• by Karlene Lukovitz  @KLmarketdaily, March 10, 2009

"Value" is today's ubiquitous marketing cry, but pinning down what constitutes value from the consumer's perspective is the real challenge.

According to Mintel Senior Research Analyst Marcia Mogelonsky, the keys to influencing consumers now lie in understanding how they're coping with the "new normal" environment created by the recession and the brand attributes that underlie a perception of value: quality, creativity and trust.

Recent Mintel studies have confirmed that, rather than entirely forgoing spending on shopping, travel and entertainment, most consumers are "trading up, down and over," Mogelonsky reported in a recent Webinar presentation. In the new economy, consumers at all income levels are "learning to look up, down and over to find goods and services at prices they can afford ... and want to spend," she said.

Trading up may take the form of buying affordable luxuries, such as a premium chocolate treat, while trading down might mean enjoying local attractions rather than traveling for vacation, staying home together to watch movies rather than heading for the movie theater, or eating out at fast-food or mid-tier restaurants rather than upscale restaurants, Mogelonsky said. Buying a new sound system or detailing for an existing car rather than buying a new one is one example of trading over, or shifting spending from one area to another.

With consumer confidence at an historic low, brand trust is obviously extremely critical. Economic fear is creating an intense desire to feel secure that a product is not only affordably priced, but of reliable and durable quality. "If you lose trust, consumers will move away," but if a brand can solidify trust during these tough times, it will win long-term loyalty, Mogelonsky stressed.

Quality also comes into play in relation to affordable luxuries. McDonald's addition of premium coffees, salads and branded dressings has broadened its appeal to the entire consumer spectrum, including consumers with incomes of $100,000 and above, Mogelonsky noted. Hershey has leveraged the demand for affordable luxuries by increasing distribution and promotion of premium brands such as the Scharffen Berger chocolate line, along with its core brands.

Some food and beverage companies have thrived by emphasizing quality and creativity to leverage the strong trend to at-home eating to maximum advantage.

Soup is always recession-resistant, but Campbell's brought a sense of quality and "specialness" to soup with the introduction of the Select Harvest line--and is using the same basic approach in marketing Pepperidge Farms, Mogelonsky pointed out. Kellogg demonstrated creativity by reducing the size of its packages while maintaining product volume--an innovation that not only saves store space, but will be appreciated by consumers who need pantry space, particularly those who must downsize their living spaces.

Given that many consumers simply aren't accustomed to making so many meals at home, and lack basic cooking skills, food offerings that assist in meal-making (partially or semi-prepared, for example) and supermarkets that are offering in-store cooking demonstrations are finding success, Mogelonsky said.

In non-food categories, Wal-Mart has demonstrated creativity and won massive market share by making products like flat-screen TVs affordable for lower-income families.

Opportunities also exist in redefining big purchases, such as marketing remodeling products or services to households that can't afford a new home, or home entertainment products that can be shared by the family (one big attraction of the Wii), Mogelonsky pointed out.

With people wanting to continue to be charitable, but feeling they can't afford it, cause marketing--especially tied to local charities--is also a key opportunity. "Providing consumers with options to give to charities through the products they purchase is a win/win" that will be remembered and foster ongoing brand loyalty, she said.

Mogelonsky urged marketers to spend time in stores and closely observe how consumers are "repositioning themselves as shoppers," so that they can successfully reposition themselves as sellers.