Marketing Opinion South Africa

Marketing in tough times

In tough economic times, marketers are sometimes tempted to compromise their brands in order to drive sales or footfall - but this is a danger zone. It is in difficult trading conditions that we as marketers need to be very protective of our brands, ensuring we maintain a sound balance between building sales and retaining our brand image.

We may need to resort to special offers to boost sales, but we should always be mindful of what we're doing to the brand. Remember, bad times will pass, and when they do, we need to be sure that we still have our customers; that they haven't gone somewhere else because we devalued our brand.

Don't panic...

It's an error in judgement that we've all succumbed to on occasion, offering promotions or specials that are so attractive that they achieved the desired numbers, but not the right market - and our brand was in danger of being compromised.

What we have learned through these experiences is that when times get tough - don't panic! Good decisions are seldom made in a state of panic. Decisions made in these situations may result in quick short-term gains, but are likely to mean longer-term damage to the brand.

I really admire brands that retain their essence throughout an economic downturn. Woolworths is a clear case in point. Their pricing campaigns and their 'eat in for R150 for a family of four' promotions are completely in line with their brand values, and they serve to bring feet in the door and deliver value when consumers need it, without compromising their positioning. I firmly believe that brands should not discount their offering, but rather find creative ways to add value. In difficult times, you can ensure that you maintain your brand positioning and integrity and at the same time build customer loyalty, not by making your product cheaper but by delivering more value for money. Once you've taken the image of an aspirational brand down by discounting and potentially appealing to a different market it's difficult - if not impossible - to take it back up again.

Creative promotions

Understandably there are times where one has to drive footfall or revenue immediately and not wait for the economy to turn. Then I suggest you 'creatively' package and communicate your offer or discount so as not to appear desperate or cheap and in such a way that your 'brand' is not permanently damaged and can recover at a later stage. So, 'disguise' the discount or offer as a promotion, make it only applicable to a specific market (loyal cardholders), run it for a specified and not indefinite period, don't make it too cheap, try package it as a value offering so the discount is not so apparent (Woolworths R150 meal for 4 or our various 'Night out for Two' promotions) and lastly, remember that the creative (even if it is a promotion) is part of and not separate from your brand.

The other thing we've learned is that when cutting costs, we need to be careful to cut the right costs. For instance, a kneejerk reaction in a recession is often to cut advertising spend, but research shows that this is a short trip to disaster. Not only will your brand suffer, but your sales will drop too - and the chances of other players in the industry also cutting their adspend is slim, which means you will hand them some of your market on a platter. Rather make sure that every rand - and every ad - works, and don't just do something because you've done it before. Approach spending money as if it's your own business and always ask yourself 'what is this going to do for me' - which might mean sacrificing some of the nice-to-haves.

Marketing in a recession is not for sissies! But it does offer its rewards - such as building your brand and entrenching your values in the consumers' mind. That's priceless!

About Noëleen Bruton

Noëleen Bruto is marketing manager at Tsogo Sun, a hotels, gaming and entertainment company in South Africa.
Let's do Biz