James Selva - brandequitymagazine.com

Contents
MPH Amplifies the
Brand Experience
AMP: Flanking Strategy
on the Cover
Malaysian Tourism
Gets a Boost Online
A Clever Way to
Break the Competition
Barack Obama & the
Power of Mobile
Word of Mouth: A
Primer from Vocanic
Shoppers Switch to
Cost-Saving Mode
A Good Show
from Radio
Made to Delight
Branded Tiles
Synovate Tracks
Affluent Malaysians
Malaysian Consumers
& the Economy
Brand Ambassador on
the Go
Sports Sponsorship
for Recognition
Mainstream Media
Leads Again
02
02
06
11
14
16
20
24
26
30
34
36
39
42
44
Editor’s Note
This is not something we would like to hear, but proof
points supporting the belief that many of our habits have
been manufactured by companies and marketers are in.
That chilling revelation and many more details are contained
in Martin Lindstrom’s latest book Buyology: Truth and Lies
About Why We Buy. We believe every brand builder must
devour the contents; and we’re not harboring any intention
to ‘manufacture’ reading habits here.
This issue features Malaysia’s leading player in the radio
sector. AMP is on the cover and the biography demonstrates
how strategic flanking and consistent innovation can
sustain competitive advantage.
Whilst Malaysian’s are concerned about the economy,
they can’t resist the temptation to shop. These and other
interesting nuances have been revealed by Synovate
Malaysia.
Despite the free-for-all, radio adex has moved-up. The
Nielsen Company reveals interesting facts & figures about
the sector’s performance. And Internet penetration has
doubled in five years; but traditional media continues to
dominate the Malaysian media scene, reveals The Nielsen
Company.
So Barack Obama can thank mobile marketing for getting
him elected. His decisive win is a lesson for brand marketers
about how a well-planned and executed mobile campaign
can change a brand’s fortunes.
Brand Builders, be inspired – there are always innovative
ways to change your brand’s destiny.
Mindset check! Are you willing to change?
Publisher : James Selva Executive Publisher : RT Selvii Publishing Director : RS Kumar
Group Editor : CGN Raghunath (email:[email protected]) Staff Writer : Chris Krishna
Contributors : Martin Lindstrom, Mickey Alam Khan, Venkat
Marketing Manager : R Selvan, Anenda Sharma Graphic Designer : VA Kanmani, AV Shantini
Dtp Artist : S Savithri IT Executive : Vani Sri Administration : Kavitha
Printed By :Sampoorna Printers Sdn Bhd. No1, Jalan TIB 1/19 Taman Industri
Bolton 68100 Batu Caves, Selangor.
PP11255/4/2008
Published by:
Brands ARE Playing
with Our Minds
47
perception
media
Perception Media Sdn Bhd
3-3, Jalan 11/48A, Sentul Raya Boulevard,
51000 Kuala Lumpur
Tel : 03 4043 0500 Fax : 03 4043 7648
www.brandequity.com.my
A Member Of:
1
Retail Experience
The
Experience
Matters,
Always!
Donald Kee
MPH no longer retails
books; in a manner of
speaking that is!
By Venkat
Like to be assured? While books may
a standard fixture at key MPH branches.
seem to be at the center of MPH’s
And MPH has come of age, with a firm
retailing universe, the brand has tweaked
grip on changes that are impacting their
its retail mix to include features that
customer’s lives.
reflect its commitment toward amplifying
the customer’s experience.
Built on the back of a solid heritage
that almost hits a century, the 1st retail
Among others, a quaint in-house deli
outlet of the then Methodist Publishing
fittingly branded ‘Book Café’ has become
House opened doors in Stamford Road,
2
Enrichment Beyond Knowledge
Children can indulge in an environment
that encourages them to read, participate
in activities or simply hang out.
Singapore. That was in 1908. The business
The retail chain now boasts the inclusion
went public in 1927, and subsequently
of megastores in three locations. ‘These
morphed into the chain that it is today.
pioneering lifestyle branches has helped
Over time, a makeover in identity gave
birth to ‘Malaysia Publishing House’; and
the iconic ‘MPH’ is now a 28-strong retail
network in Malaysia, with 4 in Singapore
as well.
Value Proposition
‘What differentiates our brand from the
typical bookshop is that we sell a total
experience instead of books. The key is
to ensure that our customer can enhance
his or her quality of life through the MPH
brand. And that by itself goes beyond
books. Our key value proposition to
transform our brand proposition into
reality for all of our customers,’ adds
Donald.
And given the target profile, MPH is
operating in a customer space that can
offer considerable challenges. ‘Our brand
appeals to the 25 to 35 year olds and
predominantly young families as well.
They are educated, overseas traveled and
committed to their children’s education.
In addition, most of our customers belong
to the middle to higher income bracket,’
says Donald.
at the Book Café is offered as a welcome
feature of the total brand experience.
our customers is that we aim to deliver
The MPH Brand Experience
enrichment beyond knowledge,’ says its
Among others, a members-only lounge
chief operating officer Donald Kee.
accords
the
customers expect these days. A time-off
kind
of
privilege
that
And
there’s
more.
Launching
a
compendium of recipes? Amplify the
experience with the inclusion of a Chef
who can whip-up a delectable variety
in the megastore’s very own and wellendowed kitchen.
‘We do, on occasion engage the right
people to take the lead in story telling
sessions, and speak their mind on
specific topics. This helps our customers
to relish the store experience and enrich
themselves in the process,’ says Donald.
And in the Kidz Zone, children can function
in an environment that encourages them
to read, participate in activities or simply
hang out. Their experience is peppered
with value discounts, newsletters, special
offers and regularly planned activities.
Customer Retention Strategy
As always, the intent must be to convert
customers into brand advocates. Retention
initiatives at MPH are channeled through
3
‘We are mindful of the change that
is taking place, particularly in the
digital space.’
two distinct clubs – MPH Reader’s Circle
or outdoor programs (held at times
and MPH Kid’s club. And members are
in places such as Bird’s Park) help to
constantly engaged through attractive
generate interest in books and inculcate
deals, events, newsletters, email alerts
the reading habit in children from a young
and other pertinent activities.
age.
Book Hive, a quarterly magazine for
In addition to such initiatives, special
children offers sneak previews of books
rebates are offered when customers
due on shelves and information about
purchase books at any of their stores.
activities for members. The store’s indoor
The 51st Merdeka special promotion was
a case in point.
Brand Communications
And brand communications is no longer
confined to traditional media. ‘We employ
a mix that reflects our customer’s living
nuances,’ says Donald.
While press advertising is somewhat of a
given, SMS and email advertising is fast
becoming the norm for MPH. Monthly
newsletters are circulated to members.
Co-branding
and
sponsorships
for
relevant events have become an indelible
part of the MPHs’ brand communications
strategy.
And mphonline is in operation. Whilst
Donald concedes that revenue from the
format will be subdued for the moment,
he believes that the investment will
deliver high ROI in the long run.
‘We are mindful of the change that is
taking place, particularly in the digital
space. Getting customers to source for
and order through PDAs and mobile
phones would be something to consider.
It delivers that much needed value while
enhancing their purchase experience as
well,’ says Donald.
4
ad for bq.indd 7
12/9/08 9:25:16 AM
Cover Story
Unapologetically
Different?
Why Not?
By Raghunath
When successful corporations express
their confidence, many may allude to the
choice of words as defiantly reeking of
corporate arrogance.
But we live in times when people can spot
and pooh-pooh any sort of spin; whilst
in-your-face comebacks are becoming
more acceptable. But at times, you’ve
got to take a stand. So let’s shove the
cynic aside, and you can hear hordes of
supporters urging, ‘Say it with panache
Bro...!’
When
Airtime
Management
&
Programming (AMP) declares ‘The AMP
Advantage, Unapologetically Different’…
Riding the streets
for sure it expresses their self-belief, and
unbridled confidence.
Perhaps ‘unapologetic’ because they’ve
secured the ears of 11 million listeners
nationwide; and each week some six out
of ten listeners tune in to any of their
eight radio stations.
What’s up with the ‘different’ part?
Well, they seem to churn out innovative
solutions that engage listeners and
Lite FM gives to kids
6
advertisers as well.
AMP was the first to take to the streets with
attractive vehicles. The aim is to interact with
radio listeners on the street and to act as a
sampling arm to distribute products free!
In the Beginning & Line-Up
to deal with shifting technological and
Time for that backgrounder. For the
cultural dynamics, and the persistent
uninitiated, AMP is a subsidiary of ASTRO,
push by indirect competitors to grab
and the corporate facade of eight popular
more advertising dollars.
FM radio stations (see profile, last page
this story). And the first station took to
the air in 1997.
Lions in the Arena
Despite the stacked-up advantage, AMP
is up against formidable competition. The
Fact is; AMP was the first to introduce
intimidating line-up includes a strong
format
stations
Media Prima (a media conglomerate that
broadcast every possible genre in all
has its tentacles in print, TV, outdoor,
popular languages, granting it the benefit
events and radio), over 30 government-
of engaging every sizable demographic
owned national as well as regional radio
and psychographic target in Malaysia.
channels, and boutique stations such
programming.
The
Innovation at AMP
Radio is no longer a ‘just
switch-on, spin-it and broadcast
medium’. On-air and off-air
activities have become equally
vital, and complement oneanother to intensify as well
as expand the experience for
listeners.
And the mix has to be very ‘multi’
– multi-platform, multi-media,
multi-activity to deliver that great
brand experience.
So what does the ‘brand
experience’
include?
The
audience listens, and gets the
opportunity to call in. They can
express their views, call-in to
inform happenings or participate
in a contest. And there’s always
the interactive platform of station
websites, mobile, on-ground
activities and other events to
hold their attention.
AMP was the first to take to the
streets with attractive vehicles.
The aim is to interact with radio
listeners on the street and to act
as a sampling arm to distribute
products free! To date, AMP
has eight different vehicles
supporting the seven main FM
networks.
Fun with mix.fm
It’s a line-up that demonstrates how the
as Capital FM, Bernama’s Radio 24 and
power of flanking executed by a market
among others, Manis FM.
leader can deliver strategic advantages.
If there is a listener gap, chances are
that AMP has plugged it. But will that
guarantee a tenable advantage? That
Pointedly, Media Prima has made striking
gains in the radio arena; its Hot FM is hot
on the heels of ERA, while Fly FM tries to
depends!
play catch-up with hitz.fm.
These guys are not only up against
And lately, RTM refreshed their line-
formidable direct competitors, but have
And advertisers would love to
maximize reach, touch and
impact. Like others, AMP offers
advertisers solutions that bundle
on-air, online, mobile and onground products. The media
owner claims leadership in media
bundling opportunities.
up; while new stations got into the fray.
7
The traffic team headed by Priscilla Patrick
Put it all together and you are treated to
Maxis, the official Broadcast Sponsor of
audience fragmentation; thus amplifying
BPL together with AMP sent 10 lucky
the
winners to watch the game’s finals in
The postcards enabled the listeners to
London. The entire activity involved the
call in every morning, for the chance to
use of radio, mobile, internet, and on-
win RM300. And to top that, one lucky
ground activities.
winner won the grand prize of RM3000,
urgency
for
managing
listener
attrition and loyalty.
There’s more – include the plans of
media owners outside the radio space.
Powered by Perodua Viva’ postcards.
courtesy of Perodua of course.
The Outdoor Boys will swear by their
Perodua wanted to celebrate 50 years of
medium. Or just ask print and TV media
independence with the community and
owners and they will list their unequivocal
Magnum Corporation and AMP’s THR
promote the Perodua brand as well as
advantages over every other medium;
Raaga held the Magnum THR Raaga
the new Perodua Viva.
Charity
and of course, insist that your media ROI
Concert
2008
at
Penang
International Sports Arena with a strong
will ascend with them. It’s vicious.
audience of over 9,000!
And let’s not forget the Telcos for
The audience, sponsors and media
instance. Expect radio listeners’ to shift
helped collect a total of RM 49,247.70 for
in droves if they decide to channel more
two orphanages in Penang.
juicy content to subscribers in a pact
with an appropriate partner. And young
AMP’s Internal Advances
listeners are a vulnerable lot.
Amidst everything, the media owner has
It doesn’t look nice! Still, it heightens
been paying attention to its own brand
Indie Band Funk Face
the need for more and more innovation if
media owners such as AMP like to holdon to listeners; exactly what they’ve been
repertoire, refreshing the stable when
AMP Consulting is charged with
up to.
developing short term tactical campaigns,
Off-Key Solutions for Advertisers
or cost-effective long term brand-building
Its fair to suggest that vanishing gradually
campaigns for clients.
are days when a brand can get loud with
a mere jingle over the radio. Sic! Selected
AMP cases-in-point follow.
The solution: Perodua partnered with
necessary. And there have been other
AMP’s ERA, reached out to 50,000
allied internal innovations as well.
Maxis
Communications,
the
leading
listeners all around Malaysia, and spread
Telco
operator
to
promote
joy and patriotic spirit. It was done in
Barclays Premier League (BPL), and
style – ERA’s breakfast crew traveled all
deliver the ultimate football experience.
around peninsular Malaysia in a Perodua
A partnership was struck with AMP’s
Viva each, making their way to high
ERA and hitz.fm to organize the Maxis
traffic areas. The team distributed 50,000
Football Speedmaster Challenge.
limited edition ‘ERA 50,000 Mission,
8
wanted
Xfresh kicked-off as a teen community in
2001, the initiative became a radio brand
by 2004; and a magnet for local talent,
giving them the kind of exposure they
need to take-off and succeed.
While hitz.fm rebranded to become
Malaysia’s 1st interactive radio station in
2001, Lite & Easy made way for LiteFM
in 2006.
Heard about AMP Consulting? Its charged
with developing among others, short
term tactical campaigns, or cost-effective
long term brand-building campaigns for
clients.
And
AMP’s
state-of-the-art
studios,
completed in 2006 have 3 webcams
each to provide content over the ASTRO
channels if they so wish, as well as
webcasts.
What the Future Holds
And a secure facility contains servers
In 2007 AMP became the first radio
that holds a library of over 50,000 songs.
company
in
Malaysia
The internal archive is a step in the right
crawlers
and
clients’
direction because most old music in
listeners FM car stereos via Dynamic
Malaysia, recorded between the 40s and
RDS (radio data system); a move that
According to The Nielsen Company, a
70s are yet to be archived.
secured the interest of competitors.
total of 15 million people tune-in weekly
to
broadcast
messages
to
Despite all the talk about a burgeoning
digital domain, radio ad revenues have
been ascending.
to the radio, representing 92 percent of
the total population of people aged 10
years and above in Peninsular.
Granted, radio has mass appeal and
seems to be resilient in an environment
replete with hordes of media options
for advertisers.
And for those in radio broadcasting
– must ‘radio’ remain their core
business? ‘Somewhat’ is better than
an accentuated ‘Yes’.
Dump ‘Yes’ because that takes a myopic
view of the entire business when nontraditional competitors can flash their
deadly fangs (even an escalator in a
The Jakeman Spins
high-traffic property has become an
advertising medium of sorts).
And bear in mind that a sizable young
population in Malaysia is a gold mine
waiting to be engaged. Their reading,
viewing and listening habits have
changed given their association with
the ubiquitous mobile phone.
Point is – what does that mean for
AMP? Well, they have been innovative
thus far. The challenge lies in ensuring
that consistent innovation remains at
the center of everything they decisively
MY FM announcers in costume
do for listeners and advertisers.
9
AMP’s Repertoire: A Snapshot
TM
Radio Station Brand
www.hitz.fm
www.mix.fm
www.litefm.com.my
www.era.fm
Target Audience
10 to 29 years old
25 to 39 years old
35 – 49 years old
18 to 34 years old
Positioning
Statement
Malaysia’s #1
Hit Station
Malaysia’s Best
Variety
Famous For The 80’s
Rentak Muzik Terkini
(Latest Music Trends)
A Word from Those in
Charge
Program Manager
Brian Vinesh Veeriah
says, ‘This is the station for all the hits and
you must check out the
new hitz.fm morning crew, now with
JJ and Ean. They are
like Mexican jumping
beans fully fuelled with
coffee. Cool, and Trend
setting, playing all the
hitz.’
‘We are contemporary and bubbly.
MIX fm reaches out
to a sophisticated
fan base with an
eclectic mix of radio
personalities, playing
your favourite music
from the 80s to
today,’ says Program
Manager Anushia.
‘Nostalgia lives on
LiteFM now with the
best songs from the
80s. And when you
think reminiscing
about the yesteryears
is good enough,
LiteFM gives current
information and
tips, so even when
the music is backdated, LiteFM keeps
you updated,’says
Program Manager
Ramesh Mark Sankey.
Says Program Manager Nazri Noran,
‘ERA is the pioneer
of Bahasa Malaysia
format radio for 10
years. Championing local music and
entertainment, with
a mixture of Indonesian, international
music, and the latest
trends.’
‘Mornings are whacked
out with the morning
crew kick starting your
day like a slingshot to
the other side of the
moon,’ says Music
Executive Uno.
Radio Station Brand
www.my.com.my
www.sinar.fm
www.xfresh.com
www.thr.fm
18 to 39 years old
(Raaga)
20 to 39 years old
(Gegar / Hindi
Power)
Target Audience
18 to 34 years old
35 to 49 years old
10 to 24 years old
Positioning
Statement
Great Music,
Great Company
Muzik Retro Terbaik
(The Best of Retro
Music)
Kami tak hot, kami
cool!
THR Raaga:
Aaha...Sirantha Isai
THR Gegar:
Permata Pantai
Timur
A Word from Those
in Charge
Senior Program Manager Roland Lee says
that the station offers
fresh and entertaining
Chinese adult contemporary music with
friendly announcers on
air always. ‘We often
bring the hottest Asian
acts to town,’ he adds.
‘SINAR experienced a
solid growth in 2008.
It can only be attributed to the brilliance
of SINAR pagi team,
our established lineup of announcers,
and of course, the
music that we play.
The best of retro music from the 70’s and
80’s in English and
Malay’, says Program
Manager Rostam
Zulkhairi Said.
‘We broadcast 100%
new sounding Malaysian Music. Fresh,
new, kick a@$! young
Malaysians rock it
with XFM, the only
station that plays
100% Malaysian
music. XFM turns
down the temperature, and keeps it
cool. That’s why,
‘Kami tak hot, kami
cool!’ says Program
Manager Adly Syairi
Ramli.
THR Raaga’s
Program Manager
Ramesh Periasamy
says, ‘Raaga offers
a selection of Tamil
music that includes
urban, pop, folk and
semi classical from
80’s, 90’s and now.’
Azaari Atan, THR
Gegar’s Program
Manager says,
‘THR Gegar plays
adult contemporary
and traditional
music. Gegar also
strives to inculcate
values identified
closely with Malay
cultural nuances.
Gegar’s Hindi Power
segment is popular
amongst Malay
listeners.’
10
e-Marketing
Tourism
Malaysia
and the
e-Platform
Rohizam Md Yusoff
A Technology Company is Harnessing the
Power of the Domain to Support Malaysia’s
Travel and Tourism Indistry
By Venkat
Of late, travelling has been facilitated
reliable supporter in order to prop-up its
by the proliferation of a myriad of
own credibility.
e-portals. The problem is that those
that need relevant information must
spend considerable time browsing the
online environment.
Let’s train the spotlight on 2 portals –
Virtual Malaysia, a home-grown tourism
portal for avid travelers worldwide,
and myTOURS, a consolidated tourism
Often, a red flag pops-up when
e-business portal that unites government
reliability is in doubt. Among others,
agencies, various sectors of the travel
a portal may need the backing of a
industry, and consumers.
11
‘We are currently riding on the back
of an increase in demand for onlinetriggered travel from consumers from
all over the world.’
‘We have, over the past decade deployed
travel from consumers from all over
boom. Users are able to comment and
a
industry
the world,’ said Rohizam. He added that
share about their experiences on travel
experience to operate a one-stop portal
the success of myTOURS relies on its
products or services and even advice
for all stakeholders operating within the
three ‘Cs’ – Commerce, Content, and
other travellers on places that they have
tourism and travel sector,’ said Rohizam
Community.
visited,’ he added.
mix
of
technology
and
Md Yusoff, the CEO of Creative Advances
Technology (CAT), and the inspiration
behind Virtual Malaysia and myTOURS.
‘Commerce helps travel agents and
And the intent of Virtual Malaysia and
travel suppliers connect with each other
myTOURS? To deliver maximum visibility
whether they are inside or outside of
for Malaysia worldwide.
Malaysia and spur the travel industry to
The Model
Whilst virtualmalaysia.com is the official
grow faster than ever,’ said Rohizam.
Branding and Promotions
Whilst myTOURS remains at best a recent
e-tourism portal for the Ministry of
‘Content is a centralised data warehouse
entrant, its associate Virtual Malaysia has
Tourism,
which provides extensive travel destination
made considerable inroads into the minds
brings together several stakeholders
information,
of consumers worldwide.
under one platform – travel agents,
planner to all myTOURS subscribers.
airlines, hotels and travel suppliers.
This is the ‘sticky’ side of our website.’
‘We are currently riding on the back of an
‘Community is riding on the growing trend
information hub. Our brand identity is
increase in demand for online- triggered
of user-generated content in the Web 2.0
featured prominently in every campaign
Malaysia,
mytours.com.my
event
coverage,
travel
‘We have benefitted considerably as
Tourism Malaysia’s exclusive official
undertaken by the Ministry of Tourism,’
said Rohizam.
And 30 million monthly hits is offered
by Rohizam as a credible proof point
to confirm Virtual Malaysia’s global
recognition. ‘The exclusivity of our portal
12
A newsletter enables subscribers to keep abreast
of happenings besides helping to advertise and
promote their services
is maintained by carrying only tourism-
representatives
related information,’ he added.
invited to share their views about taking
‘Almost 80% of our traffic comes through
search engines. We consistently harness
the power of search marketing for
directing traffic to us,’ said Rohizam.
from
Google
were
advantage of the online environment
for generating more travel and tourism
business.
Moving Forward
In Malaysia, CAT had signed-up 50
Interesting Nuances
inbound travel operators, airlines, hotels
Rohizam said that the behavior of
and travel suppliers for the myTOURS
consumers online helps enhance content
platform.
and configuration from time to time. In
addition, participating stakeholders are
also supplied with vital information they
can take advantage of.
With
the
enhance trade relations with Malaysian
inbound travel operators’ products and
promotions.
success
of
myTOURS
in
Malaysia, CAT has introduced the portal
‘In time we will expand our footprint to
to prominent outbound travel operators
include several countries in the Middle
in Singapore and other countries to
East and Europe,’ said Rohizam.
Some known nuances include:
Taking note of miss-spelt keywords helps
direct traffic. Often, Singaporeans missspell Cameron Highlands as ‘Cameroon’.
Targeting this miss-spelt keyword can
direct Singaporeans to Malaysia.
Search patterns of visitors can vary from
season to season. Australians typically
search for beach holiday destinations in
Malaysia but opt for Batu Caves early in
any given year.
Visitors spend on average 8 weeks to buy
a travel plan. And it is done in a phased
manner.
‘Knowing such timelines allows smart
marketers to dovetail their messages into
the buying process at the right time,’ said
Rohizam.
The trade has to be managed as well. A
newsletter enables subscribers to keep
abreast of happenings besides helping to
advertise and promote their services.
And last year during an e-marketing
conference
for
industry
players,
13
Rip the Competition
How to
Rip the
Competition
in One Go
By Martin Lindstrom
Some years ago, an Australian takeout
The Pizza Place went a different route.
Pizza Place used the Internet in an
Instead of spreading money between
attempt to boost sales. Traffic was slow.
off- and online ads, it spent the entire
Hardly anyone visited the site. The need
budget on radio. The spots were simple
for an increase in traffic was urgent.
but extremely effective. So effective, the
If traditional online media planning had
been used, banners and links would have
been purchased and the URL added to
restaurant’s increased business caused
most of the local competition to shut
down.
the shop’s phone-book entry. It might
How’d it do it?
even have invested in some traditional
Instead of offering discounts or merely
ads.
promoting its URL, the Pizza Place’s
14
Quarter of the
world’s brands have
not incorporated
their URLs into the
message customers
hear on the phone
while on hold.
More than half of today’s brands have yet
to optimize the way search engines secure
consumer awareness of their existence.
radio ads asked listeners to tear out all
always will. But if you really want to build
off- and online channels and via new
the pizza-restaurant pages from their
effective traffic and branding, go one step
channels. The effectiveness of every
yellow pages and bring them in. In return
further. That is, unless you’re a Microsoft
piece of your communication is increased
for the pages, customers received a free
with an almost unlimited marketing
tenfold if each promotes that pivotal
pizza of their choice and a sticker with the
budget.
idea rather than simply touting some
restaurant’s URL.
Generating traffic combines traditional
special offer, new taste sensation, or new
product.
Very clever!
thinking with three idea-based elements.
Because the contact information for all
The idea is crucial. First, create the idea
Third, optimize any channel you use
the other pizza joints in town disappeared
as the local Pizza Place did. Develop an
and ensure the message points in your
from
reference
idea that not only generates attention
direction.
source, only one set of contact details
but also generates appropriate attention
was left in households that complied: the
- attention that enables people to
URL for the restaurant that dreamed up
remember the information that engaged
the promotion. That single outlet is now
them and to act on it.
customers’
primary
a franchise.
You’ll never forget the pizza story, right?
Creating traffic is not necessarily a matter
The idea (removing the pizza pages
of buying ads or taking a traditional
from the yellow pages) is simple, clever,
approach. Of course, there’s always room
cheap, and audacious.
for traditional thinking. It works and
Second, promote the idea via traditional
I don’t need to remind you more than half
of today’s brands have yet to optimize the
way search engines secure consumer
awareness of their existence.
A quarter of the world’s brands have not
incorporated their URLs into the message
customers hear on the phone while on
hold. Nor have they added standard
signature lines to emails that include the
company URL. These details amount to
free branding.
What’s more important?
The chicken or the egg? Both. Far too
many brand builders believe traffic is
secondary to site development.
Wrong.
Unless you have an unlimited budget, you
can’t afford not to think creatively. You
risk ending up like all those vanquished
pizza competitors.
Martin Lindstrom is the author of Buyology –
Truth and Lies About Why We Buy, BRAND
sense and BRANDchild and an advisor to global
brands including McDonald’s Corporation,
Procter & Gamble, Nestlé, Microsoft, The Walt
Disney Company and GlaxoSmithKline. Visit
MartinLindstrom.com.
15
Mobile Strategy
A Victory
for Obama,
a Victory for
Mobile
By Mickey Alam Khan
How much satisfaction should mobile
an intelligent person to the highest office
marketers have today that the man
without regard to color, experience or
elected to become the 44th president of
heritage.
the United States proved beyond doubt
the ability of mobile marketing to effect
sweeping change?
All it required was hope and optimism in
the face of daunting challenges ahead,
and a willingness to take risk – with an
For when President-elect Barack Obama
atypical message and powerful platforms
takes the oath of office on that cold
such as mobile and the Internet.
January morning, he will have proved
to the nation and the world that the
Marketers have a lot to learn from the way
combination of mobile and the Internet
the young senator’s campaign harnessed
with door-to-door canvassing can elect
the imagination and stirred the emotions
16
The Obama
campaign sits
on millions of
names in its
opted-in mobile
database.
The SMS texts proved that the Obama
campaign didn’t take the candidate’s
growing popularity for granted.
of millions of Americans through mobile.
presidential pick set the standard for
They should study how this campaign
the excitement that a text message can
aroused passion and anticipation through
create.
160 characters sent at the right time to
the right audience.
More than 2.9 million text messages
were said to have been sent out on
Voters young and old willingly donated
that particular occasion. The Obama
small and not-so-small sums via the
campaign has never really released the
Internet to fuel the movement for change
size of its mobile database, but the Biden
and willingly parted with their mobile
announcement goes down in history as
phone numbers as a show-of-hands for
the largest mobile marketing push by
the grassroots effort that the ‘Yes, We
text, at least to date.
Can’ movement required.
The Obama campaign sits on millions of
Textbook campaign
names in its opted-in mobile database.
Mobile Marketer regularly followed the
Many more names lie in its Internet
Obama campaign’s use of mobile. For
those who signed up, the text alerts from
short code 62262 (OBAMA) were friendly
database, accounting for a large chunk
of the $650 million in funds that the
campaign raised to elect an eloquent and
and earnest. It didn’t look like a senator
inspiring man to the White House.
was messaging from on up high, but
Know the code
someone that you would know sending
a friendly message asking for your
support.
The SMS texts proved that the Obama
campaign didn’t take the candidate’s
growing popularity for granted. Every
opted-in mobile consumer counted, every
This acticle does not lean Democratic or
Republican. It leans ethical marketing
and mobile. The praise for Presidentelect Obama comes not from a plank, but
for his understanding that consumers –
voters, in this case – want to be part of
the story. Mobile is their lifeline to the
text endeared with an appealing call to
outside world.
action.
The Republican campaign, for some
The
texts came with familiar
regularity...
...Just before a local appearance, before
the debates, before the final primary
contest between Senators Hillary Clinton
and Obama.
In what will be remembered as a turning
strange reason, didn’t get that. The
Republican Party is known for its
grassroots efforts. Its strategists are
adept at mining the electoral database
to a point of perfection. But they failed
to enlist the enthusiasm of consumers
through the most powerful medium of
communication today – mobile.
point in mobile marketing history – and it
It never happened. For example, the
McCain short code for SMS signups was
hard to find on johnmccain.com.
The
world
only
became
aware
of
the McCain short code at the party’s
convention in St. Paul, MN. And that SMS
appeal was directed to donating to the
American Red Cross via text for victims
of the hurricanes brewing in the South.
Even the Obama campaign pitched the
same $5 text donations to the Red Cross,
so there wasn’t a point of differentiation.
Take the run-up to the elections. Here’s
what short code 62262 had to say in a
text message at 2:53 p.m. EDT on Oct. 30:
‘Less than a week until Election Day on
Nov. 4th! Barack needs your help. REPLY
to this msg with your 5 digit ZIP CODE for
local Obama news and voting info.’
Four days later, this writer received
another text message at 3:15 p.m. EDT
is marketing, because that is what politics
In fact, when penning stories on the
on Nov. 3 from short code 46708: ‘Put
is, the marketing of ideals personified by
Obama mobile efforts, we tried each time
your country first and vote on Tuesday! To
the candidate – the announcement of
to be fair and see if the McCain campaign
find your polling location visit Gop.com/
Senator Joe Biden as Mr. Obama’s vice
changed its attitude to mobile marketing.
ElectionDay. Forward to your friends.’
17
Mr. Obama’s election should inspire
marketers to take risks and include
mobile and the Internet in their media
and marketing plans.
The numbers of mobile subscribers
is
growing
nationwide
and
across
the world. Mobile phones are getting
more sophisticated. Data plans are
more
consumer-friendly.
Above
all,
That message didn’t even mention
Many exhibitors plan to return to the next
the Republican presidential candidate
ad:tech in San Francisco. Why? They see
John McCain by name. Where was the
the value in being spokespeople for an
emotional appeal? Why wasn’t there a
industry whose time has come, slowing
An
economy or not. Consumers have spoken
consumers is gold for marketers and can
for mobile, just as they have for the first
do for them what it did for a bold man
mobile president of the United States.
seeking to solve this nation’s problems.
Inspiring by example
At 12:16 a.m. EDT this morning, a text
The Obama victory must inspire not just
message popped into this writer’s inbox.
the African-Americans or minorities, but
The sender was short code 62262. ‘We
people of all backgrounds. People indeed
just made history. All of this happened
have high expectations of Mr. Obama and
because you gave your time, talent
here’s hoping he lives up to them.
and passion to this campaign. All of
stronger call-to-action?
Exactly 24 hours later, another text
message pops into the box, this time
from short code 62262 on Nov. 4 at 3:28
p.m.: ‘People who love their country can
change it! Make sure everyone you know
votes for Barack today. For voting info call
877-874-6226 or VoteForChange.com.’
Bite the bullet
Long story short, there is a lesson here in
the Obama victory for marketers gun-shy
of using mobile for customer outreach.
Yes, the economy is slowing. Yes, budgets
need to be cut.
Yes, Wall Street’s demands for sterling
quarterly performance have to be met.
But you don’t walk away from the future.
You don’t trade tomorrow for yesterday.
And mobile is the future, and the future
is here.
The enthusiasm for mobile was palpable
Nov. 3-4 at the ad:tech New York
conference for interactive marketing
technology professionals. The GoMobile!
Zone was busy on both days. Visitors were
researching the many ways they could
include mobile in their multichannel
plans.
They sought advice from the pavilion’s
16 exhibitors – those smart souls who
evangelized mobile to an audience of
online and brand marketers because
they saw the connection between the
many interactive channels.
18
Mr. Obama’s election should inspire
marketers to take risks and include
mobile and the Internet in their media
and marketing plans.
There is absolutely no reason why
the Fortune 500 brands or even small
business should not embrace mobile
advertising
and
marketing,
messaging and the mobile Internet.
text
the consumer is ready to dialogue on
mobile.
opted-in
mobile
database
of
this happened because of you.Thanks,
Barack.’
Mickey Alam Khan (mickey@mobilemarketer.
com) is Editor in Chief of Mobile Marketer
(www.mobilemarketer.com), a leading news
publication covering mobile marketing, media
and commerce. Its goal is to help readers
and marketers understand how the mobile
channel can be used alone or in conjunction
with other channels for branding and customer
acquisition and retention purposes.
ad for bq.indd 2
12/9/08 9:24:58 AM
Word of Mouth
Word of
Mouth
Marketing
101
By Ian McKee
Well, let’s start with what Word of Mouth
to harness, amplify, and improve. WOM
(WOM) is.
It’s the natural process
marketing isn’t about creating WOM - it’s
of people sharing their opinions and
learning how to make it work within a
recommendations
marketing objective.
about
the
brands
that surround their life. This sharing
And research shows that 60% of our
happens in all the ways that we use to
conversations are about the brands that
communicate with each other.
matter to our life.
WOM is a pre-existing phenomenon that
Interestingly though, WOM marketing
marketers are only now learning how
empowers
20
people
to
share
their
A happy customer is the greatest
endorsement...
experiences. It harnesses the voice
time, providing information or samples to
• Giving advocates information that they
of the customer for the good of the
influential individuals.
can share
brand. And WOM can’t be faked or
• Using advertising or publicity designed
invented. Legitimate WOM marketing
Influencer Marketing: Identifying key
to create buzz or start a conversation
acknowledges consumers’ intelligence -
communities and opinion leaders who are
• Identifying and reaching out to influential
it never attempts to fool them.
likely to talk about products and have the
individuals and communities
ability to influence the opinions of others.
• Researching
WOM Marketing’s Key Tenets:
• Recognizing that a happy customer is
the greatest endorsement
Brand Blogging: Creating blogs and
participating
in
• Giving customers a voice
the
spirit
in
of
the
blogosphere,
open,
transparent
communications; sharing information of
• Listening to consumers
value that the blog community may talk
• Engaging the community
about.
Common Types of WOM Marketing
and
tracking
online
conversations
How do I ‘do’ WOM Marketing?
Here are some of the techniques &
activities that you should consider.
1. Encouraging communication
• Developing tools to make telling a friend
Referral Programs: Creating tools that
easier
enable satisfied customers to refer their
• Creating forums and feedback tools
friends.
• Working with social networks
Organic vs. Amplified WOM
2. Giving people something to talk about
Organic WOM…occurs naturally when
• Information that can be shared or
people become advocates because they
forwarded
are happy with a product and have a
• Advertising, stunts, and other publicity
natural desire to share their support
that encourages conversation
and enthusiasm. Practices that enhance
• Building WOM-worthy elements into
Organic WOM activity include:
products
are likely to share interests about the
• Focusing on customer satisfaction
3. Creating communities & connecting
brand (such as user groups, fan clubs,
• Improving product quality and usability
people
and discussion forums); providing tools,
• Responding to customer concerns and
• Creating user groups and fan clubs
content, and information to support those
criticism
• Supporting independent groups that
communities.
• Opening a dialog and listening to people
form around your product
• Earning customer loyalty
• Hosting
Buzz
Marketing:
Using
high-profile
entertainment, events or news to get
people to talk about your brand.
Viral Marketing: Creating entertaining or
informative messages that are designed
to be passed along in an exponential
fashion, often electronically or by email.
Community
Marketing:
supporting
niche
Forming
communities
or
that
Grassroots Marketing: Organizing and
motivating
volunteers
to
engage
in
Evangelist
Marketing:
Amplified WOM… simply occurs when
marketers launch campaigns designed to
personal or local outreach.
Cultivating
evangelists, advocates, or volunteers who
encourage or accelerate WOM in existing
or new communities. Practices that
discussions
and
message
boards about your products
• Enabling grassroots organization such
as local meetings and other real-world
participation
amplify WOM activity include:
4. Working with influencers
• Creating communities
• Finding people who are advocates of
• Developing tools that enable people to
your brand and are influencers
share their opinions
• Engaging these individuals in a deeper
Product Seeding: Placing the right
• Motivating advocates and evangelists to
relationship with the brand
product into the right hands at the right
actively promote a product
• Good-faith efforts to support issues
are encouraged to take a leadership role
in actively spreading the word on your
behalf.
21
Given how effective WOM Marketing is, it
is very tempting for marketers (and often
traditional agencies) to look for shortcuts.
and causes that are important to these
These tend to be high risk, and could lead
individuals
to a negative backlash against your brand
5. Creating evangelist or advocate
programs
• Providing recognition and tools to active
advocates
• Recruiting new advocates, teaching
them about the benefits of your products,
and encouraging them to talk about them
6.
Creating programs specifically for
if they don’t work.
Planning a WOM campaign? Say ‘No’ to:
1.Stealth
Marketing:
Any
designed
to
people
deceive
practice
about
the involvement of marketers in a
communication.
2.Shilling: Paying people to talk about
(or promote) a product without disclosing
that they are working for the company;
listening to customer feedback
impersonating a customer.
• Giving people a specific destination
3.Infiltration: Using fake identities in an
where they can give you their suggestions
and feedback – and you respond
• Tracking online and offline conversations
by advocates, detractors, and neutral
• Listening and responding to both
positive and negative conversations
online discussion to promote a product;
taking over a web site, conversation, or
Honesty of Identity: Never ask people to
live event against the wishes or rules set
pretend to be someone they are not.
by the proprietor.
As the trust in advertising goes down and
4.Comment Spam: Using automated
the cost of media goes up it makes more
software (‘bots’) to post unrelated or
and more sense to devote part of your
7. Engaging in transparent conversation
inappropriate comments to blogs or other
marketing budget to WOM.
• Encouraging two-way conversations
online communities.
The media is free, and very powerful
with interested parties
5.Defacement: Vandalizing or damaging
(Nielsen rates it as the most powerful
• Creating blogs and other tools to share
property to promote a product.
information
6.Spam: Sending bulk or unsolicited
• Participating openly on online blogs and
email or other messages without clear,
discussions
voluntary permission.
8. Co-creation and information sharing
7.Falsification: Knowingly disseminating
• Involving consumers in marketing and
false or misleading information.
creative (feedback on creative campaigns,
allowing them to create commercials,
etc.)
• Letting customers ‘behind the curtain’
to have first access to information and
content
purchasing behaviour), but deploying it
absolutely requires a change in mindset
from the marketer.
And take note: Good WOM marketing
strategies involve finding ways to support
satisfied customers and making it easier
A Simple Rule of Thumb
for them to talk to their friends.
Use the ‘The Honesty ROI’ to gauge if your
Vocanic is Asia’s leading WOM marketing
agency. Vocanic provides the strategy and
planning needed to design successful WOM
campaigns, the technology platforms needed
and the experience to saleable and effective
programs.
WOM campaign is credible. Checklist your
campaign against the following:
Honesty of Relationship: The participants
in your campaign should openly disclose
Absolutely No Shortcuts
their relationship with the brand.
Given how effective WOM Marketing is, it
Honesty of Opinion: The opinions they
is very tempting for marketers (and often
express should be truthfully what they
traditional agencies) to look for shortcuts.
believe.
22
when it comes to affecting people’s
Ian McKee can be reached at imckee@vocanic.
com.
Disclaimer: Parts of this piece are derived from
work done by the WOM Marketing Association of
which Vocanic is a charter member.
ad for bq.indd 4
12/9/08 9:25:06 AM
Shopper Trends
Rising Costs Pave
Way for Private
Label Sales in
Malaysia
the best bargains. This development is
substantiated by the strong growth of
Private Label as compared to branded
manufacturers in the modern trade
channel. From February to September
2008, sales value of Private Label grew
32 percent, far ahead of the 15 percent
growth in branded goods compared to
the corresponding period last year.
“With Private Label shares on the
increase,
Private Label options,” observed Maria
to Private Label or Store Brand sales in
Öijer Retailer Services Director, South
Malaysia, as shoppers switch into cost-
East Asia, The Nielsen Company.
saving mode to stretch their household
manufacturers
would be wise to pay close attention
and aggressively protect their brands’
equity
The rising cost of living is proving a boon
branded
through
targeted
advertising
and promotion strategies,” commented
Oijer.
Private
Label
thrives
in
“low-
The Private Label market in Malaysia was
involvement”
worth RM240 million as at September
products meet shoppers’ more basic and
2008, translating to over 30 percent year-
functional needs. Leading Private Label
Private label of store brand refers to a
on-year growth. “It is early days yet for
categories include paper, basic non-food
product or variety of products offered
Private Label in the Malaysia market,
and commodity foods with low emotional
by a retailer under their own name in
but we have seen a sharp spike in sales
brand values.
competition with branded goods. Private
momentum over the last year, fuelled
label products, like non-branded goods,
by rising commodity prices,” observed
In modern trade channels, the top three
are normally cheaper than branded
Öijer.
product categories with the highest
budgets, according to latest insights
from The Nielsen Company.
items.
According to the Nielsen Retail Audit
which tracks 68 grocery categories in
modern trade channels (hypermarket,
supermarket, pharmacy and convenience
stores) in Peninsula Malaysia, prices of
some grocery segments have jumped as
much as 20 percent year-to-date, with
food items rising by an average of 15
percent.
“Inflationary pressures are forcing costconscious consumers in Malaysia to
adapt their grocery shopping habits and
switch to cheaper alternatives, notably,
24
While Private Label is still in its infancy
in Malaysia, the sector is slated for
stronger growth against a backdrop of
inflation and consumers seeking out
categories
where
the
penetration of Private Label in terms
of value share are bottled water (51%),
sweetener (42%) and cooking oil (24%).
In terms of growth in value share, bottled
water has increased by 12 percent,
Öijer pointed out that Private Label products have
most success where manufacturers have lost the
edge in creating real or perceived added value,
price is the only differentiator, true innovation is
scarce and there is plenty of production capacity.