Challenging the new normal

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Homemade problems are just adding to our woes. Rising personal debt levels, the devaluation of the Rand with the consequence of imported inflation, the drought with its impact on food prices, rising electricity cost and many other factors put additional strain on people's wallets and a cap on local consumption.

Not surprisingly the IMF just slashed South Africa's projected growth rate by almost half to 0.7%.

Many marketers react with panic. Budgets are slashed left, right and center. Activities are cancelled. And the 'red pen' is replacing discussions around growth opportunities, brand health and new launches.

Probably not surprising. South Africa is a young country, and so is its marketing community. Not many have been exposed to prolonged periods of low or even negative growth. They haven't learned how to optimise budgets, separate fat from muscle, get more bang for the buck. During a recent meeting with the CEO of a major FMCG company he complained about his people slashing the investment for training to improve margins. And he is right, it's a sure recipe for disaster.

Recessions are separating the good from the ugly. Successful companies see it as an opportunity to grow, to aggressively build share when competitors are overly cautious. And I know what I am talking about. Since 2011, the year Lehman started to impact South Africa, J. Walter Thompson Group has grown with double digit rates in South Africa. A good example of what's possible in times where other agencies seem to just disappear from the surface of the earth.

J. Walter Thompson has steered clients and brands through almost every recession around the world. From America's Great Depression during the early 30's, via the Great Recession in South America, the Asian Financial Crisis in the late 90's to the impact of Lehman in more recent times. This has created a wealth of experience on how to manage brands in difficult times. Be it increasing opportunities to sell impulse products in times where people go shopping more frequently while reducing budgets per trip, to replacing fluffy emotional propositions with more substantial reasons to purchase, the list of learnings is long and covers almost every category imaginable.

Recessions are a challenge. But with the right mindset, clever marketing and decisive action marketing it is possible to grow even in difficult times at the expense of more hesitant, cautious and cost-cutting competitors. It is possible to challenge what many people call the "New Normal".