A dentsu playbook for tricky times
Welcome to Reading the Room, dentsu’s proprietary intelligence report designed to help brands understand how the whole nation is intending to organise and prioritise their home finances.
In late July 2022, Treasurer Jim Chalmers had some sobering words for all of us.
“Australians’ standard of living will not return to the peaks reached in 2020 at any stage over the next four years and households’ purchasing power will fall to a 12-year low this financial year.”
As this plays out, the first edition of Reading the Room explores how falling purchasing power is quickly changing behaviour and attitudes towards the products and services people buy every day. Over 2000 Australians took part in this study, responding to these inflationary times in starkly different ways.
The result is five distinct groups that marketers must empathise with to balance their brand’s activity.
Meet the room
Instead of a presenting the findings as a standard research report, we want you to imagine a party of 100 people. The theme? Black and white. Food and entertainment are included, but the drinks are extra. Throughout the night, the cost of drinks (living) increases 10%, 20% and then 50%! All the guests react differently and start mingling with people in similar situations. You can sit anywhere at this party, so five tables emerge. Here’s who is on each table.
Rich & Ready
The Rich & Ready are older, probably retired, own their home outright. They have plenty of breathing room, and will adjust their budgets to rising prices without stress or strain.
The Bet Hedgers are moderately comfortable with their financial position. Stable housing situation, but very low levels of confidence in the economy. They’re capable, independent, and will take their money elsewhere when the right opportunity presents.
Wealthy & Unwise
The Wealthy & Unwise are all looking a bit anxious. But they’re strong believers that they are in safe hands with the government. As the prices rise, they seem to have very little clue on how to respond financially.
Suffering & Scared
The Suffering & Scared are the poorest people in the room, with groceries and essentials all purchased at the lowest price possible. They feel the weight of their finances on their shoulders and have no faith in the government to help. Every dollar matters.
Living for Today
The Living for Today are nationally represented across age and gender, with slightly lower household income than average. They’re not confident in the Australian economy, but are oblivious enough to keep spending.
How will you respond?
Dentsu’s in-depth research details consumer trends in light of Australia’s changing economy, and identifies how each insight influences your brand, your positioning, and the opportunities you can maximise to drive commercial growth.Download Reading the Room now
Time to face reality
Which brands will win? In our view, the ones that ‘read the room’, and then adapt accordingly.
For a comprehensive deep dive into the five groups, and a workshop session to explore what it means for your brand and business, please get in touch.Get in touch