As Western economies finally begin to shake off the shackles of the Covid pandemic, increasing numbers of brands are relying on solid marketing strategies to ward off the buffeting effects of the global cost-of-living crisis.
For all intents and purposes, the pandemic has very much ended in most of the world – its long-term economic impact however, is set to cast a very dark shadow over global finances for years to come.
It’s at times like these that consumers crave stability above all else and marketing can offer businesses a quick and easy fix in this regard – developing and maintaining a steady and cohesive brand identity is paramount to customer recruitment and retention.
With global markets at their most volatile in decades, it is no surprise that several large multinationals such as Domino’s and Just Eat have revealed they will be taking a renewed focus on marketing for the second half of 2022.
READ MORE: Coca-Cola boosts marketing spend as prices rise
Coca-Cola
Omnipresent global beverage powerhouse Coca-Cola has always recognised marketing as crucial to its success – it is no coincidence that it is one of the most recognised brands on the planet.
Chief financial officer James Quincey recently announced that Coke would be boosting investment in what it calls ‘consumer-facing’ marketing – recognising that how a brand is perceived by its audience is key to maintaining success.
Acknowledging marketing’s importance in retaining customers, Quincey added: “Our new marketing model is focused on adding and retaining consumers, and we’re doing this through an ecosystem of experiences that link consumption occasions with consumer passion points.”
Speaking to Marketing Beat, founder and CEO of London-based Imagination Growth Marketing, Jack Whiting highlighted just how crucial he believes continued investment in marketing can be for major brands in a post-pandemic environment.
“It’s vital in the current situation the world is in with general markets trading at around 30-40% down compared to when we were in lockdown,” he says.
“It’s key for brands to spend more, but in a more efficient way to dominate their markets and continue to be competitive.”
READ MORE: Burger King roasts its fast-food rivals with latest OOH campaign
Burger King
Coke’s focus on marketing is being mirrored by Burger King, another US-based food and drink giant, which has recently lauded the benefits of the modernisation of its marketing efforts, following a recent emphasis on maximising digital strategies to reach more consumers.
José Cil, CEO of parent company Restaurant Brands International said at the time that: “Burger King’s strong brand positioning has served as an incremental growth driver above and beyond the macro recovery in many of our markets.”
He added that the chain was now focused on “media firepower” and “fewer, well-tested, high quality and high-impact messages”.
Burger King’s decision to refocus on getting its marketing content right, rather than repeatedly churning out uninspired campaigns could be key its future success, as Whiting explains: “They have to get it right, what we are seeing is that content is key.
“Look at the upsurge of things like TikTok and the massive part reels is playing on Instagram. All of this is showing content is more powerful than ever.”
READ MORE: Domino’s announces plans to move away from brand-led marketing campaigns
Domino’s
Pizza delivery chain Domino’s has also opted to splurge on marketing as times get tougher, announcing a 45% increase in investment across the second half of 2022.
Interestingly however, the firm will look to move away from brand-focused campaigns, such as its famous ‘Domin-Oh-Hoo-Hoo’s’ ads, and instead place a greater emphasis on price-based promotional activity – such as its ‘50% off when you spend £30 on pizza’ deal, which launched earlier this year.
Outgoing CEO Dominic Paul has earmarked this year’s fourth quarter as the brand’s “biggest of the year” for marketing activity, calling the upcoming 2022 FIFA World Cup a “real opportunity” for the chain.
Domino’s decision to return to a stripped-down, back-to-basics marketing strategy sees the firm place a renewed emphasis on its bread-and-butter content.
“What we’re seeing is that strong content is working much better for brands in their marketing strategy which is great for increasing marketing budgets and keeping overall costs down whilst maintaining a positive return,” Whiting comments.
READ MORE: Just Eat unveils Katy Perry as new celebrity partner for upcoming ad
Just Eat
Further vindicating the importance of prioritising marketing spend in such unpredictable times, food delivery outfit Just Eat has upped its spend by a staggering £100 million.
With the launch of high-profile campaigns such as its sponsorship of the UEFA Champions League and its partnership with pop superstar Katy Perry, Just Eat has well and truly recognised the benefits of brand building.
CEO Jitse Groen commented on the brand’s considerable recent success, saying: “After a period of exceptional growth, Just Eat Takeaway.com is now two times larger than it was pre-pandemic. Whilst this growth required significant investment, we have continued to focus on executing our strategy.”
Just Eat’s decision to back its marketing department in a big way echoes current market trends – the stability of a brand’s image is key to navigating such troubled waters – as Whiting points out: “I’ve heard of so many brands that have reduced budgets and are questioning why their market share is down.
“The brands I’ve worked with have increased budgets and have seen overall cost go down and revenue and opportunity go up.”
READ MORE: Is Mad Men-style marketing making a comeback?
This increase in investment shows that the importance of marketing to a business’ success can never be underestimated, even when budgets are being slashed as belts are tightened across all business sectors.
At a time when consumers are craving stability above all else, marketing allows brands to forge close, personal relationships with their customers by maintaining a strong, consistent brand identity and bespoke, tailored content. Long may it continue.
Click here to sign up to Marketing Beat’s free daily email newsletter
