MHO: To Share...

MHO: Business is WAR!

The market is a war field, where products or brands competing with each others, and the winners stay on top of the chart. Weaker opponent bound to stay at the bottom of the chart, unless they find a better way to compete that can bridge the gap with the leader in the market, or stay as it is.

Since we know the business is about the same in the war, we compete on the basis understanding to drive competitors out of business, and such principles of competition, should always prevail in the organization or make known.

In the marketplace, all competitors are assumed to adopt the similar belief as they fight on the same platform, and compete on the same understanding to drive each other out of business. This is a way of life, and none should deny its existence, organization which treat the belief as against the fundamental business ethic will suffer the aggressive attack from competitors often, yet can only remain in a defensive mode due to the none- believer of this Predatory competition.

Company who preferred offensive mode will always remain in active mode; their strategy is always to attack the market, to grab market share, but their aims is to take it from [any] competitors in the markets, though they can have a neutral yet ambitious objectives. For instance, marketing objective is to increase market share by increasing penetration for a New brands; the aim is to take share from the leader of the segment, and successfully triggers massive switching. – Eventually, everyone aims to take share from everyone; this is a way of life.

MHO: How to attack competitor’s brand equity?

How to attack competitor’s brand equity?

Should we or should we not attack competitors’ strongest element of their equity? Once, the well known business man said, ‘we should attack competitor’s strongest element of their equity, and leverage on the weakest element of their equity’. I totally disagree; I would deem such suggestion as full of stupidity, because none would want to compete head on with competitor’s strongest. The correct strategy should aim to attack competitors’ weakest and neutralize competitors’ strongest.

Attacked the weak point:

A brand should aim to attack competitors’ weak point, and create a new market opportunity by triggering massive switching from competitors brand. of those users, who are already frustrated or disappointed with competitors’ weak point.

Neutralize the strong point:

Attacking the strong point will drain your resources in the organization because you are going head-on with what competitors’ do best in the market. Competitors will act tough to defend their position; it means you have to spend more to attack. The right strategy should be “neutralized”, It means, do your best to improve that particular point, not to match competitors but to the level that satisfy the end users, and not out perform. Often, company will adopt a ‘me-too’ strategy but remain true, and consistent to their fundamental brand positioning. For instance, I am the most affordable brand in the market, yet I also give you the quality, versus competitors, who may be the most expensive brand in the market, with the best quality. Both also speak of quality, but one is giving you what you need, the other is giving you the best.

MHO: Branding MisConception...

In developed country, the risk of getting unreliable product has decreased as stated by Mercer Management Journal. Simply because the quality gap between retailer branding and branded product have decreased significantly.

# Misconception 1 – Brand are built mainly through advertising

Author subsequently claims that consumers experiences also important. I disagree with author; however, although, consumers’ experiences count, but it does not represent the whole branding effort. I agree that brand building does not depend merely on advertising, but also not merely on consumer’s experiences. Instead, brand building should be a systematic process to achieve the desire brand position in the competing market. Band building does not limited to only advertising, or creating favorable consumers experiences but it also involves utilizing multiple touch-point to achieve multiple brand building objective; each touch-point is to achieve a particular brand building objectives, e.g. advertising through TVC to create mass awareness, In store product sample to create trial to build consumer experiences, and more. In short, brand building required a concerted effort to support the systematic brand building process through every different stage in the process which aims to achieve a particular brand building objective.

# Misconception 2 – Brand are used primarily to influence customer

It is very true; Brands are not used primarily to influence consumers anymore, it can be used to influence investors and talent too. Powerful brands are able to convince talent to join the organization. Powerful brands also influence investor’s choices in placing their investment. However, one area which organizations neglect is employee’s perception towards your brands. As the proverb said, ‘Charity begins at home’, the strength of the brand is first nurtured within the organization; organizations must ensure that employees understand the brand essence and respect the brands and look up to the brands. Employees are important massager of the organization as they play an important role in consumer service cycle. They are the brand ambassador, and how they carry the brand personality contributes partly to consumers experiences with the company and is influencing the product experience as well.

# Misconception 3 – The key to successful brand management involves understanding the effectiveness of the brand in today’s marketplace

It is true that a brand must always remain relevancy to consumers. As the time goes by, when a brand has achieve significant market position or becoming the leader in the industry; Self Complacent kicks in. Brand ‘builder’ tends to be complacent, and in denial of change in the environment, and will gradually lose the relevancy with consumers.

# Misconception 4 – Brands are symbolic and emotive and therefore are managed primarily through creativity rather than analysis

Analysis is paramount to brand building. Creativity without conclusive analysis is tantamount to ‘a blind man with machine gun’ – shoot without aim, or unable to aim. Analysis of the market can tell you area of focus by importance, and it also tells you area of improvement to be better. Merely relying on creativity is insufficient if aims to strengthen the brand, you need to know what, why, and how in making ‘creativity’ possible and relevant to consumers.

# Misconception 5 – Brands are the responsibility of the department

Brand is the responsibility of everyone in the organization. Everyone plays a role in brand building process. The pillars to the brands are the ‘love and passion’ to the brands of the people in organization, the more ‘love and passion’ you have, the greater the strength of the brands…When people have love and passion to the brand, they will contribute more to the brands, a concerted effort is notice to take care of the brand and grow it to the next level…

MHO: Common Wedgwood....

MHO: Sharing....

MHO: For Sharing....

MHO: Immutable law of marketing

Immutable law of marketing has in fact not immutable, and is arguable for a few laws…

The Law of Leadership can not sustain the retaliation from the leader in the market…thus it may not be applicable if you are ‘already’ in No.2 position…

Being the first isn’t always won; unless you dominated the ‘very first’ position in the market. Otherwise, you just have to keep trying. You can be the first in the market for anything within your category but if you are not the first to the market; you are not match to the leader’s retaliation. For example, assume you are No.2 in the detergent market, and you launched a newly create detergent that kills germ in a minute to target the hygienic market; you are the first to launch a laundry detergent that anti germ. However, if you are the No.2 player in the market with a huge gap versus the leader in term of market share, you either have to be very good in your marketing skills or lose out to the leader when the leader retaliates. Predominantly, as a leader of the market already enjoy a positive and significant brand equity, brand trust and also brand affinity with the target market; which all these help to double effectiveness of me-too strategy. Thus a leader’s me-too strategy is likely to drawn your ‘most’ creative product launch.

The law of category

You can win by creating a new category, but you can’t win if it can easily be copied or duplicated. Again, you can win beautifully if you are already the No.1 in the market. The first law precedes all…

The law of mind

Being the first to market is important to determine if you are the first in the mind; company fails because they are resting at their laurel when No.1 is achieved through being the first to the marketplace, yet forgetting to create the first in consumer mind, then competitors slowly creep in. To win a war, company needs to always push, push and push…never give up.

The law of perception

Win consumers perception means you win the war; yet you also have to win the perception of what you want other to perceive. You win if you manage to get consumer to perceive what you want them to see you…

The law of focus and exclusivity…

You just got to own a word; for example, Post office express mail owns the word ‘speed’, Volvo owns the words safety, but owning a word does not grant you any advantage if it is not what the consumer wants…

MHO: High vs Low Credibility, Favourability vs. Confidence

In a research conducted to test the degree of credibility of medium in relation to the degree of favourability and confidence; Respodents was asked to fill up a set of questions before and after the message communicated...

Low credibility figure command less favorably in pre-message period, but command higher favorability post message…

Low credibility command high confidence level during pre message but command lower confidence level during post message level..

MHO: Physically Attractiveness

Physically attractiveness model are more effective in endorsing product that is "romantically oriented"! such as....Perfume....Sport Car...

MHO: Targeting Children?

Advertising that target children needs to understand younger one do not read, but older one read. Thus, message in advertisement vary due to the age of target audience.

Advertisement with spokesperson using finger pointing towards a package is more effective for younger children because it catches their attention, and may use their finger to point it back.

Mothers are usually easy towards older baby, and attend to their request when shopping; thus message can channel to those older baby, but must ensure message is straight forwards and easily pick up by target audience.

MHO: Is research everything?

Coke conducted a research on 200,000 consumers to test the taste of its new coke, and was confident is launching it. Nevertheless, the new product was a fiasco. Immediately after its launched, consumers started to boycott the New Coke. What they have done wrong, is to change consumers perception on their brand which had built a decade ago...they miss the bonding with the brand...

MHO: Something about Branding I read from book!

MHO: Benevolence is Asian's Value?!

Ability, Benevolence, and Integrity is what Asian care the most.

An Advertisement must be able to reflect these value in order to improve marketing efficacy.

Ability refers to the performance of your products, must be able to exceed your target consumers' need.

Benevolence refers to the sincerity of your advertisement, hard sell does not work in this case!

Integrity refer to the credibility of your brand in the market, be true to yourself and present the truth to consumers...

MHO: Left & Right Brain!

Gender differences means the way information is being processed is also different…

For Female, they use both side of the brains….

Use right brand (affectively driven…)

Use left brain (cognitively driven…)

For Male, they also use both side of the brain but it means differently…

Use right brain (Visually driven…)

Use left brain (Verbally driven…)

MHO: Luck vs. Ability

Photo from HERE

Confident person tend to attributes success to ability, and failure to bad luck.

Lack of confident person tends to attributes success to luck, and failure to ability.

Lack of confident person tends to believe external message more,

Confident person would believe external message less…

Thus, it is about turning a confident person into ‘lack of confident’ through communication to win preferences…

MHO: Effectiveness of Role Model

Photo from HERE!

Consumers can be influenced by role model in their purchase intention and behavior. Role model influences are attributed to 2 driving factors, a) Interest driven, b) Need driven.

When role model appearance in items where audiences are interested, it is effective.

When role model appears in items where audiences are in need of it, it is effective.

Role model can create impulse purchase only if it is interest driven!

MHO: Attractive vs. Likeable

It is more effective for an unattractive person to communicate their intention explicitly to the target consumers; it is on the opposite for unattractive person.

It is less perceived as serving self-interest when a likeable person expresses their intention explicitly to the target market.

It is neither explicit nor implicit when an unlikable person communicates their intention, they will still receive unfavorable response from the target market.

However, when an attractive and likeable person associated with too many advertisement, he/she will receive unfavorable response from the target consumers, regardless of the message is explicitly or implicitly communicated.

MHO: TVC Effective?

A TVC is said effective when target consumers understand the story of your TVC, and create excitement of relating the story in the community; subsequently lead to viral effect. The story line must be clear cut and easily understood; Eye catching and focus, and must avoid showing more than 2 focused items in one frame in the TVC, because consumers only have a pair of eyes that can lock at one thing at a time.

MHO: Company Endorser vs. Spokeperson

I read a research piece that research on the effectiveness of company name and company spoke-person on purchase intention- which one is more effective. The research concluded that company name can help to burnish the name of the product and increase purchase intention of consumers espeically when it coupled with spokepersons' effect. However, I disagree, because it depends on 'what type of company'; it is obviously true if you speak of P&G, but not true for small company...

MHO: Endorsers effect on Teenagers

Endorsers works better on teenagers than older person; because it helps to incite teenagers non-rational behaviors, and Materialistic orientation.

MHO: Coach vs. Teacher

Photo taken from here!

Coach - when you see your path, but slightly covered by mist, and you use both your hand digging along your path, your coach would be someone who light up far in front of you along your path from time to time to reaffirm you that you are 'right'! don't worry!

Teachers - a person who would just 'pinch' your nose, and tell you, 'come here!, this way'.....

MHO: Agency vs. Client

There’re a few principles to ensure a happy, and effective working relationship between agency and clients,

For agency;

a) Agency needs to always try to maintain a harmonious working relationship with clients

b) Agency needs to understand that client pay you for our work and creative idea; experiences which the client is short of, remember that, client won’t need you if they have the capability anyway!

c) Agency needs to always think positively, behave positively, and act positively, because you will get pressure, get rejected, and being forced to complete something under unreasonable timeline

For clients,

a) Trying to work with agency to maintain harmonious relationship

b) Trying to think positively, behave positively, and act positively at anytime; but also must understand that you are a client, and has the authority to reject, pressure and force something through…

c) Be tough when needed…because being tough is being frank, vice versa…sometimes being too loose, client tends to indulge the agency, and agency tends to get used to it and become ‘slow’ in a fast moving environment; in another words, you are being de-prioritized by agency!

MHO: Is celebrity endorser effective?

Photo from here

Is celebrity endorser effective? I personally, would say base on your objective, if you objective is to create awareness for your brand, then celebrity endorser can give your brand a kick; if not, endorser is a waste of money! Furthermore, endorser work well among the younger generation, if your target consumers are age around 16 -25 (approximately), celebrity endorser would work pretty well;

a) Among non user - it creates good awareness
b) Among current user - it build loyalty (i.e. celebrity is using the brand I used)

Unfortunately, endorser do not work well with older generation;

a) Among non user - what's so good about the celebrity??
b) Among current user - they are old enough to know its 'Ad Tactics'....

MHO: Like the TVC or Like the Product?

Most Expensive TVC from Guinness - HERE

The role of advertisement is to communicate the product message to the consumers. As such, the Ad must ensure consumer understand the message. Makers need to put in perspective that creating an Ad that consumer like is not the key success factor. The Key success factor is to create an Ad that helps viewer to learn and understand the product, and eventually incite their interest to know more.

MHO: Increase credibility?

(With reference to above article) Writing a letter to editor, publishing a book or even show up in TV program is not going to help. The few recommendations from author are unlikely to showcase your professionalism. Even so, you are just paving your way towards becoming ‘celebrity agency’ or ‘celebrity-Pro’ or in another word “Cele-Pro”.

My personal experience tells, Celebrity Pro never get things done; instead, those practical and committed, real Professional Agency get thing done quickly enough! Furthermore, Cele-Pro is too busy with own program, and their ‘show-face’ event; hardly have time to meet their own client. Thus, most of the projects are in fact covered by their subordinate. This type of Cele-Pro agency is all ‘talk’, and no ‘quality action’.

Company who wishes to engage Professional Agency for consultation, should always make a reference to Agency’ portfolio, ignore all those ‘glamorous’ awards, TV program or commentary they’ve made; focus on the work they’ve done come more effective, because their work showcase their real capability, and whether their style meet client’ need or requirement.

MHO: Out of Stock Situation

Photo taken from here

The common problem encountered by many others players in Fast-Moving Consumer Good Industry (FMCG) are the ‘Out of Stock’ situation in retail outlet, not that stock is ‘sold-out’ but stock is ‘sleeping’ in the back-yard, simply no one replenished the stock on-shelves. There are few reasons for it;

1. Retailers throwing price – giving a very good discount price, or, in another words, selling very cheap, and can even be at cost price; this is treated as one of the promotion strategy to pull crowd to the outlet; however, since it is sold on a loss, retailers are reluctant to replenish the stock for you, and intentionally slowing the replenishing process.

2. Out Stock Situation even when there’s no promotion activity in the outlet, this is because merchandiser (people who replenish your stock for you) work during the day, and they covered quite a number of outlets during the day; they do not work at night.

1. Outlet where merchandiser covered in the early of the day may have gone out of stock in the evening. This does not mean merchandiser do not do their work; this is a situation is inevitable.

2. Outlet having heavier traffic at night because consumers shop after works, thus stock is moving fast during late evening, if the outlet already suffers from ‘stock replenishing’ issue, the situation is worsen; furthermore, most of the merchandiser do not work at night (unless company subscribes to 3^rd party merchandising specialist and instruct them to do so)

• Situation is worsen especially when retailers are throwing price with the mindset to reduce loses (refer No.1)

What can the company do to alleviate the impact?

a) Hiring more promoters, and place in outlets where stock is fast moving; so that promoters can also help to replenish stock (specially at night – promoters can start on Noon Shift)

b) Getting 3^rd party merchandising specialist to assist in replenishing the stock; but can come far more expensive

c) Re-schedule current merchandisers’ to cover important outlet at night – this also means paying ‘Over-time’ for the job done by merchandisers.

d) Apart from all above, company can spend money for Additional block display so that stock is piled up on the pallets (usually 4ft x 4ft or 4ft x 8ft); so that when shelve is Out of Stock, consumers can still pick it up from block display (but this may not solve the OOS situation in store level)

Prince: ''Stupid Elephant!"

Strategy formulation is sometimes like the story of “blind man & elephant”; each different blind man gives a different thought about an elephant; at strategic level, we are to look at total pictures (the wholeness of an elephant), and pass it down so that they conclude the right way, then we need to tell them that they need this elephant to take them to their destination. After all, they are on their own in managing the elephant, and from the top, we provide timely advice of the appropriate method in riding the elephant.

However, strategy will still go wrong, a) when ‘method’ provided is wrong, or b) the ‘rider’ is sleeping through the journey, and c) strategist not trying to wake ‘them’ up; but often, the comfort riding on elephant is too tempting to sleep, waking them up, piss them off, and they ‘sleep’ again, and here it goes, wrong direction, and the common occurrence is that, the rider wake up, and shout, ‘Stupid Elephant!’

MHO: 2 Types of Strategiests in needs!

Organization need 2 types of people in strategic planning;

a) People who are analytical, controlled mostly by left brain, and is called right handed planners,

b) People who are creative, and occupied mostly in most organization, and is called left-handed planer.

~ Mintzberg ~