Consumer Goods Companies Need to Do More to Harness Digital Technology for Marketing or Risk Falling Behind

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New research from Wipro and Forbes Insights finds that companies need to do more with digital technology to improve marketing effectiveness

Bangalore, India and East Brunswick, New Jersey, USA - August 25, 2014: A new study by Forbes Insights and Wipro Limited confirms that if companies are not taking advantage of digital technologies to improve marketing efforts, they are falling behind their competitors. According to the study, 65% of executives say their companies need to do more to harness digital technology to improve marketing effectiveness. In addition, 61% say their companies need to do more in terms of harnessing marketing data to improve effectiveness in complementary areas such as product development and logistics.

These are among the major findings of 'The race is on: Keeping pace with the Consumer Goods leaders in digital marketing and technology', a new study from Forbes Insights, commissioned by Wipro Limited (NYSE:WIT), a leading Information Technology, Consulting and Business Process Services company. The study surveyed 125 C-level executives from large, global consumer goods companies, in the United States, Europe and Asia Pacific, from sectors such as consumer electronics, over-the-counter pharmaceuticals, food, beverages, home & personal care and apparel & footwear.

"This study shows that many companies still have a long way to go to realize the full potential of digital marketing," says Bruce Rogers, Chief Insights Officer and head of the CMO Practice for Forbes Media. "A trailblazing group of transformative companies is leading the way and achieving closer alignment between marketing and other departments. Others need to forge ahead or risk falling behind."

Hiral Chandrana, VP & Global Business Head, Consumer Goods, Wipro Limited said, "Executives today face a bewildering array of digital marketing technologies. It not only requires integrated website, mobile and social media strategies, alongside well-conceived and executed data privacy and security strategies, but also concepts such as omni-channel and analytics which add to the complexity. But at the same time, the collective capabilities of these technologies to grow and optimize sales and marketing are too important to be ignored."

He added, "The rapid shift to digital is providing businesses, across consumer industries, with more opportunities than ever before, to connect and engage with their customers. How well businesses are able to implement digital technology has a direct impact on business results and will keep them ahead of their competitors."

Additional findings from the report include:

  • Forty-two percent of executives believe their current approach to digital marketing is too fragmented—rising to 47% among companies with greater than $17 billion in sales. The larger the organization, the more products and divisions, the greater the likelihood there will be fragmentation.
    • Silos contribute to the challenge: Digital marketing is often organized as a separate function (37%), while e-commerce often operates as a separate business unit (39%).
    • Half of executives, 50%, report that in one or more instances, their digital marketing has failed to integrate with essential back-end processes.
  • Nonetheless, 20% of companies describe themselves as transformative. These are the leaders, companies that have already embraced a broad array of digital strategies: social, mobile, web and analytic tools and technologies transforming not only sales and marketing but also the overall business
  • To improve digital marketing effectiveness, companies are seeking closer alignment between marketing and IT.
  • Companies are looking to expand their use of external resources/providers for digital marketing
    • Forty-three percent of executives believe their IT departments are so busy they are unable to help with digital marketing technology needs.
    • Fifty-nine percent indicate that their companies are amenable to adopting a greater degree of technology outsourcing-specifically, a model where a third-party, full-service technology provider is able to assist with a greater degree of both front-end marketing and back-end operational processes.
    • Fifty-eight percent say they are open to working with consultants who can help manage both front- and back-end digital marketing processes.

The report titled "The race is on: Keeping pace with the leaders in digital marketing and technology," can be downloaded here: www.wipro.com/consumer-goods-transformation/

About Wipro Ltd.

Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of "Business through Technology" - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner's approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 140,000, serving clients in 175+ cities across 6 continents. For more information, please visit www.wipro.com

About Forbes Insights:
Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 50 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights conducts research on a host of topics of interest to C-level executives, senior marketing professionals, small business owners and those who aspire to positions of leadership, as well as providing deep insights into issues and trends surrounding wealth creation and wealth management.

Media Contacts:
Vipin Nair

Wipro Limited

+91 80 39916260
vipin.nair1@wipro.com

Subhashini Pattabhiraman

Wipro Limited

+91 7760983975
subhashini.pattabhiraman@wipro.com

Laura Daunis

Forbes Insights

+1 212-367-4874
ldaunis@forbes.com

Forward-looking and Cautionary Statements

Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property, and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

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