Crisis management with efficient communication

Crises undoubtedly shake the foundations of existing systems and lead to the appearance of better structures. Companies disappear or merge, and unusual solutions are invented, with the survivors benefiting from the eventually arriving boom. New chapters are written for marketing textbooks, new terms are coined and the crisis management business thrives. Change is accelerated as a result of crises and radical restructuring of budgets becomes easier. Decisions made today will have an enormous influence in the long run. According to data from TNS Media Intelligence, 5 percent growth had still taken place in media spending in the fourth quarter of 2008, while a drop of 7.7 percent occurred in the first two months of 2009, compared to the same period in 2008. The substantial increase in media spending by the majority of retail chains in the last quarter of 2008 was a sign of intensifying competition. The biggest spender was Aldi, with Spar in second and PennyMarket in third place. The market leader Tesco took only sixth place in terms of advertising expenditure. Cable TV-s and indoor tools suffered from a double digit drop in spending, while cinema produced growth. According to Zsuzsa Mihálszki from TNS, it is hard to tell if the first two months of 2009 indicate a long term trend or a short term tactic, but no projections should be based on these figures. Cell phone companies and banks effected the biggest reductions in advertising spending while FMCG brand manufacturers displayed very diverse behaviour. The January-February period is regarded as a low season in the advertising business. An increasingly cost-efficiency focused attitude has been adopted by the Bonbonetti group as well. As Sándor Sánta CEO has pointed out, they pay more attention to concentrating their resources on well focused activities. Their key brands will continue to remain in the focus and their media spending has shifted towards BTL in order to get closer to consumers. According to Bertalan Bognár, marketing director, the Hungarian Mail has also revised its marketing communication activities, planning its budget more carefully and preferring methods which have a direct effect on sales. In the opinion of Mátyás Furulyás, sales director of M.C.Direct Kft, a shift in spending from ATL towards BTL tools is already detectable. They rely on personal communication to achieve their objectives, recommending solutions to clients on the basis of their known or assumed requirements. Experts agree that the crisis is having an effect on all business organisations and also on communication. Some brands utilise the crisis in their campaigns with words like “cheaper or more economic”, while others try to improve efficiency. Bonbonetti for example, has revised its media mixes and replaced TV with other ATL tools in the communication of some brands. Nevertheless, their brand building has remained consistent, with continuous commitment to social responsibility. Bonbonetti has been supporting the Food Bank, the International Children’s Ambulance Service and the Anti Cancer League for years. Their other priority which remains unchanged is the protection of the environment, because this is an important issue for consumers. Some companies have revised their messages as a result of the crisis, emphasising the importance of reliability, stability and thinking in the long term. The role of PR is accentuated in a crisis, because good PR can help consumers in making their choice. No significant change in the PR/brand communication ratio has been detected by experts so far. Though innovation is costly, it is necessary for survival in times of crisis. All of the experts interviewed believe in the power of innovation and the opportunity for communication it creates. Bonbonetti is also looking means of reaching well defined target groups like on line communication which has been used for promoting the Tibi brand. The Hungarian Mail has employed a number of alternative and innovative solutions including virus and guerilla marketing. Spending on Internet advertising has been growing at a double digit rate since 2006. Internal communication, for example using intranet has also become more important than in the past. Efficiency also needs to be improved in this area. Management systems and related solutions should be used more actively. An increasingly consumer focused attitude is apparent in all sectors. This is why BTL and direct marketing which promise immediate results and cost efficiency have become better appreciated.