Are brands dead...?

At the same time that there is an important opening to try out new products, the consumer still presents a clear preference for brands and products in which he may trust.

There are plenty of articles and authors preaching the end of the loyalty to the brands. In our 4.0 market in which the disruption is faster and more constant each time, and in which the technological barriers, which stopped new incomers from developing products with characteristics very similar to those of the leaders, have practically collapsed, the consumer loyalty is continuously put at stake.

In general, this is what authors like Kathleen Kusek in her article about cultural loyalty and Robin Lewis in his text about the death of mega brands talk about, just to mention two papers. And, yes, in general lines, this is going on. Except that not really. The study “Monitor – Reputation”, developed this year by Perception and Engaje! Comunicação, presents a much more complex scenario, showing what we can call the “Volatile Loyalty”.

Let’s explain: at the same time that there is an important opening to try out new products, the consumer still presents a clear preference for brands and products in which he can trust. In th midst of the cacophony of social networks and fake news, the client wants safety. What really seems to have changed quickly is the way and the frequency with which these brands need to communicate to get the validation of a consumer that is more and more alert and skeptical. A consumer that is the agent of his choices: the leadership is with the consumers.

It’s necessary to build a solid reputation of quality, have the validation of close people, specialists and expert publications. Besides all this, building an image of care with ethics, environment and social issues is seen as a differential. The point of sales is essential, because the decision, depending on the category, may change completely in front of the shelf. That is, the brands need to adapt to the new times that demand a much more pulverized and quick process, that needs more intelligence, strategy and credibility.

The study confirms that the force of the image is still a decisive attribute at the time of the purchase, that is: “if the product is the best” or “the brand is the most known”, it’s this one that I’ll buy: around 30% of all those interviewed said so. Here, it’s worth remembering that his perception does not always refer to an objective validation of the “best” condition, but also to the subjective perception of this quality, almost always influenced by communication.

Another factor that deserves attention is the responsibility of the brands concerning the environment and community. Negative news can, indeed, impact a brand in a very long-lasting manner, especially if it’s from the food sector. And 18% of the consumers (specially the women!) already take into account, in first place, the absence of negative news and care for the environment and the community at the moment of choosing a brand.

We are living a period of crisis, in which the consumer is more rational and each purchase is a new decision to be made, based on the best choice available at the point of sales. The study shows that, since 13% of the consumers show that their first factor of choice is the cost-benefit. It’s exactly at this moment that there is an opportunity and a way of creating identification that reinforces itself at each economic crisis: a brand with better cost-benefit may call the attention of the consumer. If the product supplies their needs, we are already half way there to get this consumer. And let’s not forget that part of them will not return to their brand of origin after the regain of economic power.

Obviously, there is no magical and permanent formula to get a client and to guarantee the next sale. What worked yesterday, tomorrow may no longer be effective. A load of money, at prime time, itself, has not been enough for some time already. The important is – and this works for any type of product or service, at any time and any country – to know and to monitor your client or consumer, continuously. Understand what he wants. How he wants it. Always.

Destaque na Mídia:

Rodrigo TONI

General Manager

Former Regional CEO of Southeast Asia and Former CEO IPSOS Brasil He worked for RI/TNS, Nielsen, among others Specialized in Management at IESE (Spain) and INSEAD (Singapore) Specialized in Survey Methodology, SRC, University of Michigan (USA). Social Scientist (USP) and Agronomist Engineer (USP)