Global and international brand organisations facing a sharp decline in revenue due to coronavirus global pandemic who need to implement cost saving programs across an entire organisation. Central brand marketing teams who are asked to create significant budget cuts to meet organisational cost reduction targets. Professionals who know the importance of maintaining marketing activities during and post-crisis period.
Indiscriminate marketing budget cuts cripple the company's marketing and brand building capability, negatively impacting its sales and market share growth potential. This in turn prolongs its recovery period. Economising across and within the global brand marketing operating model will achieve same if not greater costs reduction, but as a result of a higher productivity, leaving the marketing capability mostly intact.
By reconfiguring brand marketing organisation's structures and operations, introducing more productive and cost savvy ways of working, you get best of both worlds. Cost reduction targets can be achieved, while avoiding the crippling effect on the external marketing capability that indiscriminate budget cost cutting would create. With new digital enabled structures, brand marketing model is leaner, faster and more resilient.
Rationalisation of brand marketing operating model starts with a scan of the current operations and organisational structures. Quick wins, medium and long-term optimization opportunities are identified within first week. Depending on the urgency of the cost-cutting measures implementation, proof of concept or pilot project is drafted and implemented. Following the successful completion, economisation is rolled out further.
Total cost of the rationalisation program is tailored to an individual company's needs and brand marketing operating model size. Structure of the costs are divided into fixed and variable costs. Namely, aside of the initial scan and (any) digital solutions implemented, our fee will be entirely success based. For every 10% percentage of cost reduction we'll charge a success fee. Both time and money savings are taken into consideration.
The size of cost reduction will depend both on the individual complexity of global brand marketing operating model, as well as the scope and depth of economisation program. However, taking into account that just the process of digital decoupling - moving part of digital marketing production to lower cost location yields between 30-60% budget savings, it is safe to say at least 30% cost reduction on average can be achieved.
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