As Millward Brown has only recently opened its branch in Bangladesh, in July, what is its vision? How do you plan to cater to the local market?
We will work extensively with local companies. We have gathered knowledge and learning through working in 60 countries, including a very large footprint in Asia and Africa. In the last 20 years, we have learnt significantly about developing markets. Combined the understanding of Bangladeshi consumers, we are confident of assisting local companies to excel in marketing, branding, advertising, and media standpoints.
In the last 10 years, how has consumers’ interaction with brands changed?
Earlier, interactions were only one-directional, brands would speak to consumers. Now, it’s a two-way dialogue with the advent of social media. Consumers talk about brands at all times. There are forums where customers share their experiences and influence the paths that brands tread.
The second largest change is the increased number of touch points that brands have with consumers. 10-15 years ago, companies would be running marketing efforts and campaigns on one or two mediums, primarily on television, print, or on the outdoor. Nowadays, brands run their campaigns simultaneously on television, outdoors, print, retail interface, digital, and social media.
What role does social media play in devising brand strategy?
Considering the depth of the engagements, social media is stronger as it brings consumers and brands closer. Interactions between brands and consumers are direct. Consumers influence brands’ positioning and what they stand for. However, the number of relations formed in traditional media is still larger of the two considering the reach it has.
Companies are underspending in digital and social media with only 5-7% of their marketing budget going to social channels. Although it may reach 15-20%, there will still be another 80% spent on traditional media.
Are companies in South Asia slow in understanding the role social media can play for them?
It’s probably slower here than many parts of the world, but not because companies are slow to understand. It’s an evolutionary journey. Earlier, social media was only accessed through desktops, laptops, and cyber-cafes. Social media today although is accessible on cell phones, but the bandwidth and handsets at certain prices are not readily available. Hence, there is an affordability and distribution side to it.
If distribution and affordability is not widespread, marketers can’t do much. It’s a question of technology enabling social media, which is happening for the last 2-3 years. For this, we are going mobile and hence social media is reaching the masses.
Companies are also starting to take advantage of social media, but many are still slow given where mobile technology is heading. Companies could be more aggressive and faster to move into the platform. There is an opportunity and companies are moving to reap the benefits at a regular pace whereas it could be far dramatic.
How has brand perception and loyalty of Generation Z changed towards companies?
It can be argued that loyalty levels were stronger earlier, or that observed loyalty has decreased. Competition has increased and there are good quality alternatives available. This is possibly the determinant of low behavioural loyalty seen today. Nonetheless, when consumers find something that fits their needs, they will still show a fair degree of loyalty. Generation Z are more discerning, clear, and focused about what they want. They are smart and able to figure out the value of a brand.
They could ideally stay with a brand unless another brand comes along and dislodges that position. If a brand dislodges some other brand from an established position that’s because they are offering a better alternative, not because consumers are less loyal.
Would you say that product has to be superior as well?
The product and the whole proposition should be superior. Product today does not mean “only product.” It satisfies a certain need – rational, physical, emotional, a need of trust, or something a person wants to associate with. If another brand comes and does that well, consumers would switch.
This is because a company has done a better job in connecting and bonding. Millward Brown’s work also shows that there is fragmentation of brands, less observed behavioural loyalty, which may or may not be attitudinal.
How has your experience been in participating in Commward?
I was very impressed with the quality of the fellow speakers. They are experts in their own fields. They brought relevance and knowledge to the market. The audience has got some engaging knowledge that they can use in everyday life and improve the quality of business and advertising. The presentation of the nominations around the venue and the aesthetics were praiseworthy.