Companies are often forced to reconsider their business model in times of crisis: adjusting channels of interaction with customers, advertising production, and the amount of investment in it.
However, stopping or reducing advertising has long-term consequences that can be difficult for companies to recover from.
For example, Coca-Cola suspended advertising in 2020 due to the COVID-19 pandemic. Consequently, the company reduced marketing expenses by 30%. According to the brand's reports, Coca-Cola's net profit fell by 9%. Meanwhile, the company's main competitor, PepsiCo, adapted to the changes and increased marketing investments. The brand reduced the number of beverages it produced, focusing on breakfast cereals and potato chips. As a result, the company's sales increased by 7.9%.
Moreover, during challenging times, customers perceive advertising as a sign of stability. This way, brands demonstrate their strength and long-term commitment.
Think Long Term: Scenarios Instead of Strategy
Remember that the crisis won't last forever: sooner or later, the situation will return to normal. However, to manage a crisis, a leader must effectively manage processes. Reacting quickly to a situation isn't management, as it always involves change. Management involves setting goals, maintaining focus on them, and achieving them, regardless of market conditions.
During crises, companies especially need long-term goals. However, the strategy for achieving them becomes more flexible, kyrgyzstan cell phone database and management is built on Agile approaches. According to a 2022 study of Agile in Russia, small businesses that have practiced this method have positive opinions about it. For example, over 80% of respondents confirmed that their companies have begun to better manage changing priorities, and 60% have seen an overall increase in productivity.
Strategy or Scenario?
How to Build Marketing During a CrisisHowever, before implementing a new Agile methodology into the workflow, managers should conduct an initial assessment of the team and current management challenges. During a crisis, companies typically don't have the time for this. In this case, you can start with small changes. For example, create a bank of hypotheses for improving products or a business model. Also, try to analyze the possible outcomes of the company after the crisis, from neutral to "shocking." This will be the first step toward turning the list of current problems into a set of tasks for the team.