Consumer confidence is waning across the global economy. In times like these, decades of hard-earned brand equity can be eroded over the course of months. Recessions force companies to be smarter about where they invest. Focusing solely on how your brand is different and how that difference creates value for the consumer, increases consumers’ confidence in your brand. Demonstrate that it is “worth more” and you’ll increase their willingness to pay more when every penny counts.
When the market goes south, management too often turns its approach away from brand-centric to price-centric thinking. Thus begins the vicious downward spiral where brand value erodes, in turn reducing revenues which further tightens belts and value continues to erode. The only answer to a recession is a proactive response. Investing in your brands will help to retain your audience and attract a new audience by stealing share from weaker brands. Only the best positioned players will survive and thrive.
When consumers trust your brand, they don’t contemplate their purchase decisions—they buy.