Can a powerful Brand Beat an economic depression?

Can a powerful Brand Beat an economic depression?

Despite dismal economic and business conditions, two companies with strong brands appear to become oblivious towards the chaos that surrounds them. Within an atmosphere that appears to possess no silver lining, Colgate Palmolive and Apple Computer have published results lately that will make any company envious. How did they are doing it? Good management along with a strong brand seem to be the magical combination to conquer the worst of recessionary conditions.

The present economic atmosphere in the last 12 several weeks continues to be not encouraging. The Dow jones Johnson Industrial Average (DJIA) and NASDAQ Indices are lower over 35% because this time this past year. The U.S. unemployment rate has risen by 2.3 percentage points – to 7.2 percent – since the beginning of the current recession in December 2007, based on the Bls. The Customer Sentiment Index arrived at a 28-year lower in 2008, based on the College of Michigan.

Pointless to state, yesteryear 12 several weeks haven’t been favorable to lucrative business growth. Yet two companies with strong brands have were able to weather the storm very well. The effectiveness of their brands has instilled deep customer loyalty that seems to become unbreakable, even if consumer expenses are under tremendous pressure.

As economic prognosticators still predict disaster and gloom, consumers appear prepared to spend their hard-earned and well-guarded money on the brands they love and trust probably the most. Think about the recent earnings reports from two brands contributing their particular product groups: Colgate Palmolive and Apple.

Colgate’s (CL) 2008 4th quarter earnings leaped 11%. Their internet earnings rose to $401.two million, or 73 cents a share, from $361.two million, or 65 cents a share, last year. The organization, whose brands include Colgate tooth paste, Irish Spring soapy Ajax cleaner, stated sales rose to $3.21 billion from $2.9 billion last year. Colgate achieved this stellar performance regardless of the decrease in worldwide advertising costs by 140 basis points.

Apple (AAPL) lately reported the very best quarterly revenue and earnings within the company’s esteemed history. The organization published record revenue of $10.17 billion and record internet quarterly profit of $1.61 billion. All Apple’s key brands demonstrated strong growth: Apple Mac pc sales increased 9%, ipod device sales increased 3%, and iPhones sales increased 88% within the year-ago quarter.

These businesses could achieve outstanding produces a recessionary atmosphere by creating and building a strong brand. That’s great news for companies and economists which are seeking a way to success with the fog of recession.

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