Tuesday, March 10, 2009

Consumer Behavior during Crisis: a tall order for Advertisers (Part 2)

by Ronald Jabal

Evolving tastes in brands

The PSRC survey also tracked changes in consumers’ behavior across product categories revealing important insights to evolving preferences during less-than-ideal environment.

During crisis periods, Pinoys are kicking the habit of “going-solo” in paying for beer sessions with friends. Instead, sharing and dividing the costs of beer consumption are becoming the order of the day.

Even the choice of the place where they enjoy their favorite beer brand changes as they drink more at home or in cheaper places – forgetting for a while the flashy beer gardens they used to go to for night-outs. PSRC said 38% of consumers are likely to switch brands while 37% reduces the number of beer bottles they consume.

Pinoy smokers also feel the pinch as they reduce “puffs” of their favorite brands. They buy by the stick than by packs. They also are now more considerate of prices among outlets with some going out of their way just to get cheaper cigarette sticks.

The PSRC survey discloses that, in times of crisis, 28% of smokers switch brands while a staggering 57% reduces quantity.

As regards home care products, more and more Pinoys are showing very discriminating tastes scouring the market for more efficient and multi-purpose products that are suited for their basic needs.

In times of crisis, some are products and being considered unnecessary and a number of consumers are aggressively looking for promos. Some 42% of those surveyed says they switch brands while 43% reduce number of home care products in difficult times.

Tech-savvy consumers are also rethinking their purchases of electronic gadgets. Gadgets are fast becoming “on a need “and on an “exact-specs please” basis only replacing the “must-have-coz-my-friend-has” era. Gadgets that contain and promote multi-functionality, cheap and bundled with a lot of freebies are the current preference.

In the period of “tight-budgeting”, 33% is switching brands and 50% is reducing purchases of electronic gadgets.

The consumer behavior around telecom services is quite similar to behavior in gadget purchases. More users tend to be open to changing their habits. They limit the amount of use of phone for calls/ SMS. They downgrade plans; do not go beyond free minutes/SMS, use multiple SIM cards, and are switching from postpaid to pre-paid schemes t better control consumption.

Promos on free or unlimited calls/ SMS are most appealing. More than half (55%) of consumers switch brands and also more than half (53%) reduce purchase of telecom services.

Expectedly, behavior around food and beverage and personal care products are changing. Pinoys cut their consumption of soft drinks; eat less or in cheaper places; pay attention to amount purchase and are now likely to bring home “doggy” bags”.

Unlike before, people bring home unfinished food when eating out. While 36% switch brands, 51% reduce quantity of purchases in food and beverage category.

As to preference and purchases towards personal care products, Pinoys are more prudent in product purchase and consumption. ”Bottoms up” i.e. finishing all the contents before throwing out is becoming the norm among consumers. Shockingly, Pinoys are using products less frequently to save on purchases.

The “tipid” mentality is all over the place even as they pursue products that offer good promos. In crisis periods, 39% switches brands while 47% reduces the number of personal care products.

There is also a marked change in the behavior of consumers in the light of increasing fuel prices. More and more people plan trips and errands to save in gas. They use car less and more people are re-discovering commuting to and from the office.

Even driving habits are being changed to adapt to highly volatile fuel price environment. In purchasing fuel, 35% of Pinoys switches brands while 46% reduces quantity.

Esteban believes the key lesson that advertisers should learn from these is very basic- knowing their consumers really, really really well.

“Immersion with your consumers is a quick and insightful way of understanding the coping behavior of your consumers. In times like this, there is a need to redefine value in your category: absolute amount in relation to pack size, cash poor vs. cash rich segments, “Esteban said, even as he reminded PANA members that recessionary periods are rich in innovations.

“Consumers are willing to adapt new products, and companies are and will be forced to innovate to survive,” he added.

He ended his presentation with a clear message, “Promote, communicate value, heighten saliency and invest in marketing research”.

Consumer Behavior during Crisis: a tall order for Advertisers (Part 1)

by Ronald Jabal

Time and again, Filipinos have proven to all and sundry of their ability and capability to weather any storm that hit the country. While others suffer a lot even from a small pinch brought about by political, social and more so economic upheavals, Pinoys have been able to cope and adapt to the ever changing environment they live in.

But will the more than 90 Million Filipinos be able to shrug off the financial crisis that is currently being experienced around the world? Will they be able to cope with the rising unemployment; dwindling savings; and the constant adjustments in the prices of basic goods and services? Will the Pinoy consumers hit rock bottom this time and grovel at the sight of the rampaging difficulties now and ahead?

The crisis is here all right. It is felt by all indeed, but even prophets of doom and local pundits are one in saying the resiliency of Filipinos remain intact and cannot be easily shattered. Filipinos have stared at the eyes of the 1997 Asian financial crisis and survived, they will do the same this time around.

This is confirmed by a survey recently conducted by the Philippine Social Research Center (PSRC) which was presented during the General Membership Meeting of the Philippine Association of National Advertisers (PANA) last February 27, 2009 at the Rock Hard Café Glorietta III Makati City.

When the going gets tough, Pinoys adapt.

In his presentation titled “Storm clouds over us: Understanding the Filipino consumer in times of Crisis”, R. Esteban of the PSRC stressed that Filipinos will once again overcome the on-going crisis given their innate ability to evolve and adapt to any crisis before them. “It’s not that bad actually As Pinoys seem to be coping forever”, Esteban said.

He, however, disclosed that there are a number of changes in consumer attitudes and behavior during crisis periods that advertisers need to know and consider in the development of their campaign plans and media mixes.

“The rules of the marketing landscape maybe changing. There is a need for more careful market segmentation strategies. In the short term, behavioral dimensions may be more important than lifestyle or brand attitudes or even consumer needs,” Esteban said.

He quickly pointed out though that brands remain important. “Don’t forget to invest in them. Do not starve your brands. Brands can maintain even build trust by showing sympathy and engaging emotionally with consumers,”

If push comes to shove, Pinoys evolve.

During his well-received presentation, Esteban disclosed a number of observed changes in attitudes and behavior of Filipino consumers during the period of crisis.

Based on the survey, there appears a general feeling of frustration among consumers and they talk about shifting gear towards “survival mode” However, unlike other people elsewhere, Pinoys do not express their frustration through aggression. Instead, they cope through withdrawal. In response to crisis, Filipinos take comfort in the warmth of self and family. They generally accept the current situation and work around it by exploring all possible sources of income “to make ends meet”.

Pinoys do more over time work to earn an extra buck. They get side jobs, multiple jobs and start small businesses on the side. They also borrow money from friends, relatives and other sources such as SSS, Pag-Ibig etc.

Along with these changes, Pinoy’s taste also adjusts and adapt to the changing environment. Esteban says brands are now more scrutinized as consumers want value for their little money. He discloses that there seems to be a shift from premium brands to less premium; look at performance rather than image of the brand; from imported to local; and from branded to unbranded.

During crisis situations, Pinoy consumers also become “wiser” when they buy products. They give priority to basic goods; express more interest and preference to product promotions; and are less impulsive in their purchases.

Upscale and mid-low income households express different interests in buying products when times are hard. Consumers belong to C and D stock lesser quantity and prefer small packages while those belonging to B and C buy in large quantities and prefer bigger sizes – underscoring the need for a more careful look at market segmentation. Both Upscale and Mid-low income households however agree in one issue i.e. they both compare brands by reading labels.

Even behaviour in using products and services are also affected. “Dun tayo sa makakatipid” is the prevailing sentiment. There is an observed decrease in usage/ consumption, product substitution, and declining in the usage of “not so important” products like mouthwash, moisturizers and the like.

Esteban also disclosed that lifestyle activities are being sacrificed during crisis periods. Going-outs are being reduced as gimmicks are now being carefully planned. Instead of high-priced bar and restaurants, they are “downgrading” themselves to mid-priced establishments even as they look for cheaper alternatives. Some consumers have also dropped other “indulgences” previously availed regularly when times are a lot better.

People are cutting expenses on parlors and salons, gyms and massages. There seems to be an apparent shift to simpler activities – ala “back to home” fun activities.

Thursday, March 5, 2009

DLSU studes care about the environment too - survey

by Ronald Jabal

I recently conducted a small purposive survey among DLSU Org Com Students about their attitudes and beliefs on carpooling. (The same survey instrument used in DLSU was also administered among employees of ABS-CBN International).

The survey results will inform a carpool campaign program that will be developed as part of a submission to a graduate course on Public Campaigns in UP Diliman.

While most people associate carpooling as a cost-reduction scheme, it is nevertheless a small, but, when a number of people participate in it, can be a potent tool to reduce carbon emission – hence carpooling is an environment protection tool as well.

At first, my initial suspicions tell me that DLSU students may not be as “environmental” as they are perhaps more “sheltered” than “usual” students. They probably care less about the environment and are more concerned about image, identity, and status among others.

Heck, they probably do not even care about possible cost-savings when they participate in a carpooling program as they more care about self-image as a “car owner”.

But, boy, I was wrong. Absolutely wrong.

Survey results show DLSU students (n=60) care about the cost-savings they will incur when they participate in a carpooling program; and they believe that carpooling can help reduce traffic congestion and help protect the environment. Close to 76% says carpooling can help protect the environment.

Status symbol and/or self-image as a “school bus” driver if one participates in a carpooling program are almost immaterial to the students. More than 75% says status symbol is not important even as they believe carpooling is more fun especially when done with friends.

DLSU students will consider carpooling for a number of reasons: (1) if priority parking space is offered to carpoolers; (2) if there are additional incentives to car owners participating in carpooling program; and (3) if schedules among friends/carpoolers will be managed (same route and time)

There are other valuable insights from the survey results. The abovementioned results can, however, already be used to develop a campaign for carpooling in DLSU.

One can already developed campaign materials revolving around cost-savings or that carpooling is pro-environment. To further entice carpoolers can already develop an advocacy plan to convince DLSU management to provide priority space for carpoolers etc.

We would not have known good insights to inform our campaigns if we didn’t do the survey right?

Hence, once again, research remains really, really, really, important in campaign planning and implementation.

Wednesday, March 4, 2009

No online charm for 2010 wannabees ala Obama

by Ronald Jabal

Barack Obama did not only make history when he became the first black US president but he made huge leaps in how political campaigning can and should be done through his excellent understanding of the power of new media.

He used social networking cybersites to move people in the real world – community organizing, online – and the youth is its prime mover! He capitalized on the potency of the Internet and has reaped the reward – the Oval Office.

Just look at this stats:

The social media network developed by the Barack Obama campaign created more than 3,500,000 friends for Barack Obama. YouTube, the largest online video streaming site, shows more than 134,000 subscriptions and FaceBook shows more than 3,000,000 supporters.

With presidential elections in the Philippines not too far from now, can the current crop of presidential wannabees replicate the Barack online charm?

Maybe not.

What’s preventing the wannabees from harnessing the potential of the Internet is the STILL small number of internet penetration in the country.

While it is steadily growing across the country by leaps and bounds, the country has a measly 18% Internet usage rate. Most Internet users still access through cybercafés and use pre-paid dial-ups. The figure is much lower for mobile internet users as it only hovers around 3%.

Most Pinoy use Internet to chat, play games, send emails, personal and academic researches, and download music – none towards anything political . This clearly shows, unlike in the US, Pinoy Internet users are “socializers” – using the web for social activities and entertainment.

As a consequence, new media in the Philippines has yet to be considered part of the “mainstream” that would merit the attention and space in political campaigns. The personal websites of the current crop of presidential wannabees were developed to simply announce their online existence – that they too have a presence in the cyberspace just like everybody else.

But using the website as a major tool, just like a TV, radio or print ad, to build the image and push the candidacy of a wannabee? Maybe not.

I don’t see Internet becoming a major campaign tool to hook in the youth by 2010. This, notwithstanding the framing of the wannabee as a “tech”savvy”.

Not in this election. Maybe in the future.

Just maybe.

Tuesday, March 3, 2009

Changing media consumption: the rise of i-Media

by Ronald Jabal

The current media environment is becoming a headache among campaign planners. Channel and media mixes are in constant flux.

The old concept of an all powerful media (TV, Radio, Print) no longer exists given the ever increasing empowerment of the consumers – consumers who cannot be pinned down on a given place and/or time.

More and more consumers are on the road. They are better informed; are expert multi-taskers; impatient; and are harder to reach, attract and engage.

Consequently, the consumers’ media habits are also changing. They prefer info-on-demand; determine their own media content; can easily switch channels; and prefer anything “instant”.

This could partly explain why cinema viewing is down; readership is declining; TV viewing remains high but TV ad consumption is waning; and out of home or outdoor media consumption is up.

Unfortunately, media outfits are finding it difficult to catch up. Traditional media outlets remain high and growing. There remains more than 100 magazine titles; close to 650 commercial radio stations; mre than 105 newspapers (national and local) and 7 VHF/8UHF channels. Even ad placements in these channels remain high.

This media clutter does not respond well to the changing consumer behaviors.

There is some silverlining though. Leading media and advertising agencies are shifting attention to alternative media. To catch audiences, they are now placing branded content; increasing events sponsorships; developing more and more out of home and point of sale ads and are engaging in multi-media tie ups and online activities.

Other agencies are increasing placements of subliminal ads in TV programs and local films and developing and placing conceptualized segments and brand bugs.

Clearly, we are experiencing some shifts and shakedowns. Ad agencies and media outfits stand to lose all if they do not catch their consumers.

They will lose everything if they fail to realize that mass media is giving way to emergence of individualized media or i-Media.

Monday, March 2, 2009

Going Beyond TSL in Campaign Planning

by Ronald Jabal

Even among professional practitioners of Public Relations (PR), research is frowned upon. Many claim, they don't have budget for research while some argue it is not necessarily needed - after all they claim to know their audiences well enough. Research, for them, will only validate what they already know and is considered a mere expense.

Hence, many practice what I call, the TSL-approach in PR i.e. Tingin Sa Langit approach. When asked to do a PR campaign, they will look up in the sky and hopefully find some answers there. Funny isn't it? Unfortunately, it is not far from the truth.

One only has to look at the current PR plans of a number of corporations to validate this assertion. Instantly, you will see media relations and publicity activities dominating most of the plans. In fact, not a few equate PR with media relations despite knowing there is more to PR than media relations and publicity.

Given the apparent penchant of some PR practitioners to use publicity to promote their respective corporations, one is left to wonder whether they are truly reaching their intended/target audiences.

Do their firms' audiences read newspapers, watch TV and listen to radio where these PR practitioners place their publicity materials? If the audiences were able to see/read/hear the messages, how do PR practitioners know whether their intended messages were the ones read/understood by their audiences?

How many were reached by the publicity activities? Did the publicity work really reach the intended audiences or were they read by other audiences that could be not important to the PR's firm?

These are just some of the tons of questions that PR practitioners need to answer and defend when they continue to practice the TSL approach. Hence, there is a need for some science in how PR practitioners develop and implement campaign plans. There is a need for Research in the way PR practitioners practice PR.

Given the changed consumer environment, what with the existence of more media channels now, the impatient audiences, and the increasing number of competing messages, the PR practitioners cannot afford not to do research in their campaigns.

The PR's ultimate goal now is to standout from the clutter!

Now more than ever, there is a need to conduct careful audience profiling: from demo, psycho to media consumption with this mantra: SEGMENT SEGMENT SEGMENT!

Now more than ever, strategic channel mix that is tailorfitted to meager resources needs to be developed - "PR is not a one sided love affair". Current environment calls for the adoption of multi-channel and multi-platform approaches.

Now more than ever, the PR needs to prove its worth through evidenced-based evaluation of its performances - "Don't just Count, Find out!".

It is no longer enough to merely count clippings, compile slant profiles and conduct advertising-equivalency-ratio. In the period of "value for money" and "ROI", the PR needs to prove that its investments are worth every penny by showing numbers: number of people who consumed the PR efforts; whether their publics understood the message; and if these audiences perform the behavior being pushed by the message.

While knowledge and awareness are important, attitudinal and behavioral changes should be the measure of success.

Today more than ever, there is no longer a place for TSL. A research-based approach in PR planning and campaigns should be the order of the day.

Sunday, March 1, 2009

Games marketers play: What's the diff?

by Ronald Jabal

Once in a while, marketers exchange banters even amid shrinking market share and changing consumer behaviors. And when they do, without the hearing distance of their uptight bosses, they dazzle each other with their knowledge of, what else, Marketing and the differences between PR, advertising etc.

Freeing themselves of their neckties, rolling up their sleeves and washing off make ups, they engage in "mas magaling ang lolo ko dyan" antics.

One night after attending a briefing on the current state of consumer preferences in the light of global recessions, the Chief Marketer of a global brand stood up and requested his colleagues to play "What's the diff" instructing participants to guess the type (s) of marketing technique being employed in a given scenario. And here is how the the game was played.


"You're a man and you see a gorgeous lady at a party. You go up to her and say, "I'm fantastic in bed,".

The Chief Marketer (CM) asked. "What type of marketing technique is that?" When no one could answer, CM said, it's called "Direct Marketing".

And this was how the quiz was played.

You're at a party with a bunch of friends and see a gorgeous lady. One of your friends goes up to her and pointing at you says, "He's fantastic in bed".

Answer: Advertising

You see a gorgeous lady at a party. You go up to her and get her telephone number. The next day you call and say, "Hi, I'm fantastic in bed".

Answer: Telemarketing

You're at a party and see a gorgeous lady. You get up and straighten your tie. You walk up to her and pour her a drink and then say, "By the way, I'm fantastic in bed”.

Answer: Public Relations

You're at a party and see a gorgeous lady. She walks up to you and says, "I hear you're fantastic in bed".

Answer: Branding


You're at a party and see a gorgeous lady. You talk her into going home with your friend

Answer: Sales Rep


Your friend can't satisfy her so he calls you

Answer: Technical Support

You're on your way to a party when you realize that there could be gorgeous ladies in all these houses you're passing. So you climb onto the roof of one situated toward the center and shout at the top of your lungs, "I'm fantastic in bed!"

Answer: JUNK MAIL


While the above piece appears frivolous, there is some granules of truth in every situation. Before I am cruficied by well-meaning marketing geniuses, let me offer some thoughts:

Marketing matches products and/or services to customer needs.

Advertising creates and places paid media messages.

Public relations builds mutually-beneficial associations with publics.

The best scenario for every marketer, however, is when he understands all three of these disciplines and uses them to support his overall branding efforts.

May the real PR rise?

by Ronald Jabal
(NOTE: This post is a finalist in the Top 10 Posts of the Year in the 2009 Philippine Blog Awards)


“Oh PR ka na pala”, - that was what my former colleagues in the Press told me, more than a decade ago, when they found me on the “other side of the fence”. This statement, when followed with eyes-squinting or worse, eye-rolling and then a quick cold distant, “hafta-go”, is robust with meanings. Suddenly, I am different.


When one hears the phrase (usually a stable in banter among friends), “ang PR PR mo talaga!” followed by a hefty laughter – one is left to wonder what do friends actually mean. When officemates tell you point blank, one day in the office pantry, “Huwag ka ngang mag PR dyan!” – which to some is indeed replete with emotive colors, one is again at a loss on what the statement really means.


Most of the times we assume we know what people mean by these statements, and yet we still ask ourselves, (and here I am having a Carrie Bradshaw moment), “What does PR really mean?

I will not bore the readers of this tongue-in-cheek thought piece with a textbook definition. Nor will I write here a litany of what PR teachers (like me) tell students about what PR practitioners (like me again, grrr) do. Let me, however, tell what PR people do and some people perceived that PR practitioners do.


From the term Public Relations, we can already deduce, without the need for Mr. Webster that PR is about relating to the public. No brainer indeed. It is in the process of relating to these various publics that interpretations seep in.


Many think PR work is organizing parties. It is about dressing up, feeling and looking good, hobnobbing with corporate bigwigs, celebrities, powers-that-be, the elite and the pseudo-elites, the wanna-be-seen, the “it” and the “in” crowd, the “members-only” group, the social climbers, the “xoxo” gossip club etc. Hence, sometimes, people look at the PR person as somebody with an easy life, thus the expression “pa PR,PR”. To some extent, PR work involves these activities.

Many think PR work is about employing dirty tricks - keeping the FACE of clients/bosses even themselves through ingratiation or worse, outright lying, hence the expression “huwag ka ngang mag PR”. At times, PR work involves, as some people perceived (hmmm.. actually see), paying people up for press coverage, hence the expression “PR ka nga” – with PR as the term and as a profession becoming a pejorative word. To some extent, this is also true.


Just imagine a student of PR being confronted by these realities. Would you still want to become a PR practitioner?


While the above-mentioned issues are true to some extent (but not true all the times), there is a lot more to PR. And there are more PR practitioners that remain true to the noble practice of Public Relations as a profession.


In crisis situation where advertising money shrinks but competition remains stiff, PR is the best weapon of companies. Even non-government and government entities which promote their services and accomplishments rely on PR as their platform. And PR is not hard sell compared with advertising – a lesson advertising agencies embrace with gusto.


Nowadays, the line between “above the line” and “below the line” has become blurred. Editorial spaces used to be the playground of PR practitioners – a testing ground of how good a PR practitioner writes and frames his/her stories and how close is his/her relationship with reporters and editors, deskmen and producers.

Today, it is not uncommon to see the emergence of “branded “ content – editorial stories containing product features, celebrity endorsers, brand events to name a few being given editorial spaces. And people patronize these products because the “content” is not made to appear as advertisements but stories written by reporters/editors - stories that were earlier distributed/released by PR practitioners – thereby giving an air of legitimacy to the ads-cum-news features. PR is the new adman at less cost!


PR has also ceased to become just a vehicle to help inflate bottomlines. PR is now involved in social causes – transforming corporations as community citizens. Instead of merely informing, PR engages and harnesses people and businesses towards a collective action on issues such as health, environment, child and women’s rights, ageing, equality etc. Indeed, PR has placed the heart where it should be. It is this humanizing role that differentiates the current practice of PR.



I look forward to the day when a new expression on PR practitioner will be made. “Wow PR ka? Galeng naman. Kainggit!”.


There is however one role that the PR industry has not practiced to the fullest and that is to help define the public agenda in the country that the media will cover and that the policy and decision makers will heed.


In a country where public agenda (major concerns, issues, wish, wants, desires etc) is virtually non- existent; where the policy agenda is defined by personal interests or is a reaction to issues unearthed and covered by the press (the media agenda), the PR practitioner has a distinct role.

With his/her close ties with the Press which has partly defined the behavior of both elected and appointed officials, the PR practitioner can rally behind a particular social, political, cultural, and environmental issue and release them to the press. This way the public gets to read/watch/hear these issues helping solidify its own agenda. Lawmakers and executive officials who doggedly
follow press coverages believing that they can ignite public outcry can also improve its agenda.


While this may sound too grandiose and yet simplistic in approach, the role is not an impossible task. If the current roster of PR practitioners cannot do it, the future PR – yes YOU - who are reading this material can help realize this simple dream.


By then we may hear the expression “Ang galing nya grabe! kasi PR sya eh”.