It looks like the big thinking has paid off as initial sales results have been phenomenal – no doubt aided by a $212 million dollar jackpot the opening weekend of sales. The integrated campaign featuring Powerball characters can be seen on TV, digital OOH, wallscapes, banner ads, a dedicated microsite, and tons of retail POS. We also conducted a state-wide flash mob tour the day before tickets went on sale to help drive awareness, consumer engagement and media coverage.  The team hit up nine cities across the state popping up on college campuses, at sporting events and key retailer locations.

Click here to check out some coverage of Northlich and the Ohio Lottery’s efforts in a profile of the Powerball launch in Lottery Insights May issue.

The question we asked ourselves was – is there a limit to how far consumers will go to remain brand loyal? The answer is yes!

Bargain hunting for your favorite brand is exhausting and many shoppers said that private label products offer the quality of branded products without the “headache.”

Each time your consumer experiences a headache (a sacrifice of time and money) to remain loyal to your brand, they expect recognition and compensation. Their rallying cry is simple— “Meet me halfway.”

This next video honors those brands that have taken this message to heart.

Instead of keeping that valuable information locked up in a safe, we’ve decided instead to share it with you through YouTube, Twitter and LinkedIn.

Our Next New Normal weekly video series features consumer insights, marketing trends and research findings on YouTube.  Don’t worry, we’re keeping it to 90 seconds or less each week. Subscribe to this channel to be alerted each time a new video is uploaded.

On Twitter we’re tracking the latest news, trends and reports around consumer frugality. Follow us for insights from the leading frugality gurus, at a 140 characters or less, of course!

On LinkedIn you can join the frugality discussion, or start your own discussion, by posting news and information you’ve found on consumer frugality. Join our group and check out relevant posts and discussions. We promise you’ll learn something new!

All right, back to the storm front. Until next time!

For the past six months I’ve set out to uncover key insights behind consumer behavior related to the recession. Our first wave of research took place earlier this year. We found that consumers are more mindful when making purchases both large and small and that childhood traditions are making a comeback.

But what’s next?

I am excited to announce we just launched our second wave of post-recession consumer research, which will answer that exact question. Through qualitative and quantitative methods, we will reveal important consumer attitudes around the battle between private label and brand name, products and brands consumers will gravitate to post-recession, and behaviors that will stick once the economy rebounds.

Our analysis of the qualitative research results and our projectable national quantitative survey will be available by December 7. You can look forward to many blog posts by me and fellow Northlichers in the months to come regarding consumer frugality, but, if you can’t wait that long and want a copy of the research report, respond to this blog post or send me an email. But please, don’t stop me at the grocery store; I have a lot of ground to cover.

They are the essence of nearly every Spirits ad created over the last decade. Not convinced? Let us prove it. You can create your ad with the Generic Vodka Ad Generator. Just answer five simple questions and then you too can be considered a spirits marketing pro.

So how’d it go? Go ahead, make another one, I know you want to. When you’re fnished playing around, then you can read the rest of my blog post. It’s not going anywhere.

Finished? Okay, good.

Whether your spirits brand is inexpensive or top shelf, coconut or caviar flavored, prominently displayed or in the background, there isn’t much differentiation these days in the spirits category. The category has been marketer’s dream: create badge brands based on premium pricing, beautiful packaging, images of people enjoying themselves in social situations. It has been less about what’s inside the bottle than what’s on the outside. So the connection is largely superficial, with little differentiation and a lot of brand switching.

There are a few problems with this picture. With the economy in recession, the trend toward “trading up” has declined. Consumers are re-thinking some of the affordable luxuries they’ve been indulging in, whether a $5 venti latte at Starbuck’s or a $15 Grey Goose martini. Nights out on the town are few and far between and so is the need for a badge brand of vodka, bourbon or tequila.  When you’re drinking at home, a mid-tier or bottom shelf brand may do just fine.  Substance is beginning to play a more important role than style.

So when we ask ourselves, is it a tough time to market spirits brands, the answer is yes. However, with the emergence of an increasing number of digital options, the decline in on-premise consumption, and the increase in off-premise, there are opportunities to connect with spirits drinkers in ways and places that will increase consumer engagement and loyalty. There is also an opportunity to more precisely define the spirit drinker, beyond the typical 20-something “pub and club” set that just about every spirit brand goes after.

Northlich has experience helping brands in the vodka, rum, tequila and liqueur categories find a unique place to live; then connecting that ownable position with a targeted group of consumers, defined by their attitudes toward life, as well as their attitudes about what to drink, where to drink and who to drink with. Take a look at our Finlandia Vodka work to see how we positioned Finlandia to represent a moment and place of purity in an impure world, targeted to an older, more confident audience driven more by quality, authenticity and substance.

If you are interested in knowing more about specific tools and techniques we use to uncover these insights, or want to learn more about our experience in this category, let me know. We are always up for a good drink.

Cheers!

Ashley

Let’s rewind for a minute back to a time when people were grateful for everything they had because the future was uncertain. People were concerned about getting enough food on the table at dinner instead of purchasing the latest gadget for their kids. The not-so-distant reality I’m talking about is the Great Depression. A time when value meant Survival.

These behaviors and values continued into the ‘40s and ‘50s. With World War II came the need for control – controlling budgets, portions and waste. Consumers repaired torn pants, ate everything on their plate and planted victory gardens. Value meant Frugality.

It wasn’t until the ‘60s and ‘70s when “need” became “want.” Parents wanted to provide their children with everything they couldn’t have growing up – think large families gathering in the living room to watch the new black and white TV. Value meant Prosperity.

These behaviors continued as the US started to enjoy a new found wealth that went over the top in the “go-go” ’80s and the dot com ‘90s. Consumes didn’t want one black and white TV for the family room, they wanted a color TV in every room. Take it from Gordon Gekko, Greed was Good! (link Gordon Gekko to – http://www.youtube.com/watch?v=7upG01-XWbY). Value meant Excess.

These excessive buying behaviors continued into the new millennium as the idea of personalization emerged. Consumers still wanted the designer jeans and gym shoes, but they wanted to put their own stamp on the purchase (Both M&Ms and Nike capitalized on this trend). Value meant Individuality.

And then a year ago, the bubble burst. Consumers started re-evaluating everything including the definition of value (once again). So what does value mean today?

Our Frugality 2.0 findings indicate that there are three factors contributing to the new definition of value –

1.) Trading – consumers aren’t just trading up and down; they are also trading off and out. Yes they are making sacrifices, but they are still indulging. It may be less often, but they are savoring the experience even more.

2.) Creative Living – consumers are reverting back to childhood traditions and finding new ways to entertain. Grocery shopping (once considered a chore) has now become a weekend family outing.

3.) Responsible Living – consumers are seeking control in this uncontrollable environment. They are making smarter decisions, searching for deals and are asking others for recommendations before making a purchase.

Consumers are making changes every day. Some are sacrifices, some are rewarding. The common thread in everything we heard is that consumers have opened their eyes and realized their previous spending habits were reckless. A new day has dawned and the consumer is more mindful of each purchase made (both small and large). They are planning purchases, seeking deals, asking for advice and buying cheaper options when it doesn’t matter and splurging a little when it does. Value today means Mindfulness.

In my next few posts I’ll share specific examples of how consumers are trading up, down, off and out, how they are becoming more creative and responsible with their entertainment and purchases and finally we’ll talk about the value equation and what it means for your portfolio of brands.

There are thousands of articles that talk about the new normal. Some analysts say we are near the end, and consumers will be “back to normal” with their spending habits soon. Others say it will never go back.

I’m not a futurist or even a financial guru but we recently conducted research to examine the emotional impact of the shrinking economy and gain insights on how today’s economic situation influences consumer buying behavior.

Over the next month I will share those results with you and answer some of these pressing questions. In the meantime, if you’d like to hear the results in person, just let me know and we can arrange a meeting. Or, if you have a specific question that you are looking to answer, submit it here.

Up next…Understanding the new definition of value.