Recession will kill weak brands

“This recession will kill off weak brands and make category leaders stronger” says Ian McDougall, Brand Strategist at BrandNew. “Strong brands deliver business resilience in a recessionary market”

If there’s any doubt we’re in a recession go ask the retailers with the SALE signs on the store fronts.

“This is the wrong strategy. Add value to your offer, it’s about value on, not price off. Price off simply reduces your margin and positions your brand as a permanent loss leader”.

BrandNew’s research shows a recessionary market is characterised by a heightened consumer focus on value, on quality assurance and on the propensity to trade down to generics.

“These three factors are constants in all recessions. Your brand must be positioned on value. Quality must be evident but delivered through the product. If these values are not obvious, it signals a weak brand and consumers will shift spending to generics or lower-priced substitutes”.