13 July 2009 - 14:52Best Global Brands And Recession: Suggestions For Brand Evaluation

Business Week published its annual “Best Global Brands” list last week. The usual top brands are still on top, Coca Cola, IBM, and Microsoft. Some like Google have jumped from #20 to #10, and retailer H&M is on the list for the first time at #22.

“The 100 Best Global Brands are a reflection of the global economy – the current credit crisis in the U.S., the growth of emerging markets and the increased emphasis on sustainability are all key trends that resulted in brands rising or failing on the list,” said Jez Frampton, CEO of Interbrand. “The increasing complexities of the global economy reinforce the importance of protecting and growing a brand. It is a company’s most valuable asset – and a far less volatile asset than others during a time of economic uncertainty.”

With the economy heading for an official recession it raises the discussion about marketing in a down economy. Do you cut budgets? Do you keep them the same? Do you increase marketing budgets? Many companies have taken advantage of down economies in the past to increase their brand positions when there is less advertising/marketing noise. Take BMW for example, who in 1974 reintroduced itself as the “Ultimate Driving Machine,” a slogan that is still being used today. BMW not only rebranded itself from a manufacturer of sports sedans to a maker of SUV’s and luxury sedans, but even surpassed Mercedes in the luxury brand auto market.

With tight credit and diminishing sales, companies need to evaluate where to cut costs and increase cash flow, but they also need to re-evaluate their brands. According to Business Week, “When times get tough, people reexamine old habits and brand loyalties. Their tastes shift dramatically as they cut back.”

Maybe it’s time to reevaluate your company’s brand by:

• Internal research to see how employees, management, and channel partners understand your brand and how well it is communicated to customers.
• External brand research with customers to understand how well your brand is resonating with them.
• An internal review among company management and stake holders to refocus on unique selling points and unique positioning statements facilitated by a non-partisan third party.
• Touch Point analysis – Reevaluate where your brand comes in contact with your potential buyers. Has that changed? Are you spending too much money on one medium, when it would be more cost effective to market through another medium?
• Web analysis – On your website, is your core message to your clients and prospects clear.

Studies have shown that companies that strengthen their brands during a recession are 7 times more likely to come out of the recession stronger. This is because companies that rebrand successfully are positioned to reap the rewards of better consumer confidence during expansions. The lesson is simple — no matter what type of business you run, don’t put branding on the back burner during these hard times.