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Facebook: Taking on CoVid-19

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A research made by Facebook, showing the changes in user behavior in several categories

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Facebook: Taking on CoVid-19

  1. 1. Taking on COVID-19 MARCH 2020
  2. 2. Coronaviruses are a large family of viruses which may cause illness in animals or humans. In humans, several coronaviruses are known to cause respiratory infections ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). What is a Coronavirus? Source: WHO, ”What is coronavirus?”, https://www.who.int/news-room/q-a-detail/q-a-coronaviruses What is COVID-19? COVID-19 is the infectious disease caused by the most recently discovered coronavirus. This new virus and disease were unknown before the outbreak of this global pandemic began in Wuhan, China, in December 2019. Taking on COVID-19
  3. 3. How consumer behaviours change in the context of COVID-19 1 Taking on COVID-19
  4. 4. Top Concerns among consumers about the COVID-19 situation in Asia Taking on COVID-19 37% 34% 46% Are concerned believe this is going to be worse than an economic recession with the risk of people losing jobs are worried about falling sick feel the situation demands them to be even more proactive about financial planning and security for the future 60% Source: ”COVID-19: What do consumers expect from brands?” by Kantar, Feb 2020
  5. 5. Source: “Coronavirus: opinion and reaction; results from a Multi-country poll”; Ipsos online survey of 1,000 respondents ages 18+, in the US, February 2020. 55%Individuals in the US believe that COVID-19 poses a high level of threat Taking on COVID-19
  6. 6. 49%Individuals in France believe that COVID-19 poses a high level of threat Source: “Coronavirus: opinion and reaction; results from a Multi-country poll”; Ipsos online survey of 1,000 respondents ages 18+, in France, February 2020. Taking on COVID-19
  7. 7. Taking on COVID-19 47%Individuals in Germany believe that COVID-19 poses a high level of threat Source: “Coronavirus: opinion and reaction; results from a Multi-country poll”; Ipsos online survey of 1,000 respondents ages 18+, in Germany, February 2020.
  8. 8. 43%Individuals in the UK believe that COVID-19 poses a high level of threat Source: “Coronavirus: opinion and reaction; results from a Multi-country poll”; Ipsos online survey of 1,000 respondents ages 18+, in the UK, February 2020. Taking on COVID-19
  9. 9. Source: HIM & ICA, March 2020 67%of consumers in the UK are concerned about shops running out of groceries due to COVID-19 Taking on COVID-19
  10. 10. 42%Individuals in Russia believe that COVID-19 poses a high level of threat Source: “Coronavirus: opinion and reaction; results from a Multi-country poll”; Ipsos online survey of 1,000 respondents ages 18+, in Russia, February 2020. Taking on COVID-19
  11. 11. Source: YouGov’s International Study conducted in 23 countries on people’s sentiments about Coronavirus, February 2020 39%Individuals in Italy believe that COVID-19 poses a high level of threat Taking on COVID-19
  12. 12. 59%Individuals in the MENA region believe that COVID-19 poses a high level of threat Source: YouGov’s International Study conducted in 23 countries on people’s sentiments about Coronavirus, February 2020 Taking on COVID-19
  13. 13. Significant increase in perceived threat to “my” country in all markets Taking on COVID-19 % Very high + High threat for Your Country What level of threat do you think the coronavirus poses to each of the following? Your Country Source: Ipsos Q: “What level of threat do you think COVID-19 represents?” (% Very high + High threat) 20% 17% 26% 60% 26% 24% 28% 49% 31% 34% 65% 33% 26% 37% 0% 10% 20% 30% 40% 50% 60% 70% France Germany Italy Japan Russia UK US Feb 14 - 15 Feb 28 - 29
  14. 14. People increasingly expect to see personal financial impact Taking on COVID-19 8% 11% 19% 38% 21% 16% 21%22% 19% 41% 56% 40% 32% 37% 0% 10% 20% 30% 40% 50% 60% France Germany Italy Japan Russia UK US Feb 14 - 15 Feb 28 - 29 Source: Ipsos Q: “The coronavirus will have a financial impact on me and my family” (% Strongly + Somewhat Agree)
  15. 15. Disruption in regular activities is already happening Taking on COVID-19 Source: Ipsos, Q: ”Thinking now about your day activities… would you say each of the following more frequently or less frequently compare to one month ago?” (%doing activity less frequently) % Doing Activity Less Frequently 20% 20% 34% 20% 20% 24% 22% 28% 32% 25% 37% 26% 0% 5% 10% 15% 20% 25% 30% 35% 40% FR DE IT UK RU US Travel outside your city Go to major shopping center
  16. 16. Most estimate it will take several months or more to contain the virus Taking on COVID-19 Source: Ipsos, Q: "How long do you think it be before the virus is contained?" (Feb 28-29, 2020) 3 1 4 4 1 2 3 3 1 3 20 18 18 6 10 13 13 15 15 17 52 48 46 49 47 10 17 13 25 21 0 10 20 30 40 50 60 70 80 90 100 FR DE IT RU UK Longer than 6 month Within several months Within a month Within a few weeks Within a few days Virus is contained today
  17. 17. +12.2% 1 Retail - the outbreak quickly brings changes in consumer behavior Taking on COVID-19 WoW growth in grocery retail sales in Italy 35% of Italy consumers reduced their out of home consumption occasions 34% of UK shoppers are stockpiling food Sources: 1/ & 2/ Nielsen, 24/feb thru 1/mar ( first full week after outbreak) 3/ HIM & MCA, March 2020
  18. 18. +81% 1 eCommerce - the outbreak quickly brings changes in consumer behavior Taking on COVID-19 WoW growth of in grocery eCommerce sales in Italy 3x Online vs. in-store grocery sales growth 40% of all retail sales in the UK could move online if the virus becomes an epidemic (up from 20%) Sources: 1/ Nielsen, 24/feb thru 1/mar 2020 ( first full week after outbreak) 2/ Nielsen ScanTrack, PCG+FLS, March 2020 3/ ParcelHero March 2020 estimate
  19. 19. 35% 1 FMCG - the outbreak quickly brings changes in consumer behavior Taking on COVID-19 of UK respondents say they improve personal hygiene as a measure again Coronavirus +225% YoY sales increase for hand sanitizers in the UK in February 49% Of consumers were most willing to pay a premium for were those with high quality assurances and verifiable safety standards. Sources: 1/ YouGov, March 2020 2/ Kantar, Feb 2020 3/ Nielsen, March 2020
  20. 20. 13.5% 1 Travel - the outbreak quickly brings changes in consumer behavior Taking on COVID-19 decrease in airport traffic in Europe Q1 2020 $29.3bn Expected passenger revenue impact in 2020 21% of Britons are cancelling or not booking holidays Sources: 1/ACI Europe, March 10, 2/Iata, March 5, 3/Brandwatch, UK Coronavirus survey, 2,031 respondents (18+), 27-29 February 2020.
  21. 21. -7% 1 Auto - the outbreak quickly brings changes in consumer behavior Taking on COVID-19 Y/Y decrease in Western europe car registrations in February 2020 -9% Y/Y decrease in car sales in Italy in February 2020 #1 Coronavirus is the most impactful factor in car sales decrease in Italy according to 72% of car dealers Sources: 1/LMC Automotive, February 2020, 2/Ministry of Infrastructure and Transport, 3/Ministry of Infrastructure and Transport
  22. 22. People turn to Facebook to stay informed Taking on COVID-19 % Use once a day + every few days FR DE IT RU UK US Facebook 24% 25% 38% 21% 25% 36% Sources: Ipos- Coronavirus Results Wave 3- Feb 28-29, 2020. *Feb 28-29 2020
  23. 23. Q4 Late Q3 / Early Q4 Q3Q2 Q2 Estimated global restart (base case) Key Insights Estimated degree of impact, in terms of duration Travel: HospitalityTravel: AirlinesAutomotiveConsumer products Consumer Electronics “Travel slowdown to and from major Asian travel hubs (20%+ YoY decrease) and select European destinations (e.g., France, Italy), coupled with decrease in Chinese tourism spend ($277Bn, 16% of international tourism spend in 2019), likely to reduce demand globally (up to 40% decline 2020 output) until disease is “under control” across transmission complexes, likely far into Q4 Hospitality sector could proactively protect and prepare its people, anticipate near-term fall in demand, prepare to manage reputational risk and review annual planning in anticipation of long-term impacts .” “Travel restrictions, drop in consumer confidence, corporate policies to limit mass gatherings and non-essential travel are acutely impacted industry Impact across airlines to vary, with smaller airlines with low margins and smaller cash reserves more at risk, but larger global network at risk is suggesting much broader, prolonged slowdown As with tourism, expected recovery to be faster for domestic travel (~2 quarters), longer for international (~3-4 quarters), if not longer based on disease evolution “ “Signs of ongoing disease expansion in Europe (2nd largest global automotive producer, 6.1% of total EU employment) to amplify impact, despite ongoing Chinese economic restart. Likely to compound existing market vulnerabilities (e.g., trade tensions, declining sales) Headwinds faced likely to persist into Q3 given tight inventories (fewer than 6 weeks) and complex supply chains (and thereby minimal ability to shift supply chains) Hubei province accounts for 9% of total Chinese auto production (incl. global automakers and component parts), disrupting global supply chains until activity fully resumes” “Global slowdown in demand to improve and consumer confidence to recover when disease is perceived “under control” – seeing sustained demand in China (e.g., express delivery, food delivery, though hampered by labor shortage) Retailers with thin margins in affected areas likely to face severe drops in demand and, in parallel, liquidity and working capital constraints, forcing companies at risk (especially smaller and medium-sized enterprises) to lay off workers or dock salaries Risk mitigation by pursuing online / omnichannel strategies given accelerated trend in consumer behavior” “Existing market structure already in middle of shifting (e.g., given recent trade tensions, moves to diversify supply chain), and likely to be exacerbated into Q2 Wuhan – a hub for semiconductors and fiber-optics is critical in supply chain worldwide – and shutdowns are impacting sites downstream 28% of South Korea exports are electronics, leading to further supply chain disruptions if increases in-country transmission, despite a China restart Recovery will differ by sub- segment, depending on labor- intensity and availability of dwindling inventory (e.g., 2-6 weeks estimates for semiconductors)” Longest All industries are impacted, with several seeing more severe consequences Taking on COVID-19 Shortest Source: “Coronavirus COVID-19: Facts and Insights” by McKinsey, Feb 28, 2020
  24. 24. In Asia, as consumers’ awareness for their own safety has heightened, they expect the same with brands on the products and services they offer Taking on COVID-19 Source: ”COVID-19: What do consumers expect from brands?” by Kantar, Feb 2020 Insurance Products and services that promise health and wellbeing 65% Food and beverage Products and services that are safe to use 59% Consumer Goods Products and services that are safe to use 56% Health and wellness Products and services that promise health and wellbeing 55% Banking Products and services that are safe to use 45%
  25. 25. The crisis is affecting all businesses… Businesses that require “offline” customer experience 1 Businesses that rely on other countries for supply or demand 2 Any other types of businesses 3 Taking on COVID-19
  26. 26. How can businesses respond to COVID-19? 2 Taking on COVID-19
  27. 27. Taking on COVID-19 1 Focus on business continuity in the short-term Capture bounce-back in the near-term Drive structural enhancement in the long-term 2 3 Source: “COVID-19 Outbreak Update: Status, business risks, and implications” by BCG, February 26, 2020
  28. 28. Facebook company The way brands deal with the crisis now may influence consumers in the future Taking on COVID-19
  29. 29. Insight #2 People expect brands to: • Deliver real value • Act responsibly • Do right by the community, including their employees Brands that were able to deliver purpose in an ethical way saw their value grow twice as much as average brands. Insight #1 People are looking to trusted brands to provide them with safety and security in testing times. They want to be assured that the brands they choose are in control of their supply chains, transparent and trustworthy. Source: ”COVID-19: What do consumers expect from brands?” by Kantar, Feb 2020 The study is based on an online survey of 3,000 consumers between the ages of 18 and 60 across six countries in the region: Singapore, Indonesia, Philippines, Korea, Japan, Thailand. Fieldwork was conducted between 25 and 27 February 2020. Kantar’s panel data and social media analysis over the period between 18 Dec and 27 February 2020 complements the survey. Taking on COVID-19
  30. 30. 30 Adapt your customer communication Re-imagine marketing strategies Plan the path to recovery Taking on COVID-19
  31. 31. Consumers seek proactive communication from brands Taking on COVID-19 • Be authentic • Maintain proactive and frequent contact with your customers • Set realistic expectations for customers • Frequently train your Customer Service teams • Constantly monitor and act upon customers’ feedback Source: “Customer Communications Recommendations during Novel Coronavirus Outbreak”, by Vela, Feb 2020
  32. 32. For eCommerce industries who have been impacted due to supply chains from China Sample Customer Communication Guide Source: “Customer Communications Recommendations during Novel Coronavirus Outbreak”, by Vela, Feb 2020 Taking on COVID-19
  33. 33. Taking on COVID-19 Home page – Add special notice Example notice: “Due to COVID-19, our supply chain and logistics networks in China are experiencing an extended shutdown. We are preparing to ship orders as quickly as possible, but orders may be delayed. Please check My Account (add link) for any updates. Our Customer Service operations are expected to resume starting [Date].” Source: “Customer Communications Recommendations during Novel Coronavirus Outbreak”, by Vela, Feb 2020 Sample
  34. 34. Taking on COVID-19 Shipping Information Page – Add special notice Example: “Our supply chain and logistics networks in China are experiencing an extended shutdown as a result of the coronavirus (COVID-19). While we are working to ship orders to customers as quickly as possible, your order may be delayed. We will provide an update when your order ships.” Source: “Customer Communications Recommendations during Novel Coronavirus Outbreak”, by Vela, Feb 2020 Sample
  35. 35. Taking on COVID-19 Product Detail Page – Update Processing Time If the Product Detail Page indicates Processing Time, we recommend updating this time frame to reflect the latest situation. For example, from normally “1-3 business days”, update to “7-10 business days” or “1-2 weeks”, depending on the actual situation faced by the merchant. Source: “Customer Communications Recommendations during Novel Coronavirus Outbreak”, by Vela, Feb 2020 Sample
  36. 36. Taking on COVID-19 Email to Customers with Orders Pending Processing Subject: Your [Company] Order — Shipping Delays Dear xxx, Thank you for your order with xxx.com. Our supply chain and logistics networks are experiencing extended shutdowns. We are preparing to ship orders as quickly as possible starting from [Day/Month], but your order may be delayed. Once your order is shipped, a Ship Notification email will be sent to you. You may also check My Account ( ) for any update. Customer Service will resume on Month Day. We apologize for any inconvenience caused. Thank you for your patience. Regards, [Company] Team Source: “Customer Communications Recommendations during Novel Coronavirus Outbreak”, by Vela, Feb 2020 Sample
  37. 37. 37 Adapt your customer communication Re-imagine marketing strategies Plan the path to recovery Taking on COVID-19
  38. 38. Food for thought Taking on COVID-19 • Be there for your customers • Re-imagine your existing marketing strategy (branding vs. performance) • Provide an alternative customer experience (online vs. offline, home delivery vs. dine-in, in-store pickup for online orders) • Highlight relevant product benefits • Demonstrate care • Leverage platform strengths
  39. 39. Building Trust and Affinity during COVID-19 Taking on COVID-19
  40. 40. Tips and strategies to help your business have more control in mitigating disruption; and be better placed to deal with the impact of viral outbreaks today. ASSURANCE Build positive sentiment and confidence in customers. ASSISTANCE Provide timely support and alternatives for consumers. ACTION Bring an experience to customers on our platform. Taking on COVID-19
  41. 41. • How is your business stepping up to take precautions? • Reinforce in messaging to remove doubt or fear. Let's fight the virus together. We are committed to serving you through tough times. We are stepping up to serve you better. Patty Shack Learn more Stepping up our food safety ASSURANCE Let's fight the virus together. We ensure our malls undergo a through cleaning process everyday. We are stepping up to serve you better. Feroldi's Learn more Stepping up on hygiene in all our malls. Can you play your role? Taking on COVID-19
  42. 42. Hi there! We would like to let you know your order is in good hands. Our team is putting in the extra hours to ensure you get your product in time. Here is a 10% OFF code for your next purchase 10OFFLUCKYSHRUB Our team is putting in the extra hours to ensure you get your product in time. We are here to listen and provide assistance. Lucky Shrub Message us We are here to answer all your queries. • Broken supply chain could lead to late delivery, or cancellations. • Consider Messenger Instant Replies / Whatsapp Automated Messages to provide support and incentives. ASSISTANCE Anticipate what people want to talk about Taking on COVID-19
  43. 43. • Include a pre-order strategy, or free delivery • Click-to-Messenger/ WhatsApp to connect and deliver personal experiences. ACTION Bring experiences to them on our platform. Book now and travel later. Get 20% off your first purchase. Headline goes here Zoomture Message us TRA HOLIDAY CAN WAIT We understand that you might have postponed your holiday plans. Here are some spots to consider for your upcoming trip. We have added a 20% off to sweeten your holiday! Zoomture- Summer- Holiday-Plans.pdf Taking on COVID-19
  44. 44. 44 Adapt your customer communication Re-imagine marketing strategies Plan the path to recovery Taking on COVID-19
  45. 45. Three scenarios for how COVID-19 could evolve Scenarios for stress testing and contingency planning (subject to change) Source: “Coronavirus COVID-19: Facts and Insights” by McKinsey, Feb 28, 2020 Quick recovery Global Slowdown (Base case) Global Pandemic and Recession Late Q1 • Ex-Hubei China economic restart >80% relative to pre-outbreak levels, with large industrials leading while small-medium enterprises slower • Hubei starts to return to normalcy in March; result of a large-scale health response having an effect • Community transmissions in East Asia (South Korea, Japan, Singapore) and Europe (Italy, etc.) are brought under control End Q2 • Community transmissions in Middle East are controlled • Consumer confidence starts to return, even in setting of community transmissions, due to lower case fatality ratio, case growth slowdown, promising treatment options; consumer demand persists, especially in certain sectors (e.g., food, necessities via online channels) Mid Q2 • Cases peak in multiple regions; evidence mounts that the virus is not resilient to seasonality Aviation, tourism, hospitality sectors back to normal as countries lift travel bans Intra-complex transmission contained; economic impact mostly restricted to Q1 Late Q1 • Continued path to recovery in China. Ex- Hubei China economic restart >80% relative to pre- outbreak levels, with large industrials leading while small-medium enterprises slower • Moderate decline in private consumption and exports of services Early Q2 • China at near-complete economic restart by Q2. Hubei is back to normalcy, a result of a large-scale health response and containment measures having an effect • East Asia, Middle East, and Europe see continued case growth, contributing to perception of “leakage,” impacting economic growth in all three regions. Each goes into lockdown, either government, company, or self- imposed. Early Q2 is the first time they see a reduction in new cases in certain complexes. Newer complexes see localized transmission Late Q2, Q3 • Consumer confidence dampened through Q2 and potentially Q3. Demand recovery depends on evolution of disease, considering potential impact of seasonality, fatality levels • • Impact and recovery differs bysector–e.g., aviation, tourism, hospitality sectors longer to rebound than consumer goods Sustained intra-complex transmission. Global slowdown in 2020 – growth at 1.8-2.2%, down from 2.5% growth envisioned at beginning of year Late Q1 • Ex-Hubei China economic restart >80% relative to pre-outbreak levels, with large industrials leading while small-medium enterprises slower Mid- Late Q2 • Generalized, global spread – East Asia, Middle East, and Europe transmission complexes all see continued case growth until mid-Q2, potentially with less robust health / containment response; mid-to- late Q2 is the first time they see a reduction in new cases • COVID-19 resistant to seasonal effect, or results in higher transmissibility, before health systems can detect and react effectively at scale; continues to expand to other parts of the world Q4 Substantial demand shock that lasts through bulk of year – fall in private consumption, level of exports and services, financial market “contagion” • Consumer confidence remains anemic, although certain sectors might recover earlier; air travel restrictions remain in place until late 2020 Transmission jumps, new complexes. Global pandemic drives a recession that lasts bulk of the year Early Q2 • Hubei starts to return to normalcy, a result of a large-scale health response and containment measures having an effect
  46. 46. Plan the path to recovery Taking on COVID-19 • Display that you care, are empathetic and there for consumers to help them with their daily lives. Contribute to help the society bounce back, heal and rebuild. • Prepare business operation and marketing plans for recovery path Source: “How Alderfer’s E.R.G. Theory can inform post- coronavirus strategy for brands Dr. Mansur Khamitov; WARC Exclusive, February 2020 “
  47. 47. Cross functional efforts required for near term recovery Taking on COVID-19 MARKETING Flexible, fast-response marketing investment • Avoid removing all ads, reprioritize marketing channels during the outbreak. • Evaluate each campaign in context, showing empathy • Plan “bounce-back consumer consumption” campaign in advance, quickly pick up ad spending post-outbreak BRAND Adjust communication message to track consumers • Leverage PR to demonstrate a “reliable” brand image • Develop messaging on how brands help society heal and rebuild • Craft product story around “home & healthy” and create new selling points • Build on positive image and continue to win customer support VALUE CHAIN Build value chain preparedness for a bounce-back • Build-in increased demand into production planning as soon as end of outbreak is in sights 1 2 3 Source: Based on “COVID-19 Outbreak Update: Status, business risks, and implications” by BCG, February 26, 2020
  48. 48. Structural enhancements and capability building along key pillars for continuing success Source: Based on “COVID-19 Outbreak Update: Status, business risks, and implications” by BCG, February 26, 2020 Taking on COVID-19 DIGITAL MARKETING ENHANCEMENT • Enhance digital marketing capabilities for effective outreach; utilize social marketing & effective CRM to stay engaged • Build stronger relationships with eco-system partners for better data-sharing, joint marketing efforts, etc. PRODUCT & RANGE INNOVATIONS • Closely monitor consumer trends & emergence of new demand spaces / occasions • Roll out packaging updates catering to new needs, i.e. occasion- based stock-up bundles CHANNEL EVOLUTION • Shift resources to digital / omnichannel / eComm channel and enhance capabilities in channel operations • Increase omnichannel touch points and improve coordination across channels; syndicate supply chain & inventory mgmt. with channel strategy BUILD VALUE CHAIN RESILIENCE • Institutionalize proactive threat assessment and monitor leading indicators • Build visibility on supply origin and diversify supply sources • Outline contingency plans by crisis type with pre-approved response protocols
  49. 49. Best practice by verticals 1. Consumer Goods 2. Ecommerce 3. Retail 4. Travel 5. Financial Services 6. Gaming 7. Education 1 2 3 4 5 6 Taking on COVID-19 7
  50. 50. FMCG verticals Customer experience & industry trends Business implications Marketing changes Short-term • Consumers are shopping across many FMCG categories, to stock up. • There is increased demand in some categories (food, personal care, OTC), whilst demand has dropped in other categories • There is a movement towards shelf stable and frozen categories • Consumers are shopping across all types of retail trade, smaller local shops are becoming important • Online shopping behaviour has increased, (traditionally lower in CPG) • Flex planograms to prioritise share of shelf for in demand categories to ensure availability • Plan for supply in unexpected category adjacencies • Identify bottlenecks – and flex supply chain to ensure fulfilment • As consumers favour smaller and more local shopping ensure your products are stocked in general trade, mini markets and convenience stores • Plan for omnichannel • Leverage omnichannel, consumers may do more on-line shopping than is normal in CPG • Shift budget to online- people are inside • Craft your story around consumer reassurance rather than product messaging • Keep a leadership mindset: o Brand Awareness campaigns o Instream standalone to reach consumers where they are o Poll Ads to understand consumer’s needs o Host livestream events Mid-term & long-term • Some consumer behaviours may permanently shift (safety, quality assurance, need for transparency) • Consumers will need to replenish core categories • Consumers may be less price sensitive in their quest for quality and transparency • Build visibility on supply origin and embed traceability in contracts • Review product mix and claims based on new consumer demands and behaviours, • Replenish inventory through production planning as soon as end of outbreak is in sight • Build visibility on supply origin and embed traceability in contracts • Outline contingency plans by crisis type with pre-approved protocol • Keep messaging in a leadership mindset, consumer needs centric • Continue to drive omnichannel
  51. 51. eCommerce Vertical Customer experience & industry trends Business implications Marketing changes Short-term • More people are turning to eCommerce to minimize physical conte • Supply chains and delivery are under pressure to cope with increased demand and restrictions • Store closures drive people offline Supply & delivery • Adjust inventory level in real time • Identify bottlenecks – and onboard new supply chain partners via ad-hoc contracts to ensure fulfilment • Regularly update consumers on on delivery • Edit delivery speed in your Facebook page to avoid impact on Post Purchase Experience survey score Product mix & merchandizing • Highlight delivery options and inform about any potential disruption • Offer larger bundles, “Family pack/multi-pack” size to meet consumer needs. • Highlight longer shelf-life products to accommodate the “stock-up” behavior. • Offer promotion for “Pre-order” of products in high demand such as personal hygiene, health nutrition, home cleaning (**) if not having enough stock. • Optimize product mix, promotions and price reductions on most demanded product • Stay top of mind: o Instream standalone to reach consumers where they are o Poll Ads to understand consumer’s preferences o Host livestream events to stay engaged with consumers • Enhance business results: o Run consideration campaign for Pre-order promotion if not having enough stock o Run conversion campaigns promoting health care products o Retarget health care product buyers with dynamic ads to increase discovery of other products that may also meet consumer needs. Mid-term & long-term • Faster adoption of eCommerce shopping habits • Expectations transfer takes place: some of flexibility allowed and speed of information becomes a benchmark • Increased demand into production planning as soon as end of outbreak is in sight • Build visibility on supply origin and embed traceability in contracts • Outline contingency plans by crisis type with pre- approved protocol • Increase product mix • Use Messenger to stay engaged with consumers • Keep momentum on brand efforts done during the outbreak • Reactivate “business as usual” performance campaigns
  52. 52. Retail Vertical Customer experience & industry trends Business implications Marketing changes Short-term • Less frequent store visits due to self or government limitations changing dynamics of retail • Stockpiling behaviour especially during initial phase changes the product mix during grocery journeys • Delivery options become a competitive advantage Product mix & merchandizing • Offer large bundles, “Family pack/multi-pack” size to meet consumer needs. Buyers make less shopping trips but with bigger basket size each trip • Use machine learning and insights to showcase most relevant products • Design longer shelf-life to accommodate the “stock- up” behavior. Supply & delivery • Adjust inventory level in real time, communicate local stores inventory where possible • Identify bottlenecks – and onboard new supply chain partners via ad-hoc contracts to ensure fulfilment • Update delivery policy and communicate delivery options which minimize person-to-person contact (BOPUS, drive-in, etc..) • Edit delivery speed in your Facebook page to avoid impact on Post Purchase Experience survey score • Stay top of mind: o Instream standalone to reach consumers where they are o Poll Ads to understand consumer’s preferences o Host livestream events to stay engaged with consumers • Enhance business results: o Highlight channel choices online vs in-store and range of options o Run consideration campaign for Pre-order promotion if not having enough stock o Run conversion campaigns promoting health care products o Retarget health care product buyers with dynamic ads to increase discovery of other products that may also meet consumer needs. Mid-term & long-term • Flexible shopping experiences and “expectations transfer” might create the new norm in omnichannel • Greater online-to-offline consumer expectation • Increased demand into production planning as soon as end of outbreak is in sight • Build visibility on supply origin and embed traceability in contracts • Outline contingency plans by crisis type with pre-approved protocol • Increase product mix • Use Messenger to stay engaged with consumers • Integrate learnings to operations
  53. 53. Source: “Covid19 impact on Travel trends” report by Sojern, Feb 2020 Customer experience & industry trends Business implications Marketing changes Short-term For accommodation providers: • Highlight special measures that your business is taking during this period, such as routine temperature checks, disinfecting of common areas and proper sanitation methods. • Include a list of nearby clinics and emergency medical services contact information, as well as any on-location nurses or medical staff. This will help reassure guests that it is safe to enter the premises and that they will be taken care of during their stay. • Communicate easing of cancellation policy for those traveling from/to the affected areas For tour providers: • Highlight answers to commonly asked questions about cancellations and refunds or put up information about what precautionary measures your business is taking. • You can pin important announcements to the top of your Facebook Page for ease of viewing. Stay engaged with your customers via Messenger • Focus on offering for near future holidays/events as consumers make decision in a shorter lead time (*) • Craft your message around well-being • For near future travel planning, promote domestic destinations. • For further future travel planning, promote areas seen as remote and less affected • Offer flexible policies on booking changes to increase booking confidence. • Offer book now, pay later policies. • Offer discounts, promotions Promote your brand image as trusted and responsible travel providers: • Brand awareness - Reach campaign with a message of your brand trustworthiness and reliability, promoting your rigorous measures to ensure travelers’ safety. • Video campaigns showcasing client appreciation of your responsiveness, safety first standards • Host live-stream educational workshop on travel safety • Poll ads to understand travelers’ preferences of destinations Enhance your business results: • Conversion campaign retargeting people who visited your website and viewed near future holiday offers on your website • Conversion campaign retargeting people who view domestic holidays on your website Mid-term & long-term Continuously update your page (with indicated dates) to ensure travelers that your business is on top of any current trends/issues Build a wide network of destination suppliers to shift focus different destinations if needed. Continuously build image of a reliable provider Travel verticals
  54. 54. Customer experience & industry trends Business implications Marketing changes Short-term PERSONAL - Consumers may look to digital first solutions to reduce f2f interactions - Customers will look for safer investments in the short term - Contactless payments are likely to be encouraged by WHO, which will favor FinTech firms and encourage traditional banks to drive digital innovation. BUSINESS - Potential to see greater collaboration across FinTech and Traditional banks - Larger lenders may offer working capital solutions to their small businesses and/or flexibility on loans - Will need liquidity help/guidance INDUSTRY - Transaction volumes likely to reduce, especially cross boarder and international payments, which will cause reduction in fees and loss of profit to smaller FinTech - Working from home Guidance as large companies are subjected to employee cases - Market instability will likely reduce VC investment. Stay engaged with clients through messaging services in place of branches/contact centres Collaboration across Traditional and FinTech firms to drive innovation i.e. Digital Banking services Contactless payments Leverage bank landing pages for most up to date information; rates, product offers and guidance Be open and accessible for customers An possibility to test online services i.e. digital lending services Brand - Provide a reassuring voice to stay top of mine. Video/Story - Partnerships with other services to enhance customer experience at this time i.e. Mastercard and Deliveroo Conversion - Focus on app engagement strategies and enhancing service through online channels - Retarget based in intent i.e. insurance - Build greater in app strategies i.e. for businesses, loans/re payment offers Operational guidance - Workplace - Use messenger to stay engaged Mid-term & long-term Continued innovation for contactless payments Larger lenders may look at refinancing options, or change of terms on loans to keep small businesses thriving. This may expand to trade and supply chain finance. Lead gen focused lending campaigns to boost economy Showcase the power of collaboration across traditional and FinTech to build brand within industry Financial Services verticals Source:https://thefinancialbrand.com/93679/digital-banking-fintech-finance-investment-coronavirus-impact-trends/
  55. 55. Customer experience & industry trends Business implications Marketing changes Short-term • Housebound consumers likely to increase online leisure and entertainment activities. • Lapsed players are likely to re-engage with old titles before seeking new experiences. • Reduced spend in other entertainment media may be an opportunity esp. for IAP, MTX, DLC etc. • Potential for increased frugality during early stages while people ‘wait & see’. Also high potential for income impact for many sectors that may have knock on. • Online/Social play genres and titles likely to see a spike as people seek connection to the outside world. • Time at home could be a boon for console and PC games but mobile unlikely to adversely affected. • RMG - for events/games not cancelled, however unlikely, pivoting to BCD/broadcast only is likely to see people turn to online/social betting. • Re-engagement programs likely fruitful, but tone of creative / aggressiveness of campaigns should ‘proceed with care’ • Cross-promotion opportunity is very present. • Competition for share of time will be high – both with other titles but also other media • Where spending reticence exists IAA / Hybrid presents an opportunity. • Social connection will be key, online, co-op, competitive play presents an opportunity. • Title (and hardware) release delays are likely with supply chain disruption and labour shortages in China • Event cancellations will impact traditional consumer awareness campaigns (esp. E3) • Console publishers likely to see increased digital purchase which may lead to price compression with physical over-stock at retail. • Likelihood is wide fixture cancellations and betting opportunities radically diminished • Competition for inventory will be fierce, consider new approaches and lean into creative, S4S etc. • Offline / ATL announcements at events like E3 likely not to happen – this presents an opportunity to leverage digital channels and gain innovators / early mover advantage. Competition in this space will intense. • Sensitivity to aggressive marketing will be high, yet competition for inventory will equally be high • Standing out in a commoditized market will be key, creative best practices and testing as well as placement diversification (stories) will provide differentiation. • RMG - Double down on Casino opportunity for retention and to take advantage of diminished sports betting opps. • RMG - Potentially ideal time to focus on brand building. Widen scope of audience, shift tone to ‘entertainment e.g. “When they’re back...we will be right there”. • Nimble workforce and online collaboration may become pivotal with WFH policies. Correct tooling, and guidance will provide advantage - think Messenger, Workplace and WhatsApp to stay connected. Mid-term & long-term • Fence sitters and lapsed players likely to increase play time but expect a declining curve as normalcy returns. • Consumers not adversely financially impacted may be more liquid – new console releases may be more attractive • Player bases likely grow overall (esp. Mob + RMG), including lowered barrier to in app purchase / high acceptance of IAA • Expect normalcy to return to gaming business. • Potentially for market to be more diverse (gender, age, demo) • Player bases likely grow overall (esp. Mob + RMG), including lowered barrier to in app purchase / high acceptance of IAA • RMG Opportunity for longer term brand differentiation and audience growth & diversification through thoughtful comms. Gaming
  56. 56. Education verticals Customer experience Products Marketing Short-term For offline schools: • Highlight special measures that your business is taking during this period, such as routine temperature checks, disinfecting of common areas and proper sanitation methods. • Divide classroom into smaller groups • If the school is closed, transparently communicate refund policies, re-scheduling of paid courses. • Update Facebook page on their constant efforts to ensure students safety. • Pin the post and edit with updated dates For e-learning providers: • Ensure trial policy transparency • If class belongs to a series, make sure buyer is aware of the fact to avoid potentially misleading information. For language centers/tutoring centers • Offer online classes • Offer free trial classes • Offer classes that complement the students’ knowledge gap due to school closure • E-books for parents to use • E-book for students’ self-learning • Online test For e-learning providers • Diversify teaching topics • Sign ad-hoc contracts with available teachers to meet the demand (for live classes) • Provide e-resources that parents can leverage in coaching their children during school closure For centers that are currently closed: • Shift budget from Lead Generation to Reach campaign with the center’s USPs to stay top of mind. • Video campaign using Instream standalone to reach parents and students where they may spend increasing time on • Playable Ads/AR ads to remain interactive with students For centers that switched to offer online services: • Video View campaign on their new service, showcasing “online learning demo” • Lead generation campaigns to convert video viewers to sign up for online classes • Conversion campaign to promote eBook download • Lead Generation campaigns for online tests, free trial classes • Retarget people have tried the test/downloaded the tests/e- books For existing e-learning provider: • Reach and Frequency campaign to reach out to as many parents and students that may not have heard of their services. • Conversion campaign to drive sign-up/subscriptions • Lead generation campaign to recruits additional new teachers to meet demand Mid-term & long-term • Update students, parents on school centers’ closure period • Build and maintain an image of a reliable and trustworthy provider. Showcase school’s ability to innovate and adapt to changes with variety of online and offline courses. Continue to stay engaged with parents and students on Messenger Source: “COVID-19 Outbreak Update: Status, business risks, and implications” by BCG, February 26, 2020
  57. 57. Source: “COVID-19 Outbreak Update: Status, business risks, and implications” by BCG, February 26, 2020 IMMEDIATE RESPONSE Customer Communication 1 • Establish emergency response mechanism • Adapt customer communication messaging • Maintain on-going dialogues with consumers, ensure basic operations remain stable • Effectively respond to changes in consumption scenarios • Focus on marketing on relevant products Focus on business continuity and maintain communication with customers • Estimate market recovery timing and ensure sufficient marketing investment and inventory distribution, to prepare for business rebound • Leverage learnings to enhance internal capability of the company, gain visibility on supply chain resilience, focus on developing contingency plans for future crisis Seize demand rebound and make long-term strategic adjustments 3 MID TO LONGER TERM Demand Rebound & Structural Enhancements 2 SHORT TERM Change Management • Adapt communication messaging to respond to changes • Adapt “Assurance – Assistance – Action” creative framework • Re-think existing strategies on “brand” vs. “performance” campaigns • Provide alternative consumer experience • Capture demand bounce-back signals • Ensure sufficient marketing investment and avoid stopping all ads • Leverage platform strengths Adapt communication messaging, re-adjust marketing strategy and ensure sufficient marketing investment Summary: COVID-19 Action Plan Taking on COVID-19
  58. 58. Thank you

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