Eng
Eng
Curfew and other regulations in everyday life that are focused on limiting the spread of virus and prevention still remain topical. After the end of critical second wave, regulations set in force by the government throughout Georgia are gradually lightened, but curfew after 9 p.m. still remains as a painful topic for Tbilisi residents among restriction of the movement of public transport on holidays and online format of educational institutions.
After severe epidemiological situation, virus outbreak and increased death rate as well as high pressure on the healthcare system that occurred during the second wave, the government does not hurry to completely lighten regulations set in force.
ACT conducted another interesting research on this topic covering the residents of Tbilisi. As a result of the study, it turns out that as assessed by Tbilisi residents, in the process of managing epidemiological situation the government is not completely effective, particular criticism came from 18-34 year-old residents of the capital city, their assessment of the government’s effectiveness is 5.25 on 10-point scale. In addition, every second (51%) respondent from this age group believes that the measures taken by the government are too strict compared to the severity of the epidemiological situation.
Loyalty of citizens in assessing effectiveness of the government in managing the pandemic situation increases along with the age, 55+ Tbilisi residents believe that the government effectively manages epidemiological situation (6.12) and measures taken by the government are relevant to the epidemiological condition. Overall, Tbilisi residents rated effectiveness of the government with 5.75 points, while opinions split when assessing the strictness point – almost half of respondents (45%) believe that measures taken by the government are relevant, while the other part (43%) declare that measures are too strict compared to the severity of situation. This assessment does not coincide with Georgia’s rating on the Oxford Coronavirus Government Response Tracker, where the country is on the second step (75-85) of strictness on 100-point scale.
What do Tbilisi residents believe is the most important regulation in the process of fight against the pandemic and which regulation is the hardest to fulfill for them?
As believed by inquired respondents, top three most important regulations against the pandemic are: 1. Restriction of entertainment and cultural events and ceremonies (6.56), 2. Restriction on international flights (6.50) and 3. Restriction on visiting restaurants and food places (6.32). The picture is different for different generations – in 35-55 age group, restriction on visiting restaurants is replaced by the curfew, in addition, this regulation appeared to be lighter than others for 55+ Tbilisi residents, while the most painful regulation is restriction (6.06) of public transportation.
Residents in 34-55 age group believe that the hardest regulation is closure of kindergartens, schools and universities and switching to online format, because logically, number of parents is prevalent in this generation who have to personally cope with this regulation. This generation also painfully perceive restriction on international flights which is also explained by active travelling. Among all the regulations set in force by the government, millennials name regulations associated with socialization as the most important restriction, this imply restriction of entertainment and cultural events, international flights and visiting restaurants.
The study clarifies that youth agrees with parents’ generation on restriction of study process at educational institutions and also are disappointed because of the curfew which is related to active night life lived by this generation. In addition, 18-34 year-old youngsters perceive the said regulation as less effective in the fight against the pandemic similar to restriction of domestic transport and winter resorts in the winter. Such attitude demonstrates that young people do not perceive those three regulations as effective and have high expectations they will be abolished soon. They think that in active fight against the pandemic, it is important to set regulations on entertainment and cultural events, international flights and educational institutions.
The government of Georgia already announces additional relieve of restrictions, presumably, the country’s index on Strictness Tracker will change from March.
The inquiry was conducted through random sampling with 414 adult residents of Tbilisi on February 16-18 of 2020. Utilized method – telephone interviewing. Statistical error of data does not exceed 4.9%.
The COVID-19 pandemic significantly affected people’s lifestyle and financial condition. According to the study conducted in the end of 2020, in the month of December, 60% of respondents reported on worsened financial condition of their family. 34% of respondents believe that their financial condition has not changed, while 3% reported on improved financial situation.
Cutting costs is noticeable in the perspective of monthly expenses, during the pandemic, 47% of respondents spend less than before the pandemic. 30% of respondents spend the same amount of money as they used to before the pandemic and 23% of respondents now spend more than before the pandemic.
It is worth mentioning that the majority of respondents – 34% now spend more on food and beverages. 27% of respondents now spend more on household essentials (detergents, hygiene, self-care items), as for the healthcare costs (doctor, tests, medications), the 27% of respondents now spend more. the majority of respondents (75%) explain that they have to spend more because prices of products went up.
Every second respondent now spends less on transportation (transportation fee, fuel). As for large purchases (apartment, summer house, furniture, car, household appliances), six out of ten potential buyers avoid making large purchases.
The inquiry was conducted through random sampling with 403 adult residents of Tbilisi on December 11-13 of 2020. Statistical error of data does not exceed 4.9%. Utilized method – telephone interviewing.
Behavior of Tbilisi residents has drastically changed in terms of various activities during the pandemic in 2020. We were interested to find out how has the behavior changed compared to March 14-15 of 2020 as the regulations became stricter.
According to the study conducted in December of 2020, the majority of inquired respondents changed their behavior in many directions, such as: 51% of respondents cut down and 12% of them completely stopped using cash; 36% of respondents stopped visiting parks and squares; as for physical activity (working out at home, in the street, sportsground), only 22% of inquired respondents quit this activity.
According to the study conducted in March of 2020, 40% of inquired respondents stopped visiting others while share of such respondents was 55% as of December 11-13 of 2020. Respectively, as of March, 36% of respondents do not invite guests at home any more, while number of such respondents is 56% in December.
As for attending birthday parties and funerals, respondents were even less active in this activity in December of 2020. 43% of respondents in March and 60% of respondents inquired in December reported on carrying out this activity less frequently or not at all.
*The inquiry was conducted through random sampling with 403 adult residents of Tbilisi on December 11-13 of 2020. Statistical error of data does not exceed 4.9%. Utilized method – telephone interviewing.
It is quite interesting what kind of mood Tbilisi residents have towards New Year during the pandemic. We asked our respondents to assess their mood and feeling on 10-point scale where “0” means “I don’t have festive mood at all” while “10” means - “I have very festive mood”.
As of December 11-13 of 2020, festive mood of Tbilisi residents is assessed by 5.15 points. Compared to the last year, 66% of inquired respondents feel less festive, while 10% of respondents feel more festive.
According to the study conducted in December, New Year’s preparations and behavior have significantly changed compared to the past year. 61% of inquired respondents spend less on preparing festive dishes than last year, in addition, 43% of respondents spend less on Christmas gifts and 32% reported on spending less on Christmas decorations.
* Survey was conducted through random sampling among 403 adult residents of Tbilisi on December 11-13 of 2020. Statistical error of data does not exceed 4.9%. Utilized method – telephone interviewing.
Coronavirus which has been spreading all over the world and making it upside down for three months now, makes practically every field of occupation face significant challenges. People of various professions are already assuming that the pandemic has changed the world and rules of play not only for now. They expect, that still fully unexplored virus can forever alter some behaviors and everyday life of people.
New reality required businesses to provide answers to seemingly already familiar, already answered questions, while marketing as mediator between business and consumer, appeared one of the first on “frontline”. It is assumed that Covid-19 will result in need of updating the role and approaches of marketing so that under force-majeure, companies can better feel consumer’s heartbeat and needs, not only to respond to their requirements, but create this requirement and manage it.
Considering the importance of the topic, to discuss challenges and future tendencies of marketing, ACT gathered professional marketers working in various sectors. What did Coronavirus change? What is now a tendency in the sector and what lost its importance? How did companies adjust to new reality? What new needs does a consumer have? How will consumer’s behavior change in future and how will he try to meet needs? – these were main topics of discussion.
A meeting was held in the form of online focus group and involved representatives of different fields such as banking and gambling business, sales of food products and hotel business. For those who are familiar with Georgian marketing, will most definitely know names of David Birman, Nino Egadze, Katia Absandze, Misha Kurdadze, Lasha Gogua and Khatuna Mamadashvili. Obviously, we could not involve every interesting respondent in the discussion, but the approach ensured to choose field professionals from completely different sectors in order to obtain maximally diverse opinions. The given article briefly reviews results of discussion on opportunities and challenges of new reality which marketing field had to face.
As believed by markets, now, as never, it is important “marketing to stay relevant and minimize “bullshit” in communication”; to adjust to necessary requirements without becoming artificial and losing connecting with consumer. At the same time, marketing today has to explain and financially prove reasonability of every action.
Under these circumstances, one of the main challenges of marketing is believed to be quick digitalization and as noted by marketers, how well various sectors will address this challenge significantly depends on their previous experience and in general, on specific nature of business, quality of digitalization of its work. For example, banking sector appeared to be advanced from this point of view, while quick transition to online space seems problematic in the sector of food products (lack of so called delivery services, unorganized management of stock, etc.). In sectors where digitalization is organic part of process this did not cause significant revision and changes of marketing strategies. However, marketers described digitalization as a quite complex process requiring specific expertise and companies with less experience in digitalization face the need of enhancing relevant resources. As repeatedly noted during the discussion, “digital is not just boosting on Facebook”.
“Consumer behavior will change and business needs to respond to it, it needs to adjust respectively which requires human resource. This is problematic nowadays. And I think that this is the chance for business to use this pause to adapt, adjust… If you see that consumer asks for digital, then provide digital. It just requires expertise how to provide digital”. [Lasha Gogua, “Europebet”].
Another new reality noted by marketers is the requirement marketing to be more rational than emotional. Digitalization itself helped the marketing to be more numbers now than before, because effectiveness can be better measured with digitalization. As believed by marketers, role of marketing will become more practical and they expect more vivid benefits from it.
“Measuring effectiveness of TV commercial has been a complicated task in this country for over 20 years and this is more or less simple in digital. I believe that now is the time for marketing to being speaking with numbers more than it has ever been before… all these image campaigns and steps taken to play with emotions which can equally be pleasant for founder and client are minimized this time and functions directly supporting sales are mostly activated”. [David Birman, TBC, Football Federation of Georgia, Domains.ge]
Marketing was eventually being digitalized without digitalization of product, but now marketers speak about “accelerated digitalization of products, business”; switching to online space as partially irreversible process. Marketers do not expect offline trade to be fully replaced with online shopping, but they all agree that component of online shopping will be enhanced in every sector. This is backed up by their observation that demand on creating online stores and adding completely new functional to websites has increased to great extent.
Transformation period for businesses may impose more radical changes – expansion of their work or revision of profile. As an example of the best adapted businesses during pandemic, marketers repeatedly named Glovo and Wolt which maximally adjusted to consumer’s needs (even with certain technical gaps). As believed by marketers, these companies managed to maximally utilize opportunities – they not only thought about survival, but diversified their offers during crisis and acted as rescues for those staying at home. Example of more radical changes in future may appear some eateries which may enhance delivery service component and completely remove in-house service. In these case, marketer’s role is to feel and predict market’s demand with skin.
Changes resulted from Coronavirus acted as a spur for companies to promptly switch to digital platforms, adjust to e-commerce. However, marketers assessed reaction as partially belated, dictated from outside. They believe that not being appreciative to e-commerce and postponing digitalization process cost businesses lose years. As believed by respondents with more critical attitude, from this point of view, marketers were significantly late in responding to opportunities and “raising the alarm” when they could create this demand years ago.
„I think marketing was late in responding reality in many sectors. Challenge of digitalization was already obvious before COVID-19, but many businesses and many marketers too preferred to remain in traditional format. For instance: we see the development pace of e-commerce service, this service was available before, but many companies did not even have website in their priority not to say anything about e-commerce and delivery. One more observation is that players of the sector need to develop the sector, every player has its share of educational and innovative role. These insights and signals were a bit forgotten but clearly sent by the market but responses were made to so many things only after bumping into the crisis”. [Nino Egadze, TBC]
Professionals of marketing field speak about re-consideration of the role of marketing, its organizational function. This is one of the key challenges of modern marketing and at the same time, inevitable outcome. Marketing has become greater part of organizational structure, expanded its objectives and to some extent, got involved in “execution” processes too. Marketing does not exist independently from other organizational units. It more often has to unite consumer experience, brand, management, digital and non-digital communication; it does not view events “in narrow marketing perspective” but is a part of broader picture. Marketers more often consider marketing as functional and effective in tight cooperation with other units. From this point of view, the most serious challenge for companies may become finding professional and multifunctional staff. Depending the level of the respective staff on the market, companies will make decisions what competences to develop on their own and what services to buy.
„Marketing will play altered role in the company… there were companies not aware of digital, not aware of the function of marketing. They said it is simple to respond to messages in Inbox of Facebook page. There are companies where marketing and sales do not work together, without realizing that every penny spent is a big support for sales. Every department works in the company, each of them has their goal, so it will be much more united now, marketing’s function will become wider and other departments will probably appreciate it more…” [Katia Absandze, Le Meridien Batumi”]
On its part, marketers have hard time predicting how consumer will change after pandemic hurricane goes away. They noted that to do so, marketers have long observation ahead. However, in this case too, they agree that business will play important role in “growing up” the consumer as business creates demand and draws interest of a client.
It is believed that it’s still early to observe any specific changes in consumer behavior. It is hard to predict, because of euphoria of the given period on one side and on the other side, impossibility to foresee what habits will be forgotten by consumer and which of their current behaviors will “turn into a habit”. However, what marketers can clearly predict, is increased use of digital services as trust towards them will increase during this period and respectively, demand will raise in future; marketers expect that behavior of spending money online will reinforce. Each of us may feel the result of this – for example, by minimizing the need of receipts, when paying utility bills online will become a routine for people. This perspective may feel a bit strange now, but an example from nearest past makes it fully realistic – how taxi drivers who were used to completely different reality promptly headed over to online apps and turned them into integral part of their work.
„I think it will be a new mix of online and offline judging from what happens now and what we are observing. People who had problems with digital now get known with it. Us, who use digital cannot imagine that someone does not use it, but now is such a crisis, people are getting familiar with benefits of digital who were afraid of it in the past, I mean they had hard time spending money online”. [David Birman, TBC, Football Federation of Georgia, domains.ge]
Marketers are even more careful to discuss and practically unable to predict what changes consumer’s lifestyle may endure. For example, no one can tell whether abstaining from ordinary leisure (attending concerts of football games) for months will leave consumers loyal to once favorite activities or not. It is even more difficult to tell how consumers’ needs will change to not emotional, but more rational needs. For instance, will consumer who are thirsty for face-to-face interaction will eagerly attend physical trainings or seminars or will they prefer to participate from online space already turned into a comfort zone and save money. Marketers predict altered habits of consumers, but no one knows where it will bring us to.
The universe is still carefully observing spread of Coronavirus and changes resulted from pandemic, but this situation, together with lots of difficulties, may become a source of opportunities and inspiration as well.
*ACT continues series of meetings with professionals of various fields, stay tuned for our next article on Georgian brands engaged in export of their products and services.
Our new reality is very much alike if you get up 15 minutes earlier to work day, go to “home office”, work, mix personal and work time, head over to your own kitchen during lunch, come across with shopping list when working on projects and mostly spend your weekends on the balcony. New reality makes our behavior and work principles homogenous. In the environment where homes are turned into offices a circle is formed where routine is repeated every day for everyone. How is it possible under these circumstances to keep your work motivation or even increase it?
When speaking about motivation, we most definitely need to mention Abraham Maslow, founder of motivation theory, whose pyramid cannot be avoided by any organization. On initial stage of keeping employees motivated, Maslow considers basic needs: physical environment and safety, following level is taken by psychological needs: belonging, love, recognition and finally, he sees the need of achieving one’s full potential and self-actualization.
According to Maslow’s hierarchy, organizations that fully meet employees’ needs from basic needs to top level, significantly increase their motivation. However, this classic model was altered by the pandemic. Now, employees who had their physical environment covered in terms of basic needs, have an upside down situation: they make stocks of food, pile up hygiene and medical products, stay at home and take care of their own and family member’s health. Under these changes, pyramid is completely altered and it becomes necessary to discuss changed tactics of employees’ motivation.
In Georgian reality, “upside down” pyramid appeared to be most simply adaptable for those companies whose organizational strengths became transferable into remote service as they already had digital processes well-established. To motivate employees, these and other companies had to make decisions based on the stage where large portion of their employees were at.
We are sharing an example of our organization – ACT, how it manages to preserve the bottom level of pyramid so that based on the central part, it supports lower and upper levels and respectively, increases employees’ motivation.
Love, friendship, family, belonging – central part of the pyramid, psychological factors largely affect motivation of employees. As far as ACT’s management follows direct, consistent communication, uses open, free, less bureaucratic approaches, acceptance of their decisions is already quite high. In addition to this, the majority of employees has long history of working for the company, thus, the feeling of love and belonging, supporting each other stands high on psychological level. A feeling of belonging is enhanced during a crisis, when people love to be united, to be in the same boat, this strengthens them mentally and simplifies acceptance of novelties, new initiatives. Being united against the problem from the company’s perspective is perceived as ultimate motivator, while being united around the idea is a powerful tool in the pursue to achieving goal.
Physical environment – new fears emerged in terms of physical level: preserving a job, salary, mobilization of finances for meeting basic needs, physical place to effectively do your job. These fears compromise lower level and to terminate this, organization needs to have timely and right communication with employees. To address this problem, ACT made certain changes in terms of staff/salary, which resulted in preserving jobs for every employee. This decision, on one side eliminated fears in terms of safety and physical environment and on the other side, on central level, built level of basic needs on membership of one big family. Employees became motivated to create safe working environment for them and their colleagues, thus, the company shortly became entirely digitalized.
Self-actualization – some of ACT’s employees were on the level of meeting the need of self-actualization, while part of them, with right allocation of resources, were given a chance to show off their “hidden” skills during the crisis. Opportunity to demonstrate their potential additionally motivated people to receive recognition from colleagues and level up to the last step of pyramid where by fully realizing their skills, they could turn the challenge into an opportunity. Clear demonstration of this is a new consulting platform of ACT – www.act-strategist.ge formed with the idea of supporting other businesses under corporate responsibility.
When evaluating the steps we made, organization was able to obtain a larger picture through a feedback tool (internal study), based on which motivation of employees has remained the same for 57% during crisis considering the decisions made by management while motivation increased for 33% of employees. Inquired staff members also believe that changes will not affect company’s work: on expectation level, they perceived that company would work in regular regime, while they feel optimistic towards the future operation of ACT. As verified by this example, if psychological needs are met, organization culture and feeling of being united is in place, building values on them becomes quite easy, which is particularly important during crisis.