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This is being described as a very different kind of recession.  Yet while consumers are certainly behaving in all sorts of unpredictable ways, there are some aspects of human nature that never change. An opportunity to escape, just for a moment, from the hardships of the daily grind, will always appeal.

This insight was confirmed to us at OgilvyAction recently when we developed an on pack promotion for one of our clients. Put yourself in the shoes of the consumer. You’ve just picked up a promotional pack and to your delight, you discover you’ve won the top prize. You’ve got two choices; £10,000 or a ‘holiday of a lifetime’ (to the value of £10,000). 

It’s a no brainer, right? The £10,000 offers you ultimate flexibility.  Put it in a bank in case the worse happens, pay off the credit cards or even book your a tailor-made holiday. Well wrong, actually. Over 90% of the top prizes claimed so far have been for the ‘holiday of a lifetime’. 

This got me thinking.  The current dizzying merry-go-round of price discounting, money off initiatives and the like, is a dangerous road that too many brands (and own label too) are going down. Short term incentives to attract the bargain savvy, recession strapped consumer are unsustainable in the long run.

The vast majority of people are still in work, likely to be paying less for their mortgage and still fancy treating themselves and going on holiday. The things that excited and entertained them last year are likely to remain unchanged. Brands would do well to remember this and to understand the importance of value, escapism and reward as the core pillars of successful marketing in good times as well as bad.

If you need some convincing of the appeal of emotionally driven marketing, take a look at some of the trends being talked about. Nostalgia is a biggie and an example of ‘Comfort Blanket’ marketing if ever there was one.  It’s well documented that in bad times people often seek relief by turning to the past. Clearly then brands need to make sure that they’re connecting with consumers in these difficult times on that emotional level.

When it comes down to it, the key word is balance. Brands need to look at their promotional strategy as part of a balanced marketing diet; part value, part added value. Currently the see-saw has tipped so far towards ‘discount’ that this is fast becoming the new promotional ‘wallpaper’, with High Streets having more in common with a Souk.  Brands who can seamlessly blend ‘short term price and value’ with medium term brand escapism will be the ultimate winners.

This recession like all others will end.  It’s the brands that have made their consumers feel valued, entertained them and even made them laugh that will emerge stronger.

Here’s betting that a couple of years from now, when the recession is a distant memory, those consumers who selected the cash prize in the promotion I mentioned earlier won’t remember how they spent it.  You can be sure that those who chose the holiday will forever associate a magical experience with the brand that gave it to them. 

The Power of Dreams...now where have I heard that before?