COVID-19 RECOVERY PLANNING GUIDING PRINCIPLE #3

COVID-19 RECOVERY PLANNING GUIDING PRINCIPLE #3

COVID-19 RECOVERY PLANNING GUIDING PRINCIPLE #3

Revisit the 4P’s

Going back to basics - revisiting the 4P’s

COVID-19 has forced many brands to rethink and reassess…and ask themselves:

If we were to start again, what would we do differently? “

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Taking the time to reset We are only now starting to really understand how this crisis has impacted the economy and what the recovery is going to look like. However, while different sectors have been impacted differently - with some companies benefiting from the effects of the pandemic - everyone has had to take stock and re-evaluate their priorities .

This should include revisiting the 4P’s : 1. Product

2. Place 3. Price 4. Promotion

Perfecting your marketing mix

Using the 4P’s requires a careful analysis:

Product refers to the physical goods or the intangible services that you offer, but there’s more to it than that. It’s also about the experience that users and customers have with your product. Place refers to any physical location where your customer can access your products or services. Price refers to what is being sold. No matter what the market conditions are, the price often depends on the perceived value to the customer. Promotion refers to all marketing and includes what it is you want to communicate, who you want to communicate it to, how are you planning to reach your target audience, and how often you want to do it.

1. Product (and solution)

It is important to know who your audience is and what they care about.

• Which features and benefits of your products or services are more or less valuable to consumers as they make deliberate choices during and after this crisis? • Has the disruption caused by the pandemic permanently caused people to change what they need? • How can you regain any ground lost during the last few months?

• What attracts people to your products or services? • How should it be positioned in the marketplace? • Who are your main competitors and how do they compare?

Making decisions during and after a crisis may be difficult. It takes research and careful analysis to determine which direction you need to go in. However, decision fatigue can slow your operations down further and be detrimental to your business.

#Examples

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Kuoni were quick to identify staycations as an immediate trend and added to their portfolio accordingly.

Saga were amongst the first to cover COVID-19 in their insurance, giving customers the confidence to book.

Quirky Mr Fogg’s House of Botanicals are introducing bee-keeper outfits to keep people safe.

2. Place (and access)

Ensure all contact with your customers is seamless. Focus on giving people what they want, when they want it. Don’t give people a reason not to buy.

• Where do you need to be now in order to gain interest from buyers? • Where do your customers look to buy your product or service? • What distribution channels do you now need to pursue? • Social media usage and online shopping have increased during the pandemic. Will consumers continue to use social media and online shopping as a primary tool for consumption? • What do your competitors do, and how can you learn from them and/or differentiate?

#Examples

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In the last four months, the number of restaurants added to the Uber Eats platform has doubled as smaller independent venues have maximised the opportunity to drive sales via a distribution channel that has seen exponential growth whilst consumers have remained in their homes.

Whilst St Patrick’s Day is synonymous with Guinness, the brand recognised the day would need to be different this year. They responded with a message of resilience and assurance. By piecing together existing footage, Guinness shared that their own brand had endured the test of time by ‘sticking together.’

Pizza Pilgrims’ ‘frying pan pizza kit’ is one example of a brand flexing their distribution in the current situation.

3. Price (and value)

There are several pricing strategies - bundle, subscription, competitive, economy, discount and psychological pricing.

• What is your value proposition? • Are there established price points? • Are your customers now more price sensitive? How much would your target customer be willing to pay? • Are your consumers now more concerned with the added benefits and efficiency of higher-end products, or are they more cautious when it comes to spending? • How can you support your customers financially? • How much do your competitors charge? Have they changed their pricing models?What initiatives are they introducing?

#Examples

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Tesco has introduced an ‘everyday low pricing’ promise, reducing its reliance on promotions but ensuring profitability by negotiating with suppliers.

H&M saw an 11% increase in conversions since offering Klarna as an online payment option, with 50% of mobile shoppers choosing to pay this way.

Malaysia Airlines have created new economy fare options. Each option – Economy Lite, Economy Basic and Economy Flex – provides different benefits regarding baggage allowance, options for rebooking, seat selection and priority services.

4. Promotion (and education)

It is important to consider where your consumers are in the buyer journey before you start new promotions. Your marketing messages need to trigger action, reinforce brand loyalty or repeat purchases. • Are you communicating the positive changes you are making? Safety, health and wellness are now key concerns. People want reassurances that these are front of mind. • You need to let people know what your products and services are, what they offer and why they are worth buying. • Where and when can you get your marketing messages across to your target audience? • Are you showcasing what makes your business different? Is it a lower price? Higher quality? Faster service? More flexibility? • How are your competitors marketing their products and services? And how does that influence your choice of activity?

#Examples

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The HEINZ press ad scored highly for memorability and favourability by clearly communicating what it is doing to help, rather than blending in with the ads about togetherness.

Sentosa Island in Singapore hacked increasingly popular ‘Animal Crossing’ to gamify their advertising activity and stand out during the pandemic.

Luxury tour operator Carrier created marketing posters highlighting the benefits of booking through its partners. The messages focus on trust, personalised service, the benefits of shopping locally and booking with protection and flexibility.

The post-pandemic world will likely continue to hold uncertainties for consumers and their behaviour may adjust daily. Ensure that your marketing adapts to those changes. Update your offers to make sure they are socially responsible and reflect the safety measures, trends and lifestyle changes associated with COVID-19. “ ” Ensure that your messaging is flexible, so you don’t have to continuously review them every time new information is available.

Key takeaways

Product

Place

Price

Promotion

Don’t stop interacting with customers; address the challenges they are facing and keep their trust while maintaining your brand’s authenticity. Continue communicating your brand story through credible sources, social media, your website, and more.

Turn the enforced changes into a benefit for customers to make their experience better. Also consider future opportunities to expand your range or co-brand products.

Remove all friction for the consumer. Revise your

Investing in your brand should protect the perceived value of your product to avoid heavy discounting. Where possible provide flexible payment options to help customers.

website to make it seamless and offer

additional help where possible.

Communicate proactively with partners to help them represent your business as well as possible.

Marketing brilliantly joined-up