Brand Building in Tough Times
By Lee Yew Meng

Brand building is already tough. But is it more difficult in tough times like these?

A recent Brand Innovations workshop which we participated in, threw up many gem-like ideas at a time when many branding and marketing budgets are slashed during this economic downturn.

So how can anyone maintain good branding with low budgets?

Ms Tham Moon Yee and Mr Lee Yew Meng from Stratagem Consultants (far right and 2nd from far right)
with Mr Donald Steel from BBC (4th from far right) and other members of the ABF Brand Innovations Workshop in Singapore


One interesting case study showed how a luxury hotel responded to the challenge. It did not cut down on the nice napkins and other frills including top-notch President Butter at the tables.

As a result, the guests do not feel shortchanged or detect a drop in brand value. So long as there is consistency in excellent service -- the mantra of luxury hotels -the quality offerings will stand the test of time.

Another golden nugget offered was a case study of a consumer product --a Chinese health supplement -which has continued to thrive despite the recession. Despite cost and margin constraints, the company focused on the product's top quality which is the conerstone of the brand. This tip-top quality remains unchanged in good times and bad, hence preserving the brand value.

How important then is the identity and name of the company to good branding?

Plenty, says one expert at the workshop who drew attention to some names such as Sum Ting Wong, the name of a Chinese restaurant. The restaurant name needed to be changed to strengthen customer appeal and make better business sense.

But there again, names themselves may not prove to be the biggest factor. For example, McDonald's "Big Mac" has a strange connotation in Canada but that has not stopped its runaway success. The same with fashion brand, FCUK, which is still selling well.

Having established your company's brand name, how do you defend and protect it if the company encounters challenges to its reputation?

According to another workshop expert, the challenge to a company's branding and reputation comes when it runs smack into a major crisis. And incompetent handling of such a crisis can erode brand value permanently. So brand value has a lot to do with how it is communicated to the audience.

Some key points in managing a crisis include:

• Establish facts not assumptions. You tend to get only scant facts in the first few hours.
• You should know who is in charge if a crisis erupts.
• Keep it simple. If the building is on fire, press the fire alarms.
• Understand your priorities. Preservation of life takes priority over the business.
• Be guided and not be ruled by the media's deadline to provide answers. Apart from the journalists, no one is obliged to fill the airwaves or newspapers' columns.
• Stay within your competency to speak. Avoid speculations and getting emotionally involved.
• Internal and external communications must be fully aligned. Are your internal communications top notch and ready for a crisis?

While it is all too easy to say cut this or that cost, the reality is that public relations and a big dose of well-managed media relations will help to reinforce your company's brand image in a difficult economic situation like now. And it will help your company to tide over the current bumpy ride - and benefit more from the recovery that is bound to come.

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