Happi Staff06.07.20
Finding traction during an economic expansion is tough enough, but how do companies build brands when unemployment rates surge from 4% to nearly 20% in a matter of weeks? IRI recently offered some tips on doing just that as part of its series, "Recession-Proof Your Business."
1. Optimize and Curate Portfolio
1. Optimize and Curate Portfolio
- Evaluate brands by strength and category potential
- Segment the portfolio by growth opportunities and short- and long-term risk
- Simplify portfolios and work with retailer partners to bolster value through curation
- Segment shoppers by degree of recessionary stress
- Invest in unmet segment needs
- Conduct price-pack architecture studies on consumers’ willingness to pay for features
- Create value by consumer segment and channel; focus on planned purchases
- Leverage targeted media to reach new buyers
- Invest in research to understand redefined consumer values, needs and motivations
- Demonstrate empathy in marketing messages; track amplification on social media
- Reinvest trade dollars to support innovation
- Maintain commitment to innovation research, concept development and commercialization for post-recession
- Prioritize innovation platforms, allocating more money to bigger bets
- Understand demand domains that will be positively impacted by COVID-19
- Proactively identify insurgent brands with capital challenges
- Acquire brands that appeal to new consumer segments or are otherwise positively differentiated
According to IRI, in past recessions, few large brands enjoyed substantial growth, but now, large, iconic brands are acquiring both new and lapsed buyers. In this new recession, the challenge will be for these brands to maintain buyer loyalty.