GOVT COULD TAKE A LESSON IN COMMUNICATION FROM COMMERCE

The Nation , Monday, July 13, 2009 

It is six months since this government took office facing daunting tasks, and the road seems long. Prime Minister Abhisit Vejjajiva, despite the polls, deserves credit for his leadership. It's cold and lonely at the top. 

One must not forget that at those altitudes national success and failure are finely measured, and simple mistakes kill. 

Up there in the present economic chill his team emulates the highest-performing organisations, where a worse team would wallow in dysfunction. 

Should one venture to take issue with the polls, they reflect between the lines on significant finding, which to me is very obvious : that people do not really distinguish the news in the dailies and weeklies pertaining to the actions of the government from its actual achievements. 

This is not the fault of the pollsters or the questionnaires. 

It's all about marketing-communication strategy in its highest form done effectively !

In our overcrowded information society, the people want to know the results, and results relevant to their hopes, their dreams ; the clamour goes up from the streets for evidence of change in the tangible form. 

The challenges facing the government after the budget debate will sep

arate the prime minister on his summit from the charlatans in his leadership. 

Once policy is set, this government must make sure that steps towards improvement and expectations ate being communicated properly and concisely in the language of the streets. 

It must not sing the sweet music of hope in the people's ears, but simply tell them the truth. 

As it is, most of the weaknesses lie in the indecision and compromise which, sadly and disappointingly, are turning the economic battles of all Thais into political-faction strife among a few political warlords who will risk and tarnish the country's image further. 

Public relations is not strategically places to sound a central theme vital to effective change for the better.  The good news is not surfacing.

At the highest level, what one needs is simply a back-to-basics theory of inte

grated marketing communication. It seems the disintegrated channels created by government agencies are overburdening the public mind : scarcely any effectively target the truth behind their messages. 

Marketing communication at its highest level requires the skill of inspiring perseverance. 

Government leaders must not mistakenly focus on motivational speeches and backup materials to get people past the difficulties. 

People want more : they want "the truth" no matter how hard it may sound.  Political

 and business leadership abounds in grey areas and perceived corruption.

The government must manage the emotions of the people to instil perseverance a

nd belief in what the prime minister is saying decisively and directly, without any shilly-shal-lying. 

Creating belief is the art of mastering the truth.

This government badly needs to show the public and the coalition alike that the prime minister is maturing into a young leader of the first water who can be counted on. 

Leadership demands fast action and accountability. 

In machiavellian terms, he must be able to balance the control of his team members, despite obstacles and resistance in the marketplace or in the political and marketing battles of mind. 

At stake is our image as a country and a brand in the world arena. 

There are millions out there who truly "believe" in the prime minister and the new government. Furthermore, there exits no resistance from the media to change. Thus if the government fails to get its act straight and continues with its present communication strategy, the momentum will shift, and so will the media paradigm. 

Let's hear some good news and let the truth unfold. Private firms turn out new products, new brands and brand extensions or new services every week : watch the commercial breaks, see the new TV commercials and the ads in the newspapers. Why can't our leaders on high do the same ? 

Kitti Chambundabongse 

HIKE IN TAXES WILL HAVE IMPACT ON INDUSTRY AND CONSUMER

THE NATION - MONDAY, May 25 , 2009

The lastest government measures for raising extra revenue from petrol, alcohol and cigarette tax will certainly impinge upon manufacturing, marketing and advertising strategy.

On the plus side, the government is raising money to create jobs. Yet consumers will have to shoulder a heavier burden. Retail price will be increased, resulting in a possible slow-down in sales, unfavorable in the current economic conditions. 

From both macro and micro points of view, marketing and advertising will need rethinking to maintain market position and brand share against more intense competition. 

One strategic model is to simplify organisation and increase creativity and innovation in every marketing and advertising mix. 

Taxing economy products at the manufacturing level is tantamount to taxing consumers. Someone has to share the burden. 

The new tax structure will force price increases not only alcoholic drinks but on general consumer goods like food and other necessities as higher fuel tax will lead to higher logistics costs. 

Apart from a new mindset, marketing and advertising departments will have to work harder to cope with these drastic changes in price structure and adjust retail pricing strategies. 

Advertising will see the need not to create advertising that is designed ju

st to entertain, but rather put more focus on r

eaching core targets with impactful messages and less waste. 

Sound marketing and advertising judgement will have to be based on reality, not perception. Consumers today make decisions on the information they receive. One must take into account that for some years Thai consumers have not been assailed with good news, political or commercial. 

In 2009 we are seeing a yet worse scenario, one of world recession and a questioning of the capitalist system in the face of burst bubbles created by top world companies' management teams. 

RECOVERY IS NOT IN SIGHT : POSITIVE SIGNS IN SOME SECTORS SUCH AS EXPORT ORDERS AND STOCK-MARKET REBOUND DO NOT REFLECT FUNDAMENTAL ECONOMIC RECOVERY. 

The challenge to an accountable leader with the sense of direction in running the company can be very daunting. 

The most closely mistakes in business can be attributed to companies or CEOs like myself that try to predict the future. The changes that are affecting us all, be they politics, tax, swine flu or price hikes, prove that one simply cannot do so. 

If i were to try, the changes are that I would be very wrong. The future is not obvious any more. 

With the business and political worlds getting more complex, enough quiet time to sort out what to do is fast disappearing, Finding the obvious requires time to think, and perhaps this government should look further into the future where tactical measures can be modified into long term measures to increase the happiness index. 

Price increase resulting from the new taxes will not have businesses, consumers or the grass roots laughing all the way to the bank 

Kitti Chambundabongse 

IN CHANGED LANSCAPE , IT'S BATTLE FOR CONSUMERS'HEARTS AND MINDS

THE NATION

Monday, June 15, 2009

In turbulent economic times, the key question facing marketers is, "What is my priority - increasing market share or improving the level of engagement with consumer target groups?"

The changed conditions confronting consumers open up opportunities for marketing and advertising companies to shift paradigms and adapting strategies to consumers' fast - changing behaviour.

Daily, the media churn out reports on the volatile stock market - and new facts of our government's deeds, particularly those of Prime Minister Abishit Vejjajiva, who is determinedly sticking to his guns on his prescriptions for the economy. Day and night, his concern is for the peace and welfare of the masses.

So far, the premier has been unwavering in terms of his positions on the key issues, his sincerity honesty and - most apparently - his energy and willingness to engage with the Thai Public and the World, and demonstrate his belief that things will

be alright in our beloved country.

Similarly, smart companies are busy gathering "street smarts" on how consumers are actually living day-to-day and on their concerns about the future.

Smart businessmen adjust their strategies to strengthen the bonds between consumers and brands. Their ideas are led by consumers attitudes, purchasing behaviours and saving habits.

Corporations and brands gain a for

midable advantage, and see both short - and long term pay-offs, through connecting and reconnecting with the consumer.

The only works, however, if the process of connection is relevant to the consumer, creating not only a mental connection but also an emotional link with the brand.

Relevance doesn't mean strong-arm sales tactics, however. Creating empathy and a sense of shared concern requires simplicity and sincerity in a firm's public relations and advertising strategies.

Pampering consumers using simple language triggers the desired brand choice and a "love-you" attitude. Use the gentle"KISS" (

Keep it simple, stupid! ) strategy.

To cite a few samples, brands like Toyota, Toshiba and Siam Cement Group have invested in a social marketing strategy by embracing the green concept and launching environment-first campaigns.

The same goes for the marketing campaign for M150 energy drink, with its "thinking outside the box" theme, which pushes the idea that this brand is participating in efforts to help relieve consumers hardships.

Recession create an opportunities to shake up the status quo. Companies and brands that don't are vulnerable to broadsides from competitors.

Managers must be in "pre-emptive mode", acting with speed and using the most effective tools to connect with consumers.

Companies like Tesco, DTAC and 7-Eleven, among others, haven't missed a beat in being perceived as part of the government's efforts to restore the economy and generate domestic spending.

Strategically speaking, marketing and advertising executives need to create a new industry landscape that matches the one that consumers now inhabit.

Strategies that emphasise empathy, sharing and caring must be implemented consistently with the aim of increasing a brand's "share" of consumers' hearts and minds.

Consumers love to be surprised - as long as those surprises are consistent with their own needs and concerns.

Kitti Chambundabongse

THAILAND BACK ON TRACK : THE TIME IS RIGHT FOR A NEW BEGINNING

THE NATION

Monday, December 22 , 2008

These past few days have marked yet another change in our leadership which crucially affect Thailand's brand image.

The new Prime Minister's acceptance speech echoed the promise to local people and the world that our brand will be relaunched soon.

The past two years, and 2008 in particular, have done quite some damage to our credibility, our law-and-order system, our services, our goods and our commitment to live up the democracy.

They have also affected our character as a land of smiles, a peace-loving and mai pen rai place, which had been nurtured over the decades.

Our young new prime minister made sincere, convincing and fresh basic promised to the public and the world.

They brought palpable relief along with the anticipated new Cabinet mix as a team to restore and rejuvenate Thailand's brand image.

Now, so long as no tanks roll into the streets, we shall witness Thai democracy at its best, the amazing Thailand way.

The political battle was won by a new coalition, but the war has not been won yet in economic terms against the backdrop of world recession and more intensified competition in the red ocean of global free trade.

Our neighbours are moving ahead with the world as our growth engine becomes sluggish. We must improve our competitive positioning.

Redemption is in the hands of new government. We must do it today!

What's at stake is our country. The prime minister will find it a daunting task to manage and create change to turn our country's image around.

Key to success will be his leadership ability to rise to the challenge as a dynamic multitasker with unbiased dedication that will be the making of Mark ( his nickname ) and make his promises come true quickly.

His action must speak louder than his words. The power is on his side, and so is his team and youth, but time is running out. My advice to him is to make the next two weeks a festive season of positive change, when peo

ple can celebrate and unify for the love of their country, their King and their rights.

It's a New Year mode. I want good news for a change, to make Thailand sing a happy tune to welcome world travelers and investors, to revisit the campaign of "Welcome to Thailand and Feel the Changes"... yes, the changes, because over-the-top promises like Amazing Thailand do not go down very well with the international or Asian communities or the locals.

The Asean Summit is going to be a "People Summit", according to the Thai Asean secretariat ; the event itself the global dialogue session will be living proof and a cornerstone of "Welcome to Thailand and Feel the Changes". Let's make it happen here.

We owe the airlines and international travelers an apology for the takeover and disruption at the airports. Last but not least, we owe

all Thais more than an apology. We owe them hopes and dreams and opportunities for a better life, and most of all we owe ourselves the pride of being Thai.

Kitti Chambundabongse

PLAN FOR GROWTH OR PLAN FOR SURVIVAL IN THESE TOUGH TIMES

THE NATION

Monday, March 30, 2009

While growth is the top priority for companies of all sizes, it can be extremely difficult to create and maintain, particularly in today's competitive environment and overall economic climate. The global recession makes it even more difficult.

The latest case of Spa Advertising, historically an inhouse agency of one of the largest and oldest conglomerates, Osotspa, merging with Thai Hakuhodo, one of the oldest agencies in Japan, drew attention to the question of whether this was a strategy to survive or strategy for growth.

Merging of business during recessions, economic difficulties and times of pe

ssimism is one of the traditional survival options of businesses.

Corporate mergers and rebrandings of this nature happen during economic upturns and boom periods as well.

The move depends on the stakeholders' policies, which normally mirror the ambitions and vision of the management. In Spa Hakuhodo's case, both parties admitted that the project was a long-term growth strategy initiated by their respective future co-marketing units.

The firms worked on the plan for almost three years prior to its realisation.

Both Spa Advertising and Hakuhodo have maintained consistent growth patterns, so the rebranding of Spa Hakuhodo as a single brand among the Thai top 10 should make the company more competitive and superior in terms of value creation for both stakeholders.

In each business sector, growth has its limit where clients and brands change agencies like underwear, particularly in service industries like advertising.

Many independent Thai advertising agencies face a tough task sustaining growth.

Many Thai companies were conceived and grew into medium-sized enterprises with good reputations later found themselves being bought out by top global networks and merged into a single multinational brand.

Thus, ending their entrepreneurial heritage, family-owned majority shareholders turn themselves into minority shareholders in bigger companies.

The benefit is that return on investment can exceed levels achieved by remaining a 100 percent Thai-owned firm whose growth is limited.

Such local firms can easily be left behind in the fast-changing competitive landscape.

Unless, of course, the owner is a contented entrepreneur for whom aggressive growth ad competitiveness are nit priorities, and in whose dreams being in the top 10 does not figure. Some of these types are happy to maintain the status quo.

Given the global recession , the question of "survival strategy or growth strategy?" will be with us for a few years to come.

In 2009, with pessimism prevailing, consumers are reluctant to spend, impulsive buyers will buy less and shoppers tend to make more rational decisions, stronger brands definitely have an edge over weak brands in image and quality perception.

Below-the-line ideas help tremendously in sales, but comprise a short-term tactic.

Above-the-line brand-building is still needed, even more in these dark economic times, to persuade consumers to opt for one's brand over the others.

Last but not least, a management and marketing tip: You can judge how good a company is by the brands they have in their portfolio.

Good brands outlive their creators : They speak well of their companies, their marketing management, their lifecycle - and most of all, their valu.

Shop well with your Bt 2,000 cheque to help our economy.

Kitti Chambundabongse