The Powerful Role Of PR In Brand Development

THE POWERFUL ROLE OF PR IN BRAND DEVELOPMENTCase Study, Concepts, and Debatable Ideas

Kenny OngCNI Holdings Berhad

www.myCNI.com.my www.OOBEY.com

http://www.mycni.com.my/

http://www.oobey.com/

Problems from the start

1. No money2. Split Objectives: Sales? Share Price? Image?3. Difficult to hire4. Independent entity5. Charity center6. MLM image nightmare7. Multi-cultural & Multi-lingual8. Close Regulatory scrutiny (food act, health act,

Jakim, KPDN)9. Public Listed




About: CNI

1. 19 years old2. Core Business: MLM3. Others: Contract Manufacturing,

Export/Trading, eCommerce4. Malaysia, Singapore, Brunei, Indonesia, India,

China, Hong Kong, Philippines, Italy, Taiwan5. Staff force: ± 5006. Distributors: 200,0007. Products: Consumer Goods and Services




Branding

And what this means to Public and Media Relations




Components of Branding

Positioning

Execution

Communication




Positioning

“Hope is not a strategy”John Maxwell




Positioning

• For who? – Segmentation, Targeting• Your Offer? • Key Differentiator?




Two Typical Types of Segmentation for Branding

1. Demographic segmentation2. Income segmentation




Demographic Segmentation - General

Veterans (Pre-Boomers)1934-1945

Boomers1945-1960

Gen X (Cusper, Buster)1960 - 1980

Gen Y (Millennials, Netster)

1980+




Demographic Segmentation - others

1. Women, Working Mothers2. Youtube generation3. Working retired4. Social Activists5. Work/Life balancers6. Industry (ICT, Advertising, Engineer,

Accounting, Lawyer, etc.)



Income Groups

Urban, Affluent

Middle Class

Poor,Rural

Expensive, cutting edge, private funds

Government priority, high subsidy, rural locations, cheap

No money for high-end, no access to low-end




Basics & Differentiators

Segments

Targets

Targets

Basics

Differentiators




What needs work?

Current Brand

Impo

rtanc

e to

Ta

rget

Seg

men

t

High

Low

Weak Strong

Global Name

Friendly

Leading Edge

After-sales support

Convenience

Personalization

Reliability

Pricing

Image




The real goal of Marketing and Branding

Understanding PR’s role in tne whole scheme of things




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.”




“Comm (PR) is useless if No Conversion is happening.”


Problem…

“In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”

HBR March/April 1996


What is the Objective?


Sergio Zyman

“Retention and Loyalty useless if No Conversion is happening.”



Loyalty is Useless…

• Virtual Consumption vs. Real Consumption



Loyalty is misleading…

• Heavy Consumption ≠ Loyalty• Loyalty ≠ Heavy Consumption



1.Comm = Relationship (something like Dating)

2.Comm ≠ Media glitz 3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL4.Comm ≠ CSR5.Comm = Get more people, to buy

more, more frequently, at higher prices


PR and Branding

Why Public and Media Relations matter in Brand building




Is PR important to Branding?

1. Funds 2. Sales3. Intelligence4. Customer-shareholders




Importance: Funds

This is the most obvious.

The objective is to keep the paymasters happy so that they will either maintain or increase their funding.

Crisis Management is one small area that falls into this objective




Importance: Sales

Public Relations is a key component of corporate Branding due to its direct influence on:

• Multiple parties (inc. Investors)• These parties are either our Branding targets

or has influence on our branding targets




Internal/External Communications

Communications

Internal External

Mgmt Distributors

Suppliers

MediaGovernmentPublicAuthorities

AssociationsUniversitiesNGOs

Investors

Proactive Reactive Proactive Reactive

COMM Tools COMM Toolswww.myCNI.com.my www.OOBEY.com

Employees



Types of Investors (1/2)

Institutional

Fund Managers

Corporations

Sovereign Funds

VCs

NGOs

Non-Profit Org

Financial (Loans)

JV Partners

M&A

Social VCs

Holding Co.

HQ (MNC)

Gov. VCs

Supply Chain

Gov. Partnership

PFI

Competitors

Franchiseeswww.myCNI.com.my www.OOBEY.com




Retail

Investor-Shareholders

Employee-Shareholders

Management-Shareholders

Customer-Shareholders

Distributor-Shareholders*

Distributor-Entrepreneurs*




Importance: Intelligence

Two types:

P.R. Customers

CRM Intelligence

Deal with…

P.R. Management

Public Intelligence

Deal with…




Intelligence: Types of Investors (1/2)

Institutional

Fund Managers

Corporations

Sovereign Funds

VCs

NGOs

Non-Profit Org

Financial (Loans)

JV Partners

M&A

Social VCs

Holding Co.

HQ (MNC)

Gov. VCs

Supply Chain

Gov. Partnership

PFI

Competitors




Intelligence: Types of Investors (2/2)

Retail










Intelligence: How do External Parties get their ‘INFO’? (1/2)

Institutional

Gov./PoliticsCustomer

s

Suppliers

EconomicsAGM

Market Research

Internet*

Annual Report

Media

Analysts

Fund Managers

Due Diligence

NGOs

NewsletterSpokespersons




Intelligence: How do External Parties get their ‘INFO’? (2/2)

Retail

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet*

Annual Report

Media

Analysts

Fund Managers

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Action

s

Newsletter




Intelligence: How to Communicate?

Self Reliant Need Help

Seek Change

Seek Stability

Searchers Collaborators

Streamliners Delegators




Public Intelligence: What?

Examples…1. Record feedback and questions2. Competitors’ PR communications3. Top 10 Analysts’ views on Company4. Top 10 Analysts’ views on Industry




Public Intelligence: Why?

1. Broad view of market2. Less optimistic/review own assumptions3. Upgrade IR function to be strategic4. Feed Management discussions5. Better and more relevant IR

communications6. Support (buy-in)




Revenue Growth

Base Retention

Share Gain Positioning Adjacent Market

New Business

Operational Excellence

Product Leadership

Customer Intimacy

Competencies Information Systems

Motivation, empowerment,

alignment

Financial

Learning & Growth

Internal Process

Customers

Investment Strategy

Productivity Market Value

Public Intelligence: Why?




Dangers of Intelligence…

Also known as ‘Beware of Benchmarking’:1. Big vs. Small company2. Selective success stories3. Correlation vs. Causal4. Survey problems5. Actionable vs. For-fun




Intelligence: Survey Problems…

“In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied.”

HBR March/April 1996




PR and Customer-Shareholders

Retail





Distributor-Shareholders

Distributor-Entrepreneurs


Affect Sales



Revisit – PR’s Key Roles

1. Funds 2. Sales3. Intelligence4. Customer-

shareholders

Communication to bring in the Funds




Revisit – PR’s Key Roles

1. Funds 2. Sales3. Intelligence4. Customer-

shareholders

Communication to bring in the Sales




The Four Roles of PR in Branding

Why we are important to the branding process




The Four Roles of PR in Branding

1. Integrate Communications (Consistency)2. Feed you, Feed me3. External Communications4. Bad News


Role 1: Consistency Integration

The Four Roles of PR in Branding and why we are important to the branding

process




What to Integrate?

1. Aligning OrganizationTo the Culture

2. Integrating External

& Internal actions

3. Alignment and Consistency to the Strategy

4. Long-term Relationship

Building efforts




Communications Integration and Consistency

Communications

Internal External

Mgmt Distributors

Suppliers



Investors



Employees



Alignment & Consistency

• Mamak stall




Alignment & Consistency

"They are the most innovative""Constantly renewing and creative""Always on the leading edge"

"A great deal!"Excellent/attractive priceMinimal acquisition cost and hassleLowest overall cost of ownership

"A no-hassles firm"Convenience and speedReliable product and service

"Exactly what I need"Customized productsPersonalized communications

"They're very responsive"Preferential service and flexibilityRecommends what I need

"I'm very loyal to them"Helps us to be a success

Product Leadership

OperationalExcellence

CustomerIntimacy




Operational Excellence(low cost producer)

Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995

Product Leadership(best product)

Customer Intimacy(best total solution)

Alignment & Consistency: Market Disciplines




The McPlaybook*

Make it easy to eat• 50% drive-thru• Meals held in one

hand

Make it easy to prepare• High Turnover• Tasks simple to learn

& repeat

Make it quick• “Fast Food”• Tests new products

for Cooking Times

Make what customers want• Prowls market for new

products• Monitored field tests

*Adapted from: Businessweek , Februrary 5th 2007




Operational Excellence

• Competitive price

• Error free, reliable

• Fast (on demand)

• Simple

• Responsive

• Consistent information for all

• Transactional

• 'Once and Done'

Customer Intimacy

• Management by Fact

• Easy to do business with

• Have it your way (customization)

• Market segments of one

• Proactive, flexible

• Relationship and consultative selling

• Cross selling

Product Leadership

• New, state of the art products or services

• Risk takers

• Meet volatile customer needs

• Fast concept-to- counter

• Never satisfied - obsolete own and competitors' products

• Learning organization

Alignment & Consistency: Disciplines, Priorities, and KPIs




• Operational Excellence• Move know-how from top performing

units to others• Benchmark against best in class• Ensure operations training for all

employees• Use disciplines like TQM for continuous

learning to reduce costs and improve quality






• Customer Intimacy• Capture knowledge about customers• Understand customer needs• Empower front line employees• Ensure that everyone knows the

customer• Make company knowledge available to

customers




• Product Leadership• Reduce time to market• Commercialize new products fast• Ensure that ideas flow• Reuse what other parts of the company

have already learned• Ensure there are multiple sources of

funding





















The 6 Sins of Greenwashing

1. Sin of the Hidden Trade-Off2. Sin of No Proof3. Sin of Vagueness4. Sin of Irrelevance5. Sin of Fibbing6. Sin of Lesser of Two Evils

Study by: TerraChoice, December 2007


Role 2: Feed you, Feed me


process




Integrating Internal/External

Internal External

Feed

Feed





Internal• Halal Committee• Social Education

(e.g. SCK)• Umrah trip• China Trip• RBOS• CFA/HFA• Coffee Van

External• Sponsorship• Donations• News clippings• Newspaper Ads• MHI• Awards• Corporate Profile• AGM• Gov. Celebrity• Analyst research





Internal• Entrepreneur Dev.• Health products• Health education• “Made in Malaysia”• Events• Media Celebrity

External• Website• DSAM• Yayasan• Publish Book• Social Education• Crisis Comm• Children Education• National interest• Analyst BD

connections




Role 3: External Communication


process




Communications Integration

Communications

Internal External

Mgmt Distributors

Suppliers



Investors



Employees




Institutional

Fund Managers

Corporations

Sovereign Funds

VCs

NGOs

Non-Profit Org

Financial (Loans)

JV Partners

M&A

Social VCs

Holding Co.

HQ (MNC)

Gov. VCs

Supply Chain

Gov. Partnership

PFI

Competitors





Retail










How do External Parties get their ‘INFO’? (1/2)

Institutional


s

Suppliers

EconomicsAGM

Market Research

Internet*

Annual Report

Media

Analysts

Fund Managers

Due Diligence

NGOs






Institutional


s

Suppliers

EconomicsAGM

Market Research

Internet

Annual Report

Media

Analysts

Fund Managers

Due Diligence

NGOs






Retail

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet*

Annual Report

Media

Analysts

Fund Managers

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Action

s

Newsletter





Retail

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet

Annual Report

Media

Analysts

Fund Managers

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Actions

Newsletter




How not to talk to Retail External Parties

“The holder [of a CAB certificate] may continue to serve regularly any point named herein through the airport last regularly used by the holder to serve such point prior to the effective date of the certificate. Upon compliance with such procedures relating thereto as may be prescribed by the Board, the holder may, in addition to the services hereinabove expressly prescribed, regularly serve a point named herein through any airport convenient thereto.”

Civil Aeronautics Board, 1977


How not to talk to Retail External Parties

“It has been determined not to be in the public interest that United Airlines continue to provide air transportation services between San Diego and San Antonio”

“I forbid United Airlines to fly between San Diego and San Antonio”


What topics interest External Parties?

Acquisition target

Layoffs

CostCutting

New Mgmt

Treatment of ProfitsConsistency

Ecology

Economics

Politics

Strategy Alignment

CSR-related

Crisis

Topics?




What topics interest External Parties?

Acquisition target

Layoffs

CostCutting

New Mgmt

Treatment of ProfitsConsistency

Ecology

Economics

Politics

Strategy Alignment

CSR-related

Crisis

Topics?




What Events impact External Parties?

Politics

Financial Announcements

Shareholdingchanges

Structure

AccidentsEconomic

Crisis

CompetitorMoves

M&A

New Plans

Share-drop

Events?




What Events impact External Parties?

Politics

Financial Announcements

Shareholdingchanges

Structure

AccidentsEconomic

Crisis

CompetitorMoves

M&A

New Plans

Share-drop

Events?




E.g. Long-term relationship building activities

• Durian Party• Wisma Tour• Hampers• Umrah• China Factory Visit• Large Events• Donations to Media• Jakim visit




Role 4: Bad News


process




Challenges of Public Relations

1. Stake- vs. Share-holder*2. Public Opinions3. Global operations –

difficult to explain4. Increasing focus on

ecological, social, ethical issues

5. Diverged expectations for same issue

6. What to do with Excessive Cash?

7. Superficial changes vs. Fundamental Changes

8. Investors depend on ‘hearsay’ vs. ‘facts’

9. Share Price ≠ Market10.R&D/M.S./HR vs.

Investor Expectations11.Opposing ‘Expert’ views




PR Challenges

“Good news for stockholders can be bad news for other

stakeholders.” Gregory Miller, Assoc. Prof., Harvard Business School.




Good News vs. Controllability

Can Control Cannot Control

Internal Attribution

External Attribution


?



Bad News vs. Controllability

Can Control Cannot Control

Internal Attribution

External Attribution




Media Options for Brand Building

Old media, New media and everything in between




COMMUNICATION ARCHITECTURE

BRAND POSITIONING

“Tagline”

KEY SUPPORTING

MESSAGES

KEY MESSAGES SPECIFIC TO

INTERNAL/EXTERNAL SEGMENTS

EMPLOYEES

Image Development

KEY SEGMENTS

TARGET GROUPS

SPECIFIC SEGMENT

KEY MESSAGES

Who am I?

What do I offer?

Support?

End benefit(s)

Tagline:


Touch Points

Candidates/ Employees

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet*

Annual Report

Media

Analysts

Ex-employees

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Action

s

Newsletter


Touch Pointsl

Candidates/ Employees

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet

Annual Report

Media

Analysts

Ex-employees

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Actions

Newsletter


The Right Tools for the Job

Reach of Communication

Qua

lity/

Inte

nsity

of

Com

mun

icat

ion

Personal (exp)

Personal (info)

Impersonal (info)

Individual Mass

Mass Traditional, In-home, Out-Of-Home

Mass Unconventional

Mass Online




Qua

lity/

Inte

nsity

of

Com

mun

icat

ion

Personal (exp)

Personal (info)

Impersonal (info)

Individual Mass

Mass Targeted Conventional

Mass Targeted Online

E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website




Qua

lity/

Inte

nsity

of

Com

mun

icat

ion

Personal (exp)

Personal (info)

Impersonal (info)

Individual Mass

Individual Targeted Conventional

Individual Targeted Online


Contests

One-on-One

Summary




“…in the past 18 months, we have heard that profit is more important than revenue,

quality is more important that profit, people are more important than profit,

customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our

performance is inconsistent"CEO, Anonymous




Don’t forget…

“The business of business is Business, not Public

Relations”






Sergio Zyman



Thank You.

soft copy of slides: http://totallyunrelatedrandomanddebatable.

blogspot.com/

Economy & Finance

The Powerful Role Of PR In Brand Development