Consumer Brand Loyalty In A Recession (Final)

Pulse Breakfast Series ‘09

Consumer Brand

Loyalty in a

Recession

The Economic Landscape

2008/09 Global Economic Scene“Consume

rs continue trading down across

spending opportuniti

es.”

“Regardless of categories,

consumers will adopt new mindsets, new behaviours, and

new habits during the year to come.”

“The outlook for the global economy

continues to remain bleak. IMF has

estimated that world economic growth will fall to 0.5% in 2009, which is the lowest

rate since World War II.”

“Consumers are making

tough choices

about the products

they purchase

and where, and they are

looking harder for

value.”

"The outlook for the national economy, the outlook for the local

economy relative to the national economy and the

outlook for local sales growth range from

moderately to deeply negative."

2009 Malaysian Economic SceneThe Malaysian economy

contracted at a slower rate of 3.9% in the second quarter of 2009 due mainly to higher public spending and positive growth in private consumption. Growth continued to be affected by weak external demand and private investment activity. All economic sectors registered improved performance with construction, services and agriculture registering positive growth, according to the Department of Statistics Malaysia.

The Survey

Methodology

ObjectiveThe survey aims to study consumers behaviors and opinions towards the current economic outlook in their respective countries.

How did we achieve this?7 countries were selected (Australia, China, Hong Kong, India, Malaysia, Singapore, Thailand) to participate, where 500 national representative random respondents were selected from Planet Pulse in this 15-minute survey.

Facts and Stats

State of Economy 2009

Which of the following do you think best describes the current state of the economy?

Which of the following describes what you think of the current state of the economy compared to 6

months ago?

Although most think that the current state of economy is neither strong nor weak, many find it better compared to 6 months ago

49%

Base = n500 National Rep Malaysia

Spending Habits

How has the state of the economy affected the way you have spent your money in the last 6

months?

More than 60% claimed they spent money more cautiously than before while almost half expect to continue spending cautiously in

the next 6 months

How does the current state of the economy affected the way you expect to spend money in

the next 6 months?

61%

Base = n500 National Rep Malaysia

Brand Loyalty

Based on the current economic situation, how loyal are you to your favourite brands in the following categories?

While many consumers are

cautiously spending their

money currently, most are still

expected to stick to their favourite brands of FMCG such as personal care products,

daily food items, and children’s milk powderBase = n500 National Rep Malaysia

Loyalty Drivers

What would you say is a real loyalty driver for you?

Value is main

loyalty driver

Base = n500 National Rep Malaysia

Brand Switching Factors

What would make you switch brands amongst the following categories?

Price is

THE facto

r!

Base = n500 National Rep Malaysia

Price Factor in a Recession

Most people are more price-sensitive now and would consider

switching products at a lower price.

The recession has also effected where people

shop.Base = n500 National Rep Malaysia

In today’s economy, would you like to see more or less advertising?

How important are advertisements about promotions and sales?

More advertising, please. Most find ads on sales and promotion important.

Advertising Needs

Base = n500 National Rep Malaysia

Are you attracted by tactical promotions and mega sales offered by retail outlets?

What form of advertising is most effective to you?

Advertising Platforms

Print, TV,

Online most

effective

Tactical promotio

ns are working

Base = n500 National Rep Malaysia

Which medium suits you best?

Media Preference

Online is the most preferred medium among respondents. A survey by Google South-East Asia

reveal that 59% of active online consumers cite search engines as a specific source for

researching a new product while 79% use the Internet

during the purchase process

Base = n500 National Rep Malaysia

Asia Economic Weather Map

Base = n500 National Rep Malaysia

Conclusion

1 CONTINUE TO INVEST IN

MARKETING Less clutter, louder voice

2ENGAGE WITH YOUR CORE

Strengthen relationships with yourCore audience

3

ADD AND DELIVER VALUEEnhance your proposition to

Sensitive shoppers

4RESEARCH AND INNOVATE

Risk being different

5

GO DIGITALReach and engage customers

With Media 2.0

6

BE TACTICALKeep you ears close to the ground

and be ready to react to changes swiftly

Base = n500 National Rep Malaysia

What’s Next…

Thank You!

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