COVID-19 continues to spread all over the world and affecting economy and industries everywhere around the world. Marketers are faced with difficult and complex strategic choices.
The COVID-19 recession has caused negative effects like a demand and supply shock, we can see that there are brands in many sectors with no product to advertise.
This guide shows some of the most useful thinking from over the industry on operating the post-lockdown time, as well as, presenting marketers with more actionable ideas based on the position of their brands.
Let’s dive into more details…
It is always better to take a look at previous experiences and how people managed to get through crisis times. In light of that, there are a variety of studies that indicate that cutting too hard has an impact on the long term in market share, growth, terms of sales, and return on investment. It is reported that companies that maintain investment recover more quickly.
Related Report: COVID-19: How Businesses are Handling the Crisis Report
It is obvious that the lockdowns caused by the COVID-19 spread have caused a sharp downturn. The chart below explains it all,
What happens now is a healthcare crisis which leads to a critical economic slowdown, not only that but also it makes the shape of the recovery hard to predicts because the consequences of the COVID-19 lockdown becomes visible and there is a risk of further outbreaks, unfortunately.
In light of that, Sir Martin Sorrell predicts a “reverse square root” recession – a sharp downturn, a partial bounceback then a plateau.
It is necessary to think ahead, therefore after the lockdown is over, actions need to be taken.
However, the actions are different from company to another depending on the company’s resources, and if operating in a bust or boom category.
Anyhow, every brand, regardless of the state of play should aim to help, be customer-led, understand changes in spending behaviors, along with monitoring consumer insights, and spend wisely.