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We're now in a recession and branding budgets are almost always the first things that big companies cut. This is Facebook's bread & butter. Facebook will need t
by nickb 18y ago
We're now in a recession and branding budgets are almost always the first things that big companies cut. This is Facebook's bread & butter. Facebook will need to make some heavy cuts if they plan on searching for another three years.
- anamax 18y ago> We're now in a recession and branding budgets are almost always the first things that big companies cut. Does/will Coke cut its branding budget? I think that there are very few companies with valuable brands. (Sony might have one, but how many people buy something because it says Pioneer on the box?) The rest may have some name recognition, but that doesn't move much product.
- nickb 18y ago> Does/will Coke cut its branding budget? Yes, of course. They all do. When you have less demand and people have less disposable income, you tend to put more money into measurable advertising that can directly impact the bottom line. I think you'll agree that Coke's brand is safe and as Buffett says, the moat is very, very wide indeed so to them, cutting branding budget will not show any impact for at least 2-3 quarters.
- timclark 18y agoCoke is almost 100% a branding company. The sugary water distribution and manufacture is franchised in most territories.