Remember, many brands have thrived during past economic downturns. Perhaps the most famous example is that of Kellogg, which doubled its advertising spending during the Great Depression and, as a result, watched its sales soar. McDonald’s grew in the hard-hit 1970s, and Toyota expanded into the United States during the financial tumult of the early ’90s when the “Big Three” automakers began to flail. In the current downturn, economically priced Dunkin’ Donuts is pressing forward by opening new outlets and launching its “You Kin’ Do It” ad campaign-an effort, no doubt, to take market share from Starbucks.
Keep in mind, simple packaging doesn’t translate into staid, boring packaging. Today, with competition at a premium, it’s important to stand out and be noticed-to stop people in their tracks.
Of course, premium brands are faced with the same challenge as other brands during a recession. They’re just as pressed to demonstrate that ultimate value can be found in quality. And because they want to capture the broadest possible audience, they often hedge bets with price tiering-taking a good, better, best approach-so consumers can choose the price point where they find most comfort.
It’s pretty clear that value brands like Choxie are best positioned in this recession. Now is their time to shine. And, if you fall in this category, communicating cost-per-use information on the package is an effective means of letting shoppers know they’re economizing by using your brand. For consumers bruised and battered by the economy, value brands are actually somewhat heroic, helping where other brands can’t.