Marketing of Semi-Durable Premium Brands in a Recession in South Africa
Desai, Mayan K
A recession presents very difficult economic circumstances for a business in which to operate. At the same time the high value brands within an organisation are under severe pressure for their prices to be dropped in order to meet consumer demands for more at a lesser price. The research set out how to determine the means by which semi-durable premium brands are marketed in a recession in South Africa. The data were collected via 15 interviews that were captured electronically and transcribed and processed. The key findings were as follows: Adapting the marketing strategy to capitalise on the business conditions at the time of a recession can deliver sustainable long term benefits to an organisation. Premium brands are important to organisations as they have the potential to continue to deliver profitability to the business at a time when other brands may be losing value. Changes to consumer behaviour as a result of a recession are inevitable and in most cases these changes are lasting beyond the effects of the recession. National brands need to understand and be aware of the risk that private label brands pose in a recession and be vigilant in protecting their share, particularly in recessionary times. The key message is that an organisation’s premium brands must be effectively managed as enormous benefits can be reaped, even in a recession. This needs to be complemented by a considered, well thought out marketing strategy that is coherent with the overall company strategy.
Marketing , Premium brands