PR dynamics: A shot in the arm for better business
In today’s spirited world of doing business, companies need to be on their best to stay ahead of the competition.
They face a string of responsibilities in their day-today operations, not to mention managing shareholders and stakeholders as well.
As such, the development of a strategic approach to communications, in line with a company’s long-term vision and corporate direction, is imperative and critical to success.
Here is where public relation companies come into play. Strangely, not many are aware of the various skills a PR company offers to keep cash registers ringing and at the same time maintain decorum and ethics in the world of business.
It is crucial for companies to keep the public well-informed on its developments on a continuous basis, says Imej Jiwa Communications Sdn Bhd (Imej Jiwa) founder Stanley Khoo.
Good public relations within a solid integrated communications strategy acts as an excellent platform to build trust f rom the various stakeholders and to ensure that expectations are well managed, he told BizHive Weekly.
“It should also be highlighted that an integrated communications strategy should be proactive instead of reactive. Companies should constantly monitor the public’s perception about themselves by carrying out perception audits and various other exercises.”
A PR team is crucial to handle a slate of responsibilities which goes beyond corporate branding, outreach events, media relations, social media, and crisis management. ‘Brand values under scrutiny’
Companies are often put to the test as well, sometimes in situations undeserving. Take, for example AirAsia Bhd (AirAsia) in the handling of the QZ8501 tragedy.
Upon hearing about the situation, the team’s top management including founder Tan Sri Tony Fernandes immediately took to Indonesia to monitor the situation from the ground, aiding every step of the way while keeping the media abreast on any updates via emailled press statements daily.
Fernandes was lauded by many parties for his timely and frequent updates via Twitter of what he knows and to provide hope in that dire situation. Some have even commented on Fernandes’ personal touch as “befitting the AirAsia brand.”
Indeed, the CEO was very hands on in the manner in which he handled the crisis, bearing in mind the gravity of the situation.
Maybank Investment Bank Bhd analyst Mohshin Aziz said in a report, it was human nature to have a high level of anxiety whenever a fatal crash like this occurs and customers are likely to look to alternatives.
“Management stated that daily sales of AirAsia passages have declined modestly, but we think this could be supported by advance purchases ahead of Chinese New Year (CNY),” he detailed in his Jan 9 report.
“AirAsia’s customers typically purchase their tickets 1.5 months ahead of time, and perhaps even longer for travel during the peak period. We will need to revisit the daily sales after the CNY period to determine the severity of the impact, if any.
“This tragedy is not seen as just an Indonesia AirAsia (IAA) event only, but rather the entire AirAsia group of companies (AirAsia, AirAsia X and AAV) are affected. Therefore, we expect lower load factors and yields will affect the entire stable in the short term.”
Central to AirAsia’s brand personality is to be brash, fun and to be perceived “to be for the people” as well as antimainstream in nature, Mohshin said.
“This image is not suitable at the moment given the delicate emotions, and AirAsia has to tweak its ways to be more subtle and sensitive. This puts AirAsia in an unfamiliar environment.
“We think this QZ8501 incident will force AirAsia to alter some corporate plans in 2015. Marketing campaigns will need to be beefed up to restore customer confidence.
“Traffic growth plans will need to be revisited and the timelines for the new JVs (Japan and India) will also have to be revised.
“It is customary to beef up marketing campaigns to rebuild customer confidence following such accidents. Right now, the level of anxiety is high, and most of it is driven by perceptions rather than facts.
“Therefore, the company needs to reinforce and showcase its true potential, its commitment to safety and customer experience.” Finding the right position within the market
Almost all large companies either have a public relations department or outsource their PR needs to professionals, like Esente Communications (M) Sdn Bhd (Esente Communications) based in Kuala Lumpur.
What makes this company stand out from its peers is that the group positions itself specifically for companies planning to list on Bursa Malaysia, promoting its services to “work with your company throughout every stage of the initial public offering (IPO) stage as well as the crucial postIPO period.”
The company has offered consultation on some of Malaysia’s largest IPOs over the past few years.
“Over the course of my advisory career, I have met with many business owners that absolutely believe that their only focus is to develop a great killer product that will be good enough to attract buyers from their target market,” Darren Wong, a co-founder of Esente told BizHive Weekly.
“Sorry to say however, a great product or service doesn’t sell itself.
“In this dynamic market environment, your competitors are offering almost the exact same product or service, so it is not so much about what they are buying. It comes down to the reason they are buying from a specific company.
“A good PR programme consists of sound strategies and clear and powerful messaging, directed to the right audience to build positive feelings so that your target customer will respond positively to what you do or what you want them to do.
“Therefore, whether you are engaging investors to acquire your company’s shares, or looking to attract customers for your company’s products, PR is absolutely crucial.”
A PR company has many duties not only to company shareholders but also to other relevant stakeholders, says Esente’s Wong.
This comes as many owners of public-listed companies have the impression that they should only focus on operations and that giving good returns to investors are their primary duty.
“While I do agree that giving good returns to investors is important, engaging with investors is equally important,” Wong affirmed.
He went on to express his opinion that public listed companies need to actively engage with stakeholders and accurately inform them on the company’s direction, performance and ensure full financial transparency.
“They need to make sure that each stakeholder’s interests are being addressed. I have seen too many good companies that have been undervalued for various factors.
“Most often than not, these companies have very weak or a non-existent investor relations programme. When they stop engaging with investors, they should expect to lose them (investors).
“With so many public listed companies to choose from, most likely than not, investors will consider those that they are aware and comfortable with. In the world of supply and demand, when there is a decline in demand for the shares of the company it’s obvious what happens next.” Spotlight on Sarawak
Sarawakian corporates are not spared from the spate of issues surrounding PR and branding matters, some even within the media’s sight.
Many companies still hold to the traditional mentality of placing focus solely on the “back-office” operations, such as operations, manufacturing, payment and delivery of goods and services.
The problem lies in the lack of emphasis towards PR and branding efforts, or front-office matters.
“I have had the privilege to work with some East Malaysian folks. I do find them very practical, humble and down to earth, which makes them really great to work with,” says Wong from Esente.
“I do however notice that many of them don’t feel comfortable doing investor relations and public relations work when it requires them to present and speak to strangers which is absolutely normal.
“Today’s IR and PR programs however like the ones we offer at Esente include training for directors and spokespersons before they go out to meet with media or investors.
“These training sessions include the understanding of the media and investment landscape, body language and style when delivering your messages as well as key techniques to be used when answering difficult questions.
“We make sure they are ready before going out.”
Wong also stressed on the importance of maintaining good public relations as an integral part of running a successful company.
“That being said, many companies in the East have yet to realise its importance and the benefits that well-managed public relations can bring to their corporate bottom line.
“Don’t let this
valuable resource that can contribute to your corporate success remain untapped. Don’t just focus on the kitchen, it’s time to look at the storefront as well. The results might surprise you ... positively of course.” Building a corporate image
Executive director Mahathir Mahzan from Imej Jiwa said that as investor relations and financial PR consultants, their duties include, but is not limited to, developing and updating a company’s messaging house which is used consistently across all mediums of communications.
“This is to ensure that messages imparted to the public are consistent and that the company’s spokespersons speak in harmony,” he said.
“The messaging house will also highlight sensitive non-public information that is not to be made public prior to announcements through proper channels which may impact the company’s share price,” Mahathir noted.
It was also crucial to facilitate and monitor external communications through oneon-one meetings with analysts and fund managers, media interviews, press conferences, analyst briefings, press releases, annual reports, social media and so on, he said.
This was apart from marketing or promoting the company to specific target audiences such as potential investors (retail and institutional funds) and research analysts.
“A thorough understanding of the operations of the company and financial track record also needs to be developed. This also includes the preparation of the necessary marketing collaterals such as investor briefing presentation slides, corporate factsheet and media kit.”
Companies also should develop and update their company’s Issues Response Kit – a database of anticipated questions that may be asked from the investors, analysts and media, and the proposed responses to the questions.
“The Issues Response Kit will be a continuous work-in-progress as it will be updated accordingly depending on new corporate developments.”
Imej Jiwa says it also monitors daily newsflow on the company, its competitors and industry. Handling investor sentiment
PR companies such as Esente and Imej Jiwa offer services to companies looking to enhance their image, especially when it comes to investor investment.
Imej Jiwa, for example, says in addition to brainstorming with the company’s management to develop its messaging house and preparing the required marketing and communications collaterals and materials, they will also prepare the company’s spokesperson prior to media interviews, investor presentations and press conferences.
“Public listed companies typically engage our services to leverage on our expertise and network (media, research analysts, fund managers and investment banks) in order to ensure that the investment community is fully aware of its corporate developments.”
To note, Imej Jiwa mostly handles corporate events which include launch of a company’s IPO prospectus, shareholders’ meetings such as annual general meetings and extraordinary general meetings, signing ceremonies, press and media conferences, launch of new headquarters or offices and other events that we tailor for our clients.
“For these events, we will be responsible for the planning and concept proposals, drawing up the budget for the event, arranging the venue and catering as well as the production of the event, such as stage, backdrop, light and sound, launch gambit and so on,” added Khoo and Mahadzir.
Meanwhile, Esente affirmed that it manages and facilitates engagement and interaction between the company and all relevant stakeholders, the general public, and the investing community, in the case of PLCs.
“We help to craft and deliver a clear message through various channels and mediums to all stakeholders using an integrated communication strategy,” said Wong.
“We ensure that public perception of the company is managed both during times of crisis and success, apart from helping to build a positive brand image and presence.”
When asked whether it was important for companies not only to build an image, but also to maintain and evolve that persona as the company grows, Khoo said it was a valid point.
“However, we must add, that it is imperative that the company delivers on its promises. Investors and analysts typically take into consideration the company’s historical track record. But more importantly, they will look into the company’s future potential.
“We also think it is important to engage the public and keep them informed of both good news and bad news. For example, if earnings did not meet expectations, it is good for the company to inform the public as to the reasons instead of keeping quiet.
“If there are problems within the organisation, it is very important to be proactive and plan accordingly and keep the public informed before it turns into a PR disaster which will result in the public losing trust in the company.
“We will just highlight that a proper integrated communications strategy is crucial to a company’s long term success, and should be considered as important as other strategic initiatives.
“Companies that continue to take a laissez-faire approach to communications and put it in the back-burner without a clear sense of direction will risk losing its competitive edge and market relevance.”
Achieving milestones
Esente’s Wong said most of the corporate milestones of any public listed company or companies that are about to be listed need to have their plan rationalised and properly communicated to the investing community.
Some of the example milestones would be initial public offerings, mergers and acquisitions, the signing of agreements, contract awards, asset deliveries as well as the whole gamut of investor relations which includes analyst briefings and networking sessions with the investment community, interviews and networking sessions with the media, he said.
“We also handle product launches, site visits, press conferences, and other related media and public engagement events,” he added.
“We also advise and consult on the creation of important internal standard operating procedures (SOP) such as crisis management, social media policies or strategies.”
Public perception is extremely important to a company’s business, as in the example of a running a coffee shop, Wong explained.
“Imagine you run a coffee place. You make extremely good coffee and your back kitchen, squeaky clean. Your storefront is messy and not well maintained, however.
“The customer will be quick to judge that your coffee place is not properly run and that the kitchen is probably as messy as the front as well as assuming that the food quality is average at best. This customer will probably not come back again.
“Similarly i n t he corporate environment, even if a company is well run and produces a fantastic product,ifthecompanyismessyand disjointed with its communication strategy, customers or investors will definitely think that its product or operations mirror their uncoordinated communication style.
“Hence to keep your customers and investors loyal, it is extremely important to maintain a good image. “
As such, humanising your brand and having a good persona is the key to giving the answer to the question “why” the customer or investor should invest in your company.
“Sustaining this positive image is the true measure of success.”
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