For this month's March issue of Eurofruit Magazine, we've put together a whole raft of ideas on how fresh produce companies can beat the recession, and one of the areas which seems to be stirring the most debate here at Market Towers is the whole question of advertising. Of course, as a publisher which depends on advertising revenue for a certain proportion of its overall income, we would say that companies should definitely not cut their promotional budgets. But how about some impartial advice on this one? Look at this study carried out by McGraw-Hill Research:

McGraw Hill research analyzed 600 companies covering 16 different SIC industries from 1980 through 1985. The results showed that business-to-business firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising. By 1985, sales of companies that were aggressive recession advertisers had risen 256 per cent over those that didn’t keep up their advertising.

Clearly some companies must cut their advertising budget in order to survive, but other similar studies state that those with the commercial capacity to spend on advertising ought to think carefully before abandoning it altogether. According to the Strategic Planning Institute based in Massachusetts, US, a 'recessionary market can provide an opportunity for businesses to build a greater share of the market through aggressive advertising. Businesses that reduce media expenditures suffer loss of market share.'

Fruitnet.com recognises the fact that companies must do all they can to trim unnecessary costs, but when it comes to trade advertising, we know there is real value to be found, especially in the pages of Eurofruit Magazine. For our part, we will continue to invest time and resources in helping this trade to grow.

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