The Powerful Role of PR in Branding

THE POWERFUL ROLE OF PR IN BRANDING AND MARKETINGCase Study, Concepts, and Debatable Ideas

Kenny OngCNI Holdings Berhad

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

http://www.mycni.com.my/

http://www.oobey.com/

Intro: CNI

1. 20 years old2. Core Business: MLM3. Others: Contract Manufacturing, F&B Retail,

Export/Trading, eCommerce, Shared Services4. Malaysia, Singapore, Brunei, Indonesia, India,

China, Hong Kong, Philippines, Italy, Taiwan, Oman, United States, Vietnam

5. Staff force: ± 5006. Distributors: 200,0007. Products: Consumer Goods and Services

Way back in 2004…

• Thomas Cup, Indonesia

Now in 2007…

CNI ‘Beemax’ Factory Visit, China

1. Top Leaders

2. Product Development

3. Media

Evolution of Public Relations

Have we really changed that much?


PR back then…

18th century: press relations, lobbying and, celebrity campaigning

World War I: U.S. publicity

1920’s: Tobacco Industry

Source: Wikipedia.com

And now…

13th 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?

1. helping find or create great stories,

2. translating stories into the language that the right audience can understand,

3. using the best tools to reach those audiences,

4. listening the to feedback and echoes the stories create,

5. engaging in the appropriate way, and

6. 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


Why is PR important to Value?

1. Funds

2. Brand

3. Intelligence

4. Business


1. Funds

2. Brand

3. Intelligence

4. Business

Communication to bring in the Funds


1. Funds

2. Brand

3. Intelligence

4. Business

Communication to bring in the Sales


1. Funds

2. Brand

3. Intelligence

4. Business

Communication to bring in the Sales

Importance: Brand

PR is a key component of corporate Branding due to its direct influence on:

1. Multiple parties (Investors)

• These parties are either our Branding targets or has influence on our branding targets

2. Brand Story

The real goal of Marketing and Branding

Understanding PR’s role in the whole scheme of things


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.”




“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 is the Objective?


Sergio Zyman

“Retention and Loyalty useless if No Conversion is happening.”



Loyalty is Useless…

• Virtual Consumption vs. Real Consumption



Loyalty is misleading…

• Heavy Consumption ≠ Loyalty

• Loyalty ≠ Heavy Consumption



1.Comm = Relationship (something like Dating)

2.Comm ≠ Media glitz 3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL4.Comm ≠ CSR5.Comm = Get more people, to buy

more, more frequently, at higher prices


Components of Branding

Positioning

Execution

Communication




The Four Roles of PR in Branding

Why we are important to the branding process




The Four Roles of PR in Branding

1. Integrate Communications (Consistency)

2. Feed you, Feed me

3. External Communications

4. Bad News




Role 1: Consistency Integration

The Four Roles of PR in Branding and why we are important to the branding

process




What to Integrate?

1. Aligning OrganizationTo 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

Media

Government

Public

Authorities

Associations

Universities

NGOs

Investors

Proactive Reactive Proactive Reactive

COMM Tools COMM Tools


Employees



Alignment & Consistency

USP

Market Discipline

Profit Model

•Google

•Air Asia

•Tata Nano


"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

"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

Product Leadership

OperationalExcellence

CustomerIntimacy




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: Market Disciplines














Operational Excellence

• Competitive price

• Error free, reliable

• Fast (on demand)

• Simple

• Responsive

• Consistent information for all

• Transactional

• 'Once and Done'

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

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

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

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




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 5th 2007














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

1. Sin of the Hidden Trade-Off

2. Sin of No Proof

3. Sin of Vagueness

4. Sin of Irrelevance

5. Sin of Fibbing

6. Sin of Lesser of Two Evils

Study by: TerraChoice, December 2007




Role 2: Feed you, Feed me


process




Integrating Internal/External

Internal External

Feed

Feed





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





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


process




Communications Integration

Communications

Internal External

Mgmt Distributors

Suppliers

Media

Government

Public

Authorities

Associations

Universities

NGOs

Investors

Proactive Reactive Proactive Reactive

COMM Tools COMM Tools


Employees



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./PoliticsCustomer

s

Suppliers

EconomicsAGM

Market Research

Internet*

Annual Report

Media

Analysts

Fund Managers

Due Diligence

NGOs

NewsletterSpokespersons





Institutional

Gov./PoliticsCustomer

s

Suppliers

EconomicsAGM

Market Research

Internet

Annual Report

Media

Analysts

Fund Managers

Due Diligence

NGOs

NewsletterSpokespersons





Individuals

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet*

Annual Report

Media

Analysts

Fund Managers

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Action

s

Newsletter





Individuals

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet

Annual Report

Media

Analysts

Fund Managers

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Actions

Newsletter




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




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”




What topics interest External Parties?

Acquisition target

Layoffs

CostCutting

New Mgmt

Treatment of ProfitsConsistency

Ecology

Economics

Politics

Strategy Alignment

CSR-related

Crisis

Topics?




What topics interest External Parties?

Acquisition target

Layoffs

CostCutting

New Mgmt

Treatment of ProfitsConsistency

Ecology

Economics

Politics

Strategy Alignment

CSR-related

Crisis

Topics?




What Events impact External Parties?

Politics

Financial Announcements

Shareholdingchanges

Structure

AccidentsEconomic

Crisis

CompetitorMoves

M&A

New Plans

Share-drop

Events?




What Events impact External Parties?

Politics

Financial Announcements

Shareholdingchanges

Structure

AccidentsEconomic

Crisis

CompetitorMoves

M&A

New Plans

Share-drop

Events?




Role 4: Corporate Reputation

Good News, Bad News. Who cares?




Challenges of Public Relations

1. Stake- vs. Share-holder*2. Public Opinions3. Indirect Stakeholders –

NGOs, Community Activists, Online Networks

4. Increasing focus on ecological, social, ethical issues

5. Diverged expectations for same issue

6. Web 2.0

7. What to do with Excessive Cash?

8. Superficial changes vs. Fundamental Changes

9. Investors depend on ‘hearsay’ vs. ‘facts’

10.Share Price ≠ Market11.R&D/M.S./HR vs.

Investor Expectations12.Opposing ‘Expert’ views13.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


Good News vs. Controllability

Can Control Cannot Control

Internal Attribution

External Attribution


?



Bad News vs. Controllability

Can Control Cannot Control

Internal Attribution

External Attribution




Stakeholders vs. Reputation Communications

Consumers, Partners

Media Shareholders,

Investors, Analysts

Regulators Civil Society, NGOs

Key Issues

Key Questions

asked

Actions


Media-specific Reputation Communications

Media

Key Issues •Big business as negative•Lack in-depth reporting for balanced view

Key Questions asked

•Limited, usually telecons with IR/CC

Actions •Websites•Press Release•Management Press•Sells-side Analyst calls and reports•Industry Reports


Media Options for Brand Building

Old media, New media and everything in between




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

EconomicsAGMAds

Internet*

Annual Report

Media

Analysts

Ex-employees

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Action

s

Newsletter




Touch Pointsl

Corporate Brand

Gov./ Politics

Customers Public

Events

EconomicsAGMAds

Internet

Annual Report

Media

Analysts

Ex-employees

Relatives

Friends

Pasar Malam

Employees

Employee Bloggers

Mgmt Actions

Newsletter




The Right Tools for the Job

Reach of Communication

Qua

lity/

Inte

nsity

of

Com

mun

icat

ion

Personal (exp)

Personal (info)

Impersonal (info)

Individual Mass

Mass Traditional, In-home, Out-Of-Home

Mass Unconventional

Mass Online


Refer Attachment 2





Qua

lity/

Inte

nsity

of

Com

mun

icat

ion

Personal (exp)

Personal (info)

Impersonal (info)

Individual Mass

Mass Targeted Conventional

Mass Targeted Online

E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website


Refer Attachment 2





Qua

lity/

Inte

nsity

of

Com

mun

icat

ion

Personal (exp)

Personal (info)

Impersonal (info)

Individual Mass

Individual Targeted Conventional

Individual Targeted Online


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




“…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




Don’t forget…

“The business of business is Business, not Public

Relations”






Sergio Zyman



Thank You.

soft copy of slides: http://totallyunrelatedrandomanddebatable.

blogspot.com/