James Selva - Brand Equity Magazine
James Selva - Brand Equity Magazine
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.