Sunday, June 7, 2009

What Things You Will Never Give Up?

I want to ask everyone what are some items in your life that must have; you will not switch from that brand? It could be a product, a service or a place that you shop or eat at; really anything that you buy. An example for me is Chiptole. I absolutely love Chipotle, and while I will still eat at other places, I won't go to Moe's Southwest, because in my mind, Chiptole is the only burrito.

The reason I ask is to look at some similarities of all of these brands, as well was the ways they are unique.

So what is it for you? Will you only work on Apple and not PC's? Only drink Pepsi and not Coke? It could be anything, just let me know what your favorite brands are. I welcome all comments.


Monica said...

I'm the first to post! For my mom and I, it's Tide detergent. She's been a loyal customer for years and I have followed. We won't buy any other brand to clean our clothes.

This is a great post; another topic this leads into is the strength of brand loyalty in today's society and the drive for lower price even at the expense of quality/loyalty....or maybe this is where you were heading?

Alexander said...

Excellent comment Monica. Not a lot of people do branding better than P&G, especially when it comes to the Consumer Packaged Goods sector.

This current economic crisis and the massive erosion of wealth has tested the strength of many brands as people look for cheaper options. In the fall, the rate of savings in the US jumped from a negative number to something like 51% percent, so it's clear that people have become more price aware and less "brand loyal."

However, I believe this current economic crisis shows businesses exactly why they need to develop strong brands; you said it yourself, you and your mom will not switch from Tide, even today.

You trust them and they have never let you down, so what is 50 to 60 more cents, especially for something that is bought so infrequently and is still relatively cheap.

In sum, a brand is bigger than price. Sure, some will switch from their favorite brands to save, but they will still be a trusted brand to them, so when they can afford to go back, they most likely will, and sales will bounce back.