COVID-19 BRAND &

MARKETING ADVISORY

18th March 2020

AGENDA1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

AGENDA1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

SOURCE: SOCIAL MEDIA POST ‘KATRINA’

“IF GOVERNMENTS ACTUALLY INFORMED

PEOPLE BEYOND ‘WASH YOUR HANDS’ AND MEDIA ASKED DIRECT PRACTICAL

QUESTIONS PERHAPS AUSTRALIANS

WOULDN’T FEEL SO SHIT SCARED”

THREE IMPORTANT POINTS:

Consumers are looking for

reassurance and guidance from sources they

can trust.

Consumption of media content on coronavirus

is growing exponentially.

Sentiment has shifted from

neutral to negative, driven by fear and misinformation.

1 2 3

CORONAVIRUS SEARCHES ON GOOGLE HAVE RAPIDLY SURPASSED THE PEAK OF BUSHFIRE SEARCHES BACK IN JANUARY

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coronavirus: (Australia) bushfires: (Australia) Kim Kardashian: (Australia)

Interest over timeNumbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak popularity for the term. A value of 50 means that the term is half as popular. A score of 0 means there was not enough data for this term.

SOURCE: Google

TRENDING TOPICS WITHIN THE CORONAVIRUS SEARCHES ARE VOLATILE AND REACTIVE TO MASS MEDIA COVERAGE

SOURCE: OMD MARKETING INTELLIGENCE

NEGATIVE SENTIMENT HAS INCREASED ESPECIALLY AS THE IMPACT ON INDIVIDUALS INCREASES

SOURCE: BRANDWATCH

INDIVIDUAL INSECURITY THEN STIMULATES INCREASED GOOGLE SEARCHES AS PEOPLE WANT MORE INFORMATION

SOURCE: ANSWER THE PUBLIC

AGENDA1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

Sales data, enquiries, web-traffic, chat-bot, emails, front-line retail etc.

1st Party Data 2nd Party Data 3rd Party Data

Social media, search, consumer sentiment, government etc.

Purchased data including: financial transactions, media audiences

DATA COLLECTION IS THE FIRST STEP TO UNDERSTANDING CONSUMER SENTIMENT

Source: CRM, staff, GA, sales Source: Facebook, Roy Morgan, Google Source: Acxiom, Nielsen, GfK, Red Planet

PEOPLE ARE CALLING OUT TO BRANDS TO TAKE ACTION; LACK OF INFORMATION INCREASES ANXIETY AND NEGATIVITY

SOURCE: OMD MARKETING INTELLIGENCE

Uninformed, leading to state of chaos Racism peaks Consumers demand actions from brands

LISTEN TO YOUR CONSUMERS AND RESPOND TO THEIR IMMEDIATE ANXIETIES: THE FIRST PRIORITY IS CUSTOMER WELFARE

AGENDA1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

MARKETERS SHOULD BE ASKING THESE QUESTIONS:

QUESTION 1 QUESTION 2 QUESTION 3What are customer

expectations of our brand at this time?

Is the virus impacting our

ability to service our customers?

Is customer behaviour

changing as a result?

ANXIETY WILL DOMINATE ALL CUSTOMER DECISION MAKING, REMOVING ANXIETY IS CRITICAL

(BUSINESS AS USUAL)

IF CONSUMER BEHAVIOUR IS CHANGING UNDERSTANDING THE CAUSE IS KEY TO PLANNING YOUR RESPONSE

(SEE NEXT SLIDE)

THE CAUSE OF THE CHANGE WILL DICTATE YOUR RESPONSE

PEOPLE WANT TO KNOW WHAT YOU ARE DOING; START BY REASSURING THEM THAT THEIR WELFARE IS YOUR FIRST PRIORITY AND THEN WHAT ACTION YOU ARE TAKING

AGENDA1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

UNDERSTANDING CONSUMER MOOD SETS THE TONE FOR MAR-COMMS

*

*SOURCE: WARC

COMMUNICATIONS SHOULD THEN FOLLOW A STAGED PROCESS TO ENSURE CONSUMER ENGAGEMENT AND SUPPORT

AGENDA1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

1 CURRENT PUBLIC SENTIMENT

2 UNDERSTANDING YOUR MARKETPLACE

3 WHAT IS THE RIGHT RESPONSE?

4 TONE AND EMPATHY

5 RECOVERY PLANNING

THE VIRUS WILL PASS AND SOCIETY WILL RECOVER, THE SHAPE OF THE RECOVERY WILL DETERMINES THE MARKETING RESPONSE

In a V-shaped recession, the economy suffers a sharp but brief period of economic decline with a clearly defined trough, followed by a strong recovery. V-shapes are the normal shape for recessions, as the strength of economic recovery is typically closely related to the severity of the preceding recession.

The challenge for brands during a V-shaped recovery is meeting consumer demand with supply chains, with customer service and retail under pressure to keep up. During a V-shaped recovery it is critical brands manage expectations to avoid alienating customers and sending them to competitors. Search and e-commerce will be leading channels with social media influence from peers directing consumers to new sources for products in short supply.

VA ‘V’ SHAPED RECOVERY

SOURCE: Investopedia

THE LONGER AND SLOWER THE RECOVERY THE MORE NEED TO INVEST EARLY IN MARKETING TO STIMULATE DEMAND

A ‘U’ SHAPED RECOVERY

UA U-Shaped Recovery is a type of economic recession and recovery that resembles a U shape when charted. A U-Shaped Recovery represents the shape of the chart of certain economic measures, such as employment, GDP and industrial output. It is usually a longer recovery period compared to a V-shaped recovery.

The challenge for brands during a U-shaped recovery is stimulating demand and providing confidence. Spending will initially be slow and may be constrained. It is essential to provide reasons to purchase and positive urgency. Consumers will be looking for value so provide incentives to speed purchasing. TV, OOH and Radio will be key channels to drive awareness and prompt immediate action.

SOURCE: Investopedia

THE CHINA SYNDROME – POST VIRUS MASS MEDIA CONSUMPTION INCREASES AND SO DOES CONSUMER DEMAND

TV viewing in China has leaped following the virus. Audiences have stayed high even after the peak of the infection. People are relearning old habits in terms of media consumption. These mediums provide a trusted, reassuring environment for brands.

Demand recovery can be both V and U shaped depending upon the category. Household goods, fashion and alcohol have rebounded sharply and could grow faster than pre-virus projections. Travel is the big loser as people cancel foreign travel and instead stay at home.

THE MOST RESILIENT COMPANIES, THOSE THAT BOUNCE BACK FROM A CRISIS QUICKLY AND STRONGLY, SPARE NO EFFORT IN PLANNING FOR THEIR SHORT, MEDIUM AND LONG-TERM RECOVERY

A SHORT TERM CANCELLATION OF ACTIVITY WILL HAVE LITTLE IMMEDIATE EFFECT, HOWEVER THE LONGER ADVERTISERS STOP THE GREATER THE DAMAGEIn the short run, going dark has little impact on brand or business metrics

Source: Kantar Millward Brown, “What happens when brands go dark?”, Millward Brown Knowledge Points, July 2018.

Source: Kantar Millward Brown, “What happens when brands go dark?”, Millward Brown Knowledge Points, July 2018.

… however, longer periods off air will likely weaken brand health

CUTTING AD SPEND OPENS THE DOOR TO COMPETITORS ESPECIALLY SMALLER CHALLENGER BRANDS WHO CAN GAIN DISPROPORTIONATE SHARE OF VOICELong periods off air will also likely damage a brand’s market share

Source: Peter Field, “Marketing in a downturn: lessons from the past”, Market Leader, Autumn 2008.

Source: Stephen Whiteside, “Advertising in a downturn”, WARC Exclusive, April 2008.

Long periods off air will likely weaken a brand’s bond with its consumers

CUTS IN AD SPEND SHOULD BE CONSIDERED IN THE CONTEXT OF SOV Even reducing spend will likely cause damage

Source: The Advertising Research Foundation, “Decreased TV advertising spend hurts sales”, ARF Experiential Learning, Re!think 2016.

Source: Stephen Whiteside, “Advertising in a downturn”, WARC Exclusive, April 2008.

Once decline sets in, it may be hard to reverse

MAINTAINING SPEND IN THE SHORT AND MEDIUM TERM WILL PAY-OFF IN THE LONG RUNThis is especially true in time of recession*

* Source: Stephen Whiteside, “Advertising in a downturn”, WARC Exclusive, April 2008.

Source: Alexander L Biel, “The cost of cutbacks. cut budgets may not pay - even in the short term”, Admap, May 1991.

Investing in ad spend in time of recession brings long run advantage

ALL BRANDS SHOULD START PREPARING SHORT, MEDIUM AND LONG-TERM MAR-COMMS PLANS

SHORT-TERM MEDIUM-TERM LONG-TERMMaintain or grow SOV while competitors are not acting and media costs are low

due to increased audience. This will disproportionately

benefit you well into the future.

Start communicating directly to consumers about

your crisis measures, put them first in all mar-comms. Be honest and authentic but

demonstrate you have a plan.

Model what type of recovery is happening in your category. React accordingly with either

a stimulus campaign or an education campaign on managing excessive

demand.

For further information please contact your Marketforce Group team or email

amarshall@marketforce.com.au

18th March 2020