Repositioning around Value

Price is a bigger factor today than it was a few years ago. I hear a lot of consumers talking about downgrading from specialty stores to discount retailers or switching to less expensive brands. As a counter measure, I see premium brands discounting heavily. It’s as if brands and consumers are signaling to each other that this is temporary and as soon as things get better, prices and purchasing, will get back to “normal.”

I’m surprised that I don’t see more brands repositioning around value. I understand the hesitancy, to many people, “value” is synonymous with “cheap” and if you position on price, you run the risk of developing a discount legacy. But, what positioning around value actually should do is shine a different light on the product, one more relevant to what’s on people’s minds today.

I’m only beginning to see examples, like luxury car maker BMW, who mention fuel efficiency in their new commercial. This doesn’t diminish the smooth ride, performance, or the comfortable interior, but it does point out an attribute, already there, that wasn’t getting attention before.

I’m seeing other takes on branding during tough times. Allstate Insurance has done an excellent job of conveying the “we’re all in this together” message in a way that’s actually more inspiring than cheesy. Too bad for them I just saved thousands switching to Geico.

I’m getting together with some buddies after work and instead of picking up a six-pack of the usual mico-brew, I’m thinking about getting some of the stuff we drank in college. It’ll be a novel blast from the past, but it will also cost half as much. This got me thinking that the current economic climate is the perfect opportunity for less expensive brands to remind us that they are nothing fancy, just a solid and reliable standard. Today, ideas like “reliable” and “familiar” resonate brand value. Positioning around exclusivity is so 2006.