Navigating Your Brand Through Covid-19
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The document outlines how COVID-19 has disrupted global businesses and consumer behavior, necessitating brands to adapt their strategies to meet changing needs. It emphasizes the importance of maintaining brand messaging without appearing exploitative, advocating for empathy and support over aggressive sales tactics. Brands must focus on providing relevant solutions and content rather than traditional promotions, with a forward-thinking approach as the economy begins to recover.
Navigating Your Brand Through Covid-19
- 2. What’s going on? How it’s affecting brands What brands shouldn’t do What brands should do Thoughts for the future 2 Our guide will provide you with a roadmap of the current situation, what this means for brands, and what you can do in the coming months to protect your brand’s vitality
- 4. 4 The situation at hand Covid-19 has had far-reaching impacts on global businesses and consumers alike, disrupting the world economy and our daily routines seemingly overnight. This is uncharted territory, an unprecedented scenario that could never have been foreseen.
- 5. 5 Rapid Expansion As of April 1, more than one million people across the globe have tested positive for Covid-19, and this figure continues to grow every day. Half of humanity is under lockdown with nearly four billion people confined to their homes. Most operations, other than essentials, have ceased. Nations, economies, supply chains, workforces, relationships, and spirits are being tested as we fight to stop the spread. No one knows how long it will last, or when “normalcy” will return.
- 7. 7 Post Covid-19 consumers have changed — brands must adapt to their new realities.
- 8. 8 T H E N N O W Outside Communal Productive In-person Routine Comfortable Busy Thriving Inside Isolated Stunted Virtual Unknown Anxious Bored Surviving Consumer behaviors, daily routines, & lifestyles have flipped:
- 9. 9 Media usage is up People are at home and seeking distraction from their anxieties about the pandemic. They’re consuming media now more than ever, passing time alone or in small groups. Whether it’s binge- watching Tiger King on Netflix, staying in touch with others via phone or video chat, or working remotely while watching YouTube, isolation has led to a massive increase in social media, video game, streaming, and mobile usage.
- 10. 1 0 Over the last two weeks, nearly 15 million people applied for unemployment in the U.S. Those who remain employed are struggling to maintain “business as usual” with limited resources. Share of wallet is more competitive than ever as consumers with less discretionary funds prepare for long-term lockdowns and focus more on needs vs. wants. Consumers have decreased or altered buying potential Source: CNBC, 4/8/20- https://www.cnbc.com/2020/04/08/five-million-more-unemployment-claims-expected-but-now-layoffs-could-be-more-permanent.html
- 11. 1 1 While the total number of shoppers has decreased, those that do shop are taking advantage of deep discounts and promotions being offered by brands to encourage sales during this time. Products considered “essentials” for isolated living are booming, including home office supplies, consumer electronics, and at-home fitness equipment. Wine & Spirits is the #1 fastest growing product category, with a 200% increase in purchases since March 13. Consumers have also made self-care a priority, leading to a 40% purchase growth for Health & Wellness products. As time goes on, consumers spend less on the survival items they purchased at the outset of the pandemic, and more on aggressively discounted luxuries and items that will make their isolation more comfortable. Those that do shop are deal-seekers Source: SteelHouse Data
- 12. 1 2 Simply put, online shopping is where it’s at right now. Social distancing and isolation have taken away the opportunity for in-person purchase. The need for digital transformation is heightened as consumers rely heavily on digital buying solutions. Brands must consider shifting all operations and distribution to online channels. DTC e-commerce is king
- 13. 1 3 Brands are adopting a new moral compass The most effective brands during global crises are those that can adjust their tone and behavior to accommodate consumers’ changing needs. Brands that continue to push sales too hard or appear to capitalize on tough situations are a major turnoff. Consumers are looking for empathy, authenticity, and support.
- 14. 1 4 Be different. Be better. Because we have to be better now. Show your humanity behind the brand. P E T E S E N A , C E O & F O U N D E R O F D I G I T A L S U R G E O N S
- 16. 1 6 Go dark.
- 17. 1 7 When the going gets tough, consistent brand messaging matters most.
- 18. 1 8 Although 74% of U.S. business economists believe a slowing economy will tip into recession in 2021, reacting quickly and slashing advertising budgets can make things worse. Slashing budgets can have an adverse effect
- 19. 1 9 Protect your investments Brands that safeguard the hard-earned equity they won in their marketing and brand campaigns will preserve the foundation they need to grow and rebound.
- 20. 2 0 If companies cut deeply into advertising and communications in a down period, the cost to regain share of voice in the market once the economy recovers may be four or five times as much as the savings realized. Reacting rashly now can cost brands later
- 21. 2 1 A man who stops advertising to save money is like a man who stops a clock to save time. H E N R Y F O R D
- 23. Understand the voice of your customers.+ What are the implications on your product and service offering likely to be in the coming months?+ What reassurance and value can you offer customers immediately through marketing that these needs will be met or improved? + Is your marketing on the side of the people, playing into their new needs or assuaging their anxieties?+ Have you updated your media plan to reflect consumers’ new media consumption?+ Pause. Listen. And then respond.
- 24. Yes, we’d love a purchase, but let’s focus on how we can help you right now. Brand perception is paramount. It’s times like these that brands must rely on authenticity and their core values to ensure they are not capitalizing on a tough situation. Consumers want to surround themselves with brands that reflect their own beliefs and philosophies, while also easing their anxieties. Times of uncertainty can become opportunities for brands to build trust, loyalty, and emotional connection - and that will yield higher ROI in the long run.
- 25. 2 5 Now is the time for brands to shift gears from active promotions to support. Consumers will remember the brands that went out of their way to provide solutions outside of their normal realm. In troublesome times, consumers are also more willing to spend with companies that are helping. But brands don’t have to make grand gestures to be noteworthy. Providing shareable content, fun activities to alleviate boredom, and quick tips to weather the storm will go a long way. This is a great opportunity for brands to provide content in the absence of marketing spend. Helping vs. Hyping
- 26. 2 6 Don’t sell. Support. IN SUMMARY
- 27. 2 7 Don’t take part in discussion that doesn’t feel authentic to your brand. Consumers are turned off by brands who unknowingly overstep their bounds. Know your role and the value you can provide during this time. Find your voice.
- 28. 2 8 In the past, we’ve seen lots of companies that have had the best, brilliant intentions but the intentions were poorly executed. This is not the time to be beating your own chest. This is the time to be a good corporate citizen to contribute to the public good, and not to be ‘seen’ as a ‘super good company.’ J A Y M I L L I K E N , P R O P H E T S P & A S I A R E G I O N A L L E A D
- 29. 2 9 Maintenance Mode. Resist the urge to go dark. Maintaining brand voice during times when competition recedes will propel brands with less awareness into the spotlight. Consumers want consistent messaging from brands they trust, as a way of knowing that no matter what, their favorite brands and companies will be there for them today, and tomorrow. During the 17-month energy-crisis recession that began in 1973, Toyota was behind Honda in fuel efficiency. But they maintained a long-term ad strategy, surpassing Honda and Volkswagen for top imported carmaker. Additionally, the cost of regaining SOV when the economy recovers may far exceed any savings realized now.
- 30. 3 0 If paid media is still active, ensure all tactics are hyper targeted to reach your consumers where and when they are right now. Now more than ever, media must be highly efficient, backed by data, and executed with purpose. Brands that opt to pull back paid media during this time can also maintain brand voice through content strategy and social engagement. Lean & Mean. Think about: • Where and how can we streamline our efforts? • Are there any marketing efforts that are no longer appropriate given the current climate, or that may have a negative impact in brand perception? • Are you reaching consumers where they are right now? Turn off all marketing streams focused on out of home tactics. Bring everything in-house.
- 31. 3 1 66% Of social media users say their social media usage increases significantly as they are confined in their homes. 60% Increase in the amount of content watched or viewed. 61% Increase in streaming services usage as bored, homebound viewers are consuming media now more than ever. Disruption leads to an increase in media usage. Leverage media when and where consumers are using it most. https://techcrunch.com/2020/03/17/nielsen-explains-how-covid-19-could-impact-media-usage-across-the-u-s/
- 32. 3 2 Consumers behave differently in economic downturns, and so should brands. According to Harvard Business Review, consumers prioritize consumption by sorting products and services into four categories: essentials, treats, postponables, and expendables. As consumers reprioritize needs over indulgences, brands must identify the needs they can fulfill. Shift Gears.
- 33. 3 3 What are your customers’ new immediate needs and pain points? Marketing that is emotionally resonant and speaks to needs is more effective. Why does your best consumer value you? How do your products make them feel like they’re at their best? Leverage these insights to provide value and content that will alleviate their struggles. Empathize.
- 34. 3 4 Self Esteem Love & Belonging Physiological Safety Productivity, creativity, spontaneity, acceptance, experiences Community, self-esteem, confidence, achievement, respect Friendships, family, & intimacy Body, employment, resources, property, family, morality Food, basic amenities & utilities, sleep Meet the new Maslow. Start your marketing planning process for Covid-19 by thinking about your customers’ new needs mapped against a hierarchy (at right). Brands that can address the bottom & middle of the pyramid should go first & boldly. Brands towards the top may like to enter more carefully. Based upon Abraham Maslow’s Hierarchy of Needs
- 35. 3 5 01Establish new needs 02How your product or services could address them 0 2 03 040 3 Create marketing assets to highlight value What value can be added 0 40 1 • Connection • Productivity • Learning • Exercise & Wellbeing • Entertainment • Food Ideas • Home Improvement Tailor your marketing tactics to the needs of today • Phone & Tablets • Remote working systems • Phone, Tablet, VR • TV, Watch, Tablet • TV, VR, Board Games • Food & recipe ideas • Furniture/Interior Design • Provide opportunities for engagement and virtual experiences • Work from home kit • Virtual learning series • Virtual exercise tips • 10 minute recipes • VR room planners or curated ‘cleaning influencers' • Content • Ads • Actions • Tone & Voice
- 36. 3 6 Thought Starters: Covid-19 Needs & Mindsets Survival Anxiety Autonomy Tech as savior Cabin fever Direct to my door Virtual adventures Treating the planet better Sustainability Isolation Loneliness Small mercies Time well spent Slow living Communities Giving back Family time Local Digital activism Burn out Boredom Personal growth Home office/ home balance Finances Mental health Eating well Fitness Home improvement
- 37. 3 7 Don’t go dark. Find new, relevant ways to empathize and engage with your consumers to fulfill their new needs. IN SUMMARY
- 38. 3 8 Thoughts for the future
- 39. 3 9 Be ready for when the economy picks up again. In the post Covid-19 world, there will be lots of small moments that gain new emotional resonance: the first glass of wine with friends, the first dinner party on a warm summer evening, getting back to our routines and the things we enjoy most for the first time in months. Brands can elevate these moments and make them feel even more special. Start thinking forward!
- 40. 4 0 One last thing…
- 41. 4 1 Be curious. The world is constantly changing, and the more we ask, explore, wonder, understand, and ideate on, the more we can accomplish. Curiosity helps us understand what’s happening today, so we can define what’s possible tomorrow for ourselves and for you. F E E L T H I N K D O B E L I E V E Care greatly. Adapt & respond. Simply believe. About our work. About our partners. About each other. We’re at our best when we care about what designing demand, who we’re doing it for, and why we’re even doing it in the first place. By opening up our hearts, we create human connections that benefit everyone. Change is inevitable, so it is those who welcome it and react effectively that succeed. That’s why we find not uncertainty in change, but wonder & possibility in it. It’s a new opportunity to create, to collaborate, and to change our world for the better. There’s magic to be discovered through business, technology, and creativity. It’s in there, in us, and in you, but only if you believe in it. When you do, we can transform businesses and inspire people to engage with brands — even to fall in love with them. These are our values and they haven’t changed. We believe them now more than ever. Let us know how we can help your brand move forward and navigate through this time.
- 42. 4 2 Thanks! For more thoughts on how to navigate your brand through Covid-19, feel free to reach out to us at connect@digitalsurgeons.com.