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Press Releases:
THUNDER FACTORY
Accelerates Growth
in Southern California
Fleetwood Rv, San José
State University Choose
Thunder Factory For
Integrated Marketing
Programs
Business Growth at
Thunder Factory Spurs
Headquarters Move,
Expansion into L.A.
and N.Y.
In the News:
Thunder Factory Wins
Fleetwood RV, San José
State University
Article List:
Confusing Spin
With Strategy
- Patrick Di Chiro
An Open Letter
To Al Ries, Ad Age
Columnist
Here's Where to Find
Integrated Marketing
- AdAge
Getting a Bead on 'Buzz'
- Virginia Postrel
Survey: Network TV
Does Worst Job of
Proving Advertising ROI
- Judann Pollack
Toughening Your Brand
- Lynn Upshaw
Coffee's For Closers
- Patrick Di Chiro
The Role of Key Opinion Leaders (KOLs)
in The Pharmaceutical Industry
- Joseph Gutman, MD
Playing the
Search-Engine Game
-Mylene Mangalindan, WSJ
At Last,
a Way to Measure Ads,
- Michael Totty, WSJ
Small Firms Can
Survive Sqeeze
By Revamping Marketing Efforts
- Jeff Bailey, WSJ
Study Says
Marketers Shifting
Toward Internet, Direct Mail
- Erin White, WSJ
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Toughening your Brand
for Tough Times
By Lynn Upshaw
Until mid-2000, everybody was a .300 hitter. US corporate
earnings grew at an annual rate exceeding 20%. Productivity was at twice the level
of previous years. Stock prices seemed to shatter the Law of Gravity as the Dow
and NASDAQ skyrocketed to over 11,000 and 5,000 points, respectively. Then things
began to unravel, and theres no need to chronicle again the declines that
followed. Lets just say that the US economy has slipped into recession 20
times since 1900 and you may have an opportunity to live through #21 very soon,
the efforts of the Fed notwithstanding. Consequently, now would be a great time
to assess the battle worthiness of your brand(s).
One topic that rises rapidly to the top during such an assessment is the concept
of value. In our last US recession (July 90 March 91), the
term value was redefined as something much more than a synonym for
cheap as buyers began to see value in higher-end, quality products
and services. Today, value can be found (at least in some customers minds)
in a $72,000 Lexus LS430 as easily as in a Target storewide sale. In the tough
times ahead, the surviving brands will define value in perfect alignment with
what their most loyal customers believe is of most value to them.
Genuine value requires genuine quality, and quality is much more leverageable
in the form of superiority. In todays economic environment, marketers who
settle for simple differentiation as an ultimate brand goal are creating an opportunity
for more aggressive competitors. In an uncertain economy, some marketers believe
that consumers and B2B customers cannot afford to pay for a premium-priced brand
with a reputation for superiority. Just the opposite is true. Buyers in such times
often avoid wasting their money on products or service solutions that may be unique
but fail to deliver superior performance. Genuine value the kind that buoys
corporate vessels on rough seas calls for quality at a reasonable price,
not lower pricing for parity performance.
Another axiom that often gets mislaid in stormy weather is the fact that virtually
every purchase decision is emotionally based in some way. That emotion can be
channeled into brand preference if prospects see the brand as a trustmark they
can count on when they are financially challenged. Volkswagen bounced back from
horrible sales declines a few years ago by re-creating the kind of superior brand
persona that had made the brand a hit thirty years earlier. Apples Think
Different campaign was a persona-driven customer retention invitation that
laid the foundation for a successful launch of the iMac and G4 offerings. Harley-Davidson,
Sears, Nike, MasterCard, and IBM have all employed emotion to strengthen their
market positions Its a good bet that these strategies will serve their brand
masters well even when there is less disposable income in the marketplace.
On a more tactical level, it is critical in wobbly economies that marketers
understand the difference between unproductive and productive awareness (a skill
never mastered by some of the late great dot-coms). Productive awareness is focused
on those markets and prospects that have already shown an interest in purchasing
your breed of brand. These loyalists must then be given a new set of reasons to
stay tethered to the brand, and those reasons must be explicitly relevant to the
new economic times that are crashing in on us. Such persistently astute brand
marketers as Nike, IBM, and Southwest Airlines find a way to deliver their messages
in the most impact-efficient manner possible in good times and not so good times.
Unfortunately, one slippery slope to avoid is viewed by some as unavoidable,
namely, relying on discounting and price promotions that can permanently devalue
a brand. While short-term distribution or share battles may require some tactical
trimming, discounting can become a potent narcotic that ultimately increases the
already rising pressure on earnings. Consider how the McDonalds brand was
hurt by playing the value meal game with the likes of Burger King and Taco Bell
in the early 1990s. Or more recently, note what happened at Dial Corp. when the
company overstuffed the channel with discounted inventory that ultimately created
havoc with corporate earnings. Successful long-term brand builders do not dilute
their brand identity, even to prevent short-term share loss.
Paradoxically, the single most important move a brand marketer can take when
facing economic challenges may be within the company itself, rather than out in
the marketplace. In difficult financial times, every single member of your brand
team and every single co-worker in your company must be rabidly
obsessive about defending and growing your brand. Now is the time to send your
people through comprehensive brand training workshops that help them understand
why brand building is business building. Now is the time to rally the troops with
rousing brand events. Now is the time to have the CEO speak and act with passion
about the sanctity of the brand and the need to create a brand momentum that will
protect the company against the ravages of a recessionary economy. Strong brand-driven
companies such as Starbucks, Charles Schwab, Sun Microsystems, and IKEA are better
prepared to cope with difficult financial markets because their people have a
better grip on what their brands are, and how they can best be deployed.
We have feasted off of the good times for the past decade and now we must make
do with rations of our own making during the winter ahead. May the best-prepared
brands prevail... and prevail they will.
©2001 ASM Communications. Inc. Used with
permission from Brandweek
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