A Brazilian Will Survive the Recession - It’s a Fact!

This one had me on my back with laughter and utter disbelief last weekend as I supported a client at the Professional Beauty Show in Manchester.

My client’s stand was next to the main lecture theatre and as the show began to unfold, I started to take a casual interest in some of the presentations. Over the last 25 years in this business, I reckon I have seen every type of corporate presentation, training course lecture etc.You name it and I have seen it. I’ve even written a few. But even for me, yes, Mr Marmite, couldn’t pull this one off (excuse the pun). There, as large as life on the running order was this:

‘Recession Proof your Business with Intimate Waxing’

Over the years I have written many articles for the media for my clients and as a freelancer on: How to Survive the Downturn, Credit Crunch PR, Recession Busting Marketing Tips, Market Your Business on a Shoestring, M&As in a Down Market, etc, etc, etc, but this was a new one on me.

When the speaker finished what was an excellent presentation, I went over to congratulate them on a job well done, but also to say that their seminar title was by far the most bizarre I had ever encountered.

I explained as a PR consultant, a commentator to the business media, someone who works with other entrepreneurs and as a businessman who has always pushed the envelope to make the sale and get the deal, I had never considered gaining a competitive business edge by being ‘waxed intimately’. Having a foolproof business and marketing plan for a ‘down market’ was possibly a better option, I suggested and certainly Gordon Brown had never intimated to me that this may be a good idea to get an ‘intimate waxing’ to see me through these tough times. Or did I miss the news that day…!!

The speaker of course did not blush (well, they wouldn’t, would they) but stood their ground and told me I was being obtuse. I may well have been a little devilish, but consider this. If they were right, when you next watch Dragons’ Den, that wonderful collection of rich, survive the recession, raise the bar, entrepreneurial types, try and work out which one has got a Brazilian. Theo Paphitis, Peter Jones, James Caan, Duncan Bannatyne or Deborah Meaden? Yes, I know – not a pretty thought, though it does make you wonder what the ‘bottom line’ is…!

Disclaimer: This is Barry Walker's view of the information as presented at the Professional Beauty Show. At the show the information was completely in context and totally valid; this is purely an ‘out of context’ view.

The PR Man, BBC Radio Solent and the Year of the Brand

Does radio love the PR man? I think so, as I was invited back to BBC Radio Solent last week to debate the power of brands, advertising and the Cadbury’s ‘eyebrow’ advert. This was indeed an opportune moment to air my views and discuss on live radio the importance of strengthening your brand in a depressed market.

Whilst BBC Radio Solent’s Jon Cuthill was asking can a really kooky advert that doesn’t actually mention chocolate sell more chocolate, my thought process was delving deeper than just a TV ad.

The reason the Cadbury’s ‘eyebrow’ advert strikes a chord with us in this recession is because it entertains us, it makes us laugh, it makes us smile, it’s a perfect example of effective non-verbal communication, empathetically engaging us with not a word spoken and it takes us out of our current predicament for just a few minutes - and at a time when we may not have much disposable income, it’s not actually asking us to spend any money. But of course the rub is we actually will spend 50p on a chocolate bar, not because we have been told to ‘buy chocolate from Cadbury’s’ but because when we need to buy a bar, we reward the feeling the advert gave us. This is called brand loyalty.

The fact that Glass and a Half Productions who made the advert have discovered a formula that goes viral to millions of viewers on the Internet is another matter. More of that another time.

With this in mind, what Cadbury’s have done is very clever and it links to one of my current views. I am calling 2009 the Year of The Brand, for a number of reasons. Let me explain why.

In a recession the brands that stand the test of time get noticed. Just think of some of the iconic brands that are dispersing from our high streets and how sad that makes us feel. Woolworth has been with all of us in our growing years. OK, who will admit to stealing from the Pick & Mix as a schoolboy? Yes, I thought so. Me too.

During the Second World War many companies, products and brands failed. But those that stuck to the task in hand of advertising to us and providing products to us survived. Brands like Hovis, OXO, Bovril, etc. You might argue that advertising wasn’t as sophisticated then, but in the 1940s it was certainly effective, and clear winners were born.

As Great Britain went through the Second World War which was a terrible time for all, those brands that persevered were rewarded. They were mainly non rationed products, but they actually survived and thrived. And why were we loyal to them? Well, because in our darkest hour of need, when all around was crumbling, doom, gloom and disaster, there was Hovis, OXO and Bovril. They comforted us, they revived us, they went through the war with us, they survived with us and we thanked them for it. That’s called brand loyalty.

Going back to the Cadbury’s ‘eyebrow’ advert, why is this a stroke of genius?

• In tough times all businesses need to strengthen their brands, to ensure they are visible to the consumer, to maintain market share and to retain customer loyalty.

• All businesses need to seek new ways of reaching audiences. Cadbury’s have done this with the ‘eyebrow’ advert and the gorilla playing the drums advert, because they both went viral. Just look on YouTube and type in ‘Cadbury’s Adverts’. Now do the maths. Millions upon millions of hits and not an advertising $ spent on this new way of distributing the message, as we did it for them!!

• They focused on advertising with a new ROI (return on investment). The fact that this advert went viral meant that the cost of distribution was very low. OK, there were production costs and the cost of an initial advertising campaign, but after that promotion via the Internet was free, improving ROI.

• Cadbury’s has had its knockers regarding this advert, saying the brand has been damaged. I don’t think so. In this case, if a brand makes its success based on humour – don’t change it.

• In a recession we don’t want reminding about what’s happening out there, we want cheering up. Cadbury’s achieved this.

So what can we learn from all this? And how will it help your business?

• Invest in key areas of your business. In the last recession, those who didn’t failed.

• In this dark time, continue to promote your brand.

• Whilst using traditional ways of appealing to your target audiences, don’t be afraid to try new ideas. Like this email e-newsletter from BlackChilli.

• If you need to cut budgets, don’t cut your promotional budget.

• If you want your prospective clients to be attracted to you, deliver comforting messages. Rather than ‘hard sell’ think of solving problems, delivering solutions, wise words, views on the market and above all be helpful.

• Your clients may be hurting too, so offer to support them and ensure they don’t go to a competitor.

• Understand the problems your clients face in their particular industries. Be a source of comfort and help them. Learn how to match your products to solve their problems.

• Do all the above, and you will become a trusted and valued business ally, someone your clients can’t do without.

The View from the 'Bunker'

We are officially in a depression, according to recent news. So here in the bunker at BlackChilli Towers I have pulled out the 12 bore, corralled the wagons and am taking a tip from John Wayne. We are stocking up on ammo, creative juices, innovative ideas, out of the box lateral thinking and are getting prepared to fight tooth and nail to support our clients.

A bit extreme, I hear you say. So be it, but it’s a bloody good bit of creative writing if I say so myself. The point is that I am prepared to fight to uphold the reputation of my clients and want to see them through these tough times.

So what can I pass on to you, dear readers, that will help you not only survive the tough times ahead, but seek opportunities in this market? Yes, seek new opportunities. In every market there are opportunities to be had: you just need to look for them.

Seeking opportunities will form part of our client survival strategy in the coming year. We want our clients to be seen as safe pairs of hands into which prospective clients can entrust new business. The current fear is that handing projects to businesses without checking on funding or the suitability to transact that business will create reluctance to trade.

On 10th March Shropshire based Wrekin Construction announced to its staff that it had gone into administration, with a loss of over 600 jobs. Conservative MP Mark Pritchard said that the firm was forced into administration because of its bank's "inflexibility" in releasing funds. Pritchard commented, “This is a long-standing and successful company with a large order book which has been driven into administration by the inflexibility of RBS. Some of the blame has to fall on the doorstep of 10 Downing Street, given the government's majority shareholding in RBS." (Source – ContractJournal.com). Wrekin had a forward order book of £40 million, but wasn’t allowed to trade, due to lack of support by the bank.

There are many businesses out there that we deal with who have saved for a rainy day. Now is the time to tell the business sector that you have that umbrella and you are a safe pair of hands in which to entrust precious projects. As sectors contract, the number of companies tendering for that declining pot increases. Margins get tighter and companies will bid for works at cost. This is certainly my memory of the last recession in the construction sector.

I have said before that companies that hold their marketing budgets in a downturn are the ones that fare best. It is a well documented fact, and I have touched on this in the past, that brands that increase their spend in a recession, when competitors are cutting back, can improve market share and the return on their investment. There will be pressure on budgets but the smart money will still be there.

BlackChilli believes PR will play a major role in advising businesses on how to navigate very difficult, and for some, uncharted waters. There will be complex messages to deliver. More than ever when times are taxing the media needs substance not fluff. Ask yourself – have you got substance?

I’ve always believed that PR thrives on the ideas and enthusiasm of its young. PR depends on the zeal of the youthful practitioners within the industry. However, when the economy is in ‘bust’, business must turn to experience. I did some maths the other day and now in my 50 something year, I have 20 years’ experience in PR, and 36 years working in, or being associated with, the construction industry. So I know I have a safe pair of hands. Have you? Chief executives will need the knowledge and experience from PR people that were around the last time. They will need strategic counsel and there will be growth in corporate PR and in crisis and issues management.

In order to get the most out of your PR resource, you need to make it a two-way relationship. Many PR campaigns fall down on senior people not dedicating enough time to their PR campaign. In a recession, brands who continue to see the importance in PR will need to make sure their investment is working harder for them, which means devoting more time to it.

Media relations remain a very cost-effective way of communicating with a mass audience. Research has shown that it is typically ten times more cost-effective than advertising and 300 times more effective than direct marketing. But remember, PRs cannot pretend to be you - and so CEOs, etc, will need to make more time to engage in conversations about their brand.

Lessons to learn from this:

• Invest time into your PR campaign.

• Ensure your audiences know you are ready to do business and that you are a safe pair of hands.

• Manage the expectations of your clients.

• Keep communicating, telling your clients ‘you are here’.

• Publicise your contract wins – everyone wants to do business with a winner.

• Look for new opportunities for your staff, products and facilities.

• Lastly - Keep the faith. You will be a winner

Spin In a Tin

BlackChilli has just been appointed by artisan food producer ‘When Britain was Great’ to help launch their new range of feel-good convenience food, designed to transport the consumer to a memory point in time when Britain was truly a great place to be. In this gloomy economic time ‘When Britain was Great’ wants to give all consumers in the UK that extra boost of nostalgia and reinforce a sense of national pride.

Suitable for all adult age groups, ‘When Britain was Great’ has produced a range of tinned ready meals that are themed to embrace the iconic dishes of a decade, from the 40s right up to the 90s. The unique tin design has a separate compartment on the base for a drink of that era to compliment the food inside.

To heighten the sense of nostalgia, when you open the tin, a tune associated with the dish and the appropriate time in history plays, thanks to a small micro processor. So get ready to wipe an eye, take a walk down memory lane and indulge yourself with the true taste of yesterday.

Meal combinations include:

40s - Bully beef and carrots, a drink of Pale Ale, with the tin playing the tune of wartime songstress Vera Lynn singing ‘We’ll Meet Again’.

50s - Traditional roast beef with two veg, a drink of Babycham, with the tin rocking to Cliff Richard’s “Livin’ Lovin’ Doll”.

60s - Fish & Chips, with mushy peas, a drink of Watney’s Red Barrel, with the tin playing the theme tune for the 1966 World Cup.

70s - Cheese fondue, with a drink of Black Tower, with the tin playing the tune of The Hills Are Alive, by Julie Andrews from The Sound of Music.

80s - Chilli con Carne, with ready mixed Margarita, with the tin playing the tune of La Bamba by Los Lobos.

90s - Chicken Tikka Masala, with a drink of Cobra beer, with the tin playing music from Café Del Mar.

Destined to be a winner, Pilar Lofo, the inventor of the concept and Managing Director of ‘When Britain was Great’ commented: “Having BlackChilli manage our launch and ongoing media relations is very exciting and we think the launch will make a lot of people smile and evoke special memories.”

“This is a great day for everyone. Enjoy it!” - Barry Walker