Phoenix Studios
Brand in an age of retreat
1st April
/
10 min.
Why clarity matters when markets tighten
Markets are under pressure. Trade disputes are escalating. Tariffs are back on the table. Central banks remain cautious, with inflation still unsteady and global growth forecasts being revised downward. Geopolitical instability—from the South China Sea to Eastern Europe—has made international trade more volatile and risk appetite more fragile. The warning signs of an economic slowdown are multiplying, and many companies are already adjusting course.
When the outlook darkens, brand activity is often one of the first things to be scaled back. Campaigns are paused. Budgets are frozen. Brand strategy is sidelined in favour of short-term performance.
It’s a familiar reflex—and an understandable one. But it’s also a strategic risk.
When uncertainty rises, customers become more cautious, more selective, and more focused on value. In that context, the brands that are clearest—about what they offer, why they matter, and how they deliver—are the ones that continue to grow.
Clarity makes decision-making easier
In volatile conditions, brand clarity doesn’t just support marketing efficiency. It supports business performance. A clear brand simplifies decision-making for customers and gives them confidence in the choice they’re making.
According to research by Jill Avery and Anat Keinan at Harvard Business School, brands act as mental shortcuts. They reduce the cognitive load involved in making a purchase decision—particularly when risk sensitivity is high.
During the 2020 pandemic, B2B brands like Salesforce and IBM maintained brand activity while competitors cut back. Their consistent, trusted positioning helped reduce perceived risk in enterprise decision-making at a time when buyer caution was high¹.
Brands that drift lose equity
One of the quieter risks during a downturn is misalignment. The pressure to adapt quickly can lead to inconsistent messaging, tactical pivots, and creative decisions that compromise the integrity of the brand. Over time, these small shifts erode distinctiveness and clarity.
Marketing expert Mark Ritson argues that effective brand strategy starts with diagnosis. Without a clear understanding of where the brand stands in the minds of its customers, strategic decisions are likely to miss the mark.
Michelob, once a category leader in premium beer, saw a decades-long decline following inconsistent messaging that left consumers unsure of what it stood for². The lesson still applies.
Why clarity matters when markets tighten
Markets are under pressure. Trade disputes are escalating. Tariffs are back on the table. Central banks remain cautious, with inflation still unsteady and global growth forecasts being revised downward. Geopolitical instability—from the South China Sea to Eastern Europe—has made international trade more volatile and risk appetite more fragile. The warning signs of an economic slowdown are multiplying, and many companies are already adjusting course.
When the outlook darkens, brand activity is often one of the first things to be scaled back. Campaigns are paused. Budgets are frozen. Brand strategy is sidelined in favour of short-term performance.
It’s a familiar reflex—and an understandable one. But it’s also a strategic risk.
When uncertainty rises, customers become more cautious, more selective, and more focused on value. In that context, the brands that are clearest—about what they offer, why they matter, and how they deliver—are the ones that continue to grow.
Clarity makes decision-making easier
In volatile conditions, brand clarity doesn’t just support marketing efficiency. It supports business performance. A clear brand simplifies decision-making for customers and gives them confidence in the choice they’re making.
According to research by Jill Avery and Anat Keinan at Harvard Business School, brands act as mental shortcuts. They reduce the cognitive load involved in making a purchase decision—particularly when risk sensitivity is high.
During the 2020 pandemic, B2B brands like Salesforce and IBM maintained brand activity while competitors cut back. Their consistent, trusted positioning helped reduce perceived risk in enterprise decision-making at a time when buyer caution was high¹.
Brands that drift lose equity
One of the quieter risks during a downturn is misalignment. The pressure to adapt quickly can lead to inconsistent messaging, tactical pivots, and creative decisions that compromise the integrity of the brand. Over time, these small shifts erode distinctiveness and clarity.
Marketing expert Mark Ritson argues that effective brand strategy starts with diagnosis. Without a clear understanding of where the brand stands in the minds of its customers, strategic decisions are likely to miss the mark.
Michelob, once a category leader in premium beer, saw a decades-long decline following inconsistent messaging that left consumers unsure of what it stood for². The lesson still applies.
Why clarity matters when markets tighten
Markets are under pressure. Trade disputes are escalating. Tariffs are back on the table. Central banks remain cautious, with inflation still unsteady and global growth forecasts being revised downward. Geopolitical instability—from the South China Sea to Eastern Europe—has made international trade more volatile and risk appetite more fragile. The warning signs of an economic slowdown are multiplying, and many companies are already adjusting course.
When the outlook darkens, brand activity is often one of the first things to be scaled back. Campaigns are paused. Budgets are frozen. Brand strategy is sidelined in favour of short-term performance.
It’s a familiar reflex—and an understandable one. But it’s also a strategic risk.
When uncertainty rises, customers become more cautious, more selective, and more focused on value. In that context, the brands that are clearest—about what they offer, why they matter, and how they deliver—are the ones that continue to grow.
Clarity makes decision-making easier
In volatile conditions, brand clarity doesn’t just support marketing efficiency. It supports business performance. A clear brand simplifies decision-making for customers and gives them confidence in the choice they’re making.
According to research by Jill Avery and Anat Keinan at Harvard Business School, brands act as mental shortcuts. They reduce the cognitive load involved in making a purchase decision—particularly when risk sensitivity is high.
During the 2020 pandemic, B2B brands like Salesforce and IBM maintained brand activity while competitors cut back. Their consistent, trusted positioning helped reduce perceived risk in enterprise decision-making at a time when buyer caution was high¹.
Brands that drift lose equity
One of the quieter risks during a downturn is misalignment. The pressure to adapt quickly can lead to inconsistent messaging, tactical pivots, and creative decisions that compromise the integrity of the brand. Over time, these small shifts erode distinctiveness and clarity.
Marketing expert Mark Ritson argues that effective brand strategy starts with diagnosis. Without a clear understanding of where the brand stands in the minds of its customers, strategic decisions are likely to miss the mark.
Michelob, once a category leader in premium beer, saw a decades-long decline following inconsistent messaging that left consumers unsure of what it stood for². The lesson still applies.
Clarity increases commercial impact
Brand clarity isn’t just a communications asset. It’s a multiplier across the business. When a company knows exactly what it stands for and how to express it, teams are better aligned, product decisions are more consistent, and marketing investment works harder.
Kevin Lane Keller, known for his foundational work on brand equity, consistently points to clarity of positioning, relevance to customer needs, and internal alignment as critical success factors.
Patagonia’s unwavering stance on environmental activism is a powerful example. The brand’s consistency has enabled it to command premium pricing, attract top talent, and grow a fiercely loyal community—with minimal paid advertising³.
Distinctiveness matters more than difference
For many categories, functional differentiation is no longer sustainable. Features are copied, services converge, and competitive advantages erode quickly. What does endure is distinctiveness—the brand assets that make a business recognisable and memorable.
Byron Sharp and the Ehrenberg-Bass Institute have demonstrated the role of distinctive brand assets in building mental availability—especially in noisy, low-attention environments.
McDonald’s has mastered this. Even when budgets are constrained, its assets—the golden arches, colour palette, tone of voice, and sonic branding—continue to deliver impact and recall across markets⁴.
Focus improves execution
Effective strategy needs to be understood, not just documented. The more complex and layered the brand becomes, the harder it is for teams to execute consistently.
Research from MIT Sloan shows that companies perform better when they define a small number of strategic priorities and make them actionable.
Trader Joe’s is a case in point. Its brand promise—curated, high-quality products at great value—is tightly embedded in its store formats, sourcing, and culture. This focus has helped it grow steadily, even in periods of broader retail volatility⁵.
A long-term investment, not a discretionary cost
When pressure builds, brand spend can look optional. But the data suggests otherwise. Les Binet and Peter Field’s analysis of the IPA Databank shows that brands maintaining long-term investment through downturns not only recover faster but outperform over time.
During the 2008 financial crisis, P&G maintained investment across flagship brands like Tide and Pampers. Post-recession, it gained market share in multiple categories and preserved brand equity while competitors retrenched⁶.
More recently, brands like Adobe and HubSpot have continued to build B2B equity through consistent brand storytelling and thought leadership, even amid budget pressures⁷.
Final thought
Clarity helps brands weather difficult conditions—and strengthens their ability to perform under them. It reduces decision friction, aligns internal teams, and protects brand equity when everything else is in flux.
In uncertain markets, it’s not the most agile brands that come out ahead. It’s the ones with the clearest view of who they are, what they stand for, and how they show up—consistently and credibly, across every channel.
References
1. Salesforce and IBM brand activity during COVID: Analysis from Forrester and LinkedIn B2B Institute, 2020–2021
2. Keller, K.L. “The Brand Report Card,” Harvard Business Review, Jan–Feb 2000
3. Patagonia Case Study, Harvard Business School Publishing / BrandZ 2020
4. Sharp, B. How Brands Grow, Oxford University Press; plus examples from Ehrenberg-Bass research
5. “Trader Joe’s Strategy Made Simple,” MIT Sloan Management Review, 2018
6. IPA, “Marketing in the Era of Accountability,” Binet & Field; case studies from P&G earnings reports (2008–2010)
7. LinkedIn B2B Institute, “The 5 Principles of Growth in B2B Marketing,” Binet & Field, 2020
Clarity increases commercial impact
Brand clarity isn’t just a communications asset. It’s a multiplier across the business. When a company knows exactly what it stands for and how to express it, teams are better aligned, product decisions are more consistent, and marketing investment works harder.
Kevin Lane Keller, known for his foundational work on brand equity, consistently points to clarity of positioning, relevance to customer needs, and internal alignment as critical success factors.
Patagonia’s unwavering stance on environmental activism is a powerful example. The brand’s consistency has enabled it to command premium pricing, attract top talent, and grow a fiercely loyal community—with minimal paid advertising³.
Distinctiveness matters more than difference
For many categories, functional differentiation is no longer sustainable. Features are copied, services converge, and competitive advantages erode quickly. What does endure is distinctiveness—the brand assets that make a business recognisable and memorable.
Byron Sharp and the Ehrenberg-Bass Institute have demonstrated the role of distinctive brand assets in building mental availability—especially in noisy, low-attention environments.
McDonald’s has mastered this. Even when budgets are constrained, its assets—the golden arches, colour palette, tone of voice, and sonic branding—continue to deliver impact and recall across markets⁴.
Focus improves execution
Effective strategy needs to be understood, not just documented. The more complex and layered the brand becomes, the harder it is for teams to execute consistently.
Research from MIT Sloan shows that companies perform better when they define a small number of strategic priorities and make them actionable.
Trader Joe’s is a case in point. Its brand promise—curated, high-quality products at great value—is tightly embedded in its store formats, sourcing, and culture. This focus has helped it grow steadily, even in periods of broader retail volatility⁵.
A long-term investment, not a discretionary cost
When pressure builds, brand spend can look optional. But the data suggests otherwise. Les Binet and Peter Field’s analysis of the IPA Databank shows that brands maintaining long-term investment through downturns not only recover faster but outperform over time.
During the 2008 financial crisis, P&G maintained investment across flagship brands like Tide and Pampers. Post-recession, it gained market share in multiple categories and preserved brand equity while competitors retrenched⁶.
More recently, brands like Adobe and HubSpot have continued to build B2B equity through consistent brand storytelling and thought leadership, even amid budget pressures⁷.
Final thought
Clarity helps brands weather difficult conditions—and strengthens their ability to perform under them. It reduces decision friction, aligns internal teams, and protects brand equity when everything else is in flux.
In uncertain markets, it’s not the most agile brands that come out ahead. It’s the ones with the clearest view of who they are, what they stand for, and how they show up—consistently and credibly, across every channel.
References
1. Salesforce and IBM brand activity during COVID: Analysis from Forrester and LinkedIn B2B Institute, 2020–2021
2. Keller, K.L. “The Brand Report Card,” Harvard Business Review, Jan–Feb 2000
3. Patagonia Case Study, Harvard Business School Publishing / BrandZ 2020
4. Sharp, B. How Brands Grow, Oxford University Press; plus examples from Ehrenberg-Bass research
5. “Trader Joe’s Strategy Made Simple,” MIT Sloan Management Review, 2018
6. IPA, “Marketing in the Era of Accountability,” Binet & Field; case studies from P&G earnings reports (2008–2010)
7. LinkedIn B2B Institute, “The 5 Principles of Growth in B2B Marketing,” Binet & Field, 2020
Clarity increases commercial impact
Brand clarity isn’t just a communications asset. It’s a multiplier across the business. When a company knows exactly what it stands for and how to express it, teams are better aligned, product decisions are more consistent, and marketing investment works harder.
Kevin Lane Keller, known for his foundational work on brand equity, consistently points to clarity of positioning, relevance to customer needs, and internal alignment as critical success factors.
Patagonia’s unwavering stance on environmental activism is a powerful example. The brand’s consistency has enabled it to command premium pricing, attract top talent, and grow a fiercely loyal community—with minimal paid advertising³.
Distinctiveness matters more than difference
For many categories, functional differentiation is no longer sustainable. Features are copied, services converge, and competitive advantages erode quickly. What does endure is distinctiveness—the brand assets that make a business recognisable and memorable.
Byron Sharp and the Ehrenberg-Bass Institute have demonstrated the role of distinctive brand assets in building mental availability—especially in noisy, low-attention environments.
McDonald’s has mastered this. Even when budgets are constrained, its assets—the golden arches, colour palette, tone of voice, and sonic branding—continue to deliver impact and recall across markets⁴.
Focus improves execution
Effective strategy needs to be understood, not just documented. The more complex and layered the brand becomes, the harder it is for teams to execute consistently.
Research from MIT Sloan shows that companies perform better when they define a small number of strategic priorities and make them actionable.
Trader Joe’s is a case in point. Its brand promise—curated, high-quality products at great value—is tightly embedded in its store formats, sourcing, and culture. This focus has helped it grow steadily, even in periods of broader retail volatility⁵.
A long-term investment, not a discretionary cost
When pressure builds, brand spend can look optional. But the data suggests otherwise. Les Binet and Peter Field’s analysis of the IPA Databank shows that brands maintaining long-term investment through downturns not only recover faster but outperform over time.
During the 2008 financial crisis, P&G maintained investment across flagship brands like Tide and Pampers. Post-recession, it gained market share in multiple categories and preserved brand equity while competitors retrenched⁶.
More recently, brands like Adobe and HubSpot have continued to build B2B equity through consistent brand storytelling and thought leadership, even amid budget pressures⁷.
Final thought
Clarity helps brands weather difficult conditions—and strengthens their ability to perform under them. It reduces decision friction, aligns internal teams, and protects brand equity when everything else is in flux.
In uncertain markets, it’s not the most agile brands that come out ahead. It’s the ones with the clearest view of who they are, what they stand for, and how they show up—consistently and credibly, across every channel.
References
1. Salesforce and IBM brand activity during COVID: Analysis from Forrester and LinkedIn B2B Institute, 2020–2021
2. Keller, K.L. “The Brand Report Card,” Harvard Business Review, Jan–Feb 2000
3. Patagonia Case Study, Harvard Business School Publishing / BrandZ 2020
4. Sharp, B. How Brands Grow, Oxford University Press; plus examples from Ehrenberg-Bass research
5. “Trader Joe’s Strategy Made Simple,” MIT Sloan Management Review, 2018
6. IPA, “Marketing in the Era of Accountability,” Binet & Field; case studies from P&G earnings reports (2008–2010)
7. LinkedIn B2B Institute, “The 5 Principles of Growth in B2B Marketing,” Binet & Field, 2020
Veb Anand, Partner
