Marketing 101 How brands change during times of crisis By Gina Meyers Brand, Product, Product Category, Product Differentiation

Marketing 101

How brands change during times of crisis

By, Gina Meyers

Brand, Product, Product Category, Product Differentiation

A brand is the name or symbol that represents a product. A product category is the generic class to which the brand belongs. The distinction between brand and product category is important for several reasons. First, the product category defines the brand’s competition. Defining the product category broadly or narrowly will therefore affect a brand’s strategy. Secondly, distinction between brand and product category is important is that a company may wish to develop a product line, that is, a line of offerings within a certain product category. PepsiCo developed a line of different flavored drinks under a Slice label, to compete in the fruit-based category. 

Whatever product category the company falls in determines what is the product line that they expand and create. 

Thirdly, a third reason for distinguishing between brand and product category is that, at times, a company may be interested in stimulating demand for the product category as for its brand.

In the time of war, or in the time that we are in, during the Covid-19 Pandemic, you will find many companies who have built their brand based upon specific characteristics and criteria, however, in a time of crisis, they are willing to take their brand and change the product they will create and sell.

Market fluctuations in the demand of specific products in the times of crisis will dictate what the companies decide to manufacture and sell, it will be based upon consumer demand.

This is why you see General Motors and Tesela, both known for manufacturing cars, creating, selling and manufacturing ventilators. Also, breweries and wineries who are capable of producing wine and beer, though there is still demand for their product as they are considered “essential businesses” and do not have to shut down during a time or war, pandameic or crisis, many are also mass producing hand sanitizer as the process is within their capabilities based upon their goods and the available supplies that they already use in their everyday business.

Product Differentiation:

In economics and marketing, product differentiation is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products.

Consumer Goods are considered convenience, shopping, and specialty goods. For a company to stay solvent, responsive to consumer needs they must change their marketing model to accommodate the changing needs of the consumer and the world that they do business in.

In the past, small and large businesses could advertise to new and emerging markets based upon consumer interest/demand and company’s desire to produce niche products to their intended users.

Businesses that try to remain solvent in an ever changing volatile situation, such as during a pandemic, must be constantly changing their marketing model to accommodate the dictates and demand of regulatory agencies and end users/ also known as customers. 

In times of crisis, there is no luxury in “doing business as usual”. Even if you have an “essential business”, deemed necessary for the operation and functioning of a society.

Bottom line, if you want to survive, you have to get creative, keep your customers safe, and change with the market.