The A-Team Concept

This 10-seconder video is produced for Archikonst's digital billboard along Tomas Morato Avenue in Quezon City. 

Product demo for Rehau sans script (Unofficial)

Rehau is a leading provider of polymer solutions worldwide, supplying products to the construction, automotive, and industry sectors. In this product demonstration, Archikonst, the Philippines' longest-running architecture and construction magazine, chief editor Ludwig Ritchel A. Kalambacal is showing to a select audience Rehau's top-of-the-line Ludewig-designed roller shutter, called Climber, for kitchen cabinet. Its motion-sensor and automatic features bring great convenience and comfort to its target end-users. Truly, a luxury to behold! 

This product demo was conducted inside Blum Showroom in Shangri-La Manila located along Ayala, Avenue, Makati City. The Rehau Ludewig Climber is being distributed and marketed by Deepe Marketing Corporation. 

The launching of SCG Elite Card

Leading Southeast Asian business conglomerate, Siam Cement Group (SCG), officially launches a pioneering product specifically for architects, interior designers, and contractors in the Philippines—the SCG Elite Card. 

The launching event dubs as "The Red Launch: A toast to convergence and unveiling of SCG Elite Card" is held at The Rockwell Tent in Makati City. Celebrity performers include Juris of MYMP, K Brosas, Rox Puno & Band, PYT, and Angel Jacob as host.

Graced with guests comprised of luminaries from the architect and interior design community, developers and contractors, and other distinguished guests from the industry, the launch of the SCG Elite Card also celebrates the partnerships of SCG in the Philippines.

The SCG Elite Card is an exclusive loyalty program that is open to all interested architects, designers, contractors, and companies who specify or purchase SCG products such as Mariwasa, CPAC Monier, and SCG Marketing. As they continue specifying or purchasing SCG products, more points are added to their card until such a time they will be able to redeem exciting and more valuable rewards ranging from the latest gadgets to foreign travels.

Online registration will start on January 1, 2013.  Specifiers are encouraged to sign-up at www.scgelitecard.com. An e-mail notification will be sent to all qualified applicants to confirm their membership to the SCG Elite Card.

Jakkrit Suwansilp, Vice President for Sales and Marketing of Mariwasa Siam Ceramics, and host Angel Jacob unveiled the SCG Elite Card.

Powerlines: Words that Sell Brands, Grip Fans, and Sometimes Change History

Here's an interesting stuff published by Bloomberg Press in June 2008 entitled Powerlines. The hard-bound book tackles some of the most memorable slogans or tag lines of recent years, such as De Beer's “Diamonds are forever” and “Just do it” by Nike. Its author, Steve Cone, has been a marketing professional for more than 35 years, who has worked with global top brands like Apple, Citigroup and American Express. He is currently the Chief Marketing Officer for leading marketing technology provider Epsilon. In the book, Cone identifies the factors behind the slogans or tag lines that work. He explains how they can be made to stick in the minds of consumers and affect their purchasing behavior. If I have to give one tagline or slogan that creates an impact for me, I would say that Lexus' advertising slogan "Whoever said money can't buy happiness isn't spending it right" sticks to my mind the most. The tagline provides me another perspective about money and investment. The tagline further change my perception when it comes to car. Before, my top-of-mind brand for luxury car models was Mercedes Benz; but nowadays, it's already Lexus. On a personal note, I think there are some local brands that I think must be mentioned in the book. San Miguel Beer's (SMB) "Iba ang may pinagsamahan", which was first delivered by no other than the King of Philippine Cinema, the late Fernando Poe, Jr., in several SMB's TV commercials that he did during the '80s, is one tagline that embodies a Filipino spirit -- the bayanihan. No wonder, it became the leading and most well-loved beer in the Philippines, not even the best global competitors have succeeded to dislodge SMB on its No. 1 slot. Even today, after 20 years, the tagline is still associated with the Philippines' best beer. Another 100% Filipino brand that weathers foreign competition is Jollibee, whose "Langhap-sarap" slogan captures the heart of many Filipinos. To date, it is still the leading food and beverage firm in the country, and still growing. In the political arena, former Philippine president Joseph Estrada's "Erap para sa mahirap" proved to be a winning vehicle that landed his JEEP (Joseph Ejercito Estrada for President) campaign into Malacanang, the country's seat of power, in 2001. There are still many more successful taglines and slogans out there in the local industry that I won't mention anymore due to space constraints. But on a final note, it only shows that an effective powerline will outshine the competition every time.

A company should not blog if . . .

Blogging has really grown into its own over the past few years.

Nowadays, most firms, including Fortune 5oo companies, are using blog sites to launch and market products and services to their prospects and target audience.

However, although blogs can drive explosive growth to a business and revolutionize customer service programs of a company, nonetheless they could also spark controversies and outrage.

As per consultant Nick Rice:

"You cannot control your brand (in the blogosphere). You can only hope to guide its direction by knowing who you are, who your customers are, what they want, what issues they struggle with and how you want to help them."

In a blog item posted in www.vaspersthegrate.blogspot.com, the blogger enumerated 20 reasons a corporation should not use blogging as an awareness tool for its products and services.

So here it is. Read on.

Friendster going mobile

Online social network Friendster, Inc. is planning to expand its user base by targeting those who have limited or no Internet access.

According to its Vice-President for Global Marketing, David L. Jones, the company will be going mobile this year. The idea of "going mobile" is to allow users who are away from their computers stay connected through their mobile phones.

Other developments to be implemented this year is the expansion of the multiple languages service. Currently, the system allows users to navigate the Friendster site, enter content and use features in about four languages only, i.e., Chinese, Japanese, Korean and Spanish.

These plans are in line with the company's objective to develop and expand its market base. The California-based Friendster has about 58-million registered users to date, while Friendster Asia has 43-million account holders on top of the 24.5-million monthly visitors (including the Pacific region).

Meanwhile, the Philippines corners 39% of the social network traffic.

Advantages of having multiple marketing subsidiaries

Competition does not confine itself in the market alone. There is also this so-called intra-company competition where sister companies or subsidiaries compete with each other, whether directly or indirectly, on certain target markets. 

In some sectors, there are several target markets where core businesses, e.g., vertical and horizontal businesses, are vying in. Hence, it is interesting to know how holding firms address competition within its group. 

An obvious technique is to form a separate marketing subsidiary. This course of action does not only provide sales advantages; but likewise, promotes a level playing field for competing subsidiaries, thereby, lessening intra-company friction. 

In this set-up, the marketing arm would assume the sales function of the operating subsidiaries. In all likelihood, the sales strategy being implemented would be the same for, say, vertical and horizontal businesses, so that the sales force could easily resort to cross-selling activities, often offering all related products and services at the same time to their clients. This is a good idea as it gives clients a variety to choose from among the products in the marketing portfolio. 

However, sales people have also their own biases, preferences and expertise. They tend to push sales of products and services that are more beneficial and known to them, neglecting others in their portfolio in the process. In so doing, there is a big possibility that the strategy may work wonder to one business, while spell disaster to the other. 

The formation of separate marketing arms for each core business could be the solution in coping up with competition – both internal and external. This will make the current marketing arm to stay focus with its present portfolio, while the newly-established one will take care of the other business. 

Here are some of the advantages: 

a) Management Focus. Since each subsidiary has its own management team whose focus is confined to the business line or activity it is managing, the creation of a separate marketing strategy enables conceptualization of marketing plans and strategies apart from that of the marketing of other businesses. 

b) Financial Leverage. Creation of another subsidiary could provide its parent company an additional borrowing capacity as shares of stocks in the subsidiary are held as assets on the latter's book and can be used as collateral for additional debt financing. 

c) Legal Independence. Holding companies and their subsidiaries are considered separate juridical entities. Hence, the assets of the parent firm and the individual subsidiaries are protected against creditors' claims or law suits filed against one of the subsidiaries. Liabilities cannot be passed on to the parent company or sister subsidiaries. In this regard, legal problems arising from, say, horizontal businesses would not hamper or greatly affect the business and sales operations of the vertical subsidiary or vice-versa. 

d) Tax Relief. An addition of another marketing subsidiary provides further tax optimization to the group of companies. Tax optimization is made possible by offsetting profits in one part of the business with losses in another, and thereby, reducing the overall taxable corporate income on the consolidated tax return. 

 e) Lesser Investment Requirement. Establishing a marketing subsidiary is not capital-intensive. Pre-operating expenses normally include corporate registration and notarial fees, documentary stamp taxes, and office rental advances. It is easier to put up and requires no special capital paid-up. Hence, it is very viable for a sizable group to put up and sustain more than one marketing subsidiaries. 

f) Corporate Imaging. A marketing subsidiary which had already established a reputation or niche in the horizontal market would find it hard to transform itself to become a vertical marketing arm in an instant. On the other hand, putting up a new subsidiary to deal exclusively in the vertical markets could provide immediate recognition from property buyers. 

g) Risk Mitigation. Certain developments in a holding company's life cycle can trigger the need for another subsidiary, such as the launch of a new venture with different risk characteristics than the company's existing core business or the opening of new operations in other jurisdictions. Creating a separate marketing subsidiary for this purpose would shield the parent firm from possible financial fallout from its new project venture or off-shore operations as there will be a dedicated sales force that would ensure sales and promotion of the business. 

h) Business Flexibility. An independent marketing subsidiary could also deal with other related products and services to boost revenue. it may use its expertise to render consultancy or technical advisory services to other entities. It may also enter into a marketing deal with dealers and suppliers. 

Conclusion

The creation of a group of significant marketing companies centralized around a parent company, but whose management are decentralized in carrying out their respective corporate affairs, provides better sales results, additional sources of revenue, and organizational edge. 

Marketing is a numbers game afterall. The larger the marketing organization, the greater the opportunities of booking more sales. 

**Paper submitted by Ludwig Ritchel A. Kalambacal to Duraville Marketing Inc.

*See related blogs:  ○ Parent-Subsidiary Relationship

Taking on the Big Boss

 
"There really is no pattern in how or what they buy... It's still how you convince them... Trust and confidence go together", explains Ludwig Kalambacal in the article written by Kato P. Sarmiento for Entrepreneur Philippines Sept. 2002 issue. 

Click the image to read the full detail. 

Exploring the surface of the Blue Ocean Strategy

The Blue Ocean Strategy is currently the hottest marketing trend over the last two years. Two top professors of Insead, a prestigious school in Europe, were the ones behind the idea.

The strategy is based from the book written by W. Chan Kim and Renee Mauborgne in 1995 entitled: "Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant". The book has won several international recognition from the business community.

The basic concept of the Blue Ocean Strategy is that businesses should not directly compete with others, but instead create a different market (a blue ocean) to make competition or other market players irrelevant.

That is like finding the hole in a dough of opportunities. Businesses should take some calculated risks, and explore the market very well with an objective to find an unserved market that no one wanted to serve or an untapped market that has never been tapped yet.

Buffett and Gates at Hooters

On Oct. 20, 2006, value investor Warren Buffet and computer genius Bill Gates, among the world's richest men, were each given a Hooters VIP Card at a Hooters Restaurant in Kansas City. The card entitles them to free food at any of the food chains 435 locations in more than 20 countries.