The Future of Retailing: What is needed? Malaysia Retail Trade: A

•
Shoppers & Consumers want more information, better health & nutrition that is consistent
with the lifestyles they want to lead and the values that are important to them
•
Shoppers require an emotional connection to ‘their’ store
•
Shoppers are less amenable to traditional marketing messages than in the past
•
They now seek validation from other shoppers, engaging within shopper networks to
determine the best retailer offer for their needs
The Future of Retailing: What is needed?
• Stores must differentiate & move beyond price
- Price has become a ‘given’, it takes more to convince the shopper to change store
- E.g. recognition of men as key influencers in many purchase decisions
• Stores must be the ‘Brand’
- Retailers need to manage their stores as brands; build trust (e.g. Loyalty card program)
- Retailers must build the ‘store brand’ so customers see the store as ‘their’ store
• Stores must create the Shoppers Experience
- E.g. Starbucks where many people spend considerable time (& are willing to pay much more
for a cup of coffee because they are shopping for the ‘offer’ & the ‘experience’)
• Innovate
- In format & technology – recreate the shopping experience – exploit niches with high margin opportunities
• More SKUs (Stock-Keeping-Unit) not less
- Business simplification is good in terms of streamlining operations, but not necessarily range reduction
• Better brand portfolio management
- Ensure the brands sold are a good fit for the ‘store brand’
• Knowledge of shoppers / consumers
- Knowing shoppers / consumers better than anyone else
- Collaborate: suppliers share knowledge of consumers, retailers share knowledge of shoppers
Malaysia Retail Trade: A glimpse of the future…
•
Modern Trade (MT) will be the largest trade sector within one year
•
Traditional channels will decline in sales importance to total trade in Urban
centres, but grow in rural areas where MT expansion is slower
•
Customers / Modern Trade outlet will continue to diminish as MT expansion
continues at a rate greater than Births, GDP & Inflation
•
Same store sales will come under increasing pressure, particularly Supermarkets in
Urban centres who are finding it difficult to carve a niche
•
Retailers will continue to introduce new formats in order to ‘reach’ every aspect
of a customer’s life.
Brand Equity | 26
Brand Equity
Web Marketing
Podcasting for Marketing,
Why it’s NOT Just for iPods.
&
‘Podcast’ comes from a combination
of ‘iPod’ and ‘broadcast’
By Jeff Zweig
Chief Guru, Southeast Asia
Web Guru Asia
jeff@webguruasia.com
My previous articles over the past
few months have dealt with RSS. In
them I touched briefly on the subject
of Podcasts. Now it’s time to look at
Podcasts in more depth, with some
suggestions for how we as marketers
can help promote our brands through
Podcasting.
First, though, let’s clear up a
common misunderstanding. According
to Webster’s Dictionary, the word
‘Podcast’ comes from a combination of
‘iPod’ and ‘broadcast’, which has led
many people to assume that Podcasts
are just for iPods. This is far from the
case.
Podcasts are downloadable media
files (audio or video) and can be
played on any digital device with the
right drivers and software, which
includes almost every laptop and
desktop computer, as well as every
PDA and MP3 player and many mobile
phones (and, yes, every iPod too).
What does this mean to us as
marketers? Simply put, Podcasting
is a content delivery channel that is
readily accessible to the majority of
A sure sign that
Podcast advertising is
being taken seriously.
consumers. And Podcasts are highly
portable - you can play content
whenever and wherever you want – on
a plane, at the gym, anywhere you
can take your playing device.
This combination of accessibility
and portability has helped some
Podcasts become wildly popular. The
most downloaded Podcast to date
featured Ricky Gervais (David Brent
from The Office) and was distributed
via the online edition of The Guardian
newspaper. It was downloaded over
8 million times, generating enormous
publicity and some serious brand
awareness for The Guardian. It
probably helped shift some advertising
units on www.guardian.co.uk too.
Brand Equity | 28
All the major international media
organizations are now heavily invested
in Podcasting. CNN is a good example.
Have a look at http://edition.cnn.com/
services/podcasting and you’ll find
daily and hourly Podcasts in both Audio
and Video (‘Vodcasting’) formats, all of
which you can subscribe to via an RSS
aggregator.
For an Asian example, have a look
at what South China Morning Post is
doing at http://podcasting.scmp.com.
BBC Radio also uses Podcasts, and it
has a good guide to downloading and
playing content, which you can check
out at http://www.bbc.co.uk/radio/
waystolisten/podcasts.
It’s not surprising that media
organizations should be into Podcasting
– they already have a lot of audio or
video content. But what about other
types of company, how can they benefit
from Podcasting? Let’s look now at some
of the ways that we as marketers can
use Podcasting.
These fall into two broad categories.
Firstly, marketers can leverage off other
people’s content, through advertising or
sponsorship. Secondly, marketers can
create their own content and use it
to generate online interest and brand
loyalty.
The following suggests ways in
which we can use Podcasting to
promote our brands:
1. Sponsorship of Podcasts
This works in a similar way to brand
sponsorship of television of radio
shows. If a particular Podcast has
good coverage in the demographic we
want to market to, or has a particular
synergy with our brand, then
sponsorship is an interesting option.
An example here would be a highenergy breakfast cereal sponsoring
a Podcast on health and fitness. If
you want to see a list of the types of
Podcasts out there, have a look at the
Podcast Directory on http://www.
podcastingnews.com.
2. Advertising on Podcasts
This is already becoming big
business, with online ad syndication
networks and Podcast hosting
companies offering programs that
allow advertisers to insert their ads
into video Podcasts (‘Vodcasts’).
The day I write this article sees the
launch of a new industry association,
with some pretty big names on board
– a sure sign that Podcast advertising
is being taken seriously. Have a look at
http://www.downloadablemedia.org
for more information.
3. Product Knowledge
Podcasts, and particularly Vodcasts,
are ideal for spreading product
knowledge and offering suggestions for
using a product or service.
A good example here would be a
regular Vodcast for a food brand that
shows creative new recipes. With
distribution via your own website,
Vodcasting can be much less costly
than traditional advertorials – and it
can provide information of genuine
value to customers.
4. Training
If you have a brand that features
regular upgrades, you can distribute
upgrades via RSS and then provide
training via Podcasts or Vodcasts.
http://screencastsonline.com does
something like this, with video
Brand Equity | 29
tutorials for Mac, PC and iPod. Sales
agents working in the field can also
receive training on product updates
via Podcasts.
5. Viral Marketing
The Internet is a great place to try
out fresh marketing ideas without the
need to pay too much for airtime or
media space. There is a great deal of
synergy between viral marketing and
Podcasts, particularly for new product
launches.
You can distribute branded video
clips via Podcasting and encourage
recipients to pass them on, either
by forwarding the file or forwarding
a link. If the video content is
compelling, it can get passed around
a lot, generating that all important
Internet buzz that help a brand take
off.
These are just a few broad
suggestions. The specifics of any
campaign using Podcasting will depend
on the brand and the target audience.
The only limit to what we can do with
Podcasting is our own creativity as
marketers.
Brand Equity
HOTSPOTS 1
Emerging Market
Opportunities
Synovate Presents Pithy Insights
on the World of Emerging Markets
By R. Venkateswaran
Emerging markets often find premium space in the
market development plans of companies that seek to move
their brand repertoire beyond the national borders.
But the road to success can be littered with mines
ready to explode with a misstep. Often, the execution of
international expansion plans have been stymied because
they lack the sensitivity required to negotiate business as
well as social nuances.
A couple of years ago Northwest Airlines advertised a
business-class airfare from Taiwan to the United States for
NT$44,444. It’s safe to say that no one in Taiwan would
have bought the ticket, even if it was the bargain of the
year. And it’s obvious why such a colossal ‘blunder’ was
communicated to consumers…abject ignorance.
Companies harboring the intention to move their
brand overseas and succeed need to do their homework
and get right the facts about relevant happenings in any
international market.
There’s help if an attempt is being made to take
that first or second step. Well-known research company
Synovate has released a series of snappy reports dubbed
HotSpots. ‘The reports are essentially snapshots that
provide critical insights into some of the world’s most
promising and emerging economies. It can be used as
a starting point by organizations that are considering
emerging markets in their expansion plans,’ says Steve
Murphy, Managing Director of Synovate Malaysia.
Synovate’s HotSpots reports about the dynamics of
14 emerging markets furnish a practical overview of key
elements to note before any attempt is made to move in.
The database of the research material compiled is
driven by a centralized template that was rolled out of
Hong Kong and includes qualitative as well as quantitative
data. ‘This provides a useful report on what are the main
things to consider when going international and in a form
which is easy to read,’ explains Steve.
Each report presents ‘Big Ideas’ which are important
insights that will help better understand a country’s
nuances, the dos and don’ts of market research as well
as a compendium of consumer and third party data. ‘In
a nutshell, it’s about what makes the country tick,’ says
Steve.
Besides providing a critical snapshot of each of the
emerging markets, the report also includes a general
overview of potential opportunities that brand builders can
take advantage of.
Those interested in acquiring the reports can contact Steve
Murphy at steve.murphy@synovate.com
Brand Equity | 30
Steve Murphy
Hotspots
Hotspots
Many marketing professionals from outside China have very
little knowledge of the country. What they do know is often
stereotypical or anecdotal.
China is commonly divided into four ‘tiers’. Tier 1
represents the most developed areas, namely Guangzhou,
Shanghai and Beijing. Tier 2 tends to be other provincial
capitals and major cities. Tier 3 includes the remaining
cities, and Tier 4 tends to be the rural areas. On average
there is higher GDP per capita in the higher tiers.
Don’t make the mistake however of assuming this is
always the case. For example, within Guangdong province,
Dongguan is Tier 3 and yet it has higher GDP per capita
than Shenzhen (Tier 2) or the provincial capital Guangzhou
(Tier 1). The reality is that the tiers are as influenced by
political considerations as they are by economic ones.
Beyond tiers, one should also consider the regions
of China: the North East; North/North West (including
Beijing); East/Central (including Shanghai); South/South
East (including Guangzhou); and the South West.
The North Easterners are seen and see themselves
as masculine, rough, direct and daring. Northerners are
proud of their ancient past, rational, patriotic, socially
conservative and likely to accept and support hierarchy and
their place in it.
Easterners are aggressive, open, business-minded,
fashion conscious and consider themselves as sophisticated
and discerning. Southerners are practical, flexible,
interested in detail, and money-minded. South Westerners
are considered cultured, warm and laid-back.
There are also a number of ethnic minority groups living
in the region with very real regional habits and practices.
For example, no meal is complete in the South without
rice while in the North dumplings or noodles are more
commonly part of the meal.
China is large and its economy is growing. But out of its
1.3 billion people, the majority still live in the countryside
and 60 per cent of them remain outside the cash economy. Don’t assume, however, that selling to all those people is
going to be easy. You need clear insights to know what will
and what won’t work.
China is the world’s largest beer market by volume,
although it’s likely there will still be room for expansion
– especially at the premium end of the market. And The
Chinese generally believe that hot beverages are better for
you than cold ones.
A Morgan Stanley report showed that the proportion
of Chinese people that brush their teeth daily is 99 per
cent, exceeding the US number of 96 per cent. But don’t
take those figures as the last word on the subject. The
percentage brushing twice daily outside Tier 1 and Tier
2 markets is not high, leaving a massive opportunity for
growth in the category.
Much of China has seen huge economic improvements
in recent years, but parts of the country still have a lot of
catching up to do.
India is a complex potpourri of different languages,
cultures and economic diversity. For an Indian consumer,
the first issue is often not which brand of TV or motorcycle
to buy but whether to choose a TV or a motorcycle.
Given limited disposable income, the typical Indian
family has to consider a hierarchy of needs and wants.
A refrigerator or TV is at the top of the list, followed by
mobile phones and a motor scooter. Production positioning
is key to inducing the average Indian consumer to buy.
Something that affects the collective family would be more
likely to be taken up than nice-to-have items.
Women in urban India enjoy more equality with their
male counterparts than anywhere else in Asia. The ability
of the Indian woman to juggle her career and her domestic
roles is unmatched in any other part of the world. The
Indian wife/mother is expected to manage her household
budget like a CFO as well as be an expert in the domestic
arts. This necessitates the products to be marketed in
unique ways to catch the attention of the housewife.
Certain products are used in surprising ways. For
example, microwave ovens are not used in the kitchen
to cook, but prominently displayed in the living room to
gently warm a guest’s beverage. And don’t bet against that
drink being coffee in traditionally tea-drinking India.
The wide geographical diversity within the country,
especially the North-South divide reflects the socio-cultural
differences that determine consumer behavior. North is
considered more freewheeling, whereas South is considered
to be more conservative. A family in the South looking to
buy a new washing machine, for instance is likely to visit
several shops making copious notes along the way about
features of rival products and their respective warranties.
In the North, people would also look at the hard facts, but
are more likely to be influenced by brand image or the
aesthetics of an appliance.
Southerner’s tend to ensure their children’s future by
pushing them into professional or business careers. They
are also more likely than their northern counterparts to
invest in insurance policies or commodities such as gold.
India is a paradise for bargain hunters. There’s usually
a market selling what you want just around the corner.
Consumer electronics, tyres, household appliances; and
the used goods market is a flourishing business. Businesses
work hard to cater to the aspirational consumer at every
income level.
Rather than a price for a particular product, it is more
about a product for every price. Sometimes it is not
about providing a different product but a different size or
packaging. In the US, consumers often choose jumbo packs
for consumables, but Indian consumers are offered the
option of single servings.
The sheer size of the population with its manifold
contrasts makes it a marketer’s dream as well as a
nightmare. However the potential of the untapped market
is so huge it finds pride of place in brand builders top
destinations.
Brand Equity | 31
Hotspots
Hotspots
Thailand is seen to be one of the fastest growing
markets in the South East Asian region and rightly so.
Thailand’s warm-hearted culture has proved to be a
bankable asset. The country’s uniquely hospitable culture
has also spurred the development of a thriving healthcare
industry which attracts more foreigners to Thailand
to receive world class medical attention in facilities
resembling five star resorts.
Thailand’s relaxed and friendly attitude to life doesn’t
mean that companies can compromise on the quality
of the products and services they offer. It takes a lot to
bring a Thai’s anger to the surface, but once deeply upset
he’s prepared to show it. A car manufacturer was at the
receiving end when a customer who had problems with his
new SUV took a sledgehammer to the vehicle in full view of
the public and press and demanded a replacement.
Thais strive to blend in with and be accepted by their
friends, colleagues and neighbors. They care deeply
what others think of them and go out of their way to buy
products and brands that will help them be accepted by
others.
Thais usually stick to the ‘safe choice’ or accepted
market leader – a potentially significant challenge to
launching a new product in this market. New brands
face a long and arduous battle to gain mass acceptance,
irrespective of whether the product is actually considered
to be better than what is already on the shelves.
Personal relationships are quite binding in Thai society
and business. Thais always prefer doing business with
someone they know rather than a faceless corporate entity.
In some cases, the relationship between the vendor and the
customer is more important than the product itself.
Besides being fervently loyal to the monarch, Thais are
extremely patriotic. Many Thai brands from beer to petrol
take advantage of this nationalism in how they promote
themselves. Claiming that buying a particular product is
good for the country is a common marketing strategy.
Foreign companies looking to enter the Thai market
generally focus on the middle and upper classes in urban
centers, particularly Bangkok. At first glance, this strategy
makes sense. However only 10% of Thailand’s 65 million
people live in Bangkok, the rest live up-country.
These may be urban or rural and they have a relatively
low exposure to marketing and brand development.
Although household incomes may be lower than big cities,
the low cost of living would be an attractive factor to
brand builders.
Companies seeking access to Thailand’s mass market
may need to redefine their understanding of what a
‘consumer product’ is. Cement for example, is generally
a business-to-business sale in Western countries, but in
up-country Thailand where people build their own homes,
cement is a branded consumer product.
With a huge population and a growing middle class,
Indonesia should be a marketer’s dream, but unless
approached in the right way, it could spell potential
disaster. Indonesian consumer behavior is as varied as
the population, reflecting the widely different income
levels and lifestyles across the country. The white collar
professional in downtown Jakarta has little in common with
the rural fishermen of Banda Aceh.
The world’s largest Islamic nation, religion is the nearest
thing to a unifying power, but even faith is fragmented.
The country has 20 million Christians concentrated in 5
main areas while most of Bali’s 3.1 million residents are
Hindu.
Outside major cities, transport and communication
are rudimentary. Poor infrastructure across the entire
archipelago is commonplace and this is made to look even
more Herculean due to its sprawling geography. With two
million distribution outlets nationwide, getting products to
consumers can be very complicated.
Traditional pasars (large markets) and warungs (tiny
stalls) are the dominant retail channels than modern
stores. Unilever Indonesia’s effort over several years sees
it currently managing a distribution network of around
12,000 wholesalers and 800,000 shops across the country.
At the ground level, many consumer items are sold by
street vendors in the middle of the street to motorists
stuck in traffic jams.
Belonging to a group is one of the strongest bonds
in Indonesian society. Similar to Thais, the desire to be
accepted is more of a concern than distinguishing as
individuals. Doing things in groups is always preferred to
doing them alone. Understanding this thinking is critical
when marketing to Indonesian consumers.
In Indonesia it is extremely difficult to dislodge a brand
that is the market leader. The mere fact that everyone
likes it makes it self perpetuating.
With the antique copper line telecommunications
infrastructure unable to support the demands of its
burgeoning population, unique solutions using wireless and
mobile technology has permeated the brand communication
space. Mobile telephony has revolutionized communication
in Indonesia. With a wide selection of media from national
to local TV stations, print media and the like, a typical
brand manager’s time and attention is also taken by belowthe-line activities as the large country is not adequately
supported by the necessary communications infrastructure.
Expediting fees are openly and freely used to smooth
the way in everyday life and is not viewed as corruption.
However it’s a fact of life and accepted if not always
acknowledged as part of the system. People may not
expect large sums for the favors or services they provide,
but ignore their requests at your peril.
Representative samples are difficult to achieve in
Indonesia because of its huge geography. Focusing on the
70-80 percent of economically active consumers who live in
the four major cities would be more cost effective.
Brand Equity | 32
Brand Equity
Marketing Accolade
DiGi’s Yellow Coverage Fellow
Makes Malaysia Proud
Naga DDB together with DiGi
Telecommunications brought home
Malaysia’s first-ever Gold at the
Asian Marketing Effectiveness (AME)
Awards 2006 for the recent DiGi’s
Yellow Coverage Fellow campaign.
In total, the DiGi campaign brought
home the Gold for ‘Most Effective
Use of Advertising in Asia’, and
a Silver AME in the ‘Best Idea’
category. The AMEs are unique in
that they are the only international
marketing award in Asia which are
judged primarily on the measurable
impact of advertising campaigns
on the clients’ business. This is
Naga DDB’s fifth Asian Marketing
Effectiveness award in 4 years and
also the first year that any Malaysian
brand has been recognized with a
rare Gold AME Award.
Apart from being one of the most
consistently recalled campaigns in
Malaysia, DiGi’s own brand health
tracking showed the DiGi’s Yellow
Coverage Fellow garnered an
overwhelming 83% approval rating
from the public – also reflected in
the number of letters and emails
received by DiGi requesting personal
appearances.
languages and 50 YouTube films,
including 6 homemade spoofs.
The campaign also featured heavily
in both local and regional media
- generating an estimated media
value of RM826,144.83 at the time
of submission back in April 2007.
In the same period, Naga DDB also
tracked and documented 349 online
blog mentions in at least 3 different
“I think of all the votes approval
we’ve received from this campaign,
the huge public following and
affection the Yellow Coverage
Fellow has been shown - both
online and in the letters DiGi
received – has been the most
gratifying. You know you’ve done
something right when people
ask for Yellow Man baby-sitting
services and guest appearances at
weddings,” said Naga DDB managing
director Chit Quah.
Naga DDB’s win follows a series
of recent coups for the agency
including being named Malaysia’s
‘Agency of the Year’ for the
second year in a row by Campaign
Brief Asia as well as securing new
assignments from ASTRO and IGB
Corporation.
Also among those present to
receive the award were DiGi’s
Principal Brand Consultant Steven
Mak, Rema Chetty Associate
MARCOM Consultant, Naga DDB’s
creative director Alvin Teoh,
creative group head Richard Koh,
business unit head Sarina Sham and
brand manager Sazrina Samat.
Brand Equity | 33
THE “EVE-OLUTION”of WOMEN
Brand Equity
Consumer Insights
DDB Signbank,
a global trend-watching network
presents insights into the
Malaysian Woman of Tomorrow
Sulin Lau, Pearly Lim, Ngeow Pui Lin, Jessica Yong, Marini Bux
It’s been titled ‘Eve-olution’,
an ambitious research project that
probed into the nuances of Malaysian
career women.
Spearheaded by a small team
led by Naga DDB Strategic Planning
Director Sulin Lau, the ‘Eve-olution’
in-depth report is based on hundreds
of independent signs gathered from
Malaysia and beyond – ranging from
new emerging business models to
demographic trends to Naga DDB’s
own survey of the hopes, dreams and
fears of career women.
‘According to DDB SignBank’s
study, we found a very different
view of how women are changing.
Today’s Malaysian women have been
spending the last decade re-modelling
themselves into no-nonsense, hard
as nails Superwomen who are eager
to match men stride-for-stride.
But signs are now pointing to the
imminent return of femininity, a sense
of belonging within the home and
family,’ commented Sulin Lau, who
has already recruited a team of 30
‘sign collectors’ from different walks
of life and is further looking to add
journalists, academics, mothers and
teenagers to this list.
The published ‘Eve-olution’
report has identified several future
trends among Malaysian women that
will have a part in predicting the
Brand Equity | 34
personality traits of tomorrow’s women.
The findings were based on The Nielsen
Company’s Media Index data as well
as a Naga DDB Signbank Survey of 100
women earning above RM5000 between
the ages of 25-35 years old.
The consequential challenge
would be to extend the findings to
sizable target segments and associate
their nuances with relevant product
categories as well as brands.
And a return to feminity in droves
will realign target purchasing power,
buying motives as well as personal
values. As a result, brand propositions
along with creative appeals will have to
be recasted.
Brand Equity | 35
Brand Equity
Trendspotting
[
[
Contrary to widely held beliefs, people are
changing the way they relate to money.
Joanna Kong, Alex Goh and Wong Yee Thong
An initiative in unearthing insights
as to how Malaysians relate to
money was initiated by DDB
SignBank®.
‘DDB SignBank® is our
commitment to lead the consumerinspired planning process; predicting
the actions and attitudes of
‘tomorrow’s consumers’, and
incorporating these insights in
developing creative solutions. It
is insight-based creativity that
ensures the most effective brand
communication solutions will be
delivered to our clients,’ explains
DDB International’s Brand Planning
Director, Wong Yee Thong.
Dubbed ‘Future Currency’, DDB
International collected and collated
thousands of signs and produced
an in-depth report about current
and future trends in the context of
finance.
The initiative led by Wong also
included Joanna Kong and Alex Goh,
along with a core group of signhunters. ‘Signs were also contributed
through many tête-à-tête sessions
with financial consultants, insurance
agents, entrepreneurs and even our
mothers who had their own second
personal accounts,’ says Wong.
So how are Malaysians relating to
money? ‘Today is about working hard
for one’s money, that is trying to
get as much money as possible and
trying to keep it as long as possible.
But tomorrow is about wanting
Brand Equity | 36
one’s money to work for oneself,
materialistically, mentally and
morally,’ says Wong.
It means that tomorrow’s money
will no longer govern one’s actions
but instead one will manage what
one wants to do with it. In other
words, beneath everyone’s craving
and hunger for growing wealth,
there is also an underlying desire
to contribute back to oneself or to
society.
Wong explains that the initiative
has identified what he calls ‘the 5
evolving stories of tomorrow’.
Richness, not Rich is a realisation
that money will become more than
a mere stepping-stone – it will be
instrumental in broadening the mind
and enriching the soul. Tomorrow is
all about purposeful living, ensuring
that money will be used to learn
about the self and the world, e.g.
purposeful vacations, passion-based
academic pursuit or business startups or even work-filled retirement
and not work-free retirement.
Do you know?: 75% of Malaysians
believe that enriching the self is
more important than getting rich.
People are striving for Purpose,
not Profit; a growing awareness for
humanity and the need to give back
to the community. In an age of many
unfortunate political, social and
economical occurrences, people are
beginning to appreciate life more
and what the world has to offer.
They want to give back, in whatever
form they see fit, be it monetary or
time.
Do you know?: 67% of Malaysians
would exchange all their birthday
presents for donations to their
favourite charity.
People will also no longer let
luxury dictate or define them;
instead they will define what
luxury is. My Selectivity, not Mass
Exclusivity is the notion that
luxury will come in many forms
and tomorrow’s consumer will not
abide by the rules of ‘richness’ but
break out of the norm and create
their own niche; for instance, VIP
vacations and alternative forms of
investments.
Do you know?: 83% believe that they
define their own luxury, luxury does
not define them
In tomorrow’s world,
Transparency, not Transactional
behaviors will dominate. People
will become wiser with their time.
They will understand that there are
more important things to do with
their time than run around doing
mundane chores, especially if it has
anything to do with money. Opting
for a simpler and responsibility-free
lifestyle, they are leaving it up to
others to handle their finances.
Do you know?: 55% would willing
share their financial information if it
means simplifying their lives
Lastly, Time Rich, not Money
Rich, is a reflection of shifting
attitudes of Malaysians towards the
significance of money. People are
beginning to understand that the
price of time is far more valuable
than material goods.
Do you know?: 51% would rather
take an extra week-long holiday
than a monetary bonus for work.
Interestingly, DDB International
Brand Equity | 37
has embraced the Tomorrow story
of Purpose, not Profit by choosing
to make a positive impact in lives of
the needy. ‘We are celebrating the
future stories by producing Future
Currency: The Scrapbook. The book
is for sale, and we are donating a
portion of the revenue to World
Vision, an advocacy group dedicated
to working with children, women
and communities to overcome
poverty and injustice,’ says Wong.
Future Currency is about people
and their money of tomorrow. Aside
from the fact that the insights will
be of significant interest to brand
builders, the challenge lies in how
these stories will be leveraged to
their brand’s advantage.
Readers who wish to contribute to
World Vision may contact Wong at:
yeethong.wong@ddbint.com.my
Brand Equity
Marketing Analytics
Measuring Pricing &
Promotional Effectiveness
Shedding light on the econometrics of Brand Marketing
By Chris Krishna
In the face of unyielding competition, brand owners as
well as retailers gun for that extra edge by executing
a variety of price as well as non-price promotions
throughout the year.
But there is this dire need to measure the impact
of such promotions upon sales as well as ROI. Brand
Equity caught up with Gareth Ellis, Executive Director,
Nielsen Analytic Consulting, Asia Pacific to understand
the dynamics behind measuring the impact of pricing
and promotions activities upon sales and other related
metrics.
The Strategic Imperative
Customer relationships are key to share ascension
and analytics open the pathway for conceiving robust
customer retention strategies. ‘This is exactly what
we do for clients, resulting in specific actionable
recommendations which when applied can lead to an
upsurge in sales,’ says Ellis.
‘Marketers need to determine which activities
will deliver expected ROI based on current market
conditions. Our research helps to determine the
appropriate marketing strategy that will drive the
pricing and promotional aspects of a specific brand over
time,’ he adds.
Managing price without affecting sales volume is a
delicate balancing act that retailers and brand owners
have to contend with. The research typically identifies
critical price thresholds which will determine the
optimal sales-point in terms of volume, values, profit,
market share and consumer’s mind share.
‘The outcome of the research would elaborate on
consumer dynamics such as price sensitivity, emotional
pricing points and gaps between competing brands
within a certain store at a given location over time,’
says Ellis.
Armed with this information, marketers can target
their promotions at the right audience at the right time
and in the right place.
Research Mechanics
A multiple regression technique identifies price
thresholds based on baseline and incremental sales
data generated from daily transactions. A sales
decomposition is evaluated and quantified to identify
the contribution of different variables on both baseline
and incremental sales.
‘We use two years worth of retail tracking
information for a given brand and its competitors in
the same category. The key inputs include in-store
pricing, baseline sales, incremental sales directly due to
‘... take the
appropriate
action at the
right time,’
Gareth Ellis
promotional activities or sales lost to competitors over
time and are derived by drilling into the component
parts of the transactional data,’ says Ellis.
A price elasticity co-efficient, which is derived
from the analysis, is then used to analyze each of the
promotional activities and this is converted to volume
or sales units to track the effect of pricing on demand.
Impact on Brand Marketing
Eventually, the results would help marketers pinpoint
the promotions or marketing activities that delivered or
otherwise.
The process also enables marketers to identify
exactly which activities had the most impact on revenue
and profitability. ‘With a focus on in-store factors such
as pricing, special displays, advertising and short-term
promotions among others, brand marketers and retailers
Brand Equity | 38
will be able to take the appropriate action at the right
time,’ says Ellis.
What adds value to this research apart from
the usual marketing economics is the delivery of
significant insights on customer relationship areas
such as customer loyalty, brand preferences and most
importantly what consumers actually do (as opposed to
what they claim to do).
By modeling each store separately, individual
activities can be associated with the sales off-take over
time and the result is more statistical precision.
Brand builders and retailers are also able to identify
the ‘promotional yield’, which measures if the spend
on promotional activities commensurate with a
corresponding increase in sales volume or revenue.
Brand owners and retailers that leverage the
outcomes delivered by potent analytics have a better
chance of achieving what all their contemporaries
aspire for – sustainable competitive advantage.
Related Charts
Trade Promotion Effects by Region
Benchmarking Trade Spend Efficiency
Store level modelling allows to isolate and measure
the impact of price and promotion activities on
sales at store level
Store level modelling decomposes total sales into
base, incremental and lost sales
Malaysia, HK, Taiwan & Singapore have the highest
average brand elasticities
Brand Equity | 39
Brand Equity
Brand Equity
Managing Brand Equity
An Opportunity to Build Stronger Brands thru a Systematic Guide
By R. Venkateswaran
In a consumerist world, consumers
relate better with brands that deliver
great experiences. But to brand
owners, a brand must deliver more
than great experiences.
Strong brands must secure and
deliver high equity to its custodians.
And there are elements to be
managed for building stronger brands.
Brand Equity spoke with Lee Joo Lee,
the Executive Director of The Nielsen
Company’s customised research unit
to get an idea about the step-wise
elements that must be considered to
build brand equity.
‘the measures
here include
empathy,
persuasion,
impact and
communication,’
Building Strong Brands
Brand Development RoadMap
A five-step development roadmap
gives brand marketers the opportunity
to make a difference, and in essence
helps build brands with high equity.
‘The first step evaluates the
current status of the brand. At this
stage the awareness secured by the
brand is established. And strong
brands tend to achieve exceptionally
high levels of spontaneous brand
awareness,’ says Lee.
She says that a high level of brand
awareness is an important driver
of brand equity. The additional
elements to be measured include
the consumer’s perception of the
brand. ’Consumers must associate
a strong brand with factors that are
relevant to their needs. Brands can
be associated with value for money or
high quality for instance. These must
be established,’ explains Lee.
Equity is said to be strong if a
brand has high recall; consumers are
willing to pay a premium for it and are
willing to recommend it to others.
The second step (Brand Offering)
verifies if the brand occupies a
unique position in the consumer’s
mind. It is also designed to establish
if the brand’s key offerings reflect
the consumer’s need. Measures must
The final step (Brand Scorecard)
measures if the brand has delivered.
For instance, brands with high equity
are likely to command price premium
over its competitors. Relations with
consumers have never been stronger.
On the other hand, the measures
may also reveal that presence at
certain retail establishments may
have been weakened and the overstretching of its premium position has
alienated certain consumers.
Lee Joo Lee
then be taken to ensure congruence
between the brand’s proposition and
the consumer’s needs.
The third step (Brand
Communication) evaluates the success
of the key brand communication
message and will determine if the
advertising objectives have been
met. ‘The measures here include
empathy, persuasion, impact and
communication,’ says Lee.
Additional elements that are
subject to scrutiny include recall
of brand messages and touchpoints
that are needed to deliver the brand
message.
The fourth step executes the
key activities that sync with the
brand’s core objective. The strength
of the brand’s relationship with the
consumer is assessed. This is reflected
in the ability of the brand to retain
its consumers at each stage of the
decision making process. ‘The brand’s
inventory should also be sufficient to
meet demand once the consumer’s
mind is made up,’ says Lee.
Brand Equity | 40
The Nielsen Company’s global
database of over 8000 brand
experience cases in 73 countries
reveals nine facts about building and
managing strong brands:
1.Strong brands are an exception,
not the norm
2.Strong brands are known to almost
all consumers
3.Strong brands are the ones that
come to the mind first; three
times higher than average
4.Non-fmcg and food category
brands are driven more strongly by
quality of awareness
5.Strong brands are considered by at
least 80% of consumers
6.Strong brands have trial rates of
more then 70%
7.Strong brands retain about twothirds of their consumers
8.Strong brands have about 3 times
more dependables, preferrers and
recommenders
9.Strong brands have higher emotive
bonding then behavioral loyalty
‘And the stronger the brand equity,
the stronger the ROI,’ concludes Lee.
Brand Equity
MPA Awards
Awards
for
Best Magazine Covers
The Manhattan Ballroom at the Berjaya Times
Square played host to the publishers and editorial teams
of magazines in Malaysia.
The occasion, organized by the MPA and officiated
by YB Datuk Seri Zainuddin Maidin, Minister of
Information honored the Editors of magazines at an
award ceremony for their cover presentation and design.
There were 14 categories spread across Bahasa
Malaysia, Chinese and English titles. The entries
included titles catering to women, on business, lifestyle,
general, entertainment and niche as well. This seminal
event kicks-off a long term intent that will recognize the
creative efforts of editorial teams for various magazines.
no Company
1 Blu Inc Media
2 Life Publishers 3 The Edge Comm. 4 Measat Publication 5 Kumpulan Karangkraf 6 Catcha Sdn Bhd 7 Woman Publication 8 Utusan Karya Brand Equity | 41
Bronze
Silver
Gold
7
3
2
4
1
3
1
2
2
2
1
1
1
1
1
21
9
2
Total
12
5
4
4
3
2
1
1
32
The award recipients
Brand Equity | 42
List of award winners by category
CATEGORY: WOMAN
BAHASA
Glam
Sept
GOLD
Blu Inc Holdings (M) Sdn Bhd
Glam June SILVER Blu Inc Holdings (M) Sdn Bhd
Glam April SILVER Blu Inc Holdings (M) Sdn Bhd
EH! Jan BRONZE Blu Inc Holdings (M) Sdn Bhd
Intrend Sept BRONZE Measat Publications Sdn Bhd
Intrend Oct BRONZE Measat Publications Sdn Bhd
ENGLISH
Marie Claire Oct GOLD Blu Inc Holdings (M) Sdn Bhd
Female July BRONZE Blu Inc Holdings (M) Sdn Bhd
Seventeen Dec BRONZE Blu Inc Holdings (M) Sdn Bhd
Her World Dec BRONZE Blu Inc Holdings (M) Sdn Bhd
CHINESE
V mag Nov SILVER Measat Publications Sdn Bhd
V mag Dec SILVER Measat Publications Sdn Bhd
New Tide April BRONZE Life Publishers Sdn Bhd
New Tide Feb BRONZE Life Publishers Sdn Bhd
NuYou Sept BRONZE Blu Inc Holdings (M) Sdn Bhd
NuYou Oct BRONZE Blu Inc Holdings (M) Sdn Bhd
CATEGORY: BUSINESS
ENGLISH
Personal Money Feb BRONZE The Edge Communication Sdn Bhd
Personal Money Sept BRONZE The Edge Communication Sdn Bhd
CATEGORY: LIFESTYLE
BAHASA
Libur July SILVER Kumpulan Karangkraf Sdn Bhd
Impiana Jan BRONZE Kumpulan Karangkraf Sdn Bhd
CHINESE
New Icon For Him Apr/ May BRONZE Life Publishers Sdn Bhd
New Icon For Him Jun/July BRONZE
Life Publishers Sdn Bhd
ENGLISH
Men’s Health Sept SILVER Blu Inc Holdings (M) Sdn Bhd
Traverama May BRONZE Kumpulan Karangkraf Sdn Bhd
CATEGORY: GENERAL
ENGLISH
Off the Edge May SILVER The Edge Communication Sdn Bhd
Off the Edge Oct BRONZE The Edge Communication Sdn Bhd
Kzone Dec BRONZE Catcha Sdn Bhd
BAHASA no submisson given for this category
CHINESE one disqualified submisson
CATEGORY: ENTERTAINMENT
CHINESE
Tv Times Nov BRONZE Women Publication Sdn Bhd
BAHASA no awards given for this category
ENGLISH no awards given for this category
CATEGORY: NICHE
BAHASA
Al-Islam July BRONZE Utusan Karya Sdn Bhd
CHINESE
AutoWorld Oct SILVER Life Publishers Sdn Bhd
ENGLISH
EVO March SILVER Catcha Sdn Bhd
Torque Sept BRONZE Blu Inc Holdings (M) Sdn Bhd
Brand Equity | 43
Brand Equity
Brand Equity Awards
Downy Wins the Year’s Top Award
[
[
The inventory of awards did spring some
surprises with returning winners as well
What a night to remember;
because it delivered the unexpected
and of course, a platter of surprises.
Over 600 brand marketing
professionals operating in the Klang
Valley converged at the Holiday Villa
Subang to participate in a highly
anticipated event to applaud brands
that had a good run in the market
over the past two years.
It was also an opportune moment
for many top-notch professionals
from the advertising, media and
marketing fraternity to meet,
exchange pleasantries and expand
their network.
The inventory of awards did
spring some surprises with returning
winners as well. Amidst all, P&G’s
Downy stood apart from the
ensemble. The brand took the year’s
top award and was duly declared as
the ‘Fire Brand of the Year’.
Time and again we bear witness
to the fact that the scramble for
competitive advantage is no bed of
roses. Success does not guarantee
share protection in the long run.
And complacency has no place in
the brand marketing domain.
Great brands are always alert,
innovative and dynamic. Now that’s
food for thought!
Brand Equity | 44
Brand Equity | 45
Brand Equity | 46
Brand Equity | 47
BRAND VISIBLITY AWARDS
1. MAXIS
6. PANTENE
2. MOBILE TOUCHETEK
7. DIGI
3. SUNSILK
8. POWER ROOT
4. CELCOM
9. PETRONAS
5. OLAY
10. REJOICE
Cat: CONSUMER DIGITAL IMAGING
Products: Mobile Phone
Smart Phone
GOLD NOKIA
SILVER SAMSUNG
BRONZE MOTOROLA
FAST MOVING CONSUMER GOODS AWARDS
TECHNOLGY CONSUMER GOODS AWARDS
Cat: CONSUMER ELECTRONIC- AUDIO
Products: Audio Disc Player
Audio Home System
Digital Portable Media Player
Radio Recorder Player
GOLD SONY
SILVER PHILIPS
BRONZE PANASONIC
Cat: BELOW 50 MILLION
GOLD UJALA - FABRIC TREATMENT
SILVER MENTOS - GUM
BRONZE REJOICE - HAIR CONDITIONER
Cat: 51 - 100 MILLION
GOLD DOWNY - FABRIC SOFTENER
SILVER COLGATE - TOOTHBRUSH
BRONZE FRESHLOOK - CONTACT LENS
Cat: CONSUMER ELECTRONIC- VISUAL
Cat: 101 - 150 MILLION
Products: Colour Television
Visual Disc Player
Camcoder
GOLD SONY
SILVER PANASONIC
BRONZE PHILIPS
GOLD SILVER
BRONZE
Cat: MAJOR DOMESTIC APPLIANCES
Products: Washing Machine
Refridgerator
Consumer Air Conditioner
Microwave Oven
GOLD PANASONIC
SILVER LG
BRONZE SAMSUNG
Cat: CONSUMER COMPUTING
Products: Desktop PC
Laptop PC
Tablet PC
GOLD ACER
SILVER HP/ COMPAQ
BRONZE TOSHIBA
Cat: CONSUMER PRINTING
ALI CAFE’ - COFFEE MIX
PER’L KACIP FATIMA - COFFEE MIX
YAKULT - YOGURT
Cat: 151 - 200 MILLION
GOLD MILO - LIQUID MILK
SILVER TWISTIES - SNACKS
BRONZE FERN LEAF - LIQUID MILK
Cat: 201 - 250 MILLION
GOLD MI SEDAAP - INSTANT NOODLES
SILVER ANLENE - FCMP & LFNF
BRONZE MAMEE - INSTANT NOODLES
Cat: 251 - 300 MILLION
GOLD HEAD & SHOULDERS - SHAMPOO
SILVER CLEAR - SHAMPOO
BRONZE RIDSECT - INSECTICIDES
Cat: 301 - 500 MILLION
GOLD MARIGOLD - SCM
SILVER MAMYPOKO - BABY DIAPERS
BRONZE AVENA - COOKING OIL
Products: Injet Printer
Laserjet Printer
All-In-One Printer
GOLD CANON
SILVER HP
BRONZE EPSON
Cat: ABOVE 500 MILLION
Cat: CONSUMER DIGITAL IMAGING
FIRE BRAND AWARD
Products: Digital Still Camera
Digital SLR Camera
GOLD SONY
SILVER CANON
BRONZE OLYMPUS
GOLD DUTCH LADY - INFANT MILK
SILVER BIO ZIP - DETERGENT
BRONZE TOP - DETERGENT
DOWNY
Brand Equity | 48