010 is Location-Based Everything, which covers the growth of location-based or -aware tools that use data from a user’s mobile phone—an area of huge potential for brands that can help consumers based on their location. We’ll see more brands building up their credentials as guides and advisers. American Express operates a travel-themed site that breaks down deals for cardholders by city. And as noted in a New York Times story on the “Extreme Local” campaign, AT&T wants to promote offerings including its Yellow Pages mobile applications.
AT&T told the NYT that it’s hoping to find similar sponsorship opportunities in other major markets. Watch for more promotions that tie these themes together.
After almost a year spent surveying brand and consumer response to the recession through our AnxietyIndex.com, we found that only a handful of the 350 examples we collected across 24 countries truly stood out. Creating innovative work isn’t easy in any economic climate; it’s even harder when marketing budgets are low and risk aversion is high.
Our AnxietyIndex Brand Hall of Fame salutes 10 of the most notable responses to the recession that we’ve seen. We believe these will hold up in years to come as case studies of work that transcend typical approaches to a downturn. Our third AnxietyIndex Quarterly explains why we think so.
Our Top 10 in ascending order:
10. American Express
9. Caixa Econômica Federal
8. Woolworths
7. Financial Times
6. Portuguese Red Cross
5. JetBlue
4. Cash for Clunkers
3. The Economic Times
2. Levi’s
1. Hyundai Motor America
You can download the whole report from the Trends and Research section or by clicking here.
We’d love to hear your thoughts. Do you agree with our choices?
In projecting Recessionary Living as a 2009 trend, we noted that out-of-home entertainment would suffer as homes became more important entertainment centers. One manifestation of this trend in the Czech Republic can be seen in The Jihlava International Documentary Film Festival’s decision to transmit films directly to households.
The festival, held in late October, had fewer sponsors this year and could secure only three cinema screens, versus six in previous years. To increase audience capacity, organizers negotiated with households willing to host viewers in their living rooms (attendees had to text a code to the festival to get address details); the screening included video of the films’ creators, who speak at the festival. The small viewing groups then discussed the documentary in a homey atmosphere, which in some cases even included home-cooked food.
In the future, such events could serve as a platform for brands to spread word of mouth during a recession.
Photo credit: muffytyrone
“2-4-6-8 ’Tis the time to liberate!” a cheery ad for the Gap reads. “We can do it modest. We can go all out. This holiday, it’s up to us to whisper, scream or shout!” The copy, surrounded by photos of plaid-attired models in this month’s Vanity Fair, is a subtle nod to the awkward place we find ourselves in this holiday season—one foot in and one foot out of the recession.
To hit the point home, copy on another page reads: “What if I go lo-tech and wrap up plaid for you? We could skip those hi-tech gifts. Plaid’s got buttons, too.” This appears to be an acknowledgement of the fact that people are not only trading down, they’re trading off: choosing one category—often a cheaper one (e.g., clothes)—over another (the latest and greatest gadget, for instance).
While Gap ads are generally fun and festive, especially at this time of the year, you wish the messaging wasn’t so wishy-washy. Should I go modest? Or should I go all out?
As we enter what looks to be a jobless recovery, watch for more brands to attempt this tricky balancing act, trying to appeal to consumers who are still very much in a recessionary mind-set as well as those with a pent-up urge to splurge.
Another Hyundai follow-up: There’s a reset happening in the U.S. car biz, caused by the financial/economic meltdown, the bankruptcies of GM and Chrysler, and even recent quality glitches from Toyota. A handful of brands are capitalizing on this reset, perhaps none more so than Hyundai, which is winning awards, gaining share and garnering more media attention. Hyundai wants the world to know this, so it created Hyundai Momentum, a place it describes as “Everything you need to know about Hyundai, as told by everyone but Hyundai.”
It’s impressive. The site highlights just how many positive things are going on with the brand, and the story is told through the conclusions and opinions of unbiased parties. This has to make an impact on buyers looking at the brand for the first time. This seems so basic; why wouldn’t all brands do this, or at least the ones with ample positive stories to share?
