Market research in quarantine times.

We have heard a lot about social transformation and changes in purchase behavior from the consumer side during Covid19 times. But what about the Companies?  What is happening on the Company side during this Pandemic?  The experience has not been the same for the different industries; there are very diverse companies fighting to survive the Pandemic. Each one improvising, innovating or anticipating the possible scenarios that place them in the country's economic activation.

The closed economy and the Pandemic itself turned upside down market behavior, leaving companies in situations they have never imagined and were not anticipating in their marketing plan scenarios. 

Companies are facing unprecedented change. Some of them are enjoying a bonanza! Because, overnight, their products and services became essential. Other companies are trying to avoid being the next victim of this virus, fighting not to attend their own funeral. 

According to the conversations we have had with different clients and business leaders, we could classify the companies in 4 types:

1.    The company that is celebrating. These are the companies that can't keep up with demand. Covid19 has placed them in an unexpected advantageous position. Their products or services became indispensable inside every home. They are innovating, launching new line extensions, and ramping up production. In this group are the cleaning products manufacturers, toilet paper and paper towels, some food products, as well as grocery stores, telecommunication companies, digital platforms, and digital entertainment. They have adopted aggressive measures to deal with this situation, implementing operation protocols, and innovating their services.  An essential part of these companies has focused efforts on responding in the best away possible to the avalanche that buried them. In most of the cases, they are investing more in their innovation pipeline and less in market research because they are enjoying a bonanza.

2.    The company under assessment and observation. In this group, we find the companies that are active but with a degree of uncertainty regarding their operating systems. They are adopting new plans as they go, drawing on innovation, reinventing their services and processes. Their efforts are concentrated on analysis, understanding, and planning. In this group, we have schools, universities, banks, etc.

3.    The company with social awareness. The sales of these companies have taken a plunge. However, these businesses have used their ingenuity and social responsibility to join the leaders that help overcome the constraint rather than be part of the problem. Here we have automakers, spirit, and textile brands that repurposed their production lines to produce ventilators, disinfectants, and masks.   

4.    The company in a state of worry. These companies had to close operations. They are evaluating economic and financial options to overcome this situation and planning based on recovery scenarios when the market goes back to operating normally. The problem is that uncertainty is so high that they came to a halt, waiting for encouraging economic signals. In this group, we have bars, restaurants, and small businesses. They have to manage their budget wisely and be austere; that is why market research is not part of their immediate consideration. First comes the recovery plan and then market research.  

We see that the action plans and the role of market research differ for each company. The scenarios that these companies are facing vary depending on the group where each one is placed.  However, the process of gradual economic reactivation has been initiated in the United States, and alongside, more adjustments will follow. We will start seeing the real societal and market transformation, the aftermath that is still indecipherable.

Typically, the companies that are consistent, disciplined, and visionary with their market research maintain their brand positioning and business performance in the long run. There are situations where company sales increase due to a distinctly temporary phenomenon, the case of many food products such as milk, rice, pasta, etc. Nonetheless, not all categories are facing this uncertainty under the same umbrella. The shared reality is that we are facing uncertain markets and an economic future still to be defined.

We have supported marketing managers of different product categories during this Pandemic. It has allowed us to reassure you that market research has been and will continue being a crucial ally in marketing planning and activation strategies for the remainder of 2020. We are observing that market research is being considered in the reactivation budgets as the right hand to identify viable routes to keep the brand positioning strong and sustain the growth of business units in a market engulfed in a socio-economic crisis without precedent.   

Lourdes Fernandez, Managing Partner Quantitative Business MCLF Research