Brandnow.asia: Recession proof your business and brands Published Nov 2019

1. Recession Proof
Your Business &
Brands
By Brandnow.asia
Presented by Pacharee Pantoomano
Nov 2019

2. Table of Content: Survival of the fittest
State of B2B Survey - ASEAN 2020
Retail: Walmart
Toy: Lego
Fast-food: McDonald’s
Online entertainment: Netflix
FMCG: Colgate-Palmolive
Food: McCormick
Car: Volkswagen
Summary
About Brandnow.asia

3. STATE OF B2B Survey - ASEAN 2020
1 minute survey to
understand your
sentiments and plans for
2019-2020

5. How Walmart did it
Research reference
• Walmart was recognized by the New York Times as having exceptional
growth during the great recession of 2007 to 2009
• Bentonville invested in data-driven marketing and product
development
Report showed
 Less browsing and sticking to the shopping list
 Less brand loyal and buying store brands
 Buying more pasta and carbs, less on expensive items like meat and other protein
 Increase in home related entertainment and personal health because dining at home is more
economical
• Instead of slashing their marketing budget, Walmart recalibrated and
geared the campaign for home entertainment (TV, DVD etc) and
pushed the "take and bake“ to go with the home entertainment

7. How Lego did it
Research reference
• In 2004, Lego almost bankrupted. It had expanded into non-core
areas like theme parks, watches and clothing
• In 2009, it was a different story. While many companies were facing
the recession. Lego’s profits increased by 63%
• The US market stagnated and Lego expanded in Europe and Asia to
increase sales. Legos are not only for kids. There are many websites
and forums for Lego adult enthusiasts around the world
• Founded in 1932 (87 years ago) by Ole Kirk Christiansen, the original
name is "leg godt" which means play well in Danish. The brand
receives free endorsement from celebrities. For example, David
Beckham said he was using Legos to build the Taj Mahal and it
boosted sales by 663%

9. How McDonald’s did it
Research Reference
• With more than 33,000 stores in 118 countries around the world,
McDonald is one of the leading fast food brands. It's second only to
Subways in terms of the number of locations
• During tough economic times, customers switch to lower price
options or dined in
• McDonald kept sales growing by focusing on growing its footprint in
China, which in 2010 it had 1,100 outlets.
• To boost sales, McDonald's increase its breakfast menu and coffee
options. From 2007, it sales went from $22.8 billion to $24 billion in
2010.
• As of end of 2018, McDonalds listed 37,855, serving 68 million
customers each day

11. How Netflix did it
Research Reference
• In 2008, Netflix was one of the best and most successful company
• The peak for the company was in 2009 when Netflix gained 3 million
members for their TV/Movie streaming plan
• With the streaming plan, it enabled Netflix to have more subscribers to
view an unlimited amount of entertainment per month, this was on top the
disc-delivery service
• By adding a variety, value plans and various services, Netflix recession
proof their company
• As of today, Netflix continues to evolve. In Q3 of 2019, Netflix had over
158 million paying streaming subscribers worldwide
• Trivia: Blockbuster turned down the opportunity to buy Netflix for $50
million in 2000. In 2010 Blockbuster filed for bankruptcy.

13. How Colgate-Palmolive did it
Research Reference
• The brand is famous for personal and home care products, as well as
pet nutrition products in its portfolio are Colgate toothpaste, Mennen
deodorants, and Hills pet foods
• Colgate-Palmolive value its customers' loyalty and because their
products are inexpensive, most people cannot do without it
• In 2007 during the recession, the company took a preventive strategy
by lowering price. They managed this by switching production to
lower cost facilities
• Colgate’s revenue rose from $13.8 million to $15.6 million during this
period

15. How McCormick did it
Research Reference 1 and Reference 2
• Established in 1889, McCormick (MCK) manufactures and distributes
over 16,000 spices, seasoning mixes, condiments, and other flavorful
products to the entire food industry. The company has two business
segments:
1. Consumer: spice, herb and regional favorite brands to grocery stores, supercenters,
discounters, convenience stores, and e-commerce players
2. industrial flavor solutions: seasonings, sandwich sauces, and branded foodservice products
• During recession, people naturally cooked more at home. MCK
provides healthier ingredients, especially the organic variety. The
organic is now the premium product. This was a winning formula as it
encouraged people to cook and save money.
• MCK also established more partnership with brands such as PepsiCo
(PEP) and McDonald’s (MCD)

17. How Volkswagen did it
Research Reference 1 and Reference 2
• The German brand had a leading position in Latin America and China. It
was the head of the pack despite intense pressure from GM.
• Interestingly, the German car maker's weak position was in the U.S. market
• Toyota has been hit hard by falling sales in the U.S. and closed its
manufacturing plant in California, the first closure ever for the world's
largest car maker
• VW saw this as an opportunity and launched the "Toyota killer" — a new
mid-sized car specifically designed for the U.S. and meant to compete
head-to-head with the popular Toyota Camry. The car was produced in a
new plant in Tennessee. This meant VW can produce faster and reduce
import tax
• Compared to its battered competition, VW is coasted through 2009,
boosting its share of global car sales to 12% from 9.9% in the first half of
the year

18. Summary
• Have a prevention strategy
Colgate
• Focus on another segment or region
Walmart
McDonald’s
McCormick
Legos
• Take advantages of the situation
Netflix
Volkswagen

19. About BrandNow.asia
Established in 2008, Brandnow.asia is a boutique
branding, marketing and public relations company
serving startup, unicorns, disruptive and blue-chip
brands here in Thailand, Asia, and around the
world. We’re a member of PRN, a network of
agencies that spans the globe.
Some of our clients are Grab, Lalamove, Nokia,
adidas, Pepsi, and Grohe to name a few. Our focus is
on brand communications and our services include
media strategy, public relations, social/digital PR,
direct marketing to event management. We look
forward to being of service to you.

20. STATE OF B2B Survey - ASEAN 2020
1 minute survey to
understand your
sentiments and plans for
2019-2020

21. Pacharee Pantoomano
brandnow@brandnow.asia
+662 105 4217
Youtube: BrandNowAsia | FB: BrandNowAsia