2008 saw many established brands disappear. Lehman Brothers is no more. Neither is Linens and Things. Aloha Airlines went bye-bye. Bear Sterns is gone. So is Mervyns.

OUCH! 2008 was a tough year. And 2009 promises not to be much better. Some analysts predict that more retail stores will close down this year than at any other time in the country’s history. And the side effects of this will hurt many other businesses.

Yet, I think that all this turmoil will be good in the long run. That’s because I believe that great brands are the ones that survive. Great brands, in my opinion, are the ones that are managed closely and know how to adapt to changing marketplace conditions.

I believe that successful brands are constantly evaluating their audiences, the competitive landscape, the economic situation, and their offerings…and making shifts to address these conditions in order to stay relevant with their audiences, build loyalty with their customers, and stay one step ahead of their competitors.

This does not mean that brands should constantly change what they stand for. On the contrary, once a brand defines its essence and vision…it should stick to it. Yet, a brand is more than just the products and services. I define a brand in terms of the relationship of trust that it builds with its audiences. A trust built by being consistent to its vision and by delivering on its promise.

For example, I think that the American car brands have failed to stay relevant to consumers and have created products that are no longer in touch with the needs and wants of their audiences. On top of that, they have failed to run their businesses in a manner that is financially responsible.

What does “made in America” and “American  car company” mean today? In many ways I believe it stands for an industry that has not invested in innovation in terms of manufacturing processes nor product development. And that, is not consistent with what those brands should be about.

Instead of adapting to the changing needs of consumers and the changing economic landscape, the American car companies became obsolete dinosaurs and are now suffering the consequences and looking for bail outs.

I like to think that  things would have been different if the American car companies had focused on developing fuel efficient vehicles that were well designed, safe, inexpensive and reliable.  “Made in America”…should have meant leveraging technology to create manufacturing efficiencies and innovative products.

In my opinion, the changes I have suggested would have enhanced the value of those brands and would have lived up to the expectations consumers have of American ingenuity and creativity.

I believe that many of the brands that have failed recently, have done so because they have not been true to their vision. They have been victims of corporate greed and mismanagement. They failed to adapt to the economic conditions… they did not deliver on their promise, and they did not build trust with their audiences (customers, investors, analysts, etc.). Many of these brands should have failed long ago.

Undoubtedly, the year ahead will see many more brands fail. Yet, I believe that the brands that will survive are the ones that know how to adapt and evolve. And, those brands will emerge stronger and more valuable than ever.

So, our advice to our clients is to focus on the basics: Remember what you stand for and deliver on that promise in accordance to the needs and wants dictated by the current economic and social conditions. Be innovative, be agile, be open to change. This is what great brands do all the time, and great brands will survive.

So, let 2009 be the year of the great brands.

Please let me know what you think.

Author: Alfredo
Category: Brands in general