Press release from Business Wire India
Source: brand-comm
Friday, December 12, 2008 05:30 PM IST (12:00 PM GMT)
Editors: General: Consumer interest; Business: Accounting & management consultancy services, Advertising, PR & marketing, Business services, Information technology, Media & entertainment
Release no: 18729
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India Inc Concerned About Business Climate but Feel Opportunities Exist for Businesses to Prosper: Brand-comm All-India Survey Finds
Education, News & Media, Healthcare Expected to do Well; Plan to Decrease Traditional Advertising, Increase Direct Marketing and On-line Marketing/Advertising
Chennai, Tamil Nadu, India, Friday, December 12, 2008 -- (Business Wire India) -- brand-comm, an Integrated Brand Communications firm, today announced the results of its all-India 'India Business Climate Perception Study' which unearthed sentiments about expectations for 2009 amongst Corporate India.
The state of the world economy is top of mind across management levels with a staggering 90% indicating that they are indeed concerned about the current global financial and economic crisis. 70% of the respondents indicated that the happenings across the world have already impacted India to some extent. Another 28% indicated that it already has impacted the Indian economy to a great extent.
-- About the Study
Sample Size: 450
Location: New Delhi, Hyderabad, Mumbai, Bangalore and Chennai
Duration: Two Weeks (6 to 20 November)
Survey Tool: Questionnaire, Online
Sample Profile:
Executive- 117
Middle Management- 157
Senior Management- 116
Mr. Ramanujam Sridhar, CEO, brand-comm, said, "The Indian and World economy are wedded together. Some industries seem to be more vulnerable than others. However, we also found in our study that India Inc have already started preparing now to ensure that they maintain their momentum even in an unpredictable world business climate."
There was great optimism shown by respondents as more than 60% felt that there were indeed opportunities for India Inc to capitalize on but management should be more prudent, innovative and fast to take advantage.
--Industries Expected to be in trouble:
Airline/Aviation
Real Estate
Travel / Holiday
Automobiles
IT Enabled Services
India Inc felt that the Industries which will be well off in 2009 include: Education (95% of respondents), News & Media (89%), Healthcare (88%), FMCG (85%), Biotechnology (76%), Advertising and PR (70%) and Organised Retail (64%).
The companies that India Inc feel will have a difficult time include: Airline/Aviation (75%), Real Estate (72%), Travel / Holiday (65%), Automobiles (58%) and IT Enabled Services (56%).
"The coming year will see the "back to school" trend in the working professionals. We already saw 3 lakhs applicants sit for the Common Admissions Test (CAT). We expect more people to go 'back to school' to increase their employability factor. The education sector will do extremely well, especially graduate programmes and distance education," remarked Ms. Vidhya Srinivasan, COO, brand-comm.
India Inc to innovate, cut costs, share resources and increase in-house training in 2009
Two Third of the respondents (66%) indicated that their current company is poised to handle the challenges ahead. This is an indication of how India Inc has already started putting certain strategies in place.
The keyword for the businesses in 2009 will be - Innovation (71%); not only in products and service offerings but also in terms of technology and marketing efforts. Other popular strategies that will be employed include sharing resources / using existing resources more efficiently (87%), cutting costs across functions (85%) and slowing down recruitment (82%).
62% of the respondents indicated that businesses will increase in-house training; consequently reducing their expenditure on external training. Interesting enough, a resounding 61% indicated that their companies will not take risks to overcome challenges.
"In many ways, most of India Inc is traditional and methodical, we would expect businesses to innovate but stay risk averse," Mr. Sridhar commented.
Marketing strategy to change; increase in on-line medium and direct marketing
According to the survey, traditional advertising (TV/Print campaigns) will give way to other marketing activities. 66% of the respondents do not expect a rise in corporate advertising budgets in 2009. When asked, "Which marketing activities will increase, decrease or remain the same in 2009 compared to 2008?" - nearly 30% of the respondents felt that their company will decrease expenditure on traditional advertising.
Most respondents indicated that marketing outlays will be increased in Direct Marketing (42%) Public Relations (42%), On-line advertising (38%) and On-line Marketing (SEO, Social Media - 39%)
Ms. Vidhya Srinivasan remarked, "Companies will follow the 80:20 principles. They will focus on targeting the 20% of their target audience that accounts for 80% of their revenues; one way is through direct marketing and on-line marketing."
Interesting differences amongst Top Management and Executive Levels
The study revealed some interesting differences in opinion amongst the senior management and mid to junior management.
We found that Top Management was more optimistic in general compared to the other levels. In fact, there is a great deal of uncertainty of what is going to happen amongst the younger generation. Also, at the mid-management level, nearly 34% were unsure of the capabilities of their firm or firmly believed that their company was not poised to take on challenges.
To view the Questionnaire, please click on the link given below:
Questionnaire
Mr. Sridhar revealed, "Top management may be in control of the situation and have a plan of action, but that needs to be clearly articulated to all levels within the company. This is the key to ensuring that goals are reached."
We also found that Top Management felt that more industries were in trouble compared to the mid-management and executive level as seen in the below chart.
To view the chart, please click on the link given below:
Chart
The industries seen to be trouble by all three groups include: Airline/Aviation, Real Estate, Financial Services and Travel / Holiday.
Whereas Top Management feels that IT, IT Enabled, Automobile and Hotel/Hospitality sectors will face obstacles in 2009. Mid-management shares the same sentiments for the IT and IT enabled industries.
Survey Methodology
'India Business Climate Perception Study' by brand-comm was conducted amongst 450 respondents in November 2008 across the major cities in India i.e. New Delhi, Hyderabad, Mumbai, Bangalore and Chennai. The survey was administered to working professionals across management levels from all main industries.
About brand-comm
brand-comm is a leading communications consultancy company in India with offices in seven cities (Bangalore, Delhi, Mumbai, Pune, Chennai, Kolkata, Hyderabad) and presence through affiliates in all Indian States. They offer a comprehensive and, where possible, integrated range of services across brand consulting, advertising, and public relations. In addition, they offer Integrated Talent Communications (Internal Communications) which assists companies in communicating with internal clients / employees to meet their HR objectives of retention.
To view the Press Release with tables, please click on the link given below:
Press Release with Tables
For picture(s)/data to illustrate this release click below:
http://www.BusinessWireIndia.com/attachments/Questionnaire.doc
Questionnaire.doc
http://www.BusinessWireIndia.com/attachments/Chart.doc
Chart.doc
http://www.BusinessWireIndia.com/attachments/Brand-comm India Business Climate Perception Survey 2008 (2).doc
Brand-comm India Business Climate Perception Survey 2008 (2).doc
CONTACT DETAILS
Vishnu Kumar, brand-comm, +91 9884821669 / +91 (044) 28252450/51, vishnu@brand-comm.com
KEYWORDS
CONSUMER, CONSULTANCY SERVICES, MARKETING, BUSINESS SERVICES, IT, MEDIA
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