As 2009 draws to a close and marketers prepare for 2010, the unprecedented changes that defined the past year must be acknowledged, analyzed and understood to survive and thrive in a radically transformed marketplace. The extraordinary values recalibration that consumers are experiencing as a result of the near collapse of the global economy is expected to define purchasing priorities for a generation. The brand landscape has also been transformed. Icons disappeared, stalwarts teetered on the brink and new heroes emerged. In the brave new marketplace born out of the 'Great Recession', 64% of consumers say they will never spend as freely as they did before the recession, and 62% say they do not miss many of the things they gave up because of the recession.1 Given these market forces and trends, brands have two choices - distinction or extinction. Only brands that achieve true distinction and "non-negotiable" status will survive this protracted period of economic challenges. Thus, it is more important than ever for marketers to fully comprehend and effectively activate around the evolving DNA of brand distinction.
THE DNA OF BRAND
DISTINCTION 2010
Transition, Transformation and Activism in the New Consumer EconomyBy:Allyson HugleyDirector of Insight Creation, MS<HE DNA OF BRAND DISTINCTION 2010:
Transition, Transformation and Activism in the New Consumer EconomyAs 2009 draws to a close and marketers prepare for 2010, the unprecedented changes that defined the past year must be acknowledged, analyzed and understood to survive and thrive in a radically transformed marketplace. The extraordinary values recalibration that consumers are experiencing as a result of the near collapse of the global economy is expected to define purchasing priorities for a generation. The brand landscape has also been transformed. Icons disappeared, stalwarts teetered on the brink and new heroes emerged. In the brave new marketplace born out of the 'Great Recession', 64% of consumers say they will never spend as freely as they did before the recession, and 62% say they 1do not miss many of the things they gave up because of the recession. Given these market forces and trends, brands have two choices - distinction or extinction. Only brands that achieve true distinction and "non-negotiable" status will survive this protracted period of economic challenges. Thus, it is more important than ever for marketers to fully comprehend and effectively activate around the evolving DNA of brand distinction.
To capitalize on the shifting DNA of brand distinction in 2010, marketers must come to terms with the fundamental truths of the times. First, 2010 may look the same or worse than 2009 as U.S. consumers continue to face rising unemployment. While many consumers believe the worst of the recession in terms of steep job losses and declining asset values is over, most do not see the economy as in recovery. Forty-five percent of consumers think it will take three to five years for the 2economic turmoil to be over.
Second, the DNA of distinction will look very different from what it was just a year or two ago. Not only have consumers come to expect brands at all price points to deliver durability, safety, and reliability, but the latest generation of brand differentiators - empathy, environment, CSR - have also devolved into "table stakes" during this most recent recessionary period. Even style and design no longer qualify as differentiating traits for brands with 74% of consumers expecting to find products with flair or style 3even when they pay a lower price. While brands that do not offer core benefits to consumers are fast tracking toward extinction, brands that only offer core, "table stakes," benefits are apt to flounder and die a slow death drowned in a sea of sameness.
Third, consumers need active and ongoing engagement with brands - especially at a time when more passive engagement methods, such as advertising, are being filtered out. According to GfK Roper Reports Worldwide, 77 percent of North American consumers say they avoid advertising at least sometimes. Brands must rally consumers around like-minded core values to create consumer activism and loyalty. This is why brands that 'friend' consumers will be key in 2010, because it goes beyond engagement or even co-creation to a deeper level of trust, predicated on sustained conversation and listening and an openness to altering a brand's DNA based on consumer counsel and advice.
1 2 3 "The Yankelovich MONITOR 2009/2010" | "The Yankelovich MONITOR 2009/2010" | "The Yankelovich MONITOR 2009/2010"Distinction Is PossibleYet, brands that fit consumers' lifestyles can continue to command a premium place of distinction even in one of the most challenging economic environments since the Great Depression. MS&L's 2009 Brand Distinction Survey found 66 percent of consumers agreeing that no matter what happens in the economy, there will always be brands that they are willing to pay more for. After closely watching the evolution of the brand landscape and consumer preferences over the past year, we believe at MS&L that a new paradigm for brand distinction is emerging and that the DNA of distinction in 2010 will have five defining characteristics:
? Navigation? Alchemy? Elasticity? Portability? BBF Status
NavigationAfter a year of falling economic indicators and rising anxiety, consumers are gravitating to brands that are able to help them arrive at a better physical or emotional place. Half (52%) of consumers are 4feeling more exposed to ... [download for more]
