We hear about it everywhere. Economic news going from bad to worse, the real estate crisis, record debt levels, stock market volatility, food and energy inflation. The recession is affecting people in every part of their lives. A recent poll indicates that 66% of Americans are worried about maintaining their standard of living (a nearly 30%increase from last year).
More specifically, this recession is deeply and directly affecting women with children. Yet, like Rosie the Riveter from WWII, the modern American mom is a strong woman doing what she always does in a time of crisis: She takes a hard look at things, freaks out in her head for about 10 minutes, and then moves on, creatively working through it, around it, and within it.
In truth, the sentiment we are witnessing from many moms is that maybe this difficult economy is putting us back in a place we should have been all along.
As families cut back on eating out, they are sitting together at the dinner table, sharing home-cooked meals. Rather than spending money going out on the weekend, they are opting for playing games at home. Contrary to popular belief, in recent surveys, women are reporting their marriages have actually become stronger, their love lives better and their relationships with the kids have improved.
Although, some moms are trying to shield their kids from the stress of the recession and preserve their “economic innocence,” many are actually using the recession as a tool—teaching money-saving lessons, explaining the importance of doing chores, turning off lights and walking instead of driving.
A more creative and strategic shopper
After living in a consumption economy for the past 15 years, moms are figuring out how to scale back, without their families noticing too much. Moms are keeping things somewhat normal by doing the same with less, or similar with less. The recession mom is looking for additional sources of income, canceling services and memberships, cutting coupons, carpooling, buying only the necessities and keeping a careful eye on utilities.
She has also gotten more creative in her approach to grocery shopping and mealtime planning by:
1. Eating at home more often (according to Mintel, 55% of people report preparing more meals at home)
2. Stocking up on each store visit (trips to the grocery store have declined from 72 trips in 2001 to 59 trips in 2007)
3. Substituting the similar and buying generic (20% of consumers are buying more private label brand products)
4. Looking for “budget saving” recipes, shopping her pantry and serving leftovers more often
5. Buying frozen versus fresh, as well as non-perishable items
6. And coupon clipping, which has become almost obsessive. Deal-hunting and then bragging about bargains has not only become cool, it’s practically a new sport.
The recession mom has become a hyper-strategic shopper, more organized and more thoughtful. She is pulling on her experience and purchasing the trusted, tried and true. In times like these, she is more likely to continue purchasing the brands she has purchased in the past, because frankly, it is not worth it to her to try new products and take the risk that they won’t work or the kids won’t like them.
She hasn’t given up on shopping, but is fostering what’s known as the “Lipstick Effect.” When times get tough, women stop splurging on the large extravagant purchases and start treating themselves to small luxuries, like lipstick. Ever since The Great Depression, female lipstick buying patterns have been the reverse of market indices. Marketers must realize that in times of crisis, the American mom doesn’t stop shopping, she just shops differently—which usually means more strategically and less often.
The Way to go
She has become a realist and marketers who have traditionally played more at the top of Maslow’s hierarchy of needs pyramid (connecting emotionally with consumers) need to recognize that consumers today have moved down the pyramid and place more focus on physiological, safety and social needs (food, shelter, protection). Today’s marketers must still make an emotional connection with the recession mom, but it’s critically important to remind her how their products and services rationally make sense in her life.
Marketers and advertisers can take much of the perceived risk out of purchases and encourage moms to try new things by offering money-back guarantees, showing the versatility of their product across categories (e.g.: cornflakes are great as cereal, but also on potatoes, fish and veggies), and increasing product sampling.
Evaluating promotions
Keeping these insights into the “recession mom” in mind, here are some questions marketers need to ask themselves when evaluating properties and promotional tactics in 2009.
1. Is it helping women bring home fun—for herself and her family?
2. Is the creative upbeat and positive? She is hearing doom and gloom from all sides. Partner with upbeat properties. Play up the good and happy, downplay the bad.
3. Is it a “fly-by-night” or a tried and true entity? Is it an entity that she trusts and with which she has experience? Partners with strong brand recognition like Disney, McDonald’s and Nintendo may be a better bet right now than unknown new kids on the block.
4. Is it a potential teaching tool—for her and her kids?
5. Is it helping her bring her family together? For example, promotional sweeps and contest, which the whole family can participate in will be a hit.
6. Is it helping her to do more with less or the same with less? Kellogg’s Corn Flakes make a great breakfast cereal, but also a snack on the go or a topping for veggies and casseroles.
7. Is it converting a “want” to a “need”? For example, a high-end cappuccino maker may seem like a want, but when amortized over a two-month period, the product will pay for itself in the money saved by not buying pricey coffee drinks out of the home.
The recession mom has moved from more emotional to rational in her needs. Marketing messages should be upbeat and illustrate how the product or service will rationally help her and her family.
Especially in trying economic times, moms are much like CEOs, managing what’s within their control and opting for what’s out there that is best for their families. Smart marketers can pave the way and be their trusted partners.
Elizabeth Harris is the senior vice president and director of strategic planning at Rivet Chicago. She can be reached at [email protected]
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