OK. So, I’m reading Brand Week’s “Survey on Brand Loyalty”. I know what you’re thinking, but I am NOT “a virgin”, and I do “have a life”. I just love Brand Building that much!

• “Consumers are not buying based on price alone. Instead, they are relying more on their perception of value when deciding which brands to stay loyal to during the recession. “
• “there is a price-value formula consumers use to calculate brand differences and to decide which brands to buy,” said Passikoff. “Shopper consciousness has shifted from just trying to ferret out deals to looking for brands that provide value.”- Kenneth Hein, Brandweek, Feb. 28, 2009

That means everything to Brands like Nike, J. Crew, Viva Paper towels, and Tylenol. Due to the economy, they face encroachment on their market share from “store brands” and private label products that offer “EDLP”. How do they do it? They modulate their message and their offering, to meet the consumers expectations of value. Additionally, they find new ways to communicate their core values and the effectiveness of their products against the backdrop of a consumer base looking to tighten their belts, and lighten their bills.

If you are Tylenol, or Zyrtec, you make it clear that a “headache or an allergy symptom” doesn’t stand a chance against your brand. They get it done every time, the first time. Why would you risk it for a $.40 savings, when you know you’ll get the relief you are looking for from the product that “your mama gave you”? Yeah, I said it, “Your Mama”!

If you are Nike,or New Balance, people will run on their old pair for a few more weeks so that they can save the extra jack that it will cost them to buy a new pair of the brand they trust, rather than going to a lesser pair. Nike and New Balance do a great job of making sure that you know that your shoes “will last a couple extra weeks”, and they will do it in the style you are accustomed to.Why would you abandon “The Swoosh” for a pair of “knock-off”, “third world Nikkes” and a $30.00 a pair savings?

The logic is sound.  Build a great product. Make solid connections with your consumer, and then, when times get rough, compete on the virtues that your clients already recognize as part of your brand. That way, all you have to do is drop your price (which is likely to be cushioned by a significant margin in many cases) and advertise, HARD!

The lesson, if you are a small business or regional player, and “not a multi-national mega-conglom”?:

Build a Brand.  If you already have one, make sure that every consumer in the categories you compete in hears about your values and value.  Then, live up to it every time.  Take every opportunity to drive your messaging more deeply into your key demos. Now is not the time to stop Advertising or Marketing efforts.  Now is the time to refine your message and target more effectively. You CAN actually market more aggressively and more effectively for less money, if you “build your machine right” and stay attentive to your consumer.

Come to think of it, I know of a company that does that sort of thing.  Look, I wouldn’t give this out to just anybody, but if you call Welt Branding, and let them know that you know me, they could help you to literally “steal market share”, even in a recession.  How? Well you’ll just have to ask ‘em when you talk to them, 513.321.9358 (WELT)…