It's half past the recession - do you know where your brands are?

We are a year (+/-) into the current recession and depending on who you ask, we may have another year to go before we start seeing a real recovery. The severity of this recession and the current view that it may be a prolonged downturn has created a profound shift in consumer sentiment that some experts say could be a permanent change in attitudes on spending, and consequently, the brands they value. If it has been more than a few months since you have completed a portfolio mapping exercise to assess the relative position of your brands on the competitive landscape, it’s time to check again. The shifts in consumer attitudes happening now are so strong, you may quickly find your brands in a disadvantaged competitive position if you don’t monitor them closely.

Case in point... The recently released 2009 MetLife Study of the American Dream points to a profound shift in consumer hopes and fears about their future. Many have shifted their attitudes and behavior from striving for a better life (via greater income to fund greater consumption) to a much more defensive posture; they are worried and seek to protect what they have now vs. trying to improve their position. The change is pervasive; it is present across the nation and across all socio-economic classes.

From the study:

"...roughly two-thirds of Americans surveyed for the study feel more stress about their own financial situation than they did one year ago. Now, 55% believe their finances are heading in the right direction, down from 61% in November 2006. Unlike previous downturns, no one — no social, political, generational, economic or racial group — is immune. While some differences in concern exist among generational cohorts, ethnic groups and income levels, what is most notable about the current financial crisis is its scale and scope. Even the mass affluent (defined in this study as those making $100,000+ in income per year) are feeling the squeeze. More than half of mass affluent Americans are worried about losing their job over the next 12 months — and 53% say they are concerned about having to file for bankruptcy in the event of a job loss."

Against this backdrop of sweeping changes in consumer attitudes, the position your brand occupies is subject to change quickly, either from the changes in attitudes and behavior of your consumers or due to relative changes in how your competitors are perceived. Times of shifting perceptions demand more frequent attention to portfolio mapping and the strategic decisions that accompany this process. A rigorously constructed portfolio map - one that illustrates the position of your brands, your competitors, key consumer buying segments and trends in market demand - can reveal potential opportunities and vulnerabilities, and point the way toward greater success in the marketplace.

In addition to being a time of pain and challenge, recessions can be a time of opportunity, when you are able to anticipate and seize opening market spaces or reposition your brands faster than the others to gain leverage over your competitors.