• Like
  • Save
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Upcoming SlideShare
Loading in...5
×
 

Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore

on

  • 5,690 views

 

Statistics

Views

Total Views
5,690
Views on SlideShare
5,676
Embed Views
14

Actions

Likes
1
Downloads
220
Comments
0

1 Embed 14

http://www.slideshare.net 14

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore Presentation Transcript

  • MANAGING AND MAXIMIZING YOUR PR AND COMMUNICATIONS BUDGET CNI’s Journey, Mistakes, and Lessons Learned Kenny Ong CNI Holdings Berhad
  • Way back in 2004…
    • Thomas Cup, Indonesia
  • Now in 2007…
    • CNI ‘Beemax’ Factory Visit, China
    • Top Leaders
    • Product Development
    • Media
  • Problems from the start
    • No money
    • Split Objectives: Sales? Share Price? Image?
    • Difficult to hire
    • Independent entity
    • Charity center
    • MLM image nightmare
    • Multi-cultural & Multi-lingual
    • Close Regulatory scrutiny (food act, health act, Jakim, KPDN)
    • Public Listed
  • How to fail without trying
  • The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • Denial and Defense
    • “ It’s not really good value our competitor is offering, because it doesn’t include a lot of our features.” - ABC vs Air Asia
    • “ It’s good value but not in our preferred customer market.” - ABC vs Toyota
    • “ Sure they’re hurting us, but with their unfair advantage, what can we do?” – ABC vs MILO
    • “ The rules we are playing by have always worked before” – AMEX vs VISA
  • The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • Ad Hoc Tactics
    • Selectively hold discounts to hold business that has started to go elsewhere
    • Introduce new promotions, terms, conditions, and offers to confuse and cloud the market
    • Beef up customer service by adding people to fix mess-ups and quicken delayed shipments
    • Delay capital investments and adjust accounting methods to portray quarterly financial results more favorably
    • Introduce “new and improved” products that are new in form, but not in substantive ways that are of consequence to purchasers
  • The Roadmap to Failure Fred Wiersema and Mike Treacy Performance Time Clear Sailing Today’s performance Ad-hoc Tactics Denial & Defense Doom Projections Overdue Failure The Moment of Truth X Performance Freefall Tomorrow’s actual performance Downpresure of Unclear Strategy
  • Before moving on…
    • How is PR budget not maximized?
    • Because I can - Competency problem
    • Poor business value – Ignorance problem
    • No Budget lah - Alignment problem
    • Not exciting lah – Glamour problem
  • Contents:
    • How can PR budget be maximized:
    • Linking Comm to the real world of Business
    • Driving WOM as ‘do-or-die’ mission
    • Comm as Integrated affair
    • Virtuous Cycle for full $$ Impact
    • Continuous Networking vs. Fancy Campaigns
  • A. Linking Comm to the real world of Business The anchor for all PR decisions
  • About: CNI
    • 18 years old
    • Core Business: MLM
    • Others: Contract Manufacturing, Export/Trading, eCommerce
    • Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan
    • Staff force: ± 500
    • Distributors: 250,000
    • Products: Consumer Goods and Services
  • Intro: MLM
    • Sell through people
    • Buyers = Members (most of the time)
    • Members = Sponsoring
    • Product
    • Integrity
    • R&D
    • Training
    • Functions & Events
    • Tight regulations
  • Intro: CNI
    • CNI’s Business Model background
    Factory CNIE DC SP Leaders Customers R&D
  • COMM Market Research Internal External Leaders Distributors Suppliers Associations Universities NGOs Investors Media Government Public Authorities Proactive Reactive Proactive Reactive COMM Tools COMM Tools
  • What is the purpose of COMM? Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty are useless if No Conversion is happening.”
  • What is the purpose of COMM? “ Retention and Loyalty are useless if No Conversion is happening.” “ Comm (PR) is useless if No Conversion is happening.”
  • Problem…
    • “ In business after business, 60% to 80% of lost customers reported on a survey just prior to defecting that they were satisfied or very satisfied .”
    HBR March/April 1996
  • What are they really buying?
    • "Exactly what I need"
    • Customized products
    • Personalized communications
    • "They're very responsive"
    • Preferential service and flexibility
    • Recommends what I need
    • "I'm very loyal to them"
    • Helps us to be a success
    "They are the most innovative" "Constantly renewing and creative" "Always on the leading edge" "A great deal!" Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership "A no-hassles firm" Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy
  • Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
    • Product Leadership
    • New, state of the art products or services
    • Risk takers
    • Meet volatile customer needs
    • Fast concept-to- counter
    • Never satisfied - obsolete own and competitors' products
    • Learning organization
    Strategy: Value Disciplines
    • Operational Excellence
    • Competitive price
    • Error free, reliable
    • Fast (on demand)
    • Simple
    • Responsive
    • Consistent information for all
    • Transactional
    • 'Once and Done'
    • Customer Intimacy
    • Management by Fact
    • Easy to do business with
    • Have it your way (customization)
    • Market segments of one
    • Proactive, flexible
    • Relationship and consultative selling
    • Cross selling
  • Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
  • Strategy: Value Disciplines Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)
  • The McPlaybook*
    • Make it easy to eat
    • 50% drive-thru
    • Meals held in one hand
    • Make it easy to prepare
    • High Turnover
    • Tasks simple to learn & repeat
    • Make it quick
    • “ Fast Food”
    • Tests new products for Cooking Times
    • Make what customers want
    • Prowls market for new products
    • Monitored field tests
    *Adapted from: Businessweek , Februrary 5 th 2007
  • How does that impact PR? Philosophy COMM Strategy Corp Comm Strategy Structure Resources Leadership Person
  • Our Philosophy
    • “ We are more than just a business. We strongly believe that every individual has the opportunity to attain a better quality of life and health through CNI.”
  • B. Driving WOM as ‘do-or-die’ mission Big picture, Small picture. PR’s role in both pictures.
  • What is the Objective? Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty useless if No Conversion is happening.”
  • What is the Objective?
    • Loyalty is Useless…
    • Virtual Consumption vs. Real Consumption
  • What is the Objective?
    • Loyalty is misleading…
    • Heavy Consumption ≠ Loyalty
    • Loyalty ≠ Heavy Consumption
  • What is the Objective?
    • Comm = Relationship (something like Dating)
    • Comm ≠ Media glitz
    • Comm ≠ ATL/BTL/BwTL/ArTL/FTL
    • Comm ≠ CSR
    • Comm = Get more people, to buy more, more frequently, at higher prices
  • What is the Objective?
    • ‘ Do-or-Die’ KPIs for CNI
    • Revenue
    • ARPU
    • Sponsoring
    • Retention
    • Commission Plan (BDP)
    • Product
    • Corporate Image
  • What is the Objective? Sponsoring BDP Why should I join? Credibility Product Corporate Comm
  • What is the Objective?
    • So…the ultimate objective of Corporate Comm is to drive W ord- O f- M outh.
    • That’s it.
    • Now, it’s easy to maximize the budget.
  • C. Comm as Integrated affair Unity is worth more than the annual budget.
  • COMM Market Research Internal External Leaders Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools Associations Universities NGOs Investors Media Government Public Authorities
  • Integrated affair Conversion Comm S&M MBS CCD [Internal] [External] [Creative]
  • Example: What we needed
    • The birth of Malaysia’s 1 st Tongkat Ali Ginseng Coffee
  • Example: AGM and myCNI
  • Integrated affair - GROUP Group Media CCD CNIE Infuso QP [MLM] [Contract] [Café] CNIH [Invest n ] EM [Export] KESB [eCom]
  • D. Virtuous Cycle for full $$ Impact Feed you, Feed me.
  • COMM Market Research Internal External Leaders Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools Associations Universities NGOs Investors Media Government Public Authorities
  • Virtuous Cycle Internal External Feed Feed
  • Full $$ Impact Both Sides
    • Internal
    • Halal Committee
    • Social Education (e.g. SCK)
    • Umrah trip
    • China Trip
    • RBOS
    • CFA/HFA
    • Coffee Van
    • External
    • Sponsorship
    • Donations
    • News clippings
    • Newspaper Ads
    • MHI
    • Awards
    • Corporate Profile
    • AGM
    • Gov. Celebrity
    • Analyst research
  • Full $$ Impact Both Sides
    • Internal
    • Entrepreneur Dev.
    • Health products
    • Health education
    • “ Made in Malaysia”
    • Events
    • Media Celebrity
    • External
    • Website
    • DSAM
    • Yayasan
    • Publish Book
    • Social Education
    • Crisis Comm
    • Children Education
    • National interest
    • Analyst BD connections
  • E. Continuous Networking vs. Fancy Campaigns R&D in Totality
  • Remember…
    • Comm = Relationship (something like Dating)
    • Comm ≠ Media glitz
    • Comm ≠ ATL/BTL/BwTL/ArTL/FTL
    • Comm ≠ CSR
    • Comm = Get more people, to buy more, more frequently, at higher prices
  • Example Networking activities
    • Durian Party
    • Wisma Tour
    • Hampers
    • Umrah
    • China Factory Visit
    • Large Events
    • Donations to Media
    • Jakim visit
  • Issues and Challenges Problems, Problems, Problems
  • Sources of Image problems
    • Industry
    Management Staff Frontline Suppliers/Vendors Retail/Distributor
  • Industry-inspired problems
    • Get-Rich-Quick Schemes (Skim Cepat Kaya)
    • Direct Selling myths
    • Bad Hats
    • Imposters
    • Products on Shelves
    • Hazardous products by other companies
    • Increasing Regulations
  • Don’t know how to use to maximum effect
    • ATL
    • Web
    • Blogs (Web 2.0)
    • Mobile
    • Investor Relations
  • IR problems
    • “ Good news for stockholders can be bad news for other stakeholders.”
    • Gregory Miller, Assoc. Prof., Harvard Business School.
  • Summary
  • Summary
    • How to maximize budget?
    • Focus on the right Priority – WOM
    • Drive WOM by Integration and Virtuous Cycle
    • Build Integration and Virtuous Cycle using Constant Networking (hardwork)
  • Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/