Your SlideShare is downloading. ×
0
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Managing and Maximizing Your PR and Corporate Communications Budget - ABF Conference Singapore
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

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

3,630

Published on

Published in: Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
3,630
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
226
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Transcript

    • 1. MANAGING AND MAXIMIZING YOUR PR AND COMMUNICATIONS BUDGET CNI’s Journey, Mistakes, and Lessons Learned Kenny Ong CNI Holdings Berhad
    • 2. Way back in 2004… <ul><li>Thomas Cup, Indonesia </li></ul>
    • 3. Now in 2007… <ul><li>CNI ‘Beemax’ Factory Visit, China </li></ul><ul><li>Top Leaders </li></ul><ul><li>Product Development </li></ul><ul><li>Media </li></ul>
    • 4. Problems from the start <ul><li>No money </li></ul><ul><li>Split Objectives: Sales? Share Price? Image? </li></ul><ul><li>Difficult to hire </li></ul><ul><li>Independent entity </li></ul><ul><li>Charity center </li></ul><ul><li>MLM image nightmare </li></ul><ul><li>Multi-cultural & Multi-lingual </li></ul><ul><li>Close Regulatory scrutiny (food act, health act, Jakim, KPDN) </li></ul><ul><li>Public Listed </li></ul>
    • 5. How to fail without trying
    • 6. 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
    • 7. Denial and Defense <ul><li>“ It’s not really good value our competitor is offering, because it doesn’t include a lot of our features.” - ABC vs Air Asia </li></ul><ul><li>“ It’s good value but not in our preferred customer market.” - ABC vs Toyota </li></ul><ul><li>“ Sure they’re hurting us, but with their unfair advantage, what can we do?” – ABC vs MILO </li></ul><ul><li>“ The rules we are playing by have always worked before” – AMEX vs VISA </li></ul>
    • 8. 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
    • 9. Ad Hoc Tactics <ul><li>Selectively hold discounts to hold business that has started to go elsewhere </li></ul><ul><li>Introduce new promotions, terms, conditions, and offers to confuse and cloud the market </li></ul><ul><li>Beef up customer service by adding people to fix mess-ups and quicken delayed shipments </li></ul><ul><li>Delay capital investments and adjust accounting methods to portray quarterly financial results more favorably </li></ul><ul><li>Introduce “new and improved” products that are new in form, but not in substantive ways that are of consequence to purchasers </li></ul>
    • 10. 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
    • 11. Before moving on… <ul><li>How is PR budget not maximized? </li></ul><ul><li>Because I can - Competency problem </li></ul><ul><li>Poor business value – Ignorance problem </li></ul><ul><li>No Budget lah - Alignment problem </li></ul><ul><li>Not exciting lah – Glamour problem </li></ul>
    • 12. Contents: <ul><li>How can PR budget be maximized: </li></ul><ul><li>Linking Comm to the real world of Business </li></ul><ul><li>Driving WOM as ‘do-or-die’ mission </li></ul><ul><li>Comm as Integrated affair </li></ul><ul><li>Virtuous Cycle for full $$ Impact </li></ul><ul><li>Continuous Networking vs. Fancy Campaigns </li></ul>
    • 13. A. Linking Comm to the real world of Business The anchor for all PR decisions
    • 14. About: CNI <ul><li>18 years old </li></ul><ul><li>Core Business: MLM </li></ul><ul><li>Others: Contract Manufacturing, Export/Trading, eCommerce </li></ul><ul><li>Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan </li></ul><ul><li>Staff force: ± 500 </li></ul><ul><li>Distributors: 250,000 </li></ul><ul><li>Products: Consumer Goods and Services </li></ul>
    • 15. Intro: MLM <ul><li>Sell through people </li></ul><ul><li>Buyers = Members (most of the time) </li></ul><ul><li>Members = Sponsoring </li></ul><ul><li>Product </li></ul><ul><li>Integrity </li></ul><ul><li>R&D </li></ul><ul><li>Training </li></ul><ul><li>Functions & Events </li></ul><ul><li>Tight regulations </li></ul>
    • 16. Intro: CNI <ul><li>CNI’s Business Model background </li></ul>Factory CNIE DC SP Leaders Customers R&D
    • 17. COMM Market Research Internal External Leaders Distributors Suppliers Associations Universities NGOs Investors Media Government Public Authorities Proactive Reactive Proactive Reactive COMM Tools COMM Tools
    • 18. 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.”
    • 19. 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.”
    • 20. Problem… <ul><li>“ 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 .” </li></ul>HBR March/April 1996
    • 21. What are they really buying? <ul><li>&quot;Exactly what I need&quot; </li></ul><ul><li>Customized products </li></ul><ul><li>Personalized communications </li></ul><ul><li>&quot;They're very responsive&quot; </li></ul><ul><li>Preferential service and flexibility </li></ul><ul><li>Recommends what I need </li></ul><ul><li>&quot;I'm very loyal to them&quot; </li></ul><ul><li>Helps us to be a success </li></ul>&quot;They are the most innovative&quot; &quot;Constantly renewing and creative&quot; &quot;Always on the leading edge&quot; &quot;A great deal!&quot; Excellent/attractive price Minimal acquisition cost and hassle Lowest overall cost of ownership &quot;A no-hassles firm&quot; Convenience and speed Reliable product and service Product Leadership Operational Excellence Customer Intimacy
    • 22. 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)
    • 23. <ul><li>Product Leadership </li></ul><ul><li>New, state of the art products or services </li></ul><ul><li>Risk takers </li></ul><ul><li>Meet volatile customer needs </li></ul><ul><li>Fast concept-to- counter </li></ul><ul><li>Never satisfied - obsolete own and competitors' products </li></ul><ul><li>Learning organization </li></ul>Strategy: Value Disciplines <ul><li>Operational Excellence </li></ul><ul><li>Competitive price </li></ul><ul><li>Error free, reliable </li></ul><ul><li>Fast (on demand) </li></ul><ul><li>Simple </li></ul><ul><li>Responsive </li></ul><ul><li>Consistent information for all </li></ul><ul><li>Transactional </li></ul><ul><li>'Once and Done' </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Management by Fact </li></ul><ul><li>Easy to do business with </li></ul><ul><li>Have it your way (customization) </li></ul><ul><li>Market segments of one </li></ul><ul><li>Proactive, flexible </li></ul><ul><li>Relationship and consultative selling </li></ul><ul><li>Cross selling </li></ul>
    • 24. 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)
    • 25. 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)
    • 26. The McPlaybook* <ul><li>Make it easy to eat </li></ul><ul><li>50% drive-thru </li></ul><ul><li>Meals held in one hand </li></ul><ul><li>Make it easy to prepare </li></ul><ul><li>High Turnover </li></ul><ul><li>Tasks simple to learn & repeat </li></ul><ul><li>Make it quick </li></ul><ul><li>“ Fast Food” </li></ul><ul><li>Tests new products for Cooking Times </li></ul><ul><li>Make what customers want </li></ul><ul><li>Prowls market for new products </li></ul><ul><li>Monitored field tests </li></ul>*Adapted from: Businessweek , Februrary 5 th 2007
    • 27. How does that impact PR? Philosophy COMM Strategy Corp Comm Strategy Structure Resources Leadership Person
    • 28. Our Philosophy <ul><li>“ 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.” </li></ul>
    • 29. B. Driving WOM as ‘do-or-die’ mission Big picture, Small picture. PR’s role in both pictures.
    • 30. 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.”
    • 31. What is the Objective? <ul><li>Loyalty is Useless… </li></ul><ul><li>Virtual Consumption vs. Real Consumption </li></ul>
    • 32. What is the Objective? <ul><li>Loyalty is misleading… </li></ul><ul><li>Heavy Consumption ≠ Loyalty </li></ul><ul><li>Loyalty ≠ Heavy Consumption </li></ul>
    • 33. What is the Objective? <ul><li>Comm = Relationship (something like Dating) </li></ul><ul><li>Comm ≠ Media glitz </li></ul><ul><li>Comm ≠ ATL/BTL/BwTL/ArTL/FTL </li></ul><ul><li>Comm ≠ CSR </li></ul><ul><li>Comm = Get more people, to buy more, more frequently, at higher prices </li></ul>
    • 34. What is the Objective? <ul><li>‘ Do-or-Die’ KPIs for CNI </li></ul><ul><li>Revenue </li></ul><ul><li>ARPU </li></ul><ul><li>Sponsoring </li></ul><ul><li>Retention </li></ul><ul><li>Commission Plan (BDP) </li></ul><ul><li>Product </li></ul><ul><li>Corporate Image </li></ul>
    • 35. What is the Objective? Sponsoring BDP Why should I join? Credibility Product Corporate Comm
    • 36. What is the Objective? <ul><li>So…the ultimate objective of Corporate Comm is to drive W ord- O f- M outh. </li></ul><ul><li>That’s it. </li></ul><ul><li>Now, it’s easy to maximize the budget. </li></ul>
    • 37. C. Comm as Integrated affair Unity is worth more than the annual budget.
    • 38. COMM Market Research Internal External Leaders Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools Associations Universities NGOs Investors Media Government Public Authorities
    • 39. Integrated affair Conversion Comm S&M MBS CCD [Internal] [External] [Creative]
    • 40. Example: What we needed <ul><li>The birth of Malaysia’s 1 st Tongkat Ali Ginseng Coffee </li></ul>
    • 41. Example: AGM and myCNI
    • 42. Integrated affair - GROUP Group Media CCD CNIE Infuso QP [MLM] [Contract] [Café] CNIH [Invest n ] EM [Export] KESB [eCom]
    • 43. D. Virtuous Cycle for full $$ Impact Feed you, Feed me.
    • 44. COMM Market Research Internal External Leaders Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools Associations Universities NGOs Investors Media Government Public Authorities
    • 45. Virtuous Cycle Internal External Feed Feed
    • 46. Full $$ Impact Both Sides <ul><li>Internal </li></ul><ul><li>Halal Committee </li></ul><ul><li>Social Education (e.g. SCK) </li></ul><ul><li>Umrah trip </li></ul><ul><li>China Trip </li></ul><ul><li>RBOS </li></ul><ul><li>CFA/HFA </li></ul><ul><li>Coffee Van </li></ul><ul><li>External </li></ul><ul><li>Sponsorship </li></ul><ul><li>Donations </li></ul><ul><li>News clippings </li></ul><ul><li>Newspaper Ads </li></ul><ul><li>MHI </li></ul><ul><li>Awards </li></ul><ul><li>Corporate Profile </li></ul><ul><li>AGM </li></ul><ul><li>Gov. Celebrity </li></ul><ul><li>Analyst research </li></ul>
    • 47. Full $$ Impact Both Sides <ul><li>Internal </li></ul><ul><li>Entrepreneur Dev. </li></ul><ul><li>Health products </li></ul><ul><li>Health education </li></ul><ul><li>“ Made in Malaysia” </li></ul><ul><li>Events </li></ul><ul><li>Media Celebrity </li></ul><ul><li>External </li></ul><ul><li>Website </li></ul><ul><li>DSAM </li></ul><ul><li>Yayasan </li></ul><ul><li>Publish Book </li></ul><ul><li>Social Education </li></ul><ul><li>Crisis Comm </li></ul><ul><li>Children Education </li></ul><ul><li>National interest </li></ul><ul><li>Analyst BD connections </li></ul>
    • 48. E. Continuous Networking vs. Fancy Campaigns R&D in Totality
    • 49. Remember… <ul><li>Comm = Relationship (something like Dating) </li></ul><ul><li>Comm ≠ Media glitz </li></ul><ul><li>Comm ≠ ATL/BTL/BwTL/ArTL/FTL </li></ul><ul><li>Comm ≠ CSR </li></ul><ul><li>Comm = Get more people, to buy more, more frequently, at higher prices </li></ul>
    • 50. Example Networking activities <ul><li>Durian Party </li></ul><ul><li>Wisma Tour </li></ul><ul><li>Hampers </li></ul><ul><li>Umrah </li></ul><ul><li>China Factory Visit </li></ul><ul><li>Large Events </li></ul><ul><li>Donations to Media </li></ul><ul><li>Jakim visit </li></ul>
    • 51. Issues and Challenges Problems, Problems, Problems
    • 52. Sources of Image problems <ul><li>Industry </li></ul>Management Staff Frontline Suppliers/Vendors Retail/Distributor
    • 53. Industry-inspired problems <ul><li>Get-Rich-Quick Schemes (Skim Cepat Kaya) </li></ul><ul><li>Direct Selling myths </li></ul><ul><li>Bad Hats </li></ul><ul><li>Imposters </li></ul><ul><li>Products on Shelves </li></ul><ul><li>Hazardous products by other companies </li></ul><ul><li>Increasing Regulations </li></ul>
    • 54. Don’t know how to use to maximum effect <ul><li>ATL </li></ul><ul><li>Web </li></ul><ul><li>Blogs (Web 2.0) </li></ul><ul><li>Mobile </li></ul><ul><li>Investor Relations </li></ul>
    • 55. IR problems <ul><li>“ Good news for stockholders can be bad news for other stakeholders.” </li></ul><ul><li>Gregory Miller, Assoc. Prof., Harvard Business School. </li></ul>
    • 56. Summary
    • 57. Summary <ul><li>How to maximize budget? </li></ul><ul><li>Focus on the right Priority – WOM </li></ul><ul><li>Drive WOM by Integration and Virtuous Cycle </li></ul><ul><li>Build Integration and Virtuous Cycle using Constant Networking (hardwork) </li></ul>
    • 58. Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/

    ×