War of the Brands during Tough Times

by erica ~ October 16, 2008

While the financial industry is having a meltdown, non-financial companies are taking advantages of the situation. By this, I mean companies are running campaigns that surround the current economic situation while at the same time offering consumers a “great deal” and product awareness. 

The New York Times refers to these companies that are using the current conditions as part of their advertising tactics:

HBO: “Life hurts. Laughs help.”

Crate & Barrel: “Oven-proof. Dishwasher-proof. 401(k)-proof.” Because the pots and pans are cast iron and enamel-clad, they are “a lasting investment.”

Equinox gyms: “Mind over madness,” urges consumers “in these changing times” to make “a renewed commitment to yourself to lead a healthy life.”

Denny’s: “It’s one thing to bail out Wall Street. But who’s gonna bail you out?” (They offer a Weekday Express Slam - a $4 version of its signature menu item, the $5.99 Grand Slam breakfast.)

Although you might think that the financial crisis makes it a tough time for everyone - it’s just the opposite. “This is the best time for creativity ever,” claims Paul Lavoie, chairman and chief creative officer of Taxi, an advertising agency in Vancouver. Agencies cannot avoid existing circumstances and make believe that everything is OK in the economy. As long as their ads are tasteful I can see how troubled times would work to their benefit. 

Brandweek makes a good point by saying that “correctly positioned brands do well in an economy that looks to be in a recession.” Every brand has a potential for success if they adapt to the conditions.  People still need to eat, drink, and take care of themselves no matter how hard it gets so they may turn to generic brands if they cannot afford name brands. Either way someone is making some money no matter the conditions.