Branding in times of COVID-19 – The Do’s & Don’ts
Numerous experts have opined on what marketers should do during the COVID-19 crisis. Everyday there is a webinar that promises to tell you more. So, what is it that I can add to the ongoing debate, asks Ambi Parameswaran, as he offers some strategies that brands need to adopt now to stay relevant in the difficult months ahead.
I have a few assumptions to make first. I am hopeful that by mid-April many of the severe lockdown measures will be rolled back. Some cities may still face a lockdown, but some cities and some states may be able to limp back to normalcy. Supply chains that are broken will have to be restored. Labour has to come back to the factories. Shops, not just grocery, but also other kinds of essentials like electrical supplies and stationery, have to open and most importantly, consumers have to come back to shop. For all this to happen, it may take another four weeks or more.
So, what should brands do? Now and later?
Firstly, if your brand is in some way relevant to the current problems being faced by consumers, you should continue to communicate – on television, radio and on digital platforms. If your brand is in the health and nutrition space, definitely keep communicating. For example, Yakult has been running copy heavy ads on how their probiotic drink can improve immunity. Very relevant message. And very timely. Brands that can make a connection to health and wellness should keep advertising.
Secondly, if your brand is not directly relevant, but can ride on the current sentiment over safety concerns, you should communicate. Insurance. Banking. Saving. Possible sectors that can keep communicating.
Thirdly, if you don’t fall into the above two groups, you should wait and watch the situation for another eight weeks. And conserve resources for a big burst during the festival season. Unless you have a great long running campaign that connects with the current concerns, for example, what Asian Paints has done on social media, save your media money.
This year is going to be tough for most companies. If they lose two months’ production [and sales] they lose at least 15 per cent of their top line and maybe 40 per cent of their bottom-line. So, the instinctive reaction is to cut advertising, cut training, cut innovation, cut research.
Abhor those thoughts, but use the slowdown, the lockdown to figure out how you can become more efficient.
Research done by HBS Professors, who have studied three slowdowns in the US over the last 40 years, shows that companies that cut marketing spends, cut research and development, cut innovation, during a slowdown, significantly underperformed those who did not. So, you need to save all the money you can. But save money from the right buckets. If you try cutting marketing and innovation budgets now, your 2020-21 may look better, but your 2021-22 onwards may be gloomy. Especially, if your smart competitors don’t do the foolish things you are contemplating doing.
So, tighten the belt. Improve operational efficiency. Cut the flab. Not the muscle.
(The author is a Brand Coach, Author and founder of Brand-Building.com a Brand advisory.)
Also Read: