Three reasons not to cut investment in brand during a recession

Wednesday, 6th February 2008. Posted by phil in Basics, Brand, Brand strategy, Planning, Strategy | Permalink | No Comments »

Research conducted by MORI, amongst 187 senior board directors of the UK's leading companies, concluded that "94% agree that the asset which offers the greatest protection during an economic downturn is a strong brand".

There are three reasons for this:

  1. Confidence - Loyal customers retain confidence in a strong brand even when the going gets tough. Confident customers are less likely to switch brand.
  2. Risk - potential customers, staff and shareholders are more risk averse during a recession. Strong brand mitigates risk in the mind of the stakeholder.
  3. Value - Company value is more likely to remain buoyant in an economic downturn when it is supported by a strong and profitable brand.


Don’t be tempted to stop investing in strengthening your brand, even when all around are losing their heads. By neglecting your brand, you risk exposing the business at a time when recovery is much more costly and much less certain of success. Brand profitability is the ultimate goal but it takes investment. Short term budget cuts may lead to immediate relief of pressure, but they will surely lead to long term heartache.

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