COVID19 - LATINOAMÉRICA - Havas Content ...
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We are currently facing unprecedented times, in which the daily lives of individuals, companies and communities are being totally disrupted. This has made us reflect on the way in which people react to these types of events. Regardless of the nature of a crisis - political, social, climatic and natural phenomena or health issues - human beings instinctively shift our behaviors and prioritize our personal and our family’s safety, heightening the search for information that allows us to feel more in control and BEING confident of what we are experiencing. MEANINGFUL Understanding the role that a brand can play in people's lives can be very useful in these times, especially if we can pinpoint how a brand can add value; be it from a functional standpoint through its IN TIMES OF product or service, or by leveraging what’s personally important to people (facilitating life, make people feel calm with their decisions …), or through a brand’s role within the collective well CRISIS being of a community. At HAVAS, brands that define their strategy through the value they create are called “meaningful brands”. This is our point of view on how brands in Latin America have the power to shift their strategies in times of crisis and gain relevance within our society when we need them most. HAVAS LATAM
THE STARTING POINT REAL FORCE OF CHANGE We cannot cover the sun with one finger: The figures around COV-19 are a source of worry, and for now, they will continue to grow. Strong measures are being taken: social distancing and self-quarantine are the most visible ones, and are creating drastic behavioral changes in people. New Fuente: Ourworldindata.org habits around intensive hygienic routines, online shopping, virtual learning and home office are just some of them. These behaviors are also shifting the way we interact with content and media, with stronger consumption of audiovisual content, gaming and digital platforms. The relationship between people and brands will evolve to demand for a more meaningful exchange, creating an opening for brands to cover new consumption needs and generate more authentic brand purposes.
PRIORITIZING & CREATING NEW CONSUMPTION HABITS Consumers historically prioritize consumption by sorting products and services: • Essentials: necessary for survival or perceived as central to well-being. • Treats: indulgences whose purchase is considered justifiable. • Postponables: needed or desired items whose purchase can be reasonably put off. • Expendables: perceived as unnecessary or unjustifiable. Throughout a major moment of uncertainty, all consumers (except those in the live-for- today segment) typically reevaluate their consumption priorities: • Products and services can quickly shift in consumers’ minds from essentials to treats, postponables, or even expendables, depending on the individual. • As priorities change, consumers may altogether eliminate purchases in certain categories, moving them from from one category to another, or substituting purchases in one category for purchases in another. Source: Harvard Business Review. How to Market in a Downturn
THE MOST SUCCESSFUL BRANDS WILL BE THE ONES 55% 77% PROMOTING Brands have a more important role than government in building a better future for them. Prefer to buy brands that reflect and share their own values. A social change, by empowering people to be responsible consumers, through fresh, innovative and positive ideas that strengthen the relationship of trust. Fuente: Prosumer Report Havas®
The great LONG-TERM OPPORTUNITY ‘Surplus’ share of voice generates faster market share growth During crisis it’s natural that companies opt to cut budgets. While this may be unavoidable, the harder question to answer is “where to cut?” Focusing on the customer is what’s truly vital to long-term brand results. This focus can include all mid and lower-funnel marketing activities, from in-store customer service to intuitive online consumer journeys. Maintaining strong experiences for current customers trumps efforts to bring in new customers when it comes to driving overall demand. Customer experience is not just a focus during hard times– when customers are more likely to be judgmental – but should be prioritized during stable times too. When incorporated into your evergreen business strategy, customer experience will pay in dividends. Source: Binet, Les and Field, Peter: Marketing in the Era of Accountability, 2007 Companies that cut investment by 50% in a year of crisis, can take up to 2 years in recover the share of market they lost. Brands that increase exposure in times of crisis, can win up to 3 times more share of market en the 2 first year of recovery. Source: WARC. How to win during and after a recession David Dixon, Sebastian Shapiro and Nicole Wolf, Jan 2020
CHINA • • • Reluctancy to take public transportation Separation at public spaces (cinema, restaurants) Schools remain closed A RADICAL CHANGE OF HABITS • • Travel still postponed Online entertainment, education and shopping continue to increase. CONSUMERS • Hygiene products rebounding, people are more aware about their health • TV Ratings growing drastically Media consumption evolution: TV, • Help people feel comfortable with their new reality: Gaming, Social & OLV are the big • Online learning, entertainment and exercise. winners. • Live streaming products, demo and even “test drives” • More online customer support • Food retail expanding their delivery and drive-thru service BRANDS • Content and messages focused on consumer overall wellness and service. • Short video pieces of content to ensure dynamic updated info for consumers. IMPLICATIONS FOR THE FUTURE • Shopping experience will be increasingly online • Live streaming will impulse product demonstration, showrooms and sales. • Older people feel now more confident about online shopping • Personal hygiene routine will be more thorough. • More home cooking and eating healthy • Online merged offline for good in education,
ITALY • • Social distancing is mainly between generations to protect the elderly ones (Italy has the biggest population +65 of the European Union) Attending to virtual religious mass A RADICAL CHANGE OF HABITS • All collective gatherings are cancelled: restaurants, gyms, schools, cinemas, libraries… CONSUMERS • Online entertainment, education and shopping continue to increase. • Hygiene products rebounding, people are more aware about their health • TV Rating are growing consistently • Online learning, entertainment and exercise. • Financial companies providing online and phone customer support BRANDS • Limited delivery and shopping activity • Content and messages focused on consumer overall wellness and service. • Short video pieces of content to ensure dynamic updated info for consumers. IMPLICATIONS FOR THE FUTURE • Shopping experience and social interactions with elderly people • Use of online services and shopping will intensify among older people • Personal hygiene routines will be more intense. • Online education is rapidly developing
THE ONE COMMON 85% Of people believe they LEARNING have the responsibility to MAKE A Nowadays, people are aware that generating positive change is the responsibility of each on of us, and they expect brands to demonstrate the DIFFERENCE same level of consciousness and increasing the level of impact they can have Fuente: Prosumer Report Havas® in society.
THE STRENGTH OF “ IN MY HANDS ” Even the most mainstream consumers are changing their consumption habits to more conscious ones, thinking collectively, more responsibly. The question is: What is in YOUR HANDS?
Long Term MEANINGFUL STATEMENT ๏ New brand version Mid Term Latin Americans will resume their daily LIVE CONTENT lives, but with greater caution. New habits for hygiene and the use of online ๏Engagement at distance shopping platforms will be established Extreme absences in the streets Short Term and public places will be SMART VISIBILITY accentuated, online shopping will increase, inventory shortages are IN ๏Relevance expected for some categories YOUR People will be very attentive to government measures, prioritizing essential products for the pandemic and safeguarding HANDS household supplies Guidelines by stage to understand how brands can lead, rather than just react to change. Meaningful Brand Now Next weeks Evident since July
Smart visibility MAKE FAST ✓Activate special offers ✓Re-assign media spend DECISIONS ✓ Adapt messages in real time ✓Strengthen your social media ✓Focus attention to online channels Media consumption will change over the next weeks; ✓Give opening to new service channels and some media will become more cost-efficient than others. It is time to act without losing a brand’s ✓Design cross-selling communication north and purpose. Brands may need to reassign ✓Design customized communication focus from outdoor and print to TV, digital and even Radio in some markets. Investment should be coupled with dynamic messaging and new offers that activate existing brand inventories.
HOW THEY ARE DOING IT IN THIS FIRST STAGE Smart visibility The NT New Openning Communication Channels Conscious Consumption Inventories Promotion The transportation company Cabify® opens a Australian newspaper NT-News® due to excessive purchase of toilet Latin American airline Avianca® offers ease new communication channel for its clients, with paper decides to print additional pages to help those who have of flight changes and launches promotional personalized messages in solidarity with the #ToiletPaperEmergency offers to boost flights mid-year crisis
✓If you quit or are forced to cancel sponsorships (e.g. LIVE CONTENT soccer), think of how to communicate within the same territory ACTIVATE THE ✓Activate creativity in social media based on listening: culture and interests CREATIVE ✓Launch streaming / live contents that drive interaction. GENIUS ✓Design new alternatives of entertainment and As the weeks go by and the lockdown at home extends, the creativity and utility that brands can bring to daily lives will be conversation based on the product / packaging / well received. There will be more attention and willingness to share the good and the bad, people will be more connected through digital, and it will be the time to be audacious, aligned delivery with the brand purpose. ✓Implement fast-execution ideas
HOW THEY ARE DOING IT IN THIS STAGE LIVE CONTENT Social Media Content Online retail company Mercado Libre®, adapted its logo, generating social conversations Passion territories / Points Initiatives on territories like music or sport generate contents of high engagement at this stage of quarantine -Music Festivals from home -Marbles competitive tournament
Audiovisual (tv) SEARCH TV consumption will grow particularly Google seems to have the answer to in content associated with news and "almost everything" what boredom the prime time slot. entails "games to do with children" It will increase the consumption of platforms on demand, and online movie rental "what to cook today” and "how not to kill my husband in one day" THE ROLES RADIO OOH / MOVIE THEATERS OF MEDIA Radio in Latin America is very important, and as it’s well trusted we Without a doubt the most affected in this stage given sometimes forced IN THIS STAGE expect an increase in consumption of absences in the streets, OOH will have news content, which will be a leading role in the postpandemia complemented by online platforms stage where security and trust are key with all day playlists HAVE TO BE ADAPTED LIVE CONTENT SOCIAL MEDIA PRINT There will be a greater “anxiety" to be It is a medium that is linked to physical connected and not feel separated from contact, making sealed products key. it the world. Particularly for those who has a great challenge of reinvention as live alone or have small family nuclei, it information will be consumed mostly is an escape from confinement digitally.
MEANINGFUL STATEMENT REDEFINE ✓ Evaluate the meaningful purpose of your brand ✓ Activate product / innovation labs PURPOSE ✓ Be open to media that were on the sidelines (outside) ✓ Focus your gaze on touchless technologies Once this reality has been established in the psyche of Latin American society, people will expect transcendent changes in brands, significant contributions in a context that will be ✓ Reactivate multimedia visibility economically and emotionally affected. People will return to the streets, cinemas, shopping malls, ✓ Activate content in key territories for your brand bars, as an effect of freedom, and it will be an opportunity to redefine the purposes beyond the functional benefits and reactivate means that by forced effect were on the sidelines. ✓ Design offers (post-lockdown) TAT channel will be key
HOW THEY ARE DOING IT IN THIS STAGE MEANINGFUL STATEMENT Meaningful Production Product Innovation As part of a social re-definition, the beer LVMH® will produce anti bacterial brand Brewdog® decided to make hand gel to distribute among hospitals in sanitizer at their distillery in Scotland. A very France. innovative and relevant cross-selling.
Brand Short Term Medium Term Long Term Visibility SMART VISIBILITY LIVE CONTENT MEANINGFUL STATEMENT Expected reactivation with higher volume of personalized Contention: Opportunity for brand messages, focused on younger Last minute promotions building with content to help audiences affected by the to decrease inventory. you feel entertained at home quarantine. Proceed with caution (bring the vacay to people’s Opportunity to emphasize the and messages of home), and content to plan establishment of new and TOURISM conscious consumption your next trip modern health protocols in the brand’s communication With the devaluation of local currencies, it may Shift media strategies to more be an opportunity for Brand building opportunity efficient purchasing models in higher tier segments to showing involvement in order to minimize shrinking sales be purchased prior to society, especially for those margins for importers. Digital AUTOMOTIVE price increases with local factories becomes even more relevant
Brand Short Term Medium Term Long Term Visibility SMART VISIBILITY LIVE CONTENT MEANINGFUL STATEMENT New habits in the use of digital banking instruments Opportunity to generate will give the opportunity to closeness with content generate more personalized that supports savings Evolution of consumption of communication in order to and financial planning, digital banking with contribute to higher-value encouraging conscious contactless payment FINANCIAL products for those who need consumption mechanisms them. Telcos gain even more relevance in people's lives at The brands that become the start of telework. more human and close Opportunity to demonstrate during this process will preparation and infrastructure. Brand building through home have the opportunity to entertainment products and generate personalized Their involvement and support content. Greater relevance in content and decrease TELCOS to government entities to stop packaging offers churn in a more cost- the pandemic becomes key efficient way. when evidencing their contribution in society.
Brand Short Term Medium Term Long Term Visibility SMART VISIBILITY LIVE CONTENT MEANINGFUL STATEMENT Conscious consumption Supermarkets & Drugstores Opportunity to position Product / packaging messages to ensure innovation supply, and hygiene to brands by demonstrating their involvement and Great opportunity to build trust. Innovation in innovate in OOH to contactless purchasing contribution in society exemplify role during the models with a digital focus crisis RETAIL Promotional messages Innovation in the use of to reduce inventory, media and content creation Reactivation of mass retail. internal digital Other to generate greater proximity, Remembrance and transformation with brands that have a promotion strategies will be processes for online genuine social or key to achieve re-activation sales entertainment purpose of the sector
BRAND CHECKLIST GUIDELINE NO-PANIC CHANGES NO-UNIQUE SOLUTION TRIGGER INNOVATION It is a moment to make A, B, C & D It's time to activate product Readjust and make decisions fast, but development / innovation teams, it can not panicked; don't lose the track of plans. Prepare multiple scenarios with your agencies generate long-term changes the brand CREATIVE DRIVEN PERFORMANCE THE NORM MEANINGFUL STATEMENT It is a time where creative innovation Focus efforts where it really makes Take the time to redefine the purpose of must play an important role: genius sense, some media will become more the brand, in a context that will leave an over need cost-efficient affected society
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