Managing Through Crisis: How To Market During COVID-19

Welcome to Management Through Crisis, the webcast in which Harvard Business School professors shared insights for managers on how to navigate through the Kogan 19

crisis

. On February 2 of this year, fifty-two brands spent a average seven point seven million dollars to strut around. the annual advertising extravaganza known as the Superbowl—oh, and there was a football game—it's a big day for those brands, as it often sets the stage for advertising and promotion for the rest of the year. Little did we know that day that in a matter of weeks those plans would be erased by Kovat 19. Marketing directors around the world find themselves in uncharted waters, so today I am very happy to have two guests who can help us navigate through these rough seas.

They recently co-wrote an article called What Customers Need to Hear. you during The Cove in the nineteen

crisis

Jill Avery is a brand management expert who teaches in the MBA program at Harvard Business School Richard Element is the CEO of a public relations firm Edelman Worldwide and each year they publish a report called annual Edelman Trust Barometer. A fantastic report and we're going to talk about that today, but let me thank you both for joining us today. Thank you for inviting us. Thanks Bryan, so we're all separated. We are practicing social distancing. You know we are here. different places in the country, Richard.

I want to start with you. I mentioned the Edelman Trust Barometer, it's something we refer to at Harvard Business School every year because you know, I think the information you provide there is just a real way to measure what people are thinking about you. , you know the government media and the commercial institutions, but you just did a slightly off-cycle version of this and I want you to maybe describe to us what the research was that you did and how it feeds into the topic that we're going to talk about today. I think the great message for

market

ers is that your customers want to hear from you, don't blackout, tell them what you are doing to solve the problem and don't sell to them. mentality that's suitably serious, don't do it, you know a lot about comic relief and be substantial, give them something tangible that you're doing, whether it's cutting raids or allowing healthcare workers to skip the line or having an idea that that it's even bigger, like you know Hawaii tourism, where they have this feeling of Aloha, they made a video and said, hey, you know, we're all thinking about you, we'll be back together soon, the spirit of Aloha, but reach out because Now is the time.

I need to feel empathy from brands, Richard, right? You were just curious, like what the numbers were of the people you surveyed. How did it go? Then we went out to a dozen

market

s. We did 12,000 people, some in Asia and others. in Europe, some in the United States and Latin America, and what was surprising was the unanimity of feeling of the respondents, young and old, and in all geographies, they really believe deeply in brands, they have the feeling that brands represent them today in day. idea of ​​brand democracy that I'm going to vote by buying your product and I'm going to support your candidate brand if you actually do what I expect, which is to stand up for me in this really difficult time, Jill, you know before you came to HBS you were running some brands Pretty big ones, probably some Super Bowl advertisers, I'd hazard a guess, and I'm wondering what impact this has on a CMO when something like us doesn't really have a precedent per se.

I don't know, maybe 9/11 some people have said that, but, but how does a CMO pivot at a time like this? Yes, this is a very scary time for a marketing director, Brian, and what precipitated our study is that we noticed that almost a quarter of brands had gone dark as a result of the Coab crisis in nineteen, so the CEO Mo we are struggling with what I do, what I say, how I act during a crisis like this. I'm not sure we have a precedent. in history for this and I think that's why you saw so many men choosing darkness instead of experimenting with solutions to address the crisis, so we believe this survey was the week of March 23, which if you remember was like the crisis was unfolding around the world, so some of the markets where we surveyed consumers were doing well within two weeks of having the virus in their country, while in other parts of the world where we surveyed the virus was barely emerging or threatening to enter a country, so Managers from around the world were in different locations during that week and tried to understand how consumers would respond to these unique and unprecedented events.

What kind of impact do you think this has on the advertising industry? Maybe richer than it could be a The question you're closest to, you know how this is impacting the media world. Well, what's happened is that all kinds of brands have decided to stop putting their content next to disturbing news and that's not unusual, but if most news is disturbing, that means. They are basically opting out, so TV advertising in the third quarter could be down as much as 40%, so there is a tidal wave happening in the advertising and marketing business, namely, WPP asked for 600 million pounds sterling.

Government support yesterday and WPP's share price has halved and calls for redundancies, furloughs or pay cuts for senior management are sweeping the industry, so it's definitely having an effect, but what I would say that it is urgent to remember it, everyone knows it. where it was on September 11, 2001 and the same will be for brands, if you stand up and speak for your brand right now, it will have a disproportionate impact because others are silent and if it is functional like Dove wash your hands more hands. often and for 20 seconds, that's the new rule: you have to do up and down between your fingers or their sockets, you know, because HP donates digital printers to hospitals where they don't have enough mats and they can make their own, that's the type. of responsibility people will remember so Jill let me ask you about this because we didn't talk before about brand storytelling and how important that is and I'm wondering if you know that there are some brands that are happy and frivolous and that's kind of their personality. brand, right, if you're a brand like that, what can you do to adapt to this and still be authentic and true to yourself?

So I think two messages here, one is that you have to be present during this moment, so although so many CMOS are retiring, this is not the time to be left in the dark and whether in digital or traditional media, you see Consumers are hungry for information about this crisis, so consumers are consuming more media during this period and want to hear directly. of your brands, so when we think about brand storytelling during this time, consumers want information, they want facts about the virus, they want to understand how your products and services can help them weather this crisis, and they want to make sure you're delivering news .

That's a fact, there are a lot of rumors and fake news circulating and consumers are really looking for brands to be honest from the beginning and to be well informed and educated about the crisis. Our survey results indicate that marketers should be cautious about using humor or being too lighthearted during the crisis, consumers indicated that they want all advertisers to recognize that we are in a crisis to empathize with the conditions of the consumers to show that they understand what people are going through and that they are not ignorant or oblivious to the state of the world, so we warn marketers at this time to avoid being flippant, so watch the use of humor.

The other theme that emerged is escapism. Should we create brand stories that allow consumers to escape this period that, as you know, is very, very scary? From the point of view of health, social distancing and economic pain, our survey results indicate that this could be a risky strategy right now, especially for countries that are at the heart of the crisis, perhaps a As more weeks go by, escapism in advertising might become more acceptable, but at the heart of the crisis, consumers really want to see how you're helping and how you're providing solutions that will help them right now, so it's kind of I'm glad to know that there's one thing that's surprising: how fast Ally moves.

The world was in a time of panic, so there was a report from an unnamed UN official in Malaysia saying that if you consumed cold products like ice cream, it opened your throat for kovat and suddenly ice cream sales started to plummet and We know that on behalf of Unilever we said that's not the case, so we had to call the doctors quickly, go on social media and say, enjoy your ice cream. Actually, not only is it fun, it's totally safe, but this idea of ​​being prepared for fake news is very important. Right now, because this time it's getting up and around so quickly that you would recommend CEOs do it.

We want to hear from CEOs now. Is it important to record your voice? So, Brian, we're about to file another special element report next Tuesday. and this is what I would say: right now the CEOs have kept their heads down, they've been like the passenger in the car and they've let the government be the driver and when the return to work happens they can't do that anymore and The business will have to be responsible and prepare the return to work in such a way that people feel that Starbucks is different, for example, by opening its stores by not having anyone sitting, just shaking and going out and organizing the lines of you know so that no one is too close and You know that all these things are signs that companies have thought carefully that what matters most is the safety of their people and their customers, not money, and that is urgent, so that CEOs should get down to business now that they've done it. they had their three months of peace now they need to stand up and speak on behalf of what is the new society we can expect and no, don't long for the old, tell us what the new normal will be Jill, is it there?

Examples of affirming names are always uncertain. Are there examples you can point to where someone has actually adopted a tone that resonates? Do you know what you're describing as the right tone for this moment? I sure think I'll point out some of the efforts that we've seen come out of Unilever because they've been one of the companies that I think has taken a total 360-degree view on how to communicate during this crisis. First, there is a very powerful ad right now called Courage is Beautiful and it features frontline healthcare workers with their tired Haggard faces and workers scarred and scarred by the masks they wear while caring for hospital patients.

Koba 19. It is part of Dove's campaign for real beauty. which has been a very successful long-running campaign for Unilever and which perfectly matches the brands essence and message that everyone is beautiful with a new version of beauty and a new version of courage and heroism during the Kovat 19 crisis , believe. It strikes a perfect emotional balance and message for the time, but Unilever isn't just advertising, they're not just telling feel-good stories during this period, they're actually putting action behind the words, so I think that's what makes things and its other brands The most powerful campaign at the moment is the fact that Unilever has dedicated one hundred million euros in soaps, bleaches and other food products to help with the crisis;

They have pledged 200 million euros to help their small suppliers and small retailers weather the crisis and they promise to protect their employees for three months as the economic situation changes, so here you see a company that is helping its employees by helping to their suppliers by providing emotional connections for viewers and then also adding videos on proper handwashing techniques using Dove soap on YouTube. from a 360 view of being informative, providing help not only to your own customers but to people around the world and really supporting your brand values, that's a great example and Richard, I guess I would ask you that as a follow-up to that .

Do consumers want their brands to be part of the solution or how important is it to consumers that brands actually step up and try to do something proactive to be part of the solution? It is the cynical quinone. They are absolutely convinced that brands are the vanguard. of the spirit by resolving that they actually want brands to protect employee jobs, they want brands to lower prices for people who are negatively affected by all of this, but they have the feeling that the brand is the corporation in that way and because that's what they can buy, they can't buy thecorporation and the brand should not be sold either, the brand should be resolved and be part of a fabric, in fact, maybe partner with the government or partner with NGOs because we are better together, you know that Unilever for example is doing a day of service in the United States where they are giving away all the products manufactured in their 14 factories on one day in May that they are distributing through Feeding with They Feeding America and Direct.

Relief and that is smart because it gives them the ability to also reach their employees and their communities; It's not just about the customers, so stay with you for a second on this, Richard, because I think there are some brands that, particularly in the meatpacking industry right now, we've seen high incidences of the virus in those plants, a lot of them are closed, so you have a brand like Tyson, let's say, that is in a really difficult situation because they either worry about their employees and stay closed until they can do the deep cleaning that they need to do or they worry about the public and remain open to be able to avoid any interruption in the food chain, what kind of compensation do you have to make there as a brand?

Well, they are our clients, so I know something about this, and in fact, I don't know. I don't think you don't know that anyway, when I ask the question today, they don't actually need to make a trade, what they need to be able to do is demonstrate that they have actually changed the production method that they have put the plastics into. Between each of the workstations they have monitored the employees who enter with the temperature. They have made efforts to help the community, not just their own workers, get to a better place of health and it is urgent not to have food supplies to know that people are being able to do this vital work and, therefore, Tyson has suddenly become a healthcare company and I think that's what's changed for the industry: you're not just dealing with a company, you have to care more broadly about your environment so you can do your job, so that until I know, Richard said this is a time for brands to resolve and not sell, but I have to ask if there is an opportunity for brands here to increase my share and eventually you know how to grow their consumption based on how . behave during this time.

I think there's a huge opportunity, but I also think there's a huge risk, and you know, what we're hearing from consumers is that they will reward companies that act honorably to help during this crisis and they expect their brands to do so. I have relied for many years on stepping up and being a safety net during this period to help governments help nonprofits get through this. They expect brands and the companies behind them to help even when they incur significant financial losses to build relationships. They are formed, strengthened or destroyed in times of crisis, so I think consumers are watching right now and will reward brands that get it right.

Unfortunately, they are also signaling that they will punish brands that fail and sell out rather than provide solutions that take advantage of the crisis. situation, instead of being compassionate right now, they will punish brands that don't take care of their employees or leave people behind during this time of crisis. So, you know, I think if we manage brands, it's a great opportunity. to increase trust to ensure loyalty and stand by our customers, but it is also a risk for those who take the wrong tone or do not step forward to be a helping partner, so I have one more question.

I want both of us to have a chance to respond Richard oh, I'll start with you. The question is how I should look at almost thinking about the reboot. You know this will come to an end at some point and how CMOS needs to think about you. I know his role in bringing his brands back to the surface, so I hope CMOS doesn't see this as the closing of one chapter and the beginning of another because there is some risk that Kovac could return to business. He can be blamed for not being cautious enough and protecting us, so I think in a way it's the beginning of the next phase of marketing.

I think people are tired of being talked to. I think they want it communicated to them. I think there is a feeling that this. It is beyond the purpose, this is not a nice thing to do, this is how our brands are going to fit into a society that needs to be recreated and somehow be good for everyone. One of the big changes here, Brian, is that we have 30 million. unemployed people in the United States, this wave of kovat has caused an economic catastrophe and 50% of Hispanics right now are unemployed or have seen their wages or ours decreased, so as marketers we have to really think about how let's do it. we have products that cater to people who are unemployed, they are not poor, they are disadvantaged now and we must give them hope and we must give them the feeling that we care and that and that we are designing more small products or affordable products is a rethinking not only about what you know about security and where you sit in the restaurant, but also about how I priced ourselves and how I market this and and and how I'm going to allow people to talk to each other and somehow maybe be less controlling in our messaging. which, in fact, the brand is willing to be, you know a community and really Stanford for the best work, so I would caution brands not to go back to their coveted messages and their previously covered strategy because I think it's the best. brand storytelling Oh II Springs, when we stay close to the human condition, culture has fundamentally changed and people have different needs today than they did in February 2020 and smart marketers will take advantage of new needs and the emergence of consumers As society begins to open up, health safety will be important topics well into fall winter and possibly into 2021, and so how brands can adapt their storytelling to reflect consumers' new needs to respect the position in which consumers find themselves, both economically, psychologically and socially, and reflect. that in your stories will lead to a reopening in a new normal that needs new brand stories, not the stories we have been telling in the precoded area jill avery richard Edelman thank you very much for these ideas, it has been great talking to you, today