Malaysia – Page 9

Is this where my love affair with the BMW brand ends?

Published on 19/01/201520/01/2015 by brandconsultantasia10 Comments

Dear BMW

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.

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.

Marcus Osborne – Kuala Lumpur. January 2015

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.

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.

Slashing prices has not helped rebuild the MAS brand

Published on 19/11/2014 by brandconsultantasiaLeave a comment

Since the twin disasters of MH370 and MH17, Malaysia Airlines has slashed prices on just about all its fares, offered travel agents in Australia Rolex watches and free flights to promote the carrier and attempted to discount its way out of trouble. And it has tried to do this with a series of ill conceived and poorly executed ads and PR campaigns that I wrote about here.

At the same time, it continues to ignore those passengers who have supported the airline during this difficult period.

MAS has also sent out the same poorly thought out post flight survey to passengers that asks questions that can offer little actionable data to be used to save the iconic brand. An example of the survey is this question below:

Good to know but how useful is the data?

As an example, question A is about value for money. If a passenger has paid RM50 for a RM400 ticket then he will probably consider the flight to be good value for money. But if he has paid RM400 for the ticket and the person next to him has paid RM50, he probably won’t consider it good value for money. So how can MAS use the results?

I also wrote here that MAS should not be slashing prices because it was not going to work and once you’ve slashed prices, it is very hard to increase them.

Many people disagreed with me. Commenting on the article, Bob said, “At this time, the last thing they need is branding. They need to fill up seats for revenue so I don’t see any issues with the ads to be honest.”

I disagreed and said instead that MAS should focus on rebuilding its brand and offer more value rather than slash prices. Well if rumours from Reuters are to be believed, MAS is about to announce that the 3rd quarter 2014 was its worst quarter since it began operations 70 odd years ago. Reuters reports that despite the promotions and cheap flights, passenger numbers and yields were the loweest ever.

I’ll say it again, slashing prices does not work. This is what MAS needs to do NOW to save the brand. It’s time to stop reacting and start planning.

Hotlink advertising needs to be better than this

Published on 23/09/2014 by brandconsultantasiaLeave a comment

A friend just sent me the link to this ad.

I am sad, confused and bewildered. I mean what is this ad about? What is it for? What is the relevance of a coughing durian or a cat with big eyes and cat emoticons? Wait a minute, there’s a dinosaur in the background wearing a face mask. Is it about respiratory conditions?

The answer is no, it’s for a telco offering free social chat all day or at least I think it is because the closing tagline is ‘Keep the Ohhsome Internet always on’ which suggests to me that the Internet isn’t always on which in fact it is unless perhaps you are a Hotlink subscriber or used to be but now you are not because you don’t want to be associated with such a brand or perhaps Hotlink subscribers couldn’t use Viber, What’s app and all the other free tools for, well free.

Oh I don’t know but the 90 seconds I spent watching it three times to see if I had missed something (I hadn’t) are gone forever.

Has the Malaysia Airlines marketing department lost the plot?

Published on 03/09/201403/09/2014 by brandconsultantasia23 Comments

I was shocked to see this ad appear on my Facebook page this morning.

Poorly conceived ads like this are terribly insensitive

Is anyone in control of marketing at Malaysia Airlines at the moment or has the transition to the new company already started? At the same time as the world’s media is showing terribly sad but dignified video and images of the crew of MH17 returning to Malaysia in flag draped coffins, the airline’s marketing department launches an advertising campaign with a grammatically incorrect tagline telling us flying with Malaysia Airlines is fun.

Are they mad? Does the marketing team really think they can convince us that the experience of flying MAS is going to be fun? Should they be trying to do that? Do they think they can change global perceptions of MAS with a grammatically incorrect tagline? Actually they are not trying to change perceptions, they are trying to change reality, with ads! Not only is it offensive, it is ignorant and they really should know better.

This is the second poorly conceived tactical ad MAS has released online in the last month and it smacks of desperation. There is enormous pressure on the management at MAS but they need to get their act together and start rebuilding the brand and not simply throw out poorly thought out tactical ads or what I can only assume are seen as quick fix solutions. The rebuilding of the brand will start by rebuilding trust and faith in the brand but not with this rubbish.

Hardly a compelling tagline or call to action

Last year, when JWT India created an offensive ad featuring Silvio Berlusconi in a Ford Figo with girls bound, gagged and crying in the boot of his car JWT fired the executives responsible and Ford apologized.

Tasteless Ford ad forces agency to sack executive

MAS doesn’t need to apologise but the management must reevaluate their marketing team and their ad agency needs to fire the clowns who created this nonsense.

Then the managment needs to understand that rebuilding the reputation of the brand is a strategic initiative and not a tacticial one. And the CEO needs to have his finger on the brand pulse otherwise this sort of incompetence will continue and there will be a further erosion in the brand’s reputation.

Slashing prices will not rebuild trust in MAS. 6 top tactics to resuscitate the MAS brand quickly

Published on 02/09/201402/09/2014 by brandconsultantasia19 Comments

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.

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.

A real time example of what’s wrong with the Malaysia Airlines brand

Published on 27/07/201428/07/2014 by brandconsultantasia3 Comments

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.

10 things to do to save the Malaysia Airlines brand

Published on 28/05/2014 by brandconsultantasia15 Comments

If Malaysia Airlines (MAS) makes it to 2015 and beyond, 2014 will probably be remembered as an annus horribilis for the beleaguered brand. In fact it may go down as an annus horibilis for the Malaysia Nation brand but we’ll discuss that another day.

MAS weren't ready for the ferocity of the global media — MAS weren’t ready for the ferocity of the global media

Certainly the first half of 2014 has been desperate for MAS with missed revenue targets, ineffecitve advertising campaigns universally mocked by the industry, reports of alleged sabotage, police investigations, negative press about the customer experience and of course the tragic circumstances surrounding MH370 and the subsequent weak handling of the global media by the airline.

The once mighty airline, an early poster boy for national carriers is struggling on a number of fronts with two big questions 1) Can MAS survive and 2) should it be allowed to fail? being asked in coffee shops, boardrooms and even in schools.

Mass media advertising does not build brands. THe sooner MAS understands this, the better

The answer to 1) is yes, and to 2) is no.

But to survive, someone is going to have to get very, very tough because MAS is in a mess. Since 2007, MAS has made 3 cash calls to the tune of RM7 billion (US$2.1 billion) and over the last 3 years has accumulated losses of RM4.1 billion (US$1.2 billion). Whatever they are doing isn’t working.

Morale is low, bookings are down especially from normally busy and profitable routes to and from China, the unions are throwing their weight around even though the airline is terribly over staffed – you only need to go to KLIA to see so many staff sitting around doing nothing and I heard one story recently of a new person who arrived to find someone asleep (with a pillow) at his desk.

Just to get an idea of the situation, Singapore airlines (SIA) has a fleet of 104 aircraft (MAS 107), flies to 62 destinations (MAS 61), has revenue of RM36 billion (MAS RM58 billion) and is staffed by 14,000 people (MAS 20,000) and yet in 2012 made RM1.150 billion ( during the same period MAS lost RM400 million).

SIA is flying to the same amount of destinations, operating the same amount of aircraft and using at least 6,000 less employees to do it. It turns over only about 60% of what MAS turns over yet makes an impressive profit.

Or is it this? — What is the MAS brand identity? Is it this?

Os is this the MAS brand identity?

MAS needs a new strategy but cutting costs is not the way forward. In the interests of nation building and to ensure morale and belief in Malaysia doesn’t plummet further and to turn MAS around quickly, the firm needs to carry out a number of key initiatives immediately starting with

1) All suppliers have to accept that their existing agreements must be cancelled and be given the opportunity to submit new proposals that are acceptable to the airline. If they cannot agree terms, new tenders must be issued.
2) Moving forward, all procurement activities must be done transparently.
3) The unions have to understand that 5,000 staff must go. The government must underwrite any redundancy packages for 12 months to encourage staff to leave and reskill these staff to ensure they find work immediately.
4) Training of staff, especially front line staff has to be ramped up because these people are key to the success of the brand and at the moment their customer engagement skills are simply not good enough. But training providers must be recruited transparently.
5) MAS must review it’s sales policies, processes and systems. Right now they are not leveraging effectively on key opportunities such as the Enrich database.
6) MAS marketing and advertising is stuck in a time warp of mass media mediocrity. It needs to stop wasting huge amounts of money (I was told RM400 million in 2013) on irrelevant advertising campaigns and review it’s marketing approach now.

You can’t build a brand using mass media so stop trying to do so

7) MAS must understand that customers build brands not advertising departments. The new strategy must focus on the customer and delivering economic, experiential and emotional value to its customer segments and on their terms.
8) MAS appears to have 3 brand identities at the moment. It’s a mess and needs to be revamped quickly and there has never been a better time to do it as the MAS brand identity is tired and old and associated with MH370.
9) Successful airline brands today are innovative, creative, nimble and move fast. I remember being in discussions about updating the uniform in 2003. 11 years later it is essentially the same.
10) Years ago MAS aggressively marketed it’s Enrich programme and encouraged anyone to sign up. But the programme is antiquated and a mess. Children get offers to sign up for credit cards, there is limited segmentation and personalisation and opportunities to reward and leverage brand loyalists and identify and nurture influencers are missed.

Used properly, the MAS FFP is a potential revenue gold mine

There is an obsession at the moment that cutting costs is the way to make MAS profitable. It is the wrong approach. However by understanding the importance of branding and spending money on the right brand strategy and integrating that brand strategy with the corporate restructuring plan, significant savings can be made and crucially, those savings (obviously) save the company money but will also generate more income by negating the competition, increasing share of wallet and allowing MAS to increase not decrease ticket prices.

Another example of how consumers are building destination brands

Published on 08/04/201408/04/2014 by brandconsultantasia1 Comment

This interactive ‘heat map’ shows which tourist attraction at every destination around the world is photographed the most.

There are as many as 1,000 photographs in some countries with New York’s Guggenheim Museum the most photographed landmark in the world.

The most phtographed landmark in the world

In Singapore the Merlion is the most photographed landmark whilst in Kuala Lumpur it is, rather unsurprisingly the Twin Towers. In Bangkok it’s the Wat Sraket Rajavaravihara and in Kuching it is the Sarawak river.

The Merlion, popular with tourists in Singapore

What does this site mean to the business of destination branding? Well primarily it will drive traffic away from tourism board sites and their carefully choreographed images to consumer sites and there peer to peer content.

Those destinations that continue to focus their funds on corporate driven strategies or groups of tactics instead of encouraging engagement across social sites and consumer generated content will lose business which in turn will lead to reduced revenue for the many businesses that benefit from tourism.