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There’s
only one industry in the country bigger than the
automobile sector, and that’s the government. But the
auto industry is undergoing major changes. Or rather,
the Filipino consumer is undergoing major changes. The
Filipino public is no longer enchanted with the
automobile, this columnist has found, as have other
automobile manufacturers. A car is now a necessity, like
electricity, and not so much an escape vehicle to
fulfill fantasies.
Mazda
feels that when a car owner is forced to invest in a new
model, he isn’t going to be impressed with advertising
that promises a new lifestyle. Instead, the potential
customer for a car will make a rational decision on what
he needs in an automobile.
 Mazda
advertising is geared to tell motorists that what they
need in a car is what Mazda provides. “We are in the
process of building the new image of Mazda in the
country, with hot and new ‘fun-to-drive’ products and
with superior customer experience,” says assistant vice
president for Mazda Eric Malimban, in an
interview.
“Mazda
has done well in the past, but the modern Mazda image is
about providing style, spirit and innovation to our
customers. With regards to budget, we don’t have as much
resources as the bigger players in the industry, and
with that we have to come up with different creative
ways to advertise and expose Mazda to the market,”
Malimban adds.
Mazda’s
creativity is aimed at continuing to position the car in
the minds of consumers as an automobile of style,
innovation and spirit. To accomplish these objectives,
the company is capitalizing on the perceived trend
toward more intelligent, more rational consumer
purchasing decisions. It is using Mazda’s product
features as “symbols” to illustrate the intelligent
design of the whole car, and is thereby permitting
itself a unique consumer prestige positioning for Mazda.
“In
advertising, we always makes sure that we stay true to
what the Mazda brand stands for and that has worked well
for us,” Malimban says.
Mazda’s
strategy has been paying off in increased sales. And if
you have any sense, you’d know that sales increases is
what advertising was trying to achieve in the first
place. “Mazda surprisingly did well last year,
considering very strong actions from competition like
the new Honda Civic introduction. Mazda at the moment
remains to be the highest selling brand per dealer or
outlet, and that is why network expansion is one of our
major priorities,” Malimban points out.
He adds:
“We currently have a campaign on the Mazda3, which is a
face-lift action on the Mazda3. It is an enhancement of
the Mazda3 in terms of styling [with new bumpers, new
wheels, new interior fabric, etc.], performance [S-VT
2.0-L engine, suspension improvements, added insulation,
etc.], plus many more. We currently have print, TV,
billboards, etc. to support the campaign.”
Cars
represent an acknowledged standard of luxury. They all
have automatic transmission, power steering and power
windows, plus the genuine leather, among other stuff.
Which makes more sense today? Paying extra for a
standard of luxury? Or getting your luxury, standard?
“Technology is a must in modern cars. Gadgets drive
consumer technology, and they demand to see similar or
the same technology on cars today. Our cars need to keep
pace with technology,” Malimban says. Consumers are
smarter and more discerning today than ever. Consumers
research a lot about cars before stepping into any
showroom. So they usually have a good idea of what they
are looking for before they actually visit showrooms.
“Competition has always been fierce, and that is
expected to escalate further through the years. That is
due to the overcapacity of all automobile plants
globally. Right now, supply is just greater than
demand,” he adds.
 According
to Malimban, Mazda is a resilient company. It was able
to turn around its business when Mazda was struggling
globally. They were able to focus on the company’s
strength of coming out with vehicles that are sporty and
fun-to-drive.
The
local automotive sales has been very stagnant the past
several years. While all the other Asean countries
recovered from the Asian financial crisis a decade ago,
the Philippine auto industry had lagged behind
significantly. In fact, this might be the first year
that our industry will go over 100,000 units in 10
years. The industry should grow significantly versus
last year with the better economic outlook being
projected.
“We
intend to grow the Mazda business the next few years. We
recently introduced product freshening on our current
models, and have plans to introduce new models in our
lineup as we grow the business. We also intend to expand
our dealer network to be able to reach more consumers.
We currently have four dealers, all in Metro Manila. We
should see some expansion to the provinces in the next
six months.”
Market
leaders can take nothing for granted in a world of
increasingly sophisticated advertising techniques and a
plethora of new products, not to mention marketers
lurking around every corner. In a universe of groping,
testing gives you a firm grip. Ready…test…profit!
****
What has
crisis communications got to do with PR folks?
Because
public relations is an integral part of business, and
not a separate isolated function, it is difficult to
define in precise terms. Several years ago, Fortune
magazine called public relations “good performance,
publicly appreciated because adequately communicated.”
By PR
standards, this was a modest definition. I would prefer
a broader definition: “The management function which
evaluates public attitudes, identifies the policies and
procedures of an individual or an organization with the
public interest, and executes a program of action to
earn public understanding and acceptance.”
Certainly, once an unfortunate situation has been
corrected, public relations can help rebuild a company’s
reputation and corporate image by communicating the
changes that have been wreaked. It cannot be a whitewash
for a black condition; it must be “truth well told.”
There is no way to impart a sweet aroma to a smelly
situation, and no company or organization can persuade a
public that it is acting in that public interest’s when
in fact it is not.
World-trained crisis communications expert Dante M.
Velasco, chairman and CEO of Creative Point
International Inc., the Philippine affiliate of Hill &
Knowlton, points out the key strategies to preempt a
full-blown crisis before PR professionals during one of
Public Relations Society of the Philippines (PRSP)
lecture-series held recently.
Who
needs a crisis? Velasco asks. “No one needs a crisis but
it happens anyway like an unwanted virus.”
A crisis
is a turning point, time of acute danger or extreme
uncertainty. According to Velasco, the character of
crisis happens at unexpected times (even if you half
expect it), happens at inconvenient times (an unwanted
distraction), occurs rapidly, can cause communication
breakdown, generates attention, can immobilize, cause
unrest, damage or death.
A truly
serious incident, if not handled properly, can, at one
stroke, tear down a reputation built up carefully over
many years. Every corporation has a distinct personality
or identity because of its very existence. And one of
the most important tasks of PR is to influence the
function of that image. This cannot be done by pressure,
by command, or by any activity which is not rooted in
fact.
“In
public relations, nothing but nothing… just happens,”
says the president of a PR firm. “When relations are
good, it is the result of hard work and planning. When
they are bad, it is usually the result of laziness or
complacency, or both.”
Velasco
says potential crisis can come in the form of a letter
from a lawyer complaining of a product/service problem,
threat of “going to media” or a single exposure in
media, “bait” offered for us to react, nonmedia
initiatives surface (a letter to a top company official,
hostile behavior of complainant or unwillingness to be
placated. Danger? Not imminent, adds Velasco, but begin
watching.
The
director of public relations of an appliance company
puts it this way: “We must be good to look good.
Performance must be good in any given area of corporate
endeavor if the company is to win and retain public
regard in that area.”
There
can be no blueprint for the conduct of PR in all
organizations. Each enterprise has its own PR problems
and must find its own way of coping with them. But
successful public relations is no accident; it must be
planned.
Velasco
examines some of the essential things to do when dealing
with potential crisis. He calls it “PR Intelligence”
needed to evolve effective crisis communications
situations. “Be an instigator. Have a thorough
background check on the complainant. Check out media
players on ‘players’. Trace possible reasons and compile
data. Identify decision-making and action-taking
levels.” No public response yet, but you are “ready.”
To
position yourself to get out on this crisis
communications, Velasco stresses not to lose sight of
your objectives. “Protect/enhance reputation and
neutralize adversity. Discourage speculation and above
all, meet stakeholder expectations. Protect yourself
against liability,” he says.
“There
are two communications frameworks for crisis leadership:
Agenda setting model and framing theory. The crisis
leader has an agenda, which must become the agenda of
gatekeeper [including media].”
PR
professionals know that publicity can happen anywhere
and are prepared to greet the media in any of its
guises. We’ve all heard of media fiascos and publicity
disasters, and even fly-by-night so-called PR
practitioners. How many could have been averted with
proper planning and preparation? Take a guess. |
