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Topic : Branding During Tough Times
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Industry : Management & Strategy Consulting Functional Area : Branding
Activity:  8 comments  492 views  last activity : 07 06 2010 20:18:04 +0000
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Research conducted by MORI, amongst 187 senior board directors of the UK's leading companies, concluded that "94% agree that the asset which offers the greatest protection during an economic downturn is a strong brand".

There are three reasons for this:

  1. Confidence - Loyal customers retain confidence in a strong brand even when the going gets tough. Confident customers are less likely to switch brand.
  2. Risk - potential customers, staff and shareholders are more risk averse during a recession. Strong brand mitigates risk in the mind of the stakeholder.
  3. Value - Company value is more likely to remain buoyant in an economic downturn when it is supported by a strong and profitable brand.


Don’t be tempted to stop investing in strengthening your brand, even when all around are losing their heads. By neglecting your brand, you risk exposing the business at a time when recovery is much more costly and much less certain of success. Brand profitability is the ultimate goal but it takes investment. Short term budget cuts may lead to immediate relief of pressure, but they will surely lead to long term heartache.

 Top Comment : PREM PRAKASH   | 02 20 2009 08:30:08 +0000
I agree with your point ,but this is not true when we talk about goods of basic requirement like raw food articles or even healthcare services there it is always the price that takes edge from the brand. so cost always wins from brand. Offer a product at a very cheaper price see what brand can play,so if again we are talking about recession attractive price will always play its due role in decision making.comfort products have always been brand oriented.
 
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8 comments on "3 Reasons not to cut investment in Brand during a recession"
  Commented by  Mittal Shah, Sr. Manager - Sales & Marketing, Infratech Real Estate Pvt. Ltd.    | 09 02 2009 12:07:52 +0000
When we are talking about branding during tough time. One thing we should keep in our mind is to implement our commitment. Because in todays trend every real estate organisation has to prove themself as why they are the best as compare to others. For this your commiments will matter a lot.   
  Commented by  James Masih, Product/Brand Manager, FedEx    | 03 23 2009 11:50:59 +0000
Syed, I have understood your point and i also strongly believe that in times of  recession,one should not cut down his investment in the brand.The brand must remain visible to the customers. If the customers become oblivious to the brand, then they might easily switch to other visible brands.Brand building does not happen overnight. If the business loses focus on brand building now, later on they would need to invest significantly over a long period of time to reach the current levels of brand recognition.In case, the business is acquired by or merges with another one, a higher brand value would add significantly to the price of the business.

  Commented by  Syed Muddasar Moin, Product/Brand Manager, Events Network    | 03 05 2009 07:16:26 +0000
Rating : +2 
I strongly  agree with this informaton becuase when we are speaking about the slowdown and at the same time speculating the growth rate and keeping our finger cross to see the market regaining its charm then we are speaking only because we are in this feild and we are concern about our brand and its growth. Brandbuilding exercise is always neccessary for retaining loyal customer and getting new customer.
Brand building exercise helps the loyal customer not to swicth becuase it always make him feel good about its product and for a new customer it always give him/her a chance to go for it.
super and informative article thank You thank You
  Commented by  prem prakash, SBU/Profit Center Head, Jindal Hospital    | 02 20 2009 08:30:08 +0000
Rating : +1 
I agree with your point ,but this is not true when we talk about goods of basic requirement like raw food articles or even healthcare services there it is always the price that takes edge from the brand.
so cost always wins from brand.
Offer a product at a very cheaper price see what brand can play,so if again we are talking about recession attractive price will always play its due role in decision making.comfort products have always been brand oriented.
  Commented by  Jay Makwana, Media Development Manager, Times of Oman    | 02 14 2009 12:11:43 +0000
I fully agree..Investing in Brands is as important as investing in other important resources...In recession the focus should be on branding activities should be even more..
  Commented by  ashish trivedi, Area Trainer (Cust. Service) Eureka Forbes Ltd    | 10 07 2008 05:45:41 +0000
informative
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