COVID19 - LATINOAMÉRICA - Havas Content ...

 
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COVID19 - LATINOAMÉRICA - Havas Content ...
THE
MEANINGFUL
SHIFT
COVID19 - LATINOAMÉRICA
COVID19 - LATINOAMÉRICA - Havas Content ...
IN MOMENTS OF CRISIS,ONLY

IMAGINATION
IS MORE IMPORTANT THAN
KNOWLEDGE
Albert Einstein
COVID19 - LATINOAMÉRICA - Havas Content ...
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
COVID19 - LATINOAMÉRICA - Havas Content ...
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.
COVID19 - LATINOAMÉRICA - Havas Content ...
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
COVID19 - LATINOAMÉRICA - Havas Content ...
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®
COVID19 - LATINOAMÉRICA - Havas Content ...
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
COVID19 - LATINOAMÉRICA - Havas Content ...
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,
COVID19 - LATINOAMÉRICA - Havas Content ...
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
COVID19 - LATINOAMÉRICA - Havas Content ...
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
COMPETITION
MAKE US FASTER;
COLLABORATION
MAKES US BETTER
          THANK YOU!
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