Difficult times? Be sure to ask the difficult questions

as Published in the Globe and Mail (National Edition) - December 8, 2008

With the United States now in recession and Canadian consumer confidence badly shaken, it's not surprising that many marketers are worried - particularly retailers who count on the holiday season to make their annual numbers. Do you rely on traditional tactics, such as discounting and special promotions, to pull in the bargain hunters this year? Or do you need to do something more drastic to attract skittish shoppers? Some companies are resorting to price cuts so deep that they are damaging the perceived value of their products. Others are abandoning their marketing plans and disappearing from consumers' sight altogether - leaving the field wide open to their competitors. But the good news is that many marketers are not only finding creative ways to connect with consumers during these tough times, they are strengthening their brands by doing so. One strategy is to keep the marketing messages in tune with the mood of the times, particularly as society shifts from gleeful spending to belt-tightening and reflection. These marketers recognize both the need and the opportunity to connect with consumers in an honest and meaningful way, to boost spirits and relieve some stress. Here are some tips from some of the organizations that are leading the way.

Address peoples' concerns
This is not a time for either platitudes or avoidance. People want to know where they stand - particularly when it comes to their money. Vancouver City Savings Credit Union is keenly aware of peoples' concerns about global economic volatility and the financial sector's stability, and decided to address those concerns head-on. In a confident, headline-driven campaign produced by TBWA just over a month ago, Vancity actively offers reassurance to members, helping them understand that it "is not Wall Street." By showing confidence and differentiating itself from the big banks, Canada's largest credit union has been able to provide a sense of calm in the midst of turbulence.

Slow time, productive time.
How many times have busy executives complained that they don't have time for the strategic planning or market research that would expand their business? If this strikes a familiar chord with you, now might be the time to break free of this Catch-22. Use this slow time to explore new market opportunities and invest in your own future. Alternatively, invest in someone else's future. Builders Without Borders, a charitable group in Vancouver that provides project management expertise, has taken advantage of slowing construction to do something significant for the city's homeless population. It is now relying on volunteer architects, engineers and other industry professionals to help complete construction of an innovative housing project - one it hopes will become a template for other projects and offer hope to many. Attracting skilled volunteers is nearly impossible in boom times when resources are stretched thin; now, people have a little more time available to give back.

Connect in new ways
Using the opposite of high-pressure sales tactics, Teen Vogue magazine is opening a stress-free outlet in a New Jersey mall where it is impossible to buy anything. Teen Vogue's "Haute Spot" attracts teenage girls to come to enjoy free smoothies, gift-wrapping, and styling advice - all while playing with and learning about the products of the 20 participating Teen Vogue advertisers.

We could use some cheer
The holiday season is a critical time for retailers to build the bottom line - but also a great time to reinforce a brand. In keeping with its nostalgic history, R.H. Macy & Co. Inc. has launched its "Million Reasons to Believe" campaign with the goal of raising spirits as well as money for charity. The New York-based department store has created "Believe Stations" for children to write letters to Santa, donating a dollar to charity for every letter deposited in-store and filling valuable floor space with holiday cheer - enough to make you believe in Santa all over again. Starbucks Corp. is also offering consumers an easy way to give. For each Starbucks "red" beverage purchased until Jan. 2, the Seattle-based coffee chain will donate 5 cents to help fight AIDS in Africa. People can connect with other contributors through an online community and even track contributions through an "impact calculator."

Stay calm and focused
To borrow from Rudyard Kipling: "If you can keep your head when all about you are losing theirs ... Yours is the Earth and everything that's in it." Great brands have been born in recessionary times, including FedEx Corp. (1973), CNN (1980) and USA Today (1982). If you have something great to offer, if you believe in your brand, and if you're willing to support it, you don't have to wait for sunny skies to be successful.