Insights/ Articles
Why you should focus on brand building in a declining economy September 5, 2017 / by Sebastian Nastuta

Taking risks when everyone is playing safe might just be the winning strategy on the long term

Why you should focus on brand building in a declining economy

Brand building is about long-term thinking. It cannot be reserved only for growth times. Brands are built over years and during a recession they get the chance to be considered by consumers who would otherwise not take notice or see relevance. Certain companies accelerate during a recession, seeing the downturn as an opportunity and raising their marketing investments. Certainly, marketers are in a tough situation and they have to decide how to approach the brand building process.

The arrival of recession is the time when marketers have to change tactics and create new ways to provide brand value. More than ever, the recession gives marketers an imperative to rate their brand building process. At the same time, the brand building process is seen as a luxury in downturns by many entrepreneurs. Cutting the brand building investment is the easiest option but if a company wants to succeed it must consider investing money smartly behind fewer but strategical projects. Of course, there will always be price promotion, a marketing strategy glorified by many companies. Many contend that a recession is the time to forget focusing on brand building and to concentrate on stimulating sales. But they will destroy the brand with their own hands and they will shout out loud that they are vanquished by the tough situation. Therefore, the marketing approach should remain more focused on brand building than hard-selling in spite of what may seem more practical and safe in the short-term.

During uncertain times, we as human beings tend to place our trust in those people we believe truly understand us. Similarly, empathy becomes an important source of brand differentiation during a recessionary period. When every cent matters we accept fewer risks and are likely to choose brands that are highly relevant to our immediate needs. We look for products that represent a genuine value, not because of a price promotion, but because they deliver on their promise. Empathy is an essential ingredient in any brand building, even during good times.
Staying on top is about focusing on the long-term goals, continuous engagement with clients and employees and bringing empathy to the brand building process.

Brand building during a recession is not an impossible task. If you have some money that you intend investing in a marketing strategy, this is the perfect time to consider a brand building program for your business. The reason is because during a recession there are more people who choose to stay home to save money. It’s a scary time, and they don’t want to spend money. On the other hand, brand building during a recession will provide you some competitive space and is going to be a bit cheaper for you to do it. Prices are cheaper for everything in such times and this is the part of a recession that you must take advantage for. The effort that you put into brand building is going to increase your brand recognition during and even after the uncertain times. With so many companies falling in the recession tricky trap is no better time for your business to begin an extensive brand building program.

Consider all the options before you begin sinking money into marketing enterprise and steer you budget toward a long-term strategy such as a brand building process.

So, learn to express the power of strong brands in the face of declining competition. Remember that brand building is about long-term thinking and brand building in a recession is about taking advantage of tough times.

Explore the topic of brand building not in terms of growing share of profit, but in terms of reaching dedicated customers for a long-lasting relationship. Most importantly, remember that the brands that endeavor and succeed in building their brand in a recession will be best placed to enjoy the results of their labor when the economy inevitably returns to growth.

innerpride offers proven expertise in brand strategy, visual identity, print and interactive communication for start-ups, emerging or established businesses. We specialize in defining and reshaping brands for today’s changing marketplace. Discover how innerpride can help you transform your business and outrival the competition.

See how innerpride helped businesses evolve through strategic design.

Offices / Headquarters
Offices / Client services


The Ministry 79-81 Borough Rd, London SE1 1DN, UK