Tyrone Pardue

The current economic climate has affected almost every brand. Main street has more empty storefronts than any time in the last 30 years. Starbucks closed over 600 coffee shops, the banks are redefining themselves, and the car industry is being changed beyond recognition. It’s time for every business to take a step back and re-evaluate its brand and product offering.

A good example is Cox Communications. Their business services unit is using the recession as an opportunity to offer voice and data services, targeting small business customers who have contracts with the big telecommunications companies. Spotting the potential early in 2008, Cox began planning to extend its media brand into this profitable niche, with a quality, economical service to meet anticipated demand.

"The economy is opening up the minds of smaller and medium-size businesses," Kristine Faulkner, Cox Business vice president of product development and management, said in an interview. "Now they're saying, ‘Maybe I should look at the cable company.' Our call volumes are up because businesses are looking to save money."

Faulkner was one of Multichannel News' Women to Watch for 2009. She said Cox's business services unit is on track to see double-digit growth year-over-year and will bring in close to $1 billion in new revenue this year. The company expects to exceed that number in 2010.

Another good example is Ultima Car Care, one of America’s leading manufacturers of car detailing products sold online and in stores. Last year, company owner, David Ostroff, knew the oncoming recession would take a bite out of profits unless he found a way to extend his brand into new target markets.

Thinking out of the box, David realized that thousands of his loyal car care customers’ households also had motorcycles parked in the garage. So he developed a sub-brand called Cycle Armor aimed specifically at bike enthusiasts who, like his car care customers, maintain their bike with great pride. His manufacturing plant in Florida developed the exclusive range of products that are sold in kit form so they can easily fit into a motorcycle gear bag. The new sub-brand allows the company to generate more sales form its existing customer base while attracting completely new customers.

To successfully enter a new market niche, create a sub-brand, or develop a new product, it is wise to evaluate your existing brand by carrying out what is commonly called a brand audit. The purpose of the audit is to understand where your brand fits into the competitive landscape, and how your plans for expansion might affect your customer’s perception of the brand.

This sort of analysis is usually not something that you can do yourself, but is best done in collaboration with a brand specialist that has experience with all aspects of brand management as well as a broad understanding of sales and marketing. Different consultants have different methodologies but the end result should always shed light on how your brand is performing against the competition, how it matches up to your brand promise and what the opportunities are for future development.

For more information on my Brand Audit service, email me.