COVER final - brandequitymagazine.com
Transcription
COVER final - brandequitymagazine.com
import your database with mobile numbers construct the message and click ‘send’ The system is flexible and comes with options You may choose to communicate with female customers only make changes to the database at your time compose messages and change it anytime send messages at a predetermined date and time Happy birthday! But the topofmind issue is perhaps cost given that some of these services and their possibilities may seem overwhelming to the uninitiated A basic module from MNC requires an investment of RM and a monthly fee of RM The package comes with free SMS messages Anything more and the meter chugs along at to cents per SMS ‘Numerous retailers use our system as well Their data is maintained on excel format The information can be imported into our module and the usual is done to send messages’ explained Jasmine And of late the increasing interest in interactive solutions has MNC spoton in the arena ‘TV commercials aid brand exposure while interactive is more tactical and can be used to make TVCs work harder and deliver’ said Jasmine For instance a graphical embedded in a TVC may encourage viewers to SMS to a number (or short code) for a mini recipe or vote for their favorite artist or receive health tips and so on The possibilities seem limitless but creativity is called for to take advantage of opportunities 24 ‘One of our tools ‘ GO!ITV’ helped viewers to chat on TV during Euro ’ said Jasmine Times are certainly going to change and brand builders need to be up to speed about them Jasmine explained that MMS or multimedia messaging services is the area that is set to explode ‘SMS accounts for of business generated within the mobile marketing environment By the end of the year we expect this to be : in favor of MMS And with MMS we are already talking about realtime classified ads picture catalogues and more’ said Jasmine Perhaps its about time brand builders asked themselves if they are up to speed on the limitless possibilities offered by the mobile marketing environment Jasmine can be contacted at jasmine@mnccommy BRAND BRANDEQUITY BE pagination 24 5/17/05, 2:20 PM A Sampling of Mobile Marketing Possibilities by Industry (Supplied by MNC Wireless) Financial Services * Consumers can access their bank accounts anywhere anytime * Transfer funds between accounts request for cheque book status * Get daily account notifications balances and recent transactions * Cross sell products by offering text quotes to customers * Keep customers informed on progress of mortgage applications * Inform customers of monthly or annual premium amounts * Drive customers to their web site * Keep customers energised with regular text to win competitions Car Dealers / Manufacturers / Service Centres * * * * * * * Car ready for collection Service reminders Courtesy/thank you messages Questionnaire followup Sales lead generation Part in stock Tyres are probably due to be changed now stating what they are looking for their budget and if and when a property corresponding to their requirements comes onto the market they will automatically be informed via SMS giving brief details of the property * The system will automatically revert with lots of info about the house that’s available * Send customised SMS and images to your targeted buyers right away! Recruitment Agencies * Within a few minutes of a job being made available a text to top candidates inviting them to apply can be sent * Send new Job alerts * Database cleansing eg ‘Are you still looking for work? To receive instant text alerts for future positions reply ‘job’ to this text and we’ll keep you informed of all the latest opportunities’ * Day to day client contact * Drive applicants to web site to apply for positions online Real Estate / Property Agencies Hospitals * Buyers can SMS to obtain additional information anytime * Agencies can dedicate precious time to a genuinely interested public * Alert services are ideal for clients looking for investment properties * Potential buyers will be able to view property in a relatively short period of time by simply * Remind patients about routine outpatient and scan appointments * Sexual health clinics allowing patients to get advice without having to talk facetoface about sensitive issues including abortion contraceptives and sexually transmitted infections * Hospital can use SMS to protect its staff members If they are on house calls and they don’t respond to an automatically generated text message within a certain amount of time an alarm is raised * Doctor can send daily SMS update especially for intensive care unit cases where patient’s designated contact relative receive information about patient’s condition how he or she was responding to treatment and what tests were scheduled later in the day if any * Patients can schedule appointments and reserve out patient service in advance through SMS They can then visit the doctor at the reserved date and time * Doctors can cut down waiting times for medical results by text messaging to communicate with patients Leisure Sector * Text alerts Send text bulletins and offers to existing customers * Text clubs Create a text club that offers members special offers bulletins and unique benefits * Text to win competitions Enhance response to your campaigns by offering text to win prizes BRAND DEQUITY BE pagination 25 5/17/05, 2:27 PM 25 GO!SMS(tm) A DIY SMS marketing tool that includes * SMS Broadcast for sending mass SMS messages anytime or in a recurrent manner with personalised messages or brand your SMS messages by replacing the short code with your brand name * SMS Mailbox to receive and automatically manage all information sent by your customers The info can be personal details contest entries * SMS IOD to provide customers with information / via an informationondemand service such as movie schedules The MNC Repertoire GO!ITV(tm) A cost effective measurable and targeted SMS marketing tool that enables viewers * Post their opinions on air via SMS * Vote their favorite music videos * Support their favorite game shows * Participate in contests * Take part in fully animated interactive games GO!CPA(tm) A SMS gateway solution that allows aspiring content providers to start lucrative premium SMS businesses without the need to manage the complexities of connecting to the mobile network operators’ billing infrastructure GO!CONTENT SUITE(tm) An ASPbased (application service provider) content management platform that enables content developers without technology knowhow to embark on a mobile content and services business 26 BRAND BRANDEQUITY BE pagination 26 5/17/05, 2:27 PM By Seelen Sakran In fact this marketing services company aligned with advertising powerhouse Leo Burnett Worldwide recently established its AsiaPacific office in down town KL to initiate its combined Charles Cadell Multidisciplinary ROI-centric Communications ContemporaryCommunications THE HOLY GRAIL THESE DAYS in marketing communications is the ability to provide onestop marketing solutions for the clients business problem that maximises business results and return on investment Chicago headquartered Arc Worldwide’s (Arc) believes it has the answer A r c Wo r l d w i d e r o l l s o u t a s l e w o f communication disciplines to deliver potent results for aspiring brands marcom (marketing communications) specialist services offering These are event and promotional management direct marketing interactive marketing and Shopper Marketing all under one roof Arc’s AsiaPacific President Charles Cadell who is also Leo Burnett Malaysia’s CEO feels that the Arc model is the solution ‘Separated or siloed specialist marketing companies are the current model but this model is broken Clients are looking for integrated marketing solutions that utilise all the required contact points and this is best served by a company that has all the specialists working under one roof against a central objective and a central idea’ Cadell went on to point out that Arc is the only company in the world to offer such specialised services together ‘Specialisation should not mean separation but unfortunately for most Clients it does Fundamentally successful marketing is a result of great ideas brilliantly executed through the range of required contact points Having this centrally managed and controlled ensures a maximisation and efficiency in Client budgets as well as a greater control over the end product Perhaps most important is the BRAND DEQUITY BE pagination 27 5/18/05, 9:40 AM 27 Australia Malaysia Philippines and Taiwan how we should be talking to our customers’ Cadell believes there is immense opportunity for Clients to maximise the collection of their marketing spends ‘I find it strange that while Asia Pacific boasts the best media platforms and emergent technology available we so rarely ever see world class integrated campaigns come from Asia instead it is the US and Europe that are lauded The big ideas here seem to be so often one dimensional for the majority of marketers such as TV print and maybe a promotion and some interactive But few are really using all contacts points to make the big ideas come alive and taking it all the way down to the store level’ Cadell is especially excited in the Shopper Marketing discipline a new concept to many Asian markets but a discipline that is of vast focus in the US and England Cadell explains that with Shopper Marketing Arc is able to help marketers turn shoppers into profitable brand buyers ‘A truly integrated approach in engaging customers across all contact points is where the opportunity lies and we feel Arc is able to accomplish this The changes that are going to affect us all as marketers in the next few years are going to be tremendous old rules will cease to apply We all need to buckle up for the ride ahead’ examples and case studies of best practice ‘But we also rely on them’ he adds ‘In the marketing services field the best ideas can be globally shared and quickly reapplied and we ensure that each month we track and share the world’s best examples in each of the disciplines across all our offices’ Arc is no new kid on the block however It has been formed by taking global specialist entities in DM Promotions Shopper and Interactive and merging them together They boast over Clients across Asia Pacific with centres of excellence in Singapore 28 Cadell cites some examples of the changing world ‘We now know that if given a choice teenagers would rather have a mobile phone than a television We know that over of all SMS marketing messages are read and a reponse rate of approximately is common We know that some internet sites and brands are more trusted by their customers than their own family (Google / Amazon / ebay) and we know that approximately of all purchase decisions in the FMCG category are made in store We know a lot the question is what are we as marketers doing about it since the implications are enormous for ‘The potential is enormous’ he says ‘Marketers in the FMCG category on average spend about of their total marketing budget in the trade This may be on promotions discounting or simply buying facings Yet they have virtually no idea how this money is working for them Take this against the say they may spend on Television advertising that is often researched and measured to death and it makes no sense There is an art and a science to understanding the customer in the store environment and ensuring all elements of the mix are syncronised to get our product in the basket versus our competitors This is what Arc offers through our Shopper Marketing specialists’ Why? Cadell further explains ‘The research is staggering in this field Product advertising plays a very very small role in the actual purchase decision when that customer gets in front of that shelf There is a very discrete path to purchase that a consumer treads in each of the different retail environments and communication must be adapted at each point of the way This requires good understanding and insights of the shopper the category they are buying in and the retail store type’ Cadell believes that Malaysia is still relatively young with only about BRAND BRANDEQUITY BE pagination 28 5/17/05, 2:27 PM of trade is done via the modern trade ‘However if you look at the retail explosion in Shopping centres especially in Kuala Lumpur there is much to be done Shopper marketing is not just about working with products to promote in store it is also about working with retailers to improve store layout and design to maximise total sales’ “There is still much to be done in Malaysia The shopper ‘experience’ which is so vital for sale maximisation is poorly understood as a discipline We work with Carrefour WalMart Tescos and Sainsburys on a global basis as well as doing store design for the likes of McDonalds Even while they are the largest in their fields they also have much to learn’ ‘I find Shopper Marketing the most interesting To garner the insights we conduct our own independent research using in store cameras and home interviews of shoppers pre and post shop and it is fascinating The stark differences in how we all shop dependent on age sex and outlook is deeply human and for most people the choices and actions are hidden deep within the subconscious It is more a study of psychology than marketing’ he notes Incidentally Cadell has been working with Leo Burnett for the last years covering various markets and positions including group brand director brand management director in Bangkok and Hong Kong His clients included both multinational and local companies across the Asia Pacific region such as McDonald’s Procter & Gamble and Kellogg’s Cadell started his career in London in where he has worked with Kraft Pepsi and Mercedes Benz Currently Arc has more than employees in offices in countries In Malaysia its smart partnership with Leo Burnett has culminated in clients such as Malaysia Airlines Petronas McDonald’s YTL Corporation Procter & Gamble and Bumiputra Commerce Bank Virgin Credit Card Arc in Australia delivers for Virgin’s new credit card with a bang OBJECTIVE To generate accounts within months at $ Cost Per Account The singleminded focus was to acquire new accounts at a minimal cost per acquisition STRATEGY It was crucial to monitor and adjust all the communication mediums in order to maximise reach and efficiency to meet the set objectives BRAND DEQUITY BE pagination 29 5/17/05, 2:27 PM 29 This involved: * Testing all elements of communication prior to roll out * Monitoring all activities to ensure that the cost per account did not exceed $ * Adjusting media and channel scheduling targeting and creative work on a weekly basis as the campaign unfolded WORK An integrated campaign was launched using DM television press & magazine inserts and radio Each piece of communication carried a strong and compelling call to action Work maintained Virgin’s brand values (irreverent humour) while ensuring a strong sell The concept employed took tongueincheek approach to elicit the interest of the target audience RESULTS a) Business The launch of the Virgin Credit Card succeeded across all media b) Industry * John Caples International First Prize * Echo Direct Marketing Diamond Award Campaign of the Year * Echo Direct Marketing Gold Award * ADMA DM Grand Prix * / Australian DM Awards * Media Asia Brand Effectiveness Best Idea * Cannes Gold Lions (x) Direct Marketing * Won Report Most Awarded Global DM Campaign * TV beat objectives by * Press by * Mail results by Campaign targets were exceeded by with over cards issued in the first months To paraphrase the Virgin Money Managing Director ‘another amazing milestone customers; the fastest rate of growth ever for a new card in Australia; the most successful month period for any card ever with two months to spare and no previous customer base!’ 30 BRAND BRANDEQUITY BE pagination 30 5/17/05, 2:27 PM By Benjamin J Thompson BrandLaw THIS ARTICLE WHICH WILL BE the final article on copyright we will continue examining the boundaries of protection afforded by Copyright law to better understand how copyright can be used to protect your brand identifiers or product features How much of a person’s work can you imitate or adapt without actually infringing their copyright? To further understand let’s look at just a few of the exceptions under the Copyright Act in more detail Presenting the ninth in a series for defending brand value right from creation & Copyright Consequences Exc eptio n “fair dealing for the purposes of nonprofit research private study criticism review or the reporting of current events SUBJECT to the condition that if such use is public it is accompanied by an acknowledgement of the title of the work and its authorship What is ‘fair’ dealing? As can be imagined this is a very subjective term The factors which are often taken into account in deciding if an action falls into the ambit of the exception are: The purpose and character of the dealing eg was it used for nonprofit research or one of the other purposes set out in the Copyright Act? 32 BRAND BR AND BRANDEQUITY BRA DEQUITY BE pagination 32 5/17/05, 2:27 PM * Whether it is of a commercial nature or for nonprofit educational use eg was it used by a trainer to avoid having to make his own materials for a seminar or used by a study group at a university for one of their study sessions? * The nature of the copyright work eg literary work artistic work musical work etc; * The amount and substantiality of the parts taken eg were many quotations taken or was it just a single but definitive part of the work which was taken? * The effect of the dealing on the work eg did it impact the value of the work or the ability of the copyright owner to profitably deal with it subsequently; and * The availability of the work in the market eg was it something widely available or a work that was out of circulation? Similarly other terms such as “private study” have been interpreted according to the circumstances of each case One other thing must be borne in mind An exception does not arise just because a particular industry practice or custom has for many years ignored copyright That means even if you think that no one in your industry has been sued for copyright infringement despite a particular method of dealing with the works of third parties it does not mean that their use is excusable or accepted ‘fair dealing’ It could be copyright infringement and if you are unfortunate enough to be sued for unauthorised use in this manner it will not matter that ‘everyone else is doing it’ Exception “the doing of any of the acts by way of parody pastiche or caricature” ‘Parody’ is defined in the dictionary as ‘a composition in which the characteristic turns of thought and phrase of an author are mimicked and made to appear ridiculous especially by applying them to ludicrously inappropriate subjects’ Obviously since a parody is based on or derived from an existing work to come within the scope of the exception the new work must indeed fulfil the quality of a parody If not it will not be able to claim the exception and the work will be an infringement Exception “the reproduction and distribution of copies of any artistic work permanently situated in a place where it can be viewed by the public” If you recall from the previous articles artistic works include graphic works photographs sculptures buildings and works of artistic craftsmanship This exception therefore allows any one to say take photographs of the Twin Towers or the Mona Lisa painting (assuming it is permanently situated in a place where it can be viewed by the public) and sell those photographs without reference to the owners of the copyright So we can see from the above that there are specific areas into which a person’s copyright will not extend As an owner of a brand identifier protected by copyright it is important for you to know which exceptions apply to your own case If you have a situation and would like to know whether you fall into any of the exceptions under the Copyright Act it is a good idea to get the advice of a copyright lawyer He will be able to provide you with definite advice after performing research on the way Courts have interpreted the application of the exceptions in situations such as yours We shall commence discussion on a new topic on how to protect your brand identifiers or product features in our next instalment EDITOR’S NOTE: We apologize for the error in last issue’s article which resulted in the article being wrongly headed “Protecting Industrial Designs” The actual title which appeared correctly in the index was “Copyright & Consequences” We apologize to readers for the confusion it may have caused NOTE: This article is merely intended to create awareness of Intellectual Property rights It should not be relied on without the benefit of specific advice from an Intellectual Property practitioner Logos and graphics displayed are for illustrative and educational purposes only and are the Intellectual Property of their respective owners Ben Thompson is a Registered Trademark Patents & Industrial Designs Agent Feedback is welcome at brandlaw@thompsoncommy Readers who would like the column to discuss particular Brandlaw issues are welcome to write in BRAND DEQUITY BE pagination 33 5/17/05, 2:27 PM 33 Marketers on numerous occasions has been corrected once the results are available and the programs’ success has been measured By Salim Khubchandani WHEN ASKED TO COMMENT ON the subject we Direct Marketers invariably end up talking about the fact that it is ‘measurable’ This is indeed one important characteristic of Direct which also makes it such an interesting subject and a science For soon after the communication has gone out we wait with bated breath to receive the responses and evaluate the success of the program dissect and analyze the results to try and improvise for subsequent programs Marketers on the other hand often comment on it being ‘too expensive’ This perception of This article tries to look at some of the various parameters and metrics for measurement of Direct Marketing programs and highlights the importance of such parameters for different programs can be measured differently for success depending on the objectives Depending on the objective of the program there can be various parameters towards measuring its success More importantly unfortunately while it is not often practiced it helps greatly to outline action standards or program measurement metrics before commencement of the exercise This helps to evaluate the degree of success of the program as against methods that may have been practiced before the program was executed For example in the case of a Bto B program wherein the sales force may have been making cold calls as a part of the sales process the role or objective of the program may be to actually support sales in their job and generate qualified leads for them In such a case it would help immensely to do a calculation of the current cost per lead through the cold calling process This does require the organization to do a fair bit of number crunching by taking into account average time spent before a lead is generated and costing out the time However the effort and time taken does pay off in the long run Once we have the ‘cost per lead’ generated through the cold calling process when embarking on a Direct approach we already have a benchmark set which needs to be bettered in order to claim success for the Direct Marketing exercise And metrics agreed as part of the brief even helps the agency in its strategic recommendations with regard to the media vehicles offer etc In evaluating the strategy and before embarking on the program one obviously then takes the approach which is most efficient BRAND DEQUITY BE pagination 35 RelationshipMarketing The Proof of the Pudding 5/17/05, 2:27 PM 35 with regards to the ‘cost per lead’ metric Where the program uses various media vehicles or offers to achieve what it had set out to do and in such cases we can test the various messages media or offers and determine what works better through the measurement metrics Just as we have discussed cost per lead as a possible parameter above there are several other metrics for measuring the success of Direct Marketing programs Cost per conversion: Often the role of the Direct program could extend towards conversion In such cases it helps to take into account the cost towards the offer fulfillment costs etc to ultimately arrive at the cost for each conversion Once we have the cost for each conversion comparing this or calculating what percentage it forms of the cost or contribution of the product we can actually see for ourselves whether it makes the program worthwhile and whether the product would be able to support the program Cost per Member and Lifetime Value: The latter part of the Relationship Marketing Cycle deals with retention and development of acquired customers Loyalty programs are one of the more commonly used tools towards retention whilst there may also be other methods at hand As discussed in one of the earlier articles loyalty is not a ‘one night stand’ and needs to be looked at from a more long term prospective In such a case obviously the investments required may be substantial and it is best to ascertain them even before embarking on the loyalty 36 journey We therefore evaluate the total cost of the program over a period of time and also the cost per customer retained or cost per member This could even dictate the strategy to a great extent whereby the numbers may go to indicate segmentation of customers as heavy medium or light with different levels of investments and approaches for the three different types of customers In fact in case of a segment of retained customers being seen as non profitable over a period of time exit or ‘leavethemalone’ strategies may be charted out In evaluating whether it is worth embarking on a retention program the ‘cost per member’ metric may not be considered in isolation An additional important factor to be taken into account is the customer’s ‘Lifetime Value’ To arrive at the lifetime value of the customer we take into account estimated value of consumption over a reasonable period of time based on realistic consumption patterns Furthermore should there be opportunities to crosssell across a basket of products from the same brand or manufacturer it may be reasonable to even take into account additional consumption values out of the crosssell to determine the Lifetime Value Comparing the cost per member metric against lifetime value gives a much better idea as an indicator whether the retention program appears feasible or not As emphasized earlier the measurement criteria is largely dictated by the objectives of the program and the role that Direct is to achieve Importantly the results must be measured in the right context to help ascertain whether the activity has delivered For example cost per member seen in isolation and in absolute terms may appear high but needs to be measured in comparison to the lifetime value before a judgement is made whether it appears high or low The above are only some of the more standard parameters and there could be numerous other metrics towards measuring the success of programs It is indeed most appropriate if these parameters and their action standards can be agreed upon at the commencement of the program It must be borne in mind that there are several intangibles that a Direct Marketing program could impart through a communication’s strategy and the various contact points Having the action standards however sets a finite goal post as ultimately in Direct we often proclaim that the proof of the pudding lies in its eating Salim Khubchandani is a Relationship Marketing practitioner with almost two decades of experience in the field both with clients as well as agencies Currently Salim runs his own outfit and is contactable at salim@myontargetcom or BRAND BRANDEQUITY BE pagination 36 5/17/05, 2:27 PM Brand Ambassador It’s All In The Stars ‘Branding is after all, a mind game. A brand, whether it is a product or country brand is a collection of perceptions. This is why he feels brand ambassadors in general are worth investing in’ By Seelen Sakran JUST FLIP THE NEWSPAPERS Chances are you will get to see local actresses like Joanna Bassey or singers like Siti Nurhaliza on its pages in various sensational poses Not the fact that their pretty faces splashed across the pages raises an eyebrow or two but the fact that they have become the latest icons or buzz themes to products as brand ambassadors 38 So what is the fuss about this new rising trend among our local or international product manufacturers on brand ambassadors? In actuality the fuss is not about their faces per se but rather if the huge amounts of ringgit spent on them is worth the return on investment for these companies? Or even if it is worth the investment does the brand ambassador’s face make any difference or creates value for the product such that a consumer wants to purchase the product without questions asked? Or does a star’s appearing on behalf of more than one product have a negative effect on the products itself? Or if a star falls into scandal does it affect the product brand itself? Brand Equity magazine takes a look at the issues at hand Incidentally in trying to find out how much does it cost to sponsor a brand nobody is telling but it is believed stars like Nurhaliza can easily command a cool RM million for becoming a brand ambassador of a particular product What is the then the contract duration of a brand ambassador for a particular product? It’s usually for two years In any case ‘before one addresses the issues at hand about brand ambassadors one has to look at the concept of branding itself and how it is a major force in making or breaking a product’ says Hong Kongbased Victor Jeffery the chief executive officer (CEO) of Superbrands International a leading independent arbiter on branding in an interview with Brand Equity magazine He could be right because multi national corporations place so much emphasis on brand management Some countries BRAND BRANDEQUITY BE pagination 38 5/17/05, 2:27 PM even go to the extent of establishing brand councils to oversee the promotion of products of a country ‘Branding is after all a mind game A brand whether it is a product or country brand is a collection of perceptions This is why he feels brand ambassadors in general are worth investing in’ notes Jeffery Perhaps also as to why Bharat Avalani communication channel manager with Unilever Malaysia Holdings Sdn Bhd the Anglo ‘Stars have always endorsed Lux Credibility is important Both the brand and the brand ambassador should complement each other and not dilute the image of each other’ adds Avalani So far Unilever Malaysia has had its Lux soap well represented by many local stars Over the years local singercumactress like Amy Mastura to Erra Fazira have been chosen to be the ambassador for Lux products of their pocket’s reach in the first place’ To which Alex Lim creative director at Leo Burnett Advertising feels likewise ‘It all depends how a particular brand uses the ambassador The ambassador should encapsulate the particular brand and create value for it If done well the brand ambassador will work wonders for the brand A consumer is no fool He will know when a brand ambassador has failed a product’ says Lim of Leo Burnett But having said this Superbrand’s Jeffery feels sometimes there is no such thing as a perfect fit all the time for a particular product He cites the example of Jackie Chan ‘Does he represent Hong Kong itself? It’s just that he is popular action hero globally and he has been chosen to represent his country That’s all!’ Dutch headquartered company that is all too familiar with the concept of branding views brand ambassadors as crucial in brand building On the question of the right candidate as an ambassador for a product Avalani adds ‘it is important that the brand ambassador is relevant to the (particular) brand There should be a good connection between the brand ambassador the brand essence and (ultimately and importantly) the consumer itself I am also of the belief that the brand ambassador should be uniquely associated with the brand eg Tiger Woods & Accenture a global management consulting and technology services company’ Kenneth Lim creative director with CD Advertising agrees with Avalani by saying ‘the fit must be right A good example is Maxis Communications Bhd’s Hotlink prepaid service with the singers of Astro’s Akademi Fantasia You have young radiant singers who are mobile hip and they quite nicely promote a mobile service which is popular with the young these days’ Lim opines a bad case of a brand ambassador would be with Nurhaliza promoting Samsung liquid crystal display computer monitors ‘Her fans are varied some are even staying in non urban areas or small towns What difference would it make to them if Nurhaliza epitomises the product the product might be out Jeffery does have a point Consider Shell Malaysia’s brand ambassadors an oddly row of ambassadors consisting of TV personality Asha Gill and Datuk Michael Chong the Malaysian Chinese Association’s Public Complaints’ Bureau chief On the issue of a brand ambassador’s ‘downfall’ having an effect on the product Leo Burnet’s Lim explains our companies cannot blindly follow like what is happening in Hollywood ‘If a company happens to choose a wrong ambassador and if something goes wrong with his or her personal life the brand goes down the drain as well’ Case in point: If Michael Jackson were to endorse a product what would become of that product now? Food for thought! Lim adds a good example of a company that chooses the right BRAND DEQUITY BE pagination 39 5/17/05, 2:27 PM 39 ‘ Lim adds a good example of a company that chooses the right people is Nike Nike which selects only top notch sportsmen and sportswomen ‘ Similarly TAG Heuer watches’ ambassadors include Tiger Woods Formula One drivers Kimi Raikkonnen and David Coulthard an assortment of Bollywood movie stars and Malaysia’s perky itgirl Asha Gill who have propelled the brand and lent it an aesthetic ruggedness and flair to its name celebrities are chosen for their commitment to excellence and a willingness to surpass themselves On the issue of a brand ambassador representing more than one noncompeting brand while the general feedback is that it does not really matter Unilever’s Avalani has this to say: ‘It is quite common to see brand ambassadors in Malaysia endorsing many brands across a wide category This creates confusion in the mind of the consumers As a result it also creates wastage of money to the company’ In the final analysis as Superbrand’s Jeffery says there is a bright future for brand ambassadors with consumers becoming more discerning these days As Tag Heuer’s regional financial controller Woo Mun Hoo said the In fact it may even go onestep further Like at USbased people is Nike which selects only top notch sportsmen and sportswomen 40 Honeywell a manufacturer of civil and military avionics and other aerospace products integrator and also service provider which states in its annual report that every employee is a brand ambassador in itself At Honeywell generations of Honeywell employees have built its powerful brands with their hard work spirit of innovation passion for quality and commitment to customers Perhaps as to why USbased management guru Dr Janelle Barlow says with sufficient training human resource departments can develop staff as a strategic element for branding and business success and become a company’s best branding tool One thing is for certain This move would certainly save a company a couple of million ringgit! BRAND BRANDEQUITY BE pagination 40 5/17/05, 2:27 PM CustomerLoyalty AUTHOR’S NOTE: THIS PIECE IS the first in a series of articles that takes a critical look at some of the commonly held beliefs about customer loyalty which are often based on conflicting notions and inconsistent reasoning The goal is to gain a clear understanding of the why’s and how’s of the evolution of these myths and to bring out the realities behind them By Matt Hasan PhD Truly Loyal Customers do not Have to be Bought! Myth: Companies should do the most for their most loyal customers Many companies in a wide variety of industries have what are known as ‘loyalty programs’ This practice which is based on rewarding frequent buyers started with the airline industry almost two decades ago was then adopted by other members of the travel industry such as hotels and rental cars has now spread to industries ranging from telecommunications to retail trade 42 Although each industry’s program has its nuances the basic structure is common to all of them: award miles or points to customers based on their ‘spend’ Almost all of them allow customers to earn rewards at a higher rate by achieving higher levels of usage such as silver and gold or premier and elite etc The foundation for these programs is the myth that providers should do the most for their most loyal customers The first issue that needs clarification in this myth is what is meant by customer loyalty since the term is used quite loosely and takes on a wide range of meanings As used in this context loyalty means that a customer continues to do business with a company The second issue that needs to be looked at is that the myth seems to be implying that customers have to be rewarded at increasing rates to keep them loyal to the company This contradicts the meaning of the word loyalty which is an unconditional and unwavering attachment to BRAND BRANDEQUITY BE pagination 42 5/17/05, 2:28 PM establish winwin relationships with each customer based on an understanding of their internal loyalty intensity In this approach the most loyal customers are the ones with the highest inherent propensity to stay with their current provider Author Bio Dr Matt Hasan is Managing Principal at Sigillum Corporation a New Jersey USA based management and technology consulting firm focusing on customer centric enterprise transformation Prior to Sigillum he held various marketing and CRM positions at Deloitte Consulting AT Kearney IBM and AT&T For more information on this and related topics he can be reached via email: m ha sa n @sigillu mco r po r a tio n co m something In plain language if it has to be bought it is not loyalty! Some might say that the issue is one of semantics There is some merit in that When providers make statements like ‘we value and reward our loyal customers’ they are trying to reinforce a positive trait and elicit desirable action from the customer On the face of it this would be fine if it was simply an issue of semantics with no repercussions for making effective business decisions Unfortunately that is not the case Companies are allocating substantial resources to reward ‘loyalty’ in customers which is actually incenting the opposite behavior Customers who stay for rewards also leave for rewards Only the ante keeps rising! frequent flyer program was just another desirable product attribute And as every other airline started their programs the initial differentiating value disappeared and the quest for ‘loyal’ customers became a contest based on the reward structure eg number of miles required to redeem awards types of awards available number and type of program partners etc When customers’ demand for redeeming awards reached a point where the airlines could not meet them restrictions such as blackout dates and designated flights with award seats were imposed To wit the chances that a program member will get an award seat on a flight to a desirable destination at a convenient time is very slim This is tantamount to giving with one hand and taking away with the other To gain an understanding of the seriousness of the above mentioned phenomenon one needs only to look at the state of the oldest of the ‘loyalty programs’ ie those offered by the airlines When the first frequent flyer program was introduced it was a probably a source of differentiated value for the passengers of that airline It may have incented some customers to make that airline their carrier of choice In fact most of these programs are dormant financial time bombs; if every program member demanded everything they are promised by the program at the same time these programs would be completely overwhelmed and may have no other option but to shut down The essence of all of this is that the ‘loyalty programs’ have no relation to customer loyalty and are neither good for customers nor the providers This however had nothing to do with the loyalty of customers The In order to have true loyalty programs companies need to Research including mine has shown that this internal loyalty intensity can be measured via the application of appropriate statistical and neural methods on carefully defined and compiled customer attribute data This propensity is based on their internal attributes consisting of psychoeconomicdemographic characteristics for consumers and culturetraditionhistory structure characteristics for businesses The complex inter relationships between these characteristics determine the implicit cost of switching for any given customer The higher the implicit switching cost the more likely it is that that customer will continue to do business with the current provider From this it follows that customers who are intrinsically most loyal need the least amount of rewards or incentives from their provider So the reality is that companies have to do the least for their most loyal customers! In order for ‘loyalty programs’ to be truly effective companies should determine the inherent loyalty propensity of each customer and allocate rewards to them on the basis of their ‘true worth’ which is calculated from their loyalty intensity score lifetime revenue stream and all direct and indirect costs incurred in serving them BRAND DEQUITY BE pagination 43 5/17/05, 2:28 PM 43 A research MarketResearch agency with extended arms offers a potent tool to track brand equity Steve Murphy Tracking Brand Performance By R Venkateswaran THE KEY DRIVER OF THIS PIECE has everything to do with brand owner behavior of the weighty type; in particular the types that are tracking the performance of their brand repertoire 44 The tracking concerns deliverables that goes beyond the ubiquitous bottomline Rather it’s about the value that the brand has earned in the customer’s mind Enter Synovate a research firm that operates on the maxim ‘Research Reinvented’ But there’s this aboveboard logic to the name Synovate; and it has a lot to do with two key drivers against which its repertoire of research services are delivered to clients Synergy and Innovation BRAND BRANDEQUITY BE pagination 44 5/17/05, 2:28 PM Brand Equity met up with Steve Murphy the managing director of Synovate Malaysia who articulated his views on ‘BrandVision’ a tool that measures brand value and performance over time companies to determine if the intended message has reached the right audience in addition to its general impact The last of the four paths is ongoing tracking which According to Steve typically respondents are interviewed per week which aggregates to per year Since the data is primarily quantitative the output provides macro as well as micro level details Generally the sample is T h e Mom en t u m En gin e identifies the customers with the most potential to increase their spending. And shows you how to reach them. B r a n d Vision The core of BrandVision includes a fully integrated brand and advertising research program which provides comprehensive and actionable insights tailored to the market and the brand The tool traverses four paths of measurement during a given phase and these are implemented in ways that work best for each brand building organization The paths include brand assessment which measures the strength of the brand’s equity and customer relationships using a variety of proven techniques image analysis which is the consumer’s perception of a particular brand and competitive brands and communications evaluation which evaluates exposure memorability and clarity of advertising and non advertising market communications thus helping incorporates key inmarket performance indicators of brand awareness usage and satisfaction When all of these are done over a period of time the data collected will deliver a proven result on the impact of the brand in the consumer’s minds Putting this continuous tracking mechanism in place enables the company to have a pulse on the market at the same time getting indepth feedback from the advertising arena on all various media It is designed to indicate what works and what doesn’t Methodology When a BrandVision project is commissioned all key areas such as brand awareness awareness of TV advertising association of image with the brand are factored in a questionnaire that is developed in partnership with a client relatively broad but usually reflective of users / potential users of the relevant sector A comparison is done on a month tomonth basis against the same profile of people but not the same respondents This according to Steve Murphy gives a more accurate picture of the brand and sector dynamics over specific timeframes which would not be the case if members of the same panel were interviewed throughout the year Tools of the trade The Momentum Engine is an important part of BrandVision enabling brands to identify high potential customers as well as coax them to purchase This tool adds a powerful dimension to brand equity research which is the ‘potential to purchase’ The success of the Momentum Engine stems from the fact that it BRAND DEQUITY BE pagination 45 5/17/05, 2:28 PM 45 is grounded in empirical studies of decision making patterns and is effective across all cultures and countries It’s taken a lot of resources brand where it is today. And where exactly is that to position your By providing companies a roadmap to harness customers’ potential it helps to translate research into an effective sales strategy Impact of BrandVision While the results of the research does not always reconcile with the actual sales figures at that moment in time key performance indicators can place the financial results into context and are often indicative of future sales trends As Steve succinctly put it ‘The Voice of the Customer does not automatically tally with the financial results but is a key indicator of the brand’s health nevertheless’ The continuous nature of the tracking over time remains a key reason for the success of Synovate’s BrandVision Trend lines can be drawn from accumulated data giving instant feedback at any point in time The tracking mechanism also facilitates future projections crucial for companies planning their sales and marketing well ahead L o c a l Presence A significant number of local brand custodians have taken positively to brand tracking measurement systems across all sectors Many of the leading 46 companies in Malaysia have already subscribed to Synovate’s brand tracking service In promoting BrandVision in the Malaysian market place Steve Murphy opines that ‘Malaysian companies are refreshingly open about management issues and they share a great deal of information with their research partner In fact they are more open about bringing a research agency as part of their core decision making process than many other markets in Asia’ As a wide spectrum of sectors including fmcg petroleum financial telecommunications and automotive embrace the practice of concerted market research it is apparent that tracking brand performance is becoming a key task that brand building firms will increasingly subscribe to BRAND BRANDEQUITY BE pagination 46 5/17/05, 2:28 PM ADVERTISE! PROMOTIONS! SELL! ADVERTISE! PROMOTIONS! SELL! a typical business war cry from SMEs in trying to outwit each other and their competitors to gain larger marketshare for themselves In a highly commoditized price sensitive less affluent less service and product quality conscious markets these strategies have high probabilities to succeed However the markets have changed since then SMEBranding INCREASING MARKETSHARE AND PROFIT MARGINS: SALES-CENTRED TO BRAND-CENTERED COMPANY By Cseng Lim Business and consumer communities are more sensitive towards brands and are more in touch with themselves above the fundamental levels of the Maslow Hierarchy These markets used to exist in pockets within our community; today they thrive and will continue to make their presence felt in the future Therefore the way companies approach marketshare building must also change to be relevant to the markets they served Businesses and consumers are now willing to pay more to own products and services that are branded which allow them to own a share of novelty that they perceived difficult to be valued 48 purely in monetary terms Some of these novelty can come from the point of owning a piece of a legacy to become part of the affluent community to improve self esteem to have felt that he/she has done his/her part in contributing to a cause and many more All of these are branding dimensions that are not part of the traditional saledriven dimensions of a business product or service Therefore companies need to focus on more branddriven strategies to building marketshare than to compete with each other like ‘pasar malam’ stalls out to gain the attention of their customers in order to succeed in the new Asian and global marketsThere are differences between salesdriven approaches compared to brand driven approaches Brand strategies are more pull driven than pushdriven but this principle is not hard cast in stone for every products services or situations Brand strategies are also more aligned founded and guided within the context of structured brand identities and qualities compared to traditional pull marketing The following table describes the difference between salesdriven approaches compared to branddriven approaches to building marketshare: BRAND BRANDEQUITY BE pagination 48 5/17/05, 2:28 PM Common Marketing Startegy Sales-Driven Approach Brand-Driven Approach Advertises the products or services being sold directly to the market. The typical ‘Buy Me’ persuasion spread all over the ad piece Leverage on a association startegies to co-brands brand identities, and others brand elements to create a total brand appeal. Instead of selling the product / service the ads sells the value or the ads sells the value or the brand image. ‘Be Apart of Me’ or ‘I am You’ is the more common form of persuasion spread found in a typical ad piece. ‘No need lar’ Waste of money PR Events are organized to allow markets to get to know and experience the brands. These events are typically not designed to realize sales but to position the products or services or company. ‘No need lar’; The product / service is sure to sell since we are the cheapest and customers need it anyway. Clearly set out brand proposition being offered that is beyond just price. The brand proposition takes into account a clear positioning compared to its competitors. We are the cheapest in town and will continue to offer the cheapest price so that we can realize sales. Price = Cost + Profit Our pricing represents our customers’ experiential, social and psychological value statement. Price = Cost + Profit + Psychological Value + Experiential Value + Innovation Value People and Selling Approaches Sales people trying to make a living off sales commission. ‘Anything Goes’ policy for sale approaches. Sales people represent the living elemeent of the brand and there are guidelines to be followed, style to go, training to undergo and professionalism to approaching customers. Customer Lifetime Value matters! Brands invest heavily in knowing how their customers are segmented, who are the profitable ones and plans are put in place to keep them coming back. Sales Business Process “What does it have to do with building market share or selling?” Customers buy, we invoice then we collect - that is the process. A well designed process that takes into account the total branded sales process from the customers’ first contact with the brand right through to actual sales experience then further to post sales loyalty management. Merchandising and Store Atmospherics So long as they are a lot of varieties for customers to choose and cosy atmosphere will do just fine. Distribution Products are distributed in any channel at any locale so long it ended up in sales. Packaging and Aesthetics So long as it is presentable. No need to spend money on this. Advertising PR Positioning Pricing Without a doubt the branded approaches to building market share are far more complex and requires high level of strategic and implementation capabilities than common salesdriven approaches In the branded approach we are looking beyond just realizing sales and securing marketshare but Carefully designed merchandising plans that are locale-specific and invest in the branded atmospheric experience guided by the brand’s identities. Distribution channels are carefully assessed based on several criteria but the more important criteria are chnnel profitability and brand-channel association relevance. Customer experince and emotional attachment is important. Packaging and aesthetics are designed to deliver the brand image. more importantly to protect the market share that have been built by establishing barriers for competitors These barriers are not just prices product/service features size of distribution channels alone but also constitute emotional psychological and experiential barriers that are harder to be copied and transcended by competitions Branddriven strategies in building marketshare are not just efforts to satisfy quarterly sales performance and accountability to shareholders They are efforts that BRAND DEQUITY BE pagination 49 5/17/05, 2:29 PM 49 build and seal the market from its competitors and provide opportunities for the company to increase profits by selling intangible values to the products or services be it emotional psychological or experiential to its customers For a branddriven business marketshare can no longer be define in generic terms which many SMEs still practices An example: A machinery manufacturer will probably define its market as any manufacturing industries that use the types of equipment manufactured by the company Thus its goal is to own the largest marketshare in those manufacturing industries For a branddriven business marketshare has to be characterised by the following factors: Profitability per percentage share of the market Brand power that it can gain per percentage share of the market; Brand power are powers that will strengthened the brand in the market and offers the brand leverage to move up or expand outside its existing market An example of a brand power is pricing premium Probability of success that the brand can become the icon / point of reference for the market An easy way to assess this situation is to ask ourselves whether the segment market has already an established benchmark brand or de facto brand Thus the marketshare for a brand driven business is strategically oriented to ensure that the brand not only profits considerably from its share but also sets itself as the identity for the market It is no 50 longer purely about how much we own but also how strongly we plant ourselves in the market as well as how profitable we can become A real business example to illustrate what we have talked about is the markets owned by Apple and Microsoft respectively It is common understanding that Apple users will never or very unlikely switch to become a loyal Windows user simply because Apple owned seal and plant itself as the icon of the market it served Apple is able to sell not only to loyal Apple users but also Windows users high value products such as the successful iPod With the new Mini Mac Apple is beginning to encroach on the Windows marketshare by offering competitively priced product that offers the unique Apple brand experience and values Another consideration for marketshare is margins earned from sales There is little point in owning a large market share but only realized small profit margins from it compared to another competitor that owns smaller market share but profits considerably from its share With higher profits the competitor has far more cash and thus power to encroach and build its market share at the expense of its competitors High margin per unit sale cannot be readily realized by depending on lowering cost (simply because there is only so much one can lower) features and other tangibles related to the product or services being sold Nonbrands can never justify a higger price to command high margin no matter how beautiful is their advertisement and how extensive their sales promotions are High margins is only possible when the company is selling intangibles value propositions of the brand the brand’s image the brand’s associative values the experience the customer emotional social and selfconnections etc The catch to achieve that is companies must first realize the difference between selling a product and selling a brand Secondly companies must have the knowhow to define the brand Thirdly they must be able to design and implement a systematic brand management processes to support and deliver the brand in the market And fourthly they must be able to measure its performance from many angles apart from sales performance alone SMEs must move away from a salecentered company to become a brandcentered company in order for them to find success for their company in the current market The truth is that not every company will become as successful as a Samsung or Sony but to achieve success as a powerful and strong local ‘Samsung’ or ‘Sony’ is far more gratifying than becoming just another unknown constantly struggling with pricing profit margins and managing competitions Cseng Lim is the Managing Director of EAST & URBAN Sdn Bhd a Brand Systems Company that assists Malaysian companies to implement businesssensible operationallycentred and pragmatic branding solutions that meet their brand building objectives All comments are welcome and can be directed to info@easturbancom BRAND BRANDEQUITY BE pagination 50 5/17/05, 2:29 PM PersonalBranding by William Arruda Branding is the hottest concept in marketing today and it’s an idea that is not just for the deeppocketed highly glossed CocaColas and Nikes of the world An increasing number of independentbusiness owners are embracing branding as the guiding philosophy for building their companies Small Business Branding: The Personal C BUSINESS IS BECOMING MORE and more competitive Small Business is the fastest growing segment of business in most parts of the world And thanks to the internet your competitors are no longer just the businesses down the street They are the businesses in the next town the next country and even on the next continent So as the leader of a small business how do you succeed in a dynamic world of 52 increasing complexity with a much larger set of competitors? The answer seems too easy to be true: Be Yourself To succeed with your small business and keep it on the right track use your personal brand your unique promise of value Because in the world of small business the corporate Brand is the personal brand of its leaders These brands are inextricably linked You need only look at successful entrepreneurs like Ben and Jerry Richard Branson and Bill Gates to see that entrepreneurial ventures take on the values and passions of their leaders According to Nation’s Business Magazine “Branding is the hottest concept in marketing today and it’s an idea that is not just for the deeppocketed highly glossed CocaColas and Nikes of the world An increasing number of independentbusiness owners are BRAND BRANDEQUITY BE pagination 52 5/17/05, 2:29 PM embracing branding as the guiding philosophy for building their companies” Being true to your personal brand ensures that your business stays on course and remains highly differentiated and valuable to your target market Christopher Ginisty Managing Director of the Communications Firm Rumeur Publique says “Buyers are putting their trust not only in a company but in the leaders of that company For small businesses the leaders are often even more important It is critical to ensure that the leaders are an integral part of the corporate communications strategy and that their personal ::: About William Arruda ::: Dubbed the ‘Personal Branding Guru’ by the media and clients alike William Arruda works with individuals and organizations to build strong memorable brands Combining his years of international branding expertise with his passion for people he founded Reach (http://wwwreachcccom) the world’s first branding consultancy (http://wwwreachcccom) focused on the human side of branding William has appeared on BBC TV the Discovery Channel and Radio America He has published numerous articles in publications ranging from the Wall Street Journal to the brandchannelcom and he has written for the American Marketing Association the Chartered Institute of Marketing and PR News William is also author of the upcoming personal branding book BulletProof Your Career He is a member of the International Coach Federation holds a Master’s Degree in Education and speaks regularly to audiences around the world l Connection. brands are clear relevant and accurate” your values your passions and your goals Building your business around your brand also enables you to obtain the highest level of satisfaction and fulfillment from your hard work The first and most important step in brand building involves uncovering your unique promise of value Once you have a clear understanding of your differentiation and its relevance to your ideal target audience you can build a brand communications plan to get your message out to those who will make your business a success These communications need only be focused on your target market If your target market is everyone in the world you will need a communications budget the size of Coca Cola’s That’s why focus is the key Although it seems counter intuitive the smaller you make your target market the greater your chances of success This helps you to identify what is truly important to you what makes you unique and what values will drive your business decisions Understanding your true personal brand enables you to stay on target with your business and make strategic and tactical decisions that are consistent with Like with all strong brands once you have established an authentic and differentiated brand that is relevant to your target audience you must ensure that all aspects of your business are reinforcing this brand message Developing brand guidelines that clearly describe what is on and offbrand for your business will help guide you as your business grows So when developing a branding strategy for your small business take a good look at your personal brand And through the clear and consistent expression of your unique promise of value your business will thrive BRAND DEQUITY BE pagination 53 5/17/05, 2:29 PM 53 ShopperTrends Malaysian Shopping Habits ACNielsen’s tracking activities gives a bird’s eye view of shopping trends & nuances in Results were categorised into sections that include spending behavior profile of shoppers as well as channel trends Spending Trend & Profile of Shoppers Steve Mitchell (MD) & Barry Ooi AM BARRY OOI THE executive director of ACNielsen’s retail measurement services took the floor at a conference hall of a leading hotel to address over seasoned marketing professionals from various fmcg categories ACNielsen organizes such regular meetings to deliver updates about happenings in the Malaysian shopping environment The intention is to share top line 54 findings about shopper behavior as well as supplementary information that impacts key elements of brand building The data was obtained from face toface interviews with households located across all major towns in Peninsula M’sia that has hypermarket presence Target respondents were from all races and included both genders aged between and * Shoppers are spending more on grocery and household shopping mainly as a result of higher disposable income In particular consumers spent more on groceries; an increase of was recorded * A higher proportion ( ) is spent on groceries household and personal care products in comparison to fresh foods * A third within a household claim that they play an influential role in the shopping decision dynamics As such influencers need to be given importance in planning brand communications * Household and grocery items are no longer the domain of women; males are actively participating in household purchase decisions BRAND BRANDEQUITY BE pagination 54 5/17/05, 2:29 PM * Malaysian’s approach to health is through eating ‘healthy’ and less through exercise A significant majority do not exercise regularly * A significant percentage at about rarely or never consume health supplements * A majority are not planning to lose weight; those that harbor the desire offered cutting back on fats sugars and chocolates as the preferred options Channel & Price Trend Trade Sector Purchase Behavior & Private Label Trend * Shoppers have increased their frequency of visits across all channel types More store openings and proximity of location to home accounts for the mix of retail establishment visits * Consumers spend most of their shopping money at Hypermarkets and Supermarkets; fuelled by the opportunity to ‘bulk buy’ * Higher income consumers spend most of their money at Hypermarkets and Supermarkets Traditional outlets get their highest share ofspend from the lower income group Therefore offering the appropriate product line across channels is important to maximize sales and inventory efficiency * There are shopper profile differences between Hypermarkets Personal Care stores and Convenience outlets For instance the Chinese community accounts for of sales of personal care products within the modern trade The to age group become the group to target for convenience stores ( of all age groups) Therefore matching brand profile against the channel profiles will enhance brand relevance and distribution efficiency * Private Labels are gaining in popularity even though its share position is still small And incidences of buying private label brands is higher at Hypermarkets and Supermarkets as compared to Personal Care stores * Hypermarkets and supermarkets are the fastest growing trade channel However brand builders can’t undermine the importance of traditional stores and in particular provisions stores A dual distribution system is required for adequate market coverage * Food prices are on an increase whereas nonfood categories are showing lower prices In addition it remains tough to impose higher prices on normal regular items Innovation is needed to justify higher prices On the whole consumer sentiments remain positive despite lower GDP growth Yet the battle for mind space through advertising is getting intense with higher spending Barry specifically pointed out that strong brands backed by higher investment in brand communications are able to command high levels of spontaneous awareness Health Diet & Exercise * The Malaysians’ selfperception of dietmost believe that they adopt a healthy diet * They are concerned about food safety and their purchase decisions are influenced by it He also pointed out that the average number of households in Malaysia is Average household spend remains at RM That delivers RM Billion; which is the size of the Malaysian grocery market BRAND DEQUITY BE pagination 55 5/17/05, 2:29 PM 55 BRAND DEQUITY BE pagination 57 5/17/05, 2:30 PM 57 MediaSpecialist The Media Maverick By Seelen Sakran TAPPING INTO A NICHE market That is what Images Corporation Sdn Bhd is all about Having given birth last year this little company is all gungho about its foray into outdoor advertising via a concept called directional road signage And the man behind all this excitement is none other than Hassan who has been given the moniker Mr Media Owner by some people in the industry to which he shrieks and says ‘scary’ In fact Hassan is so optimistic about this business that he believes that this venture will rake in a turnover of RM a board 58 At an average of boards a month being placed in KL alone it would amount to RM But Hassan is not resting on his laurels He has other plans as well He intends to conquer the nation with at least boards a month translating that to about RM million So has Hassan reinvented the wheel then with this new venture? ‘Not quite exactly’ comes his reply I am only exploring an option that has not been fully tapped into’ Hassan feels there is a huge market out there to tap into ‘All the market needs is a bit of education They have been so used to advertising tools such as unipoles spectaculars that it will take some time for them to know the benefits of our system’ Why? Hassan says via directional road signages clients can have their products advertised within the city quite unlike billboards which can only be placed on the outskirts of a city like KL ‘We spent educating prospective advertisers for three months before they understood what we meant’ he says with a sign of relief Thus far Images has penetrated cities like KL Ipoh Johor Baru Kuantan They are working on cities like PJ Putrajaya and Penang ‘Once we are satisfied with our achievements in busy cities of the West Coast we will BRAND BRANDEQUITY BE pagination 58 5/17/05, 2:30 PM look into the East Coast as well as Sabah and Sarawak’ How were the city officials convinced? ‘Simple’ remarks the affable Hassan ‘All we had to do was to present them with the idea that they do not have to fork out any money that our signages can benefit tourists and motorists alike and that our signages can actually beautify the city They were sold!’ While Hassan does not reveal the actual cost of the signages he does indicate the ‘investments are heavy’ ‘The best part is that the city officials have been so convinced that they have allowed us to have a licence for a minimum period of years (the maximum being ) unlike billboards which need to be renewed on a yearly basis’ Hassan remarks ‘Even if the city officials wish to take down the signages they have to wait for years’ he laughs k ‘The key aspect about these signs is that although they are small but an advertiser can benefit from the numerous places that he can place an ad within heavy traffic areas The other thing is that it’s inexpensive’ Hassan adds that his advertisers consist of small retailers like supermarkets to the big boys like the telecommunication companies Apart from cities Images has also penetrated schools Up until now the company has penetrated about schools nationwide with the help of a company called Omega Channel Sdn Bhd ‘We have placed the signs at the main entrances of the schools The purpose is dual the outside is to advertise products while the inside (which faces the school) is convey important social messages’ So how did it all start for Hassan? From humble beginnings as a sportsman! ‘I started with the Malaysian Under then represented the Selangor state I then played professional rugby for the Malayan Banking Group Though it was interesting I knew I would not go anywhere with an oblong ball’ Hassan quips So only after eight months Hassan left ‘I headed for the New Straits Times (NST) where I was appointed as an executive with the marketing services department I learnt a lot from NST for which I am very thankful They thought me for what I am made of now’ he adds proudly At NST Hassan learnt about advertising marketing and research which he regards as very important input’ All it took was to hear Hassan input The TV management decided to promote him to senior executive the very next day ‘I was shocked but pleased’ Hassan blushes ‘We started fresh with no peer TV stations to guide us or offer us competition We some how managed and persevered’ A few months later Hassan was promoted to assistant commercial Not only did Hassan learn well at NST he also found it rewarding Within five years he had a number of promotions up until his last position as field sales manager ‘I was in charge of the best selling newspapers of the NST Group Berita Harian and Berita Minggu’ But as the turn of events would have it Hassan changed careers from print media to television He left NST in to join TV the first private television station in the country manager He stayed on for six years at TV His last designation was marketing manager Where did he head to? It’s everyone’s guess to start Images ‘But from a manager I went down to being an executive (and he’s not telling why) but only for one day I still remember it was Valentine’s Day On that day I attended a strategy meeting and gave my But why such a peculiar name? His answer: ‘ is the year I and my other two partners were born One partner has left though’ ‘We started out with one event’ The rest as they say is no turning back BRAND DEQUITY BE pagination 59 5/17/05, 2:30 PM 59 By R Venkateswaran NielsenMediaResearch HAS BEEN A BULLISH YEAR for the media Ad spend registered its biggest jump yearonyear over the last two years It is indeed significant that adex has registered an overall growth rate of almost double that of the previous year And interestingly this trend has shown a constant doubledigit growth across all the major media barring magazines Danyal Abdul Malik the executive director of Nielsen Media Research gave Brand Equity a copious update about this phenomenal growth and the reasons behind the increase General Trend The Government, a dogfight for eyeballs and mindspace as well as the presence of new media propels adex to significant levels Among the various media that have reflected doubledigit A Bullish Adex Hera 60 growth for the whole of last year television stands out with the biggest jump of yearon year Among the key reasons attributed for this drastic increase is the introduction of two freeto air channels which have garnered a significant share of new eyeballs without affecting the existing networks contributed a lion’s share to the till with a consistent expenditure throughout the year The increased coverage of sporting events such as the hugely popular Euro as well as the Athens Olympics in the later part of the year boosted the ad spend that witnessed the highest growth since Among others key activities such as the Government’s sustained campaign in the preelection phase followed by the general elections itself the ‘Tak Nak’ campaign eschewing smoking the Formula One Grand Prix and the coronation of the Sultan of Selangor had Newspaper followed TV as the biggest media to register double digit growth in the process continuing the trend from previous years where they recorded the highest adex contribution across all media types Increased Government spending on the National Service the multiple festive seasons especially with Deepavali and Hari Raya falling one after the other and the Family Comes First campaign ensured that the Government was the biggest advertiser last year Classifieds yet again continued to be the predominant contributor to the newspaper adex space to occupy pole position among the top categories of advertising BRAND BRANDEQUITY BE pagination 60 5/17/05, 2:30 PM Danyal Abdul Malik Heralds Confidence Quarterly analysis As can be seen from Figure showcasing the change in adex YOY from to the first two quarters of registered phenomenal growth bucking the trend from years past where the pattern of spending always showed an increase in the latter half of the year The growth of in the first half of is a clear indicator of this pattern This could be attributed to the key events mentioned earlier besides the advent of two new channels TV and Channel which started to report adex figures commencing in the first half of Top Category Together mobile interactive and line services have made a significant presence in this category with their growth rate The increasing use of mobile phones PDAs and combo devices have spawned the increasing transmission and use of ringtones sms messages and games The result showcases a whopping increase in the advertising of interactive services and a increase in adex for mobile line services The rise in adex can be attributed to the multitude of aggressive campaigns targeted at the tech savvy young population whose numbers show an exponential increase almost on a daily basis While classifieds continue to register a perennial increase personal care and grooming products remain in the top slots Government institutions (local) and credit card companies follow in this illustrious lineup while cinema advertising seems to have registered a high growth with a more than increase from The airline industry and recording studios round off the BRAND DEQUITY BE pagination 61 5/17/05, 2:30 PM 61 Top 10 Category 2003 2004 RM 000’s RM 000’s Changes Rank Category 1 2 3 4 5 6 7 8 9 10 11 Classifieds Mobile Interactive Services Mobile Line Services Residential Estate Hair Shampoo & Conditioner Face Care-Woman Government Institutions-Local Credit Card Cinema Advertising Airline Recording Studio 535,756 100,392 139,432 106,882 71,225 87,648 69,579 65,016 41,846 37,270 56,803 582,740 234,045 233,330 114,029 110,638 105,248 90,935 81,917 73,928 64,804 63,465 8.8% 133.1% 67.3% 6.7% 55.3% 20.1% 30.7% 26.0% 76.7% 73.9% 11.7% Top 10 Advertiser 2003 2004 RM 000’s RM 000’s Changes Rank Advertiser 1 2 3 4 5 6 7 8 9 10 Maxis Procter & Gamble Celcom Digi Nestle Unilever KFC Holdings Citibank Malaysia Airlines System Petronas 80,385 56,782 61,691 45,027 45,410 55,642 38,390 23,562 16,997 44,826 144,463 102,945 89,628 80,468 60,534 60,294 40,789 35,717 35,199 35,100 79.7% 81.3% 45.3% 78.7% 33.3% 8.4% 6.2% 51.6% 107.1% -21.7% Top 10 Brand 2003 2004 RM 000’s RM 000’s Changes Rank Brand Group 1 2 3 4 5 6 7 8 9 10 Maxis Celcom Digi Citibank Malaysia Airlines Petronas Telekom Malaysia Tourism Malaysia KFC Pantene 80,385 61,691 45,027 23,562 16,973 46,397 25,601 25,755 28,273 20,176 144,463 89,628 80,468 35,717 35,199 34,342 33,703 30,757 29,734 29,457 79.7% 45.3% 78.7% 51.6% 107.4% -26.0% 31.6% 19.4% 5.2% 46.0% top categories with residential estate advertising and classifieds being the only single digit growth items for Top Advertisers It is also interesting to note that of the top advertisers across all media were the telecommunications companies which registered increases of more than over the previous year FMCG advertisers did show an increase in adex but the rate of growth was significantly lower than in previous years while in the banking sector Citibank led the way by securing a place in the coveted list The large scale publicity and promotions exercised through the MATTA fair presented MAS the opportunity to register its biggest Newspaper followed TV as the biggest media to register double-digit growth, in the process, continuing the trend from previous years where they recorded the highest Monthly AdEx Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2004 2003 RM 000’s 2004 RM 000’s 275,465 219,626 298,643 279,051 299,814 297,344 313,853 353,424 343,270 357,328 367,688 380,157 3,785,662 313,802 304,920 359,152 346,982 367,525 385,629 366,709 402,066 376,895 411,447 379,373 408,565 4,423,065 Changes Changes RM 000’s % 38,337 85,294 60,509 67,931 67,711 88,285 52,856 48,642 33,625 54,119 11,685 28,408 637,403 13.9% 38.8% 20.3% 24.3% 22.6% 29.7% 16.8% 13.8% 9.8% 15.1% 3.2% 7.5% 16.8% adex contribution across all media types. spend level to date; recording a whopping jump over The competition it faces from a slew of budget airlines in the region has seen the national carrier pull out all stops to retain its market share in the regional and international airspace Quarterly AdEx Q Q1 Q2 Q3 Q4 2003 RM 000’s 2004 RM 000’s 793,734 876,209 1,010,547 1,105,173 977,874 1,100,136 1,145,670 1,199,385 Changes Changes RM 000’s % 184,140 223,927 135,123 94,212 Source : Nielsen Media Research Note: Advertising Expenditure Based on Rate Card 62 23% 26% 13% 9% Top Brands The top ten brands advertised across all media correspond to the top ten advertisers for last year Telcos such as Maxis Celcom and Digi occupy the top rungs while the list BRAND BRANDEQUITY BE pagination 62 5/17/05, 2:30 PM AdEx Growth RM 000’s Total YOY Television YOY Newspapers 1998 2,179,960 1999 2,474,287 13.5% 771,351 10.2% 1,471,031 16.5% 85,077 29.9% 9,665 -9.3% 10,918 12.4% 2000 3,078,200 24.4% 935,665 21.3% 1,866,193 26.9% 101,961 19.8% 9,650 -0.2% 9,377 -14.1% 2001 3,156,857 2.6% 878,115 -6.2% 1,936,372 3.8% 119,675 17.4% 11,387 18.0% 2,764 -70.5% 2002 3,450,453 9.2% 921,777 5.0% 2,188,450 12.9% 144,141 20.4% 9,739 -14.5% nil nil 2003 3,785,662 9.7% 999,248 8.4% 2,366,783 8.1% 152,526 5.8% 12,561 29.0% nil nil 61,847 2004 4,421,012 16.8% 1,300,702 30.2% 2,669,804 12.8% 169,330 11.0% 13,994 11.4% nil nil 68,936 699,664 YOY Radio YOY Cinema 65,509 1,262,469 YOY Video YOY Outdoor YOY 9,711 10,651 11.5% Source : Nielsen Media Research Note: Advertising Expenditure Based on Rate Card AdEx Share of Voice Television SOV Newspapers SOV Magazines SOV Radio SOV Cinema SOV Video SOV RM 000’s Total 1998 2,179,960 699,664 32.1% 1,262,469 57.9% 111,328 5.1% 65,509 3.0% 10,651 0.5% 9,711 0.4% 1999 2,474,287 771,351 31.2% 1,471,031 59.5% 104,108 4.2% 85,077 3.4% 9,665 0.4% 10,918 0.4% 2000 3,078,200 935,665 30.4% 1,866,193 60.6% 131,171 4.3% 101,961 3.3% 9,650 0.3% 9,377 0.3% 2001 3,156,857 878,115 27.8% 1,936,372 61.3% 182,577 5.8% 119,675 3.8% 11,387 0.4% 2,764 0.1% Outdoor SOV 2002 3,450,453 921,777 26.7% 2,188,450 63.4% 158,060 4.6% 144,141 4.2% 9,739 0.3% nil nil 2003 3,785,662 999,248 26.4% 2,366,783 62.5% 159,035 4.2% 152,526 4.0% 12,561 0.3% nil nil 61,847 1.6% 2004 4,421,012 1,300,702 29.4% 2,669,804 60.4% 165,431 3.7% 169,330 3.8% 13,994 0.3% nil nil 68,936 1.6% Source : Nielsen Media Research Note: Advertising Expenditure Based on Rate Card The increased coverage of sporting events KFC barely holds a spot in the Top elite company in spite of being the only single digit growth brand Petronas has decelerated in adspend by just over such as the hugely popular Euro 2004 as Overall Summary well as the Athens Olympics in the later It’s obvious that aggressive competition in particular the telecommunications sector has made a mark on the direction of adex in the past year part of the year boosted the ad spend that witnessed the highest growth since 2001. accommodates Telekom as well Citibank and MAS round off the top spot while Petronas in spite of a severe drop in adex still retained its place in the list A single fmcg brand (Pantene) found its way into the list despite the fact that fmcg categories have found a place within the Top category list Fast food giant In particular the participation of Government institutions in weighty activities and their subsequent participation within the marketing communications arena have also propelled numbers to inspiring levels It remains to be seen whether will showcase a rerun BRAND DEQUITY BE pagination 63 5/17/05, 2:30 PM 63 Asians the World’s Greatest Fast Food Fans consumers can make their purchases Among the markets studied across three regions consumers in these three markets had a higher percentage of adults than Americans () who eat at fast food restaurants The latest ACNielsen Consumer Confidence and Opinion Survey was conducted over the Internet in countries across Asia Pacific Europe and the US interviewing more than consumers over the Internet According to the ACNielsen survey percent of Asia Pacific adults eat at takeaway restaurants at least once a week slightly behind fast food fans in the US () At the other end of the scale however just percent of European adults eat takeaway at least once a week On a marketbymarket basis nine of the top markets globally for weekly takeaway consumption hailed from Asia Pacific No European markets were among the top ten Top Global Markets for Weekly Fast Food Consumption Market Percentage of Adult Population Perhaps we’ll begin to see drive thru windows at grocery stores or at least more convenient instore prepared food sections with dedicated registers” That Eats at TakeAway Restaurants at Least Once a Week Hong Kong Malaysia Philippines Singapore Thailand China India US Australia New Zealand Source: ACNielsen “Fast food appears to have become a staple of our diets in Asia Pacific including Malaysia” said Steve Mitchell managing director ACNielsen Malaysia “Busy lifestyles and ease of access to a wide variety of fast food restaurants have proven to be a powerful combination Where fastfood restaurants still have a significant advantage though is the ease with which Despite the obvious popularity and convenience of takeaway dining there are consumers that continue to resist Across the region percent of Europeans and percent of Asians eschew the ‘takeaway’ Led by the Danish Swedish and Italians Europeans are the least tempted by a takeaway lifestyle when compared to consumers in the US and Asia Pacific With nearly one fifth of Europeans () claiming never to patronize takeaway outlets nearly half claim to visit only once a month or less In Asia Pacific despite percent claiming never to eat fast food the region has the most take away addicts with percent reportedly eating take away every week led by people in Hong Kong () Malaysia () and the Philippines ( ) “The state of one’s health has consistently been among the top concerns for consumers according to previous ACNielsen surveys but it doesn’t seem to affect the way consumers choose to eat” said Mr Mitchell “For many city dwellers these days it’s all about convenience BRAND DEQUITY BE pagination 65 ACNielsenUpdate IT DOESN’T MATTER WHERE in the world you are or how well off the fast food culture has become a way of life for all of us According to the latest findings from ACNielsen the world’s leading market research firm nearly all Filipino () Taiwanese and Malaysian () adults eat at takeaway restaurants 5/21/05, 12:45 PM 65 Europeans are less interested in takeaway dining perhaps largely due to a prevailing culture of meal times being a social or family occasion rather than simply a need to satiate ones hunger while for people in Hong Kong Malaysia and United States eating fast food has become a part of their life” The ACNielsen survey found that dinner was the most popular occasion for consumers to opt for a takeaway meal Americans considered takeaway an option for both lunch () and dinner ( ) globe Specifically “Type of Cuisine” was most important for Indonesians () a “Convenience Location” meant more for Nowegians () and “Price” was most important among the Japanese () In Malaysia however “Convenient Location” ( ) and “Good Hygiene Standard” () are more important to the consumers “A fast food culture has shaped the lifestyles of us all” Mr Mitchell added “And with fast A takeaway breakfast was less common although percent of Malaysians nearly two thirds of Hong Kongers and Thais would opt for a ‘takeaway’ breakfast; in Filipinos Chinese and Singaporeans have takeaway lunches; and percent of Australians percent of the Kiwis and percent of Vientamese have take away dinners “The fast food business has become increasingly competitive with various multinational fast food chain operators expanding into new geographies daily along with the emergence of new players new types of cuisines and new menu choices “ continued Mr Mitchell “Smart consumer packaged goods manufacturers are tapping into consumers’ need for convenience by offering a wider assortment of prepared and easytoprepare meals than ever” As the fingings revealed “Type of Cuisine” “Price” and a “Convenient Location” were found to be the most important choice criteria across around the 66 food operators introducing healthier options in the form of salads and low carb meals in the face of growing concerns for rising obesity levels consumers today have greater choice than ever before” While building a good brand image is close to the heart of most marketers it’s worth noting that brand image appears to have little influence on consumer’s choice of take away restaurants Across the three regions “Brand Image” ranked least important among all respondents from as low as in Germany to a high of in Taiwan only Among the international fast food chains and local operators McDonalds was the most popular of all takeaway options with of Americans of Europeans and of Asians picking it as the first choice for take away food Remarks: () Survey in Vietnam was conducted Face to Face () countries surveyed include Australia China Hong Kong India Indonesia Japan Korea Malaysia New Zealand Philippines Singapore Taiwan Thailand Vietnam US Austria Belgium Denmark Finland France Germany Italy Netherlands Norway Portugal Spain Sweden and UK About ACNielsen: ACNielsen a VNU business is the world’s leading marketing information company Offering services in more than countries the company provides measurement and analysis of marketplace dynamics and consumer attitudes and behaviour Clients rely on ACNielsen’s market research proprietary products analytical tools and professional service to understand competitive performance to uncover new opportunities and to raise the profitability of their marketing and sales campaigns For further information please visit http://wwwacnielsencomhk BRAND BRANDEQUITY BE pagination 66 5/21/05, 12:45 PM Taking the Mystery Out of Mapping IN ANY PRODUCT OR SERVICE category consumers have images of brands and the people who use them Brand mapping is a tool marketers can use to delve beneath the numbers and obtain a rich yet easyto understand picture of how consumers see the market Questions Brand Mapping Can Answer: As a marketer you’re often faced with questions like these: • How is our brand perceived by consumers? • Does this differ from how we perceive it? • Is our brand sufficiently differentiated from competitors/our other brands? • Are there gaps in the market we can exploit? • What aspects of its image do we need to change to reposition our brand? Brand mapping can help give these insights How Does it Work? In brand image research we typically ask consumers to rate brands on several attributes relevant to that product or service underlying dimensions are identified dimension “scores” can be computed and the attributes and brands plotted on these dimensions usually in a scatter plot Thus you have a picture of consumer perceptions of the category that are easier to interpret than cross tabulations or simple graphics and usually more meaningful as well category or ask them to indicate which attributes they associate with which brands These data can then simply be shown in cross tabular form or plotted in a line graph but there are two main disadvantages to either of these approaches: There is a lot of information to absorb If say you have brands and attributes that’s numbers in a table or points in a line graph to look at! It is not always easy to tell how the ratings are related to each other This second drawback leads us to the essential idea behind brand mapping which is to show findings in a graphical way which can best highlight the key insights in the data in a clear and uncluttered manner In other words get to the core of the findings so you can see the wood despite the trees and other associated flora There are a variety of statistical methods that can do this but the basic notion is known as “data reduction” in the jargon Once the There are approaches to brand mapping specifically and ACNielsen will select the one our experience tells us is best suited to your needs Perhaps the most widelyused today are Correspondence Analysis and Bi plots While it is true that some mapping exercises can become quite complex and interpretation can be difficult in most cases if you follow these three basic rules for interpreting brand maps you will gain the most: Brands that are close to your brand are the ones consumers think are most similar to it; Attributes located near your brand are the ones consumers feel characterise it the most (relative to other brands); those far from it are those they least associate with it; and Attributes near the edges of the map differentiate brands the most; attributes which do not differentiate ie that could be consideredgeneric to the category are situated near the center of the map A further benefit of creating the map charting out the positioning of the brands is that consumer segments to whom those brands may be targeted can also be placed on the map So long as you get a similar read on the attributes from the consumers usually in BRAND DEQUITY BE pagination 67 5/21/05, 12:45 PM 67 terms of the attached importance or relevance to the consumer you can see if the targeted segment motivations align with the attributes of the brands aimed at them (You don’t even have to use all the attributes the key ones alone will allow this) thus inferred to be a generic attribute ie marketing a cereal product on a convenience platform is not likely to bring about much differentiation from other brands “Is mainly for snacks” is more discriminating as it is placed on the edge of the map An Example Let’s take a look at an example from an actual (heavily disguised) study on Chart below Here we have substituted the original category with breakfast cereals However just because something is discriminating does not mean you would necessarily want to position using that “benefit” In this case positioning as a snack could limit consumption volume and maybe undermine nutritional messages We can see in this case that SLIM SPECIAL and BRAN PLUS are seen as healthy and good for a diet but as with many “health” food products the taste is seen as boring “Convenient to prepare” is found near the centre of the map as is In the study four key consumer segments were identified linked to the life stages and needs and as can be seen in this case their needs and drives align with brand promises Summary Mapping makes understanding the way consumers perceive the market and what they want from a category easier and simpler and can help provide a more actionable and insightful view of their perceptions But a few words of warning – almost any data set will generate a map There are a few tests for statistical rigour but generally if it does seem to make sense the most common reasons are that the attributes have been poorly chosen the market is more complex and cannot be summarised in dimensions or one atypical brand is skewing the whole map Are Online Surveys as Accurate as Offline Surveys? MANY MAJOR CORPORATIONS are turning to the Internet to measure consumer and business attitudes perceptions and intentions At the same time some companies are reluctant to trust online research and replace traditional telephone research tracking and ad hoc projects with online alternatives Many companies comfortable with their legacy of telephone doorto door or mail research have resisted even considering online research based on a vague notion 68 that “it just isn’t as accurate” or “online respondents are different from my customers” However whether pushed by budget cuts or the fear of falling behind the younger generation of researchers many research department heads must eventually take a long hard look at online research and ask: will online research work for my company? Online research has been used in savvy research markets with high Internet penetration for over a decade now During that time a lot of lessons have been learnt about when to use online research and when to avoid it And during that time the global Internet landscape has changed dramatically with a steady increase in Internet usage in developed countries as well as huge increases in many developing markets Today online research is available in over countries BRAND BRANDEQUITY BE pagination 68 5/21/05, 12:45 PM Most of the large successful consumer products firms (as well as those in almost every other field) are using online research But other companies should not jump into online research simply out of peer pressure It is important to evaluate the advantages and disadvantages of online research The Benefits of Conducting Surveys Online The primary advantages of online surveys versus phone surveys are: • Online surveys eliminate interviewer bias: telephone interviewers can have different effects on respondents’ answers if they are male/female or cheerful/ droll or fast/slow Online research eliminates variations They are usually lower cost: internet surveys involve pop ups on websites or the emailing of invitations and after that the respondents complete the questionnaire Faster fieldwork: telephone interviewers can only speak to one person at a time while hundreds of online respondents can all answer at the same time Sometimes more accurate responses: online respondents can read the questions and possible responses themselves resulting in higher quality responses Greater recall: online respondents do not feel pressured into giving quick answers so they are likely to think of more to say or more brands etc before moving on to the next question Telephone respondents feel more pressure to answer or move on because the interviewer is waiting Sometimes more detailed 70 responses: since online respondents have more time to think their replies to open ended questions are often more thoughtful and detailed Telephone respondents feel pressure to begin responding quickly (often before they have had a chance to think much) and they cannot doublecheck their responses for accuracy Pictures sound clips and video clips can be included in surveys: this enables online research to do as much as face toface research at a lower cost and with a much greater geographical spread Easier to target lower incidence populations: relatively hard to get at respondents (such as doctors or users of a certain brand) can be targeted through specialised panels or simply larger email approaches Some of the Disadvantages The primary disadvantages of online surveys compared to phone surveys are: You are less able to doublecheck the identity of the respondent: a respondent may not be truthful about who they really are Online respondents can more easily lie about their gender and age than can other respondents Professional survey takers: some online respondents try to go through the survey as quickly as possible without really reading or thinking about their answers However ACNielsen has implemented procedures so that such respondents can be identified based upon their responses and eliminated from the results You can’t explain questions: if the respondents do not understand the question an online survey cannot clarify like a telephone interviewer can This can be corrected by making your questions clear and concise You can’t ask followup questions: an online survey cannot ask a specific respondent to clarify their answer if it does not make sense or if it goes off on an interesting tangent This can be done via online focus group approaches Conduct a Parallel Test and Compare The only way to find out how an online survey compares to your current survey approach is to try it! This can be done most directly through a parallel test—ie running the survey using both methods simultaneously and then comparing the results Although the results are rarely identical (for the reasons mentioned previously) it is important to see if the core metrics line up The following metrics should be the same if the online research is to replace another type of research: Is the topofmind () mention the same using both methods? Is the rating of products or concepts at a similar level using both methods? Is any market movement equally indicated using both methods? Are stated behaviours (previous brand usage previous category involvement) similar using both methods? BRAND BRANDEQUITY BE pagination 70 5/21/05, 12:45 PM These metrics may differ between online and offline research but may actually indicate that online is MORE accurate than offline: Unaided awareness: because online respondents generally take more time to think about their responses they will generally be able to recall more brands more ads more experiences etc This can make the results MORE accurate than other approaches Complex questions: because online respondents can read and reread questions they are more likely to respond accurately In other approaches respondents rarely ask the interviewer to reread the question for them (Note: this can be eliminated in either case if the questions are kept very simple) Detailed questions: because online respondents do not feel the time pressure to give an answer they may actually investigate the answers before they respond For example in a recent survey regarding credit cards a large number of online respondents actually walked away from their computers to find their recent credit card statements in order to give exact dollar figures— telephone respondents rarely do this A Parallel Test Case Study In a typical example of a parallel test the world’s largest apple juice producer wanted to test whether they could move their telephone tracking (of usage and attitudes) from telephone to online surveys in the US ACNielsen conducted an online survey of N respondents in cities for the company at no cost in order to check the viability of switching methodologies The telephone survey was N respondents Only the core metrics were tested: topof mind awareness unaided awareness aided awareness and the results were as follows: • Top of mind awareness was almost identical between the two samples at a national and a city level • Unaided awareness was higher for each brand in the online survey since respondents took more time to think about what brands they knew However the order in which they mentioned the brands was nearly identical between online and offline Online respondents were generally able to remember some of the smaller brands that telephone respondents did not • Total awareness was identical between the two samples Such an exact match is extremely rare even if two identical telephone surveys are conducted so the data had to be doubly verified As a result of the test the manufacturer decided to switch their U&A tracking to online and has saved almost of the annual project cost while at the same time getting faster results they do not Some brief examples of parallel tests that upheld or refuted the case for switching to online: Digital cameras in four Asian markets and three European markets(online vs telephone): not recommended for online because of potential inherent bias since online respondents were more likely to own and use digital cameras since they are associated with sending images online Sanitary protection in Asia Customer Satisfaction survey among current users (online vs mail): recommended to use online since satisfaction levels were nearly identical Online users were more detailed in describing problems Household cleaners in Asia Usage Patterns (online vs telephone): recommended to change to online since attitudes and usage patterns were similar Claimed usage of brands was higher by telephone though this was determined to be overstatement (so online was more accurate) In conclusion moving research from telephone or mail or facetoface to the Internet can increase speed add accuracy and save costs But each case should be evaluated carefully preferably with a parallel test to make sure that it truly merits the switch ACNielsen has conducted a number of similar parallel tests in different categories and different countries and found that while most of them show that online surveys yield the same results on key metrics as offline surveys sometimes BRAND DEQUITY BE pagination 71 5/21/05, 12:45 PM 71 If clear objectives have been set in advance it is possible to monitor the success of a trade fair By Dr Heike Langneer GfK BB and Trade Fair Research Germany Monitoring TradeFairResearch Trade Fairs ? T RADE FAIRS ARE AMONG THE MOST important marketing tools particularly for the manufacturers of industrial goods As a result of their multifunctionality they can be used for a wide range of objectives both financial and non financial But at the same time exhibiting at a trade fair is associated with relatively high costs and requires care in making choices in planning and management if the results are to be optimised In order to support this process of selection planning and management and to optimise the planning of exhibiting at future trade fairs a number of market research tools are available which are provided by GfK Marktforschung under the name of GfK * TRADE * FAIR * CHECK The most important of these tools and their applications are described in the text below However banal the title of this article may initially sound it seems fully justified considering that it has been established that only one in three companies has formulated in advance clear objectives for exhibiting at a trade fair Hand on heart: the decision for or against participation in a trade fair still comes far too often “from the top of the head" Reasons for exhibiting which must serve to justify the budget for a trade fair include: “we have always been there" “because our competitors are there" “because our customers expect it" 74 The results are even less frequently systematically monitored and assessed to see whether the objectives however they may have been formulated were actually met The “success" of the performance at a fair was often measured by “there was always lots going on at the stand" “there were lots of people at the bar" or “a lot was offered to the visitors" Considering the unquestionably high costs of exhibiting at a fair which are deplored ever more often and ever more loudly this BRAND BRANDEQUITY BE pagination 74 5/17/05, 2:32 PM situation is shocking And one should really not be surprised if the company's controllers put the question in an increasingly sceptical form as to “whether the fair really does the business" This question is justified! And those with responsibility for fairs would do better to think about tools for monitoring the success of a company's performance than complaining about the “illwill of the controller" Figure 1 Corporate objectives objectives for trade fair participation quantitative objectives quantitative objectives • objectives for contacting • sales objectives • etc. • image and positioning objectives • presentational objectives • communications and information objectives checking extent to which objectives met Monitoring yes but what? Agreed: since there is no other marketing tool which can be used for so many different purposes and to achieve so many different objectives the monitoring of the success achieved at a fair is a challenging task This begins with the question of defining objectives: since a fair is a multifunctional marketing tool the objectives which themselves are to be derived from the company's goals must also be formulated in a multifunctional and multidimensional way (see Fig ) It is therefore all the more important to determine in advance the number of objectives for participation in a fair and then to quantify them so that they can be measured The statement “We wish to launch product XY" is insufficient It is instead necessary to express the objective in concrete terms: “We must show and explain our new XY product to at least people personally who are from relevant business areas and have the authority to buy" This provides the basis for determining whether the objectives of exhibiting in other words its success both in quantitative and qualitative terms can be assessed In doing this it is not sufficient just to undertake a posthoc assessment (“was participation in the fair worthwhile") Also it is very important for a company to be able to answer the question how in future performance at a fair can be optimised Monitoring yes but how? For both questions the posthoc assessment and future optimisation various research tools are available which make it possible to measure whether both financial/quantitative objectives and nonfinancial/qualitative objectives were met As a result of the increasing pressure to justify trade fair budgets models for assessing quantitative particularly financial success are very much in fashion The options run from standardised measurement tools such as for instance that of AUMA Ausstellungs und Messeausschuss der Deutschen Wirtschaft (The Exhibition and Trade Fair Committee for the German Economy) through to the socalled balancedScorecard Model (from the Trade Fair Institute at the Technical University of Chemnitz) and they are largely based on the analysis of available internal data Such models though can give insufficient attention to medium or longterm issues in the area of communications objectives and conclusions and data on future opportunities for optimisation are not available This is where it is necessary to work with external partners who can collect and analyse the necessary information and can also provide special tools which are designed to measure the success of the performance at a trade fair (see Fig ) The most important which are offered by GfK for instance in the form of a building block system under the name of GfK TRADE*FAIR*CHECK are briefly described in the text below Enumeration of the visitors to the stand: ascertaining the number of visitors The simplest and in contrast to the other research tools the most frequently used survey method comprises counting all the visitors to the stand If this number is compared with the number of visitors to the trade fair concerned then it is possible to confirm to what extent it was possible to interest the visitors to the fair in a company's stand or in the company itself (relative penetration) In Germany one company (FKM Gesellschafl zur freiwilligen Kontrolle von Messe und AussteHungzahlen) counts the total number of visitors at BRAND DEQUITY BE pagination 75 5/17/05, 2:32 PM 75 almost all the large German fairs The data is normally recorded at the level of day time and position so that “visitor peak periods" can be precisely identified and the appropriate planning of stand personnel resources can be undertaken With such a count it is important that not only leads (ie contact reports by stand staff) but also all visitors to the stand are recorded This is in other words simply a quantitative analysis which says nothing about the quality of the visitors Visitor surveys (“stand impact"): question on impressions made by performance at fair The purpose of interviews of visitors to the stand is mainly to assess the quality" of the visitors and also to form an important tool for planning and designing an exhibit to reflect the needs of target groups Together with surveys which take place after the fair they generally form the key element in qualitative assessments of the success of an exhibit Typical questions which are asked of visitors within the framework of a representative survey on the spot (or in part after the fair) cover for instance • when you visited the stand what objectives expectations and information needs did you have; • how long did you spend on the stand and on what subjects did you gather information and were your information needs met; • to what extent did you go onto the stand with concrete intentions in terms of purchase and investment or will they result from the visit; • how do you assess the exhibitor's stand/performance at the fair also in comparison with competitors; • what is the basis of your 76 Figure 2 Monitoring of success of trade fair participation Trade fair planning and preparation trade fair participation (realization) trade fair follow-up • target group definition • invitations, client contacts, appointments • press relations • number of visitors to stand (total/in relation to total number of visitors) • types of visitor • visitor activity • visitors’ information requirements and purpose of visit • visitors’ purchase/investment intentions • assessment of trade fair participation from visitors’ standpoint • comparison with competition • Process of leads • follow-up; despatch of literature offers etc. • impact in image terms of the stand 76 stand visits stand impact path analysis mystery visits visual audits post-trade fair-tests quantitative and qualitative assessment of participation lessons for next trade fair. relationship with the exhibitor (customer potential customer supplier etc) • where are you from (region business etc) and (with business visitors) what is your job and what authority do you have in your company to give just a few examples Additionally concrete questions can be discussed on the products and services on show and in this way the likely takeup of a new product can be assessed The results of these surveys therefore provide important information about the strengths and weaknesses of a company's performance at a fair Exhibitors already receive either during the fair or shortly afterwards concrete recommendations whether and to what extent they have reached certain target groups and how they can achieve greater success at future fairs Postfair tests: stable assessments and valid comparisons with the competition Surveys among stand visitors shortly after the end of a fair supplement and provide more detail than the stand survey and handle the results more objectively and therefore provide the second key component in the systematic assessment of the success of performance at a fair: time pressures at a fair permit only short mainly structured questionnaires which can be supplemented within the framework of a postfair test Secondly views expressed spon taneously at a fair may be modified later in the visit to the fair particularly when visiting competitors' stands or placed within a broader framework Surveys after the fair provide more stable results and also more valid comparisons with the competition Additionally lasting impressions and results from the BRAND BRANDEQUITY BE pagination pre-trade fair tests 5/17/05, 2:32 PM visit to the fair can only be assessed retrospectively (“What positive/negative aspects of your visit to the stand do you still retain?" “What impact did your visit during the fair have on your purchase decisions and on your image of the company?" etc) Therefore shortly after the end of the fair (usually a few days later) a sample of stand visitors is re contacted (their agreement and address were collected during their visit) by email in writing or by telephone This enables for instance the performance at the fair of the company concerned to be assessed retrospectively views to be expressed for instance on the competitive environment and decisions on planned purchases or on investments to be described The results in combination with the results from the stand survey provide a comprehensive picture on whether and to what extent the company reached its target groups met their information needs and whether their performance at the fair could be regarded as successful from the visitor point of view the exhibits be where are advisory staff needed? etc Path analysis: recording the actions of visitors on the stand Path analysis is a littleknown and up to now infrequently used research tool Unlike with a completely quantitative visitor count a path analysis measures the individual routes followed by visitors and as a result the footfall in the individual areas of the stand and also the products which were of interest to visitors For this purpose the visitors are followed or observed This makes it possible to ascertain where the visitors made a stop and for how long and what precisely they then did Mystery visits: assessment of stand personnel This technique is derived from mystery shopping methodology and serves primarily to evaluate the stand staff The objective is to identify suggestions for improving the way that the stand staff can provide its advisory function more effectively and can optimise its activities For this purpose specially trained personnel of the research company conduct conversations with stand staff following guidelines which had been previously prepared and then evaluate the various important characteristics (friendliness helpfulness putting over an argument etc) The results can for instance be used as a basis for training courses and workshops with (future) stand personnel so that presence and conduct on the stand can be the subject of focused training The main emphasis here is on what are called “soft skills" and much less The results which are usually presented in visual form (see example in Fig ) can be particularly helpful in planning stand designs the placing of exhibits and in planning how the stand personnel can be used: what subjects and which exhibits should be located where how big should Figure 3 Monitoring of competition at trade fair - example of results exhibitor stand activities and visitor frequency (weight=35%) observation AAA BBB 78 stand always well staffed, many visitors, business discussions continously taking place no business discussions at any time, youthfulness of staff noticable CCC many visitors particularly during shows; shows dominated stand activities; too few staff DDD few, but some serious business discussions; hardly any visitor on Tue/Thur main message (weights = 25%) score observation presentation atmosphere (weights=15%) stand design (weights = 25%) score 8 “AAA - we design factories”, 6 clear simple message, but lacking in detail observation professional, lighting colours and materials well matched, but lack of “activity’ score observation score 7 rather distant but professional; worked better on technical than emotional level 6 695 1 “BBB goes global” meaning only clear to clients, inappropriate as message 3 confused; innovative materials and LED displays; videos 6 impact “cool’ rather arrogant - > uninviting, innovative, but uninformative 5 335 4 no clear main message 0 stage for shows was centre-point exhibits were relegated to background; not enough displays 6 large number if visitors; too full; otherwise conventional amateurish, lack of signs/displays 4 330 cold and unwelcoming; dominated by technology 3 470 5 “we are leaders in innovation” - message easily understood, but not well realized throughout 6 disorganized impression; no info-bars; no special identity created; good mix of materials 4 BRAND BRANDEQUITY BE pagination 78 total score (weighted) 5/17/05, 2:32 PM Figure 4 Conclusion Fairs have a unique position in the marketing mix For many companies particularly in capital goods industries they are without doubt the most important marketing tool The high costs of exhibiting at a fair mean though that careful choices planning and monitoring of performance at the fair are necessary This requires: entrance 1 PATH - ANALYSIS - example of results information 1 information stand 1 terminals 5> 2> 1><1 1> <1 1><1 discussion forum 4> 4> 11> 4> 3><1 5> 1> 1><3 1> 1> entrance 2 3D display lottery, prize draws etc. <2 1> <2 2> demonstration area 1><3 information 2 information stand 2 5><1 connecting walkways <2 7><2 <1 1> 1> 4> 1> video projection information desk 1><2 4> 1> aquarium 1> <1 2> 8> 5> exit 1><1 4> 4> 1> web-terminals on the technical competence of the stand staff which with complicated products and services which need a high level of explanation cannot really be checked Competitive analysis (visual audits): neutral observers analyse the competition Fairs provide one of the best opportunities for competitive analysis since there on the spot not only can current products and so lutions be analysed but also the main competitors'marketing mix in terms of communications prices and distribution The opportunities this provides are usually underestimated The true situation is that often the monitoring of the competition is reduced to two or three members of the staff dashing over to the stands of the competition just shortly before the fair closes and collecting some brochures The company is therefore leaving important opportunities unexploited which would benefit from a more professional picture gallery approach: within the framework of avisual audit" as it is called a fully briefed neutral observer with relevant experience is despatched into the halls with a previously prepared checklist Using this checklist the performance at the fair of the various exhibitors is documented analysed compared and assessed (usually the most important of the client's competitors) The objective of this competitive analysis is to assess the performance of the individual firms from the point of view of an (objective) third party in terms of key message content and type of presentation as well as of the activities on the stand The task is to determine how the performance of the client at the fair is assessed in relative terms (see Fig ) The results of this analysis which are usually supplemented with a comprehensive record using still photos and videos help the client to develop a detailed understanding of the marketing communications of his competitors as well as to optimise his own performance at the fair defining the objectives for exhibiting at the fair measuring whether these objectives were met and analysing the results of the evaluation of whether performance was satisfactory and assessing them in terms of exhibiting at future fairs For this purpose a range of research tools are available which can make it possible to measure the success of performance at the fair in both quantitative and qualitative terms These research tools are still being used far too infrequently part of the reason for which is that there is certainly far too little understanding of the wide range of modern research tools which are available for measuring the success of exhibiting at a trade fair Finally to return to the subject of costs: a systematic assessment of the performance at a trade fair using the research tools described above naturally costs money But in comparison to the total costs of participating in a trade fair which depending on the size of the stand can easily reach a six digit Euro figure the costs of the research at three to five per cent of total fair costs are relatively small But if the costs can provide wellbased answers as to whether a fair does the business and on how exhibiting at fairs in future can be optimised then the costs are more than justified BRAND DEQUITY BE pagination 79 5/17/05, 2:32 PM 79