StatBrand Strategy
Pricing power kicks in only once brand building clears a threshold
% of cases reporting very large reduction in price sensitivity
about 3x3.5%
1 branding effect
10.3%
2 branding effects
The link between brand building and pricing power behaves like a threshold. Cases with one very large branding effect were no more likely than those with none to report a very large drop in price sensitivity (3.5% vs 3.8%), but at two effects the share jumped to 10.3%.
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StatStrong brand building triples the odds of a big drop in price sensitivityStatThe 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 priceCaseFairy Liquid invested through the recession and came out with a wider price premiumWarningTreating a premium brand as a cash cow in a recession gives up its pricing power