News

Brands in Crisis

By Mijo! Brands

October 26, 2012

Since the economic crisis began we have all seen brands reducing their revenues and many of them have even succumbed to complete bankruptcy.

However, the market share for these brands has not disappeared but has been filled by other brands offering similar features.

One of the main reasons we prefer one brand over another is the emotional reaction or connection that we hold for the brand. However, the economic situation at the time has made consumers become much more rational and price, not brand loyalty, has become the main purchase motivator for products with similar features.

But what concrete actions are required to strengthen brand position in difficult economic times?

a) It is important for the employer to meet with key people in the company to jointly determine the new direction and brand value.

b) Times of crises cause dynamic market characteristics and the needs of the consumers vary, so it is advisable to use market research to determine if a brand continues to have relevance.

c) Is the brand supported by creative and innovative members of the company to generate the new brand value and move it forward?

d) Is trust being promoted in the brand? How? In difficult times, the clients seeks relationships that give them confidence, especially in the brands they buy.

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