Namrata Singh | TNN
Mumbai: The lockdown due to Covid-19 presented a big challenge to several brands and their messaging. People were forced to stay at home.
‘Walkaroo’ from VKC footwear was all about moving feet. But during the lockdown, the brand had two choices: Either fade into oblivion, or think out-of-the-box and hyper-engage with consumers. It picked the latter and created a digital campaign urging youngsters to remain active by helping around the house and exercising. The brand realised that while the young generation was immobile in one sense, their levels of restless energy would not diminish.
Similarly, Byju’s ‘live classes’ replicated the ‘classroom’ environment, which was different from the pre-recorded videos. Nike, on the other hand, gave free access to premium training programmes through its training app. Consumer behaviour, attitudes and belief systems have undergone dramatic changes. Brands have been forced to evolve. Several aspects of marketing are being reversed. Staying relevant is all that matters.
Subramanyeswar S, group chief strategy officer at MullenLowe Lintas Group, said consumers would dissect brands more than ever before. This means brands will need to create a meaningful difference in their day-to-day lives. “It’s no longer about brand loyalty, but consumer loyalty,” he said. The tenets on which brands are built are no longer valid, he added, adding, “It’s time for authentic action, not words. People want brands to be understanding, trusted partners, like a family member.”
From extensive qualitative research, MullenLowe Lintas Group found that the consumer decision-making cycle during such times gets protracted and this opens up hyper possibilities for brands to engage with them. “From just comparing, buying and enjoying, as they used to earlier, they’ll now go through multiple stages of researching, comparing, postponing, and even justifying, after the purchase. Hence, brands need to pay equal attention to post-purchase engagement, in addition to the usual pre-purchase and during-purchase engagement,” said Subramanyeswar.
Longitudinal studies done by ITC along with Purple Audacity reveal that consumers are grappling with multiple paradoxes — safety versus financial security, or thoughtful spending versus feel-good purchases, for instance. The manifestations of these paradoxes have impacted their choices. Consumers are picking brands providing tangibly superior safety reassurance.
At an individual level, a consumer is said to be undergoing polarising emotions at the same time, and is using different coping mechanisms alternatively. A consumer whose salary was cut was now spending thoughtfully, but that has not stopped her from satiating certain food cravings and indulgences. The impact of using a mixed set of coping mechanisms is expected to continue to drive mercurial consumer behaviour.
Hemant Malik, divisional chief executive of ITC’s foods division, said the company’s recent communication campaigns on Aashirvaad and Yippee, among others, are powered by some of these new consumer trends and insights that have emerged from such longitudinal studies.
Another critical change is how value-for-money is not good enough. “During the good times, consumers stood by their brands and paid a premium for every new variant or additional feature. They’ll now sacrifice variety or customisation in favour of simplicity. Brands need to go beyond the hype and engage consumers with solutions that fit their needs, as no product is ideal in the current situation. Consumers will not just seek value-for-money but value-for-experience, as that is emotionally reassuring and elevating,” said Subramanyeswar.
Consumer confidence too has hit a roadblock. “As needs beat wants, sacrifice becomes a part of people’s vocabulary. Consumers whose bold optimism earlier made them purchase an iPhone even when their salary was one-fourth the cost of the phone, will drastically cut down on spends or postpone purchases. We are seeing them reduce all types of spending by eliminating, postponing, decreasing or substituting purchases,” said Subramanyeswar.
Perfetti Van Melle India, the maker of confectionery brands Centre Fresh and Alpenliebe, lost business as a category as footfalls disappeared from the streets. Gradually, business is limping back to normal. Rajesh Ramakrishnan, MD of Perfetti Van Melle India, said, “Consumers are still gravitating towards brands they trust, but they are paying a lot more emphasis on value. In the past, it was okay for a consumer to pick up larger packs. Now they think twice before buying them. Since we are largely present at Re 1 and Rs 5 price points, our products are being picked up as an affordable treat in these difficult times. The kids at home need to be kept engaged, and our portfolio provides the families those moments of happiness.”
Ramakrishnan said the company is now getting towards 80-85% of pre-Covid level in sales, and is also gearing up for new product launches in the coming months. “Life has to go on. We all need to adapt and recalibrate to the current reality,” said Ramakrishnan.
Mumbai: The lockdown due to Covid-19 presented a big challenge to several brands and their messaging. People were forced to stay at home.
‘Walkaroo’ from VKC footwear was all about moving feet. But during the lockdown, the brand had two choices: Either fade into oblivion, or think out-of-the-box and hyper-engage with consumers. It picked the latter and created a digital campaign urging youngsters to remain active by helping around the house and exercising. The brand realised that while the young generation was immobile in one sense, their levels of restless energy would not diminish.
Similarly, Byju’s ‘live classes’ replicated the ‘classroom’ environment, which was different from the pre-recorded videos. Nike, on the other hand, gave free access to premium training programmes through its training app. Consumer behaviour, attitudes and belief systems have undergone dramatic changes. Brands have been forced to evolve. Several aspects of marketing are being reversed. Staying relevant is all that matters.
Subramanyeswar S, group chief strategy officer at MullenLowe Lintas Group, said consumers would dissect brands more than ever before. This means brands will need to create a meaningful difference in their day-to-day lives. “It’s no longer about brand loyalty, but consumer loyalty,” he said. The tenets on which brands are built are no longer valid, he added, adding, “It’s time for authentic action, not words. People want brands to be understanding, trusted partners, like a family member.”
From extensive qualitative research, MullenLowe Lintas Group found that the consumer decision-making cycle during such times gets protracted and this opens up hyper possibilities for brands to engage with them. “From just comparing, buying and enjoying, as they used to earlier, they’ll now go through multiple stages of researching, comparing, postponing, and even justifying, after the purchase. Hence, brands need to pay equal attention to post-purchase engagement, in addition to the usual pre-purchase and during-purchase engagement,” said Subramanyeswar.
Longitudinal studies done by ITC along with Purple Audacity reveal that consumers are grappling with multiple paradoxes — safety versus financial security, or thoughtful spending versus feel-good purchases, for instance. The manifestations of these paradoxes have impacted their choices. Consumers are picking brands providing tangibly superior safety reassurance.
At an individual level, a consumer is said to be undergoing polarising emotions at the same time, and is using different coping mechanisms alternatively. A consumer whose salary was cut was now spending thoughtfully, but that has not stopped her from satiating certain food cravings and indulgences. The impact of using a mixed set of coping mechanisms is expected to continue to drive mercurial consumer behaviour.
Hemant Malik, divisional chief executive of ITC’s foods division, said the company’s recent communication campaigns on Aashirvaad and Yippee, among others, are powered by some of these new consumer trends and insights that have emerged from such longitudinal studies.
Another critical change is how value-for-money is not good enough. “During the good times, consumers stood by their brands and paid a premium for every new variant or additional feature. They’ll now sacrifice variety or customisation in favour of simplicity. Brands need to go beyond the hype and engage consumers with solutions that fit their needs, as no product is ideal in the current situation. Consumers will not just seek value-for-money but value-for-experience, as that is emotionally reassuring and elevating,” said Subramanyeswar.
Consumer confidence too has hit a roadblock. “As needs beat wants, sacrifice becomes a part of people’s vocabulary. Consumers whose bold optimism earlier made them purchase an iPhone even when their salary was one-fourth the cost of the phone, will drastically cut down on spends or postpone purchases. We are seeing them reduce all types of spending by eliminating, postponing, decreasing or substituting purchases,” said Subramanyeswar.
Perfetti Van Melle India, the maker of confectionery brands Centre Fresh and Alpenliebe, lost business as a category as footfalls disappeared from the streets. Gradually, business is limping back to normal. Rajesh Ramakrishnan, MD of Perfetti Van Melle India, said, “Consumers are still gravitating towards brands they trust, but they are paying a lot more emphasis on value. In the past, it was okay for a consumer to pick up larger packs. Now they think twice before buying them. Since we are largely present at Re 1 and Rs 5 price points, our products are being picked up as an affordable treat in these difficult times. The kids at home need to be kept engaged, and our portfolio provides the families those moments of happiness.”
Ramakrishnan said the company is now getting towards 80-85% of pre-Covid level in sales, and is also gearing up for new product launches in the coming months. “Life has to go on. We all need to adapt and recalibrate to the current reality,” said Ramakrishnan.
