Archive for November, 2008

Years to build credibility, one flight to tear it down

Friday, 21 Nov: Reuters/ST reported:

Chief executives (CEOs) from General Motors (GM), Ford Motor and Chrysler on Wednesday pleaded for US$25 billion (S$38.2 billion) in federal assistance to help pay their suppliers, workers and other expenses at a time when car sales have plunged along with a souring economy.

But sceptical lawmakers blasted them for flying private jets to Washington and failing to make personal sacrifices in exchange for federal assistance…..Even Democrats who said they were sympathetic to the carmakers’ plight expressed frustration that the executives used private jets, while professing ruthless cost-cutting measures…..

[Representative Brad Sherman, a California Democrat said] ’I also, though, must recognise that you’re in trouble mostly because of the economic downturn.’ Mr Sherman asked the CEOs if they were willing to sell their jets on Wednesday and fly back to Detroit on a commercial flight.

‘Let the record show no hands went up,’ he said.

 

Silly CEO’s! Going begging in private jets. Have they lost touch of reality? Would you give your pennies to a beggar in designer dress or even with just a handphone in hand? 

Lesson for us:

The CEO/director is the face of a company, what he does (or doesnt do) will affect the credibility of the company’s perception negatively and lower its branding. But you don’t need a PR genius to tell you that, do you?

After the subprime mortgage bubble comes The Brand Bubble

Here’s a vodcast of John Gerzema, Y&R Group chief insights officer, talking to Marketing Magazine on his book The Brand Bubble.

According to its website:

Customer surveys show that the number of high-performance value-creating brands is diminishing across the board. Yet at the same time, businesses and financial markets keep raising brand valuations. The result? A brand bubble that could erase large portions of intangible value in your company and send another shockwave through the global economy.

The Brand Bubble provides both analysis and solution.

The original post is here.

A winning brand goes straight to the heart

ST, 19 Nov, reported:

ELECTRONICS giant Hewlett-Packard (HP) decided to go straight for the heart, to stand out in an industry constantly looking to outdo rivals with whiz-bang gadgetry and high-tech specifications.The company has marketed the personal computer as an extension of the individual – to make it more than a machine.

‘The connect that we wanted to make was not based on benefits, but an emotional connect,’ said Mr Ajay Mohan, HP’s vice-president of marketing and small- and medium-sized businesses in the Asia-Pacific and Japan.’And the emotional connect that we wanted to establish was that the computer is an extension of yourself. It is something which you work with on a daily basis; this is where you put your ideas, this is how you operate. This is a very personal thing, and you do not look at it as an impersonal object.’

He was outlining HP’s successful three-year branding strategy to the audience at a marketing conference, the Brand Couture Congress, which opened at Suntec City yesterday.

HP got it right with their 3 year branding strategy “HP Personal Again”. Personally, I loved the campaign, it made PC fun. I particularly liked the TV ads that had famous people talking about their love of their PC but their face was never shown. How clever is that!

Here’s one with Pharrel the famous rapper:

 

 

The lesson here:

Don’t be to overly concerned with the visual branding of your product. Think about how your branding is connecting to your target consumers at an emotional level. After all, isn’t true that we are really emotional animals. A large percentage of buying decision is made based on emotions rather than logic. If not why else would you be wearing that watch on your wrist (since all watch does the same function of telling time)?

 

here’s the making of the TVC, if you are fascinated:

Just-In-Time Marketing – is your marketing plan flexible enough for it?

I came across this article recently and it made me realise that while business must take pains to map out marketing plans over months or years, it is always a good idea to keep it a little flexible to allow your business to capitalise maximally on any unexpected opportunities available. If your brand unexpectedly got a positive mention by a celebrity or a public figure that’s a powerful endorsement in itself! Don’t just sit there and smile at the free PR your brand is earning. Grab the emergency marketing kit and quickly launch a quick targeted campaign.

The story in New York Times mentioned that Michelle Obama went on Jay Leno show and promoted J. Crew brand that she was wearing. The company had no idea that she was going to do this. They only realised it when they saw her in one of their design during the teasers of the show.

What did they do? The marketing team went into action by 1. buying keywords for “Michelle Obama” on the search engines 2. setting up a page on their website promoting the outfit Mrs Obama wore 3. told their call centres how to handle enquiries…Phew! quite a lot of action in an instant!

The outcome: “J. Crew said it was pleased with the sales..”

You never know which public figure might be endorsing your brand. But if they do, are you ready to cash in on it?

Is it so difficult to apologise?

Yet another person writes in to Straits Times today about the lack of acknowledgement of accountability, but now it’s targeted at the government.

Town Council lost a few million dollars to bad investment by DBS and typically, they scrambled to offer logical explanations just to prove that it is a reasonable mistake on their part.

ST reported on 19 Nov:

EIGHT town councils (TC) run by the People’s Action Party have about $16 million invested in troubled structured products.The lion’s share of $12 million is from two TCs: Holland-Bukit Panjang ($8 million) and Pasir Ris-Punggol ($4 million).

The products include Minibonds linked to bankrupt US investment bank Lehman Brothers and the now worthless Merrill Lynch Jubilee Series 3 LinkEarner Notes.

Dr Teo Ho Pin, chairman of the Holland-Bukit Panjang TC as well as coordinating chairman for the 14 PAP town councils, disclosed this yesterday……The 14 TCs ‘do not have significant investments’ in the troubled products, he said. The $16 million is 0.8 per cent of all their funds available for investment. In Holland-Bukit Panjang, $8 million is invested in Minibonds and Jubilee notes. This works out to 6.7 per cent of its investible funds.

It has another $3 million in the potentially-troubling Pinnacle Notes Series 6 arranged by Morgan Stanley.

Pasir Ris-Punggol’s $4 million is 2.6 per cent while in the remaining six TCs, the amount for each is below 1 per cent.

Why can’t town council leaders be gracious and apologise?” asks Adrian Choo in his letter to ST. I second that!

As business owners, we can all learn something from this. An apology is worth more when given without demand.

Are you a business owner? Do you find it difficult to apologise when things go wrong?

What consumers need – A Humane company

Once again another Straits Times reader writes in to say that a little apology would be good for DBS’s reputation. When sh-t happens, apologies! Is that such a difficult thing to do? Do they need consultants to come in and teach them how to apologise like a person of integrity?Didn’t our parents teach us that when we were young?

It’s typical of corporates to pay big money for branding consultants to come up with all their Mission and Values that they so proudly display in a plague. But when things go wrong all the values are nothing but a poster on the wall. No one seems to understand how to put all those expensive values into action. (!!)

I checked DBS website for their list of Values. (Was half expecting it to be 3 values with initials, D,B and S, hahaha). But i didnt find any. So i went into the Community Relations and here’s what DBS thinks of itself:

Our commitment to the community

At DBS, we are committed to be a caring and responsible partner in the communities in which we live and work, by making a significant positive impact on improving the quality of life. We believe in helping people to be the best they can be, so that they, in turn, help themselves achieve their goals….

Well, where is the ‘significant positive impact’? A whole lot of hogwash?

Here is an excerpt from the forum letter (18 Nov’08):

The reputation of DBS Bank has taken a beating, far worse than in 1998. Investors have lost confidence in the bank, its services and its structured products. Some even commented that calls to the bank’s customer service hotline are met with rudeness and abruptness. It is time for damage control. It won’t hurt if DBS Bank apologises and takes a more humane approach to its customers.

Tip:When things go wrong and people get emotionally affected, all the logical explanations in the book will not help calm nerves. Just be human. You don’t need training for that.

Sorry – the hardest word to say?

Ah! Finally a Straits Times reader commented on the most obvious misgiving in the whole DBS High Notes saga – not a word of apology from the organisation. Of course, apology will not bring back the money lost, neither will it lessen the burden brought upon by the worry of a lifetime savings lost. But what it will do is show that DBS as an organisation is human. And like a human, it can and did make mistakes. It will “do the right thing”.

Here’s an excerpt of the letter:

BY SAYING that no one could have anticipated the collapse of Lehman Brothers, the remarks of the DBS Bank chairman (‘We’ve taken a hit but we will overcome’, Wednesday), coming soon after its CEO said the bank would do the ‘right’ thing (‘DBS will do the right thing: CEO’, last Saturday), hoped things would quickly go back to normal. What he is saying effectively is that the Lehman fiasco is unfortunate, no one saw it coming, so let us all charge everything to experience and start anew.This is like a doctor saying he never expected a patient with signs of high cholesterol and hypertension to expire any time soon.

As experienced money handlers, banks have on their payroll experts who do nothing but watch the financial market for signs that will point them to pots of gold and steer them clear of impending danger. In their quest for one-upmanship, fund managers and distributors do their rounds of due diligence, and cover their backs with all the legal ‘eventualities’ so nothing will go wrong….

….Unlike Japan, we do not expect chairmen or CEOs to resign just to make a wrong turn go away. If we cannot say sorry with some measure of grace, perhaps we should let more ‘right’ actions speak for themselves.

I have noticed that Singapore companies have a great difficulty in apologising when things go wrong. Companies may do everything logically expected of it – give good explanation, offer realistic solutions etc. But unfortunately, it has typically been very cold

So if you are business owner, one simple way to set yourself apart from all the other local companies, think about how you can be ‘more human’ towards your consumers. And maybe, just maybe, they will stick with you through thick and thin.

A company’s good reputation is not always build on good action, efficiency and brilliant customer service. It is also build on what happens when things go wrong. When sh-t hits the fan, it doesn’t automatically mean your reputation will go bust. How you respond and react to your customers concerns and needs will determine if your reputation will stay afloat or how deep it will sink. One simple way to make sure it doesnt sink into abysmal depths is an Apology.

Complacency killed the old company

 

The article reported:

COMPLACENCY can set in with age and that appears to be happening with some of Singapore’s more venerable companies when it comes to keeping the brand polished.

The warning signs surfaced when few firms were nominated for the Singapore Prestige Brand Awards (SPBA) in the heritage category – for companies that have been around for more than 30 years.

 

It was not surprising at all that older companies in Singapore are still not very educated on the concepts of branding and how it is so vital to business longevity today. Business is not as usual anymore and somebody must tell these bosses before it is too late.Too late will be when younger companies, despite smaller capital, are able to leverage on the Web 2.0, public relations, guerilla marketing and a whole slew of low-cost-high-impact marketing strategies to build greater customer awareness, maintain a sense of ‘updatedness’ that relates well with the new generation of well-travelled, savvy, global thinking customers. 

“But, we have always done it this way” is just not enough anymore. 

Gone are the days where you can market products with brands like “Mother and Son” , “Volleyball Players” etc. Even “Axe” oil brand worked very hard to stay relevant. The cluttered marketplace of today alone is enough reason to drown such brands out.

Business owners of established brands need to re-look at their customer psychographic. They will probably get a shock at how much these customers have changed in their buying decision making.

 

Mr Chan Chong Beng, chairman of the SPBA organising committee that handed out the awards last night, told The Straits Times: ‘What is quite sad is that for the heritage award, there seems to be a lack of response.

‘A lot of these older companies – they think they have already built a good brand and they are established already, so there’s no need to relook what they have done.’

Mr Chan cautioned that if such firms fail to remember that they need to keep building up their brands, newer companies will soon overtake them.

 

 

Wake up wake up old businesses. The world is changing….

Bad acting spotted at lightboxes around town

 

The supposedly very real public notice

Oh dear there they go again. Some big shot creative persons in the ad industry comes up with an idea so ‘guerilla’. 

 

Apparently the latest ads of the upcoming programmes on FX Channel put up in bus stop lightboxes have been slapped with notice stickers issued by Department of Appropriate Behaviour… *roll eyes*

The programmes have violated some Decency Act that dangers the moral fabric our Singaporean society. (really?)

I get it, they are trying to create some kind of buzz marketing/guerilla marketing tactic. But really, when it is too polished, when it is too obvious, who’s paying attention. Not me. Just too much words on the notice for me to be bothered.

They have also taken full-page ad with the same public notices on the local papers like Today and Straits Times….oh dear, have they been too creative to realise that in Singapore, if a message is detrimental to society, the authorities will not even let it to print, much less have a public notice pasted on the ads!

The marketing director of NGC Network Asia (which owns the FX Channel) released a statement to Marketing Magazine: ”Having been notified that the public has been warned not to watch the channels comes as a surprise. This is a compliment I suppose as it proves that our campaign has worked so well to promote the edgy and provocative content in the channel, that people are stepping in to tell the public what they should or should not watch.”

My verdict: Bad acting all around.

But then again, the ad agency responsible will probably win an award for this. Who knows…


Olympian PR bout under way in Washington

Associated Press

26 July 08

By FOSTER KLUG

WASHINGTON (AP) — In an air-conditioned room in the Chinese Embassy, a vice minister from Beijing chastises Americans for their “very limited” understanding of violent anti-government protests in Tibet.

Hours later, hundreds of supporters of the banned-in-China Falun Gong spiritual movement kneel in the hot sun near the U.S. Capitol as lawmakers and activists rail against what they say are Chinese atrocities.

The Olympic Games begin in Beijing on Aug. 8, but already the competition to sway public opinion in the United States is heating up between anti-China activists and Chinese authorities. It is transforming the run-up to the global sports gathering into a public relations marathon in which China’s national pride is pitted against claims that Beijing abuses its citizens and unquestioningly supports nefarious governments.

Once slow to address criticism, China has responded aggressively to what it sees as unjust condemnation by Western media, rights groups and officials that could tarnish the Olympics. An increasingly media-savvy Chinese Embassy has held briefings meant to provide China’s point of view on contentious issues in the news. Ministers and academics have been flown in from China for news conferences and to meet with U.S. officials and lawmakers.

Meanwhile, China’s opponents have been relentless. Uighurs, Tibetans, Falun Gong practitioners, activists for Darfur and Myanmar, and groups championing religious freedom and human rights are all delighted that the Olympics might shine a spotlight on a country they say has failed to follow through on pledges to improve human rights that were included with its bid to host the games.

They have gathered at rallies in Capitol Hill parks and at congressional hearings, where powerful lawmakers, including House Speaker Nancy Pelosi, D-Calif., and celebrities like actor Richard Gere have faulted Chinese rights abuses. At the Falun Gong rally, Rep. Ileana Ros-Lehtinen, the top Republican on the House Foreign Affairs Committee, issued a warning to Beijing that has become a popular refrain by China critics in Washington: “The world will be watching.”

For all the celebrity and congressional attention, however, it is unclear how much of a difference the efforts will make.

Ralph A. Cossa, president of the Pacific Forum CSIS think tank, says what will matter more is how China handles any protests at home during the Olympics, when reporters will be searching for signs of dissent. Some sort of protest, he says, “seems inevitable, and this will give China a black eye internationally if it overreacts, as it almost always does.”

In Washington, the Chinese Embassy is working hard to counter criticism ahead of the games.

Spokesman Wang Baodong said it is the embassy’s duty “to try to reach out to various circles of this country, to let them know the whole picture and to gain a more comprehensive understanding of the situation in China.” Wang said that if Americans base their judgment of China only on the criticism of vocal opponents, “they will be misled, because it does not reflect the whole picture.” He added, “The mainstream opinion of the international community is wishing good for the Beijing Olympic Games.”

A large rallying point for protesters in the United States has been China’s tight grip on Tibet, which China has governed since communist troops invaded in the 1950s. China says 22 people died in March anti-government violence; foreign Tibet supporters say many times that number were killed during demonstrations and a subsequent government crackdown.

China also has been criticized for not using its economic leverage to apply more pressure on the Sudanese government to stop violence in Darfur, where more than 300,000 people are said to have died over the past five years.

While some lawmakers are quick to blast China over these and other issues, the Bush administration has been careful not to anger Beijing ahead of the Olympics, wary about running the risk of hindering a host of international efforts the U.S. needs China’s help to solve.

Still, a swirl of activity continues in Washington. On Wednesday, at a House hearing focusing on China “on the eve of the Olympics,” Beijing was criticized for suppressing dissidents and activists. Then, on Thursday, lawmakers on the House foreign affairs panel passed a resolution that calls on China to immediately stop abusing minority rights and to end its support for Myanmar and Sudan so that the games will “take place in an atmosphere that honors the Olympic traditions of freedom and openness.”

Cossa says that, with the protests and the scrutiny it is facing as the Olympics approach, “one wonders if there is not a certain amount of ‘buyer’s remorse’ in China right now.”