How the coronavirus is affecting the economy:
It is already certain that the coronavirus will affect the global economy and not just the Chinese economy, where the virus originated. The Brazilian economy suffered a late impact, when compared to Europe and the United States. However, despite arriving later, the impacts on the economy will not be less.
The impact of the coronavirus has already entered the world economy forecasts, the Organization for Economic Cooperation and Development (OECD) reduced the growth forecast for the world economy from 2.9% to 2.4%, this being the lowest growth since 2009.
Now we know that the the vast majority of businesses will be affected, and will have difficulty generating revenue, however it is feasible to take some measures to survive during this time.
For save your company during this time of stagnation it is necessary to understand 3 different fields.
- Understand consumer behavior at this moment.
- Marketing strategies during corona.
- How to manage the team.
How Consumers are Reacting to Coronavirus
They exist 5 stages that will constitute consumer behavior during this crisis.
1. Increased health awareness
Interest in products that promote health and well-being in general increases. (supplements such as vitamin C and multivitamins)
2. Reactive health management
Prioritization of products related to virus containment and public health. (masks, alcohol gel…)
3. Product storage
Stocking of essential and non-perishable products. (rice, beans, toilet paper…)
4. Home quarantine
Purchases are restricted, both in the physical environment and in e-commerce, due to logistical difficulties. The prices of certain products tend to rise, due to shortages caused by the interruption of the supply chain.
5. Return to normality
The population returns to their daily lives normally, but for a period of time precautions regarding hygiene and health will be increased.
Even despite all the evils, there are those who will benefit. During all stages, the pharmaceutical sector will benefit by far. Already during the quarantine phase, delivery apps and software for remote work and virtual meetings will see an increase in demand.
However, for the vast majority of the economy the result will be negative, with the most critical stage being the quarantine, in which the flow of people and goods will be almost entirely repressed.
How to act who will be harmed
Street stores, restaurants and gyms, where there is a lot of movement of people, will clearly be most affected. However, it is possible to take palliative measures to reduce losses.
Restaurants can focus its operation on delivery services via app, street stores can pick up increase supply channels when entering marketplaces. As for gyms, the most viable solution is to enter collective vacation and in specific cases of classes without the need for equipment (yoga, pilates, zumba...), you can try taking online classes.
In the case of businesses that will have to stop their operations completely, it is recommended to give collective vacations to staff and negotiate with banks for longer terms for payment of debts. Seeking the most reduce the flow of short-term accounts during this period without cash inflow.
Marketing strategies during coronavirus
In moments of great tension when the population is in danger, the most important thing for companies may be to remain quiet.
Since the human mind tends to remember more negative events, especially those linked to a risk to life, it is unwise for companies to communicate that the virus is not all that and end up with infected employees. When in doubt, remain neutral.
On the other hand, companies that are blind, when looking only at the financial statement, some companies are a example of how to manage marketing in times of crisis. To exemplify, we will use the case of Wise Up.
This measure meant that, despite all the inconvenience created, the customers will not be dissatisfied and on the contrary, they will feel valued by the school. And in the future this good deed will be linked to Wise Up, like this increasing loyalty.
How to manage the team
During the quarantine period, businesses are divided into 3 categories.
- They can operate normally or without considerable loss of productivity, via home office.
- They operate at a loss, but they continue to operate.
- Your business has been impacted in such a way that it is necessary to suspend operations.
They operate normally.
Businesses such as law firms, digital marketing agencies, consultants, and others that can work remotely.
In these cases it is necessary define an agreement with employees, defining schedules, tasks and making deliveries. Since the agreement must be prior to allocation via home office, it is clear to both parties the due responsibilities and rights.
They operate at a loss
In segments such as food, where in-person service will be restricted, it is necessary focus efforts on delivery. Even though the margin is lower, it will be the only way to continue operating.
Consequently, it will be necessary to give collective holidays to excess staff or, if this is not possible, to relocate them. Only as a last resort is shutdown considered, due to losses for both the employee and the organization.
Operation suspended
In cases where it is impossible to operate fully during this period. Whether due to bans on gatherings or lack of supply. The manager must give collective vacations.
Conclusion
This moment will undeniably be difficult for all entrepreneurs. Both in the financial/operational and emotional/psychological aspects. Therefore, It is essential to keep your head in place, think rationally and keep in mind that everything will pass.
Of course, we don't live on good thoughts alone, that's why It is important to follow the advice in this article, as this will make it possible to contain losses and save your business.
Perhaps even following all the advice mentioned here, many companies, especially small and medium-sized ones, will feel a great impact. Therefore, to help you recover after this crisis the most recommended marketing consultancy in Paraná – according to Google Places, is here to help you.
