Do brands reveal their true character in tough times?

In facing the coronavirus (COVID-19) pandemic and subsequent disruption in nearly all industry sectors, brand’s choices reveal its nature or true personality, strengthen or damage or perhaps transform its relationship with its customers?

Brand actions during critical moments such as this can prompt a consumer to “reassess and convert positive memories into negative ones or vice versa,” A single event can “drive transformational emotions and cause a dramatic change in the relationship.”

During these times of crises, choosing the right form of brand behaviour and executing it at the right time can infuse more meaning to consumers’ relationships with your brand. But what is certain is that businesses who use these tough times wisely, as opposed to adopting a siege mentality, will come out the other end in a much better position. 

Remember, this is your brand and you have been working so hard over the years to build up. A much better strategy is to find some clever way to add value and differentiate your products or service. This strategy will have positive longer-term benefits for your brand.

Another common reaction to tough times is to cut the marketing spend. Buyer interest may be shrinking the market but by finding fresh ways to utilise your marketing budget you will show appreciation of the new customer. From a communication perspective there is a real opportunity to start a new dialogue with customers, strengthen those important relationships and connect at a deeper level. By showing a clear understanding of customer’s current wants and providing some pleasant surprises, you will stand out from competitors

McGraw Hill Research’s findings in the US in 1985 showed that for aggressive businesses that had maintained or increased their branding and advertising during the 1981/82 recession, sales had risen by 256% over those that had reduced their spend during 1981/82. A further study in 2001 found aggressive branding in that recession had increased their market share in the post recession period 2.5 times the business average.

The process of innovation is often easier to manage and more cost-effective during economic downtimes. In difficult times consumers are more thoughtful, more aware and more focused on what they need. This has a possibility of altering buying patterns and also creating unmet needs. For organisations that care to look, there is frequently an opportunity to launch innovative new products, build customer loyalty and even start new businesses.

Some of the brand-related areas where value can be added in these difficult times include:

Brand Refreshment – A rethink of the external expression elements of the brand to reflect the more discerning consumer base (in terms of true value, relevance and integrity). This more selective consumer trend will last beyond the recession itself.

New Product or Service – For companies that care to see beyond pessimism, recessions have a history of spawning great ideas. But these product or service ideas need to be carefully branded and presented to ensure a positive uptake.

Brand Storytelling – Generating a series of engaging stories from a consumer perspective that clearly demonstrate your understanding of, and empathy with, the current mind-sets of your customers.

Value Chain Enhancement – This is an ideal time to look at the internal and external behaviours at every customer interface in your value chain to see where real gains can be made over your more lethargic competitors.

A well-crafted strategic marketing plan helps you navigate rough seas when the winds don’t blow in your favour. Most marketing actions don’t get real results until they’ve been consistently applied for at least 3 months. Understand that building trust and changing people’s minds and behaviours takes time. Every time you cut your marketing spends, you’re resetting that and you’ll end up spending more money and time trying to get it back than if you left your strategy in place.