whether or not these lessons still hold true

in 2009. Surely, the ongoing global financial crisis has brought about paradigm shifts in virtually all businesses and industries. Inevitably, market dislocation caused a lot of business models as well as brands to collapse. Major companies (e.g. GM), small countries (Iceland) and whole industries (e.g. investment banking) were challenged. Other enterprises that were not merely successful, but also had sustainable strategies prior to the crisis found themselves in a better position but arguably all of them had to rethink and redefine their business mix and align their marketing mix to the new reality. Essentially, all of the lessons mentioned in the article are general principles that still hold true. However, the crisis has in my opinion put emphasis on some of their aspects which I have listed below.

Lesson #1: Brand Engagement is Crucial

Strong branding has proven to be very useful in the crisis, bringing further value added. Large companies, especially banks that have established themselves as system-relevant have enjoyed survival by the means of state aid. As an example this shows that having strong branding and a well-communicated strategy has helped very much shape the image of importance needed to qualify for state aid (in addition to objective criteria such as balance sheet size).

Arguably, what Jim Thompson refers to as “the proper training of employees so they embrace and live corporate brand attributes” was less relevant in my view. It was the original business strategy that had failed, not the employees that carried it out. Moreover, the employees have nothing but succeeded in following these wrong policies (e.g. extending credit to unqualified borrowers), regardless of obvious incompatibility with brand culture etc.

Lesson #2: Luxury Brands Adjust to the Tides of the Global Economy

Luxury brands are in a segment more resilient to recessions and market disruptions because their average consumer is affluent and thus likely to remain largely unaffected, hence still continue to consume. Yet, the global crisis has highlighted that paramount to being crisis-proof is proper management. Some luxury brands such as Versace and Zenith (watches) have found themselves in financial trouble, despite their premium status. BMW, on the other hand has seen much less volatility in their sales in a much more troublesome sector. This illustrates that luxury brands are adjusting differently so that this lesson is not always true.

Lesson #3: Know Thyself and Build Trust in Others

Communication policies and openness have proven especially true in times of economic uncertainty. Naturally the “going green” mania has been tuned down recently (although it has not completely gone out of fashion yet) due to more serious issues that need communicating in times of crises. Such as the core businesses values that the customer needs to be reminded of.

Lesson #4: Brands are Defining Borders in the Global Economy

Much as in lesson #1, some strong brands have managed to become system-relevant on a country level (or relevant for whole regions, e.g CEE/SEE/CIS). Thus they have seen additional benefits from their relatively well communicated internationalism. This lesson is still very much valid.

Lesson #5: Technology Continues to Empower the Consumer

Social networking on the Internet and the democratizing of consumer response to brand/company wrongdoings is certainly to the benefit of the consumers. Yet it could also be to the benefit of the company (as in the case of Apple), thereby having a multiplication effect on either sides. Still, this lesson is very true and the trend towards more recognition of that phenomenon from the company’s perspective is likely to continue.

Is there a lesson #6 and is a lesson no longer necessary?

A “back to basics” lesson has to be added. Companies currently reorganize, rethink and redefine their corporate strategies stressing on what they do best. The non-profitable or non-strategic business has to be

divested, deleveraged and deconsolidated

and that is likely to affect the brand as a whole. Therefore my lesson #6 is “focus on what you do best and brand it accordingly”. Pending consolidation and forthcoming M&A activity in many markets it is a good advice for any business to concentrate on core fields of expertise, to take care of its core customers and to reinforce its core cash flow drivers. All of that should be mirrored in an updated brand strategy.