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Target audience: young proffessionals from marcomm, juniors / middle both from agencies and clients Key topics: 1 . What is Strategic Planning through the eyes/mind of a client (role, vision, aplicable definition in one phrase – personal touch) 2 . Effectiveness during crisis time / the “what if” paradigm from “optimistic” marketing model to the new one IAA Young Professional Forum  March 12 th , Bucharest
It's the  focused  examination of your  interactions  and  tactics  and  products  and  pricing  that, when combined, determine  what  and  how  people  think  about you.  1.
2.
 
 
 
 
 
 
 
 
 
Digital
 
 
Some questions for the audience… ,[object Object],[object Object],[object Object],[object Object]
 
How is he/she feeling ? The financial crisis has given a new dimension to the consumption crisis Lost of trust and confidence in the ‘big institutions’ and some- how the blame that their greed is impacting deeply the  way he/she will have to live and behave in the next 12-18  months.  From denial to survival  A quick shift from a state of ‘this will be shortly lived and we will  be back to economic prosperity soon’ – to already measures in  place ‘to help me get through this’  From feel good to feel sure/secure  A strong sense of reassurance and guarantee in the way they  spend every penny
The PIMS Research Project Objectives and methodology of research Previous research (2001, ~ 1000 business units) looked at recessions and the subsequent recoveries.  PIMS  (Profit Impact of Marketing Strategies)  looked for markets undergoing the following 5-year pattern, and looked at three measures for performance: Recession Recovery ,[object Object],[object Object],[object Object]
Results of research conducted pre 2000 PIMS compared businesses that cut costs, maintained costs, and increased costs (as a % of market size) in the following cost areas, with the following results: Key question: how have the results for marketing, R&D, and new products stood the test of time? There are ~100 new recession + recovery observations up to 2003-7
During the recession, cutting or increasing marketing budget is likely to have a very similar effect on Capital Returns, but during market recovery the differences are staggering. ROCE During ROCE After Market Share After
These findings, which may seem counterintuitive, can be explained by four basic factors. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
R 2 = 0.74 0% 50% 100% -30% 0% 30% %  losing share (354 brands grouped on the basis of relative ad spend) Media Pressure (Share of Voice - Share of Market) Investment in brand reduces risk of brand declines, even in tough economic times
Whereas investing disproportionately to market share can have significant gains both long and short term R 2 = 0.77 0% 100% -10 0 10 Media Pressure (Share of Voice - Share of Market) %  gaining share (354 brands grouped on the basis of relative ad spend)
What do we need to consider when we think about our brand strategy in these tough times… ,[object Object],[object Object],[object Object],[object Object],[object Object]
The nature of the category ,[object Object],[object Object],[object Object],[object Object],[object Object]
The size of the category ,[object Object],[object Object],[object Object],[object Object]
The inclinations and motivations of our customers ,[object Object],[object Object],[object Object],[object Object]
Difference categories would react differently based on the importance of the brand and price as purchase drivers Categories more vulnerable to Pure PRICE Purchasing LESS Price Driven Brand Very Important Brand Not That Important MORE Price Driven Categories less vulnerable to Pure PRICE Purchasing
Different categories would dictate different strategies… Mineral Water Motor Fuel Apparel IT Hardware IT Software Grocery Stores Airlines Plus how long is the inter-purchase interval? LESS Price Driven Brand Very Important Brand Not That Important MORE Price Driven Face Care Mobile Handsets Credit Cards Cars Luxury   Cars Banks Insurance Fragrances Nappies Fast Food Beers Coffee Hair Care Detergents Deodorants Oral Care Body Care Soft Drinks Spirits Telecoms eCommerce
The strength of our brand ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The likely competitor response ,[object Object],[object Object],[object Object]
Some other thoughts… ,[object Object],[object Object],[object Object]
And Finally… ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],And (really) Finally…

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Calin Clej_Efficiency In Crisis Times - Prezentare Workshop IAA YP

  • 1. Target audience: young proffessionals from marcomm, juniors / middle both from agencies and clients Key topics: 1 . What is Strategic Planning through the eyes/mind of a client (role, vision, aplicable definition in one phrase – personal touch) 2 . Effectiveness during crisis time / the “what if” paradigm from “optimistic” marketing model to the new one IAA Young Professional Forum March 12 th , Bucharest
  • 2. It's the focused examination of your interactions and tactics and products and pricing that, when combined, determine what and how people think about you. 1.
  • 3. 2.
  • 4.  
  • 5.  
  • 6.  
  • 7.  
  • 8.  
  • 9.  
  • 10.  
  • 11.  
  • 12.  
  • 14.  
  • 15.  
  • 16.
  • 17.  
  • 18. How is he/she feeling ? The financial crisis has given a new dimension to the consumption crisis Lost of trust and confidence in the ‘big institutions’ and some- how the blame that their greed is impacting deeply the way he/she will have to live and behave in the next 12-18 months. From denial to survival A quick shift from a state of ‘this will be shortly lived and we will be back to economic prosperity soon’ – to already measures in place ‘to help me get through this’ From feel good to feel sure/secure A strong sense of reassurance and guarantee in the way they spend every penny
  • 19.
  • 20. Results of research conducted pre 2000 PIMS compared businesses that cut costs, maintained costs, and increased costs (as a % of market size) in the following cost areas, with the following results: Key question: how have the results for marketing, R&D, and new products stood the test of time? There are ~100 new recession + recovery observations up to 2003-7
  • 21. During the recession, cutting or increasing marketing budget is likely to have a very similar effect on Capital Returns, but during market recovery the differences are staggering. ROCE During ROCE After Market Share After
  • 22.
  • 23. R 2 = 0.74 0% 50% 100% -30% 0% 30% % losing share (354 brands grouped on the basis of relative ad spend) Media Pressure (Share of Voice - Share of Market) Investment in brand reduces risk of brand declines, even in tough economic times
  • 24. Whereas investing disproportionately to market share can have significant gains both long and short term R 2 = 0.77 0% 100% -10 0 10 Media Pressure (Share of Voice - Share of Market) % gaining share (354 brands grouped on the basis of relative ad spend)
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. Difference categories would react differently based on the importance of the brand and price as purchase drivers Categories more vulnerable to Pure PRICE Purchasing LESS Price Driven Brand Very Important Brand Not That Important MORE Price Driven Categories less vulnerable to Pure PRICE Purchasing
  • 30. Different categories would dictate different strategies… Mineral Water Motor Fuel Apparel IT Hardware IT Software Grocery Stores Airlines Plus how long is the inter-purchase interval? LESS Price Driven Brand Very Important Brand Not That Important MORE Price Driven Face Care Mobile Handsets Credit Cards Cars Luxury Cars Banks Insurance Fragrances Nappies Fast Food Beers Coffee Hair Care Detergents Deodorants Oral Care Body Care Soft Drinks Spirits Telecoms eCommerce
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.