Optimising Communication Budget in Crisis Time

Global economic recession has forced a number of companies to drop communication budgets from their business plans, but many managed to find ways to keep such items alive. They still promote their brand names effectively, thanks to careful optimisation of communication budgets.

 

Economic crisis has sent the world into an extremely difficult period when all economies recede in different degrees. No exception, Vietnam is also inflicted by the worldwide crisis. Most Vietnamese enterprises, regardless of scope, have been impacted. As a result, a series of companies have gone bankrupt, scaled down production or reduced business investment. Expenses are cut to a minimum, including communication budgets.

 

With the policy of spending as little as possible in tough times, most companies have cut costs to a bare minimum. One of the first usually to be trimmed out is the communication budget. However, many companies still appreciate the importance and value of communication activities, although their operations are also affected. For them, the public knowledge of their brand names is the success and value that communication brings back.

 

While many companies accept being less known by the public because of less spending on media planning, others still find ways to make broaden their name recognition. They find feasible plans to maintain and promote communication activities in cost-effective ways. This is an opportunity for small agencies to grasp and develop, if they can bring success to branding activities of companies.

 

While the economic crisis is whacking the operations of all companies in all countries, the role of small agencies will be confirmed because they bring actual benefits to companies. With a wide range of communication services suitable to customers’ requirements, and relatively good service quality not inferior to big media names, small media companies will become the choice of enterprises, including large corporations. This choice helps ensure the expected outcome of communication plans.

 

“Most owners of small and medium media companies are professionals who have extensive experience in this field or used to work for foreign media companies. They have accumulated rich experience in management and media campaigns. Thus, they are ready to provide very good consultancy services, carry out projects with very good results, and respond very quickly to new developments,” said Ms Thuy Khanh, marketing director of an international school in Ho Chi Minh City.

 

“However, when working with small agencies, the most important things are cost, flexibility, quick completion and readiness for a wide range of services. Costs will be very much optimised in comparison with big media companies. Their other advantages are fast processing, deep relationships with the press, flexibility and ability to provide diverse services because small companies usually join together to supply more options for customers,” said Mr Vu Lam Chi Duc, director of a real estate project.

 

Economists forecast that Vietnamese businesses will receive more favourable opportunities with the rapid post-crisis economic recovery. Both challenge and opportunities are waiting Vietnamese enterprises ahead. It is certain that business operations will be resumed and communication activities will be brought to a new level. But, in the time of crisis, many companies are still stepping up communication activities to popularise and substantiate their brand names in the tough time. This makes them more confident to catch new opportunities.

 

Ms Hoang Truc Lam, Customer Service Director of Viet Dragon Communcations, said her company was set up two years ago, in the time of economic crisis, but it has developed strongly over the past two years and served many domestic and international customers like Pomina Steel, Cathay Pacific Airways, Dragon Air, Zip-it, Anh Rang Eyeglasses Joint Stock Company (AR Group), AECOM Technology Corporation (USA), the Institute of Chartered Accountants in England and Wales (ICAEW), APU International School, Nilai University College, FUTALAND and COTECLAND.

 

“For small newly established companies like us, important advantages are prestige, flexibility, cost optimisation, and added value. We are ready to offer affordable prices and free support services for customers in order to help them achieve their objectives,” said Ms Lam.

 

However, big international brands often choose international partners for communication services or work with large or richly experienced companies because they need a similarity in brand levels. Small media companies can only provide communication “strategies” but they do not offer different approaches - what their customers need. Therefore, small media companies are trying to improve themselves and coordinate with other peers to provide more competitive communication and marketing products and services for customers in Vietnam, a potential but challenging market.