Running a small business in South Africa is tough. We all know that. But when a crisis hits, like the recent pandemic, it can feel like the rug has been pulled out from under you. The natural instinct might be to cut costs wherever you can, and marketing often ends up on the chopping block.

However, the stories of two giant companies, Procter & Gamble (P&G) and Coca-Cola (Coke), during the pandemic offer valuable lessons for South African SMEs. Here’s why you shouldn’t hit the pause button on your marketing efforts when things get shaky.

P&G Doubles Down, Coke Goes Quiet: A Tale of Two TitansP

When Covid-19 swept the globe, many businesses went into a holding pattern. Coca-Cola, a brand synonymous with global marketing, significantly reduced its advertising spend. On the other hand, P&G, the maker of everyday essentials like cleaning products and toiletries, actually increased its marketing budget.

The Results Speak for Themselves

The outcome was a clear contrast. P&G’s sales surged during the pandemic. People stuck at home needed more cleaning supplies and toiletries, and P&G’s continued marketing presence kept their brands at the forefront of consumers’ minds.

In contrast, Coke’s sales dipped. With restaurants and social gatherings on hold, there was less demand for sugary drinks. But on top of that, by going quiet with their advertising, Coke risked losing brand awareness and connection with consumers who might have been looking for a pick-me-up during a stressful time.

Science Backs It Up: Why You Shouldn’t Stop Advertising

There’s more to the story than just anecdotal evidence. Marketing research firm Ehrenberg-Bass studied historical data and found a strong correlation: companies that maintain or even increase their advertising spend during economic downturns tend to outperform those who slash their budgets.

Here’s the logic behind it: In a crisis, consumer behaviour can change. People might be looking for new brands or rediscovering old favourites. If your business isn’t there reminding them why they should choose you, then your competitors easily fill the void.

Making Marketing Work for Your SME During a Crisis

While P&G and Coke have massive marketing budgets, the core principle applies to even the smallest South African business. Here are some tips to keep your marketing engine running during tough times:

• Focus on Value: Consumers are more price-conscious during a crisis. Highlight the value proposition of your products or services.
• Adapt Your Message: People’s needs and priorities might shift during a crisis. Craft messages that resonate with the current situation.
• Embrace Digital Marketing: Utilise social media and other digital channels to reach your audience in a cost-effective way.

Remember, marketing isn’t just about selling; it’s about building relationships with your customers. By staying visible and engaged during a crisis, you show them you care and are there for them. This loyalty will pay off in the long run.

The Takeaway: Don’t Be a Ghost

A crisis is not the time to disappear. By maintaining a strategic marketing presence, you can ensure your brand stays top-of-mind and continues to connect with your customers. This will help you weather the storm and emerge stronger on the other side. So, keep calm, keep marketing, and keep your South African business thriving!

Bizcash is a company that has funded over R1 billion in SME investments in South African businesses.

Get in touch with us if you need to take your side hustle into the big league at 0861 93 93 93 or email us at info@bizcash.co.za or contact us here.

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