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Effects of the 2007 – 2009 Recession on Strategic Marketing Management Practices - Essay Example
Author : kozeyprice
Pages 11 (2761 words)
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…
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.
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. ...