Staying Ahead: How Brands Can Lead Through Market Shifts

When consumers are tightening their belts, the priority for successful organizations has been (source):

1. Increasing operational efficiencies (making more for less)
2. Investing in areas of growth (new products, markets, etc.)

The second one is especially important for marketers – while the gut reaction may be to reduce costs immediately by slashing marketing budgets, doing so limits revenue opportunities and will cost the organization in the long term.

Understanding the tried-and-true strategies for navigating downturns and thriving in their aftermath takes understanding some basic facts of branding and consumers.

Let’s take a closer look at these facts.

Fact #1: Brand is the best defense against changing market conditions.

Whether it’s increasing price sensitivity among consumers, increasing competitive behaviors or other market disruptions, strong brands weather the storm better by creating strong bonds with their audiences (source). When consumers trust brands, they are more likely to pay more or postpone a purchase until it is available, and are less likely to switch to emerging brands (source). As the saying goes, “the best time to build a strong brand is three years ago, the second-best time is today.”

Fact#2: You cannot bottle brand demand.

Whether it’s increasing price sensitivity, rising competition, or broader market disruption, strong brands weather the storm by building lasting, emotional connections with their audiences. Backed by research from the Marketing Science Institute and detailed in How Brands Grow by Byron Sharp, the data shows that trusted brands consistently outperform in tough economic climates. As the graphic above illustrates, cutting budget does not simply pause efforts but sets them back considerably, costing the organization in the long-term (source).

Fact #3: Brand drives sales. Sales do not drive brand.

Short-term, easily measurable tactics are tempting but they are ineffective for long-term growth and will struggle as consumers postpone purchases. Meanwhile, long-term strategies can drive purchases in the short-term while still building brand equity that will save money moving forward. As recommended by Peter Fields and Les Binet, authors of the book The Long and Short of It: Balancing Short and Long-Term Marketing Strategies and thought leaders in the marketing and advertising fields, a strong mix of both will help keep the lights on and position brands for sustained, long-term success (source).

What should a brand do if they want to survive the downturn and thrive in the aftermath?

1. Don't stop. As others go quiet, now is the time to speak. Investing in brand-focused messaging will help build lasting relationships with your audience that will have both short- and long-term impacts.
2. Listen to the consumer. Attitudes and behaviors change as the economy fluctuates. Understanding which changes are temporary and which are permanent will help your brand navigate these fluctuations.
3. Work on your story. Giving a strong brand story to a consumer is vital to creating connections with your audience. Understanding the brand, and not just the product value, helps build these connections that will pay off in the long run.

We’ve seen cycles like this before, and we’ll navigate them again. While the ride may have its ups and downs, brands that continue to show up—listening, evolving, and leading with intention—are the ones that emerge stronger.

At Hoffman York, we help brands stay steady through change by building strategies rooted in both resilience and relevance. Because no matter the market conditions, ideas—well-timed, well-told, and well-executed—will get you everywhere.

About the Authors

Troy Alfke VP, Strategy Director

Troy brings extensive experience to his role as Strategy Director, helping brands of all shapes and sizes find their identity, launch new products and develop approaches to better connect with their customers.

Matt Hogan Insights Director

Director of Insights for Hoffman York, Matt works to understand consumer attitudes and behaviors to help brands create deep connections with their audiences.

Alexa Hackfort Consumer Experience Analyst

As a Consumer Experience Analyst, Alexa uncovers brand insights that guide strategy and messaging, with experience spanning SEO, content and website optimization.