consumer brand loyalty in a recession (final)
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TRANSCRIPT
Pulse Breakfast Series ‘09
Consumer Brand
Loyalty in a
Recession
The Economic Landscape
2008/09 Global Economic Scene“Consume
rs continue trading down across
spending opportuniti
es.”
“Regardless of categories,
consumers will adopt new mindsets, new behaviours, and
new habits during the year to come.”
“The outlook for the global economy
continues to remain bleak. IMF has
estimated that world economic growth will fall to 0.5% in 2009, which is the lowest
rate since World War II.”
“Consumers are making
tough choices
about the products
they purchase
and where, and they are
looking harder for
value.”
"The outlook for the national economy, the outlook for the local
economy relative to the national economy and the
outlook for local sales growth range from
moderately to deeply negative."
2009 Malaysian Economic SceneThe Malaysian economy
contracted at a slower rate of 3.9% in the second quarter of 2009 due mainly to higher public spending and positive growth in private consumption. Growth continued to be affected by weak external demand and private investment activity. All economic sectors registered improved performance with construction, services and agriculture registering positive growth, according to the Department of Statistics Malaysia.
The Survey
Methodology
ObjectiveThe survey aims to study consumers behaviors and opinions towards the current economic outlook in their respective countries.
How did we achieve this?7 countries were selected (Australia, China, Hong Kong, India, Malaysia, Singapore, Thailand) to participate, where 500 national representative random respondents were selected from Planet Pulse in this 15-minute survey.
Facts and Stats
State of Economy 2009
Which of the following do you think best describes the current state of the economy?
Which of the following describes what you think of the current state of the economy compared to 6
months ago?
Although most think that the current state of economy is neither strong nor weak, many find it better compared to 6 months ago
49%
Base = n500 National Rep Malaysia
Spending Habits
How has the state of the economy affected the way you have spent your money in the last 6
months?
More than 60% claimed they spent money more cautiously than before while almost half expect to continue spending cautiously in
the next 6 months
How does the current state of the economy affected the way you expect to spend money in
the next 6 months?
61%
Base = n500 National Rep Malaysia
Brand Loyalty
Based on the current economic situation, how loyal are you to your favourite brands in the following categories?
While many consumers are
cautiously spending their
money currently, most are still
expected to stick to their favourite brands of FMCG such as personal care products,
daily food items, and children’s milk powderBase = n500 National Rep Malaysia
Loyalty Drivers
What would you say is a real loyalty driver for you?
Value is main
loyalty driver
Base = n500 National Rep Malaysia
Brand Switching Factors
What would make you switch brands amongst the following categories?
Price is
THE facto
r!
Base = n500 National Rep Malaysia
Price Factor in a Recession
Most people are more price-sensitive now and would consider
switching products at a lower price.
The recession has also effected where people
shop.Base = n500 National Rep Malaysia
In today’s economy, would you like to see more or less advertising?
How important are advertisements about promotions and sales?
More advertising, please. Most find ads on sales and promotion important.
Advertising Needs
Base = n500 National Rep Malaysia
Are you attracted by tactical promotions and mega sales offered by retail outlets?
What form of advertising is most effective to you?
Advertising Platforms
Print, TV,
Online most
effective
Tactical promotio
ns are working
Base = n500 National Rep Malaysia
Which medium suits you best?
Media Preference
Online is the most preferred medium among respondents. A survey by Google South-East Asia
reveal that 59% of active online consumers cite search engines as a specific source for
researching a new product while 79% use the Internet
during the purchase process
Base = n500 National Rep Malaysia
Asia Economic Weather Map
Base = n500 National Rep Malaysia
Conclusion
1 CONTINUE TO INVEST IN
MARKETING Less clutter, louder voice
2ENGAGE WITH YOUR CORE
Strengthen relationships with yourCore audience
3
ADD AND DELIVER VALUEEnhance your proposition to
Sensitive shoppers
4RESEARCH AND INNOVATE
Risk being different
5
GO DIGITALReach and engage customers
With Media 2.0
6
BE TACTICALKeep you ears close to the ground
and be ready to react to changes swiftly
Base = n500 National Rep Malaysia
What’s Next…
Thank You!