Marketing the upscale during a downturn

November 13, 2008 | Internet Marketing

As 2009 shapes up to be the most challenging year in more than a generation for luxury items, marketers' plans for expanding rapidly into the new money hubs of Russia or the United Arab Emirates are suddenly "out," according to a panel at the recent Wharton Marketing Conference.

The issue of who will remain wealthy over the next two years, and how they might spend their disposable cash, was very much on the minds of the panelists, including top marketers with experience at some of the most storied names in luxury items and apparel—from Gucci and Prada to Tom Ford and L’Oréal.

The panelists agreed that in a recession in which even upscale consumers may find themselves strapped for disposable cash, it is a bad strategy to chase customers too far down the economic ladder. “We don’t want to see huge price cuts that will create a lower-priced brand,” said Brad Farrell, skincare brand manager for L’Oréal Paris. “That’s because you don’t want to tarnish your brand. When this is all said and done, you still have your brand reputation to uphold.”

Get the full story at Knowledge@Wharton

Related Articles

The not surprising failure of corporate blogging
08 Jan, 2009 | Internet Marketing

Forget predictions, get actionable tactics
08 Jan, 2009 | Internet Marketing

Major drop in Japanese outbound travel, worst yet to come
07 Jan, 2009 | Online Travel

IATA projects 2009 airline losses
07 Jan, 2009 | Online Travel

Business travelers may catch a price break in 2009
07 Jan, 2009 | Online Travel

UK: How to travel with a tumbling pound in 2009
07 Jan, 2009 | Online Travel

Top 10 reputation tracking tools worth paying for
07 Jan, 2009 | Internet Marketing

Travel predictions for 2009
06 Jan, 2009 | Online Travel

Travelers will be getting lots of deals in 2009
06 Jan, 2009 | Online Travel

Top 10 free tools for monitoring your hotel’s reputation
06 Jan, 2009 | Internet Marketing

Most Popular Articles

Seven digital marketing strategies for surviving the downturn
11 Dec, 2008 | Internet Marketing

Online hotel marketing tips for a recession
18 Dec, 2008 | Internet Marketing

HEDNA on how to thrive in 2009
16 Dec, 2008 | Hospitality Industry

The secrets of marketing in a Web 2.0 world
16 Dec, 2008 | Internet Marketing

Marriott CFO warns of “tough 2009”
11 Dec, 2008 | Hospitality Industry

Hotelier’s 2009 top ten internet marketing resolutions
06 Jan, 2009 | Hospitality Industry

US hotel industry preparing for troubled times
16 Dec, 2008 | Hospitality Industry

What travelers might expect for 2009
11 Dec, 2008 | Online Travel

Travel predictions for 2009
06 Jan, 2009 | Online Travel

Hotels try to adapt to hard times
18 Dec, 2008 | Hospitality Industry

Economic Downturn

Major drop in Japanese outbound travel, worst yet to come
07 Jan, 2009 | Online Travel

IATA projects 2009 airline losses
07 Jan, 2009 | Online Travel

Business travelers may catch a price break in 2009
07 Jan, 2009 | Online Travel

UK: How to travel with a tumbling pound in 2009
07 Jan, 2009 | Online Travel

Travel predictions for 2009
06 Jan, 2009 | Online Travel

Travelers will be getting lots of deals in 2009
06 Jan, 2009 | Online Travel

Online hotel marketing tips for a recession
18 Dec, 2008 | Internet Marketing

Despite economy, holiday travel still strong
18 Dec, 2008 | Online Travel

Hotels try to adapt to hard times
18 Dec, 2008 | Hospitality Industry

Maximizing hotel revenue in a downturn
18 Dec, 2008 | Hospitality Industry

HEDNA on how to thrive in 2009
16 Dec, 2008 | Hospitality Industry

US hotel industry preparing for troubled times
16 Dec, 2008 | Hospitality Industry

Seven digital marketing strategies for surviving the downturn
11 Dec, 2008 | Internet Marketing

Report: The mood of the European meetings industry market
11 Dec, 2008 | Hospitality Industry

Travel pinched by global financial crisis
11 Dec, 2008 | Online Travel

E-Mail Newsletter


Visit our sponsors: