Stiff competition forcing businesses to spend more on advertisement
Wednesday, 5 May 2010
Jasim Uddin Haroon
Local companies are aggressively spending on advertisements due mainly to growing competitions in the domestic market, bringing fortune to the advertising agencies.
The companies have almost doubled their budget for commercials, hiring creative people with attractive compensation packages for enhancing their marketing strategies.
Abul Khair Group, a consumer conglomerate, has hired a media strategist with a monthly pay of Tk 1.5 million, the largest compensation package ever offered by a local company to any individual.
The world's two leading advertising agencies -- Grey and ONM -- have entered the Bangladesh's market to cash in on the fast growing advertisement market in the country.
Md Jahangir Alam, chairman of MI Cement Ltd., manufacturer of Crown Cement told the FE: "We've increased our budget on the commercials mainly because of stiff competitions among cement manufacturers."
Local Companies, including Akiz, Pran, City Group, Square, TK Group, BSRM, RSRM, Crown Cement, Keya, Aftab Group, Partex, Navana, all have hiked their annual spending on advertisements.
M Rahman, chairman of RSRM (Ratanpur Steel Re-rolling Mills) said: "Earlier there were a few steel makers. Now more than 200 MS rod manufacturers are competing in the market. So this is a strategy to survive."
RSRM has installed 79 billboards across the country besides telecasting TVCs (television commercials) and ads in print media.
Executive Director (marketing) of Pran Group told the FE: "Our products' need promotion. We want to reach all peoples. This is the reason for spending more on advertisements."
He said Pran is now spending around 3.0 per cent of its gross turnover on ad.
He also said his company is spending money on advertisements and also sponsoring sports, cultural events.
Pran has more than 400 products and it is now spending mainly on TVCs.
"TVCs can attract peoples easily," Sujan, an official of Pran said.
Aameir Alihussain, a director of BSRM Group, said that: "We want to keep ourselves in touch with the people and let them know about the quality of our products."
Fakhrul Kamal, chairman of Madona, a leading advertising agency, said that the local companies are increasingly showing interest in advertising their products and services.
"Earlier we tried to convince the local companies about using TVCs, RDCs (radio commercials) and giving advertisements in the print media. Now they are coming to us for the same," he added.
He said the cost of advertisement has also come down due to the competition among the media houses.
Mr Fakhrul said the number of media has increased manifold and their marketing strategies are also playing an important role to help raise the volume of advertisements.
Bangladesh has around 200 advertising agencies including Asiatic, Adcom, Expression, Bitopi.
Local companies are aggressively spending on advertisements due mainly to growing competitions in the domestic market, bringing fortune to the advertising agencies.
The companies have almost doubled their budget for commercials, hiring creative people with attractive compensation packages for enhancing their marketing strategies.
Abul Khair Group, a consumer conglomerate, has hired a media strategist with a monthly pay of Tk 1.5 million, the largest compensation package ever offered by a local company to any individual.
The world's two leading advertising agencies -- Grey and ONM -- have entered the Bangladesh's market to cash in on the fast growing advertisement market in the country.
Md Jahangir Alam, chairman of MI Cement Ltd., manufacturer of Crown Cement told the FE: "We've increased our budget on the commercials mainly because of stiff competitions among cement manufacturers."
Local Companies, including Akiz, Pran, City Group, Square, TK Group, BSRM, RSRM, Crown Cement, Keya, Aftab Group, Partex, Navana, all have hiked their annual spending on advertisements.
M Rahman, chairman of RSRM (Ratanpur Steel Re-rolling Mills) said: "Earlier there were a few steel makers. Now more than 200 MS rod manufacturers are competing in the market. So this is a strategy to survive."
RSRM has installed 79 billboards across the country besides telecasting TVCs (television commercials) and ads in print media.
Executive Director (marketing) of Pran Group told the FE: "Our products' need promotion. We want to reach all peoples. This is the reason for spending more on advertisements."
He said Pran is now spending around 3.0 per cent of its gross turnover on ad.
He also said his company is spending money on advertisements and also sponsoring sports, cultural events.
Pran has more than 400 products and it is now spending mainly on TVCs.
"TVCs can attract peoples easily," Sujan, an official of Pran said.
Aameir Alihussain, a director of BSRM Group, said that: "We want to keep ourselves in touch with the people and let them know about the quality of our products."
Fakhrul Kamal, chairman of Madona, a leading advertising agency, said that the local companies are increasingly showing interest in advertising their products and services.
"Earlier we tried to convince the local companies about using TVCs, RDCs (radio commercials) and giving advertisements in the print media. Now they are coming to us for the same," he added.
He said the cost of advertisement has also come down due to the competition among the media houses.
Mr Fakhrul said the number of media has increased manifold and their marketing strategies are also playing an important role to help raise the volume of advertisements.
Bangladesh has around 200 advertising agencies including Asiatic, Adcom, Expression, Bitopi.