Brand trust declines in 2009

Interbrand and Business Week have released their brand survey for 2009.

This is a hard time for brands and brand managers. Money is tight, people can’t afford to be loyal on a whim, they’re looking for value above everything else. Compelling shoppers to go the extra pounds or dollars for a premium or luxury item in this climate is a stiff challenge. Many brands have been happy to simply tread water, others have vanished or declined and a few have prospered.

Coca-Cola_logo5Any brand tainted with subprime losses has suffered, think Merrill Lynch, AIG, ING. They’ve all plumeted. The toppling of the US auto brands is so self evident it hardly needs mentioning.

People have withdrawn more into their cocoon, they’re growing their own food, preparing their own meals. Thus restaurants suffered but food brands gained.

As nearly always the foolish tack is to trim the marketing budget ever further and pull funds back into the core. Trying short term discounts rather than maintaining prices but adding extra value. When the recession ends the brands may be so devalued and undernourished that the core isn’t worth saving…

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