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