Co-creating the future

Study on changing consumer attitudes going into 2010

Last week we ran two workshops with consumers exploring the question – ‘What has changed for you in 2009?’ We are currently producing a report on changing consumer attitudes in 2009 and how these will affect behaviours in 2010. This document will be available at the beginning of next year and will be designed to give marketers an insight into a changed consumer mindset going into 2010. However, being something of a report writing maverick, I have decided to give Blog readers a sneak peak at the key ideas that we will be exploring and tell you a little bit about our process.

The thinking behind the sessions was that we had run a very successful Expert Forum on The Post Recession Consumer back in May. On that occasion we used projective techniques to engage with consumers and experts on how they thought their attitudes and behaviours might change coming out of this recession.

The focus of this piece was very different. We framed it as a retrospective, hoping to tap into current emotions, hopes and concerns and the direct impact that would have on 2010. If the Post Recession Consumer gave us some strategic insight, this was designed to support immediate tactical initiatives for companies. Incidentally, this was a Promise funded exercise so no one else’s agendas were in the room apart from our own.

Anyway, the key themes coming out of the research were:

1)      A hardened consumer – This was the key theme running across the two sessions. This was a much harder, battle scared group that we were talking too in the summer. They did not see the light at the end of the tunnel casting a warm glow over their personal, professional and financial situations. The recession had affected them all in different ways and had made them tougher, much more ruthless when it came to making brand choices and far less loyal. They were more savvy and had a hard nosed, more transactional approach to their relationships with brands.

Impact for 2010 – This winter consumers will engage with brands, products and communications that speak to their needs and offer them support

2)      Diversification – 2009 has taught consumers that they have to diversify, in all areas of their lives. This had meant that Waitrose shoppers are not just trading down to Sainsbury’s but are shopping at Lidl and Aldi too. It means that people are learning new skills in their spare time for fear of redundancy and obsolescence. We also heard about people trying to broaden their spheres of influence and being more socially conscious.

Impact for 2010 – People will be trying new things. If the price is right, and people see you as adding value to their lives, people will experiment

3)      Seize the day – Over the last 12 – 18 months the groups talked about having learned to take nothing for granted and taking opportunities as and when they came up. The consumer mindset is to snap up a bargain, even if they weren’t currently in need. Marks and Spencer’s Penny Bazaar was mentioned as an example of stocking up on small gift items, as were efforts made by chain restaurants such as Pizza Express to entice consumers through 2 for 1 e-vouchers – as one consumer put it “making hay while the sun was shining”.

Impact for 2010 – Use ballsy loss leading sale offers to create noise in a crowded market 

4)      Brand winners and losers – We talked about which brands had stood out in 2009 as being in touch with consumers. It is no surprise that the supermarkets were mentioned – M&S, Tesco’s and the low cost brands like Aldi and Lidl being viewed very positively. The Waitrose essentials range was seen as too little too late by these groups who had already moved on. Value retailers were the main focus of discussion.

The problem for brands here is that price consciousness has caused something of a brand vacuum. The emotional pulling power of brands has been reduced to a price, value, convenience equation. In other sectors though, such as travel, trust is still key. Where the investment in the purchase is higher, the brand still plays a crucial role in decision making.

Impact for 2010 – Combine product, price and brand led advertising – giving emphasis to the price led stuff during the next three months.

Please look out for the full report. As well as detailing more themes and giving recommendations we are also looking in more detail at the long term impact 2009 has had on consumer attitudes.

This entry was posted on Friday, 18 Dec 2009 at 1:46 pm and is filed under General.
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