Features and tRends

(June 2009)

What Are High-Performing Brands Doing That Your Brand Isn't?

By Lyndsey Forster

To market in the current economic climate, companies have to dig deep and find new ways to reach their customers. As more and more companies and consumers spend less, convincing your customers to buy your product or service is getting that much harder. Yet despite slumping sales, decreased consumer confidence and the challenging economic climate, there are still many companies making the grade and continuing to fare well.

Weathering the Storm

Two of the hardest hit industries – automobile and housing – have produced a number of failures. Numerous builders have seen their businesses go under and now General Motors, once thought to be invincible, is filing Chapter 11.

Regardless of the automobile industry’s troubles, General Motors’ competitor Hyundai has out-performed every car manufacturer in the retail sector during the first quarter and is continuing to gain market share. In the housing sector, brands such as LG and Andersen Windows continue to be leaders in their divisions. What are they doing to continue to thrive that others aren’t?

Proven Marketing Strategies

The main differentiation between those companies that survive the recession and those that don’t is that the successful are continuing to market and promote their brand and products…all while demonstrating compassion for their customers. Appearing as if you are merely reaching into your customers’ pockets right now can be perceived as insensitive and can help accelerate poor performance. Successful companies understand their core customers and ensure they are building relationships, not just selling a product.

Instead of retreating, Hyundai made a fierce push into the limelight with its Hyundai Assurance Program.  The program guarantees buyers that if they should lose their job within a year of owning their new vehicle, Hyundai will take the car back.  All consumers have to do is return the car and there will be no negative equity, no bad credit report and the case will be closed.

Hyundai understands the currently devastated consumer psyche and instead of saying to their audiences, “buy our car because you need a new one…” they are saying, “we understand things are bad for you and your family and we want you to know that we care.”  While the majority of other car companies posted double digit losses for the first quarter of 2009, Hyundai suffered a mere 1.5 percent decline according to the Washington Post.

Marketing during this extreme downturn will more than likely favor Hyundai in gaining market share when things do turn around . . . and they will.  Adweek points out that consumers are now posturing “brand-less” after the loss of Detroit’s Big Three and many of the Japanese automakers’ heavy suffering. By taking advantage of the situation and aggressively marketing, Hyundai and other automobile manufacturers stand a much better chance of defining themselves as leaders.

Similarly, LG Electronics has made a strong push in the last year with its marketing and product innovation. A global company with consumer electronics, mobile communications and home appliance product lines, LG remains on top. The company recently unveiled its new steam washing machine, propelling the new product release with both television and print advertisements. In today’s economy, sitting by the wayside is a sure way to be forgotten.

Andersen Windows understands this, ensuring it remains at the forefront of consumers’ thoughts by piggy backing on the current tax credits bandwagon for energy efficient upgrades to homes. Recently the company unveiled a new program called EcoExcel™.  The new energy performance package allows consumers to easily identify which products meet the stringent criteria and for which are eligible for the tax credit.  Andersen makes it simple on the consumer and shows their customers how much they care. In doing so, Andersen continues to boost its bottom line.

Companies We Admire

Combining aspects of social responsibility, innovative marketing, customer service and social media, Comcast and its Comcast Cares Campaign have really taken strides in strengthening its image. The company recently sponsored a national volunteer day to beautify schools, parks and neighborhoods. Moreover, using twitter and social media, Comcast is addressing customer complaints. In doing so, they have defied the recession and posted a 5.4 percent increase in the first quarter of 2009.

Kohler has taken social responsibility to new heights and launched SaveWaterAmerica.com. The site was launched to provide more than one million dollars worth of product to Habitat for Humanity and educate homeowners on water savings…all while promoting its brand name.

Rubbermaid is another great example to follow when considering social media. The company is using various platforms such as Facebook, Twitter, and its blog – Adventures in Organization – to further its positive brand image.

Similarly, Mr.Steam, a K&A client, started a unique loyalty group on LinkedIn where participants in the manufacturer’s Passport Program could discuss ideas, sales strategies and challenges.

Honorable Mention

Eldorado Stone – internal communication and performing well in a downturn.

PlyGem – continuing to improve operations.

A New Way of Thinking, A New Way of Marketing

It is easy to be caught up in doing things the same way they have always been done. But new times and challenges call for new measures. To make sure your company is well positioned for an upturn, keep your audience in mind and have empathy for what toll the economic climate may have taken on them. When things turn around, as they always have, your business will remain a leader by continuing to market and showing loyalty and compassion for your customers. 

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