Less is more. Brand Building with a small budget

  • View
    4.371

  • Download
    1

Embed Size (px)

Text of Less is more. Brand Building with a small budget

  • 1.LESS IS MORE BRAND BUILDING WITH A SMALL BUDGET, 27 2009

2. BIG, DIFFERENT OR SMALL, 27 2009 3. It is not the strong, nor the intelligent whosurvive, but those who are quickest to adapt.Charles Darwin, 27 2009 4. THE MOST CHALLENGING BUSINESSENVIRONMENT FOR YEARS, 27 2009 5. SAY THE R WORD Recessions caused by liquidityproblems are particularly severe.In recent months we have seenmajor financial institutions andthe worlds stock marketscollapse. Some companies do succeed inrecession. They see it as anopportunity for growth. Your company needs to estimatethe profitability of marketingspend. The time is now., 27 2009 6. CUT THE MARKETINGBUDGET, 27 2009 7. CUT BUDGET, 27 2009 8. FLIGHT, FRIGHT OR FIGHT, 27 2009 9. Why? Is your industry recession-proof or recession sensitive? Where does your companyplace on the scale? How can marketing help growprofit? Can you deliver a knock-outblow to competition?, 27 2009 10. RECESSION EXIST ON(LY), INTHE MIND OF THE CONSUMER, 27 2009 11. Changes in consumer behavior depend not somuch on how much money people have, buton how they view that amount. It depends notso much on their current financial situation,but on their expectations., 27 2009 12. Recession-proof They expect their incometo grow. Theyreconfident about theirincome and savings. A recession does little tochange their behavior. Enjoying the materialbenefits of life isimportant to them, sothey will keep buying topof the line brands., 27 2009 13. Solution-seeker Even in deep recessionthis group is optimisticabout their future. Theybelieve they will keeptheir jobs. Their life is not so muchfinancial gain asachieving what they seeas the good life., 27 2009 14. Security-seeker These people areobsessed with financialsecurity. They are looking for morethan just a good buy. Their need for securityleads them to well knownand trusted brands thatoffer reassurance andstability., 27 2009 15. Vulnerable These people haveopposing life goals. Theywant the better things inlife for the social statusthey bring. But at the same time theyfeel the need to becautious and protectthemselves. They may switch to buyingproducts and brands thatare more affordable., 27 2009 16. PUT AN END TO TELE-TERROR, 27 2009 17. WINNING STRATEGIES IN RECESSION, 27 2009 18. No moreMr. Nice Guy Recession is an opportunity to put weaker competitors out of the market. Review your competition to see which brands are vulnerable. Is the cost of additional marketing support less than the potential gain? Research will help you here. A decline in the strength of consumers relationship with the brand can be seen in research after 6 months., 27 2009 19. Harvest the Cow Companies that increasemarketing spend in recessionincrease their market share. Higher ad-spend achievesgreater share gains duringrecession times. New and improved productshave more consumer impactwhen competitors are weak., 27 2009 20. High Value Consumers always look forvalue for money, especiallyin recession. Value doesnt mean cheap.Value for money can bedefined as (relative) pricetimes (perceived) quality. You can improve yourbrands value by increasingits perceived quality at thesame price., 27 2009 21. INVEST IN CREATIVITY, 27 2009 22. CREATED DURING RECESSION TIMES, 27 2009 23. HOLLYWOOD DOES WELL IN RECESSION, 27 2009 24. EmotivePersuasiveInformative604530150 SalesMarket Share Profit Loyalty Source: Binet, Less and Field: Marketing in the Era of Accountability Base: 880 Campaigns 1979-2006APPEAL TO THEIR EMOTIONS, 27 2009 25. On Target Multi-channel campaignshave better success rate(65%) than single channelcampaigns (58%). Dont spread your budget toothinly across too manychannels. The crucial metricin every channel is alwaysthe share of voice relative tothe competitors., 27 2009 26. THE MEDIUM IS THE MESSAGE, 27 2009 27. OK, WERE DESPERATE, 27 2009 28. Where to cut Drop support for stagnantbrands. Exploit seasonality to makecuts in off-peak sales periods.The sale loss will be lower. Small brands often take adisproportionate share ofmarketing spend becausethey are trying to grow, butbigger brands are likely todeliver bigger returns in theshort term., 27 2009 29. Great advertising can sell 20 times more thanaverage advertising. The recession will putextra pressure on the advertising budget, youneed a bigger bang for every cent., 27 2009 30. CHOOSE AN AGENCY THAT LOVES EFFIES, 27 2009 31. ENGAGE THEM WITH YOUR BUSINESS, 27 2009 32. CorporateMarketing Communication Advertising StrategyStrategyStrategy Strategy DEFINE ADVERTISING EFFECTIVENESS IN TERMS OF YOUR CORPORATE GOALS, 27 2009 33. Written Briefs Everything flows from your brief: it is the platform for the communications strategy and the internal creative brief, for the creative work and the media mix. The more clearly you key business issues and objectives are defined, the more likely is to get effective work. Written briefs save you time and money., 27 2009 34. Building a bridge Briefing an agency is likebuilding a bridge. Begin by explaining whereyou want the bridge to startfrom. Thats point A. Then you would say where itshould go. Thats point B. Dont tell them how to buildthe bridge, this is their job.They are the specialistsafter all., 27 2009 35. Dont use Creativeto clarify Strategy On average 75% of creativeideas go through threestages of approval, and 22%go through four. Informal or sloppy briefingfrom junior members of theteam, or changingrequirements cost you timeand money. Set the objectives beforethe creatives start work andstick to them., 27 2009 36. Judge Properly Judge the work against themarketing and creativebriefs. Does the work solvesthe business issue? Expect the great work to gobeyond the letter of thebrief. The brief can only goso far towards the solution. It is not the solution itself,there should always be acreative leap., 27 2009 37. Use researchwisely Always bear in mind thelimitations of pre-testingresearch. The samples involved areoften small, the work isusually shown in rough formwith zero production values.Dont delegate allresponsibility to it. Dont use research as a drunkuses a lamp post - for supportrather than illumination., 27 2009 38. LEARN WHAT WORKS AND DO MORE OF THAT, 27 2009 39. Pay by results If the agencys campaign create a huge success for your brand, it will make a substantial amount of money. But if your brand suffers, the agency will share your financial pain. Your agency needs to cover its basic costs, then set KPIs which together add up to 100% of remuneration above cost., 27 2009 40. OPTIMIZING PRODUCTION EXPENDITURE, 27 2009 41. Save up money Production covers anythinginvolved in the final deliveryof creative ideas to selectedmedia. Add to this the hidden costsmanaging the process aswell as what it may behidden within the advertisingagencys creative fees. Handling agency productionin the right way can create30% efficiencies., 27 2009 42. Create efficiencies to reduce costs Consolidate all your production in one place. Managing Creative assets efficiently. Outsource to more cost effective markets. Large savings can be achieved through central buying. Ensure fewer mistakes in final production., 27 2009 43. IMPROVING SALES PERFORMANCE, 27 2009 44. Marketing thatsells. Traditionally Marketing andSales exist in an adversarialrelationship to one another. Where there is the leastamount of alignmentbetween the two functionsperformance is clearly atrisk. Gaining alignment amongtwo traditionally competingcamps is no easy task., 27 2009 45. Difficult Questions Should I cut low performers or invest in them? How can I get more of my mediocre performers up to thelearning curve faster? How can I ensure that I dont lose my top performers? How do we maintain a value sell and not discount by cuttingprice? How can I better equip my sales force with the marketing toolsthey need so they ll spend more time talking to prospects andless time prepping?, 27 2009 46. YOU SEE A CRISIS!, 27 2009 47. I was asked what I thought about recession. I thought about it anddecided not to take part.Sam Walton, founder of Wall-Mart, 27 2009 48. THANKSantonis.kocheilas@loweworldwide.com, 27 2009