MarketSense compared 101 household name brands during the recessionary period 1989-1991. Jell-O, Crisco, Hellman's, Green Giant and Doritos saw sales drop by as much as 26 percent to 64 percent. In the beer category, overall spending was down 1 percent while Bud Light and Coors Light, each spending ahead of the category, saw sales increases of 15 percent and 16 percent, respectfully. Pizza Hut's sales rose 61 percent and Taco Bell's 40 percent thanks to strong advertising support, with McDonald's volume down approximately 28 percent. What to do For the average small business, the instinctive reaction is to spend less and protect profits, and the best way to do that is to make the easiest cuts, normally in advertising and marketing support.
Nobody has to be fired and nothing has to be closed down.
But for those who seek to be aggressive, a number of proactive tactics are available that will optimize brand performance during bad times. That long-standing relationship will help them provide a real understanding of the brand vision and how it should be communicated in tough times. The consumer rationale is in how you explain the value message of the brand. As media prices soften, it becomes a buyer's market. At that point, lock in on long-term deals.