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A recent Adweek poll revealed that the majority of people in the ad industry believe ads should focus on value during the recession.

Thanks for the revelation!!

Value has always and will always be important. But value should be a long-term brand virtue, not a short-term brand reaction. Value is something a brand builds painstakingly and carefully over time. The brands that understand this concept and are able to successfully build value into their brands and communicate a value proposition to consumers effectively will be able to cash in on that value investment even during tough times.

Starbucks, for instance, is just now discovering that it failed to build value into its brand. In an attempt to combat this perception, it’s launching a print campaign warning consumers about the dangers of “trading down” for their coffee. This campaign is just one part of a large scale backpedaling effort by Starbucks to justify its higher prices. It’s probably no coincidence that this campaign launched only slightly before McDonald’s new McCafe campaign. Contrary to conventional wisdom, McDonald’s is rolling out a premium coffee line AND focusing on its more expensive menu items…all during an economic downturn. And guess what? It’s working! Data shows that only 10% of McDonald’s sales are from the well-known Dollar Menu – as opposed to 12% and 15% for Burger King’s and Wendy’s value menus, respectively. Why? Because McDonald’s took the time to build value into its brand a long time ago.

So of course, our ads should focus on value. But value doesn’t just mean price reduction. And value isn’t a quick fix for a long term brand crisis or economic downturn. Value must become inherent in your brand – at any price point. If not, the brand (or your marketing team) hasn’t done its job right.

LINKS
Adweek – In a Downturn, Ads Should Focus on ‘Value’