Digital marketing has emerged as a potent force in reshaping the way companies engage with their audience. However, the strategies employed by local businesses in this realm often diverge significantly from those of multinational corporations.
Immediate Past President of the Sri Lanka Institute of Marketing and Arinma Holdings Head – Marketing, Corporate Communications, and Sustainability Nuwan Gamage sheds light on these disparities, along with the advantages and disadvantages each approach carries in the Sri Lankan market.
Sri Lanka’s business landscape comprises an eclectic mix of local players, many of which operate on a smaller scale. When it comes to digital marketing, the challenge often lies in the fundamentals – marketing collateral.
Gamage noted: “The main shortcoming is that they have to fix their marketing collateral, especially their logos, message, etc. There are a lot of areas to develop for local businesses, especially in the SME sector.”
Multinational corporations, on the other hand, tend to excel in this aspect. Their global reach and influence enable them to maintain branding and marketing standards consistently across regions. A unified branding approach often results in better marketing collateral and more robust messaging.
The term ‘digital marketing’ often conjures up images of campaigns across social media platforms. Nevertheless, Gamage emphasised that it was essential to view digital marketing as a channel rather than an entire strategy.
“Marketing fundamentals will never change, but digital is a channel that you have to use,” he stated.
He highlighted that the core principles of marketing remained unaltered, irrespective of the channel chosen for execution. “Wherever you market, your marketing strategy has to be clear; your objective must be clear,” he added.
Same strategies, applied differently
Sri Lanka’s economic conditions have led to a significant advantage for digital marketing, primarily due to its cost-effectiveness. “Digital marketing is the most powerful and most cost-effective way to reach out to customers, especially for local businesses,” Gamage asserted.
In a country facing economic challenges, digital marketing serves as a lifeline for businesses looking to connect with consumers. However, he noted that when local businesses aimed to export their products, especially to markets where global competitors thrived, they must adapt their strategies to align with the local competition’s standards. Tools such as social listening, available on social media platforms, enable businesses to understand market trends and consumer preferences effectively.
A central theme in Sri Lanka’s digital marketing landscape is striking a balance between tradition and innovation. Gamage emphasised that older brands, particularly in the tea industry, often resisted change, fearing the loss of their unique flavours and customer loyalty.
“It is a two-way communication; if your products do not satisfy your customers, they can give direct feedback, which will impact your business,” Gamage pointed out. While digital marketing offers a platform for customer feedback, it also amplifies negative reviews, potentially tarnishing a brand’s image.
He advocated for a structured approach that encompassed clear objectives and strategies tailored to different digital channels. “You have to have a proper objective and strategies to achieve that objective,” he advised, noting that each platform demanded unique content and engagement.
Digital marketing specialist Shamitha Dewanarayana, speaking to The Sunday Morning Business, stated: “Strategies won’t be different; it’s just that they can be applied differently. For example, consider a local company which primarily operates through digital channels. In contrast, multinational corporations engage both digital and traditional platforms, including TV commercials.”
He explained that while the fundamental marketing strategies would remain consistent, the divergence would occur in how businesses tailored their approaches to cater to specific target audiences. Local companies often concentrate on specific market segments or regions, ensuring their messages align with the local context. Multinational corporations, with broader national or international reach, craft strategies to encompass a wide spectrum of consumers.
Dewanarayana emphasised that the core objectives remained constant irrespective of the scale of the business. He asserted: “Strategies will remain largely the same, depending on the objectives.” Whether a business operates on a local or national scale, aligning strategies with the target audience remains essential.
Willingness to experiment
To gain further insight into this topic, The Sunday Morning Business spoke to leading digital marketing agency Morpheus Digital Services CEO Sonal Jayawickrema.
One of the key differentiators between local Sri Lankan businesses and multinational corporations, according to Jayawickrema, was their willingness to experiment. He stated: “The biggest difference lies in the willingness to experiment. Many local companies are apprehensive about trying out new marketing strategies and tend to stick with traditional, tried-and-tested methods.”
Jayawickrema pointed out that while international companies were more open to embracing change and adapting to evolving marketing landscapes, a significant portion of local businesses remained risk-averse. This cautious approach can hinder their ability to capitalise on the dynamic digital marketing realm.
Adapting to the new normal
Sri Lanka’s economic challenges have cast a shadow on marketing budgets, impacting both local and multinational companies.
Jayawickrema highlighted the economic downturn’s effect on marketing spend, stating: “Since the devaluation of the Sri Lankan Rupee last year, marketing spend has decreased significantly. Companies that previously operated with larger budgets have seen the value of their investments diminish due to currency devaluation.”
The economic conditions have prompted many businesses, regardless of scale, to reevaluate their marketing strategies and adapt to the new normal.
Another challenge faced by local companies, according to Jayawickrema, is the knowledge gap. He explained that while digital marketing tools and trends evolved rapidly, many local businesses were slow to embrace new technologies and practices. In contrast, international companies often lead the way in adopting emerging trends, giving them a competitive edge.
A levelled playing field
As the economic crisis encourages individuals to explore entrepreneurship and establish small-scale businesses, the question arises: how can these micro-businesses effectively leverage digital marketing on a tight budget?
Jayawickrema asserted that digital marketing provided an equalising platform. “Digital marketing has levelled the playing field, allowing businesses to achieve substantial results with minimal investment. An entrepreneur can start with as little as a few dollars a day and witness significant outcomes,” he said.
He emphasised that digital marketing, coupled with the entrepreneurial mindset, had made it more attainable for individuals to establish and promote their businesses without the need for substantial financial resources. Strategies such as Facebook marketing, Instagram marketing, and influencer marketing offer cost-effective ways for small businesses to gain visibility and reach their target audience.
Navigating the digital marketing landscape in Sri Lanka requires a delicate balance between innovation and adaptation to economic constraints. Local businesses can bridge the gap with multinational corporations by embracing change, seeking knowledge, and leveraging the affordability and accessibility of digital marketing platforms.
As digital marketing continues to transform Sri Lanka’s business landscape, staying ahead in this dynamic arena demands adaptability, creativity, and a comprehensive understanding of the nuances that set local players apart from their multinational counterparts. In the end, the success of digital marketing in Sri Lanka hinges on navigating this intricate maze with both eyes set firmly on the future.