Joe Digital Blog » recession

Pfizer: A Brand Friend Doing It Right…Indeed

Peter Schankowitz — Fri, 15 May 2009 21:56:22 +0000

When we are trying to explain our approach to branding and digital marketing. We always start with our equation GREAT CONTENT + STRATEGIC DISTRIBUTION = LOYAL PARTICIPANTS WHO LIVE YOUR BRAND. Of course, there are many sub-components here. Great Content starts it all. One of the key elements of great content is that it must deliver something that (1) hits emotional touchstones; (2) delivers something of genuine value; and (3) invites loyalty.

Pfizer is pulling off a branding master stroke. They are giving away certain prescription drugs to those who have lost their jobs and health insurance due to the recession. Put yourself in the consumers’ shoes. “I’m broke. I can’t afford the meds that I have relied upon. I really need them. Wait, the drug company is going to let me have them for free until I get back on my feet? Wow.” These consumers are never going to forget this. Pfizer delivers a message of caring about their audience, they deliver a tangible, high stakes benefit, and they do so at a time of need. Nice.

Hyundai pulled off the same move even earlier with their “we’ll buy it back” offer. In each of these instances, the brands showed up and stepped up for the consumer on the consumers’ terms. That is the part that makes it memorable and that makes for brand loyalty. From the time the mouse removed the thorn from the lion’s paw to today, a friend, in those times of need, is a friend indeed. Like the lion, the public won’t forget. Now all we have to do is get brands to apply these same principles in all of their efforts, at all times.

Brands Emerging from the Fallout Shelter

Peter Schankowitz — Thu, 14 May 2009 19:05:12 +0000

In a prior post, I discussed the budget slashing reaction most brands had to the economic calamity. I queried how long brands could stay in crisis mode and refuse to spend on branding and marketing despite that being a mainstay of their business. I guess things are starting to turn and brands are coming out of their fallout shelters now that there are signs that the recession has bottomed out.

In an Ad Age article today, several key marketing executives point out that the worst may be over and that it is time for brands to start branding again. Richard McDonald, senior VP-global marketing of Fender, the musical instrument brand makes it clear that the time is now. “The cost of raw materials is going up, and marketing is the only thing that offsets those increases. You have to build brand value and spend on marketing.”

It will be interesting to see how these brave souls do. By no longer taking the Ostrich approach, will they get a leg up on competition, attract new consumer converts and otherwise grab market share? Maybe the bigger question is that which I posed in the last post. What about the brands like Hershey that decided to damn the recession, spend last Fall when the sky was falling and zig when all others were zagging into the long, spend not winter? My guess is that both will be rewarded, but that those genuinely brave brand souls will show a more quantitative, qualitative, and measurable bang for their buck.

Will the spending surge be different this time? Will marketing dollars flow toward digital as opposed to the traditional? Stay tuned.

Recession Marketing: Spend Now, But Spend Wisely

Zach Jordan — Fri, 13 Feb 2009 01:36:33 +0000

These are, indeed, the times that try mens’ souls.

Even for those of us who lived through the late 80s and other recessions, this one is particularly bad. GDP down 3.8% (a new record), job losses at an all-time, post-Depression high, and consumer confidence in tatters. Sheesh. Interestingly, the general reaction for brands seems to mirror that of the credit institutions—pull back and wait. At some point, the creditors will have to wake up and realize you can’t put your core business on the bench. Credit will flow again and the wheels will be put back on the economic machine.

The same is true for brands. While we can all understand belt-tightening as an internal reaction given the blood bath of the last quarter 2008, is 2009 really the time for brands to continue pulling an Ostrich? Is this really the time to spend less and spend only on traditional media models we know are less and less effective? I think not and I don’t think I am alone.

The CEOs of both P&G and Hershey have both weighed in with the observation that NOW is exactly the time to spend on marketing and branding. Noting that for the first time in recent memory ROI for marketing and ad spend may outpace cost, Hershey CEO, David West is bumping up media spend in 2009 by over 25%. Not only is this due to the raw numbers differential between cost and return, but the company sees the current market as an opportunity to grab market share and consumer loyalty while the competitors sit on the bench.

So now is the time to spend. But that is only half of it. Spend wisely. To us, that means put your money toward reaching your targets utilizing modern technologies and realities. The “lean back” audience is gone and brands need to reach the increasingly demanding and proactive “lean forwards” that will not be “sold”. There is a new equation / sheriff in town that says the target audience wants great content and brand message (value) delivered to them on demand and on their terms. The “hope we find them” traditional models just won’t work. What will work is a personal brand message delivered to them where, how, and when they want it. In the digital age, this means using online video, social networking, vertical passion centers and the like to get the consumer what they want at their time of want or need.

It’s all about media, branding and marketing spend that works in the new reality we live in. For a great summation of some specific, stop-gap measures, that will allow brands to ride out the worst of this as they embrace and shift toward this new equation and participant/brand paradigm, see Optimedia CEO, Antony Young’s list featured in a recent MediaPost.

So brands need to realize that the only thing they have to fear is spending itself. They must realize that smart spend to reach and converse with the new brand participants is the key to not only riding out this storm, but cost-effectively grabbing additional share and brand loyalty.

Peter J. Schankowitz

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The Simplifiers

Peter Schankowitz — Fri, 13 Feb 2009 01:30:48 +0000

In a recent MediaPost article, Optimedia CEO, Antony Young delivers a terrific recession survival guide for brands and marketers in the these difficult times. Of note, is his pitch that there is a new category of consumer he calls “the simplifiers”. These folks are those who don’t necessarily want to be sold more “stuff” but are eagerly looking to buy “experiences”.

I love the label as it summarizes part of what my business partner (and many other geniuses) have been saying about modern day branding and the necessity of delivering personal value in brand messaging. I’m betting that underneath Mr. Young’s observations about this new category, is the fact that these folks don’t want to be sold the old way. It’s no longer buy this because, well, it is good. Rather, the modern buyer wants something that is personal and that impacts her on a very specific, lifestyle basis. It’s now all about “buy this because it fits and enhances your personal lifestyle, your personal wants and personal needs”.

The idea that “consumers” are increasingly casting their loyalty votes for brands that deliver this personal value/experience is further evidence of the fact that, as we have said before (along with other geniuses), they are now participants. Makes sense, no? They can’t “participate” in an inanimate object but they can when it is associated with an experience they want or need. They can cut back on the occasional thing or random service, but they are less apt to turn away from a product/service that comes with experience or lifestyle “instructions” that resonate on a very personal level, at a specific time of need or want.

So perhaps the gist of the recession survival guide is that brands need to follow the new marketing equation we have written about in prior posts–CONTENT (value, experience, etc.) + DISTRIBUTION (deliver the experience on their terms) = CONVERSATION = LOYAL PARTICIPANTS.

In short, one could argue that ALL consumers are becoming Simplifiers looking for value, experience, and a participatory relationship with brands. All we have to do is embrace the equation and do the math.

Peter J. Schankowitz

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UGC Wedding

Zach Jordan — Sun, 25 Jan 2009 01:01:21 +0000

Times are tough, especially if you’re planning a wedding. As the business of weddings changes, happily engaged couples are also adjusting their plans by hosting their own interactive websites in lieu of invites, and using video registries (don’t forget to ask for the Shamwow!) to cut back. One question you might want to ask if you’re planning a wedding: do I really need to hire a wedding videographer or can I enlist the talents of my wedding party? If you abhor the idea of anyone but an esteemed video professional capturing the emotion of your day, stop reading this post, type “wedding video” into Google and start perusing the over 26 million choices.

Consider this: we have video cameras on almost every type of smart-phone (even the new, upcoming iPhone). We have tape-less HD video cameras that fit into the palm of your hand. You can even broadcast live video from your phone with sites like Qik. One of my favorite parts in a wedding video is the interview portion where your esteemed videographer and his/her 3200k floodlight that melts the rouge off Aunt Barbara and makes Uncle Jerome squint, sets out to capture “personal moments”. This is effective, but is it really personal?

If your goal is to capture the emotion of the day, then what might a UGC wedding be like? You’ve painstakingly narrowed down that list of attendees and been careful to only include those you consider worthy of the money you spent on their meal. Why not make them earn it? Every one of your invites could be armed with a digital video camera or still camera, capturing the tender and hilarious moments as they unfold. You could ask people to document peoples’ journey to the wedding and other moments leading up to, during and following your special day. These “moments” could be cut together into one large video or several pieces. You could ask friends and family to cut their own DVD version or people could host individual video clips on a free, video site like Vimeo.

Wedding stories are memorable because they’re personal. And sometimes what happens is worth mentioning and is just as important as what is carefully rehearsed, forgotten and then laughed at later. A UGC wedding would uniquely capture perhaps the single most relevant day in your life, where you’re surrounded by the people you love the most, in a way you may not get to experience again. My only suggestion would be, to refrain from making UGC or professional video a part of your bachelor/bachelorette party and wedding night…..then again, wouldn’t that make a great website!

Zach Jordan

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