INTRODUCTION

"If we had no winter, the spring would not be so pleasant;

if we did not sometimes taste of adversity, prosperity
would not be so welcome.“
-Anne Dudley Bradstreet
 
INTRODUCTION

What is Recession?
Effects of recession on the Indian Economy?
ECONOMIC TURMOIL – MARKETING
CHALLENGES

 It is a sound advice to spend more on marketing

during a recession. But many marketers will find
this advice impractical. For those that don’t have
extra money available, what tactics can be used to
weather the storm of tough economic times?

Focus on your competitors

1. Analyze company and brand health
2. Anticipate their actions
ECONOMIC TURMOIL – MARKETING
CHALLENGES

Focus on your Brand

1. Concentrate on the core brands and
products
2. Support your core proposition and
emphasize its value
3. Don’t price or promote unless you can cut
costs or can live with lower margins
4. Don’t cut quality
5. Think internal branding and morale
ECONOMIC TURMOIL – MARKETING
CHALLENGES

Focus on your Customers

1. Keep in touch
2. Review your consumer segmentation

Focus on your Communication

1. Review your Budget allocations
2. Make your creative work Harder.
ECONOMIC TURMOIL – HR
CHALLENGES

8 Identified critical challenges which fall into 3

strategic categories outlined below:
Category 1: “Developing and Retaining the Best
Employees”

1. Managing Talent
2. Improving Leadership Development
3. Managing Work/Life Balance
ECONOMIC TURMOIL – HR
CHALLENGES

Category 2: “Anticipating Change”

4. Managing Demographics, Especially an Aging Workforce

5. Managing Change and Cultural Transformation
6. Managing Globalization
ECONOMIC TURMOIL – HR
CHALLENGES

Category 3: Enabling the Organization

7. Becoming a Learning Organization

8. Transforming HR into a Strategic Partner
ECONOMIC TURMOIL –FINANCIAL CHALLENGES

Did we ever hear about Recession earlier?

Great depression of the 1930’s
Began as a financial crisis in east Asia in
july,1997.
Now a fully-blown global economic crisis
ECONOMIC TURMOIL –FINANCIAL CHALLENGES

Factors effecting India

Slump in real estate demand
Job cuts
Problems in getting loans
Redemption crisis in mutual funds
Exports and services
ECONOMIC TURMOIL –FINANCIAL CHALLENGES

Rescue Operations (RBI Actions)

Reduced the CRR rate several times
Reduced the statutory liquidity ratio
Introduced other changes in the
quantum of External commercial
borrowings and foreign institutional
investments into the capital markets
through participatory notes
Cut repo and CRR.
ECONOMIC TURMOIL –FINANCIAL CHALLENGES

Could India benefit from Global melt down??

India has been demanding its rightful place
May be better positioned for a quick recovery
and for future growth than many of the other
developing economies
Indian financial sector is relatively insulated
Domestic demand could remain a strong
driver of growth; farm income and rural
employment are both up.
ECONOMIC TURMOIL –FINANCIAL CHALLENGES

Objectives for India

Ensuring that credit begins to flow
again as quickly as possible
The world bank and IMF invest heavily
in large infrastructure projects in
developing countries.
CONCLUSION

Though the responsibility lies heavily on the shoulders of HR

professionals across the industries and the globe, coping with this
recession-demon, it becomes the collective responsibility of
organizations for smoother transition into a normal business cycle. As
it’s rightly said-

“ Failure is the only opportunity to begin again, this time more wisely”