“There is no doubt we heading into difficult times globally for brands... we will see it in brand behaviour, people's behaviour, the squeeze on extensive brand campaigns... and this is where consumers are so fascinating. There are certain things people will not give up on.”
Hawkins, who spoke to Bizcommunity.com exclusively on a recent visit to South Africa, says it comes down to individual choice and the way that consumers make changes in their lives as it is a very personal choice and everyone will be different.
“It's important to understand the consumer psyche during tough economic times. Consumers are forced to redefine value and will make basic decisions about what they are prepared to spend. If a brand is truly important to a consumer, then they will at least try to find a way to buy it some of the time. But generic versions of particularly lower involvement categories do become very compelling.
“In tough times, we tend to see the 'collapse in the middle'. The category leaders often do well and even become stronger. People cannot afford to make mistakes and familiar brands can offer some much needed comfort and reassurance. The value brands are also likely to receive a boost as the combination of a familiar name and a reasonable price is compelling in these circumstances.”
She says the brands that tend to suffer during turbulent times are the mid-level brands that have failed to carve out a clear positioning and cannot compete in terms of value with either the category leaders or the value brands.
“From a marketing perspective, it is important to remember that brand building is a continual process and that consumers will continue to experience brands and form opinions about them both during active and inactive (marketing) periods.”
Hawkins goes on to say that while it may be necessary to cut brand spending, the consequences on the brand must be considered. “Brands can provide reassurance and comfort (and even a retreat or escape) during hard times and an 'absent' brand may be perceived as abandoning its users.”
Her advice to a brand when marketing budgets are under pressure, is as follows:
Ultimately, Hawkins says, the brands that survive are those that understand and are built around the emotive drivers of brand choice: “While hard economic times signify periods of more careful consumption and factors such as price and value take on greater significance, people's underlying needs do not change and brands can continue to satisfy these needs.”
There are several areas which brands need to capitalise on to bring them closer to their consumers, while still attracting new consumers:
New consumers are most conscious of those trends so brands which take them into account are those best positioned for future growth.
