Marketing Services Blog

Benefits of a Strong Brand – Part 2 of 4 – Strong Brands Thrive During Economic Downturns

Remember the old fable about the ant and the grasshopper? The ant labors all summer long storing up food for the long winter ahead, while the grasshopper spends the warm summer months singing, dancing and playing. Then when the winter arrives, the grasshopper finds itself dying of hunger while the ant is taking inventory of all the food it had stored. The story concludes with the grasshopper, ill prepared for the hardships of winter, struggling for survival and ultimately starving to death.  

 

Surviving Economic Downturns

Research has shown that during economic downturns consumers become more selective and value-oriented in their purchasing decisions. Simply put, they fall back to the brands they are familiar with and trust.   They do this because during a recession, people are more careful with how they spend their money. They have limited discretionary dollars to spend and are more inclined to remain with a trusted brand than take a chance with an unknown one. 

 

Like the ant from the story, companies that have spent the time, money and energy to build a strong brand during good economic times will have stock piled enough loyalty from their customers  to allow them to survive when the economy inevitably turns.

 

Marketing through Recessions

Unlike the grasshopper however, companies with weaker brands trying to make it in today’s slow economy can survive if they are willing to think counter intuitively and invest in their brands now while their competitor’s voices go silent. History has shown that companies that significantly reduce their communications with their customers wind up selling less and losing more business to their more opportunistic competitors who are out there still communicating to the market space. This is business that they will be hard pressed to get back after the economy recovers.

 

Over time, having a proactive uncontested voice with your customers will provide long-lasting results such as increased brand recognition, market share, sales, and profits.

 

Coming Out Strong on the Other Side

Businesses that refuse to follow the grasshopper mentality and work hard to remain visible while everyone else goes dormant will be in a stronger position when the economy recovers. By maintaining or increasing brand awareness in the collective consciousness of your customers, you will be ideally positioned to take advantage when the economy re-starts. Additionally, you will be well ahead of your inactive competitors who will have to crank up the marketing machine from a dead stop in order to re-establish their brand and market value again.

 

So, is your company the ant or the grasshopper? 

 

For a no risk assessment of your brand or to simply meet and discuss your company’s branding efforts, give our b2b brand agency a call at 440-449-6800.

Read more:

Click here to read the Benefits of a Strong Brand e-book.

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