Addressing the Economy

From conversations in executive offices to those at the kitchen table, the economy has been the 800-pound gorilla in the room for much of the past year. While many companies tried to dance around this unwelcome guest at first, they have recently begun tackling the economy head-on in advertising and marketing efforts.

It’s a smart move. With the understanding that America’s current state of affairs is a real issue for consumers, many retailers are operating under the assumption that it’s better to address the economy than run from it. Retailers are using everything from TV ads to public relations to demonstrate empathy and understanding at a time when shoppers need it most.

Target’s “Brand New Day” television advertisements are one example. The ads highlight today’s nesting trend by featuring people enjoying “the new movie night” — not at theaters but in their living room — and “the new gym” with a woman exercising at home. Life may not be the same, the ads seem to say, but it can still be enjoyed. While Target is acknowledging this shift in shopper mindsets, it also reminds people looking to scale back that the company sells everything from hair clippers to bicycles.

References to the economy were even present in this year’s Super Bowl ads. From an office worker getting tossed out a window after recommending the company balance its budget by cutting back on Bud Light to a conversation between two toddlers about the benefits of using E*TRADE in this economy, references to America’s current state of affairs were frequent.

By choosing to acknowledge instead of ignore the economy, retailers are able to show that they sympathize with customers — and gain extra good will along the way. Last month, Denny’s hit its own version of a Grand Slam by providing more than two million free breakfasts to Americans in need of some cheering up. QVC also hit a home run with a runway show during New York’s Fashion Week that introduced a new clothing line, acknowledging that people want real fashion, but real prices, too.

It’s not only advertisements and savvy public relations that are getting the attention of shoppers. Kroger has ramped up its direct mail efforts and is using data from its loyalty program to send coupons to specific customers. CVS also relies on its loyalty program to provide coupons and promotions to customers at the point of sale. With more than one-third of shoppers coping with the economy by using coupons more frequently, those strategies are bound to pay off.

What many retailers have learned is that acknowledging the 800-pound gorilla in the room can lead to higher levels of trust and loyalty among shoppers. This is a smart move because, until this beast goes away, it will be difficult to get a word in edgewise.