The Powerful Role of PR in Branding

THE POWERFUL ROLE OF PR IN BRANDING AND MARKETING Case Study, Concepts, and Debatable Ideas Kenny Ong CNI Holdings Berhad www.myCNI.com.my www.OOBEY.com

Intro: CNI
20 years old
Core Business: MLM
Others: Contract Manufacturing, F&B Retail, Export/Trading, eCommerce, Shared Services
Malaysia, Singapore, Brunei, Indonesia, India, China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam
Staff force: ± 500
Distributors: 200,000
Products: Consumer Goods and Services

Way back in 2004…
Thomas Cup, Indonesia

Now in 2007…
CNI ‘Beemax’ Factory Visit, China
Top Leaders
Product Development
Media

Evolution of Public Relations Have we really changed that much? www.myCNI.com.my www.OOBEY.com

PR back then… Source: Wikipedia.com 18 th century: press relations, lobbying and, celebrity campaigning World War I: U.S. publicity 1920’s: Tobacco Industry

And now…
13 th April 2009
Two Domino’s employees
YouTube
Apology from Domino’s after 48 hours
1 million hits
Twitter: questions on silence
LinkedIn: suggestions by users in forum
BusinessWeek, May 4, 2009

Role Of PR in the OLD DAYS?
helping find or create great stories ,
translating stories into the language that the right audience can understand,
using the best tools to reach those audiences,
listening the to feedback and echoes the stories create,
engaging in the appropriate way, and
Gatekeeper (unfortunately)

Changed?
CSR
IR
Web 2.0
Crisis Comm
Branding
Corporate Reputation
Marketing
Media Relations
Stories
Translation
Reach
Listening
Engaging
Gatekeeper

NOT changed?
CSR
IR
Web 2.0
Crisis Comm
Branding
Corporate Reputation
Marketing
Media Relations
Stories
Translation
Reach
Listening
Engaging
Gatekeeper
The ROLE

Changed? People Tools Story Audience Change

What has been the Biggest change expectation?
The role of PR as “Value Creator”
But how do we do it?

Branding And what this means to Public and Media Relations www.myCNI.com.my www.OOBEY.com

Why is PR important to Value?
Funds
Brand
Intelligence
Business

Funds
Brand
Intelligence
Business
Communication to bring in the Funds

Funds
Brand
Intelligence
Business
Communication to bring in the Sales

Importance: Brand
PR is a key component of corporate Branding due to its direct influence on:
Multiple parties (Investors)
These parties are either our Branding targets or has influence on our branding targets
Brand Story

The real goal of Marketing and Branding Understanding PR’s role in the whole scheme of things www.myCNI.com.my www.OOBEY.com

What is the purpose of Marketing & Branding? Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty are useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com

What is the purpose of Marketing & Branding? “ Retention and Loyalty are useless if No Conversion is happening.” “ Comm (PR) is useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com

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

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.” www.myCNI.com.my www.OOBEY.com

What is the Objective?
Loyalty is Useless…
Virtual Consumption vs. Real Consumption
www.myCNI.com.my www.OOBEY.com

Loyalty is misleading…
Heavy Consumption ≠ Loyalty
Loyalty ≠ Heavy Consumption

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

Components of Branding Positioning Execution Communication www.myCNI.com.my www.OOBEY.com

The Four Roles of PR in Branding Why we are important to the branding process www.myCNI.com.my www.OOBEY.com

The Four Roles of PR in Branding
Integrate Communications (Consistency)
Feed you, Feed me
External Communications
Bad News

Role 1: Consistency Integration The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com

What to Integrate? www.myCNI.com.my www.OOBEY.com 1. Aligning Organization To the Culture 2. Integrating External & Internal actions 3. Alignment and Consistency to the Strategy 4. Long-term Relationship Building efforts

Communications Integration and Consistency Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities

Alignment & Consistency USP Market Discipline Profit Model
Google
Air Asia
Tata Nano

Alignment & Consistency
"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 www.myCNI.com.my www.OOBEY.com

Alignment & Consistency: Market 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) www.myCNI.com.my www.OOBEY.com

Alignment & Consistency: Market 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
Alignment & Consistency: Disciplines, Priorities, and KPIs
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

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

Alignment & Consistency Operational Excellence (low cost producer) Ref: The Discipline of Market Leaders , Michael Treacy & Fred Wiersema; 1995 Product Leadership (best product) Customer Intimacy (best total solution)

Alignment & Consistency 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) HP well-balanced portfolio, mass customization Acer super lean cost structure, aggressive pricing Apple powerful products, premium pricing, limited range Still Doing well in 2009

Alignment & Consistency: Business Model USP Market Discipline Profit Model

Alignment & Consistency: The 6 Sins of Greenwashing
Sin of the Hidden Trade-Off
Sin of No Proof
Sin of Vagueness
Sin of Irrelevance
Sin of Fibbing
Sin of Lesser of Two Evils
Study by: TerraChoice, December 2007 www.myCNI.com.my www.OOBEY.com

Role 2: Feed you, Feed me The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com

Integrating Internal/External Internal External Feed Feed www.myCNI.com.my www.OOBEY.com

Integrating Internal/External
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

Integrating Internal/External
Internal
Entrepreneur Dev.
Health products
Health education
“ Made in Malaysia”
Events
Media Celebrity
External
Website
DSAM
Yayasan
Publish Book
Social Education
Crisis Comm
Children Education
National interest
Analyst BD connections

Role 3: External Communication The Four Roles of PR in Branding and why we are important to the branding process www.myCNI.com.my www.OOBEY.com

Communications Integration Communications Internal External Mgmt Distributors Suppliers Proactive Reactive Proactive Reactive COMM Tools COMM Tools www.myCNI.com.my www.OOBEY.com Employees Associations Universities NGOs Investors Media Government Public Authorities

Audiences
Institutional
Fund Managers Corporations Sovereign Funds VCs NGOs Non-Profit Org Financial (Loans) JV Partners M&A Social VCs Holding Co. HQ (MNC) Gov VCs Supply Chain Government PFI Competitors Franchisees

Audiences
Individuals
Investors Employees Shareholders Customers Distributors* Management

How do External Parties get their ‘INFO’? (1/2) Institutional Gov./Politics Customers Suppliers Economics AGM Market Research Internet* Annual Report Media Analysts Fund Managers Due Diligence NGOs Newsletter Spokespersons www.myCNI.com.my www.OOBEY.com

How do External Parties get their ‘INFO’? (1/2) Institutional Gov./Politics Customers Suppliers Economics AGM Market Research Internet Annual Report Media Analysts Fund Managers Due Diligence NGOs Newsletter Spokespersons www.myCNI.com.my www.OOBEY.com

How do External Parties get their ‘INFO’? (2/2) Individuals Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Fund Managers Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com

How do External Parties get their ‘INFO’? (2/2) Individuals Gov./ Politics Customers Public Events Economics AGM Ads Internet Annual Report Media Analysts Fund Managers Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com

How not to talk to Individuals
“ The holder [of a CAB certificate] may continue to serve regularly any point named herein through the airport last regularly used by the holder to serve such point prior to the effective date of the certificate. Upon compliance with such procedures relating thereto as may be prescribed by the Board, the holder may, in addition to the services hereinabove expressly prescribed, regularly serve a point named herein through any airport convenient thereto.”
Civil Aeronautics Board, 1977 www.myCNI.com.my www.OOBEY.com

How not to talk to Individuals
“It has been determined not to be in the public interest that United Airlines continue to provide air transportation services between San Diego and San Antonio”
“ I forbid United Airlines to fly between San Diego and San Antonio” www.myCNI.com.my www.OOBEY.com

What topics interest External Parties? www.myCNI.com.my www.OOBEY.com Acquisition target Layoffs Cost Cutting New Mgmt Treatment of Profits Consistency Ecology Economics Politics Strategy Alignment CSR- related Crisis Topics?

What Events impact External Parties? www.myCNI.com.my www.OOBEY.com Politics Financial Announcements Shareholding changes Structure Accidents Economic Crisis Competitor Moves M&A New Plans Share- drop Events?

Role 4: Corporate Reputation Good News, Bad News. Who cares? www.myCNI.com.my www.OOBEY.com

Challenges of Public Relations
Stake- vs. Share-holder*
Public Opinions
Indirect Stakeholders – NGOs, Community Activists, Online Networks
Increasing focus on ecological, social, ethical issues
Diverged expectations for same issue
Web 2.0
What to do with Excessive Cash?
Superficial changes vs. Fundamental Changes
Investors depend on ‘hearsay’ vs. ‘facts’
Share Price ≠ Market
R&D/M.S./HR vs. Investor Expectations
Opposing ‘Expert’ views
Operational Risk -> Reputational Risks

PR Challenges
“ Good news for stockholders can be bad news for other stakeholders.”
Gregory Miller, Assoc. Prof., Harvard Business School.

Audiences – Good News? Bad News?
money saved by tough bargaining with a union
announcing a dividend: to employees
announcing a dividend: to environmentalists
setting up Diversified business
Refer Attachment 1 - Building Trust with One Group Can Destroy Trust with Another www.myCNI.com.my www.OOBEY.com

Good News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution  www.myCNI.com.my www.OOBEY.com ?  

Bad News vs. Controllability Can Control Cannot Control Internal Attribution External Attribution  www.myCNI.com.my www.OOBEY.com   

Stakeholders vs. Reputation Communications www.myCNI.com.my www.OOBEY.com Actions Key Questions asked Key Issues Civil Society, NGOs Regulators Shareholders, Investors, Analysts Media Consumers, Partners

Media-specific Reputation Communications www.myCNI.com.my www.OOBEY.com
Websites
Press Release
Management Press
Sells-side Analyst calls and reports
Industry Reports
Actions
Limited, usually telecons with IR/CC
Key Questions asked
Big business as negative
Lack in-depth reporting for balanced view
Key Issues Media

Media Options for Brand Building Old media, New media and everything in between www.myCNI.com.my www.OOBEY.com

COMMUNICATION ARCHITECTURE BRAND POSITIONING “ Tagline” KEY SUPPORTING MESSAGES KEY MESSAGES SPECIFIC TO INTERNAL/EXTERNAL SEGMENTS EMPLOYEES Image Development KEY SEGMENTS TARGET GROUPS SPECIFIC SEGMENT

KEY MESSAGES
Who am I?
What do I offer?
Support?
End benefit(s)
Tagline:

Touch Points Corporate Brand Gov./ Politics Customers Public Events Economics AGM Ads Internet* Annual Report Media Analysts Ex-employees Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com

Touch Pointsl Corporate Brand Gov./ Politics Customers Public Events Economics AGM Ads Internet Annual Report Media Analysts Ex-employees Relatives Friends Pasar Malam Employees Employee Bloggers Mgmt Actions Newsletter www.myCNI.com.my www.OOBEY.com

The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Mass Traditional, In-home, Out-Of-Home Mass Unconventional Mass Online www.myCNI.com.my www.OOBEY.com Refer Attachment 2

The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Mass Targeted Conventional Mass Targeted Online E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website www.myCNI.com.my www.OOBEY.com Refer Attachment 2

The Right Tools for the Job Reach of Communication Quality/Intensity of Communication Personal (exp) Personal (info) Impersonal (info) Individual Mass Individual Targeted Conventional Individual Targeted Online www.myCNI.com.my www.OOBEY.com Contests One-on-One Refer Attachment 2

New Mediums – additional info
Refer:
Attachment 3 - How to use Twitter to mitigate a crisis
Attachment 4 - Template For Social Media Press Release
Attachment 5 - Three Types of Social Media

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

“… in the past 18 months, we have heard that profit is more important than revenue, quality is more important that profit, people are more important than profit, customers are more important than our people, big customers are more important than small customers, and that growth is the key to our success. No wonder our performance is inconsistent"
CEO, Anonymous www.myCNI.com.my www.OOBEY.com

Don’t forget…
“ The business of business is Business, not Public Relations”

What is the purpose of Marketing & Branding? Ultimate Objective of Marketing: “ Get more people, to buy more things, more frequently, at higher prices.” Sergio Zyman “ Retention and Loyalty are useless if No Conversion is happening.” www.myCNI.com.my www.OOBEY.com

Thank You. soft copy of slides: http://totallyunrelatedrandomanddebatable.blogspot.com/

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The Powerful Role of PR in Branding

by Kenny Ong on Jul 22, 2009

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