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Ogilvy Making Brands Matter in Turbulent Times Beyond COVID 19 Version 2.0
Ogilvy Making Brands Matter in Turbulent Times Beyond COVID 19 Version 2.0
UPDATED
1 April 2020
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While the magnitude of this crisis is unprecedented, there are still valuable learnings from past events like SARS and the 2008
economic crisis that are applicable. This report has been updated with recent learnings from China and around the world on brands
that have dealt sensitively and positively with this crisis, and how consumer behaviour has changed and will continue to change.
China is now slowly getting back to work and whilst most of our efforts are around immediate recovery
and support, brands will need to be prepared to swiftly shift from recovery to rebound.
In every crisis there will be winners and losers. Some companies will falter, some will prosper.
We hope this paper will help readers to better navigate the now, the rebound and beyond.
To everyone, stay safe, stay home and make someone smile today!
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危机
Wēi Jī
There was hope initially that unprecedented connectivity and Even before the outbreak, we
the COVID-19 outbreak interdependence, bringing new entered 2020 and the Year of Brands that get it right are able to capture
would remain contained in challenges, and new the Rat anticipating growth up to 3x more market share through a
China. However, the opportunities too. We know pressures. COVID-19 is making downturn, and rebound faster and stronger
aggressive spread globally stronger and more adaptable an agile response more crucial
when good times return, for lasting
means that the EIU believe brands are better primed to than ever.
survive and strive during and
competitive gains.
that around half of the world
population could be affected. after a crisis. Ogilvy has created this
document to leverage the
The magnitude of the Brands need to be considering lessons of the past and help
economic losses will depend implications, not only on the prepare marketers for smart
on how the outbreak evolves, health of their business but on
and decisive action, at every
although there are now signs that of their relationships with all stage of the unfolding situation.
of China emerging from their audiences and
the slump. stakeholders.
Much
is different
this time
Web Supremacy:
China internet users top combined
population of Japan, Russia, Mexico and U.S.
CHINA IS THE
BELLWETHER OF
GLOBAL GROWTH
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5 Lessons
Despite the
differences, 1 2 3 4 5
5 timeless &
timely lessons ‘BLACK SWAN’
EVENTS CAN
THERE
WILL BE
BUT IT WILL BE
A DIFFERENT
THE KEY IS
MANAGING ALL
BE
PREPARED
from the past BREAK A BRAND AN AFTER PLACE TIME HORIZONS Fortune favours
– OR MAKE IT Marketers who manage
are relevant ‘Black Swan’ events
We don’t yet
know when, but
Marked by lasting
shifts, both attitudinal to turn crisis into
the prepared, agile
and decisive –
today: like SARS, the 2008
GFC or COVID-19
when it happens,
it will happen fast,
and behavioural,
creating new needs,
opportunity are those
who consider and
true in good times,
even more so in
are moments-of- releasing pent-up new priorities and address impacts testing ones.
truth for brands (and demand. new competitive across the short,
marketers) of their opportunities. mid and long term.
purpose, values,
commitments; but
equally of their agility,
creativity and spirit.
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Four scenarios for COVID-19
HOW DO WE KEEP OUR How do we identify HOW CAN WE MOVE How do we innovate
FROM A PHYSICAL TO A
RELATIONSHIP WITH new occasions and
VIRTUAL CONFERENCE/
to find new ways to
OUR CONSUMERS GIVEN behaviours to drive
THE ABSENCE OF A relevance and trial? MEETING/PRODUCT deliver solutions and
PHYSICAL STORE? LAUNCH EFFECTIVELY services in line with the
AND SMARTLY?
new reality and new
behaviours?
HOW DO WE EXTEND
How do we promote our BRAND PROPOSITIONS
business without being INTO SERVICES AND How do we shift from
perceived as taking CONTENT TO KEEP offline-reliance to online
advantage of AUDIENCES INFORMED and delivery-based
the situation? AND CONNECTED? ecosystems?
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CEO LEARNINGS THROUGH COVID-19:
FLEXIBILITY, AGILITY AND TRANSFORMATION
Source: Nielsen China, Nielsen CEO survey on COVID-19 in Mar 2020 (n=20)
Q9. What is your Biggest Concern over the next 12 months, and your Biggest Learning over the past 2 months?
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How to make your brand matter
across all time horizons
→
In times of crisis even more than in MATTER How do we get on the front foot in a
‘normal’ times, a key challenge is to LONG TERM changed landscape?
reconcile the distinct dynamics and (New Normal) * transform & be fit-for-purpose
requirements of different time
horizons - winning in the now, while
preparing for the medium-term, and
→
transforming for longer-term growth in MATTER How do we make up for lost ground?
changing times. MEDIUM TERM
* leverage shifts & drive momentum
Ogilvy’s OS helps marketers manage (Recovery phase) and competitive edge
their brand as a holistic and agile
system – where every action, every
experience, builds the brand and
→
business in interconnected ways. MATTER
How should we respond in
RIGHT NOW
the unfolding situation?
In times of crisis, the OS helps
marketers prioritise actions to take in
(Acute * be agile & optimise
the heat of the outbreak, while looking outbreak phase)
ahead to ensure their brands are
primed to take advantage of the
recovery and ‘new normal’ beyond.
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Brand actions
to matter right now: ACTIVATE PURPOSE & OPTIMISE FUNNEL MIX
OF OUTBREAK * Maintain saliency * Beyond customers * Do more, say less. * Make every $ count:
but don't be /consumers comms, * Activate brand leverage data analytics for
opportunistic. carry out stakeholder purpose (or make sure full funnel optimisation & fix
* Re-allocate spend mapping to consider the you've identified a weak links.
behind most topically- needs and concerns of genuinely meaningful * Optimise drive-to-web,
relevant segments and all stakeholders, internal one) to support hygiene drive-to-commerce;
SKUs. + external, individual + and virus containment make online visibility +
institutional. efforts, and keep life transaction easier.
* Optimise channel (and livelihoods) going.
mix for shifts in media * Leverage social * Review channel mix to
channels for open & Add ‘brand-aligned’
consumption. secure reach vs shifts in
real-time response and value to people, the
media consumption.
* Rise above communication. community, and broader
Put bets on surging
self-serving and nation.
* Identify opportunities channels.
transactional - tailor to create ‘shared value’ * Not every brand
messaging and offers in needs to turn * Identify opportunities
programs, mobilising and and expand database.
real-time, to respond to connecting all parties for ‘caregiver’: support
shifting topical needs common benefit. across all needs and
and emotions. emotional need-states,
in line with brand benefit
* Sustain broad reach
and persona.
to facilitate new users
exposure and trial.
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ADVERTISING INVESTMENT REDUCES RISK
354 BRANDS GROUPED ON THE BASIS OF RELATIVE ADSPEND
Long video
ADJUST CHANNELS AND
CONTENT MIX FOR
Short video
Sleep
people are now.
SHIFTS.
Linear TV
Support what
they’re doing now.
Mobile/online games
Competitors Partnerships
Customers Inclusion
Unilever globally Baidu upgraded it’s Ogilvy is one of 35 Nike USA advocates for
committed to provide free real-time ‘epidemic agencies in Spain the need for social
soap, sanitiser, bleach and area’ map in more than working with five industry distancing in the fight
food to the value of €100 200 cities, helping bodies to use the against COVID-19.
million. Around half of this will protect public health collective power of
go to the COVID-19 Action and safety. The app advertising to fight the
Platform of the World pops up a geotagged spread of COVID-19.
Economic Forum. “epidemic reminder”.
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Brand actions
to matter right now:
TO SUPPORT
PEOPLE’S
HEALTH AND
SAFETY
Employee stories in critical CSR - ‘Cheer for Wuhan’ cash Delivery - Encourage and Support frontline Safety - Safe dining tips
areas and food donations support delivery staff caregivers and contactless delivery
YUM China and its KFC brand stood out during the crisis. With over 9,000 stores (of which
more than 30% were shut) and 450,000 employees, Yum China navigated this crisis in a skilful
and calm manner. No staff were laid off, a massive shift into delivery was managed, and even
innovation happened during this time, with KFC offering raw meals for home preparation and
contact-less delivery services. KFC contributed to the relief efforts and refocused its
communications around employees and food safety.
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Brand actions
to matter right now:
TO SUPPORT
PARTNERS,
SMALL
BUSINESSES &
COMMUNITIES
Zoom US offered free Vans will donate Alibaba China HSBC announced a
videoconferencing proceeds from each pair announced 20 measures support package to help
platform to K12 schools of custom designed to help businesses and their customers;
in many countries footwear to their small merchants in China, which including mortgage
globally as well as business partners in this included providing financial payment holidays,
providing extra features time of need. support, flexible job overdrafts and pledged
for on-line learning. opportunities and subsidising £5 billion to help
delivery personnel. struggling businesses.
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Brand actions
to matter right now:
NOT ALWAYS
ABOUT PUBLIC
SERVICE,
BRANDS CAN
ALSO PROVIDE
POSITIVITY AND
UPLIFT IKEA Taiwan leveraged Chipotle UK created E-commerce giant
its brand promise of ‘Chipotle Together’ JD.com is collaborating
‘bringing joy into the lunchtime hangouts on with a series of alcohol
home’ and creative Zoom featuring celebrity brands to create a virtual
cheeky persona, to bring guests as a way of coping nightclub experience for
light relief to all those with social distancing. self-isolators.
forced to spend
Valentine’s day
quarantined at home.
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Brand actions
to matter right now:
NOT ALWAYS
ABOUT PUBLIC
SERVICE,
BRANDS CAN
ALSO PROVIDE
POSITIVITY AND
UPLIFT
TikTok launched a new Time Out have temporarily Bottega Veneta launches a
entertainment and information changed their name to Time In virtual residency to provide a
initiative to help lighten the to remain relevant during social much-needed escape. The
mood amid lockdowns. distancing. They have also multi-platform concept will
#HappyAtHome saw well- updated their website with celebrate creativity in all its
known entertainers share live- articles that offer inspiration for forms, with live music
streams on the platform. things to do at home. performances and movie nights.
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Brand actions
to matter right now:
AS A FORCE
FOR GOOD;
CHANGING
FOCUS
Ford USA is pulling all ads Coca-Cola Philippines are Anheuser-Busch InBev is
promoting its vehicles with halting all commercial redirecting $5 million that it
a new campaign describing advertising and redeploying normally spends on sports
their response to COVID- funds to provision of and entertainment marketing
19, including giving Ford protective equipment, to the American Red Cross to
Credit customers some delivery of food packs to the support the fight against the
payment relief. most vulnerable families, and pandemic. The donation
support for affected small comes as the sports world
retailers. remains shut down.
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Brand actions to IN THE RECOVERY PHASE, MAKE UP FOR LOST GROUND
matter medium term: BY PRIMING MOMENTUM & LEVERAGING SHIFTS
Source: Hillier, Tony: Successful Competitive Strategies Source: Binet, Les and Field, Peter: Marketing In The Era Of Accountability,
For Recession And Recovery) 2007 Base: 880 successful marketing campaigns, 1979 — 2006
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Brand actions to matter medium term:
CATEGORIES ARE BEING AFFECTED
– AND WILL REBOUND, DIFFERENTLY
Source: https://us.kantar.com/business/brands/2020/survey-measures-coronavirus-outbreak’s-impact-on-china’s-consumption/
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Brand actions to matter medium term:
CATEGORY FIRST-TIMERS
ARE AN OPPORTUNITY
TO CONVERT INTO
REGULAR USERS
PERCENTAGE OF
FIRST-TIMERS
Online medical
This outbreak has 84% tried at least one consultancy Brands can look for
also nudged/forced new service for the Online opportunities for
many consumers to first time, the highest education disproportionate share
try something being online medical Work from home
gains by activating
they’ve never used consultancy (34%) software/app their loyal users'
before, creating an and online education endorsements, and
Paying for digital
opportunity for (33%), followed by entertainment service competitively-
many new sectors. working from home designed promotions
Livestream app
software/app (29%) – eg bulk buying
and paying for digital Social e-commerce/ incentives that secure
entertainment service community group purchase franchise through the
(26%). Buying home event and beyond.
fitness equipment
Online banking
Source: https://us.kantar.com/business/brands/2020/survey-
measures-coronavirus-outbreak’s-impact-on-china’s-consumption/
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Brand actions to
matter medium term:
NEW BUSINESS AND
SERVICE MODELS BORN
OUT OF NECESSITY
DURING THE CRISIS
MAY PROVIDE NEW
OPPORTUNITIES FOR
DISRUPTION AND Faced with the prospect of
empty cinemas, Huanxi Media
Chinese real estate company Sunac
(Rongchuang) went live on an online
PHASE * Re-evaluate * Turn crisis-time * Re-evaluate * Implement crisis * Revisit and prioritise
brand positioning, ‘CSR’ into ongoing Customer Experience preparedness plans, digital transformation
proposition and purposeful brand for greater incl. risk-assessment goals, strategy and
portfolio priorities engagement - personalised value audit, crisis response roadmap.
for accelerated across full value and responsiveness. plan and training,
growth in new chain, and across all reputation repair * Accelerate shift to
landscape / stakeholders. * Accelerate plans. mobile and e-com-
segments. employee experience first business models.
* Innovate to create transformation for * Update
* Identify shared value and drive greater personalised stakeholder * Scale digital channels
opportunities for impact across locally- engagement, and influencer and innovation that
first-mover edge, and category- productivity and ecosystem – proved successful
serving future relevant SDGs. flexibility. focus on top 100 during the crisis: social
needs by creating stakeholders. commerce, live
or modifying a * Leverage data and streaming, delivery,
product / service / Martech to enable * Revisit Public online customer service,
experience. personalisation-at- Affairs strategy and agile production,
scale. activation plans. martech.
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BRANDS SHOULD
ADAPT TO NEW
ROLES AROUND
CONSUMER NEEDS
PRECIPITATED BY
COVID-19
Smart Shopping| Healthier Innovation | Packaging | Unmanned | Intelligent | Pricing | Brand Building |
Lifestyle Emerging Need Gaps Experiential | Digital Occasions Building
Source: Nielsen China, The New Reality of 2020: Covid-19’s Impact on China Retail and Consumer Landscape
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Summary
When we come through this, the world will be a different place;
decide what sort of company you want to be.
There will be pain and loss, neglected them in the mad Brands will matter more in the company withstand testing
but the COVID-19 crisis will dash to embrace digital, but world COVID-19 leaves times.
eventually be behind us. The now we must return our behind, but the base of a
world it leaves behind will be focus to long-term brand better, more resilient brand Brands will need to find new
permanently changed. We health and worship less at needs to be laid now, amidst reserves of agility, creativity,
will spend less time in the air the altar of short-term the uncertainty of the crisis. and resolve. Those that do will
and more online. Work will be metrics. This crisis will Brands do that by building shape the way consumers view
less a place and more a state accelerate digital trust by acting, visibly and them in the midst of the crisis
of mind, and the minds we transformation, burning the decisively, with an essential and in the new world that
shape to live in this new world laggards and lighting the and authentic purpose. follows, and emerge from these
will be educated differently. way for the leaders. We will uncertain times with a sharp
And we will have adopted yet cross the remaining No one can plan for the exact competitive edge.
more technology. distance to full digital nature of a crisis such as this,
transformation faster and but a tightly-woven braid of
Business will change too. with a greater strategic brand purpose, value, and
Brands, especially. We have sense. commitment can help a
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Actions for Now
and the Future:
TOP TEN
CHECKLIST 1 6
Don’t wait for recovery; Maximise
adapt to changes and the value and power
focus investment on of existing customers.
what is profitable now.
3 8
Disruption provides Have a long-term brand/
opportunity; revisit brand portfolio plan centered on
value and differentiation. changed consumer behaviour.
4 9
Think outside your Redesign/optimise your
physical brand experience. go to market plan: consider
eCommerce acceleration product mix, geography,
plan: product mix, new sales channels and
channels, data systems. customer segment focus.
5 10
Identify new growth Be ready for the After.
opportunities: new occasions, Agility is a must.
new services.
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Making brands matter in turbulent times:
Natalie Lyall
Head of Marketing, Asia
natalie.lyall@ogilvy.com
Benoit Wiesser
Chief Strategy Officer, Asia
benoit.wiesser@ogilvy.com
Scott Kronick
Chief Executive, Public Relations
& Influence, Asia
scott.kronick@ogilvy.com
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Appendix
Sources/links: MARKET SHARE CHANGE IN FIRST TWO YEARS OF RECOVERY FROM INCREASED MARKETING SPEND IN RECESSION
Source: Hillier, Tony: Successful Competitive Strategies for Recession and Recovery
NATIONAL GDP
Source: World Bank
COVID COMPENDIUM FOR GLOBAL MARKETERS: WHAT ACTIONS ARE BRANDS TAKING AROUND THE WORLD?
Source: World Federation of Advertisers