Are established brands too big to fail? If so, do Lehman Brothers, Merill Lynch, GM still command the same brand equity they did prior to the financial fiasco the world is emerging from, hopefully.
I don't think you can ever get too big to be able able to damage your brand... but I do feel that times of trouble determine whether a brand is resilient or not...
According to the Global 500 Report which ranks brands based on their brand valuation, the Tata brand lost only 16% brand equity at the height of the economic crisis while loads of other brands lost between 40-60% equity... Brand Citi lost 59%, Dell 60%, Mercedez Benz 48%, AIG 42%, Allianz 34%, BNP Paribas 33% and Chase 40%!
Brand Tata lost equity due to uncertainty in the auto & steel sectors, the incessant (and still lingering) question marks over their various acquisitions while it gained a few brownie points coz of the Nano .... overall the brand has performed really well and I think its a good example of brand resilience.
So what contributes to brand resilience?
According to me its the faith consumers have in the brand.. the brand has to stand the test of time... which is why functioning with a focus on brand values and delivering consistently will help build equity to such a level that a crisis won't be able to shake the consumer's faith....
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