Regional Watch MMHK Nov

1 Senior marketers blind to brand value

Malaysia More than half of the senior marketing population failed to understand the importance of brand value at their organisations, a survey by the Association of National Advertisers (ANA) and Interbrand has found.

Out of the 118 chief marketing officers and senior marketing executives at ANA member companies polled, 64% said brands did not influence decisions made at their organisations.

The senior marketers polled said brands were not included in the ‘sphere of influence' and about 15% said brand expertise does not exist yet.

The statistics were announced at the annual Masters of Marketing Conference in Florida where some reasons were identified including incentives which do not support a brand's importance, the inability to prove the brand's financial benefit and branding expertise not being widely accepted.

Marketers also said they struggled to win support from company leaders and board members and 80% felt demands from the chief officers' level (C-Suite) and boardroom were steadily increasing when it came to demonstrating the ability of branding initiatives to make a company more profitable.

Bob Liodice, president and CEO of ANA said it is critical for marketers to fully appreciate the value of the brand to have a voice with the C-suite to accomplish overall business growth objectives. He added building a strong brand must be the leading driver of business growth.

"Understanding how brand management fits into company decision-making is why we partnered with Interbrand on this important survey," Liodice said.

Jez Frampton, global CEO of Interbrand, said that branding should be a central principle in any company.

"But for many in the marketing industry, creating and managing brand value still follows an archaic model - it is limited strictly to the marketing department," he said, adding that Interbrand's Best Global Brands portfolio is evidence that companies with a well-managed brand achieve best financial results.

There has been more push for the evaluation of the importance of brands, especially in the troubling economy times.

"It's no coincidence that strong brands, like Apple or Google, often have a strong stock price," Frampton said.

"Companies need to fully understand what drives demand on a second-by-second basis. The financial implications of doing so speak volumes."

ANA also found marketers acknowledging that having a more comprehensive understanding of how, when and where brands create value would lead to improvements and more focused investments.

 

Nokia to slash 450 jobs

Singapore Nokia has announced it will cut 450 jobs worldwide, including roles from its marketing departments, at the start of 2009.

The 450 employees will come from its Markets unit, of which 100 are based in the Nokia headquarters in Finland. The Markets unit was formed early this year when Nokia combined three of its mobile phone devices, services and software, and markets. The Markets unit handles supply chain, sales and marketing, with Nokia's five marketing divisions all sitting under this unit.

Nokia declined to comment specifically on marketing job cuts in Asia but released a statement estimating that within its Markets division, approximately 450 employees will be affected by the planned changes globally.

"This affects employees in sales, marketing, customer logistics, care and related support functions," the statement said.

Other departments impacted globally by the changes include the Nokia Research Center, where it will let go an approximately 130 employees.

Nokia's global advertising agencies are Wieden & Kennedy and JWT. Its local PR agency is Text 100.

 

3 JWT takes away Pizza Hut

Singapore Pizza Hut has selected JWT to manage its creative account following a review that included Young & Rubicam, Grey and Bates 141.

Juliana Lim, marketing director for Pizza Hut Singapore, said all agencies put up "good strategic and creative proposals", adding the final decision was tough.

"The decision on JWT Singapore was driven mainly by [its] outstanding and insightful creative ideas. We will be most delighted to see how the campaign will unfold across various mediums in the near future," Lim said.

The account came into play following Pizza Hut's mutual parting of ways with incumbent BBDO. The Omnicom agency's contract with Pizza Hut ended in November.

When news of the review broke back in September, Lim said the initial contract would be for a year and with a new agency, the company hoped to get a new strategic representation and a fresh creative direction.

Michael Gian, Pizza Hut CEO, said the restaurant is today competing in a "dynamic and intense" food and beverage market.

"We need a partner who is committed and capable of driving up our brand position and appeal to our target customers," Gian said,

 

4 MPS snap up Ligue 1 in Korea

Korea International sports marketing agency MP & Silva has concluded a deal with French media group Canal+ for France's top-tier professional football league, Ligue 1.

Under the two-year agreement, MPS will have exclusive media rights on all platforms for Korea, including terrestrial free-to-air TV, satellite and cable TV, internet protocol TV, mobile, mobile internet and broadband. The agreement covers the current French Ligue season as well as the 2009 and 2010 season.

As part of the agreement, MPS will also distribute Ligue 1 news access and highlights to Korean terrestrial broadcasters in the territory.

The Singapore-based agency has also awarded the exclusive television rights for Ligue 1 in Korea to Pay-TV operator KBSN, which will be working with MPS to promote the French league in Korea.

MPS recently underwent a significant corporate restructure, after hiring Peter Leible as MD for the Asian territories, leaving group CEO Andrea Radrizzani to focus on reworking its global and expanding the company's presence in emerging markets in Europe and the Middle East.

 

5 Green returns to head H&K Japan

Japan Hill & Knowlton has appointed Jesse Green as executive director for its Tokyo operation, responsible for business development and operations.

Green returns to Hill & Knowlton from real estate and fund management firm New City Corporation, where as chief marketing officer. Green previously spent five years at Hill & Knowlton Japan, becoming vice president in 2005.

"We are delighted to welcome Jesse onboard. His rich experience and acute understanding of the Japanese market make him an indispensable member of our team," Kuniko Okuwaki, president & CEO of Hill & Knowlton Japan, said.

Green's experience extends to the areas of corporate and financial communications and crisis and issues management.  He has also managed communications for a variety of M&A's, joint ventures and business partnerships.

"As corporations around the world seek new investment in Japan, and as Japanese firms are looking to expand their presence internationally, there is an increasing need to effectively stand out in the crowd," Green said.

 

6 SPH axes struggling Maxim

Singapore SPH Magazines has confirmed it will close its men's magazine Maxim after the December issue.

Speculation regarding the future of the publication had intensified in recent weeks.

Loh Yew Seng, SPH Magazines CEO, said research showing a reduction in clients spending on men's titles were a "clear indication" that the audience for traditional lad magazines has dwindled.

"Male readers are now opting for editorial content that is found in more quality content-led magazines," he said.

The statement also revealed SPH's plans to move photography magazine PHOTOVIDEOi into its leading consumer technology magazine HWM Singapore from December.

"To reach out to the modern male reader, and connect our advertisers to this group of very discerning audience, SPH Magazines will now focus our efforts and resources on titles like Men's Health, as well as interest-specific men's magazines within our stable, such as Torque, Golf Digest Singapore and HWM Singapore," Allen Loh, MD for SPH Magazines, said in a statement.

All staff members of Maxim and PVi will be retained and redeployed within SPH Magazines as part of its consolidation strategy.