asia – Page 7

Where are all the global Asian Brands?

Published on 20/04/2015 by brandconsultantasiaLeave a comment

I came across an article posted on the Insead business school blog that asked the question, “Where are all the Global Asian Brands?” The author, Brand strategist Martin Roll argued that ‘emerging market companies have grabbed market share by doing things faster and cheaper.’ He also said that those Asian companies now need to build brands to stay competitive. I can’t argue with that either.

In the article he says that most Asian firms believe that branding is about logos and advertising and that Asian firms must create value for customers if they are going to survive and thrive in the new world order. Again, I can’t argue with this and he goes on to state that there is a lack of strong brands in Asia.

He says this is for four main reasons

1) A transactional approach to business rather than one based on relationships
2) The prevalence of small businesses in SE Asia that prefer short term wins over long term returns
3) Weak legislation and enforcement to protect Intellectual property
4) The traditional, family based, hierarchical structure of businesses in Asia that doesn’t appreciate the importance of intangible assets.

I agree that boards, or certainly CEOs should guide brands and I agree that many Asian brands are poorly managed, especially on the soft skills side.

Isn’t Sony a global Asian Brand?

I believe however that this is mainly because demand has outstripped supply and as a result branding has not been a priority. Yes there are structural issues in many Asian firms and they will be found out however, many Asian firms are quite nimble and I am confident they are beginning to change, especially as more Western brands look to Asia as their own markets stagnate.

Now I don’t want to be accused of being pedantic and I don’t know what is Martin’s definition of an Asian brand but there are nevertheless plenty of global Asian brands from the aviation, automotive, transportation, Oil and Gas, entertainment, travel, banking, property, technology and other sectors.

Chang sponsors Everton and Liverpool Football Clubs

Think of all the countries that are brands and their national airlines. The numerous LCCs, Proton, Haier, Sony, Petronas, Star cruises, YTL, Alibaba, Temasak, DBS, Maybank, SingTel, Tiger beer, Brands, Sampoerna, Lenovo, Jardines, Zalora, Chang Beer, Red Bull.

What is more important in my mind is that these companies became global brands in an economy that no longer exists. Where the political, social, cultural and communications ecosystem was very different to what it is today.

The danger Asian firms face is not one of inertia or fear it is one of using the wrong tools and techniques to try and build their brands. To challenge the established Asian brands and compete with cash rich Western firms and their massive marketing budgets, Asia’s challenger brands such as ZTE, TCL, CIMB, Hisense, Xiaomi, Ogawa, Jobstreet, Oppo, U Hotels and many more will need to be more focussed on delivering economic, experiential and emotional value.

Xiaomi. Delivering value at every touchpoint but spending very little on traditional media

If they try and compete, dollar for dollar with those established Asian firms and aggressive Western brands they will fail. Asian firms must be nimble, agile and ready to adopt new technologies and encourage their customers to be part of the brand’s DNA. Only then will we continue to see more global Asian brands.

Is it right for Malaysia Airlines to be selling insurance?

Published on 15/04/2015 by brandconsultantasia1 Comment

I’ve written a lot on this blog about the Malaysia Airlines (MAS) brand and much of what I have written has been negative and I’ve come in for a fair amount of criticism as a result of those posts.

But my intentions are honourable and I do know that a lot of people in MAS read my blog and take my comments in the way that they are written, as feedback not criticism.

They don’t seem to take any notice of the feedback but at least they are reading my comments. I’m publishing this post to see if I can get an explanation for the email I received from the airline recently.

There’s no need for a recap on the MAS situation except to say that earlier this week a story broke in Australia suggesting the Malaysian government lied about MH370 and later today there will be a high level meeting between Malaysia, Australia and China the three countries leading the search for MH370. Speculation is rife that the search will be called off. If this is the case, the media will be full of stories about MH370 and the downing of MH17. Probably not the ideal time for Malaysia Airlines to be trying to sell insurance.

Does MAS send the right message by selling insurance?

Yet earlier this week I received an email from MAS encouraging me to buy insurance for my upcoming flight to Tokyo. My reaction was one of surprise. My initial thoughts were that it didn’t make sense for the carrier to be trying to sell insurance so soon after the tragic events of last year and just before a major announcement that could see acres of negative newsprint around the world. It also made me even more nervous about flying MAS.

Professionally, I couldn’t help but think that this was an ad hoc tactical effort that wasn’t part of a well thought out and planned out strategy. If I’m right it would suggest the marketing and communications departments at MAS continue to churn out poorly conceived tactical initiatives and are yet to develop a sustainable brand strategy.

I think the airline would be better off trying to rebuild it’s reputation with me and all the other people that have continuously supported the airline through the dark days of 2014 and 2015. But I could be wrong, maybe this is the right time for the airline to be selling insurance, what do you think?

Humanising your brand on social media

Published on 26/03/2015 by brandconsultantasiaLeave a comment

Just about every survey I read suggests social media marketing will take a larger piece of marketing budgets over the next 5 years. One recent survey suggested social media spending will increase 144% over current levels by 2019.

But few companies in SE Asia really know how to use Social Media, especially when it comes to engaging with consumers and dealing with issues raised by those customers. I spend half my time trying to explain to customers that social media isn’t another platform to broadcast a carefully carved corporate driven message to anyone and everyone.

We liken social media to a virtual coffee shop where you talk to people as equals not as an old fashioned brand talking down to ‘stupid’ consumers in a patronising manner with a predetermined message.

Social media requires an ability to be real, to be human, spontaneous, transparent and crucially, be able to resonate with each consumer on their level. This is of course a daunting task as it reduces the amount of control a company has over it’s messaging and it’s brand.

To give you an idea of how spontaneous and real you need to be, have a read of this hilarious top ten of customer service exchanges with top brands in the UK.

Here’s an example of how to successfully engage with customers on Twitter.

A customer complained about a brand in the UK

Rather than complain, the brand engaged positively with Google

Google responded in the same manner making the whole experience positive for everyone

The good news is, according to another recent study, those companies prepared to invest in delivering good customer service on Social media see customers spending up to 40% more with that company.

So the next time a customer complains on social media, take the time to listen and respond in a human way and on their level. And you could see your income increase by 40%, more effective and a lot less expensive than any advertising campaign!

Rebranding Malaysia Airlines starts here

Published on 04/12/2014 by brandconsultantasia1 Comment

It has been scientifically proven that almost everyone remembers negative events more clearly than positive ones. Apparently it is something to do with spending more time processing negative information more thoroughly than positive information.

This probably explains why most of the mass media and consumer generated content about Malaysia Airlines is negative.

Of course its disjointed and poorly thought out marketing tactics and privatization programme aren’t helping but you can read about that here.

When a firm experiences a run of bad luck, it needs to be on top of its game when it comes to engaging consumers and restoring confidence in its ability. It also needs a bit of luck and that luck can appear in many different ways.

Yesterday Malaysia Airlines flight MH2 from Kuala Lumpur was carrying the irrepressible London Mayor Boris Johnson who had been working his magic on a trade trip in the region. During the flight a passenger described by one of Mr Johnson’s staff as being ‘off his head’ got abusive and had to be restrained by the MAS staff, with a little help from Boris.

MAS crew perform admirably in difficult situation

Police met the plane in London and the passenger was taken away and later charged. When asked about the Malaysia Airlines crew, the Mayor’s staff had nothing but praise. Eileen Burbidge travelling with Mr Johnson said, “so impressed w/MH2 cabin crew (Kuala Lumpur-LHR); amazing professionalism/handling of passenger who was off his head.”

This small but significant event is a great opportunity to start the process of rebuilding the MAS reputation. It isn’t enough to salvage the airline’s reputation but it is a good place to start.

Here are six things the airline must do immediately to get the most out of this good news story:

1) Write a number of stories about the event from different angles. Include interviews with the cabin crew, other passengers and of course Mr Johnson. Share the articles across multiple platforms.
2) Meanwhile share the mainstream press stories across social media and encourage others to also share them.
3) Share the video of the event across all channels.
4) Get cabin crew involved on TV chat shows to talk about their lives with MAS, the event and other events and how they deal with them.
5) Hold informal internal coffee mornings for other staff to interact with the crew and learn from them and build morale.
6) Monitor social media discussions about the event and contribute to those discussions. Also comment on discussions and articles and follow up with responses to those comments, even if they are negative. Not from a corporate perspective but from a human one.

The rejuvenation of the MAS brand and its reputation will take more than privatization, a new name, renegotiated supplier contracts and redundancies.

The airline must restore consumer confidence in its ability to offer a professional, competent, efficient and effective service. The performance of the staff in this potentially explosive situation is the first step in that process and it must be leveraged effectively and organically to maximum effect.

I hate Thailand

Published on 28/11/2014 by brandconsultantasia6 Comments

Tourism accounts for about 10% of the Thai economy, employs hundreds of thousands of people and generates as much as US$65 billion in foreign currency.

But the ongoing political crisis that saw the military junta’s National Council for Peace and Order (NCPO) take power and the brutal murder of two British tourists in Phuket has seen arrival figures plummet.

According to Reuters tourist arrivals dropped 10.3% in the first 9 months of this year and 2014 will see negative arrival growth for the first time in years. The authorities have moved fast to stem the hemorrhaging with a crackdown on widespread crime, corruption and inflated costs encountered buy all but the most savvy visitors to the country.

In Phuket many of the illegal buildings, sunbed conmen, intimidating food and drink vendors, dubious boat operators and unscrupulous taxi operators have been yanked off the beach and a certain calm has returned.

Initial attempts to get tourists to come back included ramping up mass advertising and a travel insurance scheme that provided visitors who couldn’t get insurance because the country was under martial law, with insurance.

Unsurprisingly these didn’t have much of an impact. The Tourism Authority of Thailand (TAT) changed tack and came up with what it calls “A romantic comedy short film.” TAT initially released the video as consumer generated media but soon found itself having to explain the film was actually an advertisement for Thailand even though TAT wanted to create an ‘unbranded’ advertisement because ‘they receive more interest than conventional commercials.’

The spot is a counter intuitive attempt to show a more hospitable Thailand by featuring a young British tourist who has had his bag stolen and does the British thing of ranting at everyone as a result and finally declaring “I hate this place. I hate Thailand.”

Then he meets a beautiful Thai girl and a bunch of other people who rally round and help him. Sure enough, after some beautiful sunsets, scenes with kids and wonderful encounters his bag is returned with his passport and money still inside.

Counter intuitive differentiation is a brave model to use to sell a destination. But it’s also a model from a different era. An era when brands controlled the message and pushed it out across billboards, full page ads with tear offs in the corner and press releases. An era when consumers took those ads at face value and believed what brands told them. An era without the Internet.

The video is a fun piece that has received 1,500,000 views in 10 days with 21,000 Likes on YouTube. But here’s the rub. TAT should have been upfront about the video. As it is, they have given the impression it is consumer generated and that is wrong.

The video has also received more than 1,625 comments and the majority of them are not very complimentary. In fact some of them are downright hostile, talking about robberies, threats of violence, policemen that don’t speak English whilst others say the video is a scam and wrong.

One Thai commented, “Its too good to be true. No one would come by and give you a drink like that and Thai people wouldn’t give you sleepover at their house, especially in the tourist area.”

Another focused more on the deception, “How you will discover the truth by watching a fake video where the first words are already a lie. His name is not James. His name is Oliver Smith and he got paid by TAT to make this video. Look around yourself and consider how many real friends are left if you are out of money. This is not a Thai related issue it is everywhere around the world the same story. No money no honey. Same same but different. I love Thailand but I definately hate liars. And using lies to portrait (sic) a countries (sic) image is a mistake and an insult to all the honest Thai citizens. If they just made a short statement at the end of this clip that this is a TAT promotional video I would give my congratulations for that nice pink tinted heart moving clip.”

TAT is going to have to work harder than creating a video and passing it off as genuine consumer generated media to restore faith in the country.

It’ll need to work out a strategy and communicate that strategy effectively with multiple proof points. And if it wants to use social media and create influencers it needs to do it properly. There are no shortcuts in branding.

Real world examples of how to cost effectively use Social Media to build your Brand

Published on 25/11/2014 by brandconsultantasiaLeave a comment

To build a brand you need to get a number of things right both internally and externally. And then you need to develop a long term profitable bond between your offering and your customers.

The best way of doing that is by delivering economic, experiential and emotional value to those customers and on their terms. That’s universal and there are no shortcuts. Of course how you go about delivering that value depends on your firm, your industry and your customers.

Historically firms have tended to try and use creativity to communicate a corporate driven message to as many people as possible, whether potential or existing customers in the hope that enough of them will see/hear the message, respond to it and buy into it so that the firm can get through the year.

Does it make sense in the social economy? — Outdated and doesn’t make sense in the social economy.

According to Harvard Business Review and many other respected institutions, this model is obsolete. It’s also incredibly expensive with one expert saying it requires US$10 billion and ten years to build a brand in Europe this way.

Sadly that doesn’t stop millions of brands spending billions of dollars on an outdated and ineffective model that few of them can afford to sustain. This is particularly true of brands in Asia.

Nevertheless, there are some smart brands out there and social media provides an excellent platform to showcase their tactics. Instead of wasting marketing dollars on expensively produced and immediately forgetable advertising campaigns, these smart brands are investing more money on retaining customers than acquiring them.

Of course this makes branding a bit more complicated because it means these brands need to get to know their customers and their needs and not just shove a message down their throats and expect them to accept it. Unsurprisingly making such an effort isn’t that popular with many brands, especially here in Asia. Sure they talk about how they want to understand their customer needs, some even say they love their customers but those claims rarely translate into reality. As a result Asian consumers tend to be less loyal to brands.

OK, rant over! A couple of great tactical campaigns have come to my attention recently and there are a lot of brands around the region that can learn from these activities. They required an investment in researching customers, understanding them personally and then providing simple solutions that resonated with those customers. The investment was minimal but the exposure is exceptional and ongoing.

The first example is from Canada’s TD Bank. For a week in July, Automated Teller Machines (ATMs) in branches across Canada became Automated Thanking Machines and in addition to dispensing money, they spoke to and engaged customers, thanked them for banking with TD and delivered personalized gifts.

The bank gave out flight tickets to one customer so that she could fly to Trinidad to visit her daughter who had cancer. Another lucky recipient won savings accounts for her children each with C$1,000 deposited in the account.

Another customer won a trip to Disneyland and a Baseball fan won the right to throw the first pitch at a Toronto Blue Jays match, lots of merchandise and met one of the players. Phone and online customers were also given deposits directly into their bank account.

The response was phenomenal and four months later it continues to gain valuable coverage in social media and in the mainstream media with the UK’s Daily Mail covering the story in August.

In the first 4 months the video was viewed 17,500,000 times on Youtube, gained 50,000 Likes and 5,000 comments that generated extensive conversation that is still ongoing. On Facebook the TD Bank page has generated almost 550,000 Likes.

More recently, KLM wanted to reach out to customers travelling through the world famous Schiphol airport in a personalized way by giving friends and family the chance to say an extra goodbye. Working with the airport, the carrier identified families saying goodbye to each other at the airport and approached them with the chance to create a nice surprise for the traveller by personalizing the cover on their seat headrest.

In the first week the video on Youtube has already been viewed 208,000 times with 150 Likes and 30 comments. On Facebook the campaign has generated 16,500 Likes, nearly 2,000 shares and 550 comments. As the campaign gains momentum those numbers will, err soar skywards.

Social media allows brands to engage customers and allow them to participate in the development of the brand narrative in a way that those brands using a traditional approach can only dream of.

It’s very hard for a lot of brands to understand they can no longer control the message and instead they must pass on some of the control to consumers and let them develop it.

Once the campaign gains traction other consumers share it across the ecosystem and with the right management and before you know it, a minimal investment has generated far more brand goodwill and sales than any traditional advertising campaign is ever likely to do.

Brands have a responsibility to tell consumers the truth about their products

Published on 24/11/201424/11/2014 by brandconsultantasia2 Comments

Numerous papers have been written on the influence of advertising in developing countries. Most of the papers suggest that historically advertising influences consumers more in the developing world than it does in developed countries.

This probably stems from a ‘traditional suspicion towards the ‘middleman’ as opposed to a belief that manufacturing or production is more ‘honourable’ or ‘respectable’’. Malcolm Harper “Advertising in a developing economy”. The assumption being that the manufacturer’s message has an air of respectability about it whilst the sales pitch of a salesman or middleman should be viewed with suspicion.

Firms, especially Western firms spend a lot of money on advertising in Asia to convince consumers to buy their products. The problem is of course that far too many consumers have been let down by products that fail to live up to the promises made in the advertising. This is one of the reasons quoted for the advertising fatigue across Asia.

In fact many experts suggest this is also why Asian consumers are so obsessed with discount and, perversely Western luxury brands with a clear evidence of a quality heritage. Clearly, if brands want to continue to have an influence on consumers, they must be honest with those consumers.

One firm that always spends big on advertising is Proctor & Gamble (P&G). According to Ad Age P&G spends an incredible US10 billion per year globally on advertising. In the first 9 months of 2014 P&G spent US$48 million on traditional media in Thailand and often its ads are dubbed to be shown across national borders.

The ad above was shown in Malaysia but looks as if it was produced in a different language. The ad shows a family all working together to get the son through his exams. However, the dad appears to have a cold and although the mum stops his sneeze with a pillow, the voiceover tells us that germs can spread through fabrics which the wife complains are hard to wash.

Cue voice over claims that Fabreze Ambi Pur eliminates flu viruses and odours, 99.9% of germs and freshens fabric, leaving a light scent behind”. The ad closes with the son getting an A+ and the line “Odours and flu virus go, freshness stays.”

I think that based on the ad, a lot of possibly gullible consumers are going to think that by using this product they won’t have to wash big items like blankets, carpets and cushion covers.

Air fresheners and in particular Fabreze Ambi Pur are very popular in South East Asia. Get into a car in Malaysia, Singapore, Indonesia or Thailand and the chances are you’ll see a Fabreze Ambi Pur product placed in front of the air conditioning vent.

Many government offices have machines on the wall that squirt out similar products at regular intervals. And the Malaysia Ambi Pur Facebook page has 90,000 Likes and the Thailand Facebook page has nearly 160,000 Likes.

That’s an impressive following. But can Ambi Pur really eliminate flu viruses? Can it really eliminate 99.9% of germs? And what are the effects on humans of the chemicals contained in these products?

According to the sustainable baby steps website, Fabreze is a dangerous product. The site claims it contains a total of 87 chemicals, many of which are supposedly dangerous to humans. It suggests that Fabreze doesn’t clean the air but instead masks the odours with chemicals. The site goes on to provide a number of natural, inexpensive ways to keep a home smelling fresh and healthy.

Another site that claims to ‘set the standards for safe self care’ says that Fabreze contains phthalates which are ‘hormone-disrupting chemicals that have been linked with childhood asthma.’

P&G doesn’t share any of the apparently harmful ingredients in Fabreze. Oddly, the Ambi Pur ad is filed under education on Youtube.

P&G is a global brand and an influential advertiser in South East Asia. It maybe that spraying chemicals on a cushion is not harmful. Whatever it is, P&G has a responsibility to educate consumers properly, truthfully and in a transparent manner. Otherwise, it will lose its respectable tag.

Can a cynical Christmas TV commercial save a luxury brand?

Published on 14/11/201414/11/2014 by brandconsultantasia2 Comments

Luxury brands are beginning to feel the effects of slowing economic growth in Asia, political protests in Thailand and Hong Kong, political confrontation in Russia and Ukraine, political instability in the Middle East and the threat of Ebola.

Demand from Asia for luxury goods, especially expensive bags and other leather products appears to be on the wane. Struggling more than many others is Mulberry, one of the finest British luxury brands and manufacturers of exquisite leather goods that are actually made in England. In fact, as many brands look to increase profits by outsourcing their manufacturing to China, Mulberry is increasing production in the UK.

60% of Revenues from the UK
Mulberry generates more than 60% of its revenue from the UK but has been trying hard to grow sales outside of the UK, particularly in the US and Asia. In its quest to become a global luxury brand it has made some disastrous strategic decisions including raising its already high prices to differentiate itself from more affordable luxury brands.

For the British Mulberry was always an aspirational brand that offered affordable luxury but by going after the rich in Asia and America, it may have priced itself out of the segment it once dominated in the market it makes the most money.

At the beginning of 2014, the Chief Executive Bruno Guillon announced that he intends to bring ‘more excitement’ to the brand. From the outside this seemed to be nothing more than trying to create ever more expensive handbags that competed head on with Chanel, Hermes and Louis Vuitton. Bags that had once cost £500 got a makeover and were back on the shelves at £900.

The core customers were upset and drifted to other brands. By March 2014 Guillon was on his bike and Chairman Godfrey Davis returned to take the reins. In the summer of 2012, Mulberry’s share price topped £25 (RM140). By the time Guillon left it was around £6.40. Today it has regained some value at £7.30 (RM40) but is still off its peak.

Deserting middle England
Guillon was accused of deserting ‘middle England’ the middle classes that made the brand. Judging by the Mulberry 2014 Christmas ad it looks like the brand is trying to regain its relationship with that loyal segment.

Christmas in England is commonly associated with Santa Claus and reindeer, over eating, cottages covered with snow, a tree with lots of presents in front of an open fire, carols and goodwill to all men.

But in some families there is a darker side to Christmas that is rarely spoken about. The competition to give the best possible present, often to the most annoying and spoilt family member, can be intense. With this in mind, Mulberry has created a cynical but lovely parody in what I think is their first ever Christmas commercial.

33% of annual sales generated in November and December
In the west, retailers generate over 30% of annual sales during November and December and Mulberry will be hoping this ad will kick start the recovery of the business. Longer term they need to work on rebuilding their core values and create a Mulberry narrative that resonates with their target markets and once again become a successful aspirational brand.

But in the meantime, it’s Christmas morning, somewhere in middle England…

You can always shock viewers into buying your Brand

Published on 12/09/2014 by brandconsultantasiaLeave a comment

Watch this commercial before reading the post.

Last night I watched an episode of Mad Men where Harry Crane, the new head of the new television department at Sterling Cooper (It’s season 2) almost got fired because he allowed a Maytag commercial to appear in a TV programme related to communism.

He nearly lost his job because the brand didn’t want to be associated with a contentious or negative issue. This has been a standard approach of brands over the years which is why you won’t see a commercial for an airline aired on a programme about aviation disasters or a commercial for an automotive company in a programme that features a car crash.

Well that used to be the case. Recently Volkswagen in Hong Kong and O&M created an this campaign solely for cinema audiences. It’s interactive and gets the viewers attention.

I like the ad but I’d like to know more about it. What is it for, is it to sell cars? Or is it a public service exercise? If the former, does it send the right message and will consumers remember the brand for the right reason? If the latter, does it make a difference? Such ads don’t stop people smoking, taking drugs or drink driving so why will this one work?

Like I say it’s a great bit of creativity. VW had a record year in 2013, selling 2.51 million cars in China and Hong Kong. This will certainly help VW stay top of consumer’s minds. But I think Harry Crane is turning in his grave. That’s not a plot spoiler. Well I don’t think so as I’m only on season 2!

Working with the police to build a brand

Published on 11/09/2014 by brandconsultantasiaLeave a comment

Few people know that just about everything we buy is owned by 10 jumbo companies such as Kraft, P&G, Nestle and Unilever. Last year Unilever spent more than US$10 billion (that’s about the same as the GDP of Iceland) on advertising and still managed to see a drop in sales of around 3%.

Unilever is the global market leader in ice cream and the business is worth about US$5 billion in revenue with about 40% of that coming from Cornetto and Ben & Jerry’s.

Cornetto sales in the US were down 2.5% last year and Europe isn’t much better. Sales there are affected by the inclement Northern Hemisphere weather and so the firm is looking to Asia for future growth.

Early results are good and we could see more of this sort of cheeky, unexpected humanised type of product building out here. Sells the product and shows a human side of the police force. Long overdue IMHO.