Elevator Promotional Marketing is delighted to be sponsoring the 2009 Ulster Grocer Marketing Awards. We all know this is going to be a tough year commercially and everyone involved in Northern Ireland’s grocery business will be challenged in a variety of ways, as will their consumers.

But despite the fact that the consumer is going to be under financial pressure, the truth is they will still eat and drink, they will still use toiletries, they will still clean their homes. But they are going to think a little harder before they make their purchase, so the successful brands are going to be those that work a little harder to persuade the consumer to choose them over their competitors.

Though the inclination may be to cut marketing spends, evidence suggests that those brands that hold their nerve and continue to invest in marketing may well gain an advantage over their rivals. But the type of marketing they invest in may shift more from above the line to below the line and move more towards lower cost, more response-driven tactics.

COME OUT STRONGER

In-store promotions may, for example, become a more prominent part of the mix this year. P&G’s Chief Executive AG Lafley noted that “in a more recessionary type of environment, more decisions are made in the store and we have to be competitive in the store”.

Another study (by Paul Dyson for WARC) has suggested that brands which maintain their budgets during a recession come out stronger and with bigger gains than those which have cut expenditure. In fact the study also shows that a brand that has its budgets cut by 50 per cent for a year can then take two years to recover its brand share.

And this, of course assumes, that the lost consumers can be won back easily. Your consumers have a relationship with your brand. Stop talking to them and they will notice and feel neglected. Conversely, they will appreciate you continuing to talk to them at this difficult time, particularly if you are able to give them more – perhaps a reward for their loyalty, perhaps a chance to win a treat they could otherwise not afford, perhaps an immediate incentive to purchase. And one of the great strengths of promotional marketing is that it can add value rather than going down the road of discounting – a downward spiral that erodes profits and makes it very difficult to restore profitable price points.

INFLUENCING PURCHASERS

And sales promotion is truly ‘media neutral’. It’s all about influencing purchasers with a relevant and motivating proposition, but that proposition can be carried via any medium available – radio, TV, press, direct mail, door to door, field marketing, on–pack, internet, email, in-store POS, third party and so on.

Price reductions will always have a part to play in a brand’s marketing plans, but added value promotions may work better in the longer term – properly conceived, designed and executed, they can increase sales, build loyalty and protect a brand’s price point.

A recession is no reason to stop spending, it’s just a challenge to be even more creative and more imaginative with the spend you do have. Whatever your marketing plans for 2009, keep communicating with your consumers and make sure you give them a compelling reason to buy your brands.

The Ulster Grocer Marketing Awards are a wonderful showcase for the creativity, innovation and effectiveness of Northern Ireland’s top brands and the people and organisations behind them. I would like to wish all the entrants in these Awards the very best of luck and look forward to joining you all for a great night on Friday 24th April.

This is only part of a full article. For full access you can SUBSCRIBE TO ULSTER GROCER MAGAZINE

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