During the panfemia, the brands played simultaneously on two tables: that of survival and that of the engagement of their customers
by Philip Kotler
(REUTERS)
During the panfemia, the brands played simultaneously on two tables: that of survival and that of the engagement of their customers
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In the past, humanity has already experienced the experience of pandemics, but the current one could be the first to request a mass stop of the activity of all productive sectors, together with the adoption of lockdown policies until the end of the crisis . How will consumers and businesses respond to the new limitations and prescriptions induced by coronavirus?
Consumer responses In the beginning, when consumers learned about the pandemic nature of the virus and the obligation to stay at home, many ran to stock up and even to grab everyday food, toilet paper, cleaning products. , masks, canned foods and other frequently used consumer goods. The wave of requests for these essential items eventually came to an end. The demand for some commodities has remained strong, such as that of hygiene products, pharmaceutical products and food products such as cereals, milk, cheese, meat and fish. The demand for some consumer goods – such as that of online entertainment and communication, which serve to dispel boredom and keep in touch with family and friends – has increased significantly.
There has been a sharp drop in sales in various categories of primary importance, in particular in those of travel, shopping, transport, catering, entertainment outside the home, use by cultural organizations (museums and musical performances), health products and services and beauty, clothing and high-priced goods. In the consumer goods category, retail sales in physical outlets suffered the hardest hit. People avoided shopping in stores and crowds, and switched to online shopping. They placed orders at companies that ship the items directly to their homes or apartments. In the case of groceries, some outlets have offered “instacart” services: the shop assistants collect the items relating to a single order and deliver them, or wait for the customer to come by car to collect the order outside or inside of the shop. Many people and families have found a friend or neighbor willing to venture into the shops and buy the necessary items for them.
Business responses Faced with the sharp drop in consumer demand, businesses panicked and resorted to all measures that could ensure their survival. The responses included the following: – Many reconsidered the product categories and market segments to focus on – Many focused again on the most important customers and geographic areas – Many cut prices, making discounts and promotions. – Many have reduced marketing budgets and re-evaluated relations with the communication agencies of which they were customers. – Many have fired or not reconfirmed the collaborators. – Many have canceled or reduced orders. – Many have delayed payments. to banks, utilities and suppliers. Most businesses thought that the most important thing to do was stay alive and survive. Some have reflected more deeply on how to maintain customers, collaborators, suppliers and communities and how to help them.
1.Ford has suspended nationwide advertising campaigns promoting its vehicles, and has created a new campaign describing its response to the coronavirus. Ford Credit offered help with purchasing the car, delaying payment terms. New Ford car buyers can delay their first payment by 90 days. Ford increased his philanthropic efforts by supporting food programs for children who are no longer able to go to school, and launched an emergency aid program with the United Negro College Fund, to help students with financial problems return home when their college has closed. Furthermore, it has defined a smart working policy for its collaborators.