CaseBrand Strategy
Fairy Liquid invested through the recession and came out with a wider price premium
+12%
value for money
+4pp
penetration
+40%
sales in 5 years
Going into the 2008-9 UK recession, Fairy Liquid, a premium-priced leader with years of flat penetration, reinvested in brand building instead of running the brand as a cash cow. Its IPA 2014 award-winning case reports +12% value-for-money perception despite higher awareness of its high price, +4 points penetration, 40% sales growth in five years, and a wider price premium over rivals.
More from this source
StatStrong brand building triples the odds of a big drop in price sensitivityStatPricing power kicks in only once brand building clears a thresholdStatThe more a campaign builds the brand, the more likely it is to lift profit sharplyPrincipleBrand building protects price by giving people a reason to buy that isn't priceWarningTreating a premium brand as a cash cow in a recession gives up its pricing power