Expert Highlights Effect of Branding on Consumer Behaviour in time of Recession
An expert in the business of brand management, Mr. Dominic Orimogunje, has posited that branding can only work well in a recessed economy if an organisation can keep reviewing its brand positioning in order to confer desired values on consumers.
Mr. Orimogunje, who is the Brand Manager, West Africa, PZ Cussons, and the Guest Speaker at the Town and Gown seminar of the Department of Business Management, Covenant University, stated this on Friday, February 10, 2017, while delivering a lecture titled, “Branding and Consumer Behaviour in a Recessed Economy.”
He noted that for any company to compete favourably in a recessed economic climate it must work at identifying its market segment, target that segment, and position the brand as well as establish a clear brand differentiation plan needed to attract favourable market share.
Mr. Orimogunje posited that manufacturers’ activities during a recessed economy, most time, attract steady price increases, subtle product pack resizing and ring fencing of the ‘Above The Line,’ ‘Below The Line’ and ‘Out-of-Home’ advertising campaign budgets to compensate for the bottom line, while still maintaining their market share.
However, he noted that there is always corresponding consumer behaviour response during this period. Among such reactionary responses would include, reduced spending from consumers who then consider value for money, tendency to go for quality product preference and embrace well known products.
The guest speaker stated that when an economy enters the recession mode, like the one Nigeria is in; there is amenable purchase of unknown cheaper brand compared to what consumers will tend to buy under a buoyant economic climate.
“In all of these, the company must use their silent merchandiser, the communicate elements of branding on the products to engage the shoppers and consumers, providing them with more clarity about the product offerings,” he explained.
In his welcome remarks, the Head, Department of Business Management, Dr. Oluwole Iyiola, said while the University’s philosophy is that no one should ever stop learning, it is imperative that continuous learning be channeled towards the scope of active industry practitioners.
He noted that the topic of the seminar was a front burner issue that cuts across various disciplines, and believes that the lecture coming from an established and deep rooted practitioner would broaden the horizon of participants on the way forward in a recessed economy.