Match marketing spend to new consumer behaviors
Adapting to new consumer behaviors post-COVID-19 will be vital to ensuring a healthy ROI for marketing spend. As China reopens, eMarketer is forecasting that ad spending in China will still grow in 2020, but at 8% rather than its previous forecast of more than 10%. Significant marketing spend on time-sensitive purchases such as travel and dining will be lost while lockdowns continue, whereas spending on other products and services may just be postponed to a later date.
Marketing spend is being redirected. Digital engagement options including content marketing and influencers may replace experiential and traditional event budgets. Prioritize media and channels that are less impacted and allocate resources accordingly.
- Review cancellation clauses so that you know your options. Be realistic and proactive in considering the viability and issues of experiential marketing and meetings
- Work with marketing suppliers to evaluate alternative options for cancelled physical events. Will replacement virtual events or webinars be as effective in reaching your target audience and deliver the ROI you're expecting?
- Consider alternative channels for your target consumers so that you can make changes and seize opportunities
Aside from logistics and marketing, here are some of the broader actions you can take across categories to build resilience in your procurement organization and across your supply chain:
- Maintain communication with external stakeholders; don't let them guess. Be clear, be concise, but most importantly, be active in delivering key messages that outline the company's view and any contingency plans that are in effect
- Know your inventory, allocate your resources accordingly, and plan for mid-to-long-term disruption to your supply chain and staffing
- Consider what-if scenarios – what if border and factory closures last beyond May? What if factory/border/town closures expand further? What contingencies are available to guarantee that your supply chain remains intact?
- All people impacted by a new category strategy must buy into it for it to be successful. Strategies must incorporate possible mitigation actions to remain relevant and reflect the immediate pressures and threats to the organization, including alternative supply options to minimize risks within the supply chain
In addition to dealing with the current disruption, procurement teams must begin to plan for the predicted global recession ahead. In my next blog, I'll share more category insights, focusing on the importance of maintaining relationships with your key suppliers and how to mobilize their support to help secure the future success of your organization by aligning on strategic objectives and moving toward value-share relationships.
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