STO cuts down marketing expenditure from 3.4m to 1.06m

State Trading Organisation (STO) has cut down their marketing expenditure from 3.4 million Ruffiya in 2009 to 1.06 million Ruffiya.in 2010

Speaking to Miadhu Daily, STO Managing Director Shahid Ali said that in as a measure on the economic crisis that hit the world in 2008, the company decided to cut down the marketing budget.

Shahid said that the auditors included the selling distribution and the marketing expenses as one total in the audit report. He said that according to the reports 149 million Ruffiya was spent on in 2009 and 180 million ruffiya was spent in 2010. However, he noted that only 1 million Ruffiya was spent for marketing in 2010.

The reduction in marketing budgets of some shows that companies are taking a cautious approach to marketing expenditure against the backdrop of continuing economic uncertainty, subdued business confidence, cash flow pressures and fiscal raise of the foreign exchange rate.

Amidst the financial crisis, some companies are slashing jobs, slowing growth and cutting costs. One of the first costs to get cut are usually in marketing and advertising.