Value brands do not just compete on price. Although price is important, value brands also deliver a strong brand experience through customer service, quality products, and brand consistency. Businesses today must adapt their operations, marketing and advertising strategies to remain competitive and relevant, but staying true to the brand is fundamental. This is easily said for necessity-based brands that can better weather a recession, and will inevitably use this opportunity for growth at the expense of competitors. But for lifestyle, luxury or experience brands, the most dangerous pitfall will be the temptation to digress from what defines them in favor of value-based messages. Especially for these image brands, upholding what they stand for is what will keep consumers identifying with them – and that means staying on brand. Consumers need to see that brands are both recognizing and adapting to market pressures. But brands are built upon an enduring belief and if customers stop believing, they will stop caring – a fate far worse than any short-term recession.

2008 has already seen the demise of some well-established brands like Circuit City, Lehman Brothers, Mervyn’s, ATA and Aloha Airlines, but also the emergence of new ones like Better Place and Twitter. To ensure their brands survive long enough to succeed in these challenging times, businesses must avoid losing sight of who they are and why their brands matter. In the recent words of Harley Davidson, “If 105 years have proved one thing, it’s that fear sucks and it doesn’t last long. So screw it, let’s ride.”

As brands become more sophisticated in this space, expect to see more experimentation as they try to define what works for them. A good example is the site Generation Benz, by Mercedes-Benz. Essentially creating their own social networking site, Mercedes-Benz is tapping into its own community to target prospective customers and learn what they value. This interesting spin on the social networking phenomenon is capturing for Mercedes a passionate, engaged audience that will help shape the brand’s future.

There is no question social networking is here to stay – what remains to be seen is how businesses will penetrate and weave this social fabric into their media mix to gain access to a more connected and expressive consumer. In 2009 expect to see more and more befriending as brands and consumers seek to define the rules and boundaries of social networks, and as importantly determine the metrics for measuring success in this new medium.

Numbers can work on many levels. Some enjoy global recognition like Xbox 360, which clearly defines the comprehensive reach of its gaming system. Others work more locally like 303 Magazine, named for the Denver Colorado area code and 7x7 magazine, which provides editorial on the happenings within the 7 square miles that make up San Francisco. Numbers can also be used to represent concepts or ideas within specific cultures and nations. The gas brand 76 was named for the year America gained its independence, imparting the brand with a sense of nationalism. In Chinese culture, the number 8, symbolizing prosperity, is often linked to companies’ brands, phone numbers and Web sites, while 4 and 7 are considered unlucky and thus strongly avoided. Numbers can also hold significance within a particular industry. The name of accounting firm 415 Group is a clear reminder of the April 15th tax day – equally significant for accountants and taxpayers alike. In telecommunications, five 9s (99.999%) depicts service reliability and is used extensively. In the gambling industry, lucky numbers or gaming references like online casino 32Red are highly valued.

In the race to find new names in 2009, numbers may just be the answer – especially when reinforced with unique design and communications to help secure trademarks and build a meaningful brand story.

Apple has successfully proven that its unique configuration of generic shapes (a circle, square and rectangle) are recognized as the Apple iPod brand, and have recently been granted a trademark in the music player category. A simple line drawing used on Apple-approved iPod accessories has helped prove their case.

Companies are on the offense, securing every possible form of Intellectual Property – then aggressively defending their marks by tracking and pursuing potential infringement. Typical contracts today include terms like ‘throughout the known universe’ or ‘in perpetuity’. Expect the significant capital and resources invested annually in defending existing assets to increase as protecting valuable trademarks is cheaper than creating new ones. As always, big brands are taking their investments seriously. Engadget Mobile (a Web-based information site) was asked to promptly discontinue using the color magenta by T-Mobile, trademark holders of the bold color in the telecommunications category. Upset by the request, Engadget posted the cheeky matrix below portraying the lack of consumer confusion, yet acquiesced to the request anyway.

So what new types of IP will the patent and trademark office grant next? Perhaps, the weight of a mobile phone, the dimensions of a tire or the exact number of flakes in a cereal box? In 2009, the practice of protecting IP and trademarks will continue to expand and be even more aggressively defended.

So how can consumers do their part to fuel America’s economy? Other than supporting the U.S. brands that proudly create their products using solely American materials and employees, such as American Apparel, Burt’s Bees, Carhartt, Trek, KitchenAid, Maglite and Zippo, the consumer’s strongest role may be promoting the consumption and popularity of American brands. Much of the world is still enamored with American brands: Levi’s, Polo, McDonald’s, Starbucks. The onus will be on American companies to continue investing in the innovation behind their brands to maintain strong consumer appeal, at home and abroad. It’s not the manufacturing but the innovation and inspiration in which America is leading.

So rather than Made in America, in 2009 expect to see much more in the way of Inspired, Created or Designed in America. American brands are proud of their heritage, values and products, but more importantly, the innovation that American brands bring to the marketplace will ensure their continued global success.

This was written on a Macintosh computer, designed by Apple in California.

The most visible of these technologies is the growth of mobile couponing, which offers clear benefits for both consumers and brands. True, mobile couponing has been around a while, but changes in mobile usage behavior are now increasing its viability, value and adoption, following trends in Europe and Asia where it’s already thriving. Coupled with GPS technology, brands can now track and target consumers in the right place, at the right time. Imagine driving past a coffee shop and receiving a coupon for a free pastry with the purchase of a latté.

Camera phones open the door to more proactive and creative mobile couponing tactics. For example, Crunch Gyms made the most of their call-to-action billboard and offered a free guest pass to anyone who brought in a snapshot of their outdoor advertisement. The next wave in mobile couponing will encourage customers to scan product barcodes and receive offers directly at the point of purchase. The beauty of these kinds of incentives? Consumers won’t just opt in, they’ll be the ones actively initiating the request. And, they’re timely, personal and trackable. Marketers can evaluate results and metrics almost immediately, and ideally evolve the transaction into a relationship. Cellfire, the mobile-couponing service, has reported mobile coupon redemption rates of 5-15%, much higher than the average 3% return on traditional printed coupons. Mobile coupons seem a sure-fire way to reach a generation of users who aren’t reading newspaper circulars and won’t go anywhere without their mobile phones.

In 2009, use of these services will clearly increase, but as importantly, the way people use and think about their mobile phones will be what really continues to evolve.

Apple uses design to secure a price premium on their products, proving that consumers will pay a higher price for well-designed products and services, particularly when coupled with a compelling and synergistic brand image. Nike is enabling consumers to realize their own innovative designs with its custom-designable Nike ID products – appealing to high-performance athletes as well as the fashion-forward. Using practical style as one of its core differentiators, Target has improved aesthetics and functionality across numerous everyday products from prescription medicine bottles to housewares. Their loyal consumers prove that design can drive preference and create a distinctive, fun brand personality that stands out in a crowded marketplace. Appliance manufacturers like Whirlpool and LG have injected smart and colorful design into everything from washing machines to refrigerators making household chores more efficient and a little less mundane. Johnson & Johnson has invested heavily in an internal design studio charged with building brand distinction and operational efficiencies into its designs. Beyond just differentiating its products, the studio emphasizes an improved sustainability approach to design and packaging with the use of environmentally conscious materials, combining real product innovation with an efficient design ethos.

Although they may have different motivations and strategies, all brands are looking for ways to differentiate themselves. In 2009 expect to see more brands utilize design more effectively to deliver better products, services and experiences that also help to make the world a better place.

Consumers are becoming inventors, advertisers, videographers, managers, evangelists, stylists, copywriters and critics. They have created ads for Dove, Heinz, Jeep, KFC and Mastercard, even a Super Bowl commercial for Doritos. They have helped develop new products for IKEA, Lego, Nokia, and Nespresso. They’ve influenced P&G’s robust research methodologies and provided insight on everything from airplanes to zippers. And everything they share is recorded, reviewed and blogged on. The engagement train has clearly left the station and there’s no stopping it. If you don’t already have an online user group, ideation site or creative competition you’re considered behind the times. But beware, this newfound intimacy with consumers doesn’t always work in one’s favor: Chevy’s user-generated video concept generated a significant number of negative responses, leaving a decidedly bad taste in the mouths of its executives.

But a few false starts won’t stop this movement. From mass-market competitions to targeted user groups, brands are using social networks to go both broader and deeper. Dell runs both IdeaStorm and StudioDell, two idea generating sites inviting consumers to act as “brand advisors” to share, review, rank and help determine how Dell can improve their product and service offerings. And Dell isn’t alone – Cisco, Google, HP, Intel and Microsoft are all doing the same.

The floodgates are open. 2009 is going to bring more consumer input and companies will need to learn to think and act differently about what they do with it. Just be mindful, consumers can be a brand’s strongest advocates and its harshest critics.

Consumers are bombarded with choices. Faced with two branded options, the one that offers them the opportunity to support their community or a good cause will increasingly win. Especially as economic pressures limit individuals’ ability to make outright donations to their favorite charitable organizations, consumers will be drawn to brands that help them effortlessly give back. More brands are catching on to this trend and offering such initiatives. They’re also making sure we know about it. Just as brands want to garner positive associations for their do-gooder efforts, likewise consumers are more boldly showing their support – in some cases by literally wearing their hearts on their sleeves.

Project RED has enabled some of the world’s most sought after brands such as Apple, American Express, Starbucks, Gap, Microsoft and Hallmark to come together as partners, producing RED products for which 50% of profits are donated towards the distribution of antiretroviral medicine in Africa. Target has recently launched the Do 5% Good campaign donating five percent of its revenues (over $3 million per week) back to the communities in which it does business. eBay’s World of Good supports socially responsible shopping by enabling individuals from around the world to sell their ethical products globally – a growing $200 billion industry.

Although these activities are generally considered positive, there are critics who claim the monies raised are nominal relative to the cost of advertising these initiatives – potentially duping consumers about their level of contribution. While those debates will continue in 2009, expect more brands to unite in efforts to raise awareness for social causes, giving consumers the opportunity to exercise their influence on the planet at the cash register.

A good example is that of Nike + iPod developing Nike+. Both brands realized the commonalities between members of their target groups, an on-the-go audience interested in enjoying their music while they exercise. Nike knew that their customers would benefit from integration with the iPod product and iPod was interested in the loyal customer base of the Nike brand. Both brands possess a similar attitude that complemented each other. The challenge was to create a new product that offered a unique set of benefits not offered by the two brands individually. Nike reported a profit rise of 8.1% the quarter Nike+ launched. But success, even for strong brands, isn’t always guaranteed. Apple’s first foray into the mobile phone market – a disappointing integration of iTunes into the Motorola ROKR – demonstrates that being willing isn’t enough. Similar partnerships include digital movie services between Xbox and Netflix, and the ultra chic mobile phone developed by LG and Prada. Strong partnerships can translate into strong sales. Ford and Microsoft’s development of its voice technology, SYNC, saw huge increases in consumer demand and will be installed in over 1 million cars in 2009.

Undoubtedly, more partnerships will be developed in 2009, with leading brands looking to strengthen their market dominance and maintain relevance in what will be a more competitive economic environment.