Unveiling of the Businessworld Marketing Whitebook 2009-2010

Preceding the Whitebook launch was an engaging panel discussion — “Building Brands in a Slowdown”— stoked by moderator Suhel Seth of Counselage India. His provocative self not only got the best of the panelists, but also gave the audience a chance to have a hearty laugh — much needed in these times of slowdown. If you missed the action, read further.

DD Purkayastha, CEO & Managing Director, ABP Group delivering the welcome note

(L to R) : Lloyd Mathias of Tata Teleservices; moderator for the evening Suhel Seth

(L to R) : Meenakshi Madhvani of Spatial Access; Sanjay Purohit of Cadbury India; Saugata Gupta of Marico

Often, when business conditions are bad, companies go on a cost-cutting spree. Advertising budget is among the first to get an axe. Is it justified? Partly yes, if one were to determine advertising budgets just as a percentage of sales; falling sales should mean lesser advertising and vice versa. But then, strategic marketing decisions need to be taken over business cycles, and not in parts of boom and best, felt the experts. The eye should be on the long haul.

In good times, it is common to see brand launches as well as advertising in full throttle. After all, improving sales (and profits) in a booming economy provides the natural budgets to justify them. But then, when the tide turns — like it has now — everything gets questioned. The experts feel the time has come now to do a rethink. “It is not as much about cost-cutting as it is about reprioritising and maintaining core brands,” said Maitri Kumar, Head-Marketing, HSBC India.

“Focus on top powerful brands that would transcend slowdown,” said Saugata Gupta, CEO, Consumer Products Business, Marico. The nice-to-haves should go. Also, measures need to be taken to create more value out of your advertising (by focusing on Return on investment (ROI).

The panel agreed that companies should not lose sight of the bigger picture. After all, India has the demographic advantage of 1.1 billion people. And even after the slowdown, the economy is still expected to clock 7 per cent plus growth rate this fiscal year. “It is still a 7x opportunity, if you go by the growth rates elsewhere in the world,” said Shailesh Rao, managing director, Google India. He added that it is a critical time to make strategic investments in brands, and prepare for the next upturn, whenever it happens.

Another advice to marketers: change the wallpapers on your PCs to quote “a bird in hand is worth two in the bush”. The think-tanks believed the time has come to focus on existing customers. HSBC’s Kumar said that during troubled times, financial institutions like them looked to solidify their relationships with their customers. “In times like these, what would matter is brand health. And for this, spends in the right communication — whether through traditional, online or mobile — will be our priority,” she said.