VietNamNet Bridge – Only spending money on very necessary and highly
effective campaigns and using online ads instead of other traditional methods —
businesses have been trying every possible way to save every dong in the current
difficult period.
The Vietnam Tea Corporation was still present at the Vietnam Expo 2013, like it
was in the previous years. However, instead of having 3 stalls at the trade
fair, it was satisfied with displaying goods at just one booth.
“We have to practice thrift and cut down expenses as much as possible, when the
water, electricity and petrol prices all have increased, but we cannot raise the
sale prices,” an executive of the corporation said.
The sales manager of the Thong Nhat Bicycle Company said in the past, the
company made its presence at all trade fairs, but it now only participates in
the big ones in a plan to cut down costs.
Thong Nhat has been making every effort to boost sales to clear the inventories.
Previously, only the customers, who bought more than 50 products, could enjoy
the free transport service. Nowadays, they just need to buy 30 products to be
able to enjoy this.
Pham Le Tan Phong, Communication Director of Tan Hiep Phat Group, the owner of
some well-known soft drink brands such as Number 1, Dr. Thanh, has also
confirmed that the budget for ad campaigns has been cut down.
“In general, in the fourth quarter of years, we have to plan the ad budgets for
the whole next years, a method that helps to better control the spending,” Phong
said, adding that the group will not pay for un-programmed ad campaigns, unless
they are very necessary.
“If the board of directors decides that we really need to join some arising
campaigns, we would spend the money budgeted for other activities. However, the
sum of money to be spent will be limited,” he explained.
Nguyen Thanh Ha, Deputy Chair of the Vietnam Advertisement Association, has
confirmed that the businesses’ total spending on ad campaigns decreased
dramatically in 2012.
Ha went on to say that businesses now tend to run online ad campaigns in order
to save costs. The tendency has led to the setback of the outdoors ads.
“A lot of billboards have been left unoccupied. Meanwhile, it was very difficult
to have ad pieces posted on billboards some years ago,” she said.
It’s very difficult to find clients nowadays, even though the ad fees have
decreased by 30 percent. The annual fee for a billboard in the inner city is now
$16,000, while it was $20,000 some years ago.
The director of an ad firm specializing in food and drink ads in HCM City, said
he does not refuse any orders nowadays and he would accept any payment method
the clients suggest, just in order to get enough jobs to feed himself and the
staff.
The firm, which provided marketing and PR services to a motorbike manufacturer,
has received the payment – 2 motorbikes made by the company.
The director, of course, preferred money to the motorbikes, but had to accept
the payment, because the motorbike manufacturer is a big client. Finally, he has
to bargain the motorbikes away to get money back.
In another case, a real estate developer paid his partner for an ad campaign
with an apartment. Since the real estate market is frozen, apartments have been
left unsalable, paying for services with apartments proves to be the best way
the developer can think of.
VNE