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FEATURE BUSINESS
Marketing’s Trojan horse
I
In this eight-part series of articles, Essential Group will share all the methods and tricks of the trade for running a successful hardware store in South Africa. This article focuses on your marketing strategy in the wake of COVID-19.
t’s a warzone out there, no other description for
tendency for companies to lower their guard, to
South Africa was not alone in this ostrich-like reaction.
it. The country is in lockdown, companies are
no longer focus on strategy but rather on survival.
losing the battle to survive; many are closing their
As consumers reduce their spending, becoming
and Facebook advertising revenues; decimating them
The knock-on effect was profound on both Google
doors while others are barely ticking over. The
stricter with priorities and sales decline, businesses
in fact, as ad-spend fell. This, interestingly however,
enemy at the gate, however, consists of two elements
characteristically cut costs, reduce prices, and delay
had a positive effect for the consumer.
that are posing a threat to businesses: namely, COVID-19
new investments, believing that the temporary
and a lack of business agility.
profitability gains will tide them over. Companies
manage the price for engagement based on supply
While we can do our best to protect ourselves from
Both platforms use algorithms that generally
often slash marketing outlays in areas from
and demand; and, as the supply (of Ads) is at an all-
the virus and rely on the faint belief that we will remain
communications to research, as this area is seen
time low, so is the related costing.
unaffected, business inflexibility and lack of adaptability
to be more easily trimmed than production costs –
is more insidious and, a lack of savvy runs the risk of
but such wholesale cost cutting is a strategic mistake.
times (10X) improvement on ROI per rand spent,
crippling companies way after the pandemic has peaked.
A short-term fix with long-term consequences.
presently. The question is how is this even possible?
Unfortunately, putting businesses into a forced
While undoubtedly, it is wise to contain costs,
Historical examples indicate at least a ten
Well, because so many companies have stopped
state of isolation, the coronavirus has put paid to
not supporting brands or examining major
advertising, those who do advertise, have the entire
tried-and-true marketing approaches, which may not
customers’ shifting requirements can threaten
marketplace as a ‘captive audience’ – advertisers
work today, for at least two reasons: social distancing,
long-term performance.
are no longer competing in a crowded marketplace.
and your customer messaging that is not modified to deal with fear and apprehension. While the nation is hunkered down in our various
This is a warzone remember, and strategy is essential to survive. The landscape has changed, you cannot
Now is the time to call on the mercenaries, to be entrepreneurial and get your leads cheaply. The isolation period is when companies can equip
foxholes, hoping to level the viral enemy with an arsenal
send in tanks where only the agile cavalry can
their soldiers to tackle the challenges that lie ahead,
of weaponry in the form of sanitisers, masks and social
go – or better still, a Trojan horse.
to strategise, outwit the enemy; to work smarter.
distancing, a sense of desperation and marketing
This is absolutely the wrong time to go underground!
paralysis is creeping in the back door, catching companies
THE TROJAN HORSE…
Rather, it is the perfect time to retain a presence in the
off-guard, exposing them to the opposition, to the enemy.
This isolation time is an opportunity to take
marketplace. To do this, a change of tactic is required.
advantage of competitors that have dropped their
A company’s marketing approach must be finely
WHO IS THE ENEMY?
marketing guard, a chance to promote to potential
honed to the customer’s changing needs during
For one, it could be your own marketing strategy –
clients, a time to move into the vacuum created by
the lockdown, to maintain trust, continuity and
or lack of it. Let that sink in.
lethargic marketers. Historically, consumer goods
confidence; to maintain relevance to core customers
companies that maintained or increased their
that will sustain brands after the lockdown is over.
a disposable household income, coupled with a sense
advertising spend during downturns, captured market
Some considerations include ensuring your website is
of consumer confidence about the future, trusting in
share from weaker rivals who stopped marketing.
offering a fast, personalised experience. Up the ante
When President Ramaphosa declared the 21-day
on social media, talk to and listen to your customers,
When a market is flourishing, purchases depend on
business and the economy, and pursuing lifestyles and values that boost consumption. Marketing campaigns
national lockdown, overnight, a herd mentality had
learn more about your market, while developing high
abound, spurring on the consumer to go out and spend.
companies stopping all ad-spend, retreating into a ‘safe
quality content that will be shared.
During an economic slump however, there is strong
zone’, preparing to batten down and weather the storm.
Retain that customer relationship that you worked so hard to develop, this is no time for casualties. Send out personalised, targeted communications to existing customers who want to hear your news. Share what differentiates you from your competitors; keep frontof-mind. Consumers develop a fondness and loyalty for your products/services mainly because they are familiar with them. Keep communication going! Remember, it’s cheaper to retain an existing customer than acquire a new one. That said, it may be time to part with brands or products that were ailing prior to the coronavirus pandemic and are on life support now. Take this time to determine which brands have poor survival forecasts, which may endure falling sales but can be steadied, and which are likely to thrive during this time, and beyond. And all the while, have a ready pipeline of innovations for when the market shifts, as most consumers will try a variety of new products once the economy improves. Gear your marketing for the upturn, prepare, innovate, maybe re-invent yourself — get behind enemy lines and take the opposition by surprise.
MAY 2020 DIY & INDUSTRIAL TRADE NEWS
