Friday, September 25, 2009

Renault: Counting the brand cost

More bad news for team Renault ahead of this weekend’s Singapore F1 night race as two of its biggest sponsors quit because of the much publicised FIA ruling.

In case you’ve been living under a rock for the last few weeks, Renault have been handed a suspended disqualification from F1 after team principal Flavio Briatore, executive director of engineering Pat Symonds and driver Nelson Piquet Jnr were found guilty of a plot to deliberately crash in last year's Singapore Grand Prix.

Renault’s principal sponsor, ING has cut short its sponsorship (which ends after the 2009 season wraps) to immediate effect. And left no room for speculation as to the reason why it has ended the association with Renault four races early.

An ING statement read:
“In light of the verdict of the World Motor Sport Council of 21 September 2009 concerning the events that occurred at the 2008 Singapore Grand Prix, ING will terminate the contract with Renault Formula 1 with immediate effect.”

“ING is deeply disappointed at this turn of events, especially in the context of an otherwise successful sponsorship.”

On top of this bad news, Spanish insurance firm Mutua Madrilena also announced it would end its backing calling the incident “something that can affect the image, reputation and good name of the team's sponsors.”

And added that: “The behaviour of the relevant people in the team was extraordinarily serious and compromised not only the integrity of the sport, but also the lives of spectators, drivers and circuit personnel.”

Strong but justified words from the sponsors given that the incident has been declared as the worst single piece of cheating in the history of sport by Simon Barnes of The Times (Have a read of his article he makes a solid argument for his case).

But aside from the financial cost the incident will have on Renault, the car maker stands to take a hit in another crucially important area – brand value.

Seven years ago when Renault made the investment into the incredibly expensive sport of F1, one of the goals would undoubtedly have been to grow brand value and be associated with success.

And since then it would be fair to say they have done just that through Fernando Alonso’s driving and winning.

It’s a whole different ball game now.

F1, as expensive as it is, is also a very high profile sport and the “crashgate” incident only lives to associate Renault with arrogance, cheating, and even worse still, a nonchalant view of humanity.

And it’s also a violation of the brand’s CSR policy which, like many companies, advocates transparency.

Who wants to be seen in a Renault car after this?

Friday, September 18, 2009

Hope isn't a bad thing

I started Ramadan on a slightly negative note by blogging that it could be the start of bad customer service so let’s see if I can end it on a more positive note. How’s this? The 1 Malaysia campaign just might have a chance after all.

There I said it.

But before you flood my inbox with comments like “you’re an idiot” and “I don’t like you”. Please give me the chance to say that I never thought it stood a chance but I came across this story from the The Star via AP while surfing Google Reader. (Free Hari Raya plug for Google!).

A great little story from Virginia of how members of a local Synagogue suggested Muslims come and pray in their building after hearing the Muslim community was looking to rent a place for overflowing crowds during the Muslim holy month of Ramadan.

On Friday afternoons, the people coming to pray at this building take off their shoes, unfurl rugs to kneel on and pray in Arabic.

The ones that come Friday evenings put on yarmulkes, light candles and pray in Hebrew.

"People look to the Jewish-Muslim relationship as conflict," said All Dulles Area Muslim Society Imam Mohamed Magid, saying it's usually disputes between the two groups in the Middle East that make news.

"Here is a story that shatters the stereotype."

Magid, who grew up in Sudan, said he did not meet someone who was Jewish until after he had moved to the U.S. in his 20s, and he never imagined having such a close relationship with a rabbi.

But he said the relationship with the Northern Virginia Hebrew Congregation has affected him and his members.

Beyond being tolerant, the synagogue and its members have been welcoming.

Rabbi Robert Nosanchuk, who leads the Reform congregation of about 500 families, said the relationship works both ways.

"You really only get to know someone when you invite them into your home ... you learn to recognize their faces. You learn the names of their children," Nosanchuk said.

What’s the marketing angle here? Well, can we just call this a stretched example of what the 1Malaysia marketing team needs to remember – people are generally good and want to live in harmony with one another.

So 1Malaysia should forget about the outdoor advertising or any advertising for that matter until it can come up with ways to actually physically show Malaysians you are in a real way delivering the 1 promise.

It won’t be easy – I certainly don’t have any well researched concrete ideas to offer here – but it can be done one small step at a time if the right people get behind it. America finally has a black President and one who so far has done nothing to suggest he was elected based on his race.

On that note,here's wishing you all Selamat Hari Raya.

Friday, September 4, 2009

Are you adventurous enough?

Singapore Management University's Micheal Netzley was at Menara Star today to talk about
Adventures with Social Media – Lessons from Asia’s Internet.

Netzley's presentation was further proof that social media is not just a leisure activity. It is now the new media which can be used to disseminate news and market your product and services instantly. It is something to be strongly considered as a networking tool by PR agencies as means to address challenges.

He shared some case studies which showed why Facebook, Twitter and blogs should now be considered an important tool in the marketer's toolkit.

One example is the growth and success of KFC Australia Facebook campaign for Cayan Grill in June 2009.

In 48 hours KFC enlisted more than 17,500 fans to its Facebook page, which was launched on 13 June. Now they have 86 174 fans and growing.

To drive participation in the Cayan O’Clock events KFC placed advertisements specifically targeting 18 – 24 year old Facebook users who live in Sydney, Melbourne and Brisbane - and directed them to the fan page.

"If Facebook has more the 2 million people on it wouldn’t you want to market your product there," Netzley said. In a nutshell, he asks marketers to tap into what channel works best for your part of the globe.

"Take the best from the West but make sure you adapt to the rest," he said.

His other examples were Lenovo’s marketing strategy which answered the question – How do you position Lenovo as solution provider? And how do you keep people engaged?

The answer – "Voices of the Olympic Games 2008" campaign where 100 athletes from 25 different countries blogged to share their experience with the world. Check out the video:



Over the course of the Games, Lenovo’s Athlete Bloggers published more than 1,500 posts and received over 8,000 comments from fans around the world. “Voices” was a huge success and demonstrated the value of amplifying Olympic athletes’ real, unfiltered voices.

From here we can see the full networking power of social media to create a network or your own community, social media. Another example, when there was the 5th H1N1 case in Singapore, Netzley was shocked that it was someone from his campus. He had received the SMS at about noon while Google search had the news in the evening BUT it was Twitter which had spread the message as early as 9.30am!

And that is how you too can get the otherwise would-not-have-known news.

“If you wait for the paper, you will be the last to know,” he said However, he disagrees that traditional media is becoming irrelevant though the trend is definitely changing.

To emphasis the impact of social media, Netzley talked about his Twitter friend that he added sometime ago. Siok Siok is a filmmaker based in Singapore, and she promotes her movies using Twitter. Her recent work is called Twittamentary – a documentary where Twitter determines what goes in the documentary. How? She uses Twitter as a crowd-sourcing tool.

Excerpt from her website: What is the project about?
Siok Siok’s new film,”Twittamentary” looks at how lives connect and intersect within the Twitter community. Her new film is to be created in the open spirit of the Web. Twitter users will be invited to contribute story ideas, rich media and videos to the film. When the film is completed, it will be shared online with the Twitter community and the world at large under a Creative Commons license.


And finally I leave you with this video.




The world is changing - The funniest videos are a click away

Monday, August 31, 2009

Smoking Merdeka Celebrations

Started my Merdeka weekend on a bus to Singapore then a ferry to Indonesia's Batam island for some fun in the sun. Is it me or are the cigarette advertisements in Indonesia getting out of control?

I have to admit I'd read about and heard about how criminal the cigarette marketing landscape was in Indonesia but you never really fully take it in until you actually see some of it because people tend to exaggerate. But no, there I was on a shuttle bus from the ferry terminal to the resort and I saw the first of a series of outdoor ads pass by.

I couldn't get a decent shot from camera as the bus sped along but here's what I can describe to you from memory of one of the more shocking executions:

Two young boys (I'll be kind and say they looked like 14 year olds but that's debatable) are in a competitive game of tug of war against an unknown team (the other end of the rope disappears into the bottom left corner of the billboard). The sweat and strain on the boys faces make them out to look like they could be winning while the slight hint of muscles on their arms show that the two are not your average skinny 14 year old weaklings. Up above their heads is, of course, the product shot.

Couldn't decipher the Bahasa Indonesia copy but the cigarette maker is Sampoerna and judging by the light blue packaging of the pack it must be for a lite brand suitable (??) for the younger demographic but being positioned as cool and macho enough so you don't think its for women.

Where did I see the giant billboard? As we passed a nearby school and headed into a small road where makeshift convenience store huts littered either side of the road - and where the cigarette brand amongst others can also be found.

About 6 or maybe even 9 months ago I read a great article from BusinessWeek which reported about Philip Morris International's race to win market share in developing markets around the world. That article cited some interesting figures like:

  • The company bought local kretek maker PT HM Sampoerna for $5.2 billion in 2005, which has since helped it grow from less than 10% of the cigarette market to nearly 30%.
  • In 2007, PMI had $2.7 billion of sales in Indonesia and spent $220 million on marketing and related costs.
  • Almost a third of the population is under 15, and nearly 50 million people smoke.
  • According to a recent study funded by the Bloomberg-Gates initiative, smoking rates are rising fastest among the young, with rates among Indonesian males age 15 to 19 up 139% between 1995 and 2004. Data tracker Euromonitor International predicts 10% more Indonesians will take up smoking by 2012.

And although Malaysia is certainly more relaxed about smoking laws than Singapore, there are more marketing restrictions here in place when compared to Indonesia. If I am not mistaken, Dunhill hasn't been allowed to sponsor football tournaments for a while now.

As for me, I'll admit that I am no saint (everybody hates being preached to anyways) and that I used to smoke regularly and am still prone to occasional drags when the mood sets in ( I still find pleasure in having a smoke on a rainy day with a teh tarik in hand).



This latest anti-smoking ad from MOH takes a pretty hard line and it's hard to watch. It did leave an impression on me but I am still not sure whether the gruesome facts work on the majority of smokers. The spot was created by Spencer Azizul.

Wednesday, August 26, 2009

Hermawan Kartajaya's tips

Last week, the president of World Marketing Association, Hermawan Kartajaya was in town to talk about new ways approach marketing in today's economic climate.

During my college days, I learned about the four P’s of marketing (price, place, promotion and product) but in Kartajaya’s approach he says there are 12 C’s to the new marketing wave. Without trying to bore you with too much detail (it is a blog post after all) the 12 C’s, in a nutshell, clarifies when, what and how to do marketing right.

Here are some of his tips:
1) Strategy is vital as it is the key to successful marketing
2) When selling your product, sell the differentiation not the product
3) Online marketing only creates excitement but not intimacy
4) Database is NOT a community. You must have interaction
5) Most new product launches will fail so co-creation is very important.

He then cited Starbuck Baristas tell their story campaign as a good example to support point (5).



And Kartajaya's advice to marketers attempting to figure out how boost their brands during the current economic climate was:

"Redefine your advertising and marketing terminology. Try to rethink about traditional media when it comes to what product you are offering."

Monday, August 24, 2009

That time of year again

The fasting month has well and truly started but other than the plethora of F&B promotions I am expecting to see - who else thinks a dip in customer service is also just around the corner?

This will be my first time experiencing Ramadan in Malaysia but having spent over 15 years in Brunei - I think I know what to expect here. Good food, bad driving, and tired grumpy hungry customer service staff -- am I right?

Just yesterday I went to Watsons pharmacy at KLCC to get something for my ankle which I sprained badly last weekend (yes it still hurts) and the service was terrible. First, as the pharmacist saw me approaching she decided to strike up a conversation with a passing colleague and when I reached the counter and said "excuse me" she carried on her conversation giggling for another 10 seconds while gesturing for me to wait.

When I did have a attention, she wasn't the best example of what a Watsons brand experience should be. I lifted up my ankle meekly and asked her "do you have anything for a sprained ankle, something to take the swelling away?" She didn't even bother to stand up and look at my ankle - she just pointed behind me and said "there".

"What..!? where is it? what is it called?"

She replied, "the next row, bottom."

Can I get some service here, or what?

Not realising how pathetic I was about to sound to anyone who just happened to walk past and hear me, I scolded her saying, "Well, aren't you going to help me get it - I am crippled here!"

"Ah..never mind then, i'll find it myself."

So I did.

I don't know if I would have got better service had the lady not been fasting but it reminded me about a conversation I had recently with a friend's father. He used to train all the pilots for Royal Brunei Airlines and he was pretty cutthroat about pilot's who intended to fast before and during long-haul flights.

"If you're fasting, you're not flying," he would say.

Sounds harsh but the reality is - the pilot needs to be full focused all the time, not for brand experience reasons but for safety!

Anyways - if you have any customer service nightmares send them in (marcusc@marketing-interactive.com) and I'll see if I can share it on The Volatile Customer.

Wednesday, August 12, 2009

Take a deep breath

If you're like me, when someone sends you an email about some sort of business competition you usually hit delete faster than you can say Skype. Well, a few months ago I got an email about the First Skype for Business Competition.

For once, instead of thrashing it, I thought... hang on we can win this! We use Skype all the time, for everything, and it helps make our business run so efficiently across Singapore, Malaysia and Hong Kong.

And today Skype's regional PR agency Upstream Asia sent a press release confirming my first thoughts -- we won! (release below)


Winners demonstrate how Skype enriches their business communications


Singapore August 12, 2009: Skype has announced the winners of the first Skype for Business Competition, which puts the spotlight on how companies can use Skype for cost-effective communications around the world.

The month-long competition - launched to celebrate the new look for the Skype for Business portal (www.skype.biz) was open to companies in the Asia Pacific, EMEA and Americas regions. The judges looked not only at the creativity and originality of how Skype is being used, but also the range of Skype features used and the geographic spread of their use. Entries were judged based on the following criteria :

Creativity and originality of submission and use of Skype (50%)
Range of Skype features used (20%)

Geographic spread of Skype usage (20%)
Clarity of case study (10%)


Prizes include bespoke Skype solutions for first place winners, along with Skype Credit and Skype Certified hardware.


The winning companies in Asia Pacific, who best demonstrated how they are saving time, saving money and staying ahead by using Skype, are as follows:

First Place: Lighthouse Independent Media, Singapore – An international publishing company that has made Skype an integral part of its daily editorial and production processes.

Second Place: RareJob, Japan – A company delivering more than 2,000 English conversation lessons via Skype each day.

Third Place: Rusty, Australia – An international surfwear and apparel brand that uses Skype to enable close collaboration between its employees around the world.

And here's what they said about us:

Lighthouse Independent Media: A publishing company with offices in Singapore, Hong Kong and Kuala Lumpur uses Skype to operate seamlessly across borders. Lighthouse Independent Media uses Skype as an everyday communications tool to keep all offices and all people in all offices connected throughout the day. In addition to the conversations and file sharing capabilities, Skype is used in the three market morning news conferences held between the different editorial teams as well as a medium to address the entire company over Skype via speakers. Apart from work purposes, Skype is also used to celebrate birthdays across geographic markets. They even had a two office bar night via video Skype- making it a tool that is used effectively to balance work and play!


Nice bit of mid-week news for us but in the spirit of Web 2.0 -- let's keep the conversation going with comments on how we can use internet companies like Skype to drive business forward.