Marketing mix strategy adaptation: a retail organisation's response to the global economic downturn

Abstract

The global economic downturn of 2008 spread around the world and few business sectors remained unaffected. While organisations in some sectors were forced to close down or lay off employees, organisations in the retail sector mainly had to adapt to consumer’s preferences, which change in times of economic downturn. The purpose of this research was therefore to examine how one of the most prominent retailers in South Africa adapted their marketing mix strategies to changing consumer buying behaviour during the economic downturn.The research applied a qualitative approach and a case study methodology as its research design. An interview guide was designed for the in-depth face-to-face interviews. Additional data was collected from annual reports, various articles and the retailer’s websites.Decreased spending by consumers was one of the main consequences of the economic downturn. Throughout the economic downturn the retailer found it increasingly difficult to attract consumers to its stores, which prompted changes to retain and attract consumers. Therefore the main challenge for the retailer was to alter consumers’ perception that it was an expensive store to a value for money store, without compromising its quality proposition. The study found that the retailer did indeed adapt its marketing mix strategy extensively in response to the global economic downturn. The retailer recognised a change in their consumers’ buying behaviour and made responsive changes to their marketing strategies.This research can be useful to academics and practitioners highlighting the importance of adapting the marketing strategy to the changing environment to consolidate or even improve a retailer’s position in the market. The research can also be used by organisations in a similar situation facing an economic downturn. Even though these findings cannot be statistically generalised to a population, the findings can be used in similar situations or for theoretical generalisations, depending on homogeneity.