WarningBrand Strategy
Treating a premium brand as a cash cow in a recession gives up its pricing power
In a downturn the tempting move is to stop investing in a mature premium brand and milk it as a cash cow. The IPA's Fairy case shows that the brand which keeps building can grow both its sales and its price premium while rivals compete on price.
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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 priceCaseFairy Liquid invested through the recession and came out with a wider price premium