Alyque’s tips to beat recession

However, the advertising industry was caught up in the recession. The industry, which was growing at the rate of 40 per cent in the last few years, now registered only a 20 per cent growth. The only way we can get out of recession is by our own efforts, he said. Padamsee has many strategies to combat the recession. “If your product has brand equity, look for an event which will change your image,” he suggested. He cited the example of Reliance Industries and MRF Tyres which effectively used the World Cup cricket to enhance their image and become household names on a relatively shoestring budget. In contrast, a diamond merchant offered to sponsor the Michael Jackson concert in Mumbai for a stupendous sum of Rs 20 crore without gaining anything in the bargain.

“Don’t spread your budget over the multimedia. Instead, a single effective medium can deliver a knock-out punch,” he said. Padamsee used the Nirma versus Surf ad campaign to drive home his point. Nirma, a small player, suddenly overtook Surf by spending five times Surf’s ad budget.

Nirma’s production shot up from 10,000 tons to 50,000 tons in a short period.

Slashing the brand price by 50 per cent and destroying competition was the third strategy. Padamsee recollected how Marlboro, the famed US brand of cigarettes, found itself in a tight spot when some unknown players cut down their prices by 30 per cent. Marlboro cut prices by 50 per cent and sure enough the small players disappeared from the scene, he said.

Padamsee suggested concentrating on attractive incentives o dealers and maximising sales efforts to get the best. “Make your product extra productive at least for a short period. Send out a message that your product has better value,” he said. He recollected how Toshiba Anand, manufacturers of cells, used a simple technique of placing a paper seal that said `factory fresh.’ “Look at markets outside your territory where competition has not bothered to go,” he said.