Brand Building In Crisis - New Business Challenges, New Brand Measurement Needs How Brands Are Responding To Shifting Consumer Needs In Real-Time ...
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PSFK Research
Brand Building In Crisis
New Business Challenges,
New Brand Measurement
Needs
How Brands Are Responding
To Shifting Consumer Needs
In Real-TimeNew York City, NY
646 520-4672 | psfk.com
ABOUT THIS REPORT:
As previous certainties and lifestyles give way to unexpected shifts, brands and retailers are
being challenged to meet a rapidly evolving set of consumer needs and demands based on the
impact of COVID-19. Now, brands are updating their messaging and offerings to include impactful
resources and services that are aimed at building trust, creating connections and providing
meaningful support. Brands will need to continue to adapt their strategies and communications to
better meet and anticipate evolving consumer needs.
The brands that are actively offering solutions and assistance are doing so because they’ve
recognized a consumer demand for it. These brands have embraced an agile approach to their end-
to-end operations spanning all facets from supply chain and manufacturing to human resources
and marketing. One common capability across these organizations has been the effective use of
data to rapidly understand changes in consumer attitudes and behaviors. In an article for Harvard
Business Review, author Janet Balis, partner and global advisory leader at EY, points to the frequent
tracking of human behavioral trends on a regular basis as a means to gain real-time insights, better
adapt messaging, and ultimately identify opportunities more rapidly. By using insights to make
informed business decisions, brands and retailers have been able to consider the changes that
have already occurred, and not only outline what the new normal looks like for them in the coming
months, but what the return of stocked shelves will mean for their market share, and finally, how
key drivers will evolve with consumers in the coming months.
No matter how consumers ultimately respond to today’s new realities in both the short and
long-term, brands won’t be in a position to effectively respond unless they're actively listening
and understanding the true needs of their audiences. Further, ‘While consumers are looking
forward to business as usual, they will be more conservative financially. Brands will need to
ensure that they’re understanding their core audience, secondary audiences and look to drive
loyalty, ensure that you’re top of mind, and possibly win a larger share of wallet,” Michele Morelli,
SVP Marketing at Toluna.
This report is intended to act as a playbook for companies as they look to innovate their offerings
and build a resilient brand that can meaningfully connect with customers long after the crisis. As
both consumers and businesses adjust to a new normal, this document highlights key trends and
best-in-class examples of organizations that are leading with compassion.
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ABOUT TOLUNA
Toluna, an ITWP Company, provides consumer insights designed to empower success in today's on-
demand, global economy. Powered by the perfect fusion of technology, expertise, and the largest
global community of influencers at the ready, Toluna delivers rich, reliable, real-time insights to
individuals, and companies of all sizes. Our automated consumer insights platform underpins
everything we do. Clients can access the platform directly, leverage Toluna’s managed services, or
create fully-customized digital consumer insights programs via our engineered services. Toluna’s
on-demand platform designed for quick-turn, automated research.
To learn more about Toluna, visit www.toluna-group.com
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A SNAPSHOT OF CHANGING CONSUMER AND BUSINESS PRIORITIES
As both global and day-to-day disruptions challenge previously held certainties, consumers are
seeking trusted guidance and support and are increasingly looking to brands to fill that gap.
Social distancing has consumers wanting to engage more with brands, ads, and content.
Just 2% of consumers believe brands should pause all advertising, while 48% say
brands should create ads that provide information, and 37% want ads to make them
feel warm and happy.
COVID-19 Consumer Survey. Unruly, 2020
Toluna’s Global Barometer Study finds that brands aren’t as well positioned as local
retailers. In the US, 55% of consumers feel that local retailers are highly supportive, while
47% feel that brands are providing consumer support during the pandemic.
Toluna Global Barometer, Wave 3. Toluna 2020
77% of consumers agree they feel more positively about brands making an effort to
support society at the moment. Additionally, 77% believe that brands should support their
local communities, and 80% say that brands should show how they’re supporting their
employees.
Advertising During COVID-19. Twitter, 2020
Consumers now expect brands to actively relate to and demonstrate today’s shared human
experience, making empathy a defining theme of marketing and messaging.
In light of Covid-19, 66% of consumers believe brands should be communicating
messages of support to consumers, while 64% cite messaging in support of frontline
workers.
Toluna Global Barometer, Wave 4. Toluna, 2020
"I'm a firm believer that empathy has become the new brand mandate, especially in light
of this pandemic. Our research shows the need to focus on the collective.This collective
tragedy is difficult in many ways, but it is forcing progress in how we relate to each other
as humans. The most important thing we can do as marketing organizations is lead
through action, supporting our people — employees, the community and consumers."
Greg Lyons, CMO of PepsiCo Beverages North America, 2020
65% of consumers said a brand's crisis response today will influence their likelihood of
purchasing in the future.
Trust Barometer Special Report: Brand Trust And The Coronavirus Pandemic.
Edelman, 2020
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Amidst heightened anxiety, loneliness and stress, many consumers are prioritizing their
mental and physical wellbeing, and looking to brands to help meet their new goals.
While 46% of consumers are prioritizing their wellbeing about the same as before the
pandemic, 48% have taken steps to actively improve their mental or physical health, with
31% exercising more and 15% prioritizing mental health.
Toluna Global Barometer, Wave 4. Toluna, 2020
“Health and wellness retailers—from drugstores to fitness fashion retailers and the likes of
Peloton—have been able to take advantage of shoppers’ penchant—and panic—to
protect themselves and remain healthy.”
Wendy Liebmann. Founder & CEO, WSL Strategic Retail
In this article, mental health experts and therapists discuss changing consumer needs
around mental wellbeing, as meditation apps like Headspace experience a heightened
increase of consumers downloading stress-relieving meditations.
"The Coronavirus Pandemic Is A Game Changer For Mental Health Care." MIT
Technology Review, 2020
“Amid the pandemic, [wellbeing] is heightened as many people struggle with isolation,
fear of the unknown and anxiety. They’ll be looking for immune- and mood-boosters and
legal cannabis, downloading relaxation and meditation apps and doing yoga.”
Alison Angus. Head Of Lifestyle Research, Euromonitor
“There will be a monumental shift in attitudes toward mental health. [S]ociety, having
experienced this collective trauma and grief, will develop new levels of empathy and a
willingness to talk about mental healthcare as an essential part of healthcare in ways we
have not seen before. Employers are already seeing how emotional well-being is
factoring into their workforce’s ability to perform under stress. Ideally they will come out of
this better able to recognize their obligation to prioritize mental healthcare as an
employee benefit.”
Harry Ritter, Founder & CEO, Alma
As comfort and safety increasingly guide purchase decisions, consumers gravitate toward the
familiar, and the nostalgic as an additional coping mechanism.
For the 49% of Americans feeling more stressed, there is a tale of two cities. To cope 49%
are taking more vitamins, yet 25% are eating less healthy. That said, 40% say personal
health will become a bigger concern now and in the future, and 32% plan to improve self
care.
Toluna Global Barometer, Wave 3. Toluna 2020
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As Covid-19 restructures consumers day-to-day lives, 69% of consumers are eating more
home cooked meals, and 53% are craving comfort foods. Further, when asked which
brand names come to mind when feeling nostalgic, Kraft, Campbell's, Betty Crocker,
McDonalds, Chips Ahoy and Lucky Charms were among the top mentions overall.
Toluna Global Barometer, Wave 4. Toluna, 2020
Driven by nostalgia and a desire for comfort, consumers are increasingly adding frozen
and processed foods to their virtual and IRL shopping carts. In this article, hear from
consumers on the brands they’re stocking up on, and what’s driving their decisions.
"‘I Just Need the Comfort’: Processed Foods Make a Pandemic Comeback." The New
York Times, 2020
“The mindset is almost comfort-seeking and irrational. Right now, we've got consumers
who are looking for connectivity, and then ... with this universal impact on income,
everybody's looking for value.”
Marta Cyhan. CMO, Shopper Intelligence Firm Catalina
In this article, Campbell’s CMO Linda Lee discusses how the food manufacturer’s
campaign, ‘The New Pantry’, focuses on providing utility and comfort for their customers.
During COVID-19, "Campbell’s Marketing Is All About Being Useful." AdExchanger,
2020
Companies are taking steps to ensure brand relevance within consumers’ lives, both now and
in the future, by updating their messaging and marketing to provide greater impact.
For brands looking to understand what they can do now to earn consumer regard in the
future, 59% of consumers cite price incentives, while 52% would prefer brands take
positive action to support and connect communities, and 52% are looking for brands to
consider new distribution models.
Toluna Global Barometer, Wave 4. Toluna, 2020
92% of marketers have adjusted their creative messaging since mid-March, when the
World Health Organization proclaimed COVID-19 a pandemic.
Creative Messaging Development and Production Given COVID-19. ANA, 2020
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Recognizing that they were in position to help, CPG companies that are experiencing a
surge in sales are finding new ways to give back. In this article, learn how those from Vita
Coco to smaller bands like Reed’s are mobilizing across their communities.
"As Coronavirus Helps CPG Sales Spike, Companies Reinvest Revenue In Relief
Efforts." Food Dive, 2020
“There is no avoiding the fact that consumers’ eyeballs, headspace and entire life is
centered around the current crisis. Clients that have historically avoided news content
may want to consider how they can play in these areas – particularly if they can carve out
ways to be supportive or provide additive value during these rough times. If executed
correctly, this current market could provide unique opportunities to connect with the
entirety of the nation in such a personal way that it could provide long-term value for
years to come. The key to success will be ensuring a truly strategic, genuine, empathic
and aligned approach.”
Jonathan Anselmo. Chief Digital Officer, Omnicom Media Group
In this article, retail experts weigh in on best practices across marketing channels, as
brands rethink their tone and shift their offerings to better align with today’s consumer’s
needs.
"The Tricky Business Of Retail Marketing In A Pandemic." Retail Dive, 2020
Leading brands are using these new consumer priorities and behaviors to inform their
decisions around retail, marketing, products and services.
"Right now, it's about building community through not just advertising, but building it
through your services. Even after all this, people will still be highly sensitive. Consumer
patterns will change for the long term, and figuring out how and when people will emerge
from their homes will be in every marketer's mind."
Ken Harlan. CEO, MobileFuse
In this article, learn how CPG companies can prepare for new retail realities in a
post-pandemic landscape.
"How Consumer-Goods Companies Can Prepare For The Next Normal." McKinsey &
Co., 2020
In this article, Chipotle’s CMO Chris Brandt discusses how the quick service restaurant
was able to quickly pivot its marketing campaigns, and provides an outlook on how
marketing will look once lockdowns are lifted.
"Chipotle's CMO On How The Brand Quickly Pivoted In Response To Coronavirus."
Marketing Dive, 2020
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KEY TAKEAWAYS:
As the consumer experience continues to evolve, brands need to ensure messages, products
and services align with consumer needs by leveraging real-time insights. As brands consider
how best to rapidly respond to consumers’ evolving needs, having an accurate understanding of
consumers helps to inform everything from product messaging to experience. Successful brands
are taking an iterative approach, involving target audiences early and often to continually refine
offerings before and after launch.
More than ever, customers are looking to brands as guiding forces, and taking note of how
they’re reacting in a time of crisis. As companies look to deliver impactful customer experiences
and services, those who prioritize community, whether at a micro or macro level, will see the long
term benefit of brand affinity.
Understanding the human experience affecting customers today, the brands providing
impactful forms of relief or aide are cultivating meaningful relationships. Placing human needs
and wellbeing before profit, employee-centered initiatives rank equally among consumers’ top
expectations when it comes to safety and empathy.
Agile leaders are ensuring relevance in an increasingly digital-first world by complementing
IRL product experience with digital services. A form of future-proofing, leading brands are
adopting sustainable models, and successfully translating IRL experiences into digitally impactful
ones through customer experience-focused services.
For consumers, self-care has transitioned from trend to necessity. As wellbeing, safety and
comfort guide their purchasing preferences, consumers are looking for goods, communities, and
experiences that contribute to their happiness, and companies have responded with new
product, service and content offerings.
In the new normal of retail and commerce, added value is now the expectation. As daily norms
continue to be upended, brands are increasingly stepping up and providing the tools and
services to improve consumers’ new realities and day-to-day lives. With consumers’ priorities and
behaviors experiencing significant shifts, brands are refitting their offering to meet a new host of
multilayered expectations.
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TRENDS
Fact-Based Messaging
In a time of uncertainty, consumers are actively looking to their preferred brands as trusted
sources. To match this new expectation, brands are stepping up to provide consumers and
employees with vetted information and resources.
How This Manifests
“Spread Facts, Not Fear” by Mucinex
Cold and flu medicine brand Mucinex’s campaign “Spread Facts, Not Fear” targets false
information swarming around Coronavirus in the United States, including rumors of home
remedies, national lockdowns, and potential “cures.” Rather than promote its own
products, Mucinex is using its platform to encourage Americans to listen to experts and
practice safe habits.
mucinex.com
Steak-Umm
Frozen steak brand Steak-Umm became a voice of reason for its followers after posting a
viral Twitter thread consisting of advice around media literacy, disinformation, and staying
informed during the pandemic. The brand’s social media manager Nathan Allebach
decided to share the information after witnessing an alarming amount of false information
being shared across social media platforms. The thread ultimately inspired other brands
such as Coca Cola to turn their social media accounts over to experts with the goal of
sharing helpful information.
steakumm.com
"Clean Out Coronavirus (Not Shelves)" by Zambezi
Los Angeles-based advertising firm Zambezi addressed the emerging panic buying trend
with a public service campaign, “Clean Out Coronavirus (Not Shelves). The print campaign
first showed up on empty shelves within grocery and convenience stores as a way to
remind consumers to only purchase what they need, and also featured other outlets that
may carry the out-of-stock products as a back-up solution for customers.
zmbz.com
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Collaborative Social Impact
Pausing previously scheduled content and programming, brands are instead redirecting time and
budgets toward collaborative community-building projects. As consumers take note of the
companies providing measurable social impact, purpose-led brands will be top of mind
post-pandemic.
How This Manifests
“Foot The Bill” by Vans
Footwear brand Vans created a collaborative initiative to help eighty small businesses
being negatively impacted by the Coronavirus pandemic. Through its “Foot The Bill”
campaign, Vans let the chosen small businesses create and upload their own designs to
Vans’ website. When a customer purchases a shoe designed by one of the small
businesses, 100% of the proceeds go directly to that small business. The shoes will be
limited edition and only available until they are sold out, with Vans set to produce 500
pairs of the custom shoes per business partner.
vans.com
The Restaurant Project by Haus
Naturally-made alcohol brand Haus launched The Restaurant Project, a collection of 9
creative new aperitifs in collaboration with restaurants across the country. Thanks to
in-house manufacturing, Haus was able to take the project from ideation to market over
the course of two weeks. The 9 new flavors are now available for pre-sale, with 100% of
profits going directly to each of the featured restaurants.
drink.haus/pages/the-restaurant-project
Brands x Better
Men’s lifestyle and fitness brand Rhone along with 27 direct-to-consumer brands have
launched a coalition called Brands x Better dedicated to raising money for issues and
organizations related to the ongoing coronavirus pandemic. As a part of the initiative,
each participating brand is promising a donation to a charity or organization fighting the
coronavirus pandemic—often with an incentive for consumers in the form of a discount.
brandsxbetter.com
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Pepsi x Global Citizen
Multinational food, drink and snack corporation Pepsi shifted its marketing scheduling to
team up with international advocacy platform Global Citizen and produce a virtual concert
to help those affected by coronavirus. The live streamed event, featuring musical artists
like Lizzo, Elton John and Paul McCartney, is scheduled for April 18th, and will air on major
broadcast networks around the world.
globalcitizen.org
Frontline Assistance
Taking a human-first approach, brands are prioritizing employees’ financial and physical
wellbeing by creating relief funds, sourcing temporary employment opportunities, and providing
digital career training and wellness activities for employees affected by store closures, cut hours
and job losses.
How This Manifests
Starbucks
International coffee brand Starbucks launched a global relief fund for its employees
affected by coronavirus. pledging ten million dollars to the program, The Starbucks Global
Partner Emergency Relief Fund provides one-time grants to workers at both
company-operated and international licensed units. Grants can be used to help with
housing and utilities, sudden loss of housing, and other emergencies.
stories.starbucks.com
Gray Whale Gin
Spirits company Gray Whale Gin opened a virtual bar to support unemployed bartenders
as their bars are forced to close due to the coronavirus. The virtual bar asks bartenders to
rethink drinks and create their own original recipe including Gray Whale Gin into their
creation. Bartenders submit their cocktail to the spirits company through email and
chosen bartenders’ drinks are featured on Instagram and are paid $350 for their idea.
graywhalegin.com
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Vuori
While physical stores experience temporary closures, California-based activewear brand
Vuori is offering its employees expert training sessions for up to 15 hours a week. During
training sessions, associates partake in in-depth product lessons, one-on-one
conversations with Vuori’s founder/CEO Joe Kudla, and sessions covering storewide roles
and operations. Every morning, associates join Vuori’s Active Club, daily fitness classes
broadcast on Instagram Live spanning breathwork, yoga and other activities that provide
an authentic product experience. Last but not least, associates have been enrolled in
Yale’s “The Science of Wellbeing” course.
vuoriclothing.com
&pizza
Fast food chain &pizza extends employee benefits to support workers amid the
uncertainty of the coronavirus. Putting employee’s health first, the fast casual pizzeria
offers new employees full health benefits including a longer paid sick leave for all
employees. The brand also is increasing staff wages and providing $5 rideshare drives to
work via Lyft.
andpizza.com/home-heropies
Uber
Rideshare company Uber debuted job board Work Hub to help drivers find employment
opportunities beyond the ride-hailing brand in order to stay employed during the
coronavirus. Work hub which is accessible via the Uber app connects Uber drivers to job
openings at partnered companies like Domino’s, FedEx and Walgreens. The work app
offers drivers financial support due to the impact of COVID-19 measures on their income.
uber.com
Virtual Occasion-Making
As important rights of passage and celebrations are put on hold due to social distancing
regulations, brands are stepping in to create the virtual equivalent. Tapping into platforms like
Facebook Live and Zoom, consumers are being invited to participate in virtual birthday parties,
proms and commencement ceremonies.
How This Manifests
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Natural Light
Beer company Natural Light creates a virtual graduation to celebrate college seniors
missing out on their ceremonies. The digital ceremony will take place on Facebook Live
and will showcase the names of graduating seniors that sign up on its commencement
website. Speaking at the virtual commencement ceremony includes actresses Amanda
Cerny, Jane Lynch and sports broadcaster Stephen A. Smith.
naturallight.com
Teen Vogue
Teen Vogue magazine organized a virtual prom to celebrate graduating high school
seniors missing out on graduation, prom and senior skip day. The virtual prom will be
hosted on video conferencing app Zoom and features DJs, celebrities and the editor in
chief of Teen Vogue Lindsay Wagner. A prom content resource of makeup and styling
tutorials and dance tips are accessible to seniors on the online magazine, Instagram and
TikTok to test out before the dance.
teenvogue.com
CAMP
Experience store CAMP invites kids to throw free virtual birthday parties to celebrate
remotely with friends and family. Children select a party theme between magic shows,
stories and singalong experiences. Shareable links are also sent out to guests in order to
join the digital party at 5pm.
camp.com
Wellness Initiatives
As consumers cope with the realities of social distancing and heightened levels of anxiety and
stress, brands are looking to provide support. Launching new services around mental health and
wellbeing, brands are creating greater points of connection via text and social media platforms.
How This Manifests
Harry's Shave Co. x Crisis Text Line
Direct-to-consumer personal grooming brand Harry’s Shave Co. partnered with Crisis Text
Line for a text based service connecting consumers with instant access to trained crisis
counselors.Rolled out though emails and its social channels, Harry’s Shave Co.
encouraged its consumers to text FEEL at any time to the crisis line, where they can
receive needed support for free.
harrys.com
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Hims & Hers
Consumer health brands Hims and Hers launched group therapy sessions and guided
meditation for consumers experiencing social distancing stressors. While the company
initially began exploring opportunities to expand into the mental health category around
eight months ago, it ultimately accelerated its pace to respond to increased consumer
demand caused by the COVID-19 pandemic, while also deciding to change the price per
session from $15 to complimentary.
forhims.com
Snapchat
Social media platform Snapchat initiated an innovative wellness tool dubbed Here For
You to inform Millennials and Gen Z on important health topics including coronavirus and
mental health. The tool allows consumers to search and share expert content and
resources from the Centers for Disease Control and World Health Organization. Credible
advice is also generated via a Snapchat filter on how to stay safe during the pandemic.
snap.com
Summersalt
Swimwear startup Summersalt launched a free text-based hotline called Joycast to better
support its customers and provide a daily dose of positivity and connection. Consumers
can text JOYCAST to 24321 to receive a positive message from one of Summersalt’s
customer happiness associates within minutes. Customers who choose to text the
emotional support hotline will receive positive content, from viral positive moments, to
self-care tips and short meditation videos.
summersalt.com
Zappos
To better serve its customers, ecommerce footwear, apparel and accessories company
Zappos launched its Customer Service Anything Hotline, where live customer agents are
on hand to answer. Available 24/7, customers are able to call into Zappos customer
service center, select “help with anything”, and discuss any topic of their choice, free of
charge. Additionally, the hotline service will act as a digital concierge service, assisting
customers in checking inventory at grocery stores, placing takeout and delivery orders at
local restaurants and even recommending apps to help customers suffering from isolation
due to social distancing.
anything.zappos.com
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Family Support
As families adjust to the new realities of a school, play and work-from-home environment, brands
are designing physical and digital resources for parents to entertain and engage their children
around at-home experiments and interactive games.
How This Manifests
Chore Club by Whirlpool
Home appliance brand Whirlpool is launching the Chore Club, a social media-focused
initiative that seeks to make chores fun for children stuck at home and help caregivers
now tasked with helping their kids learn from home. The Club is designed to provide
instructional posts published on Instagram, Pinterest and Whirlpool.com on strategies to
make everyday activities educational. Recent posts have included “1-2-3 Cookies” to
reinforce math and counting skills; “Cookie Cutter Sandwiches” to spotlight creativity and
independence; and “Easy Folding for Kids” to teach children about “spatial cues and
self-reliance.”
whirlpool.com/everydaycare/choreclub
Dyson
Technology company Dyson developed a series of science and engineering projects
called Challenge Cards for students to work on during the coronavirus lockdown. The
challenges allow children to learn at home using common household items like dried
spaghetti and eggs to create bridges and conduct science experiments with. Many of the
activities are shown on YouTube to demonstrate the end result of the experiment.
dyson.com
IKEA
Furniture store IKEA Israel teamed up with agency McCann Tel Aviv to transform its
catalogues into interactive workbooks to captivate children during the COVID-19
pandemic. The catalog doubles as a promotional device and play activity complete with
coloring sheets and maze games. Also, the workbook features IKEA’s furniture pieces like
bookshelves and lamps within the catalog to continue to showcase the retailer’s products
in an immersive experience.
ikea.com
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Bring Home The Fun by Hasbro
Toy company Hasbro created a program to support families spending time indoors while
home during coronavirus-related school closures. The Bring Home the Fun website
features games and activities for kids, as well as suggestions for projects that include
Hasbro toys like Play-Doh crafts and trick shot challenges for Nerf blasters. There are
mindfulness videos and parenting articles about how to teach kids gratitude and purpose,
including a video featuring Hasbro employees, many of whom are parents juggling
working remotely and homeschooling their kids.
hasbro.com/bring-home-the-fun
Mattel Playroom by Mattel
Toy manufacturing and entertainment company Mattel invites families to #KeepPlaying
with the launch of the “Mattel Playroom,” a new digital resource for parents and
caregivers. Featuring activities and content from the company’s iconic portfolio of brands
including American Girl, Barbie, Fisher-Price, the online hub also offers Additional
inspiring content, including designer tutorials, new ways to play with Mattel products and
more, will be integrated into the playroom in the coming weeks.
mattel.com/playroom
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Published: May 29th, 2020
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