A study carried out by Booz Allen Hamilton showed that the operating profit of 80% of companies with a strong brand focus is almost twice as high as other companies in the same sector (survey of Top 500 European companies, 2005).
90% of those companies surveyed believed that brand orientation is a key factor in their company’s success.
In the banking sector, brand-oriented companies realised a return on equity of 19% compared with just 8% among the other companies.
In times of recession, companies can win – or lose – market shares very rapidly.
Companies often respond incorrectly during a recession, with marketing budgets being slashed when the company’s management and shareholders call for savings to be made.
A study carried out by the GfK (“Gesellschaft für Konsumforschung” or Association for Consumer Research) analyzed the behaviour of 700 brands during the last recession after the internet bubble burst in 2002-2003.
The clear winners during the last recession were those companies that did not reduce their marketing budgets but instead invested anti-cyclically. They were able to achieve significantly higher growth than in normal times.