Marketing Magazine

CHALLENGES TO MEDICAL TOURISM

bart — Wed, 10 Feb 2010 08:18:49 +0000

GOOD INDICATIONS BUT ROOM FOR IMPROVEMENT
Much has been written about the many benefits and opportunities that medical tourism offers. Those wishing to take advantage of those benefits and opportunities, though, should also be aware of the challenges.

PUBLIC HEALTHCARE SACRIFICED – THE PRICE OF CITIZENSHIP?

Many statesmen the world over believe that healthcare is a fundamental right of all citizens. Among them is former director-general of the Malaysian Ministry of Health, Tan Sri Dr Abdul Khalid Sahan who maintains that, “everyone has a right to receive it irrespective of his or her ability to pay,” adding that the Government is accountable for ensuring that healthcare is made accessible to all citizens.

Keeping with that ideal, Malaysia ’s public healthcare services, while not free for everyone, are said to be heavily subsidised by the Government. With an estimated 10.8 million Malaysians or 40 percent of the population medically insured, there are potentially 16.2 million citizens who will have need of the services of public hospitals which account for about 39,000, or 77 percent, of the total hospital beds in the country.

Then there are healthcare costs that rise continually driven by investments in medical research, development and technology. Global medical cost inflation is estimated to average about 10 percent each year and in Malaysia it is estimated to be above that at about 15 percent per year. If costs continue to rise high and fast it won’t be long before private healthcare ceases to be within the reach of some of the people who make use of it at this time.

CONTROLING THE QUALITY OF PUBLIC HEALTHCARE

Should that happen will private patients go back to government hospitals and if they do will they be turned away or will the subsequently increased workload then affect the speed and quality of those services?

Lured by the more lucrative fees that come from private practice, there is now one doctor to attend to every 1.3 beds in the private sector compared to one doctor for every three beds in the public sector. According to Datuk Dr Jacob Thomas, president of the Association of Private Hospitals of Malaysia government hospitals are already overloaded with patients.

Now add to this situation the transformation of Malaysia into a medical tourism hub. There are many people concerned about how Malaysians may suffer while the rest of the world comes here to heal.

Oxford Business Group Editorial Manager Adam Jones put it well when he said, “the Filipino health sector bears resemblance to that of its educational system in that the private sector maintains several very high-level institutions, while the public sector is faced with a severe lack of funding due to a stretched national budget.” There are many countries in Asia like that.

For Malaysia , the concern isn’t only that beds are being taken away. With only half the over 10,000 vacancies for doctors in government hospitals and clinics filled by June this year, the remaining positions had to be filled by foreign doctors.

MEDICAL INSURANCE THAT TRAVELS

The inability of hospitals in medical-travel destinations to enter the networks of the developed markets’ payors in order to work directly with insurance companies and other health care funders remains a major institutional barrier to growth of the industry.

The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), says that the main barriers to medical tourism includes the nonportability of health insurance under mode 2, of the World Trade Organisation’s (WTO) General Agreement on Trade in Services (GATS) which refers to consumption abroad (CA) ie. travelling abroad, including via health tours, to seek high-technology treatments or cheaper health services.

In October last year Angelis Insurance launched the first cover for treatment carried out outside the UK, available to any UK domicile travelling abroad for procedures.

One month later, Seven Corners launched the first worldwide medical tourism insurance program that reduces travel-related and medical risks associated with patients electing to have surgical procedures abroad.

In September this year PJ Hayman introduced the first international medical insurance cover that pays policyholders for medical costs and other expenses that arise from their elective treatment abroad. The cover, however, is only available to UK nationals.

So while there is some development in this area, development appears limited in many regards, and there is still a large lacuna. Asian insurance companies, working together with government and health service providers, promoting insurance products in the markets which we wish to attract to this area, can help close this gap and accelerate the growth of the industry in this region.

SAFETY AND QUALITY ASSURANCE

Central to this phenomenon of a person interested in putting himself or herself in the care of experts in a faraway country that he or she has probably never visited, is the issue of quality. Given the wide selection of available medical facilities in many different countries, it can be difficult for the medical tourist to identify qualified, experienced physicans and modern hospitals that provide high-quality care, consistently.

A useful point of reference for patients selecting medical facilities outside their home countries may be provided by accreditation from the Joint Commission International (JCI), which has accredited more than 125 facilities in 24 countries, or the International Organization of Standardisation (ISO).

There are a great many accreditation bodies the world over. Among them are the US-based JCI and the Europe-based ISO. The one you select would have to take into consideration the market you are aiming at. A great deal has been said about the number of US travellers who venture abroad for procedures, and yet many countries in this region are hard put to attract them to our shores. If Americans rely on their home-based JCI accreditation as a means of valuing the quality of medical services, this is unsurprising. Malaysia has only three JCI-accredited facilities.

Accreditation itself, though, is of limited value unless potential medical tourists and travellers are aware of the accreditation bodies, are made to understand the value of the accreditation, and are given the means to easily and quickly find and compare the features of different medical institutions certified by their accreditation body of choice.

IMAGE & REPUTATION

Developing countries are believed to be poor and lacking in quality facilities or physicians which leads to skepticism amongst patients. Some countries have specific problems related to their politics and human rights records.

Chong Yoke Har, director of the International Marketing Division of Tourism Malaysia , for example, says the challenges facing Malaysia ’s tourist trade include negative media reports, adverse travel advisories, misconceptions about Malaysia as a Muslim country linked to terrorism, unprecedented pandemics and global issues such as tsunamis, fuel hikes and the economic slowdown.

Another example is India . The country still faces overpopulation, environmental degradation, poverty and ethnic and religious strife; problems that may dissuade some patients from traveling to India to receive healthcare.

CLEAR, DIFFERENTIATING STRATEGY

Secretary General of the National Chambers of Commerce and Industry Malaysia (NCCIM), Datuk Syed Hussien Al-Habshee said the lack of effective marketing strategy was the reason why Malaysia , despite the fact it is a Muslim country, is behind Thailand and Singapore in attracting medical tourists from the Middle East . While Malaysia appears to have the edge in terms of religion, Muslim hospital staff, halal food and other aspects, Middle East tourists prefer to go to Thailand and Singapore . He is right about one thing. All countries wishing to promote medical tourism need to have a clear strategy. Importantly, and this he does not mention, that strategy needs to be relevant to the markets we wish to attract. Perhaps for Middle Eastern medical tourists, there are things far more important to them than Muslim hospital staff, halal food and those other aspects Syed Hussein mentioned. Thailand is universally known as the Mecca of Medical Tourism driven largely by Bumrungrad’s almost thirty years of activities. India , the second largest destination in terms of medical tourist arrivals, is the clear price leader for the region. Singapore ’s infrastructure which is second to none is a strong draw, provided you are willing to pay for it.

Countries like Malaysia need to carefully consider what their strategy is and focus on that. I suggest they begin with deciding who they wish to attract and find out more about the needs and attitudes of those people. Talking to people from the Middle East who have gone to Thailand and Singapore for their treatment or procedures, for example, would be a good place for Malaysia to start. The strategy a country chooses to adopt would likely consider what the country views as its strengths and advantages. While important, this is, nevertheless inward-looking.

Importantly, countries should consider the market they wish to attract, and what their target is travelling to seek: the world’s most advanced technologies, better care than they can find in their home countries, quicker access to medically necessary procedures delayed by long wait times at home, or lower costs for discretionary procedures.

FOLLOW-UP CARE

Many procedures require follow-up treatment or additional operations, which should optimally be performed by the original surgeon. According to McKinsey, “continuity of care is a major consideration for patients suffering from chronic disease, and it’s not clear how well a multinational approach to the delivery of care could address this issue.”

There are many stories of people treated overseas having no follow-up care and suffering complications.With Medical Tourism patients often face difficulty in getting follow-up treatment in their home country after receiving medical treatment abroad. The patient is usually in hospital for a few days, then goes on the vacation portion of the trip, and returns home. In such instances complications, side-effects and post-operative care would then be left to the medical care system in the patients’ home country.

LEGAL ISSUES

As medical travel specialist Galavantor Middle East’s CEO Rose Ann Shetty puts it, “hospitals are answerable to the law in their country.” Because the patient must abide by the medical tourism destination’s law in the event of bad outcomes or complications after treatment, the quality of law as it relates to legal recourse, becomes an issue. Representative Lee Ae-joo of Korea ’s ruling Grand National Party also said at a National Assembly session in November last year, “We have yet to set up a proper legal system for domestic patients. It will be a disaster when an accident happens to a foreigner.”

According to Associate Professor Puteri Nemie Binti Jahn Kassim, from the Ahmad Ibrahim Kulliyyah of Laws at the Islamic University of Malaysia, while “the increased number of foreign patients has opened up possibilities of Malaysian health care providers being subjected to malpractice claims and triggering a myriad of cross-border legal issues… there is no internationally accepted legal framework to regulate medical tourism and issues of legal redress in relation to unsatisfactory provision of treatment across international boundaries.”

NUMEROUS OTHER ISSUES

The issues and challenges facing medical tourism, or opportunities, depending on how one looks at them, are as numerous as they are varied. Some of these include, depending on country:

• Training standards of doctors in medical destination countries

• Language barriers

• Low pay or coverage (insurance)

• Lack of coordination among the various players in the industry like airline operators, hotels, hospitals and professional services consultants

• Awareness among insurance companies to cover overseas surgeries

• Limitations to advertising and promotional activity due to the ministry of health (or other government agency) restrictions

• Lack of consumer or target market insights to allow for marketing and marketing communication activities that are relevant and engaging

• Lack of transparent worldwide data on the quality of health care

Parting Dose

It is obvious that medical tourism offers a whole host of benefits for the many Asian countries jumping on the bandwagon. This is all the more reason for the many different stakeholders to consider all the issues confronting this fledgling industry and work together, not just key players in a market, but across markets in Asia , to support each other. In doing so we can ensure the proper development of a global healthcare industry.

By Jeff Seow

“You mean it actually worked?!”

bart — Fri, 05 Feb 2010 03:29:39 +0000

What a pity ordinary advertising doesn’t offer the same number-crunching gratifications as the advertising created by Direct Marketing specialists. Direct Marketing communications count responses and cash – meaningful measurements of direct return on investment. Forget “impressions” or “share of mind”. Show me the money!..
I must have a perverted sense of joy because one of the most fabulous feelings I have in my world is when a Direct Marketing campaign I’ve done scores impressive results.
(I know exactly what you’re thinking: Get a life, Kurt. I couldn’t agree with you more.)
Great results can mean a number of things, depending on your marketing objectives. Some campaigns are hand-raising exercises, focusing on identifying interested individuals (prospects) who, through a second-round effort, are converted to customers. Or it could be a campaign that simply begins or nurtures a dialog between a customer and a representative for the Brand.
Successfully achieving objectives like those make me all warm and fuzzy; a sort of dove-like cooing feeling. But my delight goes positively mezzo soprano when money gets involved and responses translate directly to sales. What a whooping, wonderful high that is, as the words you’ve written, the images you’ve chosen, the idea you’ve conceptualized and the medium that delivers it all produces profit. Cah-Ching!
And when that happens, I must confess, I am amazed. Thunderstruck. Awed. That’s odd, isn’t it? Here I am, a person who for years has made his livelihood as a specialised ad man, forever questioning the power of his chosen profession.
It’s not that I’m unfamiliar with Direct Marketing success. I’ve successfully sold everything from limited edition fine art to coal processing machines through Direct Marketing campaigns. Jaded incentive managers in five corners of the world enthusiastically responded to a 5-part mailing for a locally-based international hotel. Thousands agreed to sample a nutritional supplement in response to a series of press ads.
I started in this business working for Fingerhut, a humungous mail order giant in the U.S., whose initial claims-to-fame were Air-Flo car seat covers and the now infamous 100% polyester Leisure Suits of the early 70’s. (Your choice of Brown, Blue or Green, though they had much sexier names that, with my gratitude, now escape me.) Along with132-Pc. Home Handyman Tool Kits, Genuine Melamine Dishware, Faux Pearl Jewelry PLUS Accessories, among many others, Fingerhut mailings (and now online catalogues) have been absolute million dollar money-making machines.
And yet, when it all comes together and actually works, I’m flabberghasted. I was amazed when we actually sold luxury cars through a direct mailing for one of our clients. The idea was to encourage (with a generous incentive) current owners of the Brand to recommend others who might buy the car. It worked. I was amazed when a letter I wrote for a fund-raising organisation significantly out-performed their control letter.
I am eagerly (read: nervously) anticipating results for the test mailings we’ve just completed for another non-profit. Will they work, too? Their cause is very deserving, but will those who receive the mailings be so moved that they put pen to paper and actually donate?
As usual, I have my doubts. But that’s a good thing. If I didn’t fully appreciate how impossibly difficult this selling process is, I wouldn’t do what is absolutely necessary to overcome any inherent resistance. I have no doubts about the power of the tools and techniques I’ve acquired over the years. It’s just that I so clearly imagine the expressions, the body language, the breathy inhales and exhales, the unsaid “yeah, right” and well-worn, cynical mindsets of all those on the receiving end of marketing communications and start humming “The Impossible Dream”.
Perhaps my doubts are fortified by all the bad advertising apples out there, because there is a big, bad, stinking barrel of them. How much can a hapless consumer tolerate? Why even bother to sift through this marketing mountain of stench? What’s the number now? The average consumer is bombarded by up to 3,000 ad messages each and every day. How can any of them, much less yours, find its way into the decision-making part of the brain and then – and here’s the kicker – activate your desired response?
It just doesn’t seem possible. But (I’m smiling now) it is possible. I’ve seen the numbers. What a pity ordinary advertising doesn’t offer the same number-crunching gratifications as the advertising created by Direct Marketing specialists. Direct Marketing communications count responses and cash – meaningful measurements of direct return on investment. Forget “impressions” or “share of mind”. Show me the money!
Those numbers are both the beauty and bane of our existence. If we spend RM30,000 of our client’s money on a campaign and the numbers tell us the effort generated only RM15,000 in sales, well, that’s the “bane” part. The beauty, of course, is when sales soar above and well beyond break-even. This happens far more often than I ever think possible. And when it does, I’m in Direct Marketing heaven.
So I will continue to embrace my doubts, and keep a close eye on those hallowed numbers. Because when they add up to a fully orchestrated crescendo of happy notes, they are my pleasant surprise, my Ode to Joy. (I’ll also continue to work on getting a life.)
By Kurt Crocker, Creative Director
Drayton Bird, Crocker & Mano Sdn Bhd (DBC&M)

No More Plastic Cards!

bart — Thu, 04 Feb 2010 03:19:56 +0000

All the financial marketing tactics is that it is becoming increasingly competitive amidst the gloom of the global economy..
Typically, in economics terms, a financial market is a mechanism that allows people to easily buy and sell financial securities (e.g. stocks and bonds) in listed stock exchanges (such as KL Stock Exchange, KLSE). However, Financial Marketing, in my opinion, should not be misconstrued as a punter’s meager exercise to make some small profit by buying low and selling high. For this purpose, I would like to discuss something closer to our hearts (and homes) such as credit cards and loans. These are all financial instruments issued by the many banks in Malaysia and we have seen a slew of advertising and marketing efforts from time to time.

If you were to walk into a bank today, I think there would be easily at any time more than ten types of credit cards being issued by any one bank. I checked out several bank websites at random and with CIMB alone, you have a listing that goes like this: CIMB Classic, Gold, Platinum, World Master Card, Visa Infinite, Platinum Business Master Card, Petronas Master Card, Islamic Master Card, Enrich Master Card, eMaster Card, etc. On reflection, my weekend grocery list pales in comparison.

Now, the eligibility for credit cards application has become easier and easier over the years. For instance, a most basic card line just requires that you provide minimum RM18,000 income per annum once you’ve reached the “adult age” of 21. Supplementary card begins for someone as early as 18. Also, I’ve come across instances where if you are an existing card holder and were to apply for another bank’s credit card, all they take is just photocopies of your existing card and NRIC and within two weeks, your application would be deemed approved! Talk about fast and furious, huh.

Typically, credit card marketing involves two broad spectrums; acquisition, that is recruiting users (which translates to volume sales for the banks) and retention programs (for existing users). In terms of acquisition programs, we see many marketing tactics being employed which have now become almost “everyday news”. For instance, FREE this and that upon instant application and approval, FREE card charges for one to twoyears (sometimes even for Life!) so on and so forth. Since a couple of years ago, some smart financial marketer has also thought of “balance transfer” programs in a bid to recruit existing users of other bank cards to their franchise by providing them an interest-free installment payment should they wish to deflect from their current bank.

Card also comes with most “standard features” these days such as Card Protection where with a minimum of less than RM10 a month, you can be assured of immediate assistance and personalised attention when your wallet or handbag is lost or stolen. Recently, there is also a new marketing tactic from banks which offers a protection plan to ease financial worries of credit cardholders and their families in the case of unexpected family demise! Other features includes Cash Advance, where you can get emergency cash aid when traveling abroad (at a high interest charge), Bill Payment features as well as SMS Balance Enquiry services to help you manage your accounts more effectively. But I think this particular service fails to work for me as each time I would be lured by the most basic marketing lure word that reads “SALE”.

Due to the recent global economic slowdown, consumers have become more careful in terms of their spending. This includes cutting back unnecessary expenses and a tighter monitoring of our credit card swipes. With this in mind, some banks have recently launched a marketing promotion that encourages a consistent number of swipes with a certain value every week and if you can retain that minimum swipe over a month, there is a chance for X% cash rebates and further prizes.

A lot of major banks have also tried to tie up with everyday merchants such as oil and gas companies (Petronas, Shell), hypermarkets (Giant) and the beloved low cost airline, AirAsia. The latter was clinched by Citibank some years back and still continues to appeal to masses driven by AirAsia’s popularity and the privilege for early seat bookings. I have to confess here that this was also the only reason why I decided to sign-up for my second card after many years of keeping to a singular credit card since I’ve been “trained” by my father since young on the principles of good financial tenets!

This year, Citibank Malaysia introduced its Citibank World Privileges on mobile service, which provides its customers with access to all relevant offers and benefits via their mobile phones. This is the first service of its kind in the country and is expected to attract 100,000 users over the next two years.

Recognising that credit card customers often miss out on deals and discounts at different outlets because information is not readily available, Citibank has introduced this new feature that allows customers to know all relevant offers at 40,000 merchant outlets in more than 40 countries via their mobile phones.

‘The spirit of innovation is high at Citibank as customers want things ‘now’ or instantly. “As consumer lifestyles and needs evolve, we create products and services to serve these needs, while providing quality customer experience. By focusing on customer needs, we are able to develop innovative solutions that customers want, and this influences and strengthens their relationship with Citibank,” said Piyush Gupta, Citi country officer and CEO of Citibank Berhad.

With this service, Citibank credit card holders can use their mobile phones to access information related to special offers at 40,000 merchant outlets across more than 40 countries, including over 1,000 outlets in Malaysia. In addition, customers using the mobile service will also be rewarded with exclusive Citibank mobile vouchers from time to time. This service is offered free to all Citibank credit cardholders.

There are also cards specifically targeted to the Islamic segment. Example, HSBC Amanah Malaysia Berhad recently reached more than 50,000 credit cards in circulation. The Islamic Bank achieved this in July 2009, less than a year after the MPower Credit Card-I was introduced to the market. “We are very pleased with this successful achievement within such a short timeframe. We have also registered a strong momentum in credit cards growth and expect to grow further. This is a testament that despite it being new to market, more customers prefer the MPower Credit Card I as its features match their lifestyle and financial requirements”, said Musa Abdul Malek, Executive Director and Chief Executive Office, HSBC Amanah Malaysia.

While acquisition programs are often aggressive, retention programs are also equally competitive. “Smart Privileges” or bonus points redemption on cards is something that cardholders would talk about and compare amongst themselves. Merchant partner tie-ups and acquisition has also become very competitive, ranging from F&B groups, beauty parlors, hotels, fashion, mobile phones, etc. The updates in terms of merchant tie-ups has also become more regular and inserted alongside your monthly bill statements.

The final type of financial marketing that is heavily focused on right now is personal loans. Earlier this year, I received a letter from a reputable foreign bank where “the Citi never sleeps” saying that I have been a “good standing credit customer” and because of that, they were presenting me with a RM10,000 cheque. When I saw the cheque, my eyes almost fell off. I thought I had just struck the lottery.

“All you need to do is just sign your name on the cheque, bank it into any of our branches and the money will be credited immediately into your account”. Finally, I thought that all my charitable acts and prayers to Kwan Yin have been answered!

“Term and conditions apply”. As I read details further, I understood it was nothing short of just being a personal loan. For those of us less familiar with financial products, personal loans are basically as the name described it – loans; and there’s strictly nothing personal about them, other than the amount you’re borrowing. They range from RM500 to RM50,000 for individuals with annual flat percentage rates varying from 10 percent to 25 percent.

My take on all the financial marketing tactics is that it is becoming increasingly competitive amidst the gloom of the global economy and requires more push and efforts to convince consumer spending. While traditional media which include print-ads and TV commercials are still effective, the future battle would very well take place in the E-Zone, i.e. the world of the Internet and utilising popular community sites such as Facebook, MySpace, etc. I am afraid for my personal space again as recently more and more ads are also appearing on my Facebook pages without due consideration from the advertisers.

Right now, for me; I don’t want no more plastic cards…

By Kim Yit

Retaining customer loyalty in a challenging economic climate

bart — Wed, 03 Feb 2010 03:02:36 +0000

With marketing budgets being slashed in the face of the global economic recession, corporations across the world are looking to do more with less. Marketing managers are streamlining their efforts and are increasingly turning to cost-effective and measurable tools to justify their marketing spend.

This overhauling of marketing activities caused by the current economic climate has brought into focus the need for loyal customers, and hence, the role of loyalty programmes in maintaining the commercial health of a business. The current market has created a tremendous need for cost-effective and easy to use loyalty programmes that can help businesses retain their existing customers as well as attract new ones.

Re-designing loyalty programmes:

Recognising that consumers have become extra cautious about where they spend their money and are constantly looking for ways to cut down expenditure, businesses across the globe are looking to re-design their loyalty programmes to offer maximum value for money. The noticeable shift in customer priorities is illustrated by the fact that while many card members have traditionally used points as a way to treat themselves to a bit of luxury, harder economic times have caused them to seek more flexibility and choice in rewards.

Welcome Real-time has loyalty solutions that allow cards payment businesses and retailers to deliver personalized offers and redemption alternatives at the point-of-sale. This real-time targeted marketing capability helps increase cards and retailer brand loyalty and billings, while significantly lowering the cost of customer acquisition and retention. Companies with such well-placed loyalty schemes will come out of the current economic downturn with a significant competitive edge.

Many organizations are also looking at rolling out simplified loyalty programmes that don’t make a huge dent in their marketing budgets. An easier enrolment process, elimination of membership fees, offering relevant instant benefits rather than benefits based on points accumulation and extra benefits for customers joining a programme during a recession, are some of the incentives that can go a long way in ensuring the continued success of loyalty programmes.

Strategies for success:

In order for customers to be able to differentiate and react more positively to a particular loyalty programme as against other programmes being offered by competitors, it is important to employ strategies such as customer behavioral tracking, so that businesses understand their customers as individuals and recognize their specific needs. Leveraged correctly, loyalty programme members can be the key to creating a competitive advantage when financial stability returns. Some quick steps to make this happen include:

Getting to know the customer: It is essential to collect relevant data about customers and have a comprehensive database at hand. These customer details will allow businesses to understand customer behaviour and work toward better serving their needs.

It is also essential to keep communication channels open. In a bad economy especially, keeping in touch with customers helps them feel connected and reminds them of the relevant options available to them.

Maintaining loyalty budgets: Loyalty marketing offers the benefit of it being a measurable marketing effort. This makes it easy to justify loyalty budgets as compared to expenditure on other mass-marketing efforts. Successfully implemented loyalty programmes help maximize existing customers and bring in new customers.

Encouraging partnerships: Shared loyalty programmes are a trend that is seeing increased adoption. Companies are realizing that in a shared programme, upfront investment is low and they have access to a much larger customer database. Engaging more partners helps increase the programme’s value.

Innovation in loyalty solutions:

Loyal customers are a company’s most valuable asset and to increase their numbers, companies need to take good care of them. Continued innovation in loyalty programmes is essential to an enhanced customer experience. The next generation loyalty offerings will present advantages like:

Targeted rewards that customers prefer: Card issuers and retailers will be able to track and analyze customer buying behaviors and other information to deliver more intelligent, targeted rewards in real time at point of sale. Intelligent rewards eliminate promotional waste by delivering the right offer to the right customer at the right time, ultimately driving higher levels of customer satisfaction and increased purchases.

Lowered marketing costs: Delivering targeted, personalized promotions at the point of sale via merchants reduces operational costs and achieves greater results as compared to more traditional methods of marketing promotions to a broad audience via direct mail or other mass advertising.

Simplicity in participation: Customers can now select any payment card to automatically enroll in and participate in a promotion or loyalty programme. Customers may also opt to use a particular issuer’s card that is offering additional differentiated benefits. Retailer’s perception of the value brought by card issuers and acquirers to such payment transactions is increased.

Enhanced loyalty: Customers can now use the point of sale as a channel for real-time earning of points and other stored value, as well as real-time redemption. This capability complements and greatly enhances traditional bank and retailer loyalty programmes.

As the leading global loyalty solutions provider in the payment integrated value-added service space, Welcome Real-time (Welcome) recognises the changing needs of the customers and is helping issuers and retailers across the globe manage and enhance the rate of their returning customers. Welcome is offering unique business solutions that help simplify the process and allow cost cuts with its Welcome XLS solution. This technology-independent solution allows for any type of (payment) card to receive rewards at any point of acceptance. This flexibility will easily meet fast-evolving retailers’ needs such as those related to mobile and internet based payment platforms.

Such solutions are being used by banks to offer points and cash back schemes as well as promotional offers to their cardholders. The rewards are electronically stored and can be redeemed in real-time avoiding processes and cost of regular loyalty programmes.

Although customer-friendly technological innovations and loyalty schemes have made it easier for businesses to recognize the relevance of loyalty programmes, misconceptions about their implementation still exist. Some people still think that maintaining relationships with thousands of customers is a cumbersome process that can only be undertaken by big businesses that have the resources to do so.

However, the fact is that regardless of size, any business can establish a relationship with its customers, communicate with them on a regular basis, and offer relevant rewards/incentives each time they make a purchase, while maintaining a comprehensive record of all this activity.

By Sebastien Slim, VP Product Marketing,
Welcome Real-time: www.welcome-rt.com

Food for Thought: An Investigation into the Future of Food in Asia

bart — Wed, 16 Dec 2009 06:17:14 +0000

Through time, Asian countries have had signification exposure to international and regional influences of culture and customs. Though by and large, Asians remain loyal to their traditional recipes, shifts in lifestyle, inter-regional and intra-regional migration, economic uncertainty and the ever evolving world of food science is impacting the what, when and how Thais are eating and drinking.

Lowe Counsel, Lowe’s global strategic insights and innovation consultancy, has partnered with Lowe offices across Asia to undertake a comprehensive regional investigation into the future of food. Entitled ‘FOOD FOR THOUGHT’ the report covers emerging mainstream behavior and attitudes to food and drink across Malaysia, Thailand, China, Indonesia, Vietnam and Philippines.

The rich and numerous strategic insights that the report contains have been gathered via the Lowe Counsel network of over 300 Thought Leaders across the region. CEO’s of food companies, renowned chefs, food writers, nutritionists, social trend watchers and journalists and restaurant owners all contributed to this report. It is designed to help Lowe and its clients understand how best to prepare and plan in this ever-evolving market.

Fading Impact of Recession

Post a dip in lavish eating out and partying, food consumption is racing towards normalcy. There is no perceptible erosion in values placed on having a good meal. Food remains a highly emotional space for most Asians, and is in fact one of the last things to be affected with financial downturn.

Functional Foods on the Rise

With the increasing application of science to food processing, the ability of food manufacturers to offer products with highly functional benefits is constantly improving, making it possible to create brands that rely on fairly specialized functional claims. The interesting trend is that Asia now leads the world in the development and adoption of advanced scientific foods to enhance nutrition, beauty and performance. It is expected that this category will continue to grow as people look to food to provide a way of boosting and maintaining health, beauty and well-being.

The quest for youth, good looks, well-being and good health - all tangible and functional benefits are opening up opportunities for some food companies to produce products and brands which directly offer up these benefits.

Also, within the Food Study, we have evidence of other Functional Foods coming to the fore. For example different thought leaders cited the emergence of ‘Value added beverages’ which have added nutrients, aroma, minerals etc. Here is another quote from one of our panelists:
“Food supplement or nutritional supplement is increasingly getting popular. I see an interesting & smart promotion from Squeeze – “Flu Fighter” where they add vitamin C shot to a regular fruit smoothie. Leveraging health trend and H1N1 pandemic have been cleverly used as a marketing opportunity by Tipco here.” (R&D, Pizza Quick Service Restaurant, Bangkok).

Meaningful Convenience is the New Mantra

As people find themselves increasingly time-pressured, they will seek out and embrace quick, healthy and convenience food, and not necessarily fast food. This is evident from the sharp rise of traditional cuisines being available in ‘Ready-to-heat and eat’ format. However, looking ahead, Lowe Counsel’s research suggests that there will be a growing concern about nutritional content and decline of authenticity and taste, even resulting in a backlash against the erosion of values surrounding fresh flavors and authentic taste.

Food as a Lifestyle Experience

As consumer choice and eating power grows so does the more lifestyle oriented food products and eating destinations. Experiential eating lends credence to the adage about ‘living to eat’. With the gradual decline of home cooking, the yearning for freshly cooked familiar local favorites in a open kitchen ambience will increase. Within these environs there will be some experimentation with fusion food, but the latter’s appeal will remain confined to those seeking gastronomic adventure and fun. The ‘theatre of the live kitchen’ is also fuelled by a greater concern for the hygiene and safety of the cooking, as the alternative of street food leaves much to be desired in terms of hygiene.

In terms of implications, there are several. Those Food manufacturers who see themselves in the ‘Experience’ game, clearly need to build strong brands around ‘emotive’ appeals and those who see themselves in the ‘Functional’ segment, clearly need to re-evaluate their R&D budgets to ensure that they are going to be adding nutrients that is feeding the next big wave of needs in the market.

Back to Nature

There is a growing awareness of the benefits of simple eating simple, natural food, without additives, fertilizers and pesticides. However, while people acknowledge the positive sides of organic, pesticides free produce, there is some degree of confusion and lack of awareness of existing labeling of products and the obvious premium prices consumers need to pay for something organic. Moreover, there is no obvious way to tell if some produce is pesticide free is also fertilizer free. Governments have a big job to do, when it comes to regulating the literature and labeling around this issue.

Malaysian Highlights

Diverse Flavours but Nervous Experimenters

Summarizing the key trends in Malaysia, having conducted the Malaysian leg of ‘Food for Thought’, Strategic Planning Director – Anirban Ganguly is of the view that Malaysians are proud of their diverse cuisine but are very nervous experimenters’. The general trend is to stay within the broad range of Malay, Chinese and Indian cuisine; however there are pockets of Fusion food and Organic Food that are slowly gaining a wider appeal.

Although there has been an increase of choice in the Malaysian cuisine world, most people still tend to stick to the traditional staple diet regimen, and there is a current trend to relook and revisit the traditional “Kampung” cuisine and “Hawker” dishes and contemporize them; in some cases even export them as international cuisine.

Healthy Eating gradually becoming a priority

There is an increase in the awareness of “healthy” food and the importance of nutrition, the most noticeable change in the last few years is how Malaysians are having their breakfast, more of cereals and brown bread have now entered the Malaysian homes than ever before.

Based on the analysis of the thought leaders of the Market, Anirban Ganguly adds- “Although the issue of health and well being continues to be an area that has high awareness, the actual translation into action is not very promising. Malaysians continue to indulge and as a result ‘obesity’ today is on the rise, also an area of concern is heart ailments and hyper-tension.” However, overall there is an increasing enthusiasm today for leading a healthy life. With a change of diets as a first step and more emphasis on fitness and gyms.

Modern Kopitiams making a come back

Although time is a scarce commodity today, when it comes to food the Malaysians still like to take time to have their food, be it a quick snack or lunch or a lavish dinner, and there has been a rise of the modern Kopitiams serving delicious traditional food at value for money prices along with the recent rise of western ‘junk’ food for the ‘yuppie’ population.

Luxury & Premium seen more as hype

Highly priced, Exotic Ingredients (largely imported), 5 Star or Boutique ambience and exquisite presentation, unheard of names etc. continue to be the parameters of Luxury food. There is also a view that in the era of globalization ‘luxury’ foods have now become commonplace and is more a marketing ploy than anything else! The dichotomy is often food brands like “Starbucks” or “Coffee bean” which are looked upon a luxury brands because of the brand image.

Thailand Highlights

The Disappearing Family Meal Occasion becoming more apparent

Physical and Temporal distances between family members is fuelling and accelerating this trend. At a deeper level, this is symptomatic of an erosion of ‘family-proximity’ culture urban Thailand. The implication for Marketers is that they can leverage this insight to create brand experiences that evoke the sense of ‘family feeling’ and indeed help give a new meaning to family unions over meals.

Indian Flavours going popular

Fuelled by success at the Movie Box Office, Indian pop culture and food is gaining acceptance amongst Thais - which explains the appearance of the humble samosa and not-so-humble tikkas in the frozen section of hypermarkets. The cuisine will gradually start to peak in popularity before losing its reputation of being ‘special’ and becoming more mass. One leading hotelier, who keeps tabs on the rising interest in Indian cuisine in Bangkok, opined that Indian food will gradually lose its ‘specialty’ cache with its wider availability.

Home Cooking gets a new lease of life

Home cooking has two new ingredients: ‘Ready-to-cook’ and ‘Ready to Heat’. Thanks to food science, Thais are discovering the joys of tucking into their all-time favorites by simply buying the branded and packaged versions. The implication of this will be a longer-term quest to balance this trend with nutrition and freshness. But in the meantime, there will be a profusion of branded seasoning products, semi-cooked meals, and frozen foods.

Redefinition of Luxury Food

Luxury is getting re-defined with the new drivers seem to be revolving around the ideas of ‘rarity’ and ‘provenance’ The dishes which deliver the best and most authentic original flavors (eg.Norwegian Salmon) and are served with the least amount of processing are acquiring the status of Luxury Eating. In a city like Bangkok – notorious for its rapid rise and fall of fads, true luxury seems to be progressing towards genuinely pricey experiences.

In Summary

Overall, the 300 Asia-based Thought Leaders who have contributed towards ‘Food for Thought’ across six Asian Markets have brought a completely new level of richness to the understanding of the dynamics of food culture, and as the title of the study suggests – providing new food for thought, as we develop fresh strategic branding and communication solutions in the face of emergent challenges to all the food related businesses and categories.

Here is a sampling of implications that can be inferred from our findings:

To touch upon a specific upcoming trend of Experiential Dining, some rules and codes of the entertainment industry may be possible to apply. More inner-directed, emotive motivations may be necessary to tap to build appeal with consumers. In this regard ,one of Lowe’s Strategic Planning Tool helps us understand the realm of ‘Inner Directed Emotive Motivations’ - which are related to the entire spectrum of human motivations that upon being fulfilled helps build an affinity or an emotional connection with the brand. For instance, we know that all motivations are broadly subsumed under 16 broad universal human motivations of which several are strongly inner directed, such as:

- Social Standing: the desire for social status, prestige
- Curiosity: the desire to explore and learn and experience something new and unique

IS THIS THE END OF AGENCIES- OR A NEW BEGINNING?

bart — Tue, 15 Dec 2009 08:47:55 +0000

This week saw two big stories, both initially contradictory, but both showing the role of the agency is changing significantly.

Is this the end of agencies? Unilever just completed its first ‘crowdsourcing’ pitch, replacing its agency of 15 years, Lowe – with an ‘online contest’ for Peperami. This was a brand that the agency had made some iconic advertising for over many years. Yet, through crowdsourcing, the company was able to have 1,185 ideas for the $15,000 on offer for first place. The cost of a creative idea now? $12.65.

Ironically, the winners were advertising specialists five over fifty years of experience between them. Matt Burgess, the MD of the unit managing Peperami was quite sanguine about it – “We felt we could get … even better content by opening up the brief to more people than we would typically get from an agency or agency team,” As one critic said, “Crowdsourcing is here to stay, but expect both parties to it to begin to cast a colder, more businesslike eye at the other.”

You can read the announcement here
http://adage.com/globalnews/article?article_id=138978
And you can see more about the winners here
http://adage.com/globalnews/article?article_id=140712

Isolated case? Not actually – Crispin Porter recently leveraged crowds for Brammo , a new motorcycle launch. HP offered no less than $300,000 for a web video for its “You on You”project. And Microsoft did something similar for Windows 7.

Or a New Beginning? In the same breath in another take, agencies were being heralded as business developers and creators. BBH London (who else but?) has started a product design firm, Zag , bringing its own consumer goods to market. Recent entries include fashion for dogs, with Elle McPherson’s labradoodle as Spokesdog , and a protective alarm for women. The insight here is in fact the insight – agencies spend their lives connected to consumers digging for insights and ideas – this is proving a productive way to use them. Another UK agency , Erasmus has launched a new energy drink with Coca-Cola , called Relentless – said to be the soft drink’s company’s most successful launch ever.

You can read more about this here -http://www.time.com/time/magazine/article/0,9171,1940547,00.html

What can we learn from all this?

1. There’s never been a more important time to be closer to consumers - and with the trends in social media, consumers are talking more about brands and opportunities than at any time in history. Most of the top digital agencies we’ve met have set up proprietary listening capabilities to drive insights.

2. Crowdsourcing is a delivery, not a deathknell. There’s nothing new about seeking feedback and input from consumers in the communications development process. We’re now seeing clients and agencies using their listening tools to actually define briefs, tone of voice and keywords – imagine finally being able to market a new brand or solution baked in with the nomenclature of the end user. It can only lead to more effective messaging.

3. The best agencies have diversified already - full service is not longer enough. Some agencies have started R&D centres to test out new theories. More and more are employing ethnographic researchers to dig deeper, many are already using crowdsourcing to seek new ideas. For example, HoopChina is the third largest bbs group in China, tapping into the popularity and excitement of the NBA , and using consumers to shape new products and initiatives for the top sports brands and their agencies.

4. Show me the money. All these ideas are migrating agencies away from commission based and input based relationships to output and outcome based partnerships. For some marketers, the cost of an idea might be $12.65 – but as BBH and other agencies are showing, the rules can be changed to significantly impact on perception, revenue and results

Greg Paull is Principal of R3 (www.rthree.com). R3 is a global marketing consultancy with our heart in Asia. We focus on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world’s top twenty global marketers

MARKETING MAGAZINE TURNS SILVER

bart — Mon, 14 Dec 2009 08:37:58 +0000

Marketing Magazine is proud to share good news of our recent Silver honour. We have clinched the Silver Award in the English Current Affairs/Business category at the 2009 Magazine Publisher’s Association (MPA) Awards.

Our circulation figure has a total print-run of 11,000 copies per issue with an estimated readership of over 35, 000. The readership comprises of professionals in the marketing fraternity, mainly across the Klang Valley, top brand custodians, to SMIs and SMEs and management students.

There has been a record of 108 entries in this year’s MPA Awards across five categories including Women’s, Lifestyle, General, Entertainment and Niche, with winners of Gold, Silver and Bronze awarded in three language categories of Bahasa Malaysia, English and Chinese.

First organised in 2007, the annual awards honours the best magazine covers in the country. It sets the benchmark against editors, designers and creative directors to prove themselves. MPA is a representative body for the magazine industry in this country

2009: Marketers engage the power of young consumers

bart — Sun, 13 Dec 2009 02:18:46 +0000

2009 was a year where marketers went all out to win the hearts of young consumers. Digital media. UGC campaigns. Reality TV shows. Ads on nasi lemak packets. They tried everything! And the year went by just like that, leaving us with the question – what worked?

Some of the campaigns which worked very well involved the young consumers themselves in their campaigns. I was fortunate enough to work with some brands and agencies of some of these campaigns, and will share a few examples with you:

A NEW YEAR, A NEW IDEA

January began with 20 brands, agencies, 30 youth communities, and 400 youth volunteers to produce Malaysia’s Largest Youth Festival, YOUTH’09. But in an age of screen-bound youths… what would get thousands of youth to get off their seats?

To do things differently from last year’s festival, a marketing plan involving incentives for online friend invites, youth community partnerships, and guerilla flyering was rolled out.

The result? A fully youth powered marketing campaign which brought together a crowd of 36,720 youths for 3 days of engagement in PWTC. The crowd of youths didn’t come for Siti or Mawi or Beyonce. The youths came to together for each other. And many of the brands involved in producing the festival were more than happy with the unique, live engagement and interaction with the youths.

Immediately after the festival, some of the brands wanted to use this power in their own youth campaigns…

STUDENT POWERED CAMPAIGNS

One telco decided to involve youths in the marketing of a concert they were sponsoring. They started with an idea for a traditional campus road show for 10 campuses. But once they involved the youths, it became much more than that:

• Advertising on flyers and posters were replaced by student wearing T-shirts.
• Road show promoters were replaced by the coolest kids in the campus.
• Performers were replaced by 80 students team performances vying to win red carpet treatment at the concert.
• The campaign microsite was replaced by an online video contest with 79 entries and 13,902 votes.

For a two week campus activation, the involvement of students themselves made all the difference.

This led my team at Youth Asia to invest 3 months of work to allow more brands, agencies, and campaigns to involve students in their campaigns. We built a network of 50 of the largest campuses, reaching 410,000 students, consisting of a calendar of student events open for sponsorship, a timetable for brands to enter campuses, and a ready network of student ambassadors.

Agencies leapt onto this immediately. One handpicked a few student-organized events (including crazy Halloween parties) as part of an integrated brand campaign.

Co-incidentally, this integrated campaign also had a huge focus on digital. And if a campaign needs to get youth involved, digital is a great place to get started…

YOUTH POWERED ONLINE ENGAGEMENT

One element of this particular campaign was a very popular song. Youths can remix the song via an online mixer, and share it with the world. Different partners were roped in to get the remixer out. Usually, one set of communications would be given to all partners, but not in this case. YouthSays.com was asked to customize the communication and the mechanics of the song remixer to make it engaging for the 180,000 young Malaysians.

And it paid off. In the first 5 days of YouthSays.com promotion, the song had over 2,000 remixes. And by the end of the 2 week promotion, 5,500 remixes were uploaded, accounting for 85% of total remixes received by the total campaign. It helps that YouthSays.com has a community of 180,000 young Malaysians who choose to be involved in projects and campaigns, but you still need the right messaging and incentives.

The same sort of custom messaging and partnership model to get youths involved was replicated for the Youth Engagement Summit 2009.

Sure, the summit brought together icons like the cofounder of Twitter, Garry Kasparov, Donald Trump, Datuk Tony Fernandes, trade ministers from China and India live in KL.

However, the challenge was to bring the voice of the youth of Southeast Asia to the summit as well. We wanted to compile a public report to show these leaders… what change do youths want to see?

So we shot a survey out, giving away a chance to win free trips to the summit in return. My team at Youth Asia contacted 120 partners in Southeast Asia, including the largest universities and online communities. Instead of giving them one message to spread, we worked alongside them, and ran multiple custom campaigns with these partners, targeting different audiences. It was a lot of work, but in the end we collected 105,502 stories in 6 weeks, and produced a report to tell the world

• What change do youths want to see in their personal lives – right now?
• What change do youths want to see in their community and country by 2015?
• What change campaigns of ideas would they support?

If you want a copy of this report, just drop me an email at khailee@youthasia.com. It’s truly inspiring to see youths across the region come together and spread the word to produce a report like this.

All in all, 2009 was a thrilling year for me. When innovative brands and agencies engage youths and partner communities from all over, it reminds me that anything is possible.

WHAT’S NEXT IN 2010

What new campaigns will shape our thoughts? What new moves will change the competitive landscape? Will there be more ads on nasi lemak packs? I can only guess.

As for me, I have my chips on the Malay youth segment. 2010 will see new channels to involve the Malay youth segment. YOUTH’10 is slated for the mid year, to be a youth festival of twice the size and impact. We are now inviting brand partners to shape that experience. We’ve also doubled our team-size to keep up, bringing on brains from both brand and agency to continuously bridge the gap between communities of youths and the brands who seek to engage them.

2009 has taught us a lot about engaging today’s consumers in our marketing, and I look forward to working with brands across industries who believe in powerful ideas to engage the power of young consumers.

Khailee Ng is the Executive Director of Youth Asia.
Youth Asia is a youth powered organization which connects brands, business leaders, governments and the media with youth.
Representing the largest student organizations, youth communities, and influencer networks, Youth Asia also owns its own online opinion and research community, YouthSays.com with a member base of over 240,000 youths in the region.
Youth Asia has led and executed over 250 youth research projects, nationwide marketing campaigns, and the nation’s largest Youth Festivals.

Khailee can be contacted at khailee@youthasia.com

The Amazonian Ghost

bart — Sat, 12 Dec 2009 02:13:06 +0000

In the movie Ghost, with Patrick Swayze and Demi Moore, we see the spectral Swayze trying to reach his real world lover, by the power of the mind. He had some instruction on this matter by another cranky ghost, in the subway.

This is not totally unlike the problem that the modern self-service retailer faces. First, just like the Swayze ghost and his love, Moore, the retailer (the ghost) effectively inhabits a different world than his beloved, the shopper. Here, I will provide some down to earth, uncranky assistance to retailers seeking to bridge their own gap.

First of all, let’s acknowledge that the gap is real. It is a gap in communication, largely broken 100 years ago when much retailing became self-service. Self-service, of course, limited the amount of personal communication that could occur between the retailer and the shopper. The exact form of personal selling that was common 100 years ago is unlikely to ever become a huge component of self-service retailing again.

However, in the past few years, another form of retailing has arisen that recaptures many of the original personal selling features, and we can learn from this something of how “personal” selling can be returned to self-service retailing, without all of the real-world staff that that might conjure. Just as with Patrick Swayze, the real adjustment that opens communication between the two worlds of retailer and shopper is an adjustment between the ears of the retailer. So we begin with a renewed understanding of how to SELL to someone you cannot physically reach.

We must take our learning here from the world of online retailing, the Amazonian Ghost. The metaphor is apt, because, like Swayze, the online merchant cannot be physically present with the shopper. And yet Amazon, and other online merchants, sell aggressively, their wraith-like avatars doing the work for them!

First of all, as soon as you arrive at Amazon, their goal is to get you to the book or merchandise that you may be seeking, as quickly as possible. It is a fact that the abandoned shopping cart is the bane of online selling. Notice the “one click” option, and overnight delivery - speedy checkout - in the upper right hand corner. Amazon is ready to consummate the sale immediately, and at all times. Every personal salesman in the world knows that the longer a shopper takes to make up their mind, the more likely they are to decide to not buy.

Assuming you were looking for a book, as soon as you arrive at any book page, Amazon tells you what else people frequently buy with this book, and, further down the page they will tell how this specific book ranks in comparison to all the other 50 million books they sell, and more specifically, how it ranks compared to the other books in its category. Of course there are book reviews as well.

What is going on here is that the “salesman” avatar at Amazon is doing all they can to close a sale. First, responding to your expressed interest (a search that brought you to this page,) and secondly, seeking to reassure you about your choice by telling you that most people who visit this page buy this book. But at the same time they are going for the close (”One Click” - close early and close often), they are teeing up alternates in case, they can sell you two books here, or maybe close on an alternate if you reject this one.

All the rankings and reviews play two crucial roles that are intertwined:
• To get you to the close
• To drill into your mind for post close, that you made the right decision.

This second role is often overlooked in selling, although it is inseparable from the first. Buyer’s remorse does not just occur because of poor product performance after delivery. It also occurs because advertisers and sellers (retailers) fail to adequately reassure customers that, “You made the right choice. Given all the options out there, you made a smart selection.” Even if there are flaws - everything has flaws, that’s life - YOU are one step ahead of the game!

Now, Mr. Retailer (or brand supplier,) let’s see if we can “borrow” the Amazon avatar to help us SELL in the aisle of a bricks-and-mortar store.

So here you are, hovering like a ghost over an aisle, as a shopper turns into the aisle. This is her first “click” (Amazon, remember?) giving you a clue as to just what you might be able to sell her. Although this doesn’t have quite the specificity of the individual book that the Amazonian avatar gets for starters, it’s close enough for you to start making a single intelligent offer. Remember, this is about YOU selling, not passively standing by to see what she will buy.

Hmmm! So just what should you sell, of the thousands of products in this aisle? “Amazon” will check to see what most other shoppers have purchased in this aisle. It’s in your transaction logs. The number one item sold in this aisle is _____! Tell them what it is. Simple statistics tells you what the crowd buys most of, is what you are most likely to SELL to an individual. So, if you are going to sell something to this shopper, your best bet is a Top Seller for this aisle, for this category, for this brand, etc.

Remember, even though you are the Amazonian Ghost lurking above the aisle, you can make your presence felt by putting those “Top Seller” or “Shoppers’ No. 1 Choice” notices on the few appropriate items in the aisle.

Continuing our Amazonification discussion - we think, but what if she doesn’t want to buy what the crowd is purchasing? No problem, you, like Amazon, have thoughtfully provided many alternatives - the long tail. The shopper will be reassured in her purchase from the long tail because she has consciously rejected the crowd’s choice and expressed her individuality by selecting from the rest of the options. Remember, the long tail attracts shoppers to the store, but it can also provide reassurance to shoppers who reject, and some level of purchases from those who reject the big head. So all are not only aided by your selling to them, but are reassured they got what was best for them, whether they bought the big head or the long tail.

You can read more views by Dr Sorensen and purchase his latest book Inside the Mind of the Shopper: The Science of Retailing by visiting http://insidethemindoftheshopper.com/

Internal Communication as a key Instrument of Change

bart — Fri, 11 Dec 2009 02:07:42 +0000

An interview with Indira Nair, Senior General Manager, Communications, Malaysia Airlines

Picture this. You are a successful professional in the world of communications. You are respected. You have “cracked the code” - the code to success in your industry. Life is looking pretty good. And then, you meet a man. You decide to jump ship. It’s a flying ship. It’s Malaysia Airlines. Add one “minor” detail. Cash fuels this ship. The company has enough cash to keep it airborne for just three more months, with no safety net. The Prime Minister has firmly declared, “No more than bailouts.” You take on the role of leading the charge on communications and you hit the ground running. Your name is Indira Nair.

I first met Indira some three years ago at her Malaysia Airlines office in Subang. I recall observing her calm, softly spoken, humble yet confident persona. She speaks slowly, thoughtfully and intelligently. Indira has a presence about her. When she speaks, people listen. Since that meeting, Indira’s name has come up from time to time in conversation with people in the industry. Based on the snippets of information that I picked up, I could see that Indira was a respected and well-liked figure in the advertising fraternity. And since I first met Indira, Malaysia Airlines has undergone a major turnaround. This is the story of how Indira has been a major change agent within the airline.

The MAS slogan was “Going Beyond Expectations.” MAS ads were doing a great job of building expectations. And cabin crew were winning awards. But there was a disconnect between the advertised brand promise and what was being delivered by most of the rest of the organisation. As a passenger of MAS, I was always impressed by the cabin crew. However, the story at my other key touch point with the airline - check-in – was inconsistent. Depending on who the checking person was, it might be friendly and fast one time and transactional and slow another time… Indira and her senior MAS management team had their work cut out for them. The brand promise of “Going Beyond Expectations” set too high an expectation. When the customer experience does not match the expectations that have been set, customers become dissatisfied. It was time to re-brand.

And so, “MH” - Malaysian Hospitality - was born.

Filling the information vacuum

Indira joined MAS in February 2006. The fuse had been lit, and the “no cash, no bailout time-bomb” was going to explode in three short months. Levels of trust in the organisation were low. “There was an information vacuum in the company. This was being fuelled by rumours and gossip. Employees would open the newspapers to find out what was happening,” said Indira. She saw an urgent need to fill the vacuum. The only problem was that the tools and infrastructure for effective internal communication were not in place. “There were printed newsletters, no intranet and a static e-mail system. I thought to myself, ‘where do I start?’ it was daunting,” she said. So, Indira started at the very beginning. “It was a matter of rolling up our sleeves and getting down to basics. The first objective was to kick-start the communications channels and to get them out into the organisation,” she said.

Internal communications has a target audience - employees. The first step was to
understand her audience. “I needed to understand the workforce – how they got information, where from and what they believe,” she said. She did this by using some ageless technology – she spoke to people, starting with her team. “People in MAS have been with the airline for a long time, and have a strong affinity to the brand,” she said. She found that people were more than willing to talk.

Indira and her team worked at a grueling pace. Within two weeks of her joining the airline, Idris Jala announced the turnaround plan. A 47-page document outlining the Business Turnaround Plan (BTP), in both English and Bahasa, was distributed to every one of the 20,000 plus employees in the organisation.

Filling the vacuum

A variety of communications channels were developed. Bulletin boards were placed in 12 “hotspots” around the company. Information was disseminated, printed and put up on the boards. The intranet quickly went up. There was a competition to name the intranet. Idris announced the winner at the same town hall that launched the Business Turnaround Plan.. Berita, the MAS newsletter was refreshed and reformatted to provide information in a fresh, readable format. Indira unblocked the organisation’s information arteries. Company announcements were communicated and cascaded to Board members, employees and on to the media swiftly and with military precision. The standard procedure was for the announcement to go to the Board, and 10 minutes later to employees. The media would get the same information 10 minutes later. This was referred to as the “the +10+10+10 process.” Cascade packs were developed for major presentations by Idris. This might include video footage and PowerPoint presentations with speaker notes. All of these were supported by weekly circulars from the CEO.

The information vacuum was being filled. Gossip was being replaced by fact. Trust was being rebuilt and the employees were starting to get galvanized. Indira said, “The reaction among employees was, ‘wow’, management is being open!” A key driver behind with this was speed and extensive internal communication.

There were comments of discomfort among the management team about the newfound openness of the communication. “They asked, ‘Should we say that?’’” said Indira. “I said, ‘Why not?’ The media will now quote the true source of information rather than just rumours. Idris said that as long as we do not violate any Bursa rules, it was okay to share information with employees. if you keep information from the Board or from employees, they will get worried. We were rebuilding trust.”

“So, the early stages were about a simple internal communications. It was structured and logical. With the +10+10+10 process, we could not miss anything. It was systematic,” she said matter of factly. Listening to Indira, it all sounded logical enough. What was incredible was the quality of the thinking and the speed of execution. Indira gave some insights into what was happening within her team. “They were shell-shocked at the speed at which things were happening. I would write something in five minutes and out it would go. My team executed the plan. We couldn’t be too analytical. We didn’t have time. We all had to hit the ground running,” she said.

Keep it simple, make it fun

As the saying goes, “Sell, don’t tell.” A key objective of the change process was to get employees back on board – to fire them up them around a common cause. Indira and her team did this by involving employees in the communication process and by adding generous doses of fun.

MH Pulse, the MAS Intranet site, has become a “happening place” on the internal communications landscape. “When we started, we got 300 hits a week. We now get 20,000 hits from employees every month.” Indira’s team drives traffic to Pulse by making it interesting with photos, on-line alerts and contests. Pulse is now an accepted tool where people can find information and updates. “It’s not your policy location. We often run MH Pulse Polls where we ask for employee opinions on issues. We get 800 to 1000 responses.” When I commenced this interview, I thought that I was going to be speaking to Indira Nair, a very clever internal communications expert. By this point, I realized that I was talking to a highly effective change agent who achieved results by focusing on the fundamentals.

Visual symbols and reminders are an integral part of any change process. Once again, Indira went for the jugular vein of simplicity. “We gave out MH button badges at the town hall talk – we weren’t sure if employees would use them. Employees, including cabin crew, proudly wore them”. A rolling series of posters was developed. They were to be seen everywhere around the organisation. The messages on the posters came from employees. “We had polls such as, “What do you think MH stands for?” she explained. The responses were simple. And so were the messages on the posters. Simple, but powerful. For example, one poster said, “Smile! Treat people with respect!” It’s not rocket science, but it gets the right message across in a way that connects with employees.

You will learn in any course on Marketing 101 that it’s important to stay in touch with your customers, to engage your them, to connect with them and to give them what they want. Indi’s customers are MAS’s 20,000 employees. She applied the fundamentals of Marketing 101 and got them to shape their own messages. And, in doing so, she sold an idea to them in a powerful way. The core idea revolved around MH – Malaysian Hospitality - and what it means. TMI works on the “3 by 3 Rule. That is, to get a message across effectively, we have to communicate it at least 3 times in 3 different ways. Indi’s team are communication grandmasters who used a multiple of the 3 by 3 rule.

Getting Communication Down into the Organisation

Many things happen at the top of the organisation that do not filter down into the ranks. Indi was instrumental in setting up a team of champions that now numbers 180 employees in Malaysia and overseas. This is the team of MH Juaras – champions – who play the role of change agents within their own sections of the organisation. “We asked for influencers among middle managers. They would be people who peers who would listen to who had drive and leadership capability.” Title was not important. The MH Juaras went to an initial 2 day workshop where they planned a program on what they would do to engage their team members, keep the communication flowing and to get projects up and running. The real challenge for them was to make MH come alive. All change processes involve projects. And, yes, being a MH Juara means extra work on top of normal work loads. It was important to keep this group energised. They met every quarter with the CEO to give him feedback. During this process, Idris would share with the group the company’s business plan. Once again, this is a simple, yet powerful strategy. Employees want to make a difference. However, being human, they want to feel that their efforts are being noticed. There is no better way of achieving this than to arrange quarterly get togethers with the CEO. And there were little rewards at the end of the year. .Nothing big, but rather, a gesture of “thank you for going the extra mile” Reward and recognition is more systemized now. Rather than have MH Juaras feel that they have an extra job, their additional duties and performance are now built into their KPIs.

As might be expected, there were different levels of support for the MH Juaras among their bosses. Each MH Juara had a buddy in the Communications Division. “If we had feedback that they needed support or that information had not been cascaded, we made a supportive call to the relevant boss. We would say something along the lines of, “We hear that employees have not heard about…Can you do us a favour and make sure it happens in the next week.”

The impact of the MH Juaras was huge. The organization now has 180 change agents and communicators with their shoulders to the grindstone and ears to the ground. They helped to build and sustain the momentum of change.

Indira lavished praise on Idris Jala, the CEO who steered MAS into higher, safer altitudes. Idris was mentioned throughout the interview as the enabler. He was open to new ideas. He rolled up his sleeves. He broke down barriers, for example by having lunch in the MAS cafeteria with employees. He wanted to connect with employees. And, it seems, employees wanted to connect with him. And, of course, Idris was very focused on the bottom line. That’s what this was all about. Apart from Idris Jala, senior management played an active role in the communications process. Divisional Heads all had to do Turung Padangs – walk the talk. If any of them were travelling, we would remind them to visit the MAS office.

After all of the thinking and planning, the long hours, deadlines, challenges and obstacles that MAS faced, things turned around. A major contributing factor was that the culture was turning around. “My role is to keep the MH alive in the system, to get it embedded,” said Indira. And, now, three years down the track, MH is very much alive. “It didn’t happen overnight, but we now have people living and breathing it,” she said. “MH is real. It has become a common language. People anchor on it…”

There is a lot more to the story. I have just scratched the surface. I had respected Indira before the interview. By the time we finished, I was in awe of what she and her team at the MAS Communications Division had achieved. And, by the end of the interview I was heartened that, in this fast changing world, fundamentals are as powerful as ever – if in doubt, use common sense, listen to your target market, creatively use all of the tools around you, keep it fresh… and focus on execution. We look forward to seeing MAS continue to rise to the higher altitudes where it belongs.