It pays to advertise: the recession as a window of opportunity:

Maintaining or increasing advertising during a recession leads to higher sales both during and after the recession compared to competitors who cut advertising. Maintaining or increasing advertising during a recession results in increased market share and voice share, both during the recession (as competitors advertise less) and after the recession ends due to greater brand strength and consistency. of the exhibition. Recessions tend to be short (10-month average), mild, and always cyclical. Importance of seeing advertising as an investment, not as an expense.

Examples:

Roland S. Vaile tracked 200 companies during the 1923 recession, and in 1927 he published his findings in the Harvard Business Review, reporting that the companies that advertised the most did the best both during and after the recession: they saw an increase in sales. sales compared to companies that reduced their advertising. (Harvard Business Review, April 1927)

During the 1930s, Kellogg continued to advertise and Post did not. This contributed to Kellogg’s dominance (over Post) throughout the 5 decades following the recession. (Electronic Media Report, 4/16/2001)

During a recession in the mid-1970s, Chevrolet dropped its previous flat-percentage advertising budget and increased its advertising (showcasing its fuel-efficient models). During the same period, to combat the recession, Ford cut its advertising budget by 14%. This resulted in Chevy increasing its market share by 2%. (Electronic Media Report, 4/16/2001)

During the 1980-81 recession, companies that maintained or increased their advertising saw their sales increase by 275% in 1985. Comparatively, companies that reduced their advertising during the recession only increased their sales by 19% in the same period 5 years. (Associated Press Report, 3/18/1992)

A MarketSense study of the 1989-1991 recession shows that Jif Peanut Butter and Kraft Salad Dressing increased their advertising and posted sales growth of 57% and 70%, respectively. (The Ed Clark Company, 11/15/2001)

Importance of innovation and brand message change during a recession:

Value and quality are more appreciated: people want to get more for their money.
Customer service and personal relationships become more valuable.
Brands that resonate with today’s consumer mindset are honored.

Examples:

has. In the 1973-75 recession, Quaker Oats changed its message and introduced grain products as a cheap form of essential protein. This resulted in a reversal of the long decline in sales of oats, grits and cornmeal.

b. Ziploc changed its message during a recession to emphasize its airtight seal, which preserves leftovers efficiently, at a time when food prices are high.

vs. Frequent Flyer Programs: During a recession in the late 1970s, airlines began creating new ways to reward their loyal customers, giving them more value or more for their money. As a result, American Airlines launched AAdvantage in 1981 as the first frequent flyer program in the United States. (http://www.frequentflier.com/about.htm” http://www.frequentflier.com/about.htm)

During economic downturns, Mercedes “moved away from the deal-of-the-month mentality to emphasize value above all else. When the market slows down, we find that position will take us much further than the more traditional subsidy position of our competitors,” explains Ken Enders, vice president of marketing for Mercedes. (Advertising Age, 2/19/2001)

Small ways to maximize impact and strengthen your brand in a recession:

Word of mouth marketing: profitable and extremely effective
Sponsorship: efficient way to reach the target audience/limit superfluous efforts and costs
Excellence in service
View staff and team members as your number one unlimited resource
Get out of comfort zones: innovate and adapt.

Article by Lisa Mirabile CEO/President Vertigo