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James Selva - Brand Equity Magazine

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Contents<br />

MPH Amplifies the<br />

<strong>Brand</strong> Experience<br />

AMP: Flanking Strategy<br />

on the Cover<br />

Malaysian Tourism<br />

Gets a Boost Online<br />

A Clever Way to<br />

Break the Competition<br />

Barack Obama & the<br />

Power of Mobile<br />

Word of Mouth: A<br />

Primer from Vocanic<br />

Shoppers Switch to<br />

Cost-Saving Mode<br />

A Good Show<br />

from Radio<br />

Made to Delight<br />

<strong>Brand</strong>ed Tiles<br />

Synovate Tracks<br />

Affluent Malaysians<br />

Malaysian Consumers<br />

& the Economy<br />

<strong>Brand</strong> Ambassador on<br />

the Go<br />

Sports Sponsorship<br />

for Recognition<br />

Mainstream Media<br />

Leads Again<br />

<strong>Brand</strong>s ARE Playing<br />

with Our Minds<br />

02<br />

06<br />

11<br />

14<br />

16<br />

20<br />

24<br />

26<br />

30<br />

34<br />

36<br />

39<br />

42<br />

44<br />

47<br />

Editor’s Note<br />

This is not something we would like to hear, but proof<br />

points supporting the belief that many of our habits have<br />

been manufactured by companies and marketers are in.<br />

That chilling revelation and many more details are contained<br />

in Martin Lindstrom’s latest book Buyology: Truth and Lies<br />

About Why We Buy. We believe every brand builder must<br />

devour the contents; and we’re not harboring any intention<br />

to ‘manufacture’ reading habits here.<br />

This issue features Malaysia’s leading player in the radio<br />

sector. AMP is on the cover and the biography demonstrates<br />

how strategic flanking and consistent innovation can<br />

sustain competitive advantage.<br />

Whilst Malaysian’s are concerned about the economy,<br />

they can’t resist the temptation to shop. These and other<br />

interesting nuances have been revealed by Synovate<br />

Malaysia.<br />

Despite the free-for-all, radio adex has moved-up. The<br />

Nielsen Company reveals interesting facts & figures about<br />

the sector’s performance. And Internet penetration has<br />

doubled in five years; but traditional media continues to<br />

dominate the Malaysian media scene, reveals The Nielsen<br />

Company.<br />

So Barack Obama can thank mobile marketing for getting<br />

him elected. His decisive win is a lesson for brand marketers<br />

about how a well-planned and executed mobile campaign<br />

can change a brand’s fortunes.<br />

<strong>Brand</strong> Builders, be inspired – there are always innovative<br />

ways to change your brand’s destiny.<br />

Mindset check! Are you willing to change?<br />

Publisher : <strong>James</strong> <strong>Selva</strong> Executive Publisher : RT Selvii Publishing Director : RS Kumar<br />

Group Editor : CGN Raghunath (email:brandman@tm.net.my) Staff Writer : Chris Krishna<br />

Contributors : Martin Lindstrom, Mickey Alam Khan, Venkat<br />

Marketing Manager : R <strong>Selva</strong>n, Anenda Sharma Graphic Designer : VA Kanmani, AV Shantini<br />

Dtp Artist : S Savithri IT Executive : Vani Sri Administration : Kavitha<br />

Printed By :Sampoorna Printers Sdn Bhd. No1, Jalan TIB 1/19 Taman Industri<br />

Published by:<br />

perception<br />

media<br />

Bolton 68100 Batu Caves, Selangor.<br />

PP11255/4/2008<br />

Perception Media Sdn Bhd<br />

3-3, Jalan 11/48A, Sentul Raya Boulevard,<br />

51000 Kuala Lumpur<br />

Tel : 03 4043 0500 Fax : 03 4043 7648<br />

www.brandequity.com.my<br />

A Member Of:<br />

1


Retail Experience<br />

Like to be assured? While books may<br />

seem to be at the center of MPH’s<br />

retailing universe, the brand has tweaked<br />

its retail mix to include features that<br />

reflect its commitment toward amplifying<br />

the customer’s experience.<br />

Among others, a quaint in-house deli<br />

fittingly branded ‘Book Café’ has become<br />

2<br />

The<br />

Experience<br />

Matters,<br />

Always!<br />

MPH no longer retails<br />

books; in a manner of<br />

speaking that is!<br />

By Venkat<br />

a standard fixture at key MPH branches.<br />

And MPH has come of age, with a firm<br />

grip on changes that are impacting their<br />

customer’s lives.<br />

Built on the back of a solid heritage<br />

that almost hits a century, the 1st retail<br />

outlet of the then Methodist Publishing<br />

House opened doors in Stamford Road,<br />

Donald Kee<br />

Enrichment Beyond Knowledge


Children can indulge in an environment<br />

that encourages them to read, participate<br />

in activities or simply hang out.<br />

Singapore. That was in 1908. The business<br />

went public in 1927, and subsequently<br />

morphed into the chain that it is today.<br />

Over time, a makeover in identity gave<br />

birth to ‘Malaysia Publishing House’; and<br />

the iconic ‘MPH’ is now a 28-strong retail<br />

network in Malaysia, with 4 in Singapore<br />

as well.<br />

Value Proposition<br />

‘What differentiates our brand from the<br />

typical bookshop is that we sell a total<br />

experience instead of books. The key is<br />

to ensure that our customer can enhance<br />

his or her quality of life through the MPH<br />

brand. And that by itself goes beyond<br />

books. Our key value proposition to<br />

our customers is that we aim to deliver<br />

enrichment beyond knowledge,’ says its<br />

chief operating officer Donald Kee.<br />

The retail chain now boasts the inclusion<br />

of megastores in three locations. ‘These<br />

pioneering lifestyle branches has helped<br />

transform our brand proposition into<br />

reality for all of our customers,’ adds<br />

Donald.<br />

And given the target profile, MPH is<br />

operating in a customer space that can<br />

offer considerable challenges. ‘Our brand<br />

appeals to the 25 to 35 year olds and<br />

predominantly young families as well.<br />

They are educated, overseas traveled and<br />

committed to their children’s education.<br />

In addition, most of our customers belong<br />

to the middle to higher income bracket,’<br />

says Donald.<br />

The MPH <strong>Brand</strong> Experience<br />

Among others, a members-only lounge<br />

accords the kind of privilege that<br />

customers expect these days. A time-off<br />

at the Book Café is offered as a welcome<br />

feature of the total brand experience.<br />

And there’s more. Launching a<br />

compendium of recipes? Amplify the<br />

experience with the inclusion of a Chef<br />

who can whip-up a delectable variety<br />

in the megastore’s very own and wellendowed<br />

kitchen.<br />

‘We do, on occasion engage the right<br />

people to take the lead in story telling<br />

sessions, and speak their mind on<br />

specific topics. This helps our customers<br />

to relish the store experience and enrich<br />

themselves in the process,’ says Donald.<br />

And in the Kidz Zone, children can function<br />

in an environment that encourages them<br />

to read, participate in activities or simply<br />

hang out. Their experience is peppered<br />

with value discounts, newsletters, special<br />

offers and regularly planned activities.<br />

Customer Retention Strategy<br />

As always, the intent must be to convert<br />

customers into brand advocates. Retention<br />

initiatives at MPH are channeled through<br />

3


two distinct clubs – MPH Reader’s Circle<br />

and MPH Kid’s club. And members are<br />

constantly engaged through attractive<br />

deals, events, newsletters, email alerts<br />

and other pertinent activities.<br />

Book Hive, a quarterly magazine for<br />

children offers sneak previews of books<br />

due on shelves and information about<br />

activities for members. The store’s indoor<br />

4<br />

‘We are mindful of the change that<br />

is taking place, particularly in the<br />

digital space.’<br />

or outdoor programs (held at times<br />

in places such as Bird’s Park) help to<br />

generate interest in books and inculcate<br />

the reading habit in children from a young<br />

age.<br />

In addition to such initiatives, special<br />

rebates are offered when customers<br />

purchase books at any of their stores.<br />

The 51st Merdeka special promotion was<br />

a case in point.<br />

<strong>Brand</strong> Communications<br />

And brand communications is no longer<br />

confined to traditional media. ‘We employ<br />

a mix that reflects our customer’s living<br />

nuances,’ says Donald.<br />

While press advertising is somewhat of a<br />

given, SMS and email advertising is fast<br />

becoming the norm for MPH. Monthly<br />

newsletters are circulated to members.<br />

Co-branding and sponsorships for<br />

relevant events have become an indelible<br />

part of the MPHs’ brand communications<br />

strategy.<br />

And mphonline is in operation. Whilst<br />

Donald concedes that revenue from the<br />

format will be subdued for the moment,<br />

he believes that the investment will<br />

deliver high ROI in the long run.<br />

‘We are mindful of the change that is<br />

taking place, particularly in the digital<br />

space. Getting customers to source for<br />

and order through PDAs and mobile<br />

phones would be something to consider.<br />

It delivers that much needed value while<br />

enhancing their purchase experience as<br />

well,’ says Donald.


ad for bq.indd 7 12/9/08 9:25:16 AM


Cover Story<br />

Unapologetically<br />

Different?<br />

Riding the streets<br />

6<br />

Lite FM gives to kids<br />

Why Not?<br />

By Raghunath<br />

When successful corporations express<br />

their confidence, many may allude to the<br />

choice of words as defiantly reeking of<br />

corporate arrogance.<br />

But we live in times when people can spot<br />

and pooh-pooh any sort of spin; whilst<br />

in-your-face comebacks are becoming<br />

more acceptable. But at times, you’ve<br />

got to take a stand. So let’s shove the<br />

cynic aside, and you can hear hordes of<br />

supporters urging, ‘Say it with panache<br />

Bro...!’<br />

When Airtime Management &<br />

Programming (AMP) declares ‘The AMP<br />

Advantage, Unapologetically Different’…<br />

for sure it expresses their self-belief, and<br />

unbridled confidence.<br />

Perhaps ‘unapologetic’ because they’ve<br />

secured the ears of 11 million listeners<br />

nationwide; and each week some six out<br />

of ten listeners tune in to any of their<br />

eight radio stations.<br />

What’s up with the ‘different’ part?<br />

Well, they seem to churn out innovative<br />

solutions that engage listeners and<br />

advertisers as well.


AMP was the first to take to the streets with<br />

attractive vehicles. The aim is to interact with<br />

radio listeners on the street and to act as a<br />

sampling arm to distribute products free!<br />

In the Beginning & Line-Up<br />

Time for that backgrounder. For the<br />

uninitiated, AMP is a subsidiary of ASTRO,<br />

and the corporate facade of eight popular<br />

FM radio stations (see profile, last page<br />

this story). And the first station took to<br />

the air in 1997.<br />

Fact is; AMP was the first to introduce<br />

format programming. The stations<br />

broadcast every possible genre in all<br />

popular languages, granting it the benefit<br />

of engaging every sizable demographic<br />

and psychographic target in Malaysia.<br />

Fun with mix.fm<br />

It’s a line-up that demonstrates how the<br />

power of flanking executed by a market<br />

leader can deliver strategic advantages.<br />

If there is a listener gap, chances are<br />

that AMP has plugged it. But will that<br />

guarantee a tenable advantage? That<br />

depends!<br />

These guys are not only up against<br />

formidable direct competitors, but have<br />

to deal with shifting technological and<br />

cultural dynamics, and the persistent<br />

push by indirect competitors to grab<br />

more advertising dollars.<br />

Lions in the Arena<br />

Despite the stacked-up advantage, AMP<br />

is up against formidable competition. The<br />

intimidating line-up includes a strong<br />

Media Prima (a media conglomerate that<br />

has its tentacles in print, TV, outdoor,<br />

events and radio), over 30 governmentowned<br />

national as well as regional radio<br />

channels, and boutique stations such<br />

as Capital FM, Bernama’s Radio 24 and<br />

among others, Manis FM.<br />

Pointedly, Media Prima has made striking<br />

gains in the radio arena; its Hot FM is hot<br />

on the heels of ERA, while Fly FM tries to<br />

play catch-up with hitz.fm.<br />

And lately, RTM refreshed their lineup;<br />

while new stations got into the fray.<br />

Innovation at AMP<br />

Radio is no longer a ‘just<br />

switch-on, spin-it and broadcast<br />

medium’. On-air and off-air<br />

activities have become equally<br />

vital, and complement oneanother<br />

to intensify as well<br />

as expand the experience for<br />

listeners.<br />

And the mix has to be very ‘multi’<br />

– multi-platform, multi-media,<br />

multi-activity to deliver that great<br />

brand experience.<br />

So what does the ‘brand<br />

experience’ include? The<br />

audience listens, and gets the<br />

opportunity to call in. They can<br />

express their views, call-in to<br />

inform happenings or participate<br />

in a contest. And there’s always<br />

the interactive platform of station<br />

websites, mobile, on-ground<br />

activities and other events to<br />

hold their attention.<br />

AMP was the first to take to the<br />

streets with attractive vehicles.<br />

The aim is to interact with radio<br />

listeners on the street and to act<br />

as a sampling arm to distribute<br />

products free! To date, AMP<br />

has eight different vehicles<br />

supporting the seven main FM<br />

networks.<br />

And advertisers would love to<br />

maximize reach, touch and<br />

impact. Like others, AMP offers<br />

advertisers solutions that bundle<br />

on-air, online, mobile and onground<br />

products. The media<br />

owner claims leadership in media<br />

bundling opportunities.<br />

7


Put it all together and you are treated to<br />

audience fragmentation; thus amplifying<br />

the urgency for managing listener<br />

attrition and loyalty.<br />

There’s more – include the plans of<br />

media owners outside the radio space.<br />

The Outdoor Boys will swear by their<br />

medium. Or just ask print and TV media<br />

owners and they will list their unequivocal<br />

advantages over every other medium;<br />

and of course, insist that your media ROI<br />

will ascend with them. It’s vicious.<br />

And let’s not forget the Telcos for<br />

instance. Expect radio listeners’ to shift<br />

in droves if they decide to channel more<br />

juicy content to subscribers in a pact<br />

with an appropriate partner. And young<br />

listeners are a vulnerable lot.<br />

It doesn’t look nice! Still, it heightens<br />

the need for more and more innovation if<br />

media owners such as AMP like to holdon<br />

to listeners; exactly what they’ve been<br />

up to.<br />

Off-Key Solutions for Advertisers<br />

Its fair to suggest that vanishing gradually<br />

are days when a brand can get loud with<br />

a mere jingle over the radio. Sic! Selected<br />

AMP cases-in-point follow.<br />

Maxis Communications, the leading<br />

Telco operator wanted to promote<br />

Barclays Premier League (BPL), and<br />

deliver the ultimate football experience.<br />

A partnership was struck with AMP’s<br />

ERA and hitz.fm to organize the Maxis<br />

Football Speedmaster Challenge.<br />

8<br />

The traffic team headed by Priscilla Patrick<br />

Maxis, the official Broadcast Sponsor of<br />

BPL together with AMP sent 10 lucky<br />

winners to watch the game’s finals in<br />

London. The entire activity involved the<br />

use of radio, mobile, internet, and onground<br />

activities.<br />

Perodua wanted to celebrate 50 years of<br />

independence with the community and<br />

promote the Perodua brand as well as<br />

the new Perodua Viva.<br />

Indie Band Funk Face<br />

The solution: Perodua partnered with<br />

AMP’s ERA, reached out to 50,000<br />

listeners all around Malaysia, and spread<br />

joy and patriotic spirit. It was done in<br />

style – ERA’s breakfast crew traveled all<br />

around peninsular Malaysia in a Perodua<br />

Viva each, making their way to high<br />

traffic areas. The team distributed 50,000<br />

limited edition ‘ERA 50,000 Mission,<br />

Powered by Perodua Viva’ postcards.<br />

The postcards enabled the listeners to<br />

call in every morning, for the chance to<br />

win RM300. And to top that, one lucky<br />

winner won the grand prize of RM3000,<br />

courtesy of Perodua of course.<br />

Magnum Corporation and AMP’s THR<br />

Raaga held the Magnum THR Raaga<br />

Charity Concert 2008 at Penang<br />

International Sports Arena with a strong<br />

audience of over 9,000!<br />

The audience, sponsors and media<br />

helped collect a total of RM 49,247.70 for<br />

two orphanages in Penang.<br />

AMP’s Internal Advances<br />

Amidst everything, the media owner has<br />

been paying attention to its own brand<br />

repertoire, refreshing the stable when<br />

AMP Consulting is charged with<br />

developing short term tactical campaigns,<br />

or cost-effective long term brand-building<br />

campaigns for clients.<br />

necessary. And there have been other<br />

allied internal innovations as well.<br />

Xfresh kicked-off as a teen community in<br />

2001, the initiative became a radio brand<br />

by 2004; and a magnet for local talent,<br />

giving them the kind of exposure they<br />

need to take-off and succeed.<br />

While hitz.fm rebranded to become


Malaysia’s 1st interactive radio station in<br />

2001, Lite & Easy made way for LiteFM<br />

in 2006.<br />

Heard about AMP Consulting? Its charged<br />

with developing among others, short<br />

term tactical campaigns, or cost-effective<br />

long term brand-building campaigns for<br />

clients.<br />

And AMP’s state-of-the-art studios,<br />

completed in 2006 have 3 webcams<br />

each to provide content over the ASTRO<br />

channels if they so wish, as well as<br />

webcasts.<br />

And a secure facility contains servers<br />

that holds a library of over 50,000 songs.<br />

The internal archive is a step in the right<br />

direction because most old music in<br />

Malaysia, recorded between the 40s and<br />

70s are yet to be archived.<br />

The Jakeman Spins<br />

MY FM announcers in costume<br />

In 2007 AMP became the first radio<br />

company in Malaysia to broadcast<br />

crawlers and clients’ messages to<br />

listeners FM car stereos via Dynamic<br />

RDS (radio data system); a move that<br />

secured the interest of competitors.<br />

What the Future Holds<br />

Despite all the talk about a burgeoning<br />

digital domain, radio ad revenues have<br />

been ascending.<br />

According to The Nielsen Company, a<br />

total of 15 million people tune-in weekly<br />

to the radio, representing 92 percent of<br />

the total population of people aged 10<br />

years and above in Peninsular.<br />

Granted, radio has mass appeal and<br />

seems to be resilient in an environment<br />

replete with hordes of media options<br />

for advertisers.<br />

And for those in radio broadcasting<br />

– must ‘radio’ remain their core<br />

business? ‘Somewhat’ is better than<br />

an accentuated ‘Yes’.<br />

Dump ‘Yes’ because that takes a myopic<br />

view of the entire business when nontraditional<br />

competitors can flash their<br />

deadly fangs (even an escalator in a<br />

high-traffic property has become an<br />

advertising medium of sorts).<br />

And bear in mind that a sizable young<br />

population in Malaysia is a gold mine<br />

waiting to be engaged. Their reading,<br />

viewing and listening habits have<br />

changed given their association with<br />

the ubiquitous mobile phone.<br />

Point is – what does that mean for<br />

AMP? Well, they have been innovative<br />

thus far. The challenge lies in ensuring<br />

that consistent innovation remains at<br />

the center of everything they decisively<br />

do for listeners and advertisers.<br />

9


AMP’s Repertoire: A Snapshot<br />

Radio Station <strong>Brand</strong><br />

10<br />

www.hitz.fm www.mix.fm www.litefm.com.my www.era.fm<br />

Target Audience 10 to 29 years old 25 to 39 years old 35 – 49 years old 18 to 34 years old<br />

Positioning<br />

Statement<br />

A Word from Those in<br />

Charge<br />

Radio Station <strong>Brand</strong><br />

Target Audience<br />

Positioning<br />

Statement<br />

A Word from Those<br />

in Charge<br />

Malaysia’s #1<br />

Hit Station<br />

Program Manager<br />

Brian Vinesh Veeriah<br />

says, ‘This is the station<br />

for all the hits and<br />

you must check out the<br />

new hitz.fm morning<br />

crew, now with<br />

JJ and Ean. They are<br />

like Mexican jumping<br />

beans fully fuelled with<br />

coffee. Cool, and Trend<br />

setting, playing all the<br />

hitz.’<br />

‘Mornings are whacked<br />

out with the morning<br />

crew kick starting your<br />

day like a slingshot to<br />

the other side of the<br />

moon,’ says Music<br />

Executive Uno.<br />

Malaysia’s Best<br />

Variety<br />

‘We are contemporary<br />

and bubbly.<br />

MIX fm reaches out<br />

to a sophisticated<br />

fan base with an<br />

eclectic mix of radio<br />

personalities, playing<br />

your favourite music<br />

from the 80s to<br />

today,’ says Program<br />

Manager Anushia.<br />

Famous For The 80’s<br />

‘Nostalgia lives on<br />

LiteFM now with the<br />

best songs from the<br />

80s. And when you<br />

think reminiscing<br />

about the yesteryears<br />

is good enough,<br />

LiteFM gives current<br />

information and<br />

tips, so even when<br />

the music is backdated,<br />

LiteFM keeps<br />

you updated,’says<br />

Program Manager<br />

Ramesh Mark Sankey.<br />

TM<br />

Rentak Muzik Terkini<br />

(Latest Music Trends)<br />

Says Program Manager<br />

Nazri Noran,<br />

‘ERA is the pioneer<br />

of Bahasa Malaysia<br />

format radio for 10<br />

years. Championing<br />

local music and<br />

entertainment, with<br />

a mixture of Indonesian,<br />

international<br />

music, and the latest<br />

trends.’<br />

www.my.com.my www.sinar.fm www.xfresh.com www.thr.fm<br />

18 to 34 years old 35 to 49 years old 10 to 24 years old 18 to 39 years old<br />

(Raaga)<br />

20 to 39 years old<br />

(Gegar / Hindi<br />

Power)<br />

Great Music,<br />

Great Company<br />

Senior Program Manager<br />

Roland Lee says<br />

that the station offers<br />

fresh and entertaining<br />

Chinese adult contemporary<br />

music with<br />

friendly announcers on<br />

air always. ‘We often<br />

bring the hottest Asian<br />

acts to town,’ he adds.<br />

Muzik Retro Terbaik<br />

(The Best of Retro<br />

Music)<br />

‘SINAR experienced a<br />

solid growth in 2008.<br />

It can only be attributed<br />

to the brilliance<br />

of SINAR pagi team,<br />

our established lineup<br />

of announcers,<br />

and of course, the<br />

music that we play.<br />

The best of retro music<br />

from the 70’s and<br />

80’s in English and<br />

Malay’, says Program<br />

Manager Rostam<br />

Zulkhairi Said.<br />

Kami tak hot, kami<br />

cool!<br />

‘We broadcast 100%<br />

new sounding Malaysian<br />

Music. Fresh,<br />

new, kick a@$! young<br />

Malaysians rock it<br />

with XFM, the only<br />

station that plays<br />

100% Malaysian<br />

music. XFM turns<br />

down the temperature,<br />

and keeps it<br />

cool. That’s why,<br />

‘Kami tak hot, kami<br />

cool!’ says Program<br />

Manager Adly Syairi<br />

Ramli.<br />

THR Raaga:<br />

Aaha...Sirantha Isai<br />

THR Gegar:<br />

Permata Pantai<br />

Timur<br />

THR Raaga’s<br />

Program Manager<br />

Ramesh Periasamy<br />

says, ‘Raaga offers<br />

a selection of Tamil<br />

music that includes<br />

urban, pop, folk and<br />

semi classical from<br />

80’s, 90’s and now.’<br />

Azaari Atan, THR<br />

Gegar’s Program<br />

Manager says,<br />

‘THR Gegar plays<br />

adult contemporary<br />

and traditional<br />

music. Gegar also<br />

strives to inculcate<br />

values identified<br />

closely with Malay<br />

cultural nuances.<br />

Gegar’s Hindi Power<br />

segment is popular<br />

amongst Malay<br />

listeners.’


e-Marketing<br />

Of late, travelling has been facilitated<br />

by the proliferation of a myriad of<br />

e-portals. The problem is that those<br />

that need relevant information must<br />

spend considerable time browsing the<br />

online environment.<br />

Often, a red flag pops-up when<br />

reliability is in doubt. Among others,<br />

a portal may need the backing of a<br />

Tourism<br />

Malaysia<br />

and the<br />

e-Platform<br />

A Technology Company is Harnessing the<br />

Power of the Domain to Support Malaysia’s<br />

Travel and Tourism Indistry<br />

By Venkat<br />

reliable supporter in order to prop-up its<br />

own credibility.<br />

Let’s train the spotlight on 2 portals –<br />

Virtual Malaysia, a home-grown tourism<br />

portal for avid travelers worldwide,<br />

and myTOURS, a consolidated tourism<br />

e-business portal that unites government<br />

agencies, various sectors of the travel<br />

industry, and consumers.<br />

Rohizam Md Yusoff<br />

11


‘We are currently riding on the back<br />

of an increase in demand for onlinetriggered<br />

travel from consumers from<br />

all over the world.’<br />

‘We have, over the past decade deployed<br />

a mix of technology and industry<br />

experience to operate a one-stop portal<br />

for all stakeholders operating within the<br />

tourism and travel sector,’ said Rohizam<br />

Md Yusoff, the CEO of Creative Advances<br />

Technology (CAT), and the inspiration<br />

behind Virtual Malaysia and myTOURS.<br />

The Model<br />

Whilst virtualmalaysia.com is the official<br />

e-tourism portal for the Ministry of<br />

Tourism, Malaysia, mytours.com.my<br />

brings together several stakeholders<br />

under one platform – travel agents,<br />

airlines, hotels and travel suppliers.<br />

‘We are currently riding on the back of an<br />

increase in demand for online- triggered<br />

12<br />

travel from consumers from all over<br />

the world,’ said Rohizam. He added that<br />

the success of myTOURS relies on its<br />

three ‘Cs’ – Commerce, Content, and<br />

Community.<br />

‘Commerce helps travel agents and<br />

travel suppliers connect with each other<br />

whether they are inside or outside of<br />

Malaysia and spur the travel industry to<br />

grow faster than ever,’ said Rohizam.<br />

‘Content is a centralised data warehouse<br />

which provides extensive travel destination<br />

information, event coverage, travel<br />

planner to all myTOURS subscribers.<br />

This is the ‘sticky’ side of our website.’<br />

‘Community is riding on the growing trend<br />

of user-generated content in the Web 2.0<br />

boom. Users are able to comment and<br />

share about their experiences on travel<br />

products or services and even advice<br />

other travellers on places that they have<br />

visited,’ he added.<br />

And the intent of Virtual Malaysia and<br />

myTOURS? To deliver maximum visibility<br />

for Malaysia worldwide.<br />

<strong>Brand</strong>ing and Promotions<br />

Whilst myTOURS remains at best a recent<br />

entrant, its associate Virtual Malaysia has<br />

made considerable inroads into the minds<br />

of consumers worldwide.<br />

‘We have benefitted considerably as<br />

Tourism Malaysia’s exclusive official<br />

information hub. Our brand identity is<br />

featured prominently in every campaign<br />

undertaken by the Ministry of Tourism,’<br />

said Rohizam.<br />

And 30 million monthly hits is offered<br />

by Rohizam as a credible proof point<br />

to confirm Virtual Malaysia’s global<br />

recognition. ‘The exclusivity of our portal


A newsletter enables subscribers to keep abreast<br />

of happenings besides helping to advertise and<br />

promote their services<br />

is maintained by carrying only tourismrelated<br />

information,’ he added.<br />

‘Almost 80% of our traffic comes through<br />

search engines. We consistently harness<br />

the power of search marketing for<br />

directing traffic to us,’ said Rohizam.<br />

Interesting Nuances<br />

Rohizam said that the behavior of<br />

consumers online helps enhance content<br />

and configuration from time to time. In<br />

addition, participating stakeholders are<br />

also supplied with vital information they<br />

can take advantage of.<br />

Some known nuances include:<br />

Taking note of miss-spelt keywords helps<br />

direct traffic. Often, Singaporeans missspell<br />

Cameron Highlands as ‘Cameroon’.<br />

Targeting this miss-spelt keyword can<br />

direct Singaporeans to Malaysia.<br />

Search patterns of visitors can vary from<br />

season to season. Australians typically<br />

search for beach holiday destinations in<br />

Malaysia but opt for Batu Caves early in<br />

any given year.<br />

Visitors spend on average 8 weeks to buy<br />

a travel plan. And it is done in a phased<br />

manner.<br />

‘Knowing such timelines allows smart<br />

marketers to dovetail their messages into<br />

the buying process at the right time,’ said<br />

Rohizam.<br />

The trade has to be managed as well. A<br />

newsletter enables subscribers to keep<br />

abreast of happenings besides helping to<br />

advertise and promote their services.<br />

And last year during an e-marketing<br />

conference for industry players,<br />

representatives from Google were<br />

invited to share their views about taking<br />

advantage of the online environment<br />

for generating more travel and tourism<br />

business.<br />

Moving Forward<br />

In Malaysia, CAT had signed-up 50<br />

inbound travel operators, airlines, hotels<br />

and travel suppliers for the myTOURS<br />

platform.<br />

With the success of myTOURS in<br />

Malaysia, CAT has introduced the portal<br />

to prominent outbound travel operators<br />

in Singapore and other countries to<br />

enhance trade relations with Malaysian<br />

inbound travel operators’ products and<br />

promotions.<br />

‘In time we will expand our footprint to<br />

include several countries in the Middle<br />

East and Europe,’ said Rohizam.<br />

13


Rip the Competition<br />

Some years ago, an Australian takeout<br />

Pizza Place used the Internet in an<br />

attempt to boost sales. Traffic was slow.<br />

Hardly anyone visited the site. The need<br />

for an increase in traffic was urgent.<br />

If traditional online media planning had<br />

been used, banners and links would have<br />

been purchased and the URL added to<br />

the shop’s phone-book entry. It might<br />

even have invested in some traditional<br />

ads.<br />

14<br />

How to<br />

Rip the<br />

Competition<br />

in One Go<br />

By Martin Lindstrom<br />

The Pizza Place went a different route.<br />

Instead of spreading money between<br />

off- and online ads, it spent the entire<br />

budget on radio. The spots were simple<br />

but extremely effective. So effective, the<br />

restaurant’s increased business caused<br />

most of the local competition to shut<br />

down.<br />

How’d it do it?<br />

Instead of offering discounts or merely<br />

promoting its URL, the Pizza Place’s<br />

Quarter of the<br />

world’s brands have<br />

not incorporated<br />

their URLs into the<br />

message customers<br />

hear on the phone<br />

while on hold.


More than half of today’s brands have yet<br />

to optimize the way search engines secure<br />

consumer awareness of their existence.<br />

radio ads asked listeners to tear out all<br />

the pizza-restaurant pages from their<br />

yellow pages and bring them in. In return<br />

for the pages, customers received a free<br />

pizza of their choice and a sticker with the<br />

restaurant’s URL.<br />

Very clever!<br />

Because the contact information for all<br />

the other pizza joints in town disappeared<br />

from customers’ primary reference<br />

source, only one set of contact details<br />

was left in households that complied: the<br />

URL for the restaurant that dreamed up<br />

the promotion. That single outlet is now<br />

a franchise.<br />

Creating traffic is not necessarily a matter<br />

of buying ads or taking a traditional<br />

approach. Of course, there’s always room<br />

for traditional thinking. It works and<br />

always will. But if you really want to build<br />

effective traffic and branding, go one step<br />

further. That is, unless you’re a Microsoft<br />

with an almost unlimited marketing<br />

budget.<br />

Generating traffic combines traditional<br />

thinking with three idea-based elements.<br />

The idea is crucial. First, create the idea<br />

as the local Pizza Place did. Develop an<br />

idea that not only generates attention<br />

but also generates appropriate attention<br />

- attention that enables people to<br />

remember the information that engaged<br />

them and to act on it.<br />

You’ll never forget the pizza story, right?<br />

The idea (removing the pizza pages<br />

from the yellow pages) is simple, clever,<br />

cheap, and audacious.<br />

Second, promote the idea via traditional<br />

off- and online channels and via new<br />

channels. The effectiveness of every<br />

piece of your communication is increased<br />

tenfold if each promotes that pivotal<br />

idea rather than simply touting some<br />

special offer, new taste sensation, or new<br />

product.<br />

Third, optimize any channel you use<br />

and ensure the message points in your<br />

direction.<br />

I don’t need to remind you more than half<br />

of today’s brands have yet to optimize the<br />

way search engines secure consumer<br />

awareness of their existence.<br />

A quarter of the world’s brands have not<br />

incorporated their URLs into the message<br />

customers hear on the phone while on<br />

hold. Nor have they added standard<br />

signature lines to emails that include the<br />

company URL. These details amount to<br />

free branding.<br />

What’s more important?<br />

The chicken or the egg? Both. Far too<br />

many brand builders believe traffic is<br />

secondary to site development.<br />

Wrong.<br />

Unless you have an unlimited budget, you<br />

can’t afford not to think creatively. You<br />

risk ending up like all those vanquished<br />

pizza competitors.<br />

Martin Lindstrom is the author of Buyology –<br />

Truth and Lies About Why We Buy, BRAND<br />

sense and BRANDchild and an advisor to global<br />

brands including McDonald’s Corporation,<br />

Procter & Gamble, Nestlé, Microsoft, The Walt<br />

Disney Company and GlaxoSmithKline. Visit<br />

MartinLindstrom.com.<br />

15


Mobile Strategy<br />

How much satisfaction should mobile<br />

marketers have today that the man<br />

elected to become the 44th president of<br />

the United States proved beyond doubt<br />

the ability of mobile marketing to effect<br />

sweeping change?<br />

For when President-elect Barack Obama<br />

takes the oath of office on that cold<br />

January morning, he will have proved<br />

to the nation and the world that the<br />

combination of mobile and the Internet<br />

with door-to-door canvassing can elect<br />

16<br />

A Victory<br />

for Obama,<br />

a Victory for<br />

Mobile<br />

By Mickey Alam Khan<br />

an intelligent person to the highest office<br />

without regard to color, experience or<br />

heritage.<br />

All it required was hope and optimism in<br />

the face of daunting challenges ahead,<br />

and a willingness to take risk – with an<br />

atypical message and powerful platforms<br />

such as mobile and the Internet.<br />

Marketers have a lot to learn from the way<br />

the young senator’s campaign harnessed<br />

the imagination and stirred the emotions<br />

The Obama<br />

campaign sits<br />

on millions of<br />

names in its<br />

opted-in mobile<br />

database.


The SMS texts proved that the Obama<br />

campaign didn’t take the candidate’s<br />

growing popularity for granted.<br />

of millions of Americans through mobile.<br />

They should study how this campaign<br />

aroused passion and anticipation through<br />

160 characters sent at the right time to<br />

the right audience.<br />

Voters young and old willingly donated<br />

small and not-so-small sums via the<br />

Internet to fuel the movement for change<br />

and willingly parted with their mobile<br />

phone numbers as a show-of-hands for<br />

the grassroots effort that the ‘Yes, We<br />

Can’ movement required.<br />

Textbook campaign<br />

Mobile Marketer regularly followed the<br />

Obama campaign’s use of mobile. For<br />

those who signed up, the text alerts from<br />

short code 62262 (OBAMA) were friendly<br />

and earnest. It didn’t look like a senator<br />

was messaging from on up high, but<br />

someone that you would know sending<br />

a friendly message asking for your<br />

support.<br />

The SMS texts proved that the Obama<br />

campaign didn’t take the candidate’s<br />

growing popularity for granted. Every<br />

opted-in mobile consumer counted, every<br />

text endeared with an appealing call to<br />

action.<br />

The texts came with familiar<br />

regularity...<br />

...Just before a local appearance, before<br />

the debates, before the final primary<br />

contest between Senators Hillary Clinton<br />

and Obama.<br />

In what will be remembered as a turning<br />

point in mobile marketing history – and it<br />

is marketing, because that is what politics<br />

is, the marketing of ideals personified by<br />

the candidate – the announcement of<br />

Senator Joe Biden as Mr. Obama’s vice<br />

presidential pick set the standard for<br />

the excitement that a text message can<br />

create.<br />

More than 2.9 million text messages<br />

were said to have been sent out on<br />

that particular occasion. The Obama<br />

campaign has never really released the<br />

size of its mobile database, but the Biden<br />

announcement goes down in history as<br />

the largest mobile marketing push by<br />

text, at least to date.<br />

The Obama campaign sits on millions of<br />

names in its opted-in mobile database.<br />

Many more names lie in its Internet<br />

database, accounting for a large chunk<br />

of the $650 million in funds that the<br />

campaign raised to elect an eloquent and<br />

inspiring man to the White House.<br />

Know the code<br />

This acticle does not lean Democratic or<br />

Republican. It leans ethical marketing<br />

and mobile. The praise for Presidentelect<br />

Obama comes not from a plank, but<br />

for his understanding that consumers –<br />

voters, in this case – want to be part of<br />

the story. Mobile is their lifeline to the<br />

outside world.<br />

The Republican campaign, for some<br />

strange reason, didn’t get that. The<br />

Republican Party is known for its<br />

grassroots efforts. Its strategists are<br />

adept at mining the electoral database<br />

to a point of perfection. But they failed<br />

to enlist the enthusiasm of consumers<br />

through the most powerful medium of<br />

communication today – mobile.<br />

In fact, when penning stories on the<br />

Obama mobile efforts, we tried each time<br />

to be fair and see if the McCain campaign<br />

changed its attitude to mobile marketing.<br />

It never happened. For example, the<br />

McCain short code for SMS signups was<br />

hard to find on johnmccain.com.<br />

The world only became aware of<br />

the McCain short code at the party’s<br />

convention in St. Paul, MN. And that SMS<br />

appeal was directed to donating to the<br />

American Red Cross via text for victims<br />

of the hurricanes brewing in the South.<br />

Even the Obama campaign pitched the<br />

same $5 text donations to the Red Cross,<br />

so there wasn’t a point of differentiation.<br />

Take the run-up to the elections. Here’s<br />

what short code 62262 had to say in a<br />

text message at 2:53 p.m. EDT on Oct. 30:<br />

‘Less than a week until Election Day on<br />

Nov. 4th! Barack needs your help. REPLY<br />

to this msg with your 5 digit ZIP CODE for<br />

local Obama news and voting info.’<br />

Four days later, this writer received<br />

another text message at 3:15 p.m. EDT<br />

on Nov. 3 from short code 46708: ‘Put<br />

your country first and vote on Tuesday! To<br />

find your polling location visit Gop.com/<br />

ElectionDay. Forward to your friends.’<br />

17


Mr. Obama’s election should inspire<br />

marketers to take risks and include<br />

mobile and the Internet in their media<br />

and marketing plans.<br />

That message didn’t even mention<br />

the Republican presidential candidate<br />

John McCain by name. Where was the<br />

emotional appeal? Why wasn’t there a<br />

stronger call-to-action?<br />

Exactly 24 hours later, another text<br />

message pops into the box, this time<br />

from short code 62262 on Nov. 4 at 3:28<br />

p.m.: ‘People who love their country can<br />

change it! Make sure everyone you know<br />

votes for Barack today. For voting info call<br />

877-874-6226 or VoteForChange.com.’<br />

Bite the bullet<br />

Long story short, there is a lesson here in<br />

the Obama victory for marketers gun-shy<br />

of using mobile for customer outreach.<br />

Yes, the economy is slowing. Yes, budgets<br />

need to be cut.<br />

Yes, Wall Street’s demands for sterling<br />

quarterly performance have to be met.<br />

But you don’t walk away from the future.<br />

You don’t trade tomorrow for yesterday.<br />

And mobile is the future, and the future<br />

is here.<br />

The enthusiasm for mobile was palpable<br />

Nov. 3-4 at the ad:tech New York<br />

conference for interactive marketing<br />

technology professionals. The GoMobile!<br />

Zone was busy on both days. Visitors were<br />

researching the many ways they could<br />

include mobile in their multichannel<br />

plans.<br />

They sought advice from the pavilion’s<br />

16 exhibitors – those smart souls who<br />

evangelized mobile to an audience of<br />

online and brand marketers because<br />

they saw the connection between the<br />

many interactive channels.<br />

18<br />

Many exhibitors plan to return to the next<br />

ad:tech in San Francisco. Why? They see<br />

the value in being spokespeople for an<br />

industry whose time has come, slowing<br />

economy or not. Consumers have spoken<br />

for mobile, just as they have for the first<br />

mobile president of the United States.<br />

Inspiring by example<br />

The Obama victory must inspire not just<br />

the African-Americans or minorities, but<br />

people of all backgrounds. People indeed<br />

have high expectations of Mr. Obama and<br />

here’s hoping he lives up to them.<br />

Mr. Obama’s election should inspire<br />

marketers to take risks and include<br />

mobile and the Internet in their media<br />

and marketing plans.<br />

There is absolutely no reason why<br />

the Fortune 500 brands or even small<br />

business should not embrace mobile<br />

advertising and marketing, text<br />

messaging and the mobile Internet.<br />

The numbers of mobile subscribers<br />

is growing nationwide and across<br />

the world. Mobile phones are getting<br />

more sophisticated. Data plans are<br />

more consumer-friendly. Above all,<br />

the consumer is ready to dialogue on<br />

mobile.<br />

An opted-in mobile database of<br />

consumers is gold for marketers and can<br />

do for them what it did for a bold man<br />

seeking to solve this nation’s problems.<br />

At 12:16 a.m. EDT this morning, a text<br />

message popped into this writer’s inbox.<br />

The sender was short code 62262. ‘We<br />

just made history. All of this happened<br />

because you gave your time, talent<br />

and passion to this campaign. All of<br />

this happened because of you.Thanks,<br />

Barack.’<br />

Mickey Alam Khan (mickey@mobilemarketer.<br />

com) is Editor in Chief of Mobile Marketer<br />

(www.mobilemarketer.com), a leading news<br />

publication covering mobile marketing, media<br />

and commerce. Its goal is to help readers<br />

and marketers understand how the mobile<br />

channel can be used alone or in conjunction<br />

with other channels for branding and customer<br />

acquisition and retention purposes.


ad for bq.indd 2 12/9/08 9:24:58 AM


Word of Mouth<br />

Well, let’s start with what Word of Mouth<br />

(WOM) is. It’s the natural process<br />

of people sharing their opinions and<br />

recommendations about the brands<br />

that surround their life. This sharing<br />

happens in all the ways that we use to<br />

communicate with each other.<br />

WOM is a pre-existing phenomenon that<br />

marketers are only now learning how<br />

20<br />

Word of<br />

Mouth<br />

Marketing<br />

101<br />

By Ian McKee<br />

to harness, amplify, and improve. WOM<br />

marketing isn’t about creating WOM - it’s<br />

learning how to make it work within a<br />

marketing objective.<br />

And research shows that 60% of our<br />

conversations are about the brands that<br />

matter to our life.<br />

Interestingly though, WOM marketing<br />

empowers people to share their


A happy customer is the greatest<br />

endorsement...<br />

experiences. It harnesses the voice<br />

of the customer for the good of the<br />

brand. And WOM can’t be faked or<br />

invented. Legitimate WOM marketing<br />

acknowledges consumers’ intelligence -<br />

it never attempts to fool them.<br />

WOM Marketing’s Key Tenets:<br />

• Recognizing that a happy customer is<br />

the greatest endorsement<br />

• Giving customers a voice<br />

• Listening to consumers<br />

• Engaging the community<br />

Common Types of WOM Marketing<br />

Buzz Marketing: Using high-profile<br />

entertainment, events or news to get<br />

people to talk about your brand.<br />

Viral Marketing: Creating entertaining or<br />

informative messages that are designed<br />

to be passed along in an exponential<br />

fashion, often electronically or by email.<br />

Community Marketing: Forming or<br />

supporting niche communities that<br />

are likely to share interests about the<br />

brand (such as user groups, fan clubs,<br />

and discussion forums); providing tools,<br />

content, and information to support those<br />

communities.<br />

Grassroots Marketing: Organizing and<br />

motivating volunteers to engage in<br />

personal or local outreach.<br />

Evangelist Marketing: Cultivating<br />

evangelists, advocates, or volunteers who<br />

are encouraged to take a leadership role<br />

in actively spreading the word on your<br />

behalf.<br />

Product Seeding: Placing the right<br />

product into the right hands at the right<br />

time, providing information or samples to<br />

influential individuals.<br />

Influencer Marketing: Identifying key<br />

communities and opinion leaders who are<br />

likely to talk about products and have the<br />

ability to influence the opinions of others.<br />

<strong>Brand</strong> Blogging: Creating blogs and<br />

participating in the blogosphere,<br />

in the spirit of open, transparent<br />

communications; sharing information of<br />

value that the blog community may talk<br />

about.<br />

Referral Programs: Creating tools that<br />

enable satisfied customers to refer their<br />

friends.<br />

Organic vs. Amplified WOM<br />

Organic WOM…occurs naturally when<br />

people become advocates because they<br />

are happy with a product and have a<br />

natural desire to share their support<br />

and enthusiasm. Practices that enhance<br />

Organic WOM activity include:<br />

• Focusing on customer satisfaction<br />

• Improving product quality and usability<br />

• Responding to customer concerns and<br />

criticism<br />

• Opening a dialog and listening to people<br />

• Earning customer loyalty<br />

Amplified WOM… simply occurs when<br />

marketers launch campaigns designed to<br />

encourage or accelerate WOM in existing<br />

or new communities. Practices that<br />

amplify WOM activity include:<br />

• Creating communities<br />

• Developing tools that enable people to<br />

share their opinions<br />

• Motivating advocates and evangelists to<br />

actively promote a product<br />

• Giving advocates information that they<br />

can share<br />

• Using advertising or publicity designed<br />

to create buzz or start a conversation<br />

• Identifying and reaching out to influential<br />

individuals and communities<br />

• Researching and tracking online<br />

conversations<br />

How do I ‘do’ WOM Marketing?<br />

Here are some of the techniques &<br />

activities that you should consider.<br />

1. Encouraging communication<br />

• Developing tools to make telling a friend<br />

easier<br />

• Creating forums and feedback tools<br />

• Working with social networks<br />

2. Giving people something to talk about<br />

• Information that can be shared or<br />

forwarded<br />

• Advertising, stunts, and other publicity<br />

that encourages conversation<br />

• Building WOM-worthy elements into<br />

products<br />

3. Creating communities & connecting<br />

people<br />

• Creating user groups and fan clubs<br />

• Supporting independent groups that<br />

form around your product<br />

• Hosting discussions and message<br />

boards about your products<br />

• Enabling grassroots organization such<br />

as local meetings and other real-world<br />

participation<br />

4. Working with influencers<br />

• Finding people who are advocates of<br />

your brand and are influencers<br />

• Engaging these individuals in a deeper<br />

relationship with the brand<br />

• Good-faith efforts to support issues<br />

21


Given how effective WOM Marketing is, it<br />

is very tempting for marketers (and often<br />

traditional agencies) to look for shortcuts.<br />

and causes that are important to these<br />

individuals<br />

5. Creating evangelist or advocate<br />

programs<br />

• Providing recognition and tools to active<br />

advocates<br />

• Recruiting new advocates, teaching<br />

them about the benefits of your products,<br />

and encouraging them to talk about them<br />

6. Creating programs specifically for<br />

listening to customer feedback<br />

• Giving people a specific destination<br />

where they can give you their suggestions<br />

and feedback – and you respond<br />

• Tracking online and offline conversations<br />

by advocates, detractors, and neutral<br />

• Listening and responding to both<br />

positive and negative conversations<br />

7. Engaging in transparent conversation<br />

• Encouraging two-way conversations<br />

with interested parties<br />

• Creating blogs and other tools to share<br />

information<br />

• Participating openly on online blogs and<br />

discussions<br />

8. Co-creation and information sharing<br />

• Involving consumers in marketing and<br />

creative (feedback on creative campaigns,<br />

allowing them to create commercials,<br />

etc.)<br />

• Letting customers ‘behind the curtain’<br />

to have first access to information and<br />

content<br />

Absolutely No Shortcuts<br />

Given how effective WOM Marketing is, it<br />

is very tempting for marketers (and often<br />

traditional agencies) to look for shortcuts.<br />

22<br />

These tend to be high risk, and could lead<br />

to a negative backlash against your brand<br />

if they don’t work.<br />

Planning a WOM campaign? Say ‘No’ to:<br />

1.Stealth Marketing: Any practice<br />

designed to deceive people about<br />

the involvement of marketers in a<br />

communication.<br />

2.Shilling: Paying people to talk about<br />

(or promote) a product without disclosing<br />

that they are working for the company;<br />

impersonating a customer.<br />

3.Infiltration: Using fake identities in an<br />

online discussion to promote a product;<br />

taking over a web site, conversation, or<br />

live event against the wishes or rules set<br />

by the proprietor.<br />

4.Comment Spam: Using automated<br />

software (‘bots’) to post unrelated or<br />

inappropriate comments to blogs or other<br />

online communities.<br />

5.Defacement: Vandalizing or damaging<br />

property to promote a product.<br />

6.Spam: Sending bulk or unsolicited<br />

email or other messages without clear,<br />

voluntary permission.<br />

7.Falsification: Knowingly disseminating<br />

false or misleading information.<br />

A Simple Rule of Thumb<br />

Use the ‘The Honesty ROI’ to gauge if your<br />

WOM campaign is credible. Checklist your<br />

campaign against the following:<br />

Honesty of Relationship: The participants<br />

in your campaign should openly disclose<br />

their relationship with the brand.<br />

Honesty of Opinion: The opinions they<br />

express should be truthfully what they<br />

believe.<br />

Honesty of Identity: Never ask people to<br />

pretend to be someone they are not.<br />

As the trust in advertising goes down and<br />

the cost of media goes up it makes more<br />

and more sense to devote part of your<br />

marketing budget to WOM.<br />

The media is free, and very powerful<br />

(Nielsen rates it as the most powerful<br />

when it comes to affecting people’s<br />

purchasing behaviour), but deploying it<br />

absolutely requires a change in mindset<br />

from the marketer.<br />

And take note: Good WOM marketing<br />

strategies involve finding ways to support<br />

satisfied customers and making it easier<br />

for them to talk to their friends.<br />

Vocanic is Asia’s leading WOM marketing<br />

agency. Vocanic provides the strategy and<br />

planning needed to design successful WOM<br />

campaigns, the technology platforms needed<br />

and the experience to saleable and effective<br />

programs.<br />

Ian McKee can be reached at imckee@vocanic.<br />

com.<br />

Disclaimer: Parts of this piece are derived from<br />

work done by the WOM Marketing Association of<br />

which Vocanic is a charter member.


ad for bq.indd 4 12/9/08 9:25:06 AM


Shopper Trends<br />

Rising Costs Pave<br />

Way for Private<br />

Label Sales in<br />

Malaysia<br />

The rising cost of living is proving a boon<br />

to Private Label or Store <strong>Brand</strong> sales in<br />

Malaysia, as shoppers switch into costsaving<br />

mode to stretch their household<br />

budgets, according to latest insights<br />

from The Nielsen Company.<br />

Private label of store brand refers to a<br />

product or variety of products offered<br />

by a retailer under their own name in<br />

competition with branded goods. Private<br />

label products, like non-branded goods,<br />

are normally cheaper than branded<br />

items.<br />

According to the Nielsen Retail Audit<br />

which tracks 68 grocery categories in<br />

modern trade channels (hypermarket,<br />

supermarket, pharmacy and convenience<br />

stores) in Peninsula Malaysia, prices of<br />

some grocery segments have jumped as<br />

much as 20 percent year-to-date, with<br />

food items rising by an average of 15<br />

percent.<br />

“Inflationary pressures are forcing costconscious<br />

consumers in Malaysia to<br />

adapt their grocery shopping habits and<br />

switch to cheaper alternatives, notably,<br />

24<br />

Private Label options,” observed Maria<br />

Öijer Retailer Services Director, South<br />

East Asia, The Nielsen Company.<br />

The Private Label market in Malaysia was<br />

worth RM240 million as at September<br />

2008, translating to over 30 percent yearon-year<br />

growth. “It is early days yet for<br />

Private Label in the Malaysia market,<br />

but we have seen a sharp spike in sales<br />

momentum over the last year, fuelled<br />

by rising commodity prices,” observed<br />

Öijer.<br />

While Private Label is still in its infancy<br />

in Malaysia, the sector is slated for<br />

stronger growth against a backdrop of<br />

inflation and consumers seeking out<br />

the best bargains. This development is<br />

substantiated by the strong growth of<br />

Private Label as compared to branded<br />

manufacturers in the modern trade<br />

channel. From February to September<br />

2008, sales value of Private Label grew<br />

32 percent, far ahead of the 15 percent<br />

growth in branded goods compared to<br />

the corresponding period last year.<br />

“With Private Label shares on the<br />

increase, branded manufacturers<br />

would be wise to pay close attention<br />

and aggressively protect their brands’<br />

equity through targeted advertising<br />

and promotion strategies,” commented<br />

Oijer.<br />

Private Label thrives in “lowinvolvement”<br />

categories where the<br />

products meet shoppers’ more basic and<br />

functional needs. Leading Private Label<br />

categories include paper, basic non-food<br />

and commodity foods with low emotional<br />

brand values.<br />

In modern trade channels, the top three<br />

product categories with the highest<br />

penetration of Private Label in terms<br />

of value share are bottled water (51%),<br />

sweetener (42%) and cooking oil (24%).<br />

In terms of growth in value share, bottled<br />

water has increased by 12 percent,<br />

Öijer pointed out that Private Label products have<br />

most success where manufacturers have lost the<br />

edge in creating real or perceived added value,<br />

price is the only differentiator, true innovation is<br />

scarce and there is plenty of production capacity.

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