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Run on banks
NYSE fell almost 50%
Led to Federal Reserve System
THE PANIC OF 1907
THE PANIC OF 1907
Wrigley’s
Began with stock market crash of 1929; lasted through World War II
Stock prices fell 90%
Real disposable income fell 28%
Unemployment spiked at 25%
9,000 banks failed
THE GREAT DEPRESSION
Kellogg’s
THE GREAT DEPRESSION
THE GREAT DEPRESSION
Kellogg’s
Chevrolet
Kellogg’s
Chevrolet
Procter & Gamble
THE GREAT DEPRESSION
Began November 1973 and ran through March 1975
High inflation made worse by war and oil crisis
Unemployment reached 9%
Inflation rose to 11%
Stock market crashed almost 50%
1970S RECESSION
Toyota
Procter & Gamble
FedEx
People magazine
Costco
Microsoft
1970S RECESSION
Started in July 1981 and ended November 1982
Increased interest rates
Slowed the rate of growth of money supply
Unemployment rate peaked at 10.8%
Inflation hit 13.5%
1980S RECESSION
Walmart
Hershey’s
CNN
MTV
The Home Depot
1980S RECESSION
2000S RECESSION
Began with collapse of dot-com bubble in 2001
Post-September 11 economy, Y2K, and accounting scandals
Unemployment reached 6%
Dow Jones worst one-week point loss in history
2000S RECESSION
Apple iPod
Crest Whitestrips
Swiffer WetJet
Axe body spray
Stopped advertisingLoss in top-of-mind awarenessLoss in awareness Negative attitude shiftLowest increase in sales two years after recession
Increased advertisingMarket share increased 1.5%Nearly 5% increase in profits275% increase in sales two years after recession
EMPIRICAL EVIDENCE
Sources: Millward Brown, AAAA, and McGraw-Hill
Recession began December 2007
Credit crunch, bankruptcy, bailouts, and housing crisis
Unemployment rate 7.6%
Drastic shift in consumer behavior since early 2008
“The worst financial crisis since the Great Depression”
CURRENT ECONOMIC SITUATION
U.S. senior marketing executives who believe that during an economic downturn, the marketing budget is the first thing to get cut
CMO SURVEY
Source: Epsilon, “Epsilon CMO Survey,” September 8, 2008
21% Disagree
79% Strongly/somewhat agree
“There’s absolutely a benefit in making changes during a downturn. As one of our vendors said: “A downturn is a terrible thing to waste.”
FRANK BLAKE, CEO, THE HOME DEPOT
Source: The Wall Street Journal, June 5, 2008
Brand-building is long-termTough times are inevitable“We never change the long-term strategy because of short-term problems”–Louis Vuitton CEO Yves CarcellePositive effects of advertising are seen well past the short termCost to maintain advertising is less than cost to begin again
BENEFITS
MOST IMPORTANT ASSET
Customers
MOST IMPORTANT ASSET
SUPERBOWL XLIII
Hyundai5 commercials2009 North American Car of the YearIntroduced Genesis CoupeOver 450 million impressions
SUPERBOWL XLIII
SUPERBOWL XLIII
Vice President of Marketing Hyundai
Joel Ewanick
Vice President of Comedy Humor Division
George Wallace
SUPERBOWL XLIII
SUPERBOWL XLIII
THE OSCARS
THREE YEARS FROM NOW?
January 2009General Motors -49%Ford -39%Chrysler -54%Toyota -32%Nissan -30%Volkswagen -16%Mitsubishi -34%Hyundai +14%
SALES RESULTS
TO CUT OR NOT TO CUT?
WHAT YOU CAN’T CONTROL
WHAT YOU CAN’T CONTROL
The Three M’s:MoneyMediumMessage
WHAT CAN YOU CONTROL?
How do you get more bang with less buck?
MONEY
MONEY
Advance Auto PartsBudget decreasedDumped sports sponsorships and national cable TVIncreased network radioOnly paid for 77% of U.S.23% saved has been reinvested in more radio“Regionalized” a network radio buy
MONEY
MONEY
Grocery OutletNever advertised before recessionNegotiate last-minute availsBuy unsold/cancelled inventoryWeekly flexibilityCover 90% of stores
MONEY
MONEY
Hyundai Dealers (Eastern Region)Voted to increase ad budgetAfforded more media weightSales outpace the rest of the countryJanuary national sales +14%January Eastern Region +20%
MONEY
Focus on vehicles with proven ROI
Narrow target to best prospects and hit them hard
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
MEDIUM
Chick-fil-ANo change to strategy and spendingHeavy users of outdoorMaintain a “wish list”General Motors canceledSnatched up prime locations
MEDIUM
Construct your message for the times
Consumers don’t disappear–they change their behaviorValue-conscious consumer mind-set and behavior shift since early 2008
“Staycations” and “cocooning”60% of Americans budgeting more this year than last
MESSAGE
MESSAGE
MESSAGE
HyundaiIdentified the real issue–consumer confidenceHyundai buyer assurance programProtection in case of “involuntary loss of income”Addressed fear
MESSAGE
MESSAGE
GameStopTwo targets: gamers and gifters (moms, grandmas, aunts, etc.)Gamers: make sure you get the games you wantGifters: 2,500 games under $20
MESSAGE
ResultsHoliday sales up 22% from last yearBest Buy game sales down 12% from last year
CONCLUSION
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