Here are some companies who decided to be more aggressive during an economic downturn, thus taking advantage of advertising cuts by competitors.
Procter and Gamble
A company noted for consistent spending during periods of recession (including the Great Depression), Procter and Gamble heavily promoted some of its brands including Crisco, Camay and Ivory soap. The result: these went on to become some of P&G's best known brands.*
Intel
During the 1990-91 recession, Intel Corporation invested to improve their competitive position by launching its Intel Inside brand-building program, aggressively promoting the brand when there was little advertising competition.
"The belief at the company is that you don't save your way through a recession," notes a senior Intel executive.*
Nike
During the early 1990s, Nike tripled its marketing spending, resulting in profits nine times higher out of a recession than going in. They focused on promoting awareness and relevance and provided a set of aspirations for all those seeking athletic freedom and performance. This had the effect of destroying Reebok's competitive threat and building the platform for Nike's global dominance.**
Revlon
Revlon gained market share during the recession in the 1970s by maintaining intensive marketing spending while competitors pulled back.**
Stanley
In the heart of the 1974 recession, Stanley Works launched a huge advertising campaign aimed at driving home the Stanley name to the consumer market of hand tools. The campaign worked. In addition to the large sales and profit increase in 1974, the hand tool business continued to grow at an 8% annual rate - twice that of its competitors.***
Others
Other companies that have taken advantage of advertising during a recession to establish strong market positions while developing brand equity include such diverse company names as BristolMyers, Campbell Soup, Coca-Cola, Gillette, Nabisco, Pillsbury, Procter and Gamble, R.J. Reynolds, Rubbermaid, Levi Strauss, Stroh Brewery, United Airlines and Welsh Foods, among others.***
* Gary L. Lilien, Arvind Rangaswamy, and Raji Srinivasan. "Turning adversity into advantage: Does proactive marketing during a recession pay off?" International Journal of Research in Marketing, 2005.
** "Managing Value in a Downturn." Branding in a Recession. Interbrand, March 2003.
*** "Advertising during a recession." Direct Marketing. September 9, 1991
