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Wising up for a downturn: Consumer behaviour in a recession

Wising up for a downturn: Consumer behaviour in a recession. July 2008. Three hypotheses…. Consumer demand for CSR is little more than a reflection of affluent times. When money is tight, interest will diminish.

Melvin
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Wising up for a downturn: Consumer behaviour in a recession

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  1. Wising up for a downturn: Consumer behaviour in a recession July 2008

  2. Three hypotheses… • Consumer demand for CSR is little more than a reflection of affluent times. When money is tight, interest will diminish. • Ethical values are now an intrinsic part of consumerism. They will remain a key determinant of consumer behaviour despite recession. • Financial frugality will inspire more sustainable living. The focus on CSR will increase.

  3. Which one will be true? • There is no precedent to refer to. In terms of affluence, values, media focus and political interest, we have been living in unprecedented times. • The answer may well vary dramatically according to sector and target audience. But there are some indicators that can help us evaluate the likely outcomes and implement proactive strategies …

  4. Don’t underestimate the financial reality 19% 5.4% 6%

  5. Or where finance fits in the priority list What would you say is the most/other important issue facing Britain today? (unprompted) – Ipsos Mori

  6. Stamp Duty Dentistry Charges Barely Discretionary Road Pricing Rail Fares Adult Learning Fees University Fees Congestion Charges Petrol Prices Multiple Holidays iPod(s) Street-Parking Fees Gap Year Expenses Inheritance Tax HDTV Air Travel Taxes Motoring Fines Hospital Car Parking Mobile Upgrade Water Metering Organic Food Private Health Insurance Council Taxes Domestic Help Second Car Partly Discretionary Bank Charges Blackberry Legal Aid Passports School Charges A soft-squeeze from new forms of cost exposure. Waste Collection - Charges/Fines

  7. "Higher-end consumers will have to make a trade off. Either they stick to their principles, or – as they batten down the hatches – they may decide that they can live without fair trade or organic in order to avoid cutting back in other areas." Ernst & Young ITEM Club report 20th May 2008

  8. From values to value - the rise of ‘frugal-chic’?

  9. Three hypotheses… • Consumer demand for CSR is little more than a reflection of affluent times. When money is tight, interest will diminish. • Ethical values are now an intrinsic part of consumerism. They will remain a key determinant of consumer behaviour despite recession. • Financial frugality will inspire more sustainable living. The focus on CSR will increase.

  10. It has been established as a reputational issue If UK businesses could do one thing to improve their reputation in 2007, in your opinion, what would this be? Source: Opinion Leader Research 2006

  11. Traditional communications strategies are not going to be enough 79% agree (including 46% who agree strongly) I don’t think it’s enough for companies to say that they are ethical, they need to prove it to me Ipsos Mori

  12. Focus on the floating voter… Hardliners (both supporters and detractors) are often just a vocal minority. They are important, they can create problems but they are a minority with entrenched values. The real battle will be the middle ground, the floating voter.. Identify your ‘floating voter’, know them, treat them with respect Know where you fit in their world Engage in permanent and precise campaigning

  13. Ask your consumer what they think you should do…

  14. Ask your consumer what they think you should do… • Engage in a visible and meaningful way - what can you do, what should you do, what is the priority? • Talk with the audience not at them • Feed back what you have discovered and what you will do about it. Video in here

  15. Be passionate & create engagement “Hi, Our strategy to win is quality, health and ethics, so the ethical costs are something we invest in as a way to keep the brand strong and differentiated. We may take a bit of kicking in an economic slow down, but the ethical stuff is here to stay. When you're called innocent it needs to be. If prices need to come down we would reduce marketing and overheads rather ethics. Rich”

  16. Be passionate & create advocacy Those of you who know us, already know that we are in LOVE with innocent drinks . This winter promotion shows exactly why…Not only it’s cute and yummy  and make you want to hug these little bottles and offer them a home and your name… it also naturally and effortlessly responding to the knitting mania. Ask yourself, if you met one of these cuties in the shop, could you resist it? Well, for us, This is Branding. This is Marketing. This is Advertising. This is Word of Mouth. Brandon Blog

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