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With Nigeria being a highly import dependent country especially on consumable items, the hike in dollar rate has prompted a lot of clamour for “buy Naija” with many households adjusting their taste buds to fit with current reality, in order to manage household expenses. Even at that, a lot of people are feeling the hit as the dispensable income is buying less than what it previously could buy.
The current scenario offers local brands an opportunity
to recruit new users and grow their franchise. However, beyond consumers just
deciding between imported and local brands, there are many competing brands
locally to choose from; as such it is important that brands devise strategies
to win in the competitive landscape.
Some
valuable Marketing Survival Tactics during Recession:
1.
Maintain brand visibility:
The most likely reaction of
most organizations is to cut the marketing budget. This will not be a wise
decision given that every brand will be currying the favour of consumers and it
is important not to be lost in the crowd. There are many innovative ways of
maintaining brand presence without going above the top – the mix of the
marketing plan can be altered or skewed towards certain demographics, channels
or locations. For example, buying a 15sec radio spot rather than a 30sec slot
would reduce spend and still sustain brand visibility.
2.
Understanding the changing consumer behavior:
In a time of recession,
consumer behaviors and habits change. This is not the time to rely on old consumer
data, the behavior of consumers will be altered in many ways that could affect
their buying decisions, consumption habits and even their media choices. It is
quite important for organisations and brands to understand how these patterns
evolves and tailor their campaigns along those lines.
3.
Communicate value for money:
Consumer expectation will
increase and they will demand product performance from brands in exchange for
their money. They will be more discerning and price conscious and would likely
trade down on volume and quantity purchased. This is the time to let consumers
know the value they are deriving from your brand as the competitive landscape
will be quite intense. Value communication will be relevant at points of sale
and at critical decision points.
4.
Be careful of price cuts & promotions:
Price war may be the order of
the day during a recession, while it is okay for brands to execute occasional
price discount to identify with consumers, there is an extent to which pricing
can be used as leverage before it starts impacting the bottom line (especially
with respect to low margin brands) and ultimately the brand value.
Critical times call for critical
actions! As much as buyers are looking at options to stretch their available
funds, they still need to be assured that they are getting the right brand
experience; while marketers need to ensure that they are deploying their funds
in areas that will generate the most returns.
Adapted from
Bolajako Bayo-Ajayi’s Article. Originally Published in Business Day Nigeria
Newspaper Tuesday 06 September 2016
