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Effects of the 2007 2009 Recession on Strategic Marketing Management Practices - Essay Example

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Effects of the 2007 2009 Recession on Strategic Marketing Management Practices

The impact of the economic downturn has redrawn the competitive structure of markets and created new and often unfamiliar situations for suppliers. One of the contributing factors for this “new normal” has been growing international protectionism and reduced access to finances that has circumscribed growth options in recovery (Muller, 2010, 67). In the wake of this challenging market situation, many businesses have managed to overcome market-place challenges and maximize opportunities by conducting strategic consumer and competitor analysis, and shifting their strategies accordingly. With this regard, this generally involves changing the target market and/or adapting the business’ marketing mix. However, the response that the recession elicited from marketing managers depended on their perceptive of its meaning and the impact it had on their businesses (Muller, 2010, 244). The Case of Revlon, Inc One organization that had to alter its strategic marketing management practices to overcome the marketing challenges of the 2007 – 2009 economic recession is Revlon, Inc. Revlon is an American multinational corporation that specializes in the provision of beauty products. Its line of business involves cosmetics, skincare, personal care and fragrance products. The company’s portfolio brands include: Revlon® color cosmetics, Revlon® beauty tools, Revlon Colorsilk® hair color, Almay® color cosmetics, Charlie® fragrances, Ultima II® skin care, Mitchum® anti-perspirant deodorants, and Gatineau® skin care. The US has a relatively large market for color cosmetics, accounting for more than 18% of the world’s market for color cosmetics. Revlon has a massive market share considering that it...
The consumption per user growth rate of the industry dropped to 0.7% in 2008 from 1.4% in 2007, and continued to drop steadily throughout half of the following year. In addition, the average per unit price declined significantly in the course of the recession period as consumers switched to low-priced brands due to reduced disposable income (Glamface, 2013, n.p).
The marketing challenges that Revlon faced during and after the recent recession were not only caused by the reduced consumer spending, but also due to strong competition from the major players in the industry. According to Glamface (2013), Revlon is only a middle-level player in the cosmetics industry and is not able to invest as large amounts in research and development as the larger players such as L’oreal (LRLCY) and Proctor & Gamble. In addition, competition from smaller competitors than Revlon such as Avon and Estee Lauder Companies increased.
Conclusion
Revlon’s performance in the beauty industry has improved significantly since the initiation of its adapted strategic marketing management practices to cope with the effects of the 2007 – 2009 financial and economic crises. Revenue and Market share have increased significantly, indicating that adjustment of marketing practices are crucial for businesses to overcome the challenges of recession. ...Show more

Summary

The dynamic nature of all types of markets in the modern world has raised the need for organizations to acknowledge the importance of strategic marketing management. A marketing strategy considered cost-effective today may not be relevant tomorrow…
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Effects of the 2007 2009 Recession on Strategic Marketing Management Practices essay example
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