SUSTAINING YOUR BRAND IN THE ECONOMIC DOWNTURN.ppt
SUSTAINING YOUR BRAND IN THE ECONOMIC DOWNTURNCase Study,Concepts,and Debatable IdeasKenny OngCNI Holdings Berhad,www.myCNI.com.my,www.OOBEY.com,Intro:CNI,20 years oldCore Business:MLMOthers:Contract Manufacturing,F&B Retail,Export/Trading,eCommerce,Shared ServicesMalaysia,Singapore,Brunei,Indonesia,India,China,Hong Kong,Philippines,Italy,Taiwan,Oman,United States,VietnamStaff force:500Distributors:200,000Products:Consumer Goods and Services,Agenda,Branding regardless of economic situationBranding in a Downturn,Branding regardless of downturn,upturn or u-turn,Branding today,13th April 2009Two Dominos employeesYouTubeApology from Dominos after 48 hours1 million hitsTwitter:questions on silenceLinkedIn:suggestions by users in forum,BusinessWeek,May 4,2009,Branding,And what this means to businesses today,www.myCNI.com.my,www.OOBEY.com,The real goal of Marketing and Branding,Understanding our role in the whole scheme of things,www.myCNI.com.my,www.OOBEY.com,What is the purpose of Marketing&Branding?,Ultimate Objective of Marketing:“Get more people,to buy more things,more frequently,at higher prices.”,Sergio Zyman,“Retention and Loyalty are useless if No Conversion is happening.”,www.myCNI.com.my,www.OOBEY.com,What is the purpose of Marketing&Branding?,“Retention and Loyalty are useless if No Conversion is happening.”,“Communication is useless if No Conversion is happening.”,www.myCNI.com.my,www.OOBEY.com,What is the Objective?,Comm=Relationship(something like Dating)Comm Media glitz Comm ATL/BTL/BwTL/ArTL/FTLComm CSRComm=Get more people,to buy more,more frequently,at higher prices,www.myCNI.com.my,www.OOBEY.com,Components of Branding,Positioning,Execution,Communication,www.myCNI.com.my,www.OOBEY.com,Summary of Branding,Branding in its simplest form(and it saves cost too),www.myCNI.com.my,www.OOBEY.com,Focus,Communicate,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Check,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Repeat,Business Model in Branding,The biggest impact,www.myCNI.com.my,www.OOBEY.com,Alignment&Consistency,USP,Market Discipline,Profit Model,GoogleAir AsiaTata Nano,Alignment&Consistency,They are the most innovativeConstantly renewing and creativeAlways on the leading edge,A great deal!Excellent/attractive priceMinimal acquisition cost and hassleLowest overall cost of ownershipA no-hassles firmConvenience and speedReliable product and service,Exactly what I needCustomized productsPersonalized communicationsTheyre very responsivePreferential service and flexibilityRecommends what I needIm very loyal to themHelps us to be a success,Product Leadership,OperationalExcellence,CustomerIntimacy,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Alignment&Consistency:Market Disciplines,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Alignment&Consistency:Market Disciplines,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Alignment&Consistency:Market Disciplines,Operational ExcellenceCompetitive priceError free,reliableFast(on demand)SimpleResponsiveConsistent information for allTransactionalOnce and Done,Customer IntimacyManagement by FactEasy to do business withHave it your way(customization)Market segments of oneProactive,flexibleRelationship and consultative sellingCross selling,Product LeadershipNew,state of the art products or servicesRisk takersMeet volatile customer needsFast concept-to-counterNever satisfied-obsolete own and competitors productsLearning organization,Alignment&Consistency:Disciplines,Priorities,and KPIs,www.myCNI.com.my,www.OOBEY.com,The McPlaybook*,Make it easy to eat50%drive-thruMeals held in one hand,Make it easy to prepareHigh TurnoverTasks simple to learn&repeat,Make it quick“Fast Food”Tests new products for Cooking Times,Make what customers wantProwls market for new productsMonitored field tests,*Adapted from:Businessweek,Februrary 5th 2007,www.myCNI.com.my,www.OOBEY.com,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Alignment&Consistency,Operational Excellence(low cost producer),Ref:The Discipline of Market Leaders,Michael Treacy 1995,Product Leadership(best product),Customer Intimacy(best total solution),Alignment&Consistency,HP well-balanced portfolio,mass customization,Acer super lean cost structure,aggressive pricing,Apple powerful products,premium pricing,limited range,Still Doing well in 2009,Alignment&Consistency:Business Model,USP,Market Discipline,Profit Model,Branding in a Downturn,Business Strategy vs.Consumer,The Five Branding Ideas in a Downturn,The best solutions are usually not obvious,www.myCNI.com.my,www.OOBEY.com,The Five Branding Ideas in a Downturn,Reduce Cost by Reducing FocusIntegrate Communications(Consistency)Feed you,Feed meBad NewsTargeted Communications,www.myCNI.com.my,www.OOBEY.com,Downturn Idea#1:Reduce Cost by Reducing Focus,www.myCNI.com.my,www.OOBEY.com,Strategy vs.Focus,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,NPD Cycle TimeImprove EdgeExtensionsCounter Competitor,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Innovation/R&DFocus BreakthroughsJV,In-source,Out-sourceEliminate bottom 20%,Improve Top 15%revenue-generating products R&D,Sales,www.myCNI.com.my,www.OOBEY.com,Side Notes on Cost Reduction Strategy,Cost Reduction,5%-30%,30%-80%,Business Situation vs.Sales,Upturn,Flat,Downturn,Fight ComplacencySharpen EdgeKeep MomentumConquer,Change mgmtReduce FatContinuityEveryone Happy,InnovationAcquireProfitsBuild momentum,SalesCash Flow,Talent MgmtInnovation/R&DEarly winsSlow Down HR Costs,www.myCNI.com.my,www.OOBEY.com,Reduce price by reducing non-product pricesOptimize customers current assets Offset customers costs Focus market share CEO and Sr.Mgmt in the field Sell up the buyer chain Motivate troops Add extra services Control troop emotions,Improve Top 15%revenue-generating products R&D,Sales,Downturn Idea#2:Consistency Integration,www.myCNI.com.my,www.OOBEY.com,Communications Integration and Consistency,Communications,Internal,External,Mgmt,Customers,Suppliers,Proactive,Reactive,Proactive,Reactive,COMM Tools,COMM Tools,www.myCNI.com.my,www.OOBEY.com,Employees,Alignment&Consistency:Business Model,USP,Market Discipline,Profit Model,Alignment:4-Wheels Model,Culture,Business Model,Brand Strategy,Alignment&Consistency:The 6 Sins of Greenwashing,Sin of the Hidden Trade-OffSin of No ProofSin of VaguenessSin of IrrelevanceSin of FibbingSin of Lesser of Two Evils,Study by:TerraChoice,December 2007,www.myCNI.com.my,www.OOBEY.com,Alignment&Consistency:The 6 Sins of Greenwashing,Alignment&Consistency:The 6 Sins of Greenwashing,Downturn Idea#3:Feed you,Feed me,www.myCNI.com.my,www.OOBEY.com,Integrating Internal/External,Internal,External,Feed,Feed,www.myCNI.com.my,www.OOBEY.com,Integrating Internal/External,InternalHalal CommitteeSocial Education(e.g.SCK)Umrah tripChina TripRBOSCFA/HFACoffee Van,ExternalSponsorshipDonationsNews clippingsNewspaper AdsMHIAwardsCorporate ProfileAGMGov.CelebrityAnalyst research,www.myCNI.com.my,www.OOBEY.com,Downturn Idea#4:Corporate Reputation,Handling Bad News and Good News before it becomes a Cost,www.myCNI.com.my,www.OOBEY.com,PR Challenges,“Good news for stockholders can be bad news for other stakeholders.”Gregory Miller,Assoc.Prof.,Harvard Business School.,www.myCNI.com.my,www.OOBEY.com,Audiences Good News?Bad News?,money saved by tough bargaining with a union announcing a dividend:to employeesannouncing a dividend:to environmentalistssetting up Diversified business,Attachment 2-Building Trust with One Group Can Destroy Trust with Another,www.myCNI.com.my,www.OOBEY.com,News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,Born Stupid,Didnt study hard enough,Lousy Teachers,Sudden high extreme marking stds,E.g.Failed SPM,Good News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,?,Good News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,?,Foreign investorSegment growthR&D breakthrough,Bad News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,Bad News vs.Controllability,Can Control,Cannot Control,Internal Attribution,External Attribution,www.myCNI.com.my,www.OOBEY.com,Oil spillProduct recallMarketing strategy,Bad debts(NPL)PandemicEconomy crisis,Downturn Idea#5:Right Tools at the Right Time with the Right Audience,The power of targeted branding communications,www.myCNI.com.my,www.OOBEY.com,The Right Tools for the Job,Reach of Communication,Quality/Intensity of Communication,Personal(exp),Personal(info),Impersonal(info),Individual,Mass,Mass Traditional,In-home,Out-Of-HomeMass UnconventionalMass Online,www.myCNI.com.my,www.OOBEY.com,Refer Attachment 3,The Right Tools for the Job,Reach of Communication,Quality/Intensity of Communication,Personal(exp),Personal(info),Impersonal(info),Individual,Mass,Mass Targeted ConventionalMass Targeted OnlineE.g.Annual Reports,Analyst Briefings,IR Roadshows,IR Website,www.myCNI.com.my,www.OOBEY.com,Refer Attachment 3,The Right Tools for the Job,Reach of Communication,Quality/Intensity of Communication,Personal(exp),Personal(info),Impersonal(info),Individual,Mass,Individual Targeted ConventionalIndividual Targeted Online,www.myCNI.com.my,www.OOBEY.com,ContestsOne-on-One,Refer Attachment 3,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Essentials,Treats,Postponables,Expandables,Your Products/Services,Downturn:Customer Types vs.Branding,Your Products/Services,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,PriceSmaller PackPrivate LabelsLow-cost Value productsFighter BrandsLess Variety/CustomizationImmediate cash back,Essentials,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Shrink sizesHold down prices“You Deserve It”Less Variety/CustomizationImmediate cash back,Treats,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Low-cost FinancingExceptional Deals“Danger of Postponing”Immediate cash back,Postponables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Offer D.I.Y.versionsAwarenessImmediate cash back,Expandables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Lower Price optionsBonus Packs(Stockpile)“Dependability”“Good enough”Immediate cash back,Essentials,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Reward Loyalty“Improve Morale”Affordable vs.LuxuryImmediate cash back,Treats,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Simpler Models,Lower PricesLower TCO modelsRepair servicesImmediate cash back,Postponables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,AwarenessR&D of Core ProductsImmediate cash back,Expandables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Awareness,Essentials,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,“Outstanding Quality”“You deserve it”,Treats,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,“Save from Buying Now”“You are missing out”,Postponables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Discreet purchase(avoid flaunting)“Impress Your friends”,Expandables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Awareness“You cant live without it”,Essentials,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,A.R.O.“Seize the moment”,Treats,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,Monthly Payment Plans“Quality of Life”,Postponables,Downturn:Customer Types vs.Branding,Hand brake,Surviving,Well Off,Dont Care,Customer Types,New products“Must Have”“For exclusive people”,Expandables,End Notes,www.myCNI.com.my,www.OOBEY.com,Branding in a Downturn,Branding in a Downturn,Branding in a Downturn,Way back in 2004,Thomas Cup,Indonesia,In 2007,CNI Beemax Factory Visit,ChinaTop LeadersProduct DevelopmentMedia,What is the purpose of Marketing&Branding?,Ultimate Objective of Marketing:“Get more people,to buy more things,more frequently,at higher prices.”,Sergio Zyman,www.myCNI.com.my,www.OOBEY.com,Thank You.,soft copy of slides:http:/,
