Recovery branding for Tourism in Malaysia. A Q&A with Marcus Osborne


I was invited to participate in a conversation on Recovery Branding for Tourism. You can watch the video here.

I think the video is worth watching, but if you don’t have time, I’ve added my responses to the questions below

Introductions

On the personal front I’m Marcus Osborne. I’ve lived in Malaysia since 1994, I’m married to a Sarawakian and have 3 kids all born in Kuching and they all are very proud of their heritage.

On the professional front, I co-founded Fusionbrand in 2003 after a career in marketing & sales in Europe the Middle East and SE Asia.

We founded Fusionbrand because we saw how the branding landscape was changing and that although branding was becoming more complex and necessary, most firms thought it was related to positioning, taglines, logos etc.

Then and even now, most firms see branding or rebranding as a cosmetic tactical exercise like changing a logo, developing a tagline or creating a new advertising campaign. We also noticed that a lot of businesses were stuck more in a trading mentality and didn’t invest enough in the brand experience or technology to assist them with brand building.

We determined that with an economy growing at up to 9% a year, this didn’t matter but we realized that as growth slowed and the world was getting smaller, more dynamic, more competitive, that cost was no longer a good enough differentiator and that building brands around delivering value would not only block local and international competition but also lower operating costs and increase profits.

So we established Fusionbrand and built the business around two primary pillars

  1. THE BRAND
  2. BRANDING

The Brand

A brand is the visual, historical, topography, environmental and cultural assets of the business or destination. It’s important you base these not on what you want the destination to be but on the reality of what it has to offer. For destination brands today, authenticity is key so it’s about leveraging the natural assets into something that’s of interest to key segments.

This becomes the destination’s DNA and it must have at its heart the goal of consistently delivering memorable experiences to consumers at every stage of their journey from the initial research to becoming part of the consideration set and then to become the chosen destination, through the visit and afterwards as well.

It’s really important therefore to have the buy in of all stakeholders, especially the front liners who often benefit the most. If stakeholders aren’t on board, it doesn’t work. This is often the hardest part, especially when, if they won’t adjust, then they have to be excluded.

Branding

Branding is about how we bring the brand to life, throughout the customer journey. Both through the narrative we create around the destination and its assets and how we encourage others to participate in the development of that narrative.

The narrative can take many forms and be communicated through multi channels but the DNA has to be consistent in terms of how the brand is represented. This consistency is more important than how creatively it is presented.

Most campaign driven marketing projects are a straight line whereas smart branding uses technology to connect with the consumer from the outset using a variety of tools and build a relationship that includes staying connected with them long after their first visit.

To be successful, you need to have a solid brand in place before you attempt branding. There’s no guarantee of success but technology allows us to measure the effectiveness of everything we do.

And you need a fair amount of luck as well.

The benefits of branding are significant – lower acquisition costs, better reputation, improved visitor numbers, higher repeat visits or purchases, increased investment and more.

Fail to do it and at best you get left behind which is why most Malaysian states aren’t attracting visitors, even those with outstanding natural assets.

At worst you spend millions every year trying to develop a creative campaign that will stand out in a crowded market place dominated by destinations with far deeper pockets.

And of course if something like a pandemic or other disaster happens, everything you’ve spent on traditional media is essentially wasted.

  1. From your perspective, could you give us the overview of the current situation in our Tourism Industry?

The industry has been hit hard, really hard. Look at hospitality, even before the MCO, in the first 3 months of the year 170,000 hotel bookings were cancelled.

The hotel industry alone is reported to have lost RM3.5 billion in the first 6 months of the year. That’s unsustainable. All related industries have been impacted and it’s not over yet.

But you only need to look at the social media pages of the minister to see she is working tirelessly to stimulate domestic tourism & its working because there has been a fair amount of revenge tourism since the MCO was partially lifted although that has been a double edged sword because a lot of destinations and hotels weren’t ready for the surge in visitors.

Moving forward, what I’d like to see is a more strategic approach to stimulating domestic tourism. There needs to be a plan outlining initiatives as well as new incentives from the government to stimulate demand and regular briefings from the communications team at MOTAC on what is being done and its impact.

From Sarawak’s perspective, I can see that STB is trying hard to stimulate domestic demand & I like how quickly the Sia Sitok programme was developed although if I’m not mistaken, its only available for those living in Sarawak. If this is still the case, I suggest it is extended to West Malaysians.

At the same time STB seems to be moving away from mass advertising to developing branded content. This long term focus will help the state rebound quicker once the pandemic is over as potential visitors will be increasingly familiar with the state.

Because the way destinations are researched these days means experience related content is critical as it drives visitors to a website or blog which allows a tourism board to start the relationship building process through the use of email marketing and other tools. It also allows tourism boards to develop revenue streams by using affiliate marketing.

There’s a real possibility that as governments look for ways to reduce costs, pay for COVID economic stimulus packages or decide agencies now have to generate their own revenue streams, technology will help tourism boards achieve this.

Used correctly, technology allows tourism boards to have more control over their messaging. When visitors to a website or blog don’t sign up for newsletters or leave contact information they can still be reached with retargeting, allowing the destination to stay relevant for longer.

I also think the private sector needs to understand that it’s not just the job of the government to drive visitors to Malaysia, the private sector needs to contribute as well. This is going to require a mindset change.

            2. What are the prevalent branding practices during this pandemic (tourism or other industries) and what do you think of them?

On a Sarawak level, there seems to be a pivot away from international markets to domestic ones. This is necessary but I think content creation related to experiences needs to be ramped up. And improvements can be made to how social media is used.

On a national level there doesn’t seem to be much marketing with the exception of Desaru that is advertising a lot online but the website is buggy and doesn’t provide enough information or seamless opportunities to purchase products. Desaru could learn from the One and Only marketing experience.

From what I can see, just about every other state seems to have gone into its shell. This is sad because destinations can use the pandemic to forge long term bonds with domestic tourists now that could last for years, even generations.

Digital is underused & under appreciated

Digital can be used to build interest in destinations, forge relationships with travellers and close deals. But it’s important to appreciate that digital is not a broadcast platform. It’s a platform for connecting with people. This requires structural change and a move away from how things have been done for the past 40 years.

Today, destination brands must be constantly connecting with audiences to get the most out of social media. There is the potential to build DTC relationships that will benefit destinations in the long run. But this means digital infrastructure has to be changed as the old rules, even before Covid no longer apply.

Industry wide structural issues

However there are other structural issues that have to be addressed as well. There are not enough ‘best in class’ products in Malaysia. My theory is too many products are created from the wrong perspective. The goal is not to create a product. The goal is to create an authentic experience that delivers economic, experiential and emotional value.

For example a homestay is not about creating a building in a kampung and calling it a homestay. A homestay is about creating an authentic experience. Everything about it should mirror the reality of the kampung. If it doesn’t it fails.

            3. What are the new norms for tourism branding?

COVID has given us an opportunity to evaluate the national and state tourism industry as well as the agencies that are responsible for the development of the industry and the marketing of Malaysia and states.

And this is timely because there’s a problem with the industry. Tourism arrivals have been flat for ten years. Unsavoury practices within the industry are destroying Malaysia’s brand equity and need to be addressed because they won’t go away. Now is the time to take a long hard look at who manages the industry, how it is managed and where it is going because things must change.

A road map for investment needs to be developed around pillars that will drive the industry forward for the next 20 years. I think one pillar that should be explored thoroughly is tourism investment zones.

Until there’s a vaccine, it’s going to take a long time for international travel to pick up. Corridors will be the first step and marketing teams will have to adapt. We’re already hearing about a corridor between Perth and Langkawi. That’s a great development but it’s a small step.

With the right approach, we could see charter flights into Sarawak from certain locations but we need the products to attract visitors from those sources. This requires a pivot away from what we’ve done for the past 20 years.

Transparency is a critical success factor

Transparency is going to be really important. Who knows what the psychological impact of covid is going to be but we can sure that with all the uncertainty around the pandemic and the poor handling of the fallout by many important sources of visitors to Malaysia like the UK, transparancy will play a big part in generating traveller confidence in a destination.

Other new normal branding initiatives will be the use of visitor tracing apps in the supply of information. Leverage on the excellent work done by the Ministry of Health by providing information on health and safety in marketing collaterals and define protocols while providing easy access to real time information.

Those travellers who are exploring medium and long haul trips will look for ease of access to COVID related information around a destination. And they’ll cross reference it against what they can find online. Those that are transparent and open.

So destinations that use a multi channel approach to their branding and provide real time COVID updates, provide hot lines for visitors, seamless advice on what to do if there is a surge in numbers etc on a regular basis will build trust and give potential travellers the information they need to make travel plans. And once travel begins, make sure it’s a touchless travel experience to further build confidence.

These are new norms and confidence is key. Building confidence takes time. Now is the time to start.

On a tactical level, I think we’ve seen the end of the hotel buffet which is probably a good thing!

            4. What essential element(s) should industry players be aware of when strategising their recovery branding?

Well the pandemic should go away but it won’t be an on/off lightbulb moment. It’s more likely to fade away, so there’s time to get ready. If they haven’t done so already, industry players should be doing or do the following:

  1. Review your operations, especially marketing departments and how they operate
  2. Review existing products & determine whether they are fit for purpose for a post Covid environment
  3. Build a strategy around what you have, not what you or stakeholders want to have
  4. Use down time to reskill your teams around delivering memorable experiences at every stage of the customer journey both online and off
  5. Look to renovate, invest in new materials, equipment etc. The industry will come out of this and when it does, the competition will be intense
  6. Create a brand plan. If you don’t have a plan everything you do is guesswork. Fusionbrand, a destination brand consultancy has noticed that firms with a brand strategy that incorporates a crisis plan are dealing with the COVID environment better than those who don’t have a plan
  7. Government & the private sector must move away from mass media marketing to creating content that builds organic narratives and collect data
  8. Data will be key. The post COVID travel environment will be different, so invest in data collection tools and use data to build direct relationships with target markets. Especially important for those destinations or products that don’t have the massive marketing budgets of competitors
  9. Reduce the number of stakeholders in the industry
  10. Industry players should be objective in their decision making. Collaboration between stakeholders is important to get out of this. This is not the time for stubbornness!
  11. Explore tourism investment zones, ideal for places like Sematan in Sarawak for instance
  12. Stay fluid. Community managers will play a big role as they keep followers involved and informed on developments in the relevant destination
  13. The fastest way to restore traveller confidence is by being accessible and transparent. Put protocols in place now to deal with a surge in social enquiries

         5. New norm vs conventional ways. Do you think industry players would return to the conventional ways of doing things once this situation died down?

I hope not! We’ve been doing it wrong for some time. Which is why visitor numbers to Malaysia have remained around 25 million for the last 10 years.

The majority of people who visit, love Malaysia but products are not good enough to encourage return trips. There are exceptions but overall the quality and variety is simply not there. And many of the products are not marketed properly.

Moreover, regional competitors are constantly creating new offerings while Malaysia’s tend to stay the same. Plus the management of many of Malaysia’s tourism products leaves a lot to be desired.

Moving forward, there are not enough new products coming onto the market. This needs to change. Let’s hope it isn’t ignored once things get back to normal.

And there needs to be more synergy between TM & state tourism boards. Local destinations don’t market themselves aggressively enough.

And moving forward, I want to see the private sector investing more in the industry. If this requires policy change then so be it.

            6. How can branding for a destination like Sarawak be done effectively now during the pandemic and after it has blown over?

It’s important to appreciate that branding is a strategic initiative. So although COVID has taken a toll on every destination, there should still be a road map in place to drive the industry forward and build the destination’s reputation. Much of that will remain although if the marketing focus was on mass media, that needs to change.

Tactically, getting West Malaysians to visit is the right approach for both the long term and the short term but it’s going to take time and they need to be nudged repeatedly before it’ll start happening.

But Sarawak can’t ignore international markets. I understand a new tourism master plan is being developed and this is good news for the industry. It’ll have to be ruthless as currently there are too many stakeholders in Sarawak so this master plan should streamline this and it needs to move away from the campaign approach of small tactical initiatives to a long term strategy.

And that strategy must be built around a clear brand proposition that is authentic and they must use this to unlock growth around 3 pillars, products, content & relationships. Those products should be built around 5 – 10 niche sectors, invest in them to ensure they are best in class.

Substantial investments need to be made in the tourism infrastructure. New products created for the right target markets.

Sarawak has a lot of potential but not as a shopping/mainland Chinese mass tourism destination. There will be business from China but not volume business. It’ll never be a mass market destination for anyone & shouldn’t try to be.

Sarawak will never have the accessibility that other destinations have but that shouldn’t stop Sarawak from becoming a globally respected destination. Something it could be in 5 – 10 years.

More importantly, the tourism master plan must propose a task force is created to implement the master plan because too many plans have been created only to gather dust on a shelf.

If mass marketing is necessary to build a brand, why did Barisan Nasional lose the 2018 general election?


A Q&A with Marcus Osborne, our CEO & author of ‘Stop Advertising, Start Branding

Q. THE BARISAN NASIONAL INVESTED HEAVILY IN TRADITIONAL COMMUNICATIONS BEFORE & DURING THE ELECTION CAMPAIGN. WAS THAT THE RIGHT WAY FOR TODAY’S BRANDING ENVIRONMENT?

A: As the dust settles on the extraordinary 14th General Election, the well known brand guru who allegedly ran the Barisan Nasional (BN) advertising campaign, the advertising agency involved and a number of other communications executives must be scratching their collective heads at what went wrong.

No one knows for sure how much Barisan Nasional spent on marketing in the lead up to the 14th General Election. I’ve heard RM20 million to RM2 billion with the reality probably somewhere in between. I did hear from a reliable source that RM20 million was spent online which is a lot of money for a short campaign period.

The launch of the BN election portal was another attempt to paper over the cracks

We’ll probably never know because there aren’t really any fund disclosure laws in Malaysia but we do know GLCs were asked to and did contribute.

So with so much money, a high profile brand guru, global advertising agency resources and total control of the mass media, what went wrong?

I will try and answer that question by putting it into some sort of historical marketing context.

The years from 1950 – 1995 can be characterized as the mass marketing economy. It was the golden age of advertising and the early days of branding.

During this period political parties could define, or “position,” themselves and use the mass media to reach and influence mass markets of relatively ‘docile’ citizens.

Don’t forget, up until the mid 1980s, Malaysia only had 2 TV channels and only one of them showed commercials. There wasn’t much to do after a hard day of work and so most citizens were watching those 2 channels. And both of these channels were owned and controlled by the government.

Limited satellite TV came to Malaysia in 1995 but there were no more than 5 channels. Reaching as many consumers as possible was still achieved through mass marketing tools such as TV, radio, billboards, newspaper advertising and the Bas Mini – provided you weren’t too worried about brand association!

How the media environment in Malaysia has changed

Over the next 20 years things got exciting as media evolved quickly and today we have more than 300 TV options. Throughout this communications revolution, Barisan Nasional used mass media to push its messages to the public. And as history shows, it was very successful.

Then came the Internet and Malaysians took to this new platform very quickly. But the real turning point was social media. Social media radically changed the way brands communicate with citizens.

But crucially, from a political perspective, for the first time Malaysians had a platform that wasn’t government owned and that they trusted enough to use to voice out their concerns and frustrations about how the country was being administered.

Q. BUT DIDN’T BN USE SOCIAL MEDIA EXTENSIVELY?

A: Yes they did. But Barisan Nasional seemed to be under the impression it could simply move it’s broadcast message online and continue using this new media in the same way as they used the mass media they controlled.

In the lead up to GE14 BN went on Twitter in an aggressive, controlled approach using infographics, memes, images justifying government policies and lambasting the opposition’s promises.

The Digital Forensic Research (DFR) Lab of the Washington-based Atlantic Council think tank was quoted by Reuters as saying, “over 17,000 bots tweeted content related to the Malaysian election” immediately after the election date was confirmed.

According to the DFR lab, anti Pakatan tweets with the hashtags ‘#SayNoToPH’ and ‘#KalahkanPakatan “were used around 44,100 times by 17,600 users from 12th – 20th April 2018 and 98% percent of the users appear to be bots.”

Soon after, Twitter suspended 500 accounts posting spam or malicious content about the election. Salleh Said Keruak was contacted by the media but he did not respond to text or calls asking for comments, despite his official position as the communications minister.

The BN PIC for communications was very uncommunicative during GE14

Other social media images included well attended ceramah and of course ‘random’ individuals carrying “I love PM” signs and waving UMNO flags. While it made sense for BN to be on Twitter because the site is the most active platform for political debate in the country, and at times the approach was well structured but it didn’t understand the basic rules of voter engagement.

Consumers behave differently on social media. They are part of communities populated by people just like them who were just as unhappy as them. BN thought they could beat them into submission the way they had in the mass media environment.

Q. SO YOU ARE SAYING THEY USED SOCIAL MEDIA BUT THEY DIDN’T USE IT PROPERLY?

A: Exactly. Malaysians are not confrontational but push them into a corner and they come out fighting. Social Media provided that corner. This required a new, more collaborative approach to engagement but Barisan Nasional carpet bombed social media the same way it had carpet bombed traditional media for more than 60 years.

Barisan Nasional put a huge amount of resources into mass media techniques that were successful when the mass media yielded power over passive audiences willing to accept the word of the politician as final. However, Malaysians proved that mass media tactics don’t work on social media and they are no longer passive when it comes to politics.

Q. BUT CERAMAHS AND OTHER EVENTS WERE WELL ATTENDED. DOESN’T THAT SUGGEST THEY WERE POPULAR?

A: I think we all know that a well attended Ceramah or BN events doesn’t necessarily equate to popularity. Sure voters attended the events and listened politely to political messages at Ceramah while nodding appropriately. And of course candidate visits to constituencies were on the whole, well attended but they always are, especially when there is free food.

As matters became desperate towards the end of the campaign period, many of these visits came with blatant cash handouts, some of which were filmed on smartphones and shared across social media and whatsapp groups.

In the past these cash handouts were often enough to sway those on the fence but this time citizens sought third party verification on social media before making decisions or forming opinions.

And that verification came from people like them. Whether that be in Facebook communities of like minded individuals, in the comments section of articles about election related issues or in whatsapp groups.

For the first time ever, voters were informed and opinionated and social media was awash with people like them. It was like a wave the country has never witnessed.

Barisan Nasional was oblivious to these developments partly because their controlled media online such as The NST, Berita Harian and The Star were pushing out the government message but didn’t allow comments from readers at the end of the articles.

It showed a huge lack of appreciation for how the landscape was changing. But also meant the ruling party was unable to gauge less partisan feelings and address issues important to voters.

Barisan Nasional was basically stuck in 1985. It believed that all it had to do was create a party driven message and position that message in the minds of citizens.

Q. SO YOU ARE SAYING BARISAN NATIONAL SPENT FAR TOO MUCH ON ADVERTISING?

A: Far too many creative companies are given responsibility for building brands. And a recent ‘brand consultant of the year’ award went to an advertising agency! That’s like a car winning ‘motorbike of the year’! It’s confusing for everyone.

Branding today is much more than cool ads, cool logos, cool design, a great tagline all communicated using beautiful advertising. And this election proved that beyond a doubt.

Barisan Nasional put a lot of emphasis on logos during its time and for GE14 created the tagline “Utamakan Yang Perlu, Hebatkan Negaraku” which was soon shortened to the Trumpesque “Make My Country Great”.

Paper over the cracks of what are the real issues with Trumpesque taglines

It was extremely naive of the BN President or those advising him, to believe that an artificially contrived message, created without consultation of major stakeholders and retrofitted around an elitist party was going to make Barisan Nasional instantly acceptable, recognizable, trusted and voted for.

Some in the industry have questioned the advertising campaigns that focused on the achievements of the BN government and yet more often that not, featured a larger than life image of the Prime Minister.

The campaign was almost presidential yet didn’t seem to talk to anyone particular. For all the discussions about the impact of the youth in this election campaign, the reality is they aren’t going to vote for someone who, as one 22 year old told me, “looks like a friend of my dad’s.”

One industry veteran said the campaign looked really attractive and professional, but he didn’t know who they were talking to. It looked to him like the ads were created to please the Prime Minister.

Another industry professional thought that the campaign was, “run like an Obama campaign but in the style of Clinton with its heavy dependence on contrived messaging and negative comments about the opposition.

Q: SO BARISAN NASIONAL DIDN’T UNDERSTAND WHAT IT TAKES TO BUILD A POLITICAL BRAND?

A: Branding today requires a product that is fit for purpose. Internally, everyone within the organization must be ‘on brand’ so that they are all pulling in the same direction.

BN should have known through a brand audit what were the issues that were affecting the voters and how to address them. I think some research was carried out and there were also suggestions that the disgraced political consulting company Cambridge Analytica was involved.

But when research is managed internally or with those close to the ‘CEO’, the results may be influenced by the short term goals of those involved.

And of course participants don’t always provide truthful information if they don’t trust the source of the questions or what the data will be used for. And just to ram home this point about the flaws in internally carried out research, if the findings are not good, there is a temptation to sugar coat the results or present them in a less than legitimate manner.

BN’s messages had all the hallmarks of the contrived, ‘they’ll listen to what we want them to hear’ approach to branding. They spoke to everyone while saying nothing to anyone. There was a real lack of empathy for the audience.

When asked about the economy, 1MDB, GST, education in other words, the issues important to voters, they kept quiet or gave stock, pre prepared responses.

Arul Kanda was sent out to talk a lot without saying anything with his one man monologues on 1MDB but he changed nothing. BN could not gather feedback through neutral or semi neutral channels because it had closed them all off. And views of citizens through comments in Malaysiakini were dismissed as the ramblings of a few opposition planted extremists.

But citizens are not stupid and the majority of people saw straight through much of what BN was saying. BN has a track record of over promising, especially at election time, and under delivering afterwards. Many others were caught blatantly lying and in this day and age people will not put their trust in liars to run the country.

Q: SO DO YOU THINK BARISAN NASIONAL HAD A STRATEGY?

A: Barisan obviously had a narrative determined in advance. But instead of being based around issues that matter to the voters and tested first, it was very much based around how wonderful is the president and what they have done for the country.

As former Trade and Industry Minister Rafidah Aziz said, “the old objective was to “present a picture much rosier than it really is”. However, what was needed now are transparency, responsibility and honesty.”

Rafidah Aziz couldn’t believe it was the same old same old

That may be stating the obvious but as was patently clear during the campaigning period, BN was only ready to present a picture it wanted to present around it’s own narrative. BN only had a push plan and no pull plan. It seemed there was no real interest to address the many elephants in the room.

It was as if BN thought it could buy voters whereas they should have been trying to win their trust. And when it got really difficult, and BN was losing ground to the opposition there was no Plan B and instead, BN fell back on paying out cash, the demonization of the Chinese, the age of the opposition leader and numerous other petty, often personal matters to try and boost support.

BN made mistake after mistake. Initiatives such as weaponising Sungai Besar Umno chief Jamal Yunos and demonizing the DAP were perceived as negative and backfired.

The Barisan Nasional leadership, on the whole a wealthy elite, many of whom ‘inherited’ their positions and have never even worked in the private sector, were completely out of touch with their core voters.

Jamal Yunos – Who let the dogs out?

If you spoke to any hard core UMNO members in the 6 months before the election, many of them were edging towards the fence because they were losing confidence in the leadership and it was easy to see the disparity between what BN said and what they did.

In the election campaign, some of the senior Barisan Nasional representatives would turn up for a Ceramah, spend 10 minutes screaming at the audience and then leave. This drove a bigger wedge between them and the people.

And throughout the whole campaign, there seemed to be nothing holding all these tactics together, except a old fashioned approach of presenting a fake picture of success.

Q: SO WHAT SHOULD BARISAN NASIONAL HAVE DONE TO BUILD ITS BRAND?

A: Political branding today is about six key attributes – warmth & humility, integrity & transparency and competence & accessibility. None of those attributes can be communicated with logos, advertising, taglines etc.

These attributes require engagement and interactions, the building of trust through legitimacy and a real, human side that can’t be faked. It might be flawed, that’s fine but it can’t be faked. BN was a million miles away from these attributes.

The opposition party, a fragile coalition of fragmented parties under the Pakatan Harapan banner and led by a 92 year old man, was prohibited from using a common logo and constantly under threat from the authorities.

An honest, genuine product cannot be beaten, no matter how much you spend on marketing

Their events were disrupted, election posters defaced and their supporters were even threatened. Throughout the whole campaign however, they maintained their dignity, showed an approachable naturalness, campaigned on a ticket of integrity and transparency, were always accessible and came across as competent and knowledgeable, especially in matters of fiscal importance.

Their communications resonated with small, niche segments and because of that it had it’s own organic legs. According to one source, Pakatan Harapan spent a mere RM800 on Social Media during the entire election campaign. All that content you saw and probably shared got to you organically.

Compare that with the alleged RM20 million spent online by Barisan Nasional during the campaign period. Most of which was spent on passive content such as banners or negative content against the opposition with only a small amount assigned to branded content and native advertising.

Q. WHAT LESSONS CAN BE LEARNED FROM THIS BRANDING DISASTER?

A: The main lesson has to be that political parties can no longer construct a brand around a party driven strategy and expect voters to embrace it because the party tells them to.

Trust is more important than ever. And now that voters have got a taste and better understanding of their power, they will be more inclined to use it. Underperform and you will be out of office.

The attributes above take time to be absorbed by voters. Those who you want to convince may want to be convinced but it won’t happen immediately. For people to believe what you tell them you must first connect with them on an emotional level.

And this will inevitably happen through various touch points with your brand. And remember the success of everything that you say online will be defined by what you do offline.

Governments are going to have to deliver. Ministers will have to know what they are doing, tenders will have to be open. If political parties aren’t providing the value diverse voter segments require, you aren’t going to stay in power for long.

Sure you may win some votes but you won’t get to the stage where you have a political brand that doesn’t require huge investments in marketing. You’ll always be struggling to get votes (or in this case offering more and more desperate incentives, many of them financial) and always be discounting, always wondering if today will be your last.

Another lesson that all brands can learn from this is to understand that branding is relational not transactional. It is no longer about selling one idea to as many voters as possible but instead is about building and nurturing relationships with communities of like minded individuals.

There has to be significant substance to the political party brand. And it has to be truthful with its point of view on issues. And this applies to Pakatan as well. Malaysians have flexed their muscles and seen how powerful they can be. Right now Pakatan is riding a wave of popularity but already citizens are asking questions.

Brands cannot be manufactured. They have to be real, they have to have substance and they have to be legitimate. The always on world that we live in doesn’t take kindly to liars.

The Barisan Nasional campaign was deconstructed every day in social media. For the first time in Malaysia, an election was fought not in the coffee shops of the Kampungs of the rural heartland but in the virtual coffee shops of Facebook and Twitter.

Historically, children from the kampungs went home and were influenced by their parents when it came to voting. This is no longer the case as many children living in the cities and overseas and returning home to vote, explained to their parents the extent of the apparent rot in Barisan Nasional and the hope for the future that Pakatan seemed to offer.

Moving forward, there is no question that political branding is moving through unchartered waters. Not just in Malaysia but around the world.

It’s no longer enough to just say ‘we are the best choice and if you vote for the opposition you will bring doom and gloom to you, your family and the nation.’

And we can expect to see a lot more Malaysians registering to vote as they realise they can make a difference. Millennials, with their fluctuating loyalties will become the power brokers in the next two elections.

These citizens are oblivious to the noise of the election billboard, are unlikely to see the party political broadcast on TV3 and don’t have the time, interest or concentration span for a 60 year old giving them a lecture at a Ceramah.

Q. ANY OTHER BRANDING TAKEAWAYS FROM THIS ELECTION?

A: A key branding takeaway from this election is that more substance, less communication will resonate with voters. One of the reasons Tun Dr Mahathir is so popular is because he comes from an era when politicians were seen as patriots, who were passionate about their country and made personal sacrifices for the nation.

He’s also popular because he’s a diminutive, old ‘doctor’ who is hardly threatening. And when he does bring up the opposition, he does it in a seemingly unconfrontational, more human manner, with a bit of humour.

Former Malaysian prime minister Mahathir Mohamad saves Malaysia from ruin at the hands of Najib Razak

Some of the BN representatives appeared almost bitter and aggressive when they spoke about him. And of course when a young person attacks an old person, there’s only going to be one winner. It was all very shallow and personal.

Another takeaway is that from now on, the political battleground is digital, it actually helped Pakatan because it meant they didn’t need to reach every corner of the country.

While BN created an arms length, slick, PM driven campaign with a lot of chest thumping, Pakatan was embracing voters, or more importantly Pakatan supporters were embracing voters in the digital coffee shops with informal, instantaneous responses to issues.

Trust and loyalty are the foundations of every brand and they always have been. Malaysians are smarter and better informed than they have ever been. They have shown they will no longer tolerate patronizing, incompetent politicians.

Politicians will have to earn the voters trust. They will have to be at the heart of every political party’s approach. Fail to learn that lesson and your days in power will be numbered.

Q: FINALLY, WHY DID YOU WRITE THE CONTROVERSIAL BOOK: STOP ADVERTISING, START BRANDING?

A: I got the idea for the book when I saw a print ad for Singapore from 1971 and then a week later I saw another one from 2016. Except for some minor changes such as the addition of a website in place of a tear off strip, they were virtually identical.

And soon after I read an article from Ernst & Young about how US$1.5 trillion was spent annually on marketing yet 80 – 90% of products failed to become brands.

I realised that even though the competitive environment and consumers are very different today than they were 50 years ago. That management, manufacturing and distribution have made substantial advances in the same period and we’re moving towards Industry 4.0, branding initiatives were still based around tactics from the Industry 2.0 era, even when used on new platforms.

The more I researched the topic, the more it appeared that reliance on outdated tactics from the past were the reason behind so much wasted money and so many branding failures.

So I decided to write a book about how to move away from the traditional style of trying to build a brand and save a lot of companies, and political parties, a lot of money.

Fusionbrand CEO Marcus Osborne

Marcus Osborne is CEO of Fusionbrand Sdn Bhd headquartered in Kuala Lumpur and can be reached on marcus at fusionbrand dot com

SIX tips from Fusionbrand on how to avoid the same fate as Tourism Malaysia


Yes it looks like an irresponsible adult allowed a petulant child with a grudge against the creative fraternity loose on a very old software programme and yes, it should never have made it past the idea stage. It’s the creative equivalent of a train crash featuring trains carrying toxic chemicals or nuclear weapons. But does it matter? In the short term, perhaps. Long term, maybe. But it never have happened.

I’m talking of course about the Tourism Malaysia VMY2020 logo (see pic) launched at the end of January 2018 by Datuk Seri Nazri Aziz, the Malaysia Minister of Tourism and derided by much of Malaysia, graphic designers worldwide and respected media organisations such as the Daily Telegraph, the BBC and the South China Morning Post.

How to make sure you don’t end up with one of these

Despite the negative reaction of, well everyone, I’m going to stick my neck out and say that the reality is the new logo (if it survives and I don’t think it will) won’t have an effect on visitors contemplating whether or not they should visit Malaysia in 2020 (and the years before and after 2020).

In fact after being featured on social media and a host of international news channels and publications, it may have provided Malaysia with yet more free publicity.

Admittedly not the kind of publicity Malaysia really wants but it’ll take more than negative publicity about a crap logo to attract or stop foreigners from visiting the country.

Nearly every business/school/institution and many individuals have a logo. We see logos on business cards, buildings, billboards, buses, lamposts, food packets, print ads, TV ads and just about everywhere else you can stick one.

And they sell computers, clothes, cars, cosmetics, finances, food, schools, fashion and fags, alcohol, appliances, airlines and holidays, and just about anything else in between.

There are good logos and bad logos, some change on a regular basis, think Google, others stay pretty much the same for years, think Apple or Nike. We’re told logos must be unique yet instantly recognisable.

They must have colour because certain colours convey certain meanings yet they must be instantly recognisable and have the same impact in black and white.

We’re told that each element of the logo has meaning. A logo designed with sharp, straight lines communicate a strong, trustworthy brand.

Curved lines on the other hand communicate a caring and supportive product or service. The rationale for combining curved and straight lines is an ambitious company.

And we’re told that everyone should have a logo because they represent the brand and make you stand out from the crowd. But crowds behave differently today and are influenced in different ways.

The illustrative style that we recognise as logos today is nearly 150 years old and harks back to a time when Western civilisations moved out of the fields and into the factories. Most of those factories are now here in Asia where we’re living our lives a little differently today than we were back then.

The main role of the logo, traditionally anyway, has been to create awareness about a business or in this instance, a destination (and not the country) and help to build a positive image about the business/destination.

Logos evoloved to become a symbolic reflection of what the busines/destination wanted to communicate to audiences. And when logos changed, it was meant to be part of an overall strategic shift in direction for the brand and would be one of many elements of that new brand strategy that had to be communicated in a joined up, integrated manner.

But over the last 20 years, businesses have got lazy or perhaps greedy. Too many businesses have changed logos in isolation, without incorporating the change into a new strategy.

They’ve updated the brand identity and called it a rebrand without making any improvements to the organisation. And then they’ve watched, surprised when nothing changes.

The London 2012 logo dodged a bullet

Sometimes when a logo changed slightly and the reaction was negative, the brand got away with it. Remember the London Olympics logo? Other times, such as the GAP logo change in 2010, the consumer response was deafening and GAP had to backtrack quickly. But overall, because these changes were ad hoc or tactical, they made little difference to the business delivery.

Another classic example is oil behemouth BP. Back in 2000 the firm decided they wanted a new logo that communicated ‘green growth’. Despite spending over US$200 million it was considered a massive failure because the opinion of most people was that there was nothing green about the business of oil. No matter what the company tried to make us believe.

Our new logo tells you we’re not in a dirty business so you must listen

And then in 2010, the largest offshore oil spill the history of the oil business put paid to the concept of the green growth oil company communicated via its logo. For many, that’s when logos lost their relevance.

With the proliferation of countries competing for the same visitors, too many destinations play safe and compete with the same look and feel, making it difficult for potential visitors to differentiate them.

Add to this mix the powerful impact of social media on the travel industry and visitors now use the Internet for research purposes and get most of the information that influences their decision making from content generated by people like them and not logos.

The rise of the ‘me too’ destination logo dilutes the importance of the logo in the visitor’s decision making process

The focus has shifted away from the identity of the destination to the experiences of other like minded people in that country. Against this backdrop, it’s hardly surprising then that the importance of a logo will not be what it was.

According to the World Travel & Tourism Council (WTTC), global tourism generated $7.6 trillion for the global GDP. More than 105 million international visitors arrived in South East Asia in 2015 and that figure is growing at an average of 8% every year.

Many of those visitors will visit Malaysia not because of the logo but because Kuala Lumpur International Airport is an increasingly important hub for low cost carriers servicing destinations such as Vietnam, Cambodia, Thailand, Myanmar and more. And any trip to SE Asia will include visits to other countries in the region.

So in terms of the impact the logo will have on visitors to Malaysia, it will be negligible. However, it will help shape perceptions of Malaysia as a country and much of the debate across social media was how embarrassing the logo is for Malaysia.

So in terms of the reputation of Malaysia, there will be a perception impact and that will probably add to the negativity about the country. If most of the content consumers read about Malaysia is negative, then perceptions will become negative. And those perceptions can only be influenced and changed with a brand strategy that includes all stakeholders and not with tactical activities such as a new logo, advertising or events.

For Malaysia, what’s done is done. What can other countries, states, regions, cities or towns do to ensure their efforts aren’t ridiculed in the same way?

Here are 6 lessons that can be learned from this fiasco. They should be applied to any destination branding initiative.

1) Set up a nation branding task force.
Every country or state/city/place should have one. Malaysia used to have one and in 2008 the task force commissioned Fusionbrand to develop the Malaysia nation brand but the plans were canned when a new administration took over and a new department was set up under the new Prime Minister’s Office. This department embarked on a badly researched project about 5 years later that revolved around a tagline and a logo and not a strategy and as a result, lasted little more than a month.

2) Nation branding is strategic not tactical.
Nothing related to the nation brand can be done in isolation. To avoid similar failures, anything related to the nation/state/region/city brand must go through the nation branding task force. And that includes important ministries such as the Tourism ministry. Even state tourism boards and other stakeholders must share with the nation branding task force.

3) Test identity concepts before launch.
No man is an island. But sadly in Malaysia, if a senior person proposes something it is rarely challenged internally, even by marketing professionals hired supposedly for their knowledge. Anything creative should always be tested internally and with multiple consumer segments and the task force. I know it’s time consuming and expensive but which is worse, a delay in the launch or becoming the laughing stock of the world?

4) Have a plan for your identity launch.
Don’t expect to wing it. And be prepared for serious back lash from consumers because most of us hate change. Not many new logos were well received initially. But many of them are now very familiar, think Pepsi, Citi, Accenture, Qantas. After a certain amount of fumbling, the Minister stated, “I have launched it. Nazri Aziz never backtracks. This is what will be used for the world, only one logo, no other logo.” Would a clearly defined, sensible rationale have been a better way to announce the new logo? Absolutely.

5) Social media is your friend not your enemy.
I get the impression, perhaps wrongly that Tourism Malaysia was completely unprepared for the reaction to the logo. Especially on social media. Social Media CAN effect change so learn to work with it. But remember it is not a soapbox. Simple consumer research at the logo development stage on Facebook and Twitter would have saved Tourism Malaysia and the country, a lot of embarrassment.

6) Logos / taglines etc should not be confused with branding.
Malaysia has had a tough time over the last few years with the country struggling to stay relevant in an increasingly competitive environment. It’s hard to find current arrivals figures but the general consensus of opinion is that visitors from wealthy countries or high spending tourists are not visiting as they used to. A lot of this is because there is confusion over what constitutes branding and the Malaysia tourism brand has little differentiation. Brand identities / taglines / positioning statements / advertising campaigns and other marketing tactics are not branding. They may create awareness but that rarely convert to arrivals.

As I’ve stated already, I don’t think this farce will have much of a positive or negative impact on arrivals. But it’s impact on Malaysia’s brand? That worries me but that’s a discussion for another day.

Fusionbrand is Malaysia’s premier strategic brand consultancy. For more information on how we can help you get your branding right the first time, please call +60379542075.

As Europe struggles to come to terms with Brexit, Asean celebrates 50 years


Citynationplace is one of the most respected nation branding forums on the Iot and is also the organiser of the must attend place branding conference held in the UK in November every year.

This month they’ve asked a number of brand consultants in Asia about Asean@50 about the state of nation branding in the region and the potential of Asean countries to work together to drive tourism and investment to the region. You can read the full article here

As I was one of the consultants interviewed, I thought I’d have a look at what Asean is doing to drive visitors to the region as part of the Asean@50 celebrations. The primary goal of the campaign is to encourage visitors to look at visiting more than one ASEAN destination.

The introduction to my comments on nation branding in Asia
The introduction to my comments on nation branding in Asia

As part of the celebrations for its 50th anniversary, ASEAN has created a theme “Partnering for Change, Engaging the World”. There is also a collaborative tourism campaign: “Visit ASEAN@50: Golden Celebration”.

I’m yet to see this campaign in Malaysia or Singapore but a new website has been created however it doesn’t seem to feature too much information. On the events page, there were no events for Malaysia in March and none till October.

For visitors to use the site, there needs to be plenty of the right information
For visitors to use the site, there needs to be plenty of the right information

There’s also another tagline for South East Asia “Feel the warmth”. This is featured on the Asean Tourism website. I couldn’t find a Facebook page however the hashtag #visitasean50 has appeared on Facebook but there doesn’t appear to be any structure to any of the communications.

There are a couple of videos on YouTube, one of which has been shared about 40,000 times on Facebook but again there doesn’t seem to be any strategy behind any of the postings.

A Twitter page was created in July 2014 but it appears inactive.

I don’t have the full details on the project and we are only at the end of the first quarter of 2017 so the strategy maybe to start later in the year although many in the northern hemisphere will be planning their holidays now so the digital representation needs to be improved and improved quickly.

Where is Malaysia in terms of world happiness?


Sticking with the Nation branding theme of the previous post, the 2016 World Happiness report is out. You can download the full report here. Of the 157 countries that participated in the project, Malaysia is the 47th most happy country, 25 places below Singapore at 22 and way above Indonesia at 79.

Denmark top of the world happiness index
Denmark top of the world happiness index

The sample size is 3,000 and its purpose is to, “survey the scientific underpinnings of measuring and understanding subjective well-being.” One section of the methodology caught my eye, “..continued with our attempts to explain the levels and changes in average national life evaluations among countries around the world. This year we shall still consider the geographic distribution of life evaluations among countries, while extending our analysis to consider in more detail the inequality of happiness – how life evaluations are distributed among individuals within countries and geographic regions.” It caught my eye but I’m not sure what it means!

One argument in the report suggests “people are happier living in societies where there is less inequality of happiness.” Which I think means “People are happier where everyone is happy.” If I’m right, I don’t think that’s particularly ground breaking information.

However, the section on Measuring and understanding happiness is interesting and worth a look. In fact the whole report is worth a look but I won’t be taking it too seriously. Oh, and the happiest country in the world? Denmark. Why, because everyone looks out for everyone else. The government’s social policy really is social and embraces everyone which has created a civil society where everyone has the freedom and income to make their own life choices. Food for thought there.

Malaysia Airlines offloads key routes to Emirates


The tie up between Malaysia Airlines (MAB) and Emirates is an interesting one. On the one hand, there must be money to be made from these routes otherwise Emirates wouldn’t touch them and the cost to Emirates will be minimal because they are flying all these sectors anyway.

MAB will still be able to show it offers flights on the CDG – KL route but in reality it will be an Emirates flight that goes via DXB. As a result, MAB will lose a substantial source of foreign currency and the carriers brand as well as the Malaysia brand will be diluted.

At least Malaysia Airlines passengers can use this on flights to Europe
At least Malaysia Airlines passengers can use this on flights to Europe

It’ll also make it harder to sell Malaysia as a location for FDI to European companies because there are limited direct flights (to busy CEOs a 2 hour stopover in DXB each way is an expensive irritant) to the country.

On the other, it makes sense because Malaysia Airlines is now associated with the current poster boy of the aviation business (Sorry SIA) which should benefit the carrier. Although I wonder how this will work once Emirates gets a look at the weak offering MAB is, especially up the front of the bird.

It looks increasingly like Mueller wants to make Malaysia Airlines a small, regional quasi low cost carrier. That’s a tough ask in a market where loyalty is hard to come by. Whichever way you look at it, the brand is being diluted and that’s a costly shame for the carrier and the country.

I suspect there are KPIs involved that focus only on the bottom line and not on building a global brand that flies the flag for Malaysia and helps sell the country as a business and tourist destination. That’s a pity.

It’ll take more than creepy campaigns to increase visitor arrivals to Thailand


I came across what I think is a new blog called Cross Channel Talk recently that has an interesting post on “Selling Nationalism”. The post discusses the concept of promoting the national identity to drive up visitor numbers. It’s an interesting read that suggests the proliferation of global franchises such as McDonalds and Coca Cola has homogenized diverse cultures.

Whilst I personally believe that’s a stretch, the post does explore the way tourism campaigns have become a fairly predictable mashup of generalized images, ideas and stories.

The post looks at ads from Australia circa 1984 to the present day with a focus on Australia and Thailand. It takes a long hard look at how these countries have tried to be innovative in the way they market themselves.

The post rips into Tourism Authority Thailand’s recent attempt to drive visitors to the country, calling it ‘7 minutes of awkwardness’ with a ‘cringe factor of +15’.

This isn’t the first attempt by Tourism Authority Thailand (TAT) to create a buzz around the country by using what TAT themselves call ‘unbranded advertisements’. You can read more about their previous attempt ‘I hate Thailand’ here.

When discussing the Australian campaign, the Cross Channel Talk blog quotes opposition tourism spokesperson Martin Ferguson as saying;

“We’ve been told it was a huge success and generated all these hits on a website but the latest tourism figures show the numbers are down.”

If the metric for success is hits on a video then the ‘I hate Thailand’ campaign might be considered a success as it has generated almost 3 million views in about 8 months. Released in November 2014, it may have been too late to have an impact on the 2014 arrivals that were 11% down on the previous year. However, TAT is cautiously optimistic about 2015 arrivals although the early signs are that any growth will come from the region and not the more lucrative long haul European markets.

And besides, any increase in arrivals will not just be a result of a new campaign, espcially a creepy one!

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


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
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
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
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
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?
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.

10 things to do to save the Malaysia Airlines brand


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
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?

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
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
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.

Why the tagline “Endless Possibilities” doesn’t matter


Those responsible for developing the Malaysia Nation Brand have come in for a lot of flack since the announcement by the Prime Minister that ‘Endless Possibilities’ was the new Nation Brand tagline.

And then, after several days of negative comments, respected news portal the mole reported last Thursday that the official launch of the tagline may be scrapped or at least delayed.

Frankly I’m stunned to hear there may be a U turn on this project almost before it has begun because the tagline has a minor role to play in the context of nation branding and what it is doesn’t really matter.

Because whatever tagline is chosen will have very little impact on the success or failure of the Nation Brand project and furthermore, it will be forgotten sooner rather than later.

Does anyone remember “Indonesia: Admit It You Love It”? Or for that matter the globally ridiculed and grammatically incorrect “Celebrating 100 years of Nation’s awakening.” Of course you don’t yet Southeast Asia’s largest economy has achieved growth of more than 6% in four of the last five years. That’s four of the last 5 years since 2008 when the world went into economic meltdown. Remarkably, in April – June 2013 the country attracted US$6.5 billion of FDI, up 19% over the same period last year.

Tourist arrivals to Indonesia have also shown significant growth and in the first half of 2013, the number of foreign visitors was up 7.18% to 4.15 million from 3.87 million in the same period in 2012.

Some time ago Germany, normally the poster boy of well thought out strategic initiatives came out with the bland, pointless and rather unlikely “Germany, affordable Hospitality.” Nevertheless, the country is the rose amongst thorns of European economies.

Some of the best and iconic country taglines are those that evoke a sense of the place they describe such as “New Zealand 100% Pure”, “Switzerland Get Natural” or “Montenegro Wild Beauty.”

And who can forget ‘cool Britannia’ introduced by the British Labour party in the late 1990s and created to communicate Britain as a vibrant, trendy and cool country. There was a similar backlash to the one in Malaysia and the UK tourism authority disagreed with it so much they went off on their own and created “UK OK” as a tagline. I doubt anyone reading this remembers either tagline but it hasn’t stopped the UK becoming the leading European destination for foreign direct investment, securing 1,559 investment projects that created 170,000 jobs. In fact, while global FDI inflows declined by 18%, FDI inflows into the UK rose by 22%

As Malaysia has discovered, finding a superlative that hasn’t been used is not an easy task but choosing one that has been used doesn’t mean it can’t be used again.

In fact, one could argue that the very fact that so many countries and companies have used “Endless Possibilities” could be considered proof that in fact the opposite is true and that this is a good tagline.