In March 2022, the founder of the Russian brand GATE31 recorded an interview in which he shared his perspective on the company's operations during the crisis. The brand emphasized honesty: he confirmed that the business was undergoing difficult changes and explained how long the brand could maintain its current prices.
Strategy or Scenario? How to Build Marketing During a CrisisPeople are more likely to engage with a brand with which they have an emotional connection. Brands earn audience loyalty and trust by showing their humanity. For example, followers of GATE31's founder's interview received a warm response on social media: they thanked him for his openness and promised to support the brand during the crisis.
Strategy or Scenario? How to Build Marketing During a CrisisHowever
it's important not only to share relevant information with customers but also to receive their feedback. Listen to your audience: what they write on social media, how they react to other brands' activities, what opinions they express in the media—this will help you understand what they need most right now. Don't forget to conduct your own surveys. Find out what customers want from you specifically, what they like, and what needs improvement.
"Strategy is the ability to continuously improve."
It's important for managers to monitor market conditions, competitors' actions, and customer purchasing power by segment. Using this data, they can identify their niche segment and sources of growth. Study not only your own industry but also related ones: this will help you understand what's happening in neighboring markets and how other managers are responding to the crisis.
A marketing strategy is, first and foremost, a process of moving around the market: changing either the segment or the pricing policy. Typically, a company has three options for adjusting prices during a crisis: staying within the current price range, moving up, or moving down. If you plan to revise your pricing, a comprehensive market analysis will help you understand how much your audience and profits will decrease or increase.
The main function of a marketing strategy in a crisis is to maintain market share through corporate goals and positioning.
A company can grow through investments or by creating a new project in a different segment, that is, by changing its market strategy.
Sberbank and Mail.ru Group did just that when they acquired a 75.6% stake in the express grocery delivery service Samokat in 2020. At the time, consumers quickly adapted their shopping patterns due to the spread of COVID-19. At the time, acquiring a leading player in the delivery market was a promising asset. Now, the acquisition of the service can be considered a successful strategic move for Sberbank and Mail.ru Group. This is confirmed by a study by Data Insight: in August 2022, Samokat set a record for the number of orders delivered in the e-grocery market.
"If you have to stop advertising, your strategy is not working."
During a crisis, some companies reduce their activity almost completely, while others, on the contrary, actively invest in advertising. As a result, the former maintain their budgets but disappear from the public's attention, while the latter increase brand awareness and customer loyalty.
Companies are often forced to reconsider their business model in times of crisis: adjusting channels of interaction with customers, advertising production, and the amount of investment in it.
However, stopping or reducing advertising has long-term consequences that can be difficult for companies to recover from.
For example, Coca-Cola suspended advertising in 2020 due to the COVID-19 pandemic. Consequently, the company reduced marketing expenses by 30%. According to the brand's reports, Coca-Cola's net profit fell by 9%. Meanwhile, the company's main competitor, PepsiCo, adapted to the changes and increased marketing investments. The brand reduced the number of beverages it produced, focusing on breakfast cereals and potato chips. As a result, the company's sales increased by 7.9%.
Moreover, during challenging times, customers perceive advertising as a sign of stability. This way, brands demonstrate their strength and long-term commitment.
Think Long Term: Scenarios Instead of Strategy
Remember that the crisis won't last forever: sooner or namibia telemarketing database later, the situation will return to normal. However, to manage a crisis, a leader must effectively manage processes. Reacting quickly to a situation isn't management, as it always involves change. Management involves setting goals, maintaining focus on them, and achieving them, regardless of market conditions.
During crises, companies especially need long-term goals. However, the strategy for achieving them becomes more flexible, and management is built on Agile approaches. According to a 2022 study of Agile in Russia, small businesses that have practiced this method have positive opinions about it. For example, over 80% of respondents confirmed that their companies have begun to better manage changing priorities, and 60% have seen an overall increase in productivity.