The secret to weathering an economic downturn lies in effective branding and investing in your brand, according to industry giants Heineken and Camelot UK National Lottery.
The leading consumer brands highlighted the importance of being distinctive and finding your value zone when surviving challenging times during their respective presentations at last week’s annual MAD//Fest event in London.
Representing the Dutch alcohol giant, Heineken marketing director, Michael Gillane said that – while the company had “weathered the storm pretty well” – the labour and energy-intensive brewing business continues to face challenges.
While 2022 volumes had returned to pre-pandemic levels, he revealed that the sector is still battling with a range of issues, including inflation and the ever-changing drinking patterns of Gen Z.
Similarly, Camelot UK Lottery head of marketing, strategy and planning, Rachel Moss spoke about the importance of being able to “ride the storm” in the wake of falling sales and, most recently, the business losing its licence to operate the lottery from 2024.
Heineken’s slow but rocky return
Gillane’s talk comes just months after the second-largest brewer in the world revealed that it had increased its marketing and sales spend by almost a fifth (22.4%) to £2.4 billion (€2.7 billion) last year, despite declining sales during 2022, when total volumes declined by nearly 10%.
The Dutch brewer – which owns hundreds of brands including Heineken, Amstel and Birra Moretti – said it hoped to lure UK consumers hit by inflation to try more ‘upmarket’ beers, despite suggestion that consumer demand was dampened by higher prices – mirroring the global decline seen in alcohol sales during the first quarter of 2023.
Talking more specifically about brand innovation in a downtrend, Gilliane stressed the importance of retaining development – from content to packing, despite the expense, as he believes it will benefit a business in the long run.
The discussions also shed light on the difficulties of communication within a brand, especially during downturns when adjustments to budgets or the introduction of “redlines” are necessary.
Talking with CvE global president, Paul Frampton-Calero, Gillane also emphasised the importance of Heineken’s senior management team acting as brand advocates, recognising how crucial marketing is for a company’s recovery.
“When I joined in 2012 the executive board in Amsterdam, it did not have any career marketeers on it.” he said.
“And we’ve made a conscious choice over the last six, seven or eight years to build a broader culture of marketing, [so it is seen] not as the colouring-in department, but as the growth engine.”
National Lottery’s fight to bounce back
Similarly, Camelot UK Lotteries head of marketing, strategy and planning, Rachel Moss spoke at the London marketing event about how to ‘ride the storm’, building a case for brand investment.
Advice included “find your value zone” and “speak business not marketing”; the latter referring to the art of effectively communicating to other departments within your brand, in order to get the entire team to truly understand the criticalness of marketing.
Advice from the company – which now has 11 million digital users – also included further steps such as ‘build your team’, ‘think measurement first’ and ‘keep your investors updated’.
The talk comes after National Lottery operator Camelot announced a fall in sales in 2022 amid signs players had ‘tightened their belts’ due to the cost-of-living crisis, a downturn that was accompanied by the group losing its licence to operate the lottery from 2024 – a first since the operator launched the prize draw in 1998.
The financial year 2022/2023 saw a change of luck for the operator, as Camelot UK reported a total National Lottery sales of £8.2 billion, marking the second-highest annual sales total in its history.
Commenting at the time, Camelot co-CEOs, Clare Swindell and Neil Brocklehurst, said: “We have more exciting plans lined up for the year ahead to ensure that The National Lottery remains front of mind and brings people together at key national moments”.
