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.
Here’s an example of how to successfully engage with customers on Twitter.
A customer complained about a brand in the UKRather than complain, the brand engaged positively with GoogleGoogle 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!
I’d like to take this opportunity to thank you for letting me be your customer for more than 25 years. During that time I’ve had some amazing experiences with a brand for which I’ve always had a soft spot.
I remember as soon as I could afford a ‘proper’ car, I went out and bought a BMW. I was living in Bahrain, it was 1989 and I purchased a stunning 1982 635csi with a little rubber spoiler on the boot. Black with red leather interior it was a beauty. Of course it was seven years old so always broke down but I was young and didn’t care. Even in the summer, with the temperature hovering around 45 degrees C when I found myself sitting yet again in a pool of sweat by the side of the Shaikh Khalifa highway whilst waiting yet again for Ali (we were on first name terms) to arrive in his tow truck, I felt privileged.
BMW 635csi
I saved up and soon purchased a brand new British racing green 525i that was ideal for those long journeys across the desert to Riyadh. At around this time and due to competition from Japanese and American brands, you began to position BMW as a luxury brand (we won’t mention the disastrous acquisition of Rover and the ridiculous belief that you could position Rover as a luxury brand).
I think it was 1992 when I bought the 5 series but I have to say it was tough selling it a few years later, around the time you lost about £700 million in one year (close to £2 billion in today’s money) and your brand was struggling to live up to expectations.
525i ate up the miles between Bahrain and Riyadh
When I arrived in Malaysia after my stint in Bahrain, I couldn’t afford a new BMW and anyway your reputation here was so bad then that I wouldn’t have bought one if I could. But using service and customers to drive the rejuvenation of the brand culture you turned around your poor reputation and kudos to you.
The good news was that by 2012 I was in the market for another new BMW. By now I’m a husband and father and doing well. So my wife and I bought an X1. To be honest that was a mistake but as offloading it would incur a massive loss (it didn’t take off in Malaysia) we decided to sell it to one of our small companies and buy an X3. By the way, what exactly is the X1? Is it a hatchback? Is it a family estate? To be honest I could never figure it out but I’m glad we got rid of it because the plastic on the dashboard buttons was beginning to come off and the door was creaking and the rear window was starting to rattle.
Now the X3 was a hit with everyone in the family and we’ve had some great times in this car. It purred on long journeys to Singapore, Terrengganu or up to Penang. The X3 lapped up the school runs and trips around town and by the end of 2014 we had done close to 100,000 kms. Not huge mileage, especially for your cars but that’s when things started to go wrong. Sure there were similar little niggles to the X1 – rattling window and creaking door but we tolerated them.
In mid 2014 the X3 started to spew grey smoke out of the exhaust. Now remember we live in the tropics so cars are fairly warm when they start so it wasn’t due to a cold engine but I wasn’t bothered as this is a BMW and I’d read on the BMW website that, “Original BMW parts are subject to the same standards of quality as BMW vehicles – from construction planning to quality assurance.”
At BMW it would seem longevity is up to 2.5 years
Of course when I read that before buying a car I felt reassured and it was one reason why I had ignored the fact that BMW only gave a 2 year warranty when competitors were giving anything from 2 – 5 years. But reading it again it suddenly looked like a bunch of words stuck together to make me think the components were solid and reliable. Obviously not.
So I went back to the website and read it again and realized that the copy was hard to understand. I mean read this, “The precision and high-quality construction of each original BMW part guarantees that all components in your BMW work together perfectly – for optimum performance and maximum safety and longevity.” Is it common then for some manufacturers to construct parts that don’t worth together perfectly? And what’s the definition of longevity in Munich? When it comes to certain components is it less than 30 months or does it depend on the component?
As I was considering what to do about the smoke, the airconditioner stopped working and in the tropics you need aircon. So we sent the car to the dealer we bought it from and asked them what was wrong.
They told me that both the compressor and the turbo needed to be replaced. Now I have to say I was taken aback by this. We’re talking about a BMW here and although I’m no petrol head, I was confident these components should last more than 30 months, especially as BMW prides itself on the longevity of its parts (assuming longevity is more than a couple of years). So I scoured the Internet looking for complaints about the X3 turbo unit and compressor and couldn’t find any!
One website http://www.consumeraffairs.com features an astonishing 786 complaints about BMW but as far as I can see not one of them is related to these 2 components. Another site, http://www.bimmerforums.com also has a surprisingly large number of complaints about BMWs but nothing about these components which again suggests to me once more that I was just unlucky and got a car with 2 faulty components. After a great deal of searching, all I could find was one poor BMW user who had to wait 22 years before he could replace his compressor.
As for the turbo issue, most online discussions around the current generation of turbos suggest a lifespan of up to 250,000 miles. I thought that was a little ambitious so I halved it which meant I should get 125,000 miles or about 200,000 kms. My X3 has done less than 100,000 km and the turbo is kaput.
Unless the longevity of your components means no more than 2.5 years, I think you’ll agree that these two bits of hardware should last considerably longer than they have done on my car. I also own a Mercedes C250 and a 5 year old Suzuki and neither of these cars have any problems with these or other major components.
I contacted my dealer and asked them to replace the parts free of charge because it doesn’t take a rocket scientist to realise I was just unlucky and had got a faulty car or at best a car with faulty equipment. And in today’s transparent, human environment and with your focus on the customer as well as our long association, I thought this would be a relatively simple process. After all, all I’m doing is asking BMW to take responsibility for the issue.
At the same time, on December 18th 2014 I wrote to BMW customer service in Munich and received an unsigned email the same day telling me my complaint had been forwarded to the relevant department for assessment. I can only assume that assessment is continuing because as of today, 19th January 2015 I haven’t heard from anyone.
Meanwhile the dealer immediately offered a discount of 20%. I took this as a sign that he agreed with me because logically if it was common for these components to fail so quickly, they wouldn’t have offered me a discount. I wasn’t happy with this discount and realizing the dealer isn’t the manufacturer, I decided to contact the head of BMW Malaysia.
The only way to get hold of Mr Harris is through his secretary. I don’t know if she passed my email to him because he didn’t reply (but she did tell me when I called her that he is very busy) but she did pass the email to staff in customer service (the irony) and for some reason to the after sales area manager who was the only one to contact me, unless you include a variety of automatic ‘out of office’ emails as contact.
The After Sales Area Manager wrote to me (spelling my name wrongly – that really bugs me because it suggests sloppy standards and that’s not good in the automotive industry, ask British Leyland and a host of other dead automotive brands).
In his letter he informed me that BMW cars have a 3 year warranty on paint defects and 12 years unlimited mileage against paint corrosion and a bunch of other irrelevant stuff that just rubbed salt into my wound.
So I wrote back to him suggesting it is only right and fair that BMW takes full responsibility for these defective components and replaces them free of charge. I asked him as the representative of BMW to accept this responsibility and ensure this negative experience doesn’t escalate further.
Later he called me and we spoke for about 10 minutes. I once again explained the problem and when I finished he said it didn’t matter because BMW was not going to replace the parts free of charge and that “You have a contract with the dealer not BMW.” Stunned at this response I asked him to pass me to someone in customer service or management who might be a little bit more empathetic but he refused saying, “I’m not going to escalate this higher.” Shocked I told him that in that case I would take my complaint public and he laughed and said, “I’m going to end this call because you are wasting my time.”
And that’s as far as I got. All I wanted was you to accept responsibility for a couple of substandard parts. To see the bigger picture and give a little bit back after 25 loyal years and numerous positive recommendations. But I didn’t get it. There was no empathy, no demonstration of your customer focused values, despite what you say in your recruitment video and a complete lack of concern over my situation.
So as it stands I really can’t see myself buying another BMW because I’ve lost faith in the brand. I really like the clever way you use a German speaking Chinese lady to communicate your caring and customer focused culture and “reaching out to the individual and speaking to him in a very personal way” but as a customer, I’m not feeling it.
Certainly that culture hasn’t filtered through to the people in your office in Malaysia. Certainly not the one who told me “he was going to end the call because I was wasting his time”. And contrary to what the confident girl said in the video, the culture of your company appears to be very different to what it actually is.
My friends will probably be happy because I’m a very vocal brand advocate so at least they won’t have to listen to me yapping away at how great BMW is. But they do have to listen to me whine about the cost of the repairs.
We’re going to miss those beautifully packaged boxes you send out with the “exclusively for BMW white card owners” on them that include a desk calendar for me to promote you and a brochure with ‘special offers’ that are not as good as I can get myself if I go directly to the company but I know you mean well.
So it looks like it is goodbye from me, your friend and advocate of 25 years.
The recent announcement by the Malaysian government that it will invest RM6 billion of public funds to revive Malaysia Airlines (MAS) is a good idea and one that should be welcome by every Malaysian.
MAS a national icon worth saving
The national carrier is a source of immense pride for Malaysians and so it should be. In the broader perspective, MAS has an exemplary safety record, provides direct and indirect employment for thousands of Malaysians and was profitable for many years.
Furthermore, when managed effectively and innovatively and when the importance of morale was understood, the national airline played a major role in defining the Malaysia Nation Brand as it was the first touch point for many of the more than 10 million passengers carried annually.
Moreover, through MAS, Malaysia got the opportunity to reach out to consumers with a physical product, develop a relationship with them and build a profitable business at the same time. Many of the millions of Europeans who flew the ‘kangaroo route’ from Europe to Australia and New Zealand became brand ambassadors for the carrier.
Much of that goodwill has been eroded but the brand is still intact but there is a lot of work to be done to rebuild global trust in the brand. The recovery plan that will require sweetheart deals to be renegotiated, staff numbers to be reduced and other major restructuring initiatives are just the beginning. Rebuilding internal branding and developing a strong, innovative, customer focused external brand strategy will be just as important.
While the airline restructures, it needs to continue to operate. In June 2014, when MAS CEO Ahmad Jauhari Yahya told shareholders that the MH370 incident had “sadly now added an entirely unexpected dimension, damaging our brand and our business reputation, and accelerating the urgency for radical change”, I was expecting, well radical change.
Externally, it looks like that radical change consists of nothing more than slashing prices!
Slashing prices won’t build confidence in the MAS brand
MAS is reported to be offering cut price ticket prices from the UK, Australia and New Zealand to Kuala Lumpur in an attempt to do what regional senior vice president Lee Poh Kait termed as, “inspire and encourage customers to dream, plan and book their next holiday, and help rebuild trust in Malaysia Airlines.”
Mr Lee also told Australian news site news.com.au that, “With unbelievable savings, these deals are a very competitive offering as we build a stronger Malaysia Airlines.”
He also went on to say, “We are committed to regaining the confidence of our customers and sending them on memorable holiday experiences as a trusted five-star carrier.”
In addition to slashing prices, MAS also launched ‘My Ultimate Bucket List’ competition with 12 return flights to Kuala Lumpur and 4 iPads as prizes.
Its not uncommon for bricks and mortar retailers to slash prices in the face of poor sales and it’s a familiar tactic of low cost carriers looking to sell excess seats. The idea is you attract new customers who might not have bought from you and you get a spike in sales that will get you through the lean times. But we’re not selling soap powder, software or biscuits.
An international airline that competes in the same space as Singapore Airlines, Cathay Pacific and the increasingly aggressive Middle Eastern carriers and is reeling from two tragic events is not going to build a stronger airline or rebuild trust by slashing prices.
Slashing prices gives the impression the project is cheap, something MAS cannot afford to do. It also smacks of desperation and lowers the value of the product to that of a low cost carrier and may well cause customers to lose not rebuild confidence in the airline.
THe lastest MAS online ads are easily forgotten
Furthermore, by slashing prices, MAS is throwing away all of the pricing power it has built up over the past few years, power that will take years to win it back.
The regional senior vice president also said “We would like to thank all our travel agency partners and passengers for their relentless support during what has been a difficult period.” I understand that MAS has also doubled the travel agent commission rate to 11% till mid September.
At the same time as this seat sale and travel agent incentive is launched, the MAS frequent flyer programme (FFP) Enrich is sending emails out to 14 year olds offering them the opportunity to earn extra air miles if they book a hotel with the MAS hotel booking partner. Not many 14 year olds book hotels.
Enrich marketing is sending out up to 8 emails a month asking members to play golf at the Mines, get double miles when they fly with Firefly, take advantage of a sale at shoe shop Lewre and various other offers.
Used properly, the MAS FFP database is a potential revenue gold mine
After flights, the airline is also sending an email to travellers asking them to complete a survey that asks questions such as “At which airport did you board/leave this flight?” and “Class of travel” as well as questions that the answers might be good to know but don’t identify causes of dissatisfaction or provide any real actionable data.
Meanwhile, while MAS offers travel agents double commission on bookings, MAS loyalists who have flown more than 20 times since MH370 went missing in April 2014 haven’t received personalized communications from the airline thanking them for their support or an offer of free air miles, upgrades or other shows of appreciation.
Based on this evidence, it would appear MAS has essentially ignored its existing customers and frequent flyer members and instead gone out and offered special deals to all and sundry in the hope that enough of them will take the bait and fly the airline.
This discounting approach will do little to regain trust or repair the battered brand. Here are 6 tactical initiatives MAS should be doing to rebuild trust before slashing price:
1. Existing customers are more likely to buy than those who haven’t bought before
Right now a focus on gaining new customers or market share is a misguided approach. Yet MAS, like so many firms is attempting to do just that whilst ignoring its existing customers. The MAS FFP Enrich is rumoured to have more than 1,000,000 members. The database of Enrich members is a potential gold mine of revenue that needs to be cleaned and leveraged properly and quickly with a well planned and implemented programme.
2. All data is important
OK, MAS probably doesn’t need to know the name of every FFP member’s pet but it does need to know enough data to know what products should be sold and to whom and how to increase share of wallet.
Consumers are willing to share more information than ever before and MAS needs to start collecting data and sending the right offers to the right people. Sending invitations to book hotels to 14 year olds is sloppy and shows a lack of professionalism and that will do nothing to rebuild the brand’s reputation.
Good to know but how can the answers help rebuild the MAS brand?
3. Leverage the power of social media
Each customer’s experience is defined by the economic, experiential and emotional value of each ‘moment of truth’ when interacting with the brand so mass advertising campaigns either online or offline and slashing costs are not going to rebuild the MAS brand.
There is a great deal of sympathy out there for MAS and a bright, real, transparent, honest and consumer driven campaign on social media about real people travelling on MAS will inspire more people to develop a relationship with the airline (and relationships are the goal, not selling seats) than any seat sale with a weak call to action.
4. Branding is about experiences and relationships, not one off sales
Few consumers are going to develop a relationship with a brand based on a one off sale. And besides, legacy carriers can’t compete with LCCs and the moment MAS tries to increase prices, those customers won on price will go elsewhere. MAS must start building relationships with its customers and leverage those relationships to increase sales.
The success of those relationships will be determined at every touch point which means the website booking engine, check in staff, customer service representatives, ground and airport staff, cabin crew, in flight entertainment, comfort and service, baggage operators, communications, helplines and more must be all be ‘on brand’ and on top of their game at all times.
5. Stop being lazy and start re building the MAS brand
There is no short cut to rebuilding the MAS brand. It is going to take a lot of effort strategically and tactically. Slashing prices and flooding the Internet with forgettable, price driven ads won’t turn the company around. The MAS website has been a mess for too long. No matter what the cost, funds must be made available to fix the booking machine and fix it quickly.
It’s also time to retrain front line staff as they currently do not have the skillsets required to deliver a premium brand that can compete with the aggressive ME carriers.
6. Think customer not customers
The customer is only interested in one thing, what’s in it for me (WIIFM). Yes many of them care about the airline but they aren’t about to risk their lives or those of their families.
Every single customer flying MAS in these difficult times has to be made to feel special (this should be part of the brand strategy but is particularly important now).
Those customers flying MAS now are the saviours of the brand and must be nurtured to become brand ambassadors and brand advocates who will be talking loudly about the fact that they are flying the airline now.
Make the experience a memorable one and they will talk loudly and for longer and do more to rebuild trust that any corporate driven advertising or PR campaign.
None of this is rocket science but these 6 top tactical tips will lay the foundations for the rebuilding of the Malaysia Airlines reputation quicker and more effectively than slashing prices.
This is the biggest weekend of the year in Malaysia as families across the country go home for the end of Ramadhan Eid holidays. As Monday and Tuesday are public holidays, many people will have a nine day break.
For me personally I’m looking forward to some quality time with my family in Sarawak, one of the best kept secrets in Asia. I’m flying business class to Kuching about an hour and forty minutes flying time from Kuala Lumpur.
When I get to the airport they tell me my flight is delayed. Now I’m a little bit annoyed by this because I’ve been a member of their FFP since it began and they have my email address and mobile number so they could have let me know the flight was delayed. But hey, that’s a minor issue and besides, if it’s a technical problem I’d prefer them to discover it on the ground and not in the air. Incidentally when I checked in, there was no apology from the girl at the desk.
MAS is carrying out renovations to its lounge at KLIA so I am directed to a temporary lounge. When I get to the lounge I show my boarding card to the person at the counter who looks at it and hands it back. There is no mention of flight announcements. The greeting isn’t rude but it’s hardly enthusiastic.
I sit down and get online. The lounge is quiet, I’m in a good mood, and considering I’m at an airport and about to get on an MAS flight I’m relaxed and excited at the prospect of spending some quality time with my family in a beautiful place.
30 minutes later I get to that point in an airport where you feel like you need reassurance that everything is alright. So I go to the counter and ask about my flight. I’m told it is delayed (like I didn’t know that) and the staff member points to a time on the boarding card and mumbles something incoherent.
I don’t know about you but when I’m at an airport there are so many distractions, so many unusual assaults on the senses that I rarely pay attention to announcements however, a little later, I suddenly look up and realize I haven’t heard an announcement about my flight or for that matter any others. I ask one of the MAS staff in the lounge what is happening with my flight. She goes to the desk and comes back and tells me my flight has left!
I’m stunned and ask someone to explain what just happened. The explanation revolves around the fact that it is a temporary lounge and they don’t make announcements and anyway, there is a sign on the desk stating that there won’t be any announcements.
Now bearing in mind getting passengers to the plane is a fairly important part of an airline’s responsibility, the sign below can hardly be described as adequate, especially with all the other messages on the desk.
The pathetic sign stating there will be no flight announcements
Understandably I’m not impressed. This is business class, there aren’t many people waiting and it wouldn’t take much effort on the part of the staff to inform the few passengers in the lounge that their flight was boarding. Furthermore, if one business class passenger is late arriving at the departure gate, how much effort does it take for the staff at the gate to call the business class lounge and ask if the passenger is there? Aren’t these the little things that help passengers justify paying more for a ticket?
For some reason I’m then sent to the flight transfer counter where I listen to a staff member explain my situation to other staff members who all look like the last thing they want to be doing right now is deal with this issue. No one tells me anything. Eventually after interrupting the conversation I learn that my luggage has been sent to lost and found and I have to go and get it and not to worry, I will be put on the next flight.
I then go back to the lounge and 10 minutes later another member of staff tells me that I have to go and get my luggage because he doesn’t have the authority put it on the next flight which is odd because someone had the authority to take it off the previous aircraft and send it to lost and found but most galling of all, he tries to nickel and dime me for RM150 penalty to change to the 5.55pm flight!
He’s not very happy with the fact that I’m not very happy but obviously is just following a procedure and not interpreting the situation as it is. I realise he doesn’t have any authority so ask him to send a supervisor to talk to me. He walks off to the desk and sits down. 30 minutes later he is still there and making no effort to update me so I have to go and find out what is happening. He tells me the supervisor will be here in 10 minutes.
25 minutes later I get up again and go and ask him what is going on. He says the supervisor will be there soon. As we’re talking the supervisor arrives. She manages to talk to another supervisor who agrees not to charge me the RM150 penalty. It has taken me a lot of effort to get to this stage.
But it doesn’t get better just yet. It transpires that I wasn’t put on the 5.55pm flight, I was put on the waiting list because the flight was full. No one told me this. I asked what time is the next flight, answer 6.30pm but it is also full. The next flight after that with seats is 7.30pm. By the time I board that flight I will have been at the airport for six hours.
So how is related to the problems at MAS?
Throughout this horrendous experience I felt that on the whole, with the exception of a couple of members the staff were sympathetic to my predicament and wanted to help. But the problem is they just didn’t have the knowledge or the skills to deal with the situation effectively.
Being told repeatedly that the lounge is temporary and therefore there won’t be any announcements is not good enough but it isn’t the fault of the staff. It suggests the company doesn’t understand the importance of the customer. Especially highly profitable business class passengers.
It’s great that you are renovating the lounge but it doesn’t mean you lower your standards in a temporary lounge. It might be temporary to you but to every passenger, it is still the lounge. It’s not like I’m paying less for my ticket because I am using a temporary lounge. Does it mean that when you lease an aircraft from another airline you lower your engineering or safety standards?
And besides we’re talking about the worst time in the airlines history. Shouldn’t every customer willing to spend money with the airline at this difficult stage be appreciated more?
The attitude of the lounge staff was at best adequate. I got the feeling they were doing the job but nothing more. And having flown Malaysian Airlines for over 20 years I have to say I’ve felt this way for the last 12 – 15 years.
If the MAS brand is to survive, those that make the decisions on training have got to understand that the airline is not doing passengers a favour. Numerous reports released over the last 5 years point to service as being the main factor influencing consumer brand choices.
In every report I have read recently, the averages percentage of people who switch brands because of poor service is around 70% and goes as as high as 80%. It is universally accepted that customer service is critical to the success of a brand. That service comes from effective and timely training based on the changing needs of customers.
The issue is that what may have been considered acceptable customer service yesterday is no longer acceptable today. Moreover, as more and more companies raise the bar in terms of the quality of service they deliver, consumers expect more. Training needs to be updated and reinforced.
Nowadays, for an Asian carrier to thrive let alone survive, it has to have a culture not of customer service but of exceptional customer service. The ability to deliver exceptional customer service is the only way brands can build the loyalty that will differentiate themselves from other competitor brands.
Armed with the skills and tools needed to deliver exceptional customer service, staff will have the ability, confidence and enthusiasm to go the ‘extra mile’ when dealing with their customers.
Malaysia Airlines is a service product in a very competitive space. Despite the two very tragic incidents in the last 5 months numerous customers such as my family and I have stuck by them.
Right now it is tough being loyal to MAS and it isn’t made easier when they can’t even get the basics right. I, like many loyal customers don’t want any special treatment but I do expect a decent level of service.
As I write this, there is talk in the UK newspapers of a strategic review of MAS that may include renaming and rebranding the airline. I don’t know what they define as a rebrand but it’ll take more than a change of name to save MAS.
Business today is brutally competitive. Many brands that have done the hard graft to get to the top of their industry, fail to stay there. It used to be that if you made it to the top you were sitting pretty. Not anymore, getting to the top is the easy part. Staying there is now the difficult bit.
Just ask these 5 brands who are unlikely to make it to Christmas 2014.
Volvo ad campaign tried to convince consumers it was wicked!
Crucially, Volvo doesn’t have enough models and is forced to compete in Asia and the US with entry level vehicles from luxury marques Audi, BMW and Mercedes as well as giants like Toyota and GM.
In the United States, Volvo’s market share hovers around the 0.3% mark. In Thailand, the largest automotive industry in South East Asia and the 9th largest in the world, Volvo has had a presence since the mid 1970s yet it only sells around 2,000 cars a year out of a predicted 1.3 million vehicle sales for 2013. In Malaysia it’s less than 1,500 out of a total industry volume of almost 600,000.
Volvo was bought by China’s Geely group in 2010 for US$1.6 billion. Geely targetted sales of 200,000 cars a year in China by 2015. To meet these targets, it’s rumoured that the dealers in mainland China inflated sales figures to generate cash incentives that should have gone to customers but were in fact retained by the sales force. It’s thought that as many as 20% of sales in China were ‘fake’.
A messy marketing approach, limited models and falling sales in key developing markets. Volvo needs to get its act together quickly if it wants to be around in 2015.
4 NOKIA
The Finnish handset giant has gone from hero to zero in a heartbeat. In 2010 Nokia, sold 450 million handsets, outselling Apple 10 to one.
Consumers don’t want phones they want smartphones
But Nokia’s mobile phone market share was already falling, from a high of 36.4% to 28.9% in 2010.
In 2012 the firm sold 16 million of its flagship Lumia handsets. In the same period, Samsung sold 384 mobile phones while Apple sold 125 million iPhones.
Nokia makes great phones. The trouble is consumers don’ want great phones they want great smartphones and a smartphone needs a good operating system.
And Nokia made the mistake of backing the wrong OS horse when it backed Windows mobile. A big mistake that it acknowledged when it went public with its frustrations with Microsoft’s failure to give smartphone users a good enough reason for using Windows.
As 2013 closes, Nokia is worth 10% of what it was 5 years ago and tragic though it is, Nokia is probably doomed.
3 DELL
Dell makes PCs. Lots of them and very cheaply. In 2000 it made more and sold more than any other company. Dell used to have very good customer service but somewhere along the way, Dell stopped focussing on its customers and focussed instead on producing cheap PCs.
Not anymore
But as Dell is finding out the hard way, cheap is not a differentiator. Worse still and unfortunately for Dell, global PC sales are tumbling as tablet sales skyrocket. So it now has a larger share of a declining market and a poor reputation with customers (a death sentence in the social economy if every there was one). No doubt this is major factor in the fact that in its fiscal second quarter, net income was down 72% from the same period a year earlier. That’s not good.
In September 2013 Dell shareholders approved a US$25 billion buy out by the founder Michael Dell and Silver Lake. This will allow Mr Dell to make acquisitions, increase R&D spend and target new markets away from the scrutiny of Wall Street. Mr Dell has also expressed considerable interest in next generation cloud based services to improve the way businesses operate.
This may keep Dell alive past December 2014 but it will be a very different company to the one we know now.
2. WINDOWS
In the mid 1990s Windows had over 90% of the computer operating system business. Today that share has shrunk to about 15% for sales of new devices and according to Gartner it is unlikely Windows will ever get back much above 15%.
Windows mobile may bury the brand
Windows 8, launched at the end of 2012 was supposed to give the mobile operating system a boost but it failed to ignite much interest and Windows phone now has 2.9% of the smartphone operating system market.
This despite advertising spend of more than US$9 billion over the last 10 years. Windows is probably too big to fail, but if Microsoft doesn’t sort out experiential problems with Windows, especially Windows mobile it may well crash and burn in 2014.
1 BLACKBERRY
The BlackBerry story is the most tragic of corporate tales. Originally Research in Motion, the company was renamed in 2014 but that hasn’t helped the company arrest rapidly declining sales and revenues.
At its peak, BlackBerry was the third biggest handset maker, thanks mainly to its BlackBerry messenger that allowed users to send messages to each other for free.
BlackBerry was once the 3rd biggest manufacturer of mobile devices. Will it make it to 2015?
For a while a BlackBerry was a major status symbol in Asia, especially for aspiring teens. But that all changed with Whatsapp and other free services and since then, BlackBerry has lost ground to Apple, Samsung, LG and other mostly Asian smartphone makers who are more nimble and aware of changing consumer needs.
New models and a revamped operating system were launched in 2013 but they failed to have much impact and in 3Q2013 BlackBerry revenue was down 56% over the same period in 2012.
Towards the end of 2013 over 4,500 staff or 40% of the workforce were made redundant and the firm is desperately trying to reduce expenses by a further 50%.
The one bright light is the BlackBerry Enterprise Server (BES 10) that has seen a rise in installations in 2013. Revenue from this ‘service’ business makes up half of the company’s income. If anything happens to BES 10 the firm will go under.
Why these 5 brands? I used a simple methodology to determine which brands are likely to fail. The key elements of the methodology are:
1. Reported sales figures
2. Competitor reported sales figures
3. Anecdotal reports of physical experiences with the brands
4. Professional view of the brand’s communications over a 12 month period
5. Manual tracking of Social media discussions by their existing or lost customers over a 2 month period
Let’s hope I got it completely wrong and these great brands are still around in January 2015.
Plenty of marketing people will tell you they are expected to perform miracles to keep ahead of the competition.
WestJet, a Canadian based carrier proved it can be done!
The airline set up ‘Santa chat boxes’ that looked like gifts at Hamilton and Toronto airports in Canada. The boxes featured a chatty Santa who asked kids and parents what they wanted for Christmas. Little did they know that the information was relayed to the WestJet office at their destination where a team of 150 WestJetters went out and bought the actual gift.
They were then sent back to the office where they were wrapped and put on the carousel as the passengers waited for their luggage. Just as the presents arrived Santa walked out and started interacting with the stunned but very happy passengers. Have a look at this wonderful video:
The video has got over 11 million views in 3 days. Hundreds of column inches and been featured in numerous news programs around the world. Total cost? Maybe US$100,000.
My inbox is overflowing with ‘invitations’ to attend numerous conventions, exhibitions, masterclasses, seminars and so on. I don’t know where these guys get my email address but I must be on every mailing list from Malaysia to Mexico.
I’ve trained my junk mail filter to send most of them to the trash without me having to do it manually but somehow, quite a few still get through. One company is particularly good at getting around my filter and I find myself actually reading the subject line or even some of the copy, especially when I can’t find anything with which to self harm which is what I would prefer to do.
Normally I just swear at the sender, make a note of the company name and promise myself that I will never, ever attend one of their events and then just trash the email. But I thought I’d share this one with you so that if you are in the event or seminar business, you might learn something.
Here is a section of their most recent email
Not quite relevant to brand consultants
Of course her earlier email was included so I’m going to share part of it with you
Who is responsible for boilers? Are you serious?
You can draw your own conclusions from this farcical attempt to get the head of boiler operations at a brand consultancy to attend a seminar, the benefits of which are according to the email, “boiler efficiency, improved water strategy and analysis, better understanding of modern boiler burner operations as well as easier identification of its failures, by reducing cost and increasing safety and finally better understanding of legal requirements of Dosh”
Tosh more like. If you must use email campaigns to try and drum up business, here are 5 top tips for an email campaign:
1) Give recipients an opt out from your list. This email doesn’t even allow me to unsubscribe, which may well be illegal.
2) Segment your list or risk destroying your brand. You’ve collected information, use it properly. Failure to do so may see you embarrassed on a blog.
3) Make your subject line creative, short and sweet.
4) Less is more. Trust me, the more emails I get, the more determined I am not to attend any of the seminars listed.
5) Track your customer activities. If they don’t respond to any emails, get in contact and find out why.
There you are, despite annoying me I’ve given you some sound and free advice. I shall be sending this post to Anna. Feel free to send it to anyone who keeps sending you irrelevant emails.
This article asks a really pertinent question related to branding today – Should influencers be paid? The answer is an unequivocal yes however you need to be able to deliver on the promises you make otherwise such a tactic will come back and bite you.
As content marketing has risen, so has the value in attracting and securing the attention of brand influencers in your market. These people can often hold considerable sway in their particular niche, and as a neutral and impartial voice can be particularly…
Proton Edar CEO Hisham Othman stated recently that the company “Would pay greater attention to product quality and customer service”.
That’s a suitably vague statement that can be open to multiple interpretations and I’ll be commenting on it in greater detail soon. In the meantime, here is a useful graphic from Teletech that should help Proton accelerate the project.
Proton must accelerate its customer service programme
I don’t like to kick a man (or an airline) when he’s (or it’s) down, and despite a couple of good quarters, Malaysia Airlines (MAS) is certainly down.
The good quarters (following six straight quarters of losses) are a result of increased revenues thanks to better load factors and higher RASK (Revenue per available seat kilometer).
Just to recap, to avoid bankruptcy, MAS embarked on a massive restructuring plan towards the end of 2011 that included cutting unprofitable routes and reducing costs with the goal being to return to full year profitability in 2013.
Although the airline has done quite well, that’s unlikely to happen even though it is focusing on Asia and has stopped flying to costly destinations such as Buenos Aires, Johannesburg, Cape Town and oddly, Dubai. Giving up Dubai and Dammam suggests the carrier is surrendering to the aggressive carriers from the Middle East.
The most recent business strategy announced two key strategic elements – one to focus on the premium sector and the other to focus on the competitive Asian market. The announcement that the airline would go after the premium sector came at the same time as the partnership deal with AirAsia that has now been scrapped.
I’ve seen nothing to suggest the airline is courting premium customers and although it is good to see the airline understands the importance of segmentation, I doubt their ability to execute such a strategy.
Especially as the airline seems to be going the same old predictable route of using an advertising campaign featuring an irritating tagline (more on that later) to magically increase demand. And I’ve seen nothing else to suggest the airline is doing anything other than the usual advertising, print and PR tactics with a nod to social media.
And what an advertising campaign it is! I think this is the TV commercial.
I’m sorry but this has to be the worst commercial or video I’ve ever seen. It features people of various ages walking, cycling, swimming, jogging, directing traffic (I’m serious), reading newspapers, skateboarding, going to a meeting, graduating, bowling, clubbing and all with one thing in common – they are all carrying at least one suitcase! Yes, even the traffic policeman!! This really is rock bottom.
The print advertisement (which I’ve also seen on a billboard) features two men sitting on a wooden dock. They are both holding suitcases and the younger man has his arm around the older man and is looking into his eyes.
Sitting on the dock of the bay, suitcase in my hand
Does this image make anyone else uncomfortable? Here’s a close up to help you decide.
Does this make you uneasy?
MAS also has a corporate video that starts off with a series of stock scenes featuring babies taking their first steps, dad playing with son, climbers etc and then cuts to old shots of MAS in the early days. Meanwhile the voice over tells us that life is made up of countless journeys. Getit?.
Then we get shots of computer generated imagery of the various planes used by the airline from past to present (didn’t BA do something similar?) before going back to the people shots – nice, smiling, friendly air hostess with kid – cut to boys jumping into lake – then back to nice, smiling people, tender, caring hostess and then, out of the blue we’re told the strangers we meet on our journeys give us courage – cut to skydivers – then back to lovers on beach, cultural harmony, pregnant couple and so on. I stopped at this point, unable to continue. Have a look instead.
One of the videos (I can’t remember which one and I have no intention of watching them again) features the Malaysia Airlines app that I really like but isn’t integrated with the website (or if it is I can’t figure out how to find my bookings made online on the app).
So if MAS is serious about increasing market share, what should the company do? Here are 5 things they need to start doing today.
1) Forget about the big idea. Focus instead on consistent, onging, personalised engagement with each of your very diverse audiences.
2) You probably have one of the most comprehensive databases in South East Asia. Start to use it properly.
3) Focus. These ‘one-size-fits-all’ advertising campaigns are an expensive exercise in naïve futility. Put an end to them now.
4) Don’t do social, be social.
5) Integrate all your solutions to make it easier for consumers to use them. Otherwise they defeat the object of developing them in the first place!
I’ve been flying MAS for over 20 years and I think it is a great product but it needs work. A lot of work. This traditional approach to brand building is not going to help steer the airline to full year profitability. They’d be better off throwing the money down a black hole.
brandconsultantasia.com 