Most retailers (who are still trading) have responded to the recession through cost reduction and margin improvement programmes, which, as a retail improvement consultancy we applaud, albeit with caveats.
As consumers become more restrictive on what and how they spend. Retailers, who invest in their brand through a recessionary period, have the opportunity to profit whilst others fail. It has been proved time and again that a strong brand is the most important asset a company has when recession strikes. In fact, retailers with strong brands can profit from recessions, as lesser companies turn inwards and fail to spend.
Look at Intel! Intel’s famous campaign, using the ‘Intel Inside’ slogan and labelling, began in July, 1991, right in the middle of the recession. That did more for Intel’s branding than any single campaign before or since. They weren’t the only ones, and success at that time came to those with the balls and the acumen to do it. The same will be true of this current recession.
Harvard Business School professor John Quelch, writing in The Financial Times, says: “Instead of cutting the market research budget, you need to know more than ever how consumers are redefining value and responding to the recession.” Quelch also points out: “It is well documented that brands that increase advertising during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.”
When it comes to branding through the downturn the key to success is in maintaining focus;
1. Continue to deliver a positive brand image within your sector
2. Maintain or increase your brand visibility within the market place
3. Communicate brand stability to your existing audience
4. What are the opportunities to share your risk with brand partners
The following points may be obvious to most retailers, but reflecting on them is always of value;
1. What are your customers looking at your brand to deliver for them at this specific point in time?
2. What is your completion doing and are you in a position to anticipate what they will do next?
3. What emphasise are you placing on your core proposition and its value to your customer?
4. Are you maintaining the quality of your products and services?
5. Are you keeping your customer base engaged
We all need to make the most of every dollar spent in supporting our brand through this challenging period, but also have to consider that without effectively communication we simply become another brand on another shelf!
