Apr 7, 2020
Brands and the Virus
Recovering from COVID-19 will be hard, difficult and most importantly — completely different from all other times of crisis so far. Those brands who do not manage to (re)define their role in people’s lives, have a dark future ahead.
Why is it important to talk about brands now?
Because the brand is the anchor that keeps the company steady in times of stormy waters — as well as that irresistible force that continues to attract people despite changing circumstances.
A strong brand brings security because it gives companies a way to play a role in the lives and minds of their consumers. Customers, too are willing to pay more for their products and services. Therefore, the role of brands is of particular importance in the current crisis. First, because the brand serves as a business engine and a major asset of the company. Additionally, brands are an integral part of our daily lives, and often a source of positive emotion. Something so needed right now.
For a couple of weeks now, we — together with a huge part of the world — have been living in a situation that has quite a surreal shade to it. In a matter of days, COVID-19 change the daily lives, behavior and the priorities of people and businesses. With no doubt, this has been the most sudden and ubiquitous change in the way we live that has ever happened to us.
In result, we are all in the whirlwind of rapid adaptation processes.
Naturally, this reality has direct reflection on brands as well.
They are an integral part of each and every one of us and our daily lives. And the brand health is of key importance to the business. The power of brands to control consumers’ minds and determine the content and the size of their shopping cart is a major business asset. But for many of them, their market position, distribution, and most of all, their place in people’s lives, look quite different today than they did 2–3 weeks ago.
And the changes have just begun.
Are brands really infected?
Judging by the ad blocks, we can easily decide that nothing so significant has happened. Until days ago, vibrant ads for vacations to exotic destinations and concerts went on the radio. Anti-allergenic medicines promise us to breathe freely while walking in the park. Promotional campaigns with travel rewards — such as a trip to Paris — are heavily advertised on television. In the conditions of a media stream reflecting a state of emergency, such messages not only do not bring any advantages to the brands behind them, but can even be destructive.
In addition, the digital environment does not lack the tragicomic situations caused by automated ad planning based on keywords and topics. For example, right below a news article “Ski resort Bansko blocked due to the virus”, the Facebook algorithm has positioned an ad for a hotel that, in spite of the quarantined resort, offers us package discounts for accommodation and ski school lessons.
These brand messages further contribute to the overall sense of the absurd unreality of the situation around us. There’s no doubt that an event with the consequences of COVID-19 is not part of the plans of any marketing team or advertising agency. This is clear to all. However, to date, the ability of brands to respond to this „Black Swan“ event is the key factor that will determine the damage (or benefits) from the crisis, as well as the state in which the brand will come out of it.
Step 1: Quick initial actions
Of course, this time, too an adequate initial response is key: limiting any potential damage from brand activities that in the current context look out of place, or even harmful to the brand.
Brands that are, in one way or another, directly affected by the state of emergency generated by the virus, should suspend any advertising of activities, promotions, and rewards. Bansko can and must wait.
Even if your brand is outside this circle, an immediate audit of all forms of brand activity and communication channels is required. This audit should cover, first, the topics that your brand is talking about and then, the tone of voice and the style of communication.
The current ambiguity and the economic crisis with unclear parameters, but a startling pace of development, are forcing most brands to enter into a mode of silence and refrain from active communication.
For those brands that are severely affected by the virus, temporary silence may be the best approach while planning plan next steps. The crucial element for these brands is the moment of final communication update before entering “the silent phase”. They should share information adequately to the target audience on what will happen with the brand — even if they don’t know what this would be.
Step 2: Reaction to what’s happening
The next step for brands is to look for some form of proactive response — real action to respond to what is happening.
Typically, brands are enthusiastically quick in responding to any events that dominate the media stream (the so-called “real-time marketing”). Not this time: now we see more cautious behavior, and most brands wait to navigate around “secure” models. Until they find them, they either remain in silence or act like everyone else.
Such caution is definitely not unreasonable: any marketing activity directly linked to the situation around COVID-19 should be very carefully thought through, as it will be most likely face initial skepticism, risking to have negative reactions and accusations of “riding the wave” for commercial purposes.
On the other hand, many brands are getting involved in the topic, flooding social media with messages like “Wash your hands” or #stayhome. However, in order to be effective, such messages must have a distinct character and style, and be adapted to the brand’s authentic view of the topic. Without this step, these types of formats do not bring any advantages to the brand.
Step 3: Entering the Activate mode
For all their benefits, neither “the silent mode”, nor “we do like everyone else” can be a long-term brand strategy. Going into active mode is a matter of time, and the stakes for many brands are too high. Proactive behavior and taking (well thought out) risk cannot in any case be an end in itself. But in many cases, such a strategy will be justified because it has the potential to deliver ultra-high returns for the brand, measured in sales growth and improved image.
In the months to come, this effect will be extremely significant for brands. First, due to the dramatic decline in demand and sales in a number of categories. Secondly, because the behavior, habits and daily routine of people are currently subject to an unprecedented rearrangement. These phenomena will lead to a total reorganization of brands and their roles in our lives. And in this process, those brands who have clear awareness and understanding of their essence will have a major advantage.
Why does this brand exist?
Unfortunately, most brands have definitions of an essence and character that serve rather decorative functions. Too often, elements like mission, vision, or brand values are used to decorate the office and create materials for employees — but their direct application to brand behavior remains unclear.
The current situation demonstrates the need for clearly defined practical applicability of elements such as essence, philosophy and character in brand management decisions.
The point of having a brand book or a brand road map is to serve as a compass to guide the behavior and the direction of development. Having such a compass is an advantage in quiet times. In crises like the current one, it can be life-saving.
We are already seeing vivid examples of brands that do not hesitate to express their opinions and take proactive action. These brands have a strong advantage over their competitors, and with their actions, some of them actually contribute to a positive change in the current troublesome situation.
It’s still early to assess the damage, but it’s clear from now on: COVID-19’s morbidity among brands is many times higher than among people. There is literally no brand that is not forced to rethink its communication, the key messages it sends to people, and in some cases its foundational elements and attributes. And clearly (re)define and communicate to its audience what is the real value it brings to them — and why it deserves a role in their lives.
Dilyana Dobrinova, Georgi Gavazov
Brand consultants, the other half
Contact: giveme@theotherhalf.co
