The first stage was shock, followed by denial and then paralysis. People are harking back to better times, a mood reflected in the profusion of nostalgic ads and a revival of retro food brands. Yet some marketers believe consumers are ready for the next stage of recovery: acceptance and moving on with optimism.
Volkswagen certainly hopes to catch this zeitgeist with its latest ad, in which a man leaves his office carrying his possessions in a box to the accompaniment of the Morecambe and Wise song Positive Thinking. He walks past 'Final Sale' signs in shops, and estate agents putting up 'To Let' boards before getting in his trusty Passat and heading toward a literal and metaphorical light at the end of the tunnel.
'In these, the gloomiest of times, the Passat stands out as something reassuringly dependable,' says Chris Craft, director at Volkswagen UK. 'The ads portray this positivity and provide a fresh and welcome burst of optimism.'
According to Sarah Carter, strategy director at DDB London, which created the ad, it was received well by focus groups. One participant commented: 'This is an ad for our times... it shows how it is, but leaves you feeling happy and that things will get better.' Another said: 'It leaves you feeling positive despite the recession.'
Hungry for optimism
'People in research seem to be saying it's time we got on and felt more cheerful about things,' says Carter. 'A lot of people are better off at the moment: they have their jobs, oil is cheaper, there are lots of promotions running and products are cheaper than ever. For many, it's not as bad as the media says.'
Consumer research carried out by branding agency Dragon Rouge backs this view. 'All our research indicates that consumers are hungry for brands to lift them out of the gloom, rather than remind them of the situation,' says Kate Waddell, managing director, consumer brands, at Dragon Rouge. That is not to say that consumers are not looking for good value and deals; however, she argues that 'recession-focused, "money is tight"' messages are 'more off-putting than helpful'. Yet Waddell makes a distinction between pure discount messages and ones that also carry a branding element, such as Sainsbury's 'Feed your family for a fiver'. 'Pure discounting messages are not cutting through. They don't really work unless there's another emotional hook.'
Another supermarket brand that has struck this balance successfully is Waitrose, with the roll-out of its own-label line Essential Waitrose, which has already surpassed the £100m sales mark. It is backed by a campaign that experts generally agree has managed to convey the idea that it offers quality food and value for money.
In contrast, Carter says that Asda's relentless price discounting messages are a bad move. 'It has moved away from the Victoria Wood ads to focus just on price; some might say it has gone too much down the price-driven avenue and is being overly "salesy". It's like Asda is hitting people over the head repeatedly with a price message.'
Research agency 2CV has also found that brands adopting a positive spin on the credit crunch have achieved significant cut-through in recent months. Two campaigns in particular have stood out for consumers: Virgin Active's 'Lighten up' and Schweppes' 'Experience matters'. The first gently mocks Prime Minister Gordon Brown and Conservative leader David Cameron on exercise bikes; the second shows bankers stranded on rapidly melting ice-caps.
Darren Hanley, 2CV research director, believes consumers like these campaigns because they have successfully tied humour to the serious issues of political turmoil and financial instability. He says brands adopting this strategy will gain consumer confidence by 'playing on the recessionary style in a more inventive and creative way'. 'In tipping their cap to the recession, but being creative and using core messages that fit with the brand values, brands can make consumers take notice,' he adds.
Although many brands have ditched indulgence messages in favour of price-discount campaigns, research also suggests that consumers remain receptive to the idea of treating themselves, particularly on smaller-ticket items. A Mintel study last year found that consumers were shifting to a mindset of small pleasures to help them get through the recession. More than a third of interviewees (34%) said they tried to make the economic conditions more bearable by hanging on to little luxuries. One example of a brand playing on this trend is Galaxy chocolate, with its emphasis on pleasure and 'me time'. Another is bathing brand Radox, with ads focusing on pleasurable escapism.
'These little indulgences act as sanity purchases, allowing people to feel better about economising in other, less lifestyle-oriented, areas,' says Lucy Unger, managing partner at brand and design consultancy Fitch. 'We have seen this manifested through the launch of [instant coffee] Starbucks Via and its "Never be without great coffee" tagline, enabling consumers to enjoy Starbucks for $1 a cup.'
She also cites Recession Bites chocolate, which uses the line 'While the recession may not end anytime soon, Recession Bites add a little sweetness to this bitter time'.
Another tack brands have taken in conveying a more upbeat message is to play on the idea of camaraderie and people pulling together in adversity. 'There are several campaigns that encourage consumers to feel a part of a brand and have their say,' says Waddell. 'Walkers' "Do us a flavour" was an obvious recession antidote; T-Mobile's "Life's for sharing" campaign and Weetabix getting consumers on board with an inter-active game urging us to "Find Nigel" are also examples of this.'
Aside from injecting a little positivity into consumers' mood, brands can also have a role to play in restoring confidence. This is the view of Visit London marketing director Martine Ainsworth-Wells. The tourism body is running 'Only London', an upbeat, quirky campaign highlighting the unique and often cost-effective ways to have fun in the capital, which it hopes will contribute £60m to London's economy.
'It's crucial that we encourage consumers to make the best of their leisure time, so they don't feel guilty spending money on themselves to have fun. They deserve it,' says Ainsworth-Wells. 'From the business side, it's crucial that we are seen as being on the front foot and very positive, and we are supporting the industry as a whole in terms of confidence. It's vital, in an economic slowdown, that we are very proactive and take those messages out to people.'