Delving deeper into these changes, I came across an article by McKinsey based on the extensive market research it has been conducting since the coronavirus crisis began.
Before going into the data, a reflection.
Trying to navigate a changing and uncertain philippines girls telegram environment without data to help you define the best strategy is like trying to cross a street with a blindfold on.
In a normal context, the definition of the strategy must be based on a complete analysis of the situation (market, audience and company), which allows establishing the best plan to achieve the objectives.
In the context of COVID-19, this need for research has multiplied exponentially. With the number of changes we are experiencing at all levels, we must understand the context of our market in order to redefine our approach and adapt.
We cannot expect to achieve results by doing the same thing as before, when the context has changed so radically.
McKinsey can serve as a reference. What does one of the largest strategic consulting firms in the world do? It has redoubled its efforts in research, as a way of guiding its clients, and outside, to position itself in the market as the best solution for those who are not.
Returning to the McKinsey article, I like to see that some of its conclusions coincide with those I mentioned in my article Reinventing Marketing .
For me, the most worrying thing for brands and their state of digitalization or digital transformation is that:
During lockdown, 60% of consumers changed brands or stores due to price, product availability or convenience
In this case, when they talk about convenience, they mean whether the brand can be purchased online or not.
1. We look at prices more and buy more basic products
When uncertainty is high and incomes are affected, there is a change in our purchasing habits. We tend to reduce spending on luxury (non-necessary) products and focus on the most basic ones. In addition, we are concerned about finding the most economical option.
Added to this reality are two facts that are driving this change in behaviour: on the one hand, the most obvious, confinement, and on the other, changes in the way we enjoy summer holidays (fewer hotels, more rural houses and second homes, and fewer trips abroad).
This change in behavior can lead companies to consider lowering prices to attract customers.
Beyond the convenience of certain offers and promotions to stimulate consumption, I believe that companies should first focus on strengthening and clarifying their value proposition. Once this is done, it is time to analyze whether it is necessary to change prices. But lowering them directly as the only lever to boost sales is certainly dangerous for the survival of the company.