Brand management during an economic downturn

The key to success during a downturn is maintaining focus. Keep your witsabout you and focus on the following: if you have a strong, successful brand, focus on what has worked for you so far;  if your brand is in a relatively weak position, focus on systematically exploiting what strengths you have while addressing your weaknesses.Last week we talked about your competition and the need to shine your eyes ,today our focus would be your brand.

Strong brands can support a price premium. Consumers have clear and strong associations with these brands and know what makes them desirable. Focus your marketing efforts on reinforcing what made your brand successful in the first place.

Even if your brand is relatively high priced, that high price, per se, need not be a problem as long as people believe your brand provides value for money. Most people find security in buying an established and reputable brand. What you need to do is make your brand accessible and not necessarily cheaper.

It is tempting to cut prices in order to retain price-sensitive shoppers, but this can be a risky strategy. If your brand offers a compelling rational or emotional advantage over the competition, people who are forced to switch to cheaper brands are likely to buy your brand again when the recession is over. But once a price premiumis lost, it tends not to be regained. Frequent price promotions train loyal brand buyers to expect lower prices and to buy only on deal.

As the pressure to find cost savings increases, companies may be tempted to cut back on the quality of their products or services. This temptation should be resisted at all costs. A successful brand is built on the bedrock of a great brand experience. A product

or service that delivers exceptional performance will keep people coming back. A reduction in quality may seem to go unnoticed for a while, but provides competitors with an opening they may later exploit.

The motivation level of employees is critical to a company’s success, particularly in service industries. Therefore, workers need to be convinced of the meritsof their brand and reassured that their jobs are safe.

Use internal communication to remind your staff that they make a difference. Even if layoffs are necessary, there are steps you can take to minimize the damage. Many experts recommend investing in training for your remaining employees to demonstrate your commitment to them; surveys have found a substantial correlation between an increase in job training after layoffs and subsequent increases in profit and productivity.

During recessions, consumers and marketers alikemust make the best of a bad situation. Not every brandwill cut spending, but many of those that do will findthemselves at a disadvantage when the recession ends.Marketers need to make the most of every dollar spentin support of their brands if they hope to maintainstrong consumer relationships. Those that succeedshould then be well positioned to take advantage ofweaker competition when the good times return.

Please share your perspectives via these platforms @michaelumogun / michael.umogun@millwardbrown.com