In times of crisis, the importance of brand value increases

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A Nielsen study of 4,000 consumers analyses the keys to brand success and their challenges for the future. Leadership and Innovation continue to be key to a successful brand even in times of crisis. Brand Heritage, Convenience and Tradition differentiate consumers' favourite brands. In the current environment, price is a key element in the consumer's purchasing decision, and especially promotional price.

90% of the brands analysed that have gained or maintained market share in their category have opted for a “visibility” strategy, increasing their Promotions and Advertising Investment. On the business owner data other hand, the Brands that have reduced their prices and reduced investment in promotions or advertising have lost market share.
How important is the value of brands in overcoming the current economic crisis? Which strategies are achieving the best results in order to avoid losing market share? Do consumers opt to buy cheaper brands, or do they remain loyal to those they already know and trust?

Nielsen, a leading global market research company, answers these and other important questions based on the results of a survey of 4,000 consumers, as well as an analysis of the evolution of sales of consumer products and the different pricing, advertising and promotion strategies used by brands.



In the current market situation, it is clear that the value of brands is more important than ever. The choice of a brand revolves around clearly emotional components, however, we have always talked about classic values ​​such as Innovation, Awareness, Differentiation, Recommendation, Positioning, Trust, Price/Quality Ratio, Convenience, Quality, Promotions, Assortment, Prestige, Attractiveness….

But… what are the real keys to being better positioned for the future and facing the different situations that the market is going through?

The analysis carried out by Nielsen on the behaviour and characteristics of a basket of more than 30 categories of Food, Beverages, Drugstores and Perfumery throughout 2009 allows us to highlight two clear values ​​for the brands: Leadership and Innovation.

Leadership. During the beginning of the recession and up to the first half of 2009, there were significant changes in the purchasing habits of Spanish consumers. With the first signs of market stabilization, in the last quarter of last year, the first and second brands stopped losing sales, recovering homes that had been lost in previous periods.