We talk a lot about the pressures on brands to perform and about the difficulties of staying competitive in huge and rapidly changing markets. Nevertheless, global brands experienced a 12 percent increase in value in 2014 – and there are powerful lessons for all those responsible for brands in how they did that. If demand generation is part of your role, here are eight things that you can be doing to retain reputation, stem decline and make the most of upswings in economies and consumer preferences.
1. Be part of a rising category – According to Millward Brown, the top 10 apparel brands, for example, grew by 29% last year. If you have brands in this or another of the rapidly growing sectors, that’s a clear prompt to be investing to meet what is clearly increasing interest. If you don’t yet have brands in one of the rising categories, are there ways that you can naturally (and quickly) extend your brand into these burgeoning categories through acquisition, partnership, licensing and/or co-branding?
2. Be part of a resurgent economy – If your brand is spread across diverse regions, it makes sense to focus on those areas of the world where there is inherent economic growth driven by rising consumer confidence. To ride the wave, look for ways to get a foothold through an agency arrangement or work with an established player to increase their stock range. Also introduce premium lines to take advance of rising aspirations.
3. Tackle social issues – A number of sectors are fighting reputational issues at the moment. Brands in areas like fast food and soft drinks need to directly address their social impacts or risk being disrupted by healthy challengers. Equally brands with potential ethical issues – environmental, social, health-related, behaviour based or that involve processes that people feel strongly about such as animal cruelty – are going to need to show that they are actively minimising the downsides of what they do. Addressing reputational issues won’t necessarily mean growth, but it will help arrest declining sales.
4. Increase “share of life” (Millward Brown’s phrase) not just share of market by integrating and extending ecosystems. Apple are the masters of this approach, closing loops between product and content in order to retain control and to encourage consumers to stay and shop within their universe. By diversifying into new areas of interest and maximizing brand equity as they do so, brands can look for smart ways to be more involved in every person’s every day. As Nigel Hollis observes, “. Apple spans our needs for entertainment, music and productivity. Amazon fulfills our need for convenience with effortless one-click shopping and relevant purchase recommendations for stuff we never knew we wanted. Nike, with its Nike+ Fuelband, has transformed itself from a mere apparel brand to a companion and coach for runners.” They do this through that they offer and what they socialize.