Issue219 by Sledgehammer Communications (M) Sddn Bhd

www.marketingmagazine.com.my

ISSUE 219/// MID-APRIL 2018

DAMIEN CUMMINGS CEO of Peoplewave

DON’T WORRY BE APPIE MALAYSIA’S ONLY SHOW THAT PRESENTS MARKETING CASE-STUDIES

INSIDE:

HOT MEDIA IS ABOUT HEAD ON TRAFFIC MALAYSIA RETAIL INDUSTRY REPORT WHY AN ECD IS NOT A DEMIGOD? DOES DATA GIVE THE DELUSION OF DEMOCRACY? WHY DON’T MORE CMOs BECOME CEOs?

PAUL STEWART Special Advisor, Strategy and Transformation, TMI

ISSN 1985-5575

00219 9 771985

557001

KDN NO. PP15776/03/2013 (033405) RM3.50

SAMIR DIXIT Managing Director Brand Finance Asia Pacific

ISSUE219MID-APRIL2018

WHEN Astro, South East Asia’s top cross-media organization, with direct-to-home satellite TV services in Malaysia, Brunei, Singapore, Indonesia and other parts of the ASEAN region, collaborates with another brand that is seeking communications solutions, the partnership gives desired results. The effectiveness of the campaign is amplified and the brand’s inherent strength also stands leveraged, driven by Astro’s strategic content input. The second case study in the ‘Winning Partnership Series’ discusses how the sway of Korean Dramas over Malay audiences, has been used deftly by the two partners NIVEA and Astro to connect with the consumers and get them to use the new NIVEA Extra White Body Lotion.

TO gain brand awareness and garner bigger market share in the dominant Malay consumers Whitening Lotion market, was the main objective of NIVEA Extra White Body Lotion, and by doing so, also close the gap between NIVEA and its market rival, Vaseline. OVERVIEW With a global surge in the skin whitening lotion category, the market is set to boom with space for various brands. In the whitening skin lotion market of Malaysia, characterized by a Malay skew towards this category, NIVEA’s competitor Vaseline has a greater penetration. NIVEA was faced with the task of making its whitening body lotion brand deepen its association with Malay consumers and lift the market share of the brand. To achieve this, NIVEA collaborated with Astro on the unique and very popular Korean drama genre, which is a great hook for Malay women and for Malaysians, in general. The single and overriding message of this campaign was: Extra fairness plus Glowing equals to Radiant. And the immediate aim for NIVEA was to win the space of whitening in Malaysia market and close the gap with its competitor. For the first time, Astro adapted a Korean drama to address the love for K-dramas among Malaysians and also placed NIVEA’s Extra Whitening Lotion brand within the story. At the end of the drama series, adapted to suit Malay taste and nuances, the results showed an impressive lift in

NIVEA SH AMONG LENDS T

both sales and brand awareness. NIVEA Extra White range overtook the competitor to perform at top level at Retailer T. “The collaboration with Astro by integrating our new NIVEA Extra White Body Lotion in their first Korean Drama adaptation, My Coffee Prince has turned around our business in Retailer T,” Tan Sui Yen, Assistant Brand Manager, NIVEA Malaysia. KEY CHALLENGE NIVEA is trying to break away from superficial fairness. Instead of focusing on skin fairness, which all other whitening brands are doing, NIVEA emphasis on both outer and inner radiance that gives women the real confidence. The brand had to connect to the Malay women who garner bigger share as consumers of skin whitening lotion products. Malay women took up 57 percent share in this category. NIVEA’s market competitor had a stranglehold over this consumer base. On the other hand, NIVEA enjoyed a wider reach with Chinese consumers. However, now for the brand to win a larger market share in the skin whitening lotion category, it had to be popular amongst the Malay women. Another significant challenge that NIVEA faced was that its TVCs with international look and treatment focuses on functional benefit which lack relevancy with its Malay target audience. It was clear that to recruit lapsed Malay users, NIVEA needed to communicate the emotional benefits along with the product’s

... FOR THE FIRST TIME, ASTRO ADAPTED A KOREAN DRAMA TO ADDRESS THE LOVE FOR K-DRAMAS AMONG MALAYSIANS AND ALSO PLACED NIVEA’S EXTRA WHITENING LOTION BRAND WITHIN THE STORY...

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SHINES CONFIDENTLY MALAYS. ASTRO THE STAGE.

women were the target audience for this communication.

functional values. At the heart of the communication, the brand story needed Malay overtones and nuances. NIVEA wanted to reinforce its new NIVEA Extra White proposition message of “Light Up Skin from Deep Within, For Radiance Beyond Fairness”, which underscores real confidence only comes through self-acceptance. MARKET A snapshot of the whitening lotion market showed Vaseline as a stronger brand among Malay consumers as compared to NIVEA. In major retail outlets in Malaysia, NIVEA sales witnessed a dip 2016 onwards. Growth rate at Retailer T was negative and ploughed to the lowest point (January – October). Overall, the total whitening lotion market in Malaysia is dominated by Malay consumers at 57 percent, with Chinese consumers making up 30 percent and other race/communities comprising the rest 13 percent of the market. OBJECTIVE Two main objectives surfaced when NIVEA fathomed the challenge. Retain NIVEA’s strong foothold among the Chinese by continuing to drive the efficacy of NIVEA Extra White. Recruit lapsed Malay users with emotional benefits riding on the key message of ‘Light Up (yourself) From Deep Within, For Radiance (confidence) Beyond Physical Beauty’ The task at hand was to connect with Malay women with a narrative that will strike a chord with them; their emotions, ethos and challenges of life. Malay

STRATEGIC ROUTE & IDEA NIVEA was looking for ways to build awareness for its new variant of lotion, the NIVEA Extra White Body Lotion and Astro was launching its first-ever adoption of a Korean drama with the Malay audiences’ fondness for K-dramas in mind. Astro proposed NIVEA to come on board in being the sponsor for the drama, ‘MY Coffee Prince’ adapted from the Korean drama ‘Coffee Prince.’ The brand NIVEA and the extra white body lotion was proposed to be ingrained into the storyline. This solution was bolstered by Astro’s research which concluded Malay women loved dramas and followed social celebrities ardently. K-dramas were popular among this segment as they connected with the emotional struggles therein. Moreover, celebrities’ recommendations influence buying patterns. Given the fact that `MY Coffee Prince,’ is an adaptation of a Korean drama `Coffee Prince,’ and associating beauty products’ passion with Koreans, `MY Coffee Prince’ was a good match for integration in the series. To win Malay women’s hearts, Astro created a strategy to “Turn NIVEA into a K-drama Star”, by integrating NIVEA into lives of top Malay celebrities, activated by My Coffee Prince, Malaysia’s first local adaption of famous K-drama. The adapted drama created a huge buzz in the Malay audience as two top local celebrities Fattah Amin and Janna Nick were placed as the main casts of this series. Highly anticipated and placed within the Megadrama belt of Astro, made the perfect avenue to push NIVEA Extra White to the Malays.

... AT THE END OF THE DRAMA SERIES, ADAPTED TO SUIT MALAY TASTE AND NUANCES, THE RESULTS SHOWED AN IMPRESSIVE LIFT IN BOTH SALES AND BRAND AWARENESS. NIVEA WHITENING SKIN BODY LOTION OVERTOOK THE COMPETITOR TO PERFORM AT TOP LEVEL... STRATEGIC FIT FOR NIVEA WITH ASTRO To be able to win the hearts of Malay from strong competitor brand, NIVEA collaborated with Astro, who had over 93% penetration in Malay homes, and captured close to 70% of Malay females every month on its No. 1 drama belt – Megadrama. The combination of a strong cast of Fattah Amin and Janna Nick along with Michael Ang as director made My Coffee Prince a high-value creative for NIVEA to associate its brand with. Astro crafted the content to reflect the Malay way of life and society thus building up the emotional quotient for a beauty brand to anchor itself to. The creative also integrated NIVEA’s brand seamlessly throughout the whole TV series. Astro has a strong track record on the Megadrama belt and in offerings of drama adapted from Korea. This, along

ASTRO WINNING PARTNERSHIP SERIES

with an impressive penetration among Malay women, allowed the drama to take off the brand NIVEA Extra White, as a good engagement with the audience. MY COFFEE PRINCE ‘My Coffee Price’ was a love story between Dani & Raikal. Raikal fell in love with Dani who posed as a male to be able to work in a ‘male-employeesonly’ cafe. For the love to bloom, Dani decided to transform herself. NIVEA played an important role to boost Dani’s selfacceptance, and helped her glow beyond physical beauty. NIVEA was integrated into the storyline strategically using the insights, like “Mum gives the best advice”. Dani’s mum advised her to use NIVEA every day for her skin to radiate. Her mother knew deep inside, Dani wanted to feel like a girl. Following her mother’s advice, Dani accepted NIVEA and fell in love with it. When she was sad, NIVEA re-awakened her inner ‘Light’ and helped her to believe in herself. The story-line saw an interesting evolution in the characters: Dani turning more confident about her looks and from Mum advising Dani to use NIVEA, to herself falling in love with the product. RESULTS The campaign successfully impacted Vaseline’s dominant share among Malay consumers. By the end of the campaign period (November’17 – February’18), NIVEA sales almost doubled (+75%) in Retailer T. NIVEA took over the #1 position in major retail outlet (Retailer T) immediately after ‘Coffee Prince’ went on air. NIVEA sales shot to 45 point within a month from the lowest 25 point. The campaign turned NIVEA business around for Retailer T from negative to positive in just 2 months. The tremendous results were closely attributed to the high engagement generated from My Coffee Prince, extended by massive marketing activation and social media campaigns. My Coffee Prince garnered more than 7.2 million TV viewers, reached out to over 75% of Malay female audience. It topped the weekly TV chart with 1.75 million average rating. Top program on competitor’s platform during the same time belt was left far behind, recorded less than half of My Coffee Prince’s average reach & ratings. There were 38 million average weekly social media reach with 6.2 million views across Astro Gempak platforms. NIVEA Extra White gained extra mileage when main actress Janna Nick gave positive reviews and recommendations on her social media. This boosted the credibility even further, and made NIVEA shine confidently among the Malays. This winning campaign is the result of the collaboration between NIVEA, OMD and Astro.

BRAND ALLIANCE ASTRO-NIVEA MEDIA AGENCY: OMD

MARKETING 4.0 OR MARKETING MAYHEM?

ISSUE219MID-APRIL2018

EDITOR’S NOTE

By the Turbanned Stranger | ham@adoimagazine.com

“THE BRUTAL TRUTH OF OUR TIMES IS THE BUSINESS OF MARKETING AND ADVERTISING IS CHALLENGED FOR ITS RELEVANCE AND VALUE. AND ALL OF US ARE BEING TESTED ON OUR RESPECTIVE PROFESSIONAL ACUMEN TO ADOPT AND ADAPT...”

CREATIVE SHOWCASE

Burger King, Oregon Campaign United States Advertising Agency David, Miami, USA Chief Creative Officer / Founder Anselmo Ramos Creative Directors Russell Dodson, Antony Kalathara Associate Creative Directors Jason Wolske, Danny Alvarez Art Director Curtis Caja Copywriter Ian Holmes Design Director Carlos Lange Head of Global Production Veronica Beach Producer Carlos Torres Associate Producer Marina Rodrigues Strategy Director Jon Carlaw

FOR too long, marketing decisionmakers have been playing God. Do they really have the intellectual depth to appreciate and milk great ideas? Do ad/media/digital agencies compromise their ideas to please marketers? Instead of listening to consumers? Is there a knowledge gap between marketing and agency professionals? Is institutional knowledge a good or bad thing? Too many questions, but more importantly, not many people in the agency business have the spine to have opinions and say it like it is. The result: mediocre advertising ideas and algorithm-based solutions that bore. Agencies quietly complain that many marketing people spend time dotting the I’s and crossing the T’s instead of thinking. They also take their personal insecurities and fears and impose them on their agency partners. In the process, they devalue

themselves and the industry they work in. Winning awards do not camouflage structural thinking weaknesses in the marketing communications fraternity. But for many, it about the next job to hop to. Most times, they continue to bring that climate of fear and intimidation to the new job. We asked an agency head to give his constructive and honest feedback on these matters... “The brutal truth of our times is the business of marketing and advertising is challenged for its relevance and value. And all of us are being tested on our respective professional acumen to adopt and adapt. Times like these clearly separate marketers from the ones aspiring to be. My honest assessment is, real marketing rigour and business foresight has fizzled out from decision-making conversations. Flash in the pan creative sparks, orchestrated media platform stunts and techniques

Z E I T G E I S T

have kicked serious brand marketing talk out the window. But it is encouraging to see all is not lost, as one of the most respected marketing institutions P&G is schooling our industry one more time when they said recently:

we want and need brilliant creatives, and we will invest in creative talent.” In our next issue, we will get the opinion of a senior marketer and his corresponding experiences with agencies...

NEW, DYNAMIC MARKET:

WHAT’S IN STORE? THE digital and physical world boundaries in the marketplace continue to blur and everyone’s embracing the new changes setting into the DNA of business models. Admen Hassan, Brand Communications, MDEC, gives us a run down on some of the changes, that are also opening new opportunities and new windows for growth. Admen also shares about MDEC’s role in maximizing the disruptive force called ‘digital transformation.’

MARKETING DISRUPTED The world of modern retail is a turbulent one. While Retail did see better days, today’s savvy consumers are mixing brick and click to enhance their shopping experience; in short, they are driving change. For decades, the sales funnel concept drove marketing behavior. This concept taught us that one should get a consumer’s attention; pique her interest or create a perceived need. In essence, the marketers “pushed” consumers towards their brands. Now consumers are creating the need which marketers follow. Also, paradoxically, in Malaysia, while number of malls have increased, shops and anchors are facing the heat with many outlets within the malls shutting shop. Even the “uptowns” have seen better days. Interestingly, billboards by local businesses have started to come up more than ever. One needs to just drive down the PLUS highway. Who knew even a Muslim prayer-specific product like Telekung Siti Khadijah can afford to have multiple billboard advertising and on overhead bridges? The hybrid retail innovation is giving fresh impetus to marketing where business owners are not restricted to any selling medium; and they are out to grab the attention of the consumers; anywhere. WHAT REALLY HAPPENED? MARKETPLACE: The marketplace has been completely reinvented and reimagined. Marketers, always alert on any socioeconomic trends, are now being enabled by technology. This has led to few trends that need mention. Decentralisation of wealth: With digital, you no longer need to be in prime urban centres to be working internationally. Many international services like freelancer.com allows professionals to work from any location, urban or not. The rise of the cash-rich and

nouveau-riches: The rise of new local entrepreneurs takes attention away from white collar PMEBs. While PMEBs’ spending power is capped by their increasing financial commitments thanks or no thanks to their financialeligibility record, new entrepreneurs who don’t even have a pay-slip are starting to climb. We see the emergence of new entrepreneurs selling tudungs, herbal soaps, cosmetics, perfumes and many more, earning more than some of our multinational country managers. Marketers need to see beyond PMEBs, to target audience with new spending power. Targeting needs to also look at multiple other dimensions, not just

Admen Hassan Brand Communications Corporate Affairs, Malaysia Digital Economy Corporation

the PMEB and salary-based income definitions. Some other countries have already embarked on different digitally-sourced credit ratings systems to profile income categories. COMMERCE: Another significant change is occurring in commerce with the arrival of Data analytics. Customised data analytics is the new trend; not just to get insights of market but also predict market movements. Locally, we have people like Fusionex, Kesatria and others who can help marketers with audience analytics. Malaysia is also home to ASEAN Data Analytics Exchange (ADAX) where the region’s Data Science talents upskill themselves, exchange ideas and provide analytics services. Personalised e-commerce growth in the South- East Asia is among the fastest in the region. Malaysia’s National eCommerce Strategic Roadmap in 2016 already outlines our target to double the growth by 2020. However, it’s not

ISSUE219MID-APRIL2018

DIGITAL FRONTIERS

as simple as just putting up a website for selling your products. Facebook has started the option for advertising to lead directly to Facebook messenger and local e-commerce services like Avana allows automated response and purchase facility within Facebook messenger chat interface. Smaller businesses currently have the advantage, so much so, that the government had to intervene to curb online sellers using private message methods. But with AI and Conversational Interface, different forms of chatbots will soon fill this gap, making online purchases more personal. Here is the opportunity for Marketers to inject creativity and personality in more ways than they used to do. Media agencies will also look at new product openings as conversational interface and analytics will open-up new advertising opportunities. CROWDSOURCED TRADING AND MARKETING Digital has opened-up new resources. Already many small businesses have begun employing crowdsourced and dropship marketing, using social media to gel their communications. Dropshipping has enabled part time sales channels, “having shops going to the customers” instead of the other way around, disrupting retail. Customers now can buy products from their friends be it at the mamak, birthday parties or even and at the workplace. Marketers will need to look at having more social media resources to not only to handle social media, but also look at engaging their trade resources. Trading will become more social. In the light of the above changes in the business model, how is MDEC stepping up as a facilitator in this transformation journey? Agencies and marketers need to get updated and adapt to latest developments. Beyond the analytics and ecommerce references above, MDEC has introduced Digital Technology Acceleration Programme to help corporations customise technology to their needs. Already we have corporations improving customer experience, marketing and operations with customised, cost-effective solutions with local startups. Companies can find out more at http://www.mdec.my/dtap MDEC and partners have also set up a free online learning platform for any organisation and individual to learn new skills in eCommerce. Just register at http://www.go-ecommerce.com

ISSUE 219/// MID-APRIL2018 OUT OF HOME MEDIA

COVER STORY

EVENTS CALENDAR 2018 22 MAY

STRATEGIC BRAND PLANNING BY SUTAPA BHATTACHARYA 19 JULY

MARKETING 4.0 AND DIGITAL TRANSFORMATION CONFERENCE 30 JULY

AUGMENTED REALITY (AR) WORKSHOP BY MANU MENON 28 AUGUST

BEST OF GLOBAL DIGITAL MARKETING CONFERENCE 28 SEPTEMBER

MALAYSIAN CMO CONFERENCE & AWARDS

APPIE DAYS ARE HERE AGAIN

OUT OF THE BOX AND MOVING… He is perched on perhaps one of the most happening advertising medium of the industry and yet runs shy from the media glare. MARKETING caught up with Roshan Puvan, the young CEO of Hot (Head On Traffic) Media, a major Out Of Home (OOH) player in Malaysia, for a quick chat, which, though did run longer with its interesting revelations...

We, at MARKETING, are a bunch of (h)appie campers. And why not? The annual marketing awards jamboree APPIES Malaysia, is nearing. The brave and ‘young-with-ideas’ brand marketers and creative wizards are raring to go...

26 OCTOBER

DRAGONS OF MALAYSIA & ASIA AWARDS NIGHT

DATA INFORMATION

creating fairer value exchanges between people and brands People are realising that every time they use their fitness trackers, buy something online, fill in a form for free WIFI or content, brands learn something more about them. The looming question is: “What am I getting in return for giving them my information?”

Z E I T G E I S T

30 NOVEMBER

MC2 AWARDS - IDEAS OASIS

Content Officer Aradhana Takhtani, Reena Sekaran reena@adoimagazine.com Business Development Manager Jarrod Sunil Solomon jarrod@adoimagazine.com Art Director / Designer Chemical Ali ali@adoimagazine.com Senior Designer FY Tham wai@adoimagazine.com Events & Workshops Ruby Lim ruby@adoimagazine.com

MARKETING 4.0 OR MARKETING MAYHEM? For too long, marketing decisionmakers have been playing God. Do they really have the intellectual depth to appreciate and milk great ideas? Do ad/media/digital agencies compromise their ideas to please marketers? Instead of listening to consumers? Is there a knowledge gap between marketing and agency professionals? Is institutional knowledge a good or bad thing? Too many questions, but more importantly, not many people in the agency business have the spine to have opinions and say it like it is. The result: mediocre advertising ideas...

Photography & Digital Imaging DL Studio No 7, Jalan PJU 3/50, Sunway Damansara 47810 Petaling Jaya, Selangor D.E. Malaysia tel +603 7880 6380 / 6386, email: studiodl@pd.jaring.my

Contributors: Seema Punwani, Damien Cummings, Sue-Anne Lim, Alvin Teoh, Edward Ong. Printer: Cetakrapi Sdn Bhd 22, Jalan Kepong, Taman Sri Ehsan, 52100 Kuala Lumpur Distribution: Spear Millennium Distribution Sdn Bhd E-1-5, Apartment AC4, Taman Sri Sentosa, Batu 6, Jalan Kelang Lama, 58000 Kuala Lumpur MPH Distributors Sdn Bhd (5048-A) Ground Floor Warehouse, Bangunan TH No. 5, Jalan Bersatu, Section 13/4

MARKETING magazine in now available in over 200 selected bookstores across the Klang Valley.

04 60%

51%

45%

32%

20%

15%

USA

France

Hong Kong

Nigeria

Thailand

Philippines

And the more clued up, the more suspicious

Roving Photographer: Mccain Goh

© All Rights Reserved By: Sledgehammer Communications (M) Sdn Bhd (289967-W) No part of this magazine may be reproduced in any form without prior permission in writing from the publisher. While every effort has been made to ensure the accuracy of the information in this publication, the publisher assumes no responsibility for errors, omissions and/ or for any consequences of reliance upon information in this publication. The opinions expressed in this publication do not necessarily represent the views of the publisher or editor. Advertisements are the sole responsibility of the advertisers.

of global users are concerned about the amount of personal information that companies know about them

NEW, DYNAMIC MARKET: WHAT’S IN STORE?

amira@adoimagazine.com

MARKETING magazine is published by Sledgehammer Communications (M) Sdn Bhd 22B, Jalan Tun Mohd Fuad Satu, Taman Tun Dr. Ismail, 60000 Kuala Lumpur, Malaysia. Tel: 603-7726 2588 Fax: 603-7722 5712 www.marketingmagazine.com.my

40%

DATA-DRIVEN CREATIVITY

DIGITAL FRONTIER

Web & Digital: Nurul Amira Ibrahim

46200 Petaling Jaya Selangor Darul Ehsan, Malaysia

THE DATA DEBATE: FAIR VALUE EXCHANGES BETWEEN PEOPLE AND BRANDS? What companies about us The Connected Life Malaysians clearly don’tknow trust the companies. is making uncomfortable study of Kantarpeople TNS shows that while Malaysians spend 7.2 hours online every day, the opportunity for brands to engage with them there 40% of people globally are concerned about the amount of ispersonal underinformation threat, that as companies consumers of online content and have onare them.mistrusting Reeling from data breaches and a growing realisation that ‘free’ internet are skeptical of brand motivations. People are realising that every services are in fact paid for with our own, personal data, people are carefully what they get trackers, in return for handing over time they scrutinising use their fitness buy something online, fill in a form information. fortheir free WIFI or content, brands learn something more about them. The looming question is: “What am I getting in return for giving them CONCERN AROUND USE my information? 51% of consumers in Malaysia are concerned about OF PERSONAL INFORMATION the amount of personal information that companies...

EDITOR'S NOTE

Regional CEO Professor Harmandar Singh ham@adoimagazine.com

The data debate:

The digital and physical world boundaries in the marketplace continue to blur and everyone’s embracing the new changes setting into the DNA of business models. Admen Hassan, Manager, Brand Communications, MDEC, gives us a run down on some of the changes, that are also opening new opportunities and new windows for growth. Admen also shares about MDEC’s role in maximizing the disruptive force called ‘digital transformation.’

DATA AND THE DELUSION OF DEMOCRACY? People are concerned about brands accessing personal data or being able to ‘watch’ them, in the moment, even if it is to personalise their online experience. Whilst this concern is stronger in developed markets, it is only a matter of time before this is echoed in emerging markets.

The recent exposé of Cambridge Analytica, a fast rising British analytics company and their practice on political manipulation has created grave concerns over ethics. In a video secretly filmed by OBJECT TO CONNECTED Channel 4, they DEVICES exposed top management of the company disclosing MONITORING ACTIVITIES dirty tactics used to defame and create entrapment for opponents, so that these political clients can step up by stepping down...

43%

CREATIVE EXPANSION

of people globally object to connected devices monitoring their activities

18% 22%

Indonesia Thailand

35%

Kenya

54%

Hong Kong

59%

USA

CREATIVE SURGE

IDEAS: THE KUCING HAPPY STORY

And both motives and methods are being questioned

AOI PRO ACQUIRES MAJOR STAKE IN DIRECTORS THINK TANK

“

I don’t understand why brands want

and maybe AOIdetails Pro.,beyond onemyofemail theID,largest production companies in Japan, has address and credit card details if I am buying something. Why do they needof to a major stake in leading SE Asia announced the acquisition know whether I am married or not? production group Directors Think Tank (DTT). The move adds some you are a handyman and Amir, Indonesia serious creative firepower to the AOI Pro. Unless Group network’s already need to check I’m home for the do you need impressive offering, and strengthens theirappointment, businesswhy across themyregion. mobile number? DTT Founder and Director, Rajay Singh said, “AOI Pro. Group has Nora, Netherlands greatly impressed us with their creative vision, business acumen and willingness to grant us the freedom to continue to do what DTT does best. Joining Group allows us access to even more creative I stillAOI can’t Pro. understand why many appssupport, need access tools to my photos talent, global andand technology...

”

“

messages? It sounds suspicious. Jon, USA

“

”

WE COULDN’T

BE APPIER!

DAMIEN CUMMINGS CEO of Peoplewave

APPIE DAYS ARE HERE AGAIN

PAUL STEWART Special Advisor, Strategy and Transformation, TMI

We, at MARKETING, are a bunch of APPIE campers. And why not? The annual marketing awards jamboree APPIES Malaysia, is nearing. The brave and ‘youngwith-ideas’ brand marketers and creative wizards are raring to go; to be judged and assessed by 28 top leaders in Malaysia’s marketing industry; and the stage is set for one of the most unique awards show in the marketing communications industry,... SAMIR DIXIT Managing Director Brand Finance Asia Pacific

ISSUE218MID-APRIL2018

COVER STORY

DAMIEN CUMMINGS:

“WE’RE NO LONGER ADVERTISING TO CONSUMERS, WE’RE MARKETING WITH THEM. THIS MEANS THAT WE’RE AT A DAWN OF A NEW TYPE OF MARKETING.”

PAUL STEWART:

“OUR SUCCESS WILL BE LESS IN OUR ABILITY TO PREDICT THE FUTURE, AND MORE IN OUR ABILITY TO MAKE SENSE OF WHAT’S CHANGING TODAY, AND THEN RESPONDING TO THAT.”

APPIES celebrates the best campaigns across Asia, and its third Malaysian edition was held over two days on April 16th & 17th, 2018, at Eastin Hotel. What lends APPIES the edge is that each featured campaign is presented Live by the brand marketers and campaign creators themselves before a panel of judges and an industry audience. Known as the “TED of Marketing”, campaigns are presented in an interactive format comprising of a fourminute creative reel summary, followed by a six-minute oral

presentation highlighting significant aspects of the campaign. Then the presenter fields questions from the judges and audience in a 10-minute Q&A session. AND THE DIDACTICS… Amidst the dazzle and the brilliance of APPIES 2018 on display, what raises the bar, beyond the marketing case studies, is the Guest Speaker sessions, lined up across the two days of sharing and learning. So, while awards teach, but with all glitter and fun; talk sessions by these speakers was

SAMIR DIXIT:

“MARKETING HAS CHANGED MORE IN THE LAST TWO YEARS THAN IN THE LAST 50 YEARS; BUT MARKETERS HAVEN’T CHANGED AT ALL...”

all about intelligent pointers to understand what’s shaping our marketing industry. This time APPIES had an impressive panel of speakers, viz, Paul Stewart, an author and speaker, he is a Special Advisor on Strategy and Transformation for TMI Malaysia; Samir Dixit, Managing Director of Brand Finance, Asia Pacific; and Damien Cummings, CEO of Peoplewave. While Paul is one of the most authoritative voice on organizational performance through transformation, Damien comes to APPIES Malaysia

wearing the badge of a digital marketing ninja. Samir is your global brand proponent, with extensive work on brand and marketing ROI. Talking about this element of the APPIES, Ms Goh Shu Fen, President of the Institute of Advertising Singapore, which is the key force behind APPIES Asia, said, “The APPIES goes beyond conventional award programmes, providing a leading knowledge- exchange platform as it includes special events such as keynote sessions and panel discussions on relevant industry topics.”

KNOW YOUR SPEAKERS DAMIEN CUMMINGS CEO of Peoplewave Damien is a digital disruptor and change agent with over 20 years’ experience in marketing and digital transformation. He is highly awarded, being honoured with a Doctor of Philosophy in Management (honoris causa) from KEISIE University, Korea in October 2017. He’s also been awarded “Global Top 50 Digital Marketing Leaders 2016”, “Financial Services Marketer of

the Year 2016”, “Digital Marketer of the Year 2016”, “Most Influential CMO 2015”, “Marketing Professional of The Year 2012” and the “Brand Leadership Award 2011”. Damien is currently CEO of Peoplewave, a cloud-based software company revolutionizing people management and HR. He is also the Entrepreneur-inResidence, Blogger and Principal Consultant at Econsultancy. Before

entrepreneurship, he was Global Head of Digital Marketing at Standard Chartered Bank and Chief Marketing Officer at Philips APAC. Damien has also worked at major global brands such as Samsung, Dell, Ogilvy & Mather, Citibank, Coca-Cola, NRMA and McKinsey & Company. Damien has held industry leadership positions including APAC Board Director of the Mobile Marketing Association, APAC Advisory

Board of the CMO Council and the Global Executive Committee of the World Federation of Advertisers. PAUL STEWART Special Advisor, Strategy and Transformation, TMI Paul has developed his approach and models for transformation from over 25 years of diverse experience as a Chief Economist, CEO and C-Suite roles. He has worked directly with CEOs and

executives throughout the world, helping them to align customer experience to brands and to integrate their culture and strategy. Amid this complexity, Paul helps CEOs and their senior teams find new insights, and new pathways to the future. He challenges organisations to focus on “the P.S”, i.e. the ‘Have you thought about this?” questions. He believes different questions lead

to new perspectives that help leaders make sense of their most complex problems.The impact is greater clarity on how to navigate between the logical and the emotional elements of the business. During his work at ANZ Bank as Chief Economist he was noted for speaking about the implications of the Asian Financial Crisis for New Zealand. At TMI International, a global consulting and training organization,

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9 COVER STORY

EXCITING TIMES AHEAD…. When MARKETING caught up with the speakers, over Skype, phone and personal meet-ups, they shared how APPIES is a milestone in marketing awards but they also did not dither on reflections about what’s not right about the marketing industry. Paul, for instance, was quick to point out that for more than a century economists (as well as management) sought a nirvana of certainty and predictability that did not exist. “That pursuit is even more futile now. Given the extraordinary rate of change and disruption, our world is far less structured and predictable,” he commented. “As a former economist, I understand a lot about complexity – economic and social systems are highly complex. How you manage this complexity is very different than the techniques that may have been considered appropriate in a more stable, predictable world in times gone by.” So, how does one make sense of this complex and disrupted world? According to Paul, the broad nature of many changes can be anticipated; there is little value in seeking precision as we navigate through this period. He believes our success will be less in our ability to predict the future, and more in our ability to make sense of what’s changing today, and then responding to that. “That is a very different mindset to that which prevailed in the mainstream industries of the last 50 years. In many ways, this should suit marketers, because it is about identification of new patterns and thematic insights to drive new thinking and innovation. But it needs to be much more dynamic and continuous than in the past,” added Paul. Paul has done a lot of work done around Customer Experience and Customer Strategy. We asked him if there were awards dedicated to this

Paul worked as Global Practice Head for Brand Alignment and oversaw the organisation’s strategic repositioning. Paul also founded ON-Brand Partners, a business consultancy that offers a fresh, pragmatic approach to customer strategy implementation and maximizing organisational performance through building cultures. He has presented and worked in his home

field, what would he look out for in such campaigns? He shared that aligning and engaging how the brand’s employees, all of whom influence (either directly or indirectly) the brand experience of customers have been integrated and involved in the brand strategy or marketing campaign. This is essential to building real and sustainable brand value. How are those managing brands tuning into and responding to changing customer expectations? We are in the middle of the (so-called) Industrial 4.0 revolution, the most dramatic period of change in the history of mankind. Most organisations (and brands) must transform, or rapidly and continuously innovate to stay relevant. The bedrock of success is in getting a true grip on how the expectations of their customers are changing and reacting to that. That requires something much more sophisticated and dynamic than the ‘market research’ methods of the past. Speaker Damien’s key message to the industry is: “We’re no longer advertising to consumers, we’re marketing with them. This means that we’re at a dawn of a new type of marketing.” He adds, “The marketing industry is filled with arrogance and hubris. Big personalities, big egos and big budgets. In the face of consumers controlling content, and the marketing narrative, this must change. There’s an incredible amount of transparency that has made its way into marketing and consumers have a low tolerance for gimmicks or arrogance in advertising.” In a scenario where there’s a decline of the traditional advertising and the rise of something new, Damien’s advice to the marketers is, “Get out of your own way. Embrace digital. Know your customer and talk with them like equals, not a segment to be advertised to.

country of New Zealand, Australia, UK, Europe and Malaysia. He has co-authored a best-selling international book: ‘Branded Customer Service - the New Competitive Edge’ (BerrettKoehler, 2004), available in around 20 countries and 11 foreign languages. SAMIR DIXIT Managing Director Brand Finance Asia Pacific With a global

You’ll see much better results.” On the other hand, Samir Dixit brought out the divides between the brand managers, brand communications strategists and the advertising creative team, on the current crop of campaigns. He sees a fundamental disconnect; in that, most of the times, the output is not aligned with the input. “The marketers are always quite limited in their brief and they let the agencies know only a very small view of the big picture. And that is where the key aspects of the brand get lost,” says Samir. He believes agencies are equally responsible. “We must ask the client what are your KPIs on the back of this, and then we can work backwards from there.” “The agencies see the information in a very restricted manner. When I was working for an agency, my team and I managed to win the clients’ confidence over time to be able to tell them that we are not just asking questions; we will give you something so much better in return; and once it is demonstrated there is a better outcome with a wider and deeper knowledge of the business, the value of that questioning comes through, loud and clear.” “The structural dynamics on both sides currently just end up compromising the work. Sometimes the best work is scammed; agencies come up with something and then look out for clients who will run it to submit it for awards. And it also shows that, when the brief comes, nothing good comes out of it. There should be no brief; there should be a discussion around clients’ business.” Another significant point Samir made was that marketers and agencies are all rear-view drivers. To elaborate, he asked some questions: We need to ask constantly, what are we building at the end of the day? And if we are

career spanning more than 28 year across brand, marketing, communications, management consulting and financial Industry, Samir has a wealth of experience across global business and brand strategy, marketing ROI analysis, research, IP management, valuation, global brand management, brand governance, etc. Previously, as a global brand controller

building a brand, how are we measuring the success of the brand and if you don’t know the value of the brand, then what are you building? The second part of that `rear view mirror’ phenomena is: Even if we claim to know everything, we are always comparing it, by looking back. We need to learn to look ahead. One needs a mere glance back, and that too, occasionally. It is unfortunate that marketers’ benchmarks, their comparisons, are all based on historical information and data. Samir’s key message to marketers and the creative guys at the APPIES was, “Marketing has changed more in the last two years than in the last 50 years; but marketers haven’t changed at all.”

at Standard Chartered Bank, Samir managed the global brand agenda with strong focus on global brand strategy, brand and business integration and brand architecture & alignment during M&A. In his various roles across marketing communications and advertising, Samir has worked across industry segments including FMCG, retail, hospitality, industrial products, automobiles, electronics,

WHAT’S UNIQUE ABOUT APPIES The fast-paced, no-fluff ‘4-6-10’ format of the APPIES is what makes it distinctive. It ensures that everyone who attends gets the maximum knowledge about marketing strategies across industries in a very efficient and interactive manner. APPIES Malaysia 2018 is almost like a condensed marketing MBA packed cleverly into a 2-day schedule. Attendees are free to pick which campaign presentations they want to attend based on their industry and interests as sessions run concurrently and conveniently in separate halls in the same venue over two days. Each of the 45 marketing campaigns selected begins with a 4-minute video summarising the campaign, followed by a live 6-minute exposition of the campaign’s key highlights by the brand’s marketers and/or campaign creators. After this, comes the stimulating 10 minutes Q&A session where the presenters have to field tough questions about their campaigns from the judges and audience members. By the end of the 2-day event, all participants and audience members gain tangible takeaways from the impressive showcase of 45 award-worthy campaigns and memorable speaker sessions. They leave armed with deeper strategic insights and knowledge about how to apply some of the winning ideas to their own marketing campaigns moving forward.

F&B, telecom, pharma, healthcare, Banking & Finance, airlines, spirits and wines, Health and Beauty, NGOs, etc. Samir is an external speaker, a certified senior PMC, on the advisory committees with government bodies across ASEAN for brand and IP related matters, contributes to teaching and curriculum inputs at management institutes. He has also presented at various brand conferences

in Singapore, Malaysia, Vietnam, Thailand, Indonesia, Australia, Myanma and Hong Kong. In the past 12 months, Samir has been driving brand & marketing ROI, Brand Governance, Customer segmentation and business acceleration strategies for B2B and B2C segments alike for large multinationals, local corporates and the SMEs across industry and consumer segments in south East Asia.

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OUT OF HOME MEDIA

OUT OF THE BOX AND MOVING… HE is perched on perhaps one of the most happening advertising medium of the industry and yet runs shy from the media glare. MARKETING caught up with Roshan Puvan, the young CEO of Hot (Head On Traffic) Media, a major Out Of Home (OOH) player in Malaysia, for a quick chat, which, though did run longer with its interesting revelations. For, on display, was Roshan’s strong conviction about his business which remains unaltered even under the talk of high-stakes digital distraction. He is upbeat rather; and he has reasons to. Roshan is using technology and innovation to stay ahead in the game of outdoor campaigns, riding on the two strong and unique mediums of toll-plazas and gantries, where other media owners have no presence. In Malaysia, HOT Media Sdn Bhd has a domiant hold on the motorways, with a reach over 4 million motorists daily. With such a traditional footprint, a legacy so unique coupled with impressive growth, Hot Media is standing tall, unwavering. We asked Roshan our first question... How do you describe yourself at this juncture of the industry? With digital screen owners in Malaysia transforming the outdoors, where do you see Hot Media? Basically, Hot media is unique, because we are the only ones who have what we have; no other media owners have our assets - toll plazas, gantries. This, in turn, means that we don’t have much competition with other media owners in that sense. Also, having been around for several years, we have slowly captured the market; and our clientele covers a wide spectrum; schools, multinationals, banks, developers, basically the whole gamut.

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OUT OF HOME MEDIA

...OUR MOTORWAYS AND SPOTS ARE VERY STRATEGIC; WE HAVE A TRAFFIC COUNT, AND NO MATTER WHAT, WE HAVE A GUARANTEED NUMBER OF AUDIENCE THAT WILL WATCH THE ADS...

Furthermore, our motorways and spots are very strategic; we have a traffic count, and no matter what, we have a guaranteed number of audience that will watch the ads. We also give the demographics of a given area, and based on that we derive how the clients will achieve targets.

very effective and one never misses them while driving.

With that, we have grown from strength to strength over the years and I hope I continue to do so, going forward. The marketing communications industry is digitizing at a pace unprecedented, and drawing in consumers at a massive scale. Do you believe Hot Media will stay relevant amidst this? Yes, we are still relevant, and we will continue to be the highlight. We are keeping up with the changing times. We have innovated our boxes in a way where technology aids the clients’ needs. At Hot Media, there is an emphasis on state-of-the-art material, like for instance, protrusion kind of lighting where the light protrudes from the box, and shoots straight to the audience eyes. This lends an interactive element to the boxes, engaging the users who go by. Another thing we offer is 3D concepts; and not just this, various concepts can be innovated into the Box, unlike LED mediums which is limited. LED works like a screen which keeps displaying different messages at different times. So, in effect, one LED Box typically has 10-15 clients. Whereas, in our medium, one customer hires our Box and remains dominant there, giving a longevity to its brand. We do not have a mechanism to inter-change and so it allows only one customer at a time. Like for instance, various developers would prefer to rather have their visual there, than to have other well-known brands. Our innovation in Boxes allows that singular presence. Hot Media gives the highest visibility to its clients, and there is no third party coming in. Over the last few years we have had repeat customers like MBSB; we give them various choices, like sticker or film format and also different sort of variations of light. This keeps our customers engaged with Hot Media.

When did you begin all this? Basically, we were only limited to three mediums earlier; namely, Pillar, Boom Arm, and Light box. We are still selling them but now for the past one and half years we have been innovating and doing something out of the box, literally. Now we are making the box slimmer and the stand is also more appealing because of the new sleek design. Can you throw light on the new and different materials you have been innovating with? The significant change we have introduced is the sticker material, which is quite thick and once it is stuck on acrylic, it makes for a very stable product. When the light shines on such products, it appears as if it is real. Both our Pepsi and Mountain Dew campaigns brought out this realness thanks to our innovation. Other clients too have participated in this innovation. We have used various other ways to place their visuals; like the unique placement of awards where the trophies seem to be coming to you. Do you run brand awareness studies after such campaigns are launched through Hot Media? The clients do this on their own. It must be effective for them to come back to us again and again. I can however reveal that clients are willing to pay more due to innovation. They now want to invest to be dominant in any given geographical area, with no other client present, which our Boxes are currently doing. Interestingly, some of the clients have continued to be in the same spot at tolls for 5 years at a stretch. They will not yield this space; for once they do, others will jump in. These are high-ticket spots on the Expressways for brands. Even our Gantries (ad boards on the other side of the highways) are very popular. These are

What kind of feedback do clients give? We do a lot of work with educational institutions. For example, MAHSA College gives us views and clues during the intakes; about how the admissions went up driven by a well-highlighted campaign with our boards. Brickfields College has increased its boards over the years, based on the awareness we have ben creating for them. We also have KPJ, KDU changing their visuals during intakes, making it relevant to the needs of their programmes. They have their own measurement metrics for finding out the success of the campaigns. We have several schools who have taken gantries with us like MAHSA International school, Beacon International school and other pre-schools, generally we have a huge line-up of educationbased customers. We don’t know for what reason, but I believe they find it very effective. Where do you stand in terms of innovations vis a vis trends in the region? Gantries is a very traditional medium and we own this space in Malaysia. It has evolved to become one of the most sought after advertising platforms due to its heads-on nature. The USP and added incentive for advertisers using Gantry signage, is that it is always at Solus position and is devoid of clutter. We are already the most established in this category. Gantries are unique to Malaysia. Others have not caught up with us on this; not in the ASEAN region certainly. Are you looking at expanding? Yes, we are looking at expanding and moving into other mediums to offer clients more variety. What about added value? An important part of our offering is our services. Without going into details, I would be happy to point out that we get this feedback again and again.

You have a strong marketing team... We have a good force; we have lot of freelance agents. Basically, we have a team that services the direct customers and we also have freelancers who bring their own agencies. Also, we work with many renounced media specialist agencies in Malaysia. Our strength though is the large number of freelancers than full-timers. Your edge over other players? Our advantage is that we have long term customers; we don’t need to do hard sell; and this is because of the unique service we offer. This comprises daily reports on how their campaigns are working; whether there are any problems in lighting, or if boards have been damaged or displaced, etc. We have a mobile team that inspects all the boards and signages and this is followed by immediate feedback. For attending and correcting any issue our response time is 24 hours. This is our USP, and even if customers buy one board, we give them this same service. Some of the challenges you see for Hot Media? There aren’t many challenges for us in this industry; we have a robust client list and we always have work. Currently, there is a long waiting list of clients wishing to take our spots at the tolls. Another positive development is that several customers, attracted to our work, are now willing to pay more than the advertised cost to take over the space. However, we do not indulge in this practice as most of our clients have been with us for too long and they enjoy the dominant positions provided by us. What is the guiding business philosophy of your organization? Teamwork and being in it together to give the best service to clients is our primary work ethos. We ensure that the clients come back to us based on our service and we see them as our associates in the true sense. It is this dedication towards teaming up with our clients that won us the Business Partnership Value Award in 2017.

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COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS For the fourth quarter of 2017, Malaysia’s national economy recorded a sustainable growth rate of 5.9% (Table 2, at constant prices), as compared to 3.1% for retail sales (at current prices). Private investment registered the highest growth rate during this period. The average inflation rate during the fourth quarter of 2017 slowed down further to 3.5%. The growth rates during October, November and December were 3.7%, 3.4% and 3.5% respectively. Once again, the highest increases were in transportation as well as food and non-alcoholic beverages. The double-digit increases in monthly transportation costs (highest at 12.1% in October) during the last 3 months were due mainly to higher fuel prices. On rising food prices, oils & fats as well as fish & seafood registered the highest increases. Private consumption maintained at 7.0% during the fourth quarter of 2017. Once again, Malaysian consumers are spending more on dining out and services.

TABLE 1

YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES (WEIGHTED), 2016/17 TYPE

PERIOD

% GROWTH

Retail sales

Oct-Dec 2016

0.3

Jan-Mar 2017

-1.2

Apr-Jun 2017

4.9

Jul-Sep 2017

-1.1

Oct-Dec 2017

3.1

Jan-Dec 2017

2.0

Source: MRA/ Retail Group Malaysia

TABLE 2

LATEST RETAIL PERFORMANCE For the fourth quarter of 2017, Malaysia retail industry reported a modest growth rate of 3.1%, as compared to the same period in 2016 (Table 1). This latest quarterly result did not meet market expectations. Members of MRA projected the fourth quarter growth rate in November 2017 at 3.8%. It was also below Retail Group Malaysia’s forecast of 4.5%. Year-end festival and school holiday contributed to the better growth rate during this quarter. This latest quarterly result is consistent with Consumer Sentiment Index during the same period published by MIER. Rising costs of living continued to deteriorate the purchasing power of Malaysian consumers. For the whole of 2017, the retail sale growth rate was 2.0% (or RM 99.8 billion) as compared to the same period a year ago. Retail industry performance last year lagged behind the GDP growth rate of 5.9%.

MARCH 2018

Compiled and written by Retail Group Malaysia

COMPARISON OF RETAIL SALES WITH OTHER ECONOMIC INDICATORS, 2017 ECONOMIC INDICATOR

1ST QTR

2ND QTR

3RD QTR

4TH QTR

GDP (%)

5.6

5.8

6.2

5.9

Inflation rate (%)

4.3

4.0

3.8

3.5

Private consumption (%)

6.6

7.1

7.2

7.0

Retail sales (%)

-1.2

4.9

-1.1

3.1

Consumer Sentiment Index

76.6

80.7

77.1

82.6

Unemployment rate (%)

3.5

3.4

Source: Bank Negara/ Department of Statistics/ MIER/ Retail Group Malaysia

TABLE 3

MEMBERS of the Malaysia Retailers Association (MRA) were interviewed on their retail sale performances for the entire year of 2017 and the first quarter of 2018. This year is the 20th anniversary of Malaysia Retail Industry Report. The Report was first published in 1998 during the Asian financial and economic crisis.

MALAYSIA RETAIL INDUSTRY REPORT

YEAR ON YEAR PERCENTAGE CHANGE IN RETAIL SALES BY RETAIL SUB-SECTOR, 2017 RETAIL SUB-SECTOR

1ST QTR

2ND QTR

3RD QTR

4TH QTR

WHL

Department store cum supermarket

-3.7

4.1

-3.5

2.3

-0.2

Department store

-0.1

15.1

-4.4

-0.4

3.4

Supermarket and hypermarket

-4.8

0.8

-5.2

-2.7

-3.2

Fashion and fashion accessories

-0.1

2.5

-4.8

7.8

3.9

Pharmacy and personal care

3.7

7.9

6.0

5.4

4.9

Other specialty retail stores

-3.1

6.3

5.9

7.4

5.6

Source: MRA/Retail Group Malaysia

TABLE 4

RETAIL REPORT

3-MONTH RETAIL SALES FORECAST BY RETAIL SUB-SECTOR, JANUARY-MARCH 2018 RETAIL SUB-SECTOR

% GROWTH RATE

Overall (weighted)

5.4

Department store cum supermarket

5.5

Department store

6.3

Supermarket and hypermarket

2.4

Fashion and fashion accessories

9.9

Pharmacy and personal care

4.6

Other specialty retail stores

6.6

Source: MRA/Retail Group Malaysia

TABLE 5

MALAYSIA RETAIL INDUSTRY QUARTERLY GROWTH RATE, 2018 QUARTER

% GROWTH RATE

First

(e) 5.4

Second

(e) 3.7

Third

(e) 5.2

Fourth

(e) 5.0

Whole year

(e) 4.7

(e) - estimate Source: Retail Group Malaysia

During the latest quarter, the Consumer Sentiment Index (by MIER) improved to 82.6. Malaysian consumers remained cautious in their monthly spending while juggling with higher costs of living. Unemployment rate during the fourth quarter of 2017 maintained at 3.4%. RETAIL SUB-SECTORS: SALES COMPARISON During the fourth quarter of 2017, the performances of all retail sub-sectors were mixed (Table 3). The supermarket and hypermarket sub-sector was the worst performer. After a disappointing performance in the previous quarter, Department Store cum Supermarket sub-sector managed to recover during the last 3 months of 2017 with a growth of 2.3%. For the entire year, it recorded a negative growth rate of 0.2%. After a strong rebound during the second quarter of 2017, Department Store sub-sector slid into the red again with a growth rate of -0.4% during the fourth quarter. For the whole year, it achieved a positive growth rate of 3.4%. The Supermarket and Hypermarket sub-sector reported another poor result during the last quarter. For the fourth quarter of 2017, retail sale of this sub-sector dropped by 2.7%. For the whole year, its sales declined by 3.2%. The Fashion and Fashion Accessories sub-sector managed to recover during the last 3 months of 2017. As compared to the same period a year ago, fashion retailers enjoyed a strong rebound with a growth rate of 7.8% during this last quarter. During the last 3-month period of this year, Pharmacy and Personal Care sub-sector recorded a sustainable growth rate of 5.4%, as compared to the same quarter a year ago. For the year of 2017, this sub-sector expanded by 4.9%. The Other Specialty Stores sub-sector (including photo shop, second-hand goods’ store, sporting goods’ store, baking ingredients’ store as well as foods & beverages outlet) reported another encouraging growth rate

of 7.4% during the fourth quarter of 2017, as compared to the same period last year. For the entire year, it achieved a growth of 5.6%. This sub-sector is the best performer in 2017. NEXT 3 MONTHS FORECAST After a rollercoaster ride in 2017, members of the Retailers Association are hopeful their businesses will begin to recover in 2018. They estimate an average growth rate of 5.4% during the first quarter of 2018 (Table 4), due to the Chinese New Year period. The department store cum supermarket operators are expecting their businesses to rebound strongly with a growth rate of 5.5% during the first quarter of this year. Similarly, department store operators look forward to their businesses bouncing back strongly with a growth rate of 6.3% for the first 3-month period of this year. After a dismay performance in 2017, supermarket and hypermarket operators expect their businesses to return to black with a moderate growth rate of 2.4% during the first quarter of 2018. The business of retailers in the Fashion and Fashion Accessories sub-sector is expected to continue its recovery with a strong growth rate of 9.9% during the first quarter of 2018. Retailers in the Pharmacy and Personal Care sub-sector are expecting their businesses to moderate with a growth rate of 4.6% during the first quarter of 2018. Retailers in Other Specialty Stores sub-sector remain optimistic about their businesses in the new year. For the first 3-month period of 2018, this sub-sector expects its business to expand by 6.6% as compared to the same period a year ago. THE YEAR 2018 Based on our first quarterly projections of retail sales for 2018 (Table 5), Retail Group Malaysia estimates 4.7% growth rate in retail sales this year (or RM 104.4 billion). At this moment, this projection is considered optimistic by MRA members. The prospect of retail industry this year is still highly dependence on economic performance and consumer confidence levels. The upcoming Malaysia general election is one of the main reasons Malaysian consumers have been taking a wait-and-see attitude on their retail spending. Retail sales may rise after the official election campaign starts. When campaigns begin, it will lead to many political and social activities throughout the country. This should motivate consumers to spend. Post-election, consumers’ spending may improve further as Malaysians will focus on their own economic future and release pent-up demand.

ISSUE219MID-APRIL2018

BSN (Bank Simpanan Nasional) is probably the last client you’d expect to win a Kancil Award, let alone the Grand Prix. But in 2015, not only did BSN’s Kucing Happy sweep the lion’s share of the local creative awards, it also took home top prizes at the Effies. We talk to Adam Miranda, Co-Founder and Executive Creative Director of Fishermen, to get the back story on how it all happened. OBJECTIVE BSN was born in 1974. They wanted to connect with young people - most of whom thought the bank was oldfashioned and out-of-date. Or worse, that BSN stood for Bachelor of Science in Nursing. This imagery affected their marketing activities for savings, credit cards and loans.

On a deeper level, Malaysians have a connection with revered institutions. And BSN was one such. “We like our institutions,” says Adam. “I think most of us want to have a relationship with these organizations. The key is changing the way we speak to consumers.” ANSWER To celebrate BSN’s 40th birthday, customers get the presents. The agency persuaded the client to ‘appoint’ a Chief Happiness Officer to distribute these gifts. But who was going to be this ‘Chief Happiness Officer’? How about BSN’s CEO? Maybe a celebrity? After numerous back and forths, the team settled on a cat. It was a social media campaign after

all, and the internet’s official animal seemed like a good spokesperson. Kucing Happy (Happy Cat) was born. In developing his character, the writers gave him a sort of troll-ish personality, and he would never actually grant any wish. For example, if someone wanted a car, Kucing Happy would interpret that person needing something else, like a key chain. Troll cat would be simultaneously mean and likeable. A social media campaign was launched, asking users, “What can BSN do to make you happy?” Based on the response, the first episode was then scripted and recorded. Everything was ready to be uploaded. Mentally, Adam was pacing the floor. He wasn’t convinced

the creatives had ‘cracked’ it. “I thought there were only two possible outcomes,” recalls Adam. “One, people would actually find it funny. Two, it’s so bad, we’ll have to hide in the mountains for a few years.” Happily, the internet took to BSN and Kucing Happy like never before. After the first episode was aired, more people sent in their wishes. Somebody at Fishermen presumably did the same. Either way, the agency was granted five fully-caffeinated, sleep-deprived, non-stop brainstorming weeks of producing weekly videos for BSN’s new CFO (Chief Feline Officer). Thankfully, no animals were harmed in the making. The rest, as they say, is history.

CHALLENGE With the bank’s 40th anniversary around the corner, it was an opportune time to connect with this generation. Since their audience were internet and social media savvy, it was decided that the campaign should run online. However, if people didn’t care much for the brand - would throwing a party for your 40th birthday make a difference?

FEELING LOST. WHEN I was a kuci-mayong junior creative, I thought, wow, those damn ECDs, they’re like, wow. It was a spillover from art school days when we devoured award annuals like vultures to decaying flesh. We were fan boys of ECDs and their work made a lasting impression on us. We saw them as highly intelligent and creative people who could make shit happen from thin air. They were charismatic mavericks and they ignited our dreams to be like them one day. Then, it was my turn. I was an ECD but I didn’t feel like a maverick that could make shit happen from thin air. So I started reading up on what this job required of me. One ad blog described an ECD as a person who does nothing but say ‘yes’ and ‘no’ to ideas and then goes off somewhere to work on scams to win creative awards and be a rock star and travel the award circuit to judge stuff and give talks. That wasn’t really helpful. Seriously? ECDs do that?

CREATIVE SURGE

IDEAS:

THE KUCING HAPPY STORY

Edward Ong is on a quest to discover and create Malaysia’s best ideas. He is an award-winning Writer and Creative Director, and can be found at IdeasAreBorderless.com

TRUTH On a superficial level, people like receiving gifts.

EVERYONE’S COMPLAINT DEPARTMENT:

Now that I’ve been one for ten years I can describe the experience a little better and it’s this: You have big dreams of making an impact on society, but you get lost and disorientated and overwhelmed half the time. The truth is, an ECD is not a demigod. Maybe some are, but not me. I am one still finding my way and I suspect will do so until my dying breath, which I hope is not anytime soon. Being an ECD is a mash up of many things. You are concerned about strategies and insights, words and pictures, stories and people, art and design, brand love and results, sound and music, channels and touchpoints, budgets and creative flexibility as you navigate the constantly evolving digital space and shifting sentiments of people while struggling to find a balance between gut and data and calling for the desperate need for reflection amidst a sea of change. You’re solving petty issues that come from dealing with immaturity and hidden agendas and people with small d**k issues and unresolved chip-on-the-shoulder problems

and you try to summon all the grace one could muster (while secretly wishing bodily harm to that idiot) and be a voice of reason so no one commits murder at work. And while doing all that, you’re also battling your inner demons, fatigue and the guilt you feel from bad decisions. But you try not to show it because you’re still expected to pull a rabbit from out of your ass and be inspiring so you can keep talents, bring in new ones, work double or triple shifts to help those burdened by the weight of their responsibilities. Then somewhere in the midst of all these things, you learn to accept the fact that you’re just a human being who doesn’t have all the answers. So you sit back, relax, count your blessings and start again tomorrow. That is what being an ECD is all about and I relish the fact that I am still alive and am able to retain some of my sanity. So to all who hold this post, I raise my cup of Chinese tea to you. Fight the good fight but remember to be kind to yourself. It’s totally ok to admit you’re feeling a little lost and a little stupid.

The ‘Everyone’s Complaint Department’ series of comic strips began as random doodles and reflection pieces of Alvin Teoh, ECD of NagaDDB Tribal. These little stories were originally posted on Facebook and are an ongoing tribute to life in Adland.

What companies know about us is making people uncomfortable 40% of people globally are concerned about the amount of personal information that companies have on them. Reeling from data breaches and a growing realisation that ‘free’ internet services are in fact paid for with our own, personal data, people are carefully scrutinising what they get in return for handing over their information.

“

I still apps messa

CONCERN AROUND USE OF PERSONAL INFORMATION

ISSUE219MID-APRIL2018

40%

of global users are concerned about the amount of personal information that companies know about them

60%

51%

45%

32%

20%

15%

USA

France

Hong Kong

Nigeria

Thailand

Philippines

Jon, U

DATA INFORMATION

The data debate:

creating fairer value32 exchanges 60 51 45 20 15 between people and brands %

USA

France

Hong Kong

Nigeria

And the more clued up, the more suspicious

Thailand

Philippines

The data debate:

People are realising that every time they use their fitness trackers, buy something online, fill in a form for free WIFI or content, brands learn something more about them. The looming question is: “What am I getting in return for of people globally object to connected devices monitoring Indonesia 18% giving them my information?” their activities

OBJECT TO CONNECTED DEVICES MONITORING ACTIVITIES

22%

Kenya UK

54%

Hong Kong

59%

of people globally object to connected devices monitoring their activities

USA

What companies know about us is making people uncomfortable

18% 22%

And both motives and methods are being questioned

Indonesia Thailand

35%

of people globally are concerned about the amount of “40% personal information that companies have on them. Reeling from data breaches and a growing realisation that ‘free’ internet What companies about us services are in fact”paid for with own, personal data, people “ ourknow are carefully scrutinising what they get in return for handing over is making people uncomfortable their information. ” 40% of people globally are concerned about the amount of “ AROUND USEthat companies have on them. Reeling personal CONCERNinformation from data breaches and a growing realisation that ‘free’ internet OF PERSONAL INFORMATION ” services are in fact paid for with our own, personal data, people I don’t understand why brands want details beyond my email ID, and maybe address and credit card details if I am buying something. Why do they need to know whether I am married or not?

Unless you are a handyman and need to check I’m home for the appointment, why do you need my mobile number?

Amir, Indonesia

OPENNESS TO SHARIN INFORMATION FOR A

43%

Thailand

54%

Concerns about dat markets tend to be m personal safety while with privacy and ide what the right payoff

OBJECT TO CONNECTED DEVICES MONITORING ACTIVITIES

43%

35%

And these around th

People are concerned about brands accessing personal data or being able to ‘watch’ them, in the moment, even if it is to personalise their online experience. Whilst this concern is stronger in developed markets, it is only a matter of time before this is echoed in emerging markets.

People are realising that every time they use their fitness trackers, buy something online, fill And the more clued up, the more suspicious in a form for free WIFI or content, brands learn People are concerned about brands accessing personal data or something more about The looming being able to ‘watch’ them, in the moment, even ifthem. it is to creating fairer exchanges personalise their online experience. Whilst thisvalue concern is stronger question “What getting in return for in developed markets,is: it is only a matter am of time Ibefore this is echoed in emerging markets. people and brands between giving them my information?”

Kenya

54%

Hong Kong

59%

USA

Brazil

63%

Nora, Netherlands

I still can’t understand why many apps need access to my photos and messages? It sounds suspicious. Jon, USA

40%

are carefully scrutinising what they get in return for handing over their information.

And both motives and methods are being questioned

And these questions differ CONCERN AROUND USE around the world

OF PERSONAL INFORMATION

of global users are concerned about the amount of personal information that companies OPENNESS TO SHARING INFORMATION FOR A REWARD know about them

40%39

“

I don’t understand why brands want details beyond my email ID, and maybe address and credit card details if I am buying something. Why do they need to know whether I am married or not?

of people globally are open to sharing more information with brands online, if they were offered a reward in return

of global users are concerned about the amount of personal information that companies know about them Brazil

Nigeria

63%

60% USA

India

48%

Amir, Indonesia

”

“

Unless you are a handyman and need to check I’m home for the appointment, why do you need my mobile number?

Australia

41%

35%

51%

45%

32%

20%

15%

France

Hong Kong

Nigeria

Thailand

Philippines

Greece

“

12%

Jon, USA

People in emerging markets are happy to receive rewards or recognition for sharing data whereas in developed markets, people expect personalisation of communication, shopping experience, product, and rewards.

60%

51%

45%

32%

20%

15%

USA

France

Hong Kong

Nigeria

Thailand

Philippines

People in emerging m sharing data whereas of communication, sh

”

“

Nora, Netherlands

I don't mind filli Milo and giving they give me pro latest releases. I not do that for o

I still can’t understand why many apps need access to my photos and messages? It sounds suspicious.

Denmark

23%

India

48%

Concerns about data sharing differ around the world. Emerging markets tend to be more concerned with financial fraud or personal safety while developed markets are more preoccupied with privacy and identity theft. Brands will need to determine what the right payoffs are to overcome these concerns.

”

Maggie, Philippi

And the more clued up, the more suspicious “ “ I don't mind filling in forms for Nestlé Milo and giving them my details because they give me promos on their sales and latest releases. I trust that brand; I may not do that for other brands.

If the brand wants my dress size, I expect to see more customised content

from them – what styles suit me, and People are concerned about brands accessing personal data or not size 10 styles come up on my screen if I am a size 16. being able to ‘watch’ them, in the moment, even if it is to Maggie, Philippines Sophie, UK personalise their online experience. Whilst this concern is stronger in developed markets, it is only a matter of time before this is echoed in emerging markets.

” ” And the more clued up, the more suspicious

And these questions differ around the world

Marketers value exch

THE DATA DEBATE: 43% 39% FAIR VALUE EXCHANGES BETWEEN 43% PEOPLE AND BRANDS? Marketers must ensure the People are concerned about brands accessing personal data or OBJECT TO CONNECTED DEVICES value exchange feels fair being able to ‘watch’ them, in the moment, even if it is to Welcome Jon, MONITORING ACTIVITIES Marketers must reassess whether whatonline people get inexperience. return for personalise their Whilst this Here are your fiveconcern is stronger their data feels fair, and of benefit to them personally. Not only recommendations that,in but developed they must understandmarkets, what ‘fair’ meansit for is eachonly a matter of time before this is for today... market they operate in. echoed in emerging markets.

OBJECT TO CONNECTED DEVICES Five steps MONITORING ACTIVITIES to building trust with Show your hand of people globally objectPlay toup safety cues people and connected devices monitoring Be transparent and tell Be the brand everyone can their data people why you need their trust with a secret. Build in

their activities data in clear, specific terms

and how you plan to use their information. Doing this will reassure people and help to allay suspicions about what may be perfectly legitimate requests.

cues that showcase your high safety standards and ability to resist breaches. Find out what 'secure' looks like to people in your market whether that is social proof or third-party endorsements.

Marketers must reas their data feels fair, that, but they must market they operate

OPENNESS TO SHARING INFORMATION FOR A REWARD

18%

22%

Indonesia

of people globally are open to sharing more information with brands online, if they were offered a reward in return

Thailand

35%

Kenya

of people globally object to connected devices monitoring 54 % their activities

18%

UK Indonesia

51% OF MALAYSIANS EDGY ABOUT COMPANIES HAVING THEIR PERSONAL INFORMATION 54%

Stagger data requests

59%

As in all relationships, trust is built in stages. Drip feed data requests, starting with the safest and most relevant information, and work your way up. You’ll be rewarded with more honest and complete responses.

54% 54%

Offer the right personal benefit

Be ready to give back

People are more likely to share data about themselves if they know what’s in it for them. Seek to understand what a ‘fair’ exchange looks like, and make sure you deliver a culturally-appropriate incentive.

35%

22%

Hong Kong Thailand

USA Kenya

People will soon be demanding access to what their data says about them. Brands that are ready to share back processed data have the opportunity to help people live better lives, and ultimately develop more meaningful relationships with them.

Hong Kong

59% Connected Life

USA

And both motives and methods MALAYSIANS clearly don’t trust the companies. The Connected are being questioned

“

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“

”

Amir, Indonesia I don’t understand why brands want details beyond my email ID, and maybe

Five step to buildin trust with people an their dat

Life study of Kantar TNS shows that while Malaysians spend 7.2 hours online every day, the methods opportunity for brands to engage with them there is under threat, as consumers are mistrusting of

“

Unless you are a handyman and need to check I’m home for the appointment, why do you need my

Brazil

63%

online content and are skeptical of brand motivations. People are realising that every time they use their fitness trackers, buy something online, Indiafor free WIFI or fill in a form 48% content, brands learn something more about them. The looming

Nigeria

41%

Australia

35%

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23%

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need to check I’m home for the appointment, why do you need my mobile number?

”

Nora, Netherlands

Marketers must ensure the value exchange feels fair

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”

USA

Five steps to building trust with people and their data

ta sharing differ around the world. Emerging more concerned with financial fraud or e developed markets are more preoccupied entity theft. Brands will need to determine ffs are to overcome these concerns.

39%

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ing in forms for Nestlé them my details because omos on their sales and I trust that brand; I may other brands.

”

“

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s must ensure the hange feels fair

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ps ng h nd ta

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”

Be transparent and tell people why you need their data in clear, specific terms and how you plan to use their information. Doing this will reassure people and help to allay suspicions about what may be perfectly legitimate requests.

Be the brand everyone can trust with a secret. Build in cues that showcase your high safety standards and ability to resist breaches. Find out what 'secure' looks like to people in your market whether that is social proof or third-party endorsements.

Stagger data requests

Offer the right personal benefit

Be ready to give back

...45% OF MALAYSIANS ARE OPEN TO SHARING MORE INFORMATION WITH BRANDS ONLINE IF THERE WERE OFFERED A REWARD IN RETURN...

COULD MAKE “A WE TON OF MONEY

IF WE MONETIZED OUR CUSTOMER, BUT WE ARE NOT GOING TO TRAFFIC IN YOUR PERSONAL LIFE. I THINK IT’S AN INVASION OF PRIVACY AND PRIVACY TO US, IS A HUMAN RIGHT.

”

APPLE CEO TIM COOK TALKING TO MSNBC RECENTLY

Connected Life

Welcome Jon, Here are your five recommendations for today...

access to what their data says about them. Brands that are ready to share back processed data have the opportunity to help people live better lives,

Here are your five recommendations DATA for today... INFORMATION

Play up safety cues

devices (e.g. fitness trackers) question is: “What am I getting monitoring their activities. in return for giving them my Reeling from data breaches information? Show your hand Play up safety cues and a growing realisation that 51% of consumers in ‘free’ internet services are in fact Malaysia are concerned Be transparent and tell Be the brand everyone can paid for with about thewhy amount personal trust with people you needoftheir a secret. Buildour in own, personal data in clear, specific terms cues that showcase yourare highcarefully data, people information that companies know and how you plan to use safety standards and ability about and this number theirthem information. Doing this to resistscrutinising breaches. Find what out they get in will reassure people and help looks to return forlike handing over their is much higher than the global what 'secure' to allay suspicions about people in your market information. average (40%). what may be perfectly whether that is social proof legitimate requests. endorsements. Lai, CEO of Kantar’s Concerned about brands or third-partyMC Insights Division, Malaysia, accessing their personal commented, “The rapid evolution data or being able to ‘watch’ of technology is enabling brands them, in the moment, even if to develop better, smoother it is to personalise their online customer service experiences, experience. Malaysians are but poor deployment or a becoming increasingly cautious failure to meet basic needs about the information they share Offer the right personal benefit Be ready to give back can erode consumers’ trust online, with 2 out of 5 consumers and confidence in brands. We in Malaysia object to toconnectedPeople will soon be demanding People are more likely share data about themselves if they know what’s in it for them. Seek to understand what a ‘fair’ exchange looks like, and make sure you

Show your hand

of people globally are open to sharing more information with brands online, if they were offered a reward in return

markets are happy to receive rewards or recognition for s in developed markets, people expect personalisation hopping experience, product, and rewards.

ines

Welcome Jon,

Marketers must reassess whether what people get in return for their data feels fair, and of benefit to them personally. Not only that, but they must understand what ‘fair’ means for each market they operate in.

e questions differ he world

NG REWARD

ISSUE219MID-APRIL2018

find that people describe trust in brands in the same terms as they would describe trust in humans. If brands want to have ‘conversations’, and in general, be more human-like, then they need to be more human in other ways too.” Malaysians are becoming increasingly aware of the price they are paying for their connected lifestyles, and many feel on the losing end of an unfair exchange, expecting a fair trade now. 45% of Malaysians are open to sharing more information with brands online if there were offered a reward in return. The findings also show that Malaysians have more trust on global brands over local brands. What’s more, only 34% of Malaysians trust what people say online. Despite the speed and convenience that new-aged technologies bring, Malaysians are reacting differently towards the use of mobile payment, online

and offline customer service, and chatbots; While about 40% are open to using technology powered services, 1 out of 3 would object to using one and a similar number (1/3) are fence sitters. ABOUT CONNECTED LIFE Connected Life is Kantar TNS’s annual study of digital behaviour, conducting quantitative interviews with 70,000 consumers across 56 countries and over 100 qualitative interviews across 12 countries. In Malaysia, 1032 quantitative interviews were conducted. Fieldwork was conducted from May – August 2017. Study content includes: media consumption, device infrastructure, digital activities, purchase (online and offline), respondent profiles, brand engagement touchpoints, drivers of eCommerce, deep dive into social networks, and attitudes to brands and technology.

IF YOU ARE NOT “ABLE TO MANAGE

YOUR PLATFORM TO SUPPORT THE STABILITY OF INDONESIA THAT MEANS YOUR INTENTION TO BE IN INDONESIA IS NOT FOR BUSINESS, IT’S FOR SOMETHING ELSE

”

INDONESIA COMMUNICATIONS MINISTER RUDIANTARA ON HIS THREAT TO SHUT DOWN FACEBOOK

NO SINGLE “COMPANY,

GOVERNMENTAL OR NON-GOVERNMENTAL ACTOR, SHOULD BE THE ARBITER OF TRUTH.

”

KATHLEEN REEN, TWITTER’S DIRECTOR OF PUBLIC POLICY FOR ASIA PACIFIC.

ISSUE219MID-APRIL2018

DATA AND YOU

The recent exposé of Cambridge Analytica, a fast rising British analytics company and their practice on political manipulation has created grave concerns over ethics. In a video secretly filmed by Channel 4, they exposed top management of the company disclosing dirty tactics used to defame and create entrapment for opponents, so that these political clients can step up by stepping down on their rivals. Another article published by The Guardian, uncovered details on how Cambridge Analytica hijacked at least 50 million Facebook profiles using apps that could crawl and capture the details of a person and their friends in the background for political experiments. To be honest, a lot of the ‘theories’ spoken by Christopher Wylie (former Data Scientist), Alexander Nix (CEO) and Mark Turnbull (MD) of the company have become true practice for commercial usage. We analyse vast amount of data to create audience segments with specific personas. We will know what each of them like, dislike and then send out appropriate messages at the right time, right place that have the highest chance of receptivity. From 1,000 personas, we can model lookalikes and extrapolate them into 1 million personas, easily reached on Facebook or on any other targetable platforms. Sounds familiar?

CREATIVE EXPANSION

DATA AND THE DELUSION OF DEMOCRACY? So when the news broke, I was stumped and obviously disgusted considering Cambridge Analytica is most likely commissioned by the richer but weaker parties to run their political campaigns, using the very same practice that we have been evangelizing for a good few years – even before mass personalization at scale was truly feasible. But when I researched further into the practice of this political consultancy, I realised that what we normally do in commercial practice is positive targeting, i.e targeting segments that are positive to us by selling different aspects of the product/ service, they focus mainly on negative targeting, i.e using fake news or running a smear campaign on political rivals on segments that are appearing negative to them. I will not defend the practice just because I understand it as I believe there can only be great improvement in customer and brand experience when it is designed with data in mind. But at the same time, there’s no disagreeing on the grey matter in the room which is perception manipulation. Honestly, I’d like to hear from the marketers themselves who in this case are also political voters, fathers,

mothers, brothers, sisters, sons and daughters. Because the dark side of data has finally yield its head. There’s no denying that while the exposé on Cambridge Analytica campaigns is rather extreme as compared to selling chocolate drinks to different kinds of moms, which pales in comparison – nevertheless the principle remains the same. So instead of the world calling out for political ethics, we should instead be crying out for data ethics because we all know there’s no such thing as ethics in politics. But data ethics encompasses a much larger picture because it needs to protect the people from false manipulation. The internet is not evil, at least depending on who’s using it for what purpose. Likewise, data is not evil. It is how we use data that really matters. Without some kind of regulation by oneself or an independent group, the crux of the matter will not resolve itself. Is it not possible? Well, everything is impossible till it’s done. With amounting social pressure, both Facebook and Google have to be more vigilant in distilling real and fake content – successful or not, we don’t know yet. But at least that’s one step towards ensuring users are

protected. But of course, there is always a group of people who will oppose to any kinds of ‘controls’ citing fairness and ironically, possible manipulation if such measures were in place. But can we afford another political tsunami or social unrest just because a few men decide to have a lucrative exchange between money and data? Data is powerful and with great power, comes great responsibility. Since this exposé, I’m sure everyone has the same thoughts in their head so let’s just call out the elephant in the room. Are we also guilty as charged for commercial usage? Where do we draw the line between using data to inform better experience and for perception manipulation? I recalled the interview between The Guardian and Christopher Wiley, data scientist of Cambridge Analytica – the interviewer asked, “Did you realise what you were doing?” to which he replied, “I couldn’t know, we were just so focused on getting the data”. In all honesty, I could relate to that. Which is why, in our obsession with data, we must must must always consider two other points of view – security and legality. And when we decide to breach the latter two for the

creative excellence, innovation, collaboration and a desire to deliver the very best to our clients. For these reasons, their

business is a perfect fit for us, and hence there’s no need nor desire for us to change the things that have made DTT so successful. We will continue to expand our global business by maximizing our synergy,” said Shuzo Yamada, Corporate Officer of AOI Pro., who is also the Executive General Manager of Group Overseas Business and Global Business Dept. AOI Pro. is an allencompassing communications production company. Their strength lies in the ability to access a worldwide network of creative talent and services. Along with numerous group companies inside of Japan, AOI Pro. has group companies across the globe including Beijing, Shanghai, Bangkok, Ho Chi Minh City and Jakarta. As a fully integrated network that has embraced and mastered new technologies and the everchanging media landscape, AOI Pro. Group offers much more than just Film Production and support. This includes VR, AR,

greed of the goals then that’s where I think we have crossed the line. So if you ask me, I think there is a huge difference between exercising this practice for commercial advantage and for political exploitation. Cambridge Analytica has openly identified its involvement in Malaysia’s 2013 elections and is rumoured to be reengaged this year. With this kind of sensational discovery, naturally everyone puts on their little Sherlock hat and that includes myself. Last website check, they confirmed a branch in Malaysia which strangely points to a residential address in Kota Damansara. This could have been my neighbour. The elite now, might be more attentive in differentiating the fake from the truth but can the mass who have no idea on what’s happening be able to discern these fabrications? Can we ever outsmart data or at least the manipulators? God save Malaysia.

Sue-Anne Lim Independent Strategy Consultant

AOI PRO ACQUIRES MAJOR STAKE IN DIRECTORS THINK TANK

AOI Pro., one of the largest production companies in Japan, has announced the acquisition of a major stake in leading SE Asia production group Directors Think Tank (DTT). The move adds some serious creative firepower to the AOI Pro. Group network’s already impressive offering, and strengthens their business across the region. DTT Founder and Director, Rajay Singh said, “AOI Pro. Group has greatly impressed us with their creative vision, business acumen and willingness to grant us the freedom to continue to do what we do best. Joining AOI Pro. Group allows us access to even more creative talent, global support, tools and technology. The team and I are hugely enthusiastic about the new opportunities that will arise from working with the AOI Pro. Group’s global network and the unique creative services that we can now offer our clients.” “This merger of AOI Pro. Group and DTT Group will only

enhance our creative global vision and ambition for the region as we both share many important values, including

Rajay Singh DTT Founder and Director

design, interactive/digital/ social media planning and postproduction. Directors Think Tank was established in Malaysia in 2007, but has since gone on to open successful offices throughout SE Asia including Singapore and Indonesia. The highly respected and regarded full-service production company has won multiple awards, and in 2017 was one of SE Asia’s most awarded production company. Within the DTT group, there is also production service company ‘The Tankers’.

ISSUE218MID-APRIL2018

CMO-CEO

WHY DON’T MORE CMOs BECOME CEOs? by Damien Cummings - CEO, Peoplewave

WHY ADVERTISERS “NEED TO SUPPORT I’ve spent over 20 years in marketing in one form or another but last year I took the plunge to move out of a prestigious corporate career into the start-up world. In a little over a year, I’ve gone from a corporate marketer to a marketing-led CEO working with a team of 20 amazing employees at Peoplewave (a cloud and blockchain HR software company). The difference, from marketer to CEO, is immense (even if it’s at a smaller company) but definitely possible. It begs the question though – why aren’t more CMOs becoming CEOs? Last year, executive recruitment firm Korn Ferry surveyed this* and found 53% of executives said their current CMO could one day become CEO. “Could” not “would”. The potential is there but there still seems to be a big gap to making the leap to business leadership. So what’s going wrong for the ambitious marketer? Here are some of the top issues and challenges that marketers need to conquer: 1. Marketers need to learn a new language. Unfortunately, marketers tend to speak in their language. Brand, brand value, consumer sentiment, reach, frequency, and digital jargon like impressions, CTR, engagement all make sense – to only the marketing team. No one else in the C-suite has any real idea what this means. CEOs and business leaders like talking in financial language. Revenue, profit, margin, costs (and cost cutting!) are the language of how most senior leader discussions happen. 2. Marketers are still not data-driven enough.

Marketing has gone through a massive and rapid revolution. The industry is trying to balance creative ideas with the increasing requirement to be numerate in media and in the results of marketing. The skillset of marketing is inherently more skewed towards the right brain – creative and emotional. CMOs have to get as comfortable talking about the direct link to ROI from media and marketing as they are about the “big idea”. They need to lead technology and digital transformation. CEOs are falling behind in this area and they are looking for an advisor in their team that can navigate the world of technology. Most companies are navigating their version of a digital transformation, whether it be a new go-to-market plan (e.g. e-commerce) or digitising their products or simply keeping up with what’s new (blockchain!). The CMO is in an ideal position to provide this advice to the other members of the executive team. Building a following around digital and tech leadership is a great step towards the CEO role. CMOs must build stronger relationships and break down silos. Good CEOs are relationship and consensus builders. CMOs have a natural advantage here, as more often-than-not they are people-persons. Marketers are great at building relationships, but this is usually with agencies, media partners and with the industry. It’s unusual

that many marketers (at all levels) neglect to forge strong internal company relationships. If you’re aiming for CEO, it’s important to get the support of other department heads such as sales, product, HR, IT and the CFO. Do they want it enough? Maybe marketers have seen how hard the CEO job is and they don’t want it? They’d probably do an amazing job but the question is really whether they want it or not. This must be the case, otherwise we would be seeing many more marketers taking over the CEO role.

THE PRESS: WHO ELSE WOULD HAVE BROKEN THE FACEBOOK/ CAMBRIDGE ANALYTICA STORY? YAHOO? BOB HOFFMAN, ADCONTRARIAN

”

The leap from CMO to CEO is possible but it’s going to take a change in focus and building on more than just impressive marketing campaigns. I’d love to see more marketers make the move to become marketing-led CEOs! *Source: https://www.kornferry. com/press/korn-ferry-survey-topmarketers-gain-influence-andvisibility-in-the-c-suite/

NEXT TIME YOU SEE A BIG “HEADLINE, REPLACE THE Damien is a digital disrupter and change agent with over 20 years’ experience in marketing and digital transformation. He has been honoured with “Global Top 50 Digital Marketing Leaders 2016”, “Financial Services Marketer of the Year 2016”, “Digital Marketer of the Year 2016”, “Most Influential CMO 2015”, “Marketing Professional of The Year 2012” and the “Brand Leadership Award 2011”.

WORD ‘AI’ WITH ‘COMPUTER PROGRAM’ AND SEE WHETHER IT’S STILL EXCITING.

”

DR ROGER SCHANK NORTHWESTERN UNIVERSITY, USA.

ISSUE219MID-APRIL2018

CLIENT-AGENCY RELATIONSHIPS,

EFFECTIVE MARKETERS

IS THE LOVE LOST? IN THE AGE OF SUCH DIGITAL DISRUPTION, THE STAKES ARE HIGHER THAN THEY’VE EVER BEEN. AGENCIES THAT CAN NAVIGATE THE MURKY WATERS OF BUSINESS, COUPLED WITH THE CREATIVE USE OF TECHNOLOGIES ARE THE ONES WHO WILL BE MOST VALUED BY MARKETERS.

IT used to be simpler for with memes getting more views marketers to measure their love than magazines and userfor their agencies in the past. generated content being sought Evaluation parameters were after over advertising. straight forward with creativity (and recognition through awards) 2) Technology as a disruptor: being at the forefront. In the Whether it’s travel or last few years, other criteria like finance, there is no category return on marketing investment, that has remained untouched use of digital and multi-channel by disruption. Many CMOs are used tomarketing be simpler tospending measure love for their agencies in the past. Evaluation have for beenmarketers added moretheir on technology to the list. Today, however, the with than their Chief(and Information arameters were straight forward creativity recognition through awards) being at the parameters have evolved further Officers (CIOs) or Chief refront. In the last few years, other criteria like return on marketing investment, use of digital and are becoming even more Technology Officers (CTOs). How nd multi-channel marketing have been to the list. Today, however, the parameters have complex. then added can agencies be immune to these dramatic shifts? volved further and are becoming even more complex.

Client-Agency Relationships, Is the love lost?

The reason is two-fold: he reason is two-fold:

Marketers are hence

www.rthree.com

like Burberry are adopting the See-Now-Buy-Now approach, where collections are available for sale immediately after appearing on the fashion runway. With more content making its way onto social channels vs. TV stations, agencies need to www.rthree.com shorten their time and streamline their processes to get to market faster with their work. 5) Constant Innovation Mastercard Asia Pacific’s route to innovation was to invest in an ecosystem of partners and play a lead role in in ensuring integration amongst them. The Mastercard Digital Engine was developed to provide value to the issuers, merchants and consumers by providing the right offers at the right time. Coupled with the philosophy of learning from mistakes and constantly improving, innovation took centre stage at Mastercard.

re-examining lens 1) The rapidly changing and through which they ever-fickle consumer: The rapidly and ever-fickle consumer: The world’s largest advertisers* are P&G, view agencies. Thechanging world’s largest nilever and L’Oreal, while Fortune’s most admired companies for 2017 are Apple, Amazon, advertisers* are P&G, Unilever and L’Oreal, while Fortune’s most Top five evaluation arbucks. This highlights the big divide between media spends and consumer preferences, and admired companies for 2017 are parameters for marketers today: Global CMO. http://globalcmobook.com/ ith the rise ofAmazon, eCommerce, access to global brandsSource: has R3 increased exponentially. Apple, Starbucks.consumers’ This Source: R3 Global CMO. http://globalcmobook.com/ heir content consumption habits are undergoing tremendous changes, with memes getting highlights the big divide between 1) Together we stand media spends and consumer With the agency world ore views than magazines and user-generated content being sought after over advertising. In the age of such digital disruption, the stakes are higher than preferences, and with the rise becoming hyper-fragmented and are not moving the needle for need is for everyone to not only of eCommerce, consumers’ over-specialised, a marketing they’ve been. Agencies navigate thethe murky waters of the can business, youYORK will lose well with each other NEW Technology as a disruptor: Whether it’s travel or finance, thereplay isever no category thatbuthas that In the age of such digital access to global brands has director today is working with job.” So naturally marketers’ play to win. Agencies that are disruption, the stakes are higher business, coupled with the creative use of technologies are the ones mainedincreased untouched by disruption. Many CMOs areagencies spending on technology than theirrequirements Chief exponentially. Their an average of 8.7 per more from their agencies collaborative and can work with than they’ve ever been. Agencies content consumption are Technology R3’s global proprietary whoHow will be most bybe marketers. formation Officers (CIOs)habits or Chief Officersstudy (CTOs). then can valued agencies have evolved to include return multiple partners will stand to that can navigate the murky undergoing tremendous changes, Agencyscope. What clients on investments and business gain. Instead of turf wars and LONDON mmune to these dramatic shifts? waters of business, coupled with growth. In the FMCG category, land grabs, it’s imperative for the creative use of technologies agencies need to be at least agencies to use best-in-class Seema Punwani is Partner at R3 Worldwide, a global consulting firm are focused the onesonwho will be most partially accountable for salesand their agencies skills and combine forces. improving the effectiveness and efficiency of marketers valued by marketers. and for B2B SHANGHAI for lead generation. In R3’s latest book, Global Source: R3 Global CMO. CMO when speaking about the http://globalcmobook.com/ 3) Leveraging data rise of new players in the agency Agencies need to learn to space, Meredith Verdone, Chief * Ad Age Data Centre- By 2015 SAO PAOLOof being befriend data instead Marketing Officer of Bank of total worldwide advertising wary of it. This task should not America says: “I think that whole spending. * Ad Age Data Centre- By 2015 total worldwide advertising spending. be left to analysts and data industry is being disrupted and scientists, but all players on agencies are trying to find their ** Interview in Marketing Interactive http://www.marketing-interactive.com/priceless-for-17-years-whats*** #AsiaCMOBook. Tapping on SINGAPORE next-for-mastercard the agency team – including way. You’ve got publishers now the wisdom of thirteen Founders, creatives- need to understand acting as agencies and they have and CEOs, Asia CMO *** #AsiaCMOBook. Tapping on the wisdom of thirteen Founders, CMOs and CEOs, AsiaCMOs CMO book explores and use data to create their full creative capabilities. You’ve book more explores what has driven brand growth in Asia in the past, and what we can expect in the future. Read at what has driven campaigns. Furthermore, a got brands that are also content http://asiacmobook.com brand growth in Asia in the past, BEIJING test and learn mindset needs creators. Then you’ve got all and what we can expect in the IMPROVING THE EFFECTIVEN to be developed for continuous these new entrants—whether it’s future. Read more at http:// optimization. In R3’s book, Asia the Accentures, the Deloittes, or & EFFICIENCY OF MARKETER asiacmobook.com CMO: Driving Brand Growth***, the McKinseys all getting in who Karen Ngui, Managing Director are either digitally focused, data 3 focused, or creative focused. Now and Head, Group Strategic Marketing and Communications, that everything is digital, what called DBS a ’20,000 employee happens with your traditional start-up’. This kind of thinking agency? lead to DBS being named the World’s best digital bank in 2016. 2) Driving business results 4) Speed to market Expectations from marketing Consumers today are teams within the organizations impulsive and in pursuit of have changed. Raja Rajamannar, immediate gratification. It’s the Mastercard’s Global CMO said in Seema Punwani is Partner at R3 Worldwide, a global consulting firm focused on IWWIWWIWI generation (I want a recent interview, “It is critical Marketers are re-examining the lens through which they view agencies. improving the effectiveness and efficiency what I want when I want it). marketing people have a solid Even high-end fashion houses of marketers and their agencies business perspective. If you

arketers are hence re-examining lens through which they view agencies.

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