What Coca-Cola and L’Oréal teach MBA students about brand resilience, pricing power and marketing strategy in volatile markets.
If there’s one lesson 2025’s business headlines keep repeating, it’s this: great brands don’t just survive downturns — they expand through them.
While tech layoffs and inflation dominate the news, two classic players — Coca-Cola and L’Oréal — have quietly delivered double-digit growth. What are they doing differently, and what can MBA students and marketers learn from them?
1️⃣ Coca-Cola: Pricing Power Built on Emotional Equity
Coca-Cola’s Q3 2025 results surprised Wall Street: net revenue +8 %, driven mostly by price mix, not volume.
That’s the essence of brand resilience: customers still buy even when prices climb.
- Lesson for MBA students: Emotional connection > functional benefit. The brand sells optimism, not just sugar water.
- Marketing insight: In inflationary times, strong brands become “permission pricing” brands — consumers accept premium tags for familiar comfort.
2️⃣ L’Oréal: Innovation as a Defensive Strategy
L’Oréal grew +12 % in the same quarter, with AI-powered skin analysis apps and personalized beauty e-commerce driving new revenues.
- Lesson for marketers: Use technology not as a gimmick but as a channel for deeper customer connection.
- Branding takeaway: Innovation can be a form of insurance — consumers perceive modern, adaptive brands as “safer” choices in uncertain markets.
3️⃣ The MBA Angle: Resilience = Pricing Power + Relevance
In strategy terms, both companies practice dynamic capabilities — adapting resources faster than market change.
For MBA learners, this ties to David Teece’s framework: Sense → Seize → Transform.
- Sense: Track consumer emotion and social signals.
- Seize: Adjust product mix and messaging in real time.
- Transform: Institutionalize learning so teams stay ahead of disruption.
4️⃣ Brand Equity in the Age of AI Marketing
Both firms now use AI to personalize ads and predict consumer trends. Yet they never abandon human storytelling.
MBA takeaway: Technology can scale reach, but authentic brand narratives build trust. Balance data with emotion.
Key Takeaways
- Resilient brands turn economic volatility into pricing power.
- AI and innovation are defensive tools when used to enhance relevance.
- For MBA students: connect finance metrics (EBIT, ROI) with brand value drivers (awareness, loyalty).
FAQ
Q: Why study legacy brands in an AI era?
Because longevity shows what short-term startups often ignore — customer emotion and trust outlast product cycles.
Q: How do these lessons apply to startups?
Startups can borrow resilience through consistent narratives and transparent pricing models.
Q: Where does AI fit in branding?
AI informs decisions; branding translates them into human connection. Use AI for insight, not identity.
