Brands need to keep the lights on: Kantar

As Covid-19 continues its rampage, consumers are sliding down Maslow’s hierarchy of needs and becoming hyper-focussed on ensuring that their basic needs are met. Organisations also slide down Maslow’s hierarchy in a crisis moment. The pandemic, however, is an instructive moment for brands to reconsider their posture on marketing and customer engagement, says a marketing executive.

Soumya Mohanty, Chief Client Officer, Insights Division, South Asia, at Kantar says brands need to reflect the reality: find the good in the midst of chaos, share the burden and showcase new beginnings at this time. The crisis is not a time to focus on short-term equity and quarterly sales.

“Brands need to keep the light on — show people what they are made of,” adds the official, for the coronavirus crisis will reveal not just vulnerabilities, but opportunities to improve the performance of businesses.

Social solidarity

A recent Kantar study states that the crisis is the time for brands to speak to people, and not consumers. At this time, brands need to make it less about themselves and more about the people. They need to build trust by setting brand agenda aside and helping people heal.

Speaking to BusinessLine , Mohanty, also the author of the Kantar study, outlined five themes. “Despite the crisis, there is social solidarity. We have noticed the emergence of a sense of social solidarity, which in its positive side will force brands and categories to have a larger purpose and become more responsible,” said Mohanty.

While brands leading with purpose can drive positive change on some of society’s most pressing issues, and attract a loyal fanbase that will last a lifetime, they will need to recalibrate and refocus at this time, by giving perspectives on what’s really important.

However, “since India is a ‘let’s stick together’ space versus ‘let’s be prepared’ like the rest of world”, the official says it could imply reinforcement of status quo and class fault lines.

Speaking about sliding down on Maslow’s hierarchy, Mohanty says brands and categories in the physiological and safety space will recover faster versus those in the self-esteem and actualisation space.

The executive adds brands need to be human, real, vulnerable at this time. The pandemic is the time for brands to signal values in a way that is needed.

The study highlighted the importance of flexi-channel. “Brands will need to plan for an agile channel strategy as both e-commerce and kirana stores, at the two ends, will continue to exist. The path to purchase will have to be re-imagined by corporates and retailers as touch-and-feel, impulse and socialising occasions will reduce,” continued the official.

Emerging trends

As for what is likely to stay post the crisis, the study showed there would be increased attention to the origin of products, much more in India than in Europe and the US.

Tracking the change in shopping behaviour, the study revealed that attention to the origin of products in India was at a high of 63 per cent as compared to 35 per cent in the US and 25 per cent in the UK.

“There will continue to be a trust deficit, however, between people, and between brands and consumers. Source transparency will help brige that gap, be it in food delivery or packaged products,” said Mohanty.

The Kantar study also threw up a trend that Indian consumers may already have started down-trading. “There is a new value equation in the making. We are likely to spend less now. Attitudinal loyalty in India is lower than most of the world,” said the official.

The study showed while 71 per cent consumers in Italy would be happy to keep purchasing the same brands as always, as would 68 per cent in Germany, 66 per cent in the US and 64 per cent in the UK, only 59 per cent of Indian consumers said they would be happy with the same brands, depicting a shift in brand loyalty.

Mohanty said brand switches in India would be common and easier “especially when brands are not present on the shelf. A good portion (of the consuming market) is unlikely to come back to regular brands.”