Corporate strategy on (Online) Branding in crisis 2009

1. TO DOWNLOAD THE
PRESENTATION - GO TO
THEBRANDBUBBLE.COM/BLOG
FOLLOW JOHN ON TWITTER:
@JOHNGERZEMA

2. CALAMITY:
MARKETING YOUR WAY
OUT OF THIS RECESSION
Source: Conde Naste Portfolio, January 2009 Copyright John Gerzema/Young & Rubicam
2

3. RESULTS 1–10 OF ABOUT
22,200,000 FOR RECESSION
AND MARKETING
Copyright John Gerzema/Young & Rubicam
3

4. FUNDAMENTAL SOCIETAL
SHIFT
FROM A CREDIT TO A CONFIDENCE CRISIS
SEA CHANGES IN CONSUMER BEHAVIORS
COMPANIES MUST CHANGE
HOW THEY CONNECT WITH CONSUMERS
Copyright John Gerzema/Young & Rubicam
4

5. MANAGING FOR AN UPTURN
SUSTAINABLE GROWTH
ALIGN BRAND AND BUSINESS
STRATEGY
ACQUIRE TALENT AND QUALITY
DO MORE WITH LESS
SHARPEN MESSAGING AND ROI
RETURN TO YOUR CORE
FACE YOUR CUSTOMER
5 Source: Y&R Strategy, HBR: Anthony T Jan, John Quelch Copyright John Gerzema/Young & Rubicam

6. HALF OF ALL GLOBAL WEALTH
HAS EVAPORATED
$36 TRILLION DOLLAR LOSS WORLDWIDE
S&P 500 DECLINED 64.4% FROM 2000
45% OF AMERICAN WEALTH FROM LOSS
OF EQUITY AND HOUSING VALUES
AVERAGE RECESSION IS 6-12 MONTHS.
THIS IS A MARATHON
6 Source: Bloomberg, Iconoculture March 2009 Copyright John Gerzema/Young & Rubicam

7. THE NEW FEAR ECONOMY
NATIONAL DEBT
UNEMPLOYMENT
DETROIT
HOUSING VALUES
CURRENCY VALUATION ?
EQUITY MARKETS
PROTECTIONISM ?
INTEREST RATES ?
BANK LENDING
COMMODITY PRICES
FACTORY & HOUSING STARTS
IN(STAG)FLATION ?
CREDIT CARD EXPOSURE
BAILOUT ?
CONSUMER CONFIDENCE
7 Copyright John Gerzema/Young & Rubicam

8. CONSUMER CONFIDENCE:
LOWEST SINCE 1967 (INCEPTION)
EXCLUDING 2003 / IRAQ WAR PERIOD
Source: ABC News
8

9. THE LARGEST U.S. BUDGET DEFICIT
POST WWII
9 Source: Board of Governors of the Federal Reserve System Copyright John Gerzema/Young & Rubicam

10. VISUALIZING THE BAILOUT
10 Source: The Atlantic Copyright John Gerzema/Young & Rubicam

11. FRACTURED FAITH IN
THE AMERICAN DREAM
11
11

12. HOUSING VALUES CONTINUE TO
DECLINE ACROSS THE U.S.
Source: “Irrational Exuberance”, 2nd edition, 2006, by Robert J. Schiller Copyright John Gerzema/Young & Rubicam
12

13. AMERICAN’S HOMES NO LONGER
PERSONAL LINES OF CREDIT
13 Copyright John Gerzema/Young & Rubicam
Source:Us Department of Housing and Labor, 2009

14. WHILE THE CREDIT CRISIS HAS
HALTED HOUSING STARTS
14 Source: www.calculatedriskblog.com Copyright John Gerzema/Young & Rubicam

15. INTO THE GREAT WIDE OPEN
UNEMPLOYMENT 8.1%; HIGHEST IN
TWENTY-FIVE YEARS
THIRD STRAIGHT MONTH OF 600,000
JOBS LOST
15 Copyright John Gerzema/Young & Rubicam

16. THIS PERIOD MARKED BY MOST JOB
LOSSES, WEAKEST RECOVERY
Copyright John Gerzema/Young & Rubicam
16 Source: Change in Nonfarm Pay rolls, Reported Monthly, Bureau of Labor Statistics, U.S Dept of Labor

17. AN EQUAL OPPORTUNITY
RECESSION
MILLIONAIRES HAVE LOST ONE-
THIRD OF THEIR NET WORTH.
17 Copyright John Gerzema/Young & Rubicam

18. AFFLUENT MORTGAGE
RATE DEFAULTS
18 Source: LPS Applied Analytics Copyright John Gerzema/Young & Rubicam

19. ONE STORY IN
THE AMERICAN NIGHTMARE
20 Source:New York Times Copyright John Gerzema/Young & Rubicam

20. A GROWING REALITY:
A MORTGAGE IS FOREVER
19
11 Copyright John Gerzema/Young & Rubicam
21

21. MASLOW UPENDED:
MARKETING MUST MOVE FROM PASSION TO COMPASSION
20
07
20
09
19 Source: American Progress.org February 2009 Copyright John Gerzema/Young & Rubicam

22. YES WE CAN?
22 Source: Pew Research Center

23. THE ONLY CERTAINTY IS
UNCERTAINTY
24 Copyright John Gerzema/Young & Rubicam

24. “WE HAVE A STRONG
CAPITAL POSITION”
24
23

25. TECTONIC SHIFTS IN CONSUMERISM:
LACK OF
DECAYING LACK OF
PERMANENCE
INFRASTRUCTURE LEADERSHIP AND
RESPONSIBILITY
SELFISHNESS
TAXPAYERS
TRUST AND
ARE NOW
COLLUSION
SHAREHOLDERS
FAILURE OF
PROLONGED
REGULATORS
CONFLICTS AND
EGREGIOUS PARTISANSHIP
AND CRIMINAL
BEHAVIOR
25

26. LACK OF LEADERSHIP
AND RESPONSIBILITY
26
26

27. SELFISHNESS AND
COLLUSION
27 Copyright John Gerzema/Young & Rubicam

28. PROLONGED CONFLICTS
AND PARTISANSHIP
28

29. EGREGIOUS AND CRIMINAL
BEHAVIOR
29 Copyright John Gerzema/Young & Rubicam

30. FAILURE OF REGULATORS
30 Copyright John Gerzema/Young & Rubicam

31. TAXPAYERS ARE NOW
SHAREHOLDERS
31
25 Copyright John Gerzema/Young & Rubicam

32. DECAYING INFRASTRUCTURE
32 Copyright John Gerzema/Young & Rubicam

33. LACK OF PERMANENCE
33 Copyright John Gerzema/Young & Rubicam

34. THE NEW CULTURAL
FAULT LINE
34
34

35. 35
28 Copyright John Gerzema/Young & Rubicam

36. WE EXAMINED 15 YEARS
OF DATA FROM BRANDASSET
VALUATOR®
QUARTERLY U.S.
WORLD’S LARGEST 40,000 BRANDS
PANEL OF 15,000+
DATABASE OF
215 STUDIES RESPONDENTS
BRANDS
ACROSS 44 72 DIFFERENT
OVER 500,00
COUNTRIES BRAND METRICS
CONSUMERS
36

37. BRANDS NOW ACCOUNT
FOR 30% OF THE VALUE OF
THE S&P 500
Source: Millward Brown Optimor 2007
37
30 Copyright John Gerzema/Young & Rubicam

38. THE 250 MOST VALUABLE
GLOBAL BRANDS ARE
$2.197 TRILLION DOLLARS
WHICH EXCEEDS THE GDP
OF FRANCE
38
31 Copyright John Gerzema/Young & Rubicam

39. BRAND ESTEEM AND
REGARD IS DOWN 12%
BRAND AWARENESS HAS
DECLINED BY 20%
PERCEPTIONS OF BRAND
QUALITY HAS ERODED 24%
TRUST IN BRANDS HAS
DECLINED BY 50%
39
32 Copyright John Gerzema/Young & Rubicam
39

40. TRUST IS DESIRABLE, BUT IT HASN’T
DIFFERENTIATED
40 Source:BrandAsset Valuator 1993-2007 Copyright John Gerzema/Young & Rubicam

41. IN THE PAST QUARTER, A ‘TRUST VIRUS’
INFECTED MANY CATEGORIES
41 Base: BAV USA Q4 2007, Q4 2008; All Adults
Copyright John Gerzema/Young & Rubicam

42. “I SCREWED UP”
42 Source: Barack Obama Press Conference, February 2009 Copyright John Gerzema/Young & Rubicam

43. CONSUMERS ARE BEGINNING
TO OWN THEIR PROBLEMS
43 Source: Time Magazine Copyright John Gerzema/Young & Rubicam

44. THEY REALIZE THERE’S A LONG,
HARD SLOG AHEAD
44 Source: Reinhart and Rogoff, The Aftermath of Financial Crises, 2009

45. SAVINGS RATE HAS RISEN IN PAST FIVE
CONSECUTIVE MONTHS
45 Source: U.S. Department of Commerce: Bureau of Economic Analysis Copyright John Gerzema/Young & Rubicam

46. Q4 SPENDING FELL 3.7% FROM Q3 -
STEEPEST DECLINE IN 62 YEARS.
$3 TRILLION IN SPENDING STOPPED IN Q4, WAS SUSTAINING US GDP
46 Source: www.calculatedriskblog.com Copyright John Gerzema/Young & Rubicam

47. MOST POPULAR TAG’S ABOUT CONSUMER
BEHAVIOR
47 Source: Del.icio.us

48. EATE COMPETITIVE
VANTAGE NOW
EVERY RECESSION ENDS...EVENTUALLY
CONSUMERS MOVING FROM ANXIETY TO ACTION
HOW YOU ACT NOW WILL SHAPE YOUR FUTURE
PERFORMANCE
48
39 Copyright John Gerzema/Young & Rubicam

49. THE NEW RULES OF
‘POST-CRISIS CONSUMERISM’
NEW CULTURAL VALUES
NEW CONSUMER BEHAVIORS
NEW MANAGEMENT PRINCIPLES
49 Copyright John Gerzema/Young & Rubicam

50. POST-CRISIS CONSUMERISM
RULE #1
CULTURAL VALUE = INDESTRUCTIBLE
SPIRIT
CONSUMER STRATEGY = DURABLE LIVING
MANAGEMENT = BRAND THAT
PRINCIPLE LASTS
50 Copyright John Gerzema/Young & Rubicam

51. CULTURAL VALUE = INDESTRUCTIBLE SPIRIT
CONSUMER BEHAVIOR = DURABLE LIVING
MANAGEMENT PRINCIPLE = BRAND THAT LASTS
DURABLE LIVING
51 Copyright John Gerzema/Young & Rubicam

52. CULTURAL VALUE = INDESTRUCTIBLE SPIRIT
CONSUMER BEHAVIOR = DURABLE LIVING
MANAGEMENT PRINCIPLE = BRAND THAT LASTS
BRAND THAT LASTS
52
Copyright John Gerzema/Young & Rubicam

53. POST-CRISIS CONSUMERISM
RULE #2
CULTURAL VALUE = ETHICS AND
FAIR PLAY
CONSUMER STRATEGY = EMPATHY AND
RESPECT
MANAGEMENT = VALUE AND
PRINCIPLE VALUES
53
Copyright John Gerzema/Young & Rubicam

54. CULTURAL VALUE = ETHICS AND FAIR PLAY
CONSUMER BEHAVIOR = R-E-S-P-E-C-T
MANAGEMENT PRINCIPLE = VALUE AND VALUES
EMPATHY AND RESPECT
54 Copyright John Gerzema/Young & Rubicam

55. CULTURAL VALUE = ETHICS AND FAIR PLAY
CONSUMER BEHAVIOR = R-E-S-P-E-C-T
MANAGEMENT PRINCIPLE = VALUE AND VALUES
VALUE AND VALUES
55 Copyright John Gerzema/Young & Rubicam

56. POST-CRISIS CONSUMERISM
RULE #3
CULTURAL VALUE = LIQUID LIFE
CONSUMER STRATEGY = DÉCLASSÉ
CONSUMPTION
MANAGEMENT = DOLLARS AND
PRINCIPLE SENSE
56 Copyright John Gerzema/Young & Rubicam

57. CULTURAL VALUE=LIQUID LIFE
CONSUMER BEHAVIOR = DÉCLASSÉ CONSUMPTION
MANAGEMENT PRINCIPLE= DOLLARS AND SENSE
DÉCLASSÉ
CONSUMPTION
57
Copyright John Gerzema/Young & Rubicam

58. CULTURAL VALUE=LIQUID LIFE
CONSUMER BEHAVIOR = DÉCLASSÉ CONSUMPTION
MANAGEMENT PRINCIPLE= DOLLARS AND SENSE
DOLLARS AND SENSE
58
Copyright John Gerzema/Young & Rubicam

59. POST-CRISIS CONSUMERISM
RULE #4
CULTURAL VALUE = RETURN TO THE
FOLD
CONSUMER STRATEGY = COOPERATIVE
CONSUMERISM
MANAGEMENT = COMMUNITY
PRINCIPLE ORGANIZER
59 Copyright John Gerzema/Young & Rubicam

60. CULTURAL VALUE = RETURN TO THE FOLD
CONSUMER BEHAVIOR = COOPERATIVE CONSUMERISM
MANAGEMENT PRINCIPLE= COMMUNITY ORGANIZER
COOPERATIVE
CONSUMERISM
60
Copyright John Gerzema/Young & Rubicam

61. CULTURAL VALUE = RETURN TO THE FOLD
CONSUMER BEHAVIOR = COOPERATIVE CONSUMERISM
MANAGEMENT PRINCIPLE= COMMUNITY ORGANIZER
COMMUNITY ORGANIZER
61
Copyright John Gerzema/Young & Rubicam

62. THE CHINESE CHARACTER FOR
CRISIS ALSO MEANS
OPPORTUNITY
BAD COMPANIES ARE DESTROYED
BY CRISIS. GOOD COMPANIES
SURVIVE THEM. GREAT COMPANIES
ARE IMPROVED BY THEM.”
—ANDY GROVE
64 Copyright John Gerzema/Young & Rubicam

63. HE SEARCH ENGINE ISN’T YOU…
T’S YOUR CONSUMER
63
62 Copyright John Gerzema/Young & Rubicam

64. ROM SEARCH OPTIMIZATION
O BRAND OPTIMIZATION
64
63 Copyright John Gerzema/Young & Rubicam

65. RECESSION-PROOF
YOUR BRAND
JOIN THE CONVERSATION AT
THEBRANDBUBBLE.COM
ON FACEBOOK
OR TWITTER
@JOHNGERZEMA
65