2. THE PANIC OF 1907
Run on banks
NYSE fell almost 50%
Led to Federal Reserve System

3. THE PANIC OF 1907
Wrigley’s

4. THE GREAT DEPRESSION
Began with stock market crash of
1929; lasted through World War II
Stock prices fell 90%
Real disposable income fell 28%
Unemployment spiked at 25%
9,000 banks failed

5. THE GREAT DEPRESSION
Kellogg’s

6. THE GREAT DEPRESSION
Kellogg’s
Chevrolet

7. THE GREAT DEPRESSION
Kellogg’s
Chevrolet
Procter & Gamble

8. 1970S RECESSION
Began November 1973 and
ran through March 1975
High inflation made worse
by war and oil crisis
Unemployment reached 9%
Inflation rose to 11%
Stock market crashed
almost 50%

9. 1970S RECESSION
Toyota
Procter & Gamble
FedEx
People magazine
Costco
Microsoft

10. 1980S RECESSION
Started in July 1981 and ended
November 1982
Increased interest rates
Slowed the rate of growth
of money supply
Unemployment rate peaked
at 10.8%
Inflation hit 13.5%

11. 1980S RECESSION
Walmart
Hershey’s
CNN
MTV
The Home Depot

12. 2000S RECESSION
Began with collapse of dot-com
bubble in 2001
Post-September 11 economy,
Y2K, and accounting scandals
Unemployment reached 6%
Dow Jones worst one-week
point loss in history

13. 2000S RECESSION
Apple iPod
Crest Whitestrips
Swiffer WetJet
Axe body spray

14. EMPIRICAL EVIDENCE
Stopped advertising
Loss in top-of-mind awareness
Loss in awareness
Negative attitude shift
Lowest increase in sales two years after recession
Increased advertising
Market share increased 1.5%
Nearly 5% increase in profits
275% increase in sales two years after recession
Sources: Millward Brown, AAAA, and McGraw-Hill

15. CURRENT ECONOMIC SITUATION
Recession began December 2007
Credit crunch, bankruptcy, bailouts, and housing crisis
Unemployment rate 7.6%
Drastic shift in consumer behavior since early 2008
“The worst financial crisis since the Great Depression”

16. CMO SURVEY
U.S. senior marketing executives who believe
that during an economic downturn, the
marketing budget is the first thing to get cut
21% Disagree
79% Strongly/somewhat agree
Source: Epsilon, “Epsilon CMO Survey,” September 8, 2008

17. FRANK BLAKE, CEO, THE HOME DEPOT
“There’s absolutely a benefit in making changes
during a downturn. As one of our vendors said:
“A downturn is a terrible thing to waste.”
Source: The Wall Street Journal, June 5, 2008

18. BENEFITS
Brand-building is long-term
Tough times are inevitable
“We never change the long-term
strategy because of short-term
problems”–Louis Vuitton CEO
Yves Carcelle
Positive effects of advertising are
seen well past the short term
Cost to maintain advertising is
less than cost to begin again

19. MOST IMPORTANT ASSET

20. MOST IMPORTANT ASSET
Customers

21. SUPERBOWL XLIII

22. SUPERBOWL XLIII
Hyundai
5 commercials
2009 North American Car
of the Year
Introduced Genesis Coupe
Over 450 million impressions

23. SUPERBOWL XLIII
Joel Ewanick George Wallace
Vice President of Marketing Vice President of Comedy
Hyundai Humor Division

24. SUPERBOWL XLIII

25. SUPERBOWL XLIII

26. THE OSCARS

27. THREE YEARS FROM NOW?

28. SALES RESULTS
January 2009
General Motors -49%
Ford -39%
Chrysler -54%
Toyota -32%
Nissan -30%
Volkswagen -16%
Mitsubishi -34%
Hyundai +14%

29. TO CUT OR NOT TO CUT?

30. WHAT YOU CAN’T CONTROL

31. WHAT YOU CAN’T CONTROL

32. WHAT CAN YOU CONTROL?
The Three M’s:
Money
Medium
Message

33. MONEY
How do you get more
bang with less buck?

34. MONEY

35. MONEY
Advance Auto Parts
Budget decreased
Dumped sports sponsorships and national cable TV
Increased network radio
Only paid for 77% of U.S.
23% saved has been reinvested in more radio
“Regionalized” a network radio buy

36. MONEY

37. MONEY
Grocery Outlet
Never advertised before recession
Negotiate last-minute avails
Buy unsold/cancelled inventory
Weekly flexibility
Cover 90% of stores

38. MONEY

39. MONEY
Hyundai Dealers (Eastern Region)
V oted to increase ad budget
Afforded more media weight
Sales outpace the rest of the country
January national sales +14%
January Eastern Region +20%

40. MEDIUM
Focus on vehicles with proven ROI
Narrow target to best prospects and
hit them hard

41. MEDIUM

42. MEDIUM

43. MEDIUM

44. MEDIUM

45. MEDIUM

46. MEDIUM

47. MEDIUM
Chick-fil-A
No change to strategy and spending
Heavy users of outdoor
Maintain a “wish list”
General Motors canceled
Snatched up prime locations

48. MESSAGE
Construct your message for
the times
Consumers don’t disappear–they
change their behavior
Value-conscious consumer mind-set
and behavior shift since early 2008
“Staycations” and “cocooning”
60% of Americans budgeting more
this year than last

49. MESSAGE

50. MESSAGE
Hyundai
Identified the real issue–consumer confidence
Hyundai buyer assurance program
Protection in case of “involuntary loss of income”
Addressed fear

51. MESSAGE

52. MESSAGE
GameStop
Two targets: gamers and gifters
(moms, grandmas, aunts, etc.)
Gamers: make sure you get the
games you want
Gifters: 2,500 games under $20

53. MESSAGE
Results
Holiday sales up 22% from last year
Best Buy game sales down 12%
from last year

54. CONCLUSION