One of the most visible and psychologically important effects of the recession has been the disappearance from the High Street of a number of well-known, established, and - in the case of Woolworths - much-loved brands. Even a company with a venerable, established reputation is not immune to the unpredictable new business world we find ourselves in. So how can you ensure that your brand flourishes in the downturn and you avoid the fate of Zavvi, The Pier and the other big casualties of difficult times?
If even strong brands are vulnerable, should you look at cutting costs and reduce focus on intangibles like brand? In fact, holding your nerve and maintaining a vigorous marketing strategy is the best advice for hard times. Have a clear strategy; know what you stand for; know who your customers are, and communicate with them appropriately.
Brands on the run
In a recession the temptation can be to cut your prices, but this can damage the brand irreparably. A brand is a seal of quality, but it also gains the customer's trust by creating a sense of recognition. Brands help you differentiate: think about the way Stella Artois or Remy Martin distinguished themselves in overcrowded marketplaces by being positioned as luxurious brands. They create value, and that value is almost certainly recession-proof. Or consider the way that a relatively unbranded product like milk can suddenly increase in value when a company like Cravendale gives it a distinctive, attractive brand. The way for companies to survive is not to reduce prices and risk devaluing yourself.
Brand-led companies like easyJet recognise that the brand is like the writing in a stick of rock: the brand underlies the ethos of the company, and that includes its people and values. Marks & Spencer and BT, for instance, are proving how important the concept of sustainability can be to a brand. Customers don't just want a good quality product, they want to know what the company's values are. Through its authentic and credible brand, M&S can convey its commitment to fair trading, the environment and transparent labelling in ways that create a huge emotional bond with customers.
Starting out
Contrary to popular belief, you don't need a bottomless pot of money to start building a great brand. The Body Shop turned necessity into virtue when it designed its simple, plain packaging. It was inexpensive, because the company was too small to afford fancy labelling, but that plainness became part of the brand ethos: pure and simple products that did not damage the environment. Virgin's logo was famously scribbled on the back of an envelope by a student. And if building a brand seems too much of a challenge, or irrelevant when you're starting out, then bear in mind that all the great brands started out as small companies. Less than a century ago, Tesco was a single market stall in the East End of London.
If you are concerned that your brand is nonetheless suffering in the recession, what about rebranding? A fresh look can help - but the risk is that you can defocus a strong brand by tinkering. And you can lose customers if you alienate them from a brand they liked. But done well - and supported with thorough research, rebranding can stimulate growth by attracting new customers to a company they might not previously have considered.
Rebranding can harmonise markets, as HSBC achieved when it wanted to bring Midland Bank in line with its global operations, a move Aviva is now doing with Norwich Union. The trick is to introduce the customer to the idea gradually, and try to keep some visual link between your old and new look. Rebranding can also help create a new market for your product, as Lucozade did when it rebranded from a health drink into an energy drink. It's worth remembering though that rebranding isn't just about designing a new logo - it's a major strategic move, and not one to be undertaken without careful consideration.
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