The Power of Brands in a Pandemic
For years a debate has raged – do brands matter anymore? In the age of the Internet with unlimited product information at our fingertips, some argue brands are no longer needed to help consumers make buying decisions. Enter 2020 and COVID-19.
“I think the pandemic has really revealed just how important brand equity is,” said Beanstalk’s Michael Stone, speaking at Licensing Week Virtual. “Who would ever have thought four or five months ago that finding a 12-pack of Charmin or a 6-pack of Bounty at the supermarket would be like winning the lottery? Consumers really are searching out their brands today.”
On the flip side of the coin is another trend we’ve seen throughout the pandemic – scarcity breeds brand indifference. If you’re out of toilet paper, you’ll take whatever you can get. And yet, the last few months have made clear, when given a choice, consumers will gravitate to brands they love and trust.
Feeding the Soul
This has become particularly clear among CPG brands, which are reporting a surge in sales thanks to pandemic pantry-loading.
- Proctor & Gamble’s Scott Goodfellow: “Brands that people look for are getting more hits, and more hits faster.”
- Christopher Urban, The Kraft Heinz Company: “Consumers have returned to some of those staples we have had in our portfolio during the pandemic, and it is reminding them of their love for the Kraft Heinz brands.”
- That sentiment was echoed by Zion Doran of Kellogg’s: “Things are on fire for us since everyone started eating at home. In this time, people have really turned to brands and products that bring them comfort.”
It’s no surprise that people are turning to nostalgic food brands in our restaurant-starved world, and the “comfort factor” driving brand uptake is also being seen across other categories like publishing and toys where consumers are seeking out beloved favorites for escape and to combat boredom.
The Licensing Factor
Many brands are now looking to ride the wave of renewed consumer affinity with product extensions they might never have considered pre-pandemic.
- The Bush’s baked beans brand (say that five times fast) just signed with Beanstalk to enter complementary food categories for the first time ever.
- Kraft Heinz recently announced it is expanding its non-food product lines with agency Brand Central, and this week, Urban said his team is now looking to extend the Kraft Mac and Cheese brand into adjacent food categories and specialty retail.
In fact, more brands seem to be making themselves available for licensing than ever before, as the pandemic boosts their cachet and the trend toward nostalgia breathes new life into older IP. “Licensing is a very effective way to stay engaged with consumers when you can’t stay engaged with them the way you used to,” explains Stone. Not to mention bring in fresh revenue…
Many of these insights were shared at sessions during Licensing Week Virtual.
