In times of inflation and crisis, right decisions can be brands’ best ally. Rebold , a marketing and communications company of the ISPD group. Therefore, has published the study How can brands combat inflation and future recessions? , which analyzes people’s behavior and reveals the key data to design marketing strategies in the current socioeconomic context, marked by rising prices, uncertainty and fear of an approaching recession. Based on in-depth research into how brands have acted in similar situations in the past, this report provides insights so that companies can act quickly and ride the waves of panic without sinking. Together they have discussed the current market situation, the changes they foresee at the consumption level and the strategies they are developing to find ways to connect with people.
What can brands do in a recession context
Faced with this situation of inflation and uncertainty. Therefore, brands must rethink their value proposition and find a way not to lose industry email list presence in the market , according to Rebold. In situations of previous economic slowdown. The search for quick results is often prioritized. Which in many cases means reducing advertising investment. Therefore, highlights that “several studies confirm that when advertising is cut. People lose connection with the brand, which weakens its perception and impacts market share. Therefore, the background of the pandemic shows, for example. How in 2020 Coca-Cola reduced its advertising investment and its revenue fell by 11% . PepsiCo maintained it and increased its sales by 4.8%.
Advertising investment key to not losing sales
According to the report, it is essential to take into account the actions of competitors . The data shows that, if a brand decides to TWD Directory reduce or eliminate its spending and its competition doubles its investment. It risks losing an average of 15% of its business. Therefore, eduardo vázquez states that “if we want to have greater chances of success we have to look far away. So during a potential recession we must overcome the short-term temptation and prioritize long-term thinking to safeguard the future of the brand. Therefore, the study concludes that, in times of economic uncertainty or inflation, brands must maintain or increase their advertising investment taking into account these keys: put people at the center.