According to data from Kantar BrandZ, 34% of brands are in a vulnerable situation in which their brand value does not support their current price position in the market. The inflation phenomenon is taking its toll on some brands that do not know how to pass on these changes to their consumers and as a result this is producing a change in consumption behaviour.
Jaime Lobera, Partner and Strategy Director at APPLE TREE, has reflected in Expansión on what is the best communication strategy to adopt during a period marked by inflation and rising product prices and how these increases can affect the brand image. “In a scenario of inflation, it is the responsibility of the leading brand to set the new price level in its category”, reminds Lobera.
On the other hand, communication and knowing how to convey messages in an appropriate way to your consumers is becoming – today more than ever – a necessity, recalls the Strategy Director of APPLE TREE: “A key aspect during the implementation of a price increase, is communication: Reinforce the brand’s value proposition, invest more in communication and advertising and explain the reasons for the new prices -especially if they are large increases-, invest in measures that reward consumer loyalty by offering for example selective discounts to heavy users or stronger buyers of your brand who may be more price sensitive”.