Expensive prestige brands do so because their reputation has been cultivated over the years to rich people who are largely unaffected by our economic malaise. Witness Burberry’s success or the queues at Fortnum’s and Mason.
Some brands, in a stagnant or declining market do well, because they win share from their rivals by providing innovation, good design, competitive pricing and excellent service.
And some relatively inexpensive brands benefit from the lipstick factor, otherwise referred to the feel good mood they engender.Women buy and use lipstick because it makes them happy. And it is relatively cheap.
Most successful brands are promoted. The better ones identify their desirable unique characteristics. Patek Phillipe sells on the basis of longevity and investment value.
The adage about building a better mousetrap misses an important point. The world will beat a path to your door only if you tell them about your invention.
This recession has made people question whether they actually need a product. They will make a purchase if a good logical reason is provided to enhance the emotional tug of the brand.
Good advertising can do that.