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Post-Recession Growth |
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Igniting Corporate Brands for Dynamic
Post-Recession Growth
Brands: we live and die and define ourselves by them. Over the past 12 recessionary months, numerous legendary American brands have been seriously bruised, some fatally. No more will we see showrooms packed with muscular Pontiac Trans-Ams, Mercury Cougars, or Plymouth Prowlers, thanks to mega re-orgs and bankruptcy courts. Even the once-invulnerable StarBucks brand took a severe recessionary blow to the stomach, pulling back in its former CEO to secure again the magic theatre associated with a $4 cup of flavored coffee. Venerated bank brands as Chase and Bank of America try to hold their heads up even as they extend an open corporate palm for their share of federal Stimulus funding. As nearly anyone can attest, dynamic brands reflect consumer and stakeholder trust, and there’s not a whole lot of that around at the moment.
The tide, however, is turning. With brand carnage strewn over the global marketplace, the time has returned for the resurrection of the “big idea,” reflected in brands that restore trust, deliver on claims and make consumers feel good about parting with their hard-earned dollars. As chronicled earlier in this column, corporate value propositions – which are the basis of profitable brands – must be re-thought and re-written for growth and success in a post-recession economy. As fiscal sages such as Warren Buffett warn, any company who expects a full return to economic traditions and beliefs predating the fourth quarter of 2008 are in for a rude shock. Key economic performance indicators inch up almost on a daily basis, bringing refreshed hope that consumers will finally begin to consume, depleting stale inventories and driving manufacturing companies to fire up their assembly lines and replenish empty warehouse shelves. But it’s going to be a different world. Consumers and stakeholders, whether in the business-to-consumer or business-to-business sectors, now have a ringing digital voice. Thrashed by furloughs, layoffs, and reduced hours, the wage-earning workforce segments in First World and American economies will be much more careful where they lay out their dollars, Euros, Yen and Pounds. Thanks to the now-expected Tweets from Twitter, authentic voices from popular blogs and ravishing commentary at the conclusion of online newspaper coverage, consumers can save or sink major brands with the click of a “submit” button. Like it or not, your customer wants to have a digital word with you. An established brand with high awareness represents a promise, and consumers in a post-recession economy will not easily forgive a broken brand promise. Real delivery and performance will be the ultimate critical success factors for organizational success as we collectively move into the last half of 2009 and the true recovery year of 2010. Given that digital volume of out-spoken savvy consumers, expect to see more shifts in marketing strategy. In previous recessions, a return to economic growth meant a return to big profits for traditional advertising agencies. Magazines would beef back up with companies running big ads to reclaim market share and traditional broadcast television spot rates would soar, as demand shot up in parallel with consumer confidence. This time it will be different. Newspapers took a major hit in this recession, many publishing dwarfed editions of their former glory, turning instead to consumer-focused online platforms that encourage the readers themselves to submit content. People have changed how they want to receive news and content, requiring old ways and expectations to be changed and changed quickly. As Advertising Age warned recently, all will not be well with those trying to restore the old style of marketing, even for larger ad agencies who should know better. As Ad Age columnist Andy Gould opined, “Many of these sleeping giants have woken up and realized that although digital represents their best growth opportunity, they are way behind in terms of having the resources to deliver.” Lots of hungry talented people, many of whom lost their jobs at mid-to-big agencies in the recession, today produce stunning niche work that combines digital platforms with public relations techniques, packaging up authentic consumer-friendly and credible marketing that is redefining brand development and execution. How can companies reposition themselves for post-recession growth? Don’t even think about “dusting off” your brand to prosper over the coming months. Think instead about how your brand can deliver real performance and value, trumping your competition with real tangible evidence. Simply creating brand awareness won’t work in the days ahead. Re-thinking brand attributes and creating dynamic change in your customer’s minds will be critical. As brand guru Scott Bedbury advises, “The best reason for change is to expand brand relevance and brand resonance, two measures of brand strength that are much more valuable than mere brand awareness can ever be.” If your customers and prospects perceive your products or services as a commodity that has many alternatives, then you better find ways to cut your costs so you can compete on price. If your brand has attributes that are clearly distinctive, but aren’t well known, then you should look long and hard at public relations techniques – including social media techniques appropriate for your space – that can create credibility and that all-elusive third-party endorsement that will build your brand. As advertising legend Al Ries said a few years ago, PR build brands – advertising sustains brands. With consumer trust in disarray, it’s going to be a brand-building and brand restoring year. It’s time for the big brand idea, and how to leverage that idea to ignite post-recession brand-based growth. |
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