Back to basics (recession trends)

Article Type: Abstracts From: Strategic Direction, Volume 25, Issue 10

Fernandez J.Marketing Week (UK), 26 February 2009, Start page: 18, No. of pages: 3

Purpose – Shows how trading down can boost the bottom line. Design/methodology/approach – Outlines trading-down techniques in the food and drink industry, financial services, telecoms, retail, leisure and travel,beauty and fashion, motors and media and technology. Findings – In the recession, companies are having to adopt new initiatives to woo reluctant customers, launching products or services focusing on low-value variants of their core portfolios to keep people spending without losing the branding element that customers know and love. Reports that Tesco was one of the first to adopt this strategy but wonders whether this makes sense after Tesco has done so much to move away from its original downmarket philosophy. Discovers that the decline in disposable incomes has also hit the leisure sector hard while, in the car market, General Motors is moving away from adding premium elements to standard models in favor of models with fewer frills. Reveals that the restaurant sector is where some of the biggest consumer migration is being seen. Originality/value – Predicts that the companies that will triumph in 2009 will be those that are able to cut prices, specifications or services without appearing to lose their essential values.Article type: ViewpointISSN: 0141-9285Reference: 38AK823

Keywords: Marketing strategy, Product positioning,Recession, United Kingdom