Doing business has become tough for Nepali corporate groups lately primarily due to the economic downturn in the country. In this context, marketing professionals are faced with several difficulties in their areas of work. Similarly, there are other challenges for them stemming from changes in the preferences of consumers and digitization.
Punam Singh is the Chief Marketing Officer at Chaudhary Group (CG). As a marketing professional who has 15 years of experience, she says businesses need to adapt and adjust to the situation and focus on brand building during challenging times. In a conversation with the HRM, Singh talked about the current scenario, CG’s focus on marketing, and changes brought by digitization, among other topics. Excerpts:
Q: How do you observe the current state of the marketing and advertising activities in Nepal? How is the market affected by the economic slowdown?
A: Economic slowdown certainly affects marketing and advertising as companies have to be very careful in spending and spending correctly is the key and budget constraints lead to fewer activities. Combating the constraints is something everyone is trying at the moment as the economic slowdown has affected the growth of every industry. Activities have gone down and more than that spending is very less so its impact is directly visible on brand movements.
Q: Which sectors have been impacted the most and which have been least affected? What problems surround advertisers at present?
A: Marketing expenses are directly correlated with the numbers in sales and the moment economic activities slow down, the numbers get affected. As brand and marketing professionals, it is very important for us to focus on brand building even in difficult times. However, realistically for businesses to sustain, we have to create a balance and adapt to tough times. We have to choose strategically to adjust to the situation.
The FMCG sector is relatively less affected compared to consumer durables. The automobile sector has faced major setbacks as spending capacity has gone down. Overall, no sector is left unscathed by the downturn. It is just the magnitude that varies but doing business at present is difficult in all sectors.
Q: As one of the biggest advertisers in the country, how is the Chaudhary Group (CG) facing the challenges? What is the current focus of CG in marketing?
A: CG is present in several sectors and we can feel variations and impacts much stronger. Tough times call for tough actions, automatically we too have to be very specific about our activities and way forward. The need of the moment is to cater to brand activities through prioritization and necessity.
Q: How do you see the prospects of market recovery in the coming days?
A: The Nepali market has always been unpredictable. When we least expect things all of a sudden situation starts showing up but we cannot deny that it is a global recession. We cannot say when it will exactly subside but can only have a positive mindset and move forward.
A: As a marketing professional, how do you think marketers need to take a different approach in these difficult times?
A: It is always value for money and less is more. Strategically aligning the needs of the moment and focusing on the gap areas is important. During good times, we are all out but to maintain the balance, and during difficult times, it is very important to be specific and spend where there is a need. Brand building and marketing is a constant process and is a long-term investment so we have to keep the lasting effect in mind.
Q: How have digitalization and social media changed the landscape of the marketing and advertising market in Nepal? What are the new trends in marketing and advertising?
A: Digitization has made evaluation much easier as there are analytical values and key performance indicators (KPIs) for every rupee we spend. The liberty to be able to target and focus on a specific age, gender, location, and several other metrics makes it an effective medium for marketing and at the same time, the scope of trial and error is present on the digital front making it more flexible for brand promotions. Having said that, we cannot deny the effective impact of traditional mediums too in a market like ours so the key in current times is integration. Those brands that learn to integrate digital and traditional platforms effectively can prosper better. The same applies to the media as well. Complete integration of Above-the-Line (ATL), Below-the-Line (BTL), and digital media is a must for brands to prosper in modern times.
Q: Influencer marketing has grown bigger with the growing use of social media platforms. How do you see the prospects and challenges in influencer marketing?
A: Influencer marketing is growing by the day and in a way helps the brand to be visible in targeted segments backing on the influencer’s reach and popularity. The biggest challenge in influencer marketing is first finding the right match for the right brand. It is not like TV commercials where brand ambassadors can just give testimonials for the said brand. In influencer marketing, the brand personality needs to resonate with the influencers’ outlook and personality. Also, in Nepal overlapping with influencers is very common even in competitive segments so unless the brand connects to influencers on a personal level, it cannot be a long-term exclusive campaign.
Q: What do you think the digitalization wave holds for the marketing and advertising sector›s future?
A: Innovation and adaptation is the key to business growth. The digital world is evolving very fast making a marketeer’s life easy and difficult both at the same time. If a company and an individual can adapt to everchanging digital upgrades and plan their marketing around them they have a chance of standing out however if they follow the tried and tested methods and don’t want to take risks and evolve then it can backfire the brand. Digitization has certainly helped to broaden the horizons of marketing and advertising with sharp and effective tools for desired outcomes.
Q: How are CG and its companies utilizing digital platforms to broaden their reach to customers?
A: Digital marketing is a necessity for every brand. In order to prosper and make a difference brands have to adapt to it. When we say digital marketing, it is not just social media platforms but the analytical aspect of it through Search Engine Optimization (SEO) and Google Display Network (GDN) are also essential. Different businesses have different necessities. For some brands, visibility can fulfill the requirement but for others, reach and engagement are important along with lead generation. We adapt as per the necessity of brands.
