Matt’s Creative Advertising Blog

How to Advertise in Bear Market – A Supermarket Example

September 29th, 2008 Filed under: Uncategorized — Advertising Author

Many have pointed that consumer confidence has changed over time. Not the level of it which is quite low these days, but how this index is determined. The new factor that influences customer confidence is the level of the stock index. Higher stock-quotes increase consumer confidence; more wealth translated directly into buying opportunities.

Living in a bear-market requires a new way of advertisement. Or either market has its best advertisement approach.

In a bull market it is enough to show pictures. The more exotic the higher their impact. So a display of a World cruise, an exotic island with white sand for a holiday presentation or a simple but well prepared chicken on the window of a supermarket. Prices are not shown in any of these cases. The main drive was to draw attention and to provoke consumers’ desire. In a bull market the image is more important than the price.

In a bear-market that approach doesn’t seem to work – on an average. What people desire most is saving opportunities. The same pictures of the cruise-trip, exotic holiday or the prepared chicken are downsized and overshadowed by the main message: the price. In the supermarket I see only the 7,99 and read – there is even no picture – about the chicken. The price is the main communication element. People are no longer fooled by niceties and dreams.

In a bull market consumers are revenue driven, in a bear-market they are cost driven and price conscious.

A similar switch is seen in management. In a bull market the main focus is on revenues, in a bear market the main focus is cost cutting.

H.J.B.

2008 Hans Bool