As predicted, we lived through very different times in 2008. Many of us watched stalwart brands make the headlines for bailouts and bankruptcies. Belts were tightened, headcount was shed, fingers were pointed and dramas unfolded. No doubt, we will see this purge continue into early 2009 but likely not much beyond then. 

While there is definitely a down-side to this downturn, the purge will be healthy for the industry. In many ways, we have been living in times of excess and as a friend of mine once observed: “I have seen many more companies die of gluttony than starvation”.  Gluttons are now leaving the table and this can only be seen as a good thing.

For our clients, times of turmoil represent great opportunity for the small percentage of companies that have the bravado and cash to make bold moves in the market. Specifically, times of great challenge are a leveller of sorts for competition and embolden boards for taking major decisions which can have a major affect on the business. Many companies shrink away and adopt risk adverse positions due to previous exposure or perceived harm in taking action. However, when the vast majority of companies in an industry are not taking risks, this aversion lowers competitive barriers and increases the reward for differentiation from challenger brands. 

Ironically, it’s the big brands that have the most to lose during times of strife since large organisations typically act with the most risk-avoiding behaviour in times of uncertainty. Challenger brands that are experienced enough and have the customer at the centre of their focus are at great advantage when times are uncertain and the environment is changeable. 

Despite a palatable drop in UK activity, Brandinstinct’s growth remained on track thanks to increased activity in Eastern Europe and the Middle East. We worked in over 20 countries this year, racking up air miles, new friends and calories.  

The closer we came to 2009, the more our brand strategy and engagement services were called for. Clients are logically focusing less on the big launches and more on creating powerful strategies for their brands, making their teams more customer-focused and preparing them for future expansion. 

Our engagement practice continues to be the highest growth area for our business. We are involved with several large-scale change programmes that are not running beside a branding effort. Many clients are taking advantage of this hectic time to regroup and focus on the inside of the business. 

On a lighter note, the Brandinstinct team will begin the New Year in a new office space. We are moving from the ultra modern parking garage feel of The Tea Building to the intimately more human Georgian feel of Sapling House. The journey is a quarter of a mile and 200-years of architectural history. We are occupying the full four floors and will be having a housewarming party in early 2009. 

Finally, 2009 will also see the launch of a new not-for-profit effort by Brandinstinct aimed at raising awareness among marketing professionals about using brand communication as a tool for positive change in society. You can see the beta version of the blog, download the foundational paper and research, and get involved at www.civilbranding.com. You will be hearing more about the effort throughout 2009. In the meantime, good luck with the year ahead and we look forward to talking with you again soon.

With best wishes

Aaron and Gillian