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Abstract

A globalised economy provides daunting challenges to companies and their brands to stay ahead of the competition and earn revenues. Years of work and investment go into building brands. When the economy is in downturn and demand slackens, managers tend to lose confidence. Out of fear of losing the first initiative, the managers tend to cut prices of their brands to please customers. With the prolonged economic downturn, the global consumer goods company, Unilever and others like P&G and Reckitt were faced with pressures to slash prices of their premium brands as customers moved to cheaper alternatives. But, analysts warned the brand owners to be wary of the ''ghost of Marlboro Friday'', a reference to the incident in marketing world, when Philip Morris slashed the price of its premium Marlboro cigarettes to fight back against generic rivals, which back fired questioning the premium value of the iconic brand.
Location:
Industry:
Other setting(s):
1993-2008

About

Abstract

A globalised economy provides daunting challenges to companies and their brands to stay ahead of the competition and earn revenues. Years of work and investment go into building brands. When the economy is in downturn and demand slackens, managers tend to lose confidence. Out of fear of losing the first initiative, the managers tend to cut prices of their brands to please customers. With the prolonged economic downturn, the global consumer goods company, Unilever and others like P&G and Reckitt were faced with pressures to slash prices of their premium brands as customers moved to cheaper alternatives. But, analysts warned the brand owners to be wary of the ''ghost of Marlboro Friday'', a reference to the incident in marketing world, when Philip Morris slashed the price of its premium Marlboro cigarettes to fight back against generic rivals, which back fired questioning the premium value of the iconic brand.

Settings

Location:
Industry:
Other setting(s):
1993-2008

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