RECESSION BRANDING

October 31, 2009 at 10:12 pm Leave a comment

Today, everyone says that we are facing a recession and that customers are getting into a cocoon. The consumer was king and now he is GOD! But the ways I see it is different i.e. as an opportunity knocking right at our door that allows us do to so much more.

Should you cut expenditures to you brand to survive a slowdown? Giants in their own field, companies like P&G slash budget, Disney announces 4000 job cuts, and Super Bowl freeze media buying but is it really wise? I think you get what you pay for…and these reactions typically affect the company’s most vital asset i.e. the brand itself.

During these times, the organization should build on their existing efficiency (in advertising too), operate as if they were to acquire, lead with controlled experimentation and design for maximum customer engagement. Surveys from leading research agency’s show 70 percent of consumers believe that if a brand reduces prices of their products during recession, it is a weak brand while 64 percent believe that if the price of the product is constant, it adds value to the brand.

Walmart_Great_Value‘Brands that increase advertising during a recession, when their competitors are cutting back, can improve market share, profitability and return on investment at a lower cost than during good economic times’. Wal-Mart for example recently facing the brunt of the recession too tried to do the unthinkable launching their house brand ‘Great Value’ with a colorful dominant image across product categories and it sure resulted in profound brand loyalties. Well played Wal-Mart.

‘Recession is too good an opportunity to miss; the key mantra is to strengthen your brand.’

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Entry filed under: Branding, Retail. Tags: , , , .

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