News

By Anthony Bennett, Managing Partner

A few months ago, we published the RedSky COVID Marketing Impact Index. Its purpose was to gain an understanding of how different sectors of the economy would be impacted by the pandemic financially, and from a consumer behavior perspective. The results of the index were shown in the chart below — demonstrating that some sectors might do well now, but could potentially experience negative long-term repercussions.

Today, we are looking at categories in the top right-hand quadrant. These categories have experienced positive short-term financial impacts and are likely to see longer-term favorable trends based on consumer behaviors. In these categories (e.g. children’s products, household supplies), buying habits during the pandemic haven’t changed significantly. . In some cases (e.g. snacks, nutritional supplements), buying habits even improved. 

If you’re a marketer for a brand in this quadrant, well done! You struck gold — but how do you handle the success?  Based on our client work, here are five marketing behaviors to successfully dominate your category going forward.

    1. DON’T TAKE YOUR FOOT OFF THE GAS

Multiple studies demonstrate how brands that maintained or increased their marketing during a recession did significantly better than those that cut their budgets. Given that your competitors are likely also surviving, this is a great opportunity to invest some of your gains into your brand and keep it top of mind.

     2. ADJUST YOUR MESSAGE TO FIT THE TIMES

Aggressive marketing from some categories, like consumer staples, could be seen as bad form. When there was a shortage of toilet paper, consumers were not going to be receptive to traditional Charmin commercials. Smart marketers in this category have adapted their message to more overtly demonstrate their purpose, which shows how they are helping the community at large. Lysol’s new campaign “For Healthy Schools” is a great example of showing the brand’s role during the back-to-school season. 

     3. INVEST WISELY

In some cases, a huge influx of cash can be a curse, not a blessing. One of our clients raised a lot of money — rapidly — for his startup. In hindsight, he felt he could’ve spent the money more effectively if it had come in at a slower pace. Frugality makes us more choosey. This is why it’s so important to consider where the profits are coming from today, and more importantly, to invest in where money is  going to come from  (products, markets, segments, etc.) in the future. Making clear tradeoffs and ensuring that you are “fully funding” your core products or markets is critical — even when there are seemingly enough resources. 

    4. UNDERSTAND NEW CONSUMER PSYCHOLOGY

Astute marketers have realized that much of their research prior to 2020 is now out-of-date as behaviors have changed dramatically. This means reviewing your segmentation and customer journeys. Consumers’ mindsets and behaviors change during recessions and could fundamentally change the segmentation itself. Do you know how your customers are reassessing their priorities, switching brands and redefining the price-value equation? Fresh Del Monte, a supplier of fresh fruit and vegetables, has been researching changes in consumer behavior as it relates to selecting produce in-store (increased safety concerns) and online (how to ensure freshness). This will help Del Monte adapt their marketing and messaging to new consumer behavior.

    5. GIVE CREDIT TO YOUR TEAM

Internal marketing is crucial during times of panic and confusion. This does not need to be an overt message to the public. The message has to be appropriate if there are layoffs or furloughs, but employees have long memories and are likely to appreciate encouragement of the work they are doing. For example, Abbott has been effusive in recognizing the work its teams did to develop a rapid antigen COVID-19 test.

With the ever-changing landscape of consumer behaviors and attitudes, brands have to be thinking ahead to ensure success. Even if your company is afloat now, buying habits could shift as the pandemic continues. Follow the five aforementioned tools to succeed in your category, or reach out to us for a specific approach on how your company can thrive in the coming weeks and months.