Six Guidelines For A Publish Virus Model Revitalization
When the economy starts after the corona virus, many brands have to be reactivated. Now plan to revitalize after the corona virus. According to the consulting firm McKinsey ("How marketing directors can both deal with the coronavirus crisis and plan for the future") "in a crisis it is natural to focus only on short-term business results and pursue a pure survival strategy. But that could mean to win the fight but to lose the war. "
In the short term, there are several ongoing measures necessary for brands.
Keep talking to your loyalists. You need the customers who love the brand. Before spending resources on acquiring new customers, you must first focus on the customers who have favored your brand in the past.
Keep communicating. When it gets dark, you can save resources, but while you are silent, another brand is breaking into your task. McKinsey data shows that these companies that survived the crisis "continued to communicate with customers during the downturn." The advertising age came to the same conclusion in the article: "History shows that marketers who continue to spend money during a downturn do much better."
Continue to generate new ideas and support innovations and renovations. Consultancy BCG's (Boston Consulting Group) analyzes show that "in recessions and downturns, 14% of companies are both historical and competitive because they invest in new growth areas."
Prepare yourself now for a future after the corona. Below are six rules for reviving the brand. If you leave this strategic thinking and planning to the last minute, you will lose both valuable time and your competitive advantage.
Rule 1. Realign the company
At the moment the company is concentrating on the here and now. After the virus, realign the company to the basic, common goals. Internal challenges come first. Employees want to know what's going on and what's going to happen to them. Employees don't mind refocusing, especially when the company is changing, in a downturn, or emerging from a crisis. However, employees expect to know which direction they are rowing and to which destination they are heading.
Luke Saunders, founder of Farmer & # 39; s Fridge, has fresh grocery vending machines several times a day in nearly 100 hospitals across the country ("smoked cheddar cobb salad, pesto pasta shells with minced spinach and mozzarella pearls, chipotle turkey sandwiches" and more) filled up We are already focusing on the future potential for contactless food offers. In an interview with Bloomberg, Mr. Saunders said that he and his team are currently thinking about what the world will look like in the next year or two and how Farmer & # 39; s Fresh can use his brand.
Rule 2. Restore brand relevance
Staying relevant is critical to a brand's health. A crisis like the corona virus turns relevance upside down. Relevance is an essential driver of the purchase intent. A brand is relevant when it is perceived in response to current customer needs and problems. Restoring relevance requires the allocation of resources for 1) a thorough knowledge of the current market, 2) needs-based, event-driven market segmentation and 3) a revival of the brand promise – major changes in consumer behavior can mean a serious review of the relevant differentiated advantages of the brand. The world will be different. What makes a brand relevant tomorrow is likely to change. There will likely be an increased focus on health and safety. People will feel more comfortable communicating and working in a virtual world. Business trips can decrease when virtual meetings become common.
Hal Lawton, CEO of Tractor Supply Co., told the Wall Street Journal that changing customer behavior is already changing their strategic plans. Tractor Supply customers use technologies (e-commerce, mobile and contactless payments) faster than previously thought, at least two to three years ahead of the company's expectations. Mr. Lawton says this is already changing the plans for the capabilities of future business from Tractor Supply Co.
Rule 3. Reinvent the brand experience
A brand is a promise of relevant and differentiated trustworthy experience. Reinventing the brand experience requires investment in 1) innovation and renovation; 2) marketing; 3) Extension of the Trustworthy Brand Value Equation of the brand. (A brand's trusted brand value equation is the mental calculation of what you get (functional, emotional, and social benefits) versus what you pay (the cost to the customer in terms of money, time, and effort) multiplied by trust .) 4) Ensure that the brand is perceived as fair value (fairness is more than just a price; fairness contains justice. Justice means that the benefit-cost equation is fair, reliable and fair.).
Restaurant chain executive vice president and chief brand officer Denny & # 39; s told Wall Street Journal's Nat Ives that Denny & # 39; s hopes to launch house meal kits soon, an additional change from take-away meals currently sold . The brand also sells portions of favorite family-sized dishes such as the Grand Slam breakfast. Family nutrition at home is a new focus of the brand.
Rule 4. Strengthen a culture of results
A results culture measures progress based on measurable results that lead to high-quality sales growth. A culture of results is based on measurable milestones and rewarding people based on their performance, with progress being tracked in a balanced brand business scorecard. Manage what management measures, recognizes and rewards. A balanced brand business scorecard assesses whether the right people are getting the right results in the right way to achieve the right goals.
Boeing's Board of Director has been criticized for promising his new CEO a $ 7 million bonus if he got the 737 Max flying this year. Although the outcome would be excellent for Boeing, the reward was felt to be corrupt because it could compromise security. Rewards must match all results across the company.
Rule 5. Restore brand confidence
Trust is a valuable asset for institutions and brands. Unfortunately, trust in institutions – governments, universities, religions and companies – as well as in experts and celebrities continues to decline. Trust building as a source of organizational prosperity – trust capital – is an important driver for sustainable, profitable growth. By creating trust capital, a company or brand can build a trust reserve that helps in crises of brand or company character. An escrow reserve of trust capital builds strong relationships over time. Brands that focused on building trust and generating trust capital before the corona virus have a head start in revitalizing brands after the crisis.
According to Barron & # 39; s, Dow Jones' financial week, consumers are looking for "… peers and businesses to provide leadership and visible solutions," as opposed to after 9/11, when the government resolved the company in the role of a trusted leader hatched Transport Security Administration (TSA). This is an amazing opportunity for brands.
Rule 6. Realize organizational alignment
Alignment means that everyone works together towards the same goal, the same view of the direction of the brand, the same brand goals, the same common definitions, the same priorities and the same common metrics. Aligning the company requires a company-wide commitment to a common goal and strategy to achieve that goal.
Joey Levin, CEO of IAC / InterActiveCorp (Angie's List, Match Group including Match, Tinder and OK Cupid, Vimeo), told the Wall Street Journal that his small new company NurseFly was overwhelmed. NurseFly compares nurses looking for work with those hired for hospitals or other health care facilities. Because some of IAC's other businesses were slow, the lead recruiter for IAC arranged all other IAC recruiters to: "Let's build these NurseFly jobs as soon as possible." Mr. Levin continued: "Overnight, NurseFly had as many recruiters as the number of people trying to fill jobs at NurseFly."
A powerful target requires the exchange of information across the company, in different regions and functions. BCG reports that the idea of sharing information is one way to generate a “collective imagination” that is essential for innovation and renovation. The LEGO Group chairman believes that this was the key to LEGO's creativity.
Most agree that the world will change after the corona virus. This means that branded companies should currently strategically plan their revitalizations to meet and satisfy reorganized customer needs, habits and new customer problems. The six rules for brand revival are a helpful guide for companies who are now planning to have a platform on which they can be successful while coping with a new world order for brand business.
Contribution to Branding Strategy Insider by: Larry Light, CEO of Arcature
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