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These are challenging times for the brand. Demography is a challenge. A challenge that brands need to use strategic dexterity and insightful planning.

Demography is the study of events that affect the structure of the human population, such as births, age, deaths, fertility rates or income. There has always been the mantra that “demography is fate”.

Accompanying this mantra is the idea that the only events that can change the arc of demographic fate are global catastrophes at the level of nuclear war, severe famine, or pandemic plagues.

Step inside Covid-19, the catalyst for changing our nation's demographics. Although US birth rates have been falling since the 2007-2008 recession, the coronavirus has already turned our future population outlook on its head. Coronavirus has lowered the US birth rate while increasing the US death rate. Our lifetime predictions have changed.

The forecast by the Brookings Institute – a social science research group – assumes that there will possibly be "half a million fewer children" in the next year. (This Brookings report is available online.) Atlantic magazine published an article (also online) last July 2020 on how the pandemic is disrupting the three key population growth indices: births, deaths and migration. According to the authors of the article, "… the US population could reach the lowest growth rate in 100 years."

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Brands have to deal with this new future of who the customers will be for products and services. Sustained profitable growth will not be achieved without a review and action agenda that addresses our demographic transformations. This means immediately developing and investing in products and services to accommodate changing population outlooks or the decline in risk-gain and irrelevance.

Some branded companies are already making changes. Reckitt Benckiser makes Lysol. The organization is seeing increased demand for Lysol due to its disinfectant properties. Reckitt Benckiser also makes Enfamil, the nutritious baby food. In a world with millions fewer babies, the future of robust enfamil sales is uncertain. As reported in the Wall Street Journal, Laxman Narasimhan, CEO of Reckitt Benckiser, shows strategic agility by leveraging Enfamil's infant nutrition expertise to create nutritional supplements for aging populations. Think of adult enfamil. Mr Narasimhan said, "We are seeing a real tailwind from seniors and the rate of growth is not low."

Brands that sell baby diapers, baby food, baby wipes, and more aren't the only ones facing an uncertain future. Fewer babies mean fewer children. Grains for children need to take into account these changing demographics. McDonald & # 39; s Happy Meals must respond to this demographic change. Pre-made lunches like Kraft Heinz 'Lunchables need to rethink strategies, especially when schools may not be open.

Branded companies need to figure out how to use their expertise to address the needs and concerns of older adults. At the same time, they must not forget the younger population. There may not be a lot of babies, but the United States still has a lot of teenagers and young adults.

One of the challenges for marketers is that our demographic dilemma with coronavirus has a hidden paradox. While there is currently a large generation of baby boomers, most of whom are over 70 years old, there is also a large Generation Z population who were born between 1997 and 2012. Millennials may seem young to boomers, but on average they are now over 30 years old.

In other words, not only must marketers innovate for our pandemic-changing demographics, they also need to find ways to focus on two very different groups of people. Brands need to focus on: 1) a large number of "older" customers over the age of 70; and 2) a "bulge of youth" Along with the decreased fertility rate and increased mortality rate of the pandemic and what those harbingers are, our world is older and younger at the same time.

Covid-19 may hurt our demographics, but there are ways for brands to target multiple cohorts with creativity and ingenuity. In order to use expertise in new ways, brands need to be able to answer five key questions. Then products and services should be designed accordingly.

1. What are the changed behaviors by age group?

Typically, branded companies use new product and service information to change customer behavior. But this time the pandemic has already changed its behavior. Data from global consulting firm McKinsey shows that 3 out of 4 respondents have tried a different way of shopping because of the coronavirus. Brand companies need to be clear about changes in behavior in their areas of expertise. Starbucks and Chipotle are building new, pick-up-only stores. These shops are not intended for eating, but for driving through and taking away.

2. What are the various cohort problems created by these changed behaviors that the branding company could leverage?

Just because people have changed their behavior doesn't mean they're happy. Nor does it mean that behavior changes are easy. Facilitating online shopping and meal delivery for seniors is an area that is ripe for innovation.

Know your areas of expertise. Then find out what is often irritating to people and resolve that irritation. Finding a relevant, differentiating solution to people's problems is a great source of innovation. When asked what they want, people usually give general, familiar answers. This is because most of us don't really know what we want. Think like a customer. Use common sense. Think about your own experiences. Think about what you have heard or learned from others. See your company through the eyes of your users.

For example, Covid-19 has changed people's perception of assisted living facilities. Now older kids – Generation X and some older millennials – are rethinking sending mom and dad to foster homes. Older children have problems. They are afraid of leaving mom or dad alone to age at home. For these older children, however, their homes are either too small or not designed to accommodate a senior. Lennar Corporation, the largest US brand name housing company, is addressing these concerns with new multi-generation homes. Lennar is a leader in creatively designed, affordable, multi-generation homes that cater to the needs of seniors. Other home builders do the same.

3. What are the true areas of competence of brand companies?

Some branded companies get stuck in a category because they have limited definitions of what they are good at. These companies can no longer see the greater potential of their expertise. Kodak is an example. Kodak believed it was the haloid film business and got lost when digital film took over. Fuji Film didn't see itself as in the movie business. Fuji Film believed that they were molecules and elements. Fuji Film scientists knew that the gelatin used in the film was made from collagen. Collagen is a critical element for youthful looking skin. Fuji took the science of film and applied it to skin care, a growing category.

4. What is our brand framework?

A branding framework provides the non-negotiable guidelines and guidelines that define the brand's relevant, differentiated promised experience. A brand framework is a catalyst for innovation. The framework creates the borderlines of the brand within which the brand promise is to be communicated and implemented. Within the framework of the parameters, innovation is not only permissible, it is expected. Creative freedom is encouraged. Company managers evaluate and activate all measures on behalf of the brand based on the brand framework.

Crowne Plaza Hotels have reinvigorated their business traveler heritage with a revamped branding framework. Every thought and action behind the Crowne Plaza brand was centered on the concept of increasing business productivity on the go. The new business-oriented room design from Crowne Plaza was born directly from the creative freedom within its brand framework.

5. Are we getting ideas from anyone, anywhere?

Good ideas don't care where they come from. Great innovative ideas don't care who they come from. There are no rules that insist that great ideas be the responsibility of the executives at headquarters. Creativity is not a department. Creativity is a cultural way of thinking. Creativity takes time; it takes energy; it takes enthusiasm. It's about passion for an idea. Creativity can arise in any region within the organization or among the stakeholders of the organization.

The original "I Love It" campaign for McDonald & # 39; s in 2003 wasn't from the world headquarters and global agency office in Chicago. It came from Heye & Partners in Unterhaching, Germany. It was the best idea from the entire list of McDonald & # 39; s advertising agencies around the world, including major U.S. creative partners. This approach to creativity is even more important today. Be open to relevant, creative ideas from anyone, anywhere.

Brand companies now have the opportunity to leverage expertise and creativity to stay relevant and differentiated for years to come. If demographics are fate, now is the time to make demographically driven decisions.

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Brand Strategy Insider is a service from The Blake Project: A strategic brand consultancy that specializes in brand research, brand strategy, brand growth and branding

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