‘I can’t believe it’s butter – at ￡9 a pack!’

As the cost of living crisis starts to really bite, what can brands do about it?

In one of her famous sketches, the late great Victoria Wood referenced the Ghost Train at the now demolished theme park in Morcombe.

She said the Ghost Train went through a supermarket with a load of OAPs on board who shout out ‘just look at the price of butter – isn’t it scary!’

?That horror show is now very much a reality for all of us.

Over ￡9 for a pack of Lurpak in Iceland.

Anti-theft security tags on packs of butter in supermarkets.

This is what we are now living with, and things are only going to get more challenging.

The hard truths of the inflationary environment mean that:

• Prices are going up.
• Disposable income for the majority is going down.
• Shopper confidence is reducing meaning retail spending is decreasing.
• People are increasingly having to make tough choices about where they shop and what they buy.
• For many, simply managing and getting by will become a daily pre-occupation requiring serious time and effort.
• The most disadvantaged will be even more disadvantaged

21% of Brits see their personal financial situation as being worse in 12 months’ time, compared to now. This figure rises to 29% for people over 55, and 30% for people with disabilities. (McCann Worldgroup UK's ‘Truth about Britain' Study 2022)?

If you don’t believe me, just go to your local supermarket and see how many people are already walking about with shopping lists to help them stick to tight budgets or suffering the humiliation of putting back items at the check-out, or asking the check-out person to stop when they reach a certain spend limit.

We are already seeing shifts in shopper behaviour.

Ken Murphy, CEO of Tesco, says they are seeing massive shifts in purchasing behaviour by shoppers, from brands to cheaper private label.?

At the same time the discounters like Aldi are seeing significant rises in shopper numbers coming through their doors.

In these difficult times, what can brands do to not be ‘tone deaf’ and show real understanding to their customers and potential customers.

The reality of the current situation is that there are no easy solutions for people and any brand promising to be that solution is simply not credible.

?Shoppers are facing tough choices about trading down, or even out of certain categories altogether to make savings just so they can manage to pay their regular everyday bills.

What can and should brands do to help?

Here are 3 simple things.

Be Upfront, Honest and Empathetic

76% of Brits agree that “More than ever before, it's important for brands and companies to have a voice on social issues”?(vs 68% in 2021, a rise of 8% in the past 4 months) and “A better understanding of ordinary people”?is the #1 thing that would make CEOs better at their jobs (chosen by 43% of Brits). (McCann Worldgroup UK's ‘Truth about Britain' Study 2022)?

Brands need to acknowledge the pressures that people are facing, and the pressures that they, the brands, are facing too.

They need to show what they are doing to manage these pressures as best they can to minimise the impact they have on people, without overpromising or using ‘weasel words’.?

Most brands and their advertising get ignored by people because it ignores them and does not treat them with the respect and intelligence they deserve.

Most people can smell bull-sh**t a mile off, especially when it’s concerned with something that is affecting their lives so directly.?

So don’t make glib statements or false promises.

No brand has all the answers or is immune from what is happening, but brands that show that they are doing their best to help manage the situation for their customers benefit are the ones that will make a meaningful connection with them.

Be Useful

If a brand cannot solve all your woes, it can at least be useful.?

This links strongly to being ‘Upfront, Honest and Empathic’. It shows that a brand understands the ‘pain points’ that the cost of living crisis is creating, and can earn a more meaningful role by helping people to deal with them.

These ways of being useful might be big or small, direct, or indirect, and may well be service or experience lead as well as product related

It is great opportunity for brands to think beyond traditional broadcast or digital advertising. What could brands really do to help, and how can data, mobile and social platforms help to deliver this help in a meaningful way?

The important thing is to be helpful, and in being helpful help to build people's’ resilience to what is happening, so they feel a bit more in control and able to cope.

All of this also helps show that the brand has a clear perspective on what is happening and knows its role in the world and in people’s lives.

Be Uplifting

Cost of living is the #1 issue making Brits angry today?(46% say “Cost of living is making me angry about this country”), ahead of tax avoidance, crime, politics, public service cuts and environmental issues.?

Also, loss of jobs?is the most worrying issue for 28% of 18-24s, when they think about the future (vs 12% UK population) (McCann Worldgroup UK's ‘Truth about Britain' Study 2022).

However, no matter how dark things seem or how daunting big challenges are, we all still need things to lift our spirits too.?

During Covid it was brands that remained upbeat and optimistic, offering hope, and often employing humour that proved be effective.

Affordable treats and gifts to cheer us all up are something we can all share in, with 74% of Brits agreeing that “Brands have an important role to play in bringing our society together, and 62% preferring “a brand that speaks to everyone, not just me personally”?(in 2017, the preference was reversed: 54% preferred “a brand that speaks to me personally rather than everyone”.

Since the start of 2022, the so called ‘lipstick’ effect has manifest itself again with lipstick sales, particularly in bright and vibrant colours increasing.

This is an exemplar of the desire for and role of affordable treats in difficult times.

It also means brands have permission to be even more ‘entertaining’, creating the type of work that delights, is enjoyed and creates social discourse and interaction, and not just focus on the short term and activational.?

It is this sort of work that drives positive emotional resonance with people, which in turn helps create stronger positive long-term memories that will serve the brand well both now and in the future.

Boethius, the Roman?senator, historian and philosopher?of the early 6th century, compared the capricious nature of fate and circumstance to a ‘wheel of fortune’

It's my belief that history is a wheel. "Inconstancy is my very essence," says the wheel. "Rise up on my spokes if you like, but don't complain when you're cast back down into the depths. Good times pass away, but then so do the bad. Mutability is our tragedy, but it's also our hope. The worst of times, like the best, are always passing away."?

Like Boethius, I believe that these ‘bad times’ will ultimately pass away and better will follow.

It is the brands that show empathy, are useful and don’t forget that we all need a smile of our faces as a bit of relief that with not just survive but positively thrive thereafter.?

Jamie Peate

Global Head of Retail Strategy and Head of Effectiveness for UK at McCann Worldgroup?