In the economic downturn, companies are doing everything possible to simultaneously cut costs and build a loyal customer base around their brands. The automotive sector has led the way in this, as it was forced to overcome the the two-pronged assault of a struggling economy and ongoing pressure from the eco-lobby. As we reported last month, electronic car companies like Tesla Motors are taking brand building to social networks to help build grassroots excitement around the new technology, and Ford ditched the traditional closed-door auto show for the release of the 2011 Explorer, which proved to be good for customer reach and cutting costs.

Now the latest report by Social Media Examiner’s Casey Hibbard shows how Cisco Systems is leaving behind traditional forms of customer outreach for an integrated and more personal social media strategy. It has effectively launched products exclusively through its impressive arsenal of social media channels – including a music festival product launch on Second Life – which drew 90% more impressions at only a fraction of the cost of a traditional media approach. And it has connected its executives directly to its customers through video conferencing and YouTube video CEO announcements. Consider it a case study on a huge company embracing the little guys through social business design.