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Seven lessons for European Premium Brands looking to thrive during recession.

Research released on Thursday 14th January 2021 from the EACA Knowledge Centre of Effie Europe winners reveals 7 salutary lessons on how marketing communications enable premium brands to thrive during a recession. 

Titled the “The worst of times, the best of times: how communications enable premium brands to thrive in tough times” the research has been conducted by Donald Pirie and Gurdeep Puri of The Effectiveness Partnership, who have analysed data from EACA Effie Europe winners from 2008- 2019.

Contrary to industry commentators’ expectations that premium brands suffer the worst in recessions, The Effectiveness Partnership found Premium Brands can weather recessions well through adhering to these 7 lessons:

  1. Communications that drive stronger profit and value growth for premium than non-premium brands, both in and out of recessions.
  2. The most successful campaigns for premium brand in recessions balance volume growth with value growth.
  3. Reaching and persuading new users into a premium brand is the strongest driver of large business effects in and out of recessions.
  4. Successful premium brands focus on one audience segment to give communications more focus.
  5. Most successful premium brand campaigns in recessions support new product launches.
  6. Emotional campaigns are even more effective when you’re a premium brand in a recession.
  7. Broadcast and narrowcast channels work hand in hand for success.

The EACA Knowledge Centre for Effie winners divides brands into five categories Superpremium; Premium; Midmarket; Value; Other/Not for profit brands. 

Premium brands, which are the focus for this study, are defined as brands which command a price premium, brands which are desirable, and brands that have a reputation for quality.

This whitepaper is available to download free of charge here or from ww.eaca.eu. 

Authors from The Effectiveness Partnership Donald Pirie and Gurdeep Puri delved deeper into the findings as part of the launch of this whitepaper at the Euro Effies 2020 virtual gala at 4pm CET on the 14th January. 

Following a short presentation of the findings Donald and Gurdeep was joined by Euro Effies co-chair of Judges Claudia Kuhn, Brand Building and Integrated Communication Manager, Procter and Gamble; and Brian McCarter, Chief Strategy Officer, EMEA, Ogilvy to explore the implications for client and agencies. 

Says Gurdeep Puri, co-founder The Effectiveness Partnership and co-author of this report: 

“The Effectiveness Partnership was delighted to be able to conduct this rigorous research into Euro Effie winners from the EACA and offer these rays of hope to premium brands – showing that communications can help premium brands not just survive but thrive in a recession.”

Says Tamara Daltroff, Director General, EACA: 

“These findings reinforce the importance of communications agencies working in partnership with brands to drive effective marketing communications as a vehicle for growth…” 

For further information on the study or for a discussion about how The Effectiveness Partnership can help with other research and analysis get in touch: gurdeep@theeffectivenesspartnership.com

The European Association of Communications Agencies (EACA) represents more than 2,500 communications agencies and agency associations from nearly 30 European countries that directly employ more than 120,000 people. EACA members include advertising, media, digital, branding and PR agencies. EACA is the licensee for the Effie Awards Europe, introduced in 1996, the Effie Awards Europe were the first pan-European marketing communications awards to be judged on the basis of effectiveness. EFFIE® and EFFIE EUROPE® are registered trademarks of Effie Worldwide, Inc. and are under license to EACA.