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Consumer recession strategies – will these become post recession trends?
September 11th, 2009
TNS, the research giant now owned by WPP, has come out with a study that makes very interesting reading. The study indentifies six core recession strategies used by consumers. Will these become post-recession trends after the current downturn?
Firstly, not everyone is suffering in this recession. There is no universal response.
Secondly, consumers are driven by far more than rational needs.
We’ve all become used to so many brands offering us generic recession response: everyone is suffering so it makes sense to focus on price and product and offer us all a better deal. But is it working and is it good for the brand?
TNS have come up with six core strategies used by consumers:
1. Fight and Exploit – you’re looking for something extremely cheap that allows you to exploit the recession rather than fall victim to it. If you can beat the odds by taking advantage of a ‘50% off’ you feel you have got one over on the situation.
2. Compete and Win – you’re looking for enduring value. You are looking for quality of course, so it’s not about the deals but something that’s going to last over time.
3. Strategise and Plan – you want to make a smart choice and so take a long term focus; the initial cost may be lower but the longer-term value is higher.
4. Retreat and Defend – you have to see it as saving money; you like to feel the company is sacrificing something so even small discounts are OK; and you want your loyalty rewarded with discounts.
5. Collaborate and Accept – you’re not going to buy it just because it’s cheap; you’re happy to get a discount on something that really demonstrates its practical value.
6. Avoid and Indulge – you’re looking for something for nothing; it might be the chance to win something or just a fun experience; as long a s it gives you the opportunity to indulge.
The research found that individual consumers can embrace different strategies, embracing several responses across different categories. It’s possible to Strategise and Plan when it’s time to replace a car, perhaps being wary of ‘deals’. The same person might want to Avoid and Indulge when buying a mobile phone, opting for a price plan that allows then to call their ‘mates’ as often as they like, Yet with weekly food shopping the Collaborate and Accept strategy might emerge, with a tendency to make small cutbacks across the range.
Consumers adopting a Fight and Exploit approach will respond well to a ‘Rebel Brand’ enabling them to make the most out of a recession. Virgin has had a good recession because it’s a Rebel Brand, appealing to those who are prepared to take advantage of good deals.
Strong brands understand the language of archetypes. Finding and working with the right archetypes lets you connect emotionally with your customers and provides a powerful platform for brand building.