As a follow-up to my blog, "Is an economic recovery near?" I would like to share with you are new video snippets from the 2009 ANA Building in Tough Times Brand Conference where heavy-weight executives from Dunkin' Donuts, MillerCoors and Wal-Mart shared their insights and best practices in regards to overcoming tough economic times.
Thank you to AdAge for these valuable video highlights. If you have any best practices on coping with the recession, please share in our comments section on this blog, YouTube page, or email me at irina@ana.net. I'd love to hear from you!
The Psychological Boost of Coffee Marketing
Turning Beer Temperature Into Marketing Gold
Partnerships, Not Brand Renovation, Best Growth Strategy
There has always been a constant debate between McDonalds vs. Burger King, Porsche vs. BMW, and now Mac vs. PC. I use both—I have a Macbook at home and I work on a Windows Vista machine at work. Although I use them for different purposes (Mac when I am feeling creative), I like both for different reasons. However, I really love Apple ads for their creative! A recent online video ad produced by TBWA/Media Arts is especially intriguing—it takes a unique approach by telling users NOT to click on the ad. It’s sort of like reverse psychology that a parent uses to get their teenage child to listen to him/her.
This recent article reported in AdAge this week shows an ad that tells the user if he/she clicks on it, they will receive an electric shock. AdAge says that this may be the only way in the world to get more than 2.5% of viewers to click on an ad. Will this work? It will definitely arouse some curiosity, but chances are if the user is a loyal PC customer, he/she would not click on it regardless. It’s definitely creative, but I am not sure if it will help generate market share for Apple, but cheaper products might.
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At a recent ANA Central Region Workshop, Michael Dunn, CEO and Chairman of Prophet, argued that a customer-centric strategy remains a way for great companies to win, despite the current economic conditions. At many ANA workshops, committee meetings, and conferences, I have heard industry experts agree with Dunn, stressing that customer service is often what differentiates one brand from another. I could not agree more.
Given the economic conditions and the changing mindset that many Americans, myself included, are experiencing, deciding where to spend our money has become not only a decision about value, but also about our experiences as customers. People today are more willing to switch retailers or brands if they find that they are not being treated well, especially if they can get the same value someplace else.
Recently at a branch of my bank, I had some difficulties with an ATM machine while depositing a check. The manager of the branch was not only unable to help me, but he was also dismissive and unsympathetic in his manner. A few days later, after learning that the issue was still unresolved, I called the bank and was assisted immediately. The person I spoke with was courteous, knowledgeable, and friendly. My first experience with the bank made me question whether or not I wanted to keep my business with them, but the second experience reassured me and my problem was solved. The difference? An encounter with an employee who was efficient and pleasant.
In the past, customers may have been more loyal to a particular brand or company, but in today’s market all bets are off. Every encounter a customer has with a representative of your company (regardless of if they are part of the customer service division or not) contributes to the overall impression they have of your organization and making sure that customers view your organization positively is more important than ever right now. Stellar customer service in all aspects of your business can make a real difference in determining if a customer stays or goes.
Yesterday’s ANA Brand Building in Tough Times & Beyond Conference was filled with optimism, actionable ideas for marketers to cope with the depressed economy, confidence for a speedy recovery, and Donut Love. How does one recession proof their brand?
Dunkin’ Donuts emphasized the importance of relevance and empathy with their “You Kin’ Do It” campaign. The goal of this campaign was to build trust and emotional connection with their consumers because 91% buy from companies they trust. While Dunkin’ Donuts’ challenge was to convince people to spend a discretionary $4 on a cup of coffee for breakfast, Wal-mart partnered with Kellogg to encourage people to save money by eating breakfast or the Kellogg cereal at home. And unlike Dunkin’ Donuts, Walmart had an evergreen approach that wasn’t fundamentally different from when the economic times are better. Their proposition, “Save money, live better” is just as relevant today as it’s always been, except now they shifted their focus from functional to an emotional relationship with their consumers. As a matter of fact, the two themes based on both campaigns emerged at the conference: 1. Know your customers and 2. Build an emotional relationship with them. This is nothing new, however. Instead what marketers are doing today is they are going back to marketing 101. In 2006 at the ANA Annual Masters of Marketing Conference, the same theme emerged, and we certainly did not foresee an economic crisis then.
The other commonality all of the presenters shared at yesterday’s event was involvement in social media. After all, it’s free and everyone is using it—what’s a better way to continue marketing your business in tough times? Dunkin’ Donuts said it best, “We don’t have to justify Twitter, it is a real-time customer service, customer promotion.” It seems like everyone is tweeting—thank you for everyone who was tweeting at the conference. Just search #ANA to see all of the tweets from the ANA Brand Conference.
Finally, I’d like to leave you with a touch of optimism, “I was asked what I thought a recession. I thought about it and decided not to take part.”—Sam Walton, founder of Wal-mart.
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When the economy tightens, many companies resort to the mislabeled sales strategy of offering discounts. Discounting on price is not a sales strategy. It's an impulsive move made by desperate salespeople. In a tough economy, customers think and expect everything is going to be discounted. Because of this, salespeople feel it’s necessary to oblige the customer to close the deal. Unfortunately, the discount ends up altering the attitude of the customer who now believes the real value of the product or service they bought is the reduced price and not the full one. Maintaining your pricing integrity in a down economy is truly a winning strategy because, in the end, profit margins are higher, the ability to service a customer is better, and the confidence of the salesperson is greater.
Although Starbucks (SBUX) has recently reported a 77% profit drop, the company is launching a multi-million marketing and advertising campaign "focused on the quality and values Starbucks offers ” in order to combat perceptions that its products are over-priced. The goal of the campaign is to remind customers why they’ve loved Starbucks coffee from the beginning. In today’s marketplace where most are cutting ad spending and are offering discount with increase retail market share, Starbucks is taking a different approach. I have to applaud Starbucks for sticking to its brand message and showing confidence despite closing doors to more than 300 Starbucks restaurants. Customers will shop where they feel confident in that business, one that is communicating and is sending the message out that it is here to stay, aka Starbucks.
At a recent ANA workshop, Don Sexton, Professor at Columbia University said companies who maintain or increase their marketing budgets during a recession experience higher sales growth than those who reduce or cut their budgets. “Top Ten Ways to Bounce Back From Tough Economic Times,” written by Bob Liodice, CEO/President of the ANA also urges marketers to invest in a brand more rather than less.
A few weeks ago I was coming out of the subway station at Grand Central and noticed that the turnstiles looked different than usual. On second glance, I saw that the turnstile bars were wrapped with ads for an unnamed airline. As far as I could tell, there weren’t other ads for this airline in the subway station. Granted, I didn’t go running around the subway station looking for more ads (who has time for that during her morning commute?), but it appeared that the advertising was limited to the turnstile bars. I may not even have remembered the campaign, except that later in the week as I walked through a different part of Grand Central, I saw ads for the same airline on the walls. Were these two campaigns related? Maybe, but I’m not sure.
Another more effective example of out of home advertising in New York’s subway stations comes from UPS. Senior VP and Creative Director Andy Azula discussed the campaign at this year’s TV & Everything Video Forum. In this case, UPS wrapped underground subway pillars to look like whiteboard markers and used nearly-blank white wall ads that resembled whiteboards. Consumers could see how the wall ads and the ads on the pillar were connected. This was an engaging and interesting campaign.
I still wonder if the two ads for the airline were connected or not. If the turnstile bar wrappers were only one piece of a campaign, where was the rest of the campaign that I missed? Was the campaign really spread throughout Grand Central? Or were the turnstile bar wrappers the entire campaign? If so, it wasn’t entirely effective. While the wrapped turnstile bars caught my attention, more than anything, I was puzzled by them and certainly wasn’t moved to do business with the company. I think this was a lost opportunity for the airline to create an exciting out-of-home campaign. Instead of being engaged, I was just confused.