More Dangerous Than Nuclear Bomb & Compound Interest… Perception!

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Nuclear bombs decimate two of Japan’s city with casualties exceeding thousands of lifes, and compound interest… Well, let’s just say that because of it, lots of people lost their everything. The Romans once even ban compound interest in their law (although we know compound interest is very lively nowadays). But there is something more than those two combined, well, what else is there except for perception.

Now first, let’s talk about what is perception means literally. Because I don’t have my trusty library next to me, I will define perception with the help from the almighty internet itself. The meaning of perception varies a lot from sources to sources, I was even kind of shocked by how many meanings it contain. However… I noticed some similarity between them, therefore this is what I interpret about perception from the various sources (link at the end of the article). Perception is our disposition towards something related through our past experience… Now that’s a new definition of perception.

Now from the definition which I have filtered from various sources means that our judgment or perception will differs wildly because a person’s personal experience is up to God’s will and cannot be constructed as we hoped. This fact is actually quite new to me. I thought that perception is a response from a person directly when that situation arise. Then, about a week ago, I talk to my father about perception, he also added something new for me. In his book, he wrote about perception is a cumulative experience of a person PLUS our instinct… Instinct? What the hell… Then he describes that almost everybody are afraid of the dark although the intensity varies. Well, this is actually true because it is human nature to be afraid of the unknown, I think it goes back to our ancestors days.

So if I might summarize it all, perception is a person attitude towards a subject prior to their experience, knowledge and mood at the time they make a judgment. I put personal mood because sometimes, people makes decision based on feelings, just a bit personal experience there.

Now let’s get into the interesting part… The examples!

Now we have Suzuki and their SX4, Honda and their CR-V, Nissan and their Livina. In Indonesia, those respective cars delivery waiting period exceeds 3 months, and the question is what people perceives about the long delivery waiting period? To the majority of people, it means that all three cars are a hot item, but to the more wary people, it means that all three company fails to estimate the market absorption rate of their products. Me? I’m one of the wary people so I perceive Honda, Nissan and Suzuki has failed to estimate the market absorption rate of CR-V, Livina and SX-4. One would argue that the company could not do anything about it because their main headquarter established a fixed quota… Well, global warming is a natural cause anyway (sarcasm warning).

Then how about J.Co and Krispy Kreme strategy here in Indonesia? They play perception game quite well if I bold enough to speak. Well, this is my blog, I can write anything anyway… One peculiar thing I noticed about those spritely donut shops are how their cashier counter and queue line is set up. Most often than not, it revolves around one single line with two cashier waiting at the end of the line. This set up will always make a long queue line even when the customer load (people coming) is just medium to high. I consider this as a stupid management, but there are two advantage of doing this. One is there are more seating space because the queueing line is just a single file, and two, people will perceive that J.Co and Krispy Kreme products are so good even people willing to wait in long line just to purchase it. There you go… Perception…. Me? Again, as my personal experience are a bit bitter, I consider it as a hassle. I demand swift service, I want to go in and out as fast as possible, so I just consider J.Co and Krispy Kreme queue strategy as lacking management wise. However, us we are Asians who are typically does not want to be left out of the “loop” will consider this queueing line as something that is “hip” and we as people must follow that trend. Because we perceive that if people stand that long for just an over the top sugary treat or whatever it is must be extremely good… Me? I don’t like queue lines, when I buy donuts I bought Dunkin Donuts or Krispy Kreme, just because they have shorter queue line than J.Co.

So there you go, perception. I can go on and on about the examples of perception, but it is a little bit of a moot point because there are just too many examples out there already.

Until then, XOXO… (I’ve been watching too much Gossip Girl)

The Sources:

American Marketing Association definition of perception
International Federation of Library Associations and Institutions definition of perception
Canadian Food Inspection Agency definition of perception

Happy New Year Everybody!

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Goodbye love Welcome Love

 

It’s that time again when we have to say goodbye love

To old times when we had so much fun

Where you and I said things that made us laugh and cry

Saying goodbye love to times gone by

 

Goodbye love and welcome love

To times where tomorrow is ours to shape

Where nobody have no say for the path we take

Saying welcome love to times coming by

 

Goodbye love and welcome love

Is not about what we had in our hearts

But it’s about time gone by and the time coming by

Love knows no goodbye and welcome

 

Because love is always there in our hearts and the future is ours to shape

 

Happy New Year everybody!

Confession of A Marketer Part One

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Just like John Perkins came out from the closet and relieves his past doing in a book entitled “Confession of an economic hitman”, I’m going to do the same only with a different context.

In a very brief summary, Perkins wrote about his job as an economic hitman, negotiating lucrative deals that benefits his employer but the deals always has a catch. The catch is that his employer gets more than enough and the host country usually gets… Well, less than nothing or at least just enough. The way Perkins did his job back then is to use advanced negotiation and communication skill, combined with advanced financial knowledge to literally cheat the host country to sign up deals that actually do harmful things for them.

Now, I used to be a marketer and putting myself up to Perkins level is absolutely stupid… I do however worked like him, putting up communication skill to make people believe what I said and do what I wanted them to do. In my country, marketing is a branch of communication major, where applied theory of communication is all too relevant. In advertising 101, it is said that what we do in daily life is marketing in itself. When we talk, we brought about tone and manner, with a message to convey explicitly or implicitly, and we expect the person that we talked to respond in ways that we have anticipate so we can reply accordingly. The last sentence alone is the most basic form of marketing, and that is just one part of our life. What we wear, what we eat, where do we go, who our friends are, where we live, all reflects our status. Status, something that we wanted people to perceive us, same like many brands wanted and formed perception of their selves. BMW “The Ultimate Driving Experience”… Is it? I heard and read Ferrari cars offer the best driving experience of any car/brands… D’oh, given Ferrari unified product portfolio (all Ferrari cars are semi professional racing cars).

By creating false assumption to garner intention and perception, marketer basically lies as their daily job. Why said marketer lies as their daily job? Well, it’s very simple… What would you say to your boyfriend/girlfriend’s parents? You will say something that impresses them, something that you did or currently do but you exaggerate it through the roof. Basically creating a false assumption, or true to some extent. It’s not necessarily lying, but what is that term again… When you are not telling the whole truth? White lies? Well, there are many type of lies but it is still lying.

Some marketer even abuse the concept of marketing in the sense it became no longer relevant to the product. I have the best example for this. In my country there’s a local notebook company with the name of BYON. As a newcomer how could they garner attention from Indonesian IT consumers who are easy to sway by international marquees? They have to be innovative, have to be different… But what they sell is just old plain notebook, the same as multinationals brand who already established strong brand image in the country. With a strong barrier to entry, what does the marketer at BYON did? They create a perception that their notebooks are “upgradeable”, and they use Indonesian record museum (Indonesian version of Guinness book of record) achievement frequently.

Are BYON claim about their products as upgradeable is true? Well, to some extend yes, but basically they are just claiming what other national/multinational notebook brands already capable of. It’s what we call in marketing term as preemptive claim, claiming something that is already common but never been claimed. I’ve wrote up about preemptive claim here. For that I have nothing to say about BYON because they are just practicing common marketing effort. But then there’s the record setting claim… This one I really don’t like… They set a record as being the first notebook that uses gold and diamond on the cover… What the hell… What the hell… Then they set another record, about creating a Christmas tree using BYON notebooks. Does the record settings are relevant to BYON products which are mobile computing? Big fat NO.

Record settings supposed to be relevant to the product. Honda for example, in Indonesia they set a record of using 1 liter of fuel to travel an average 70 kilometer (43.5 mile); now that’s relevant even though how that fuel consumption number is achieved through questionable ways. Then, there’s Suzuki Shogun, a small bike that claimed a record (noted in Indonesian record museum) of being run through racing circuit for 24 hours non stop, now that is dead relevant to the product. How BYON abuse their non relevant record setting claims to me is very non sensical. If I could humbly offer a record setting claim that is good for them is about battery longevity. They could use a high capacity battery and they could sell this battery to the consumers at premium price because it has that “record setting” status.

There’s this one book written by Budiman Hakim, creative director for Macs909 (Indonesian advertising agency) entitled “Lanturan tapi Relevan” or loosely translated to rubbish but relevant. In that book he wrote about advertising is a simple thing of acknowledging one unique selling point of a product/brand how small it is and blow it sky high to achieve the desired result. For those who are new to advertising/marketing world in general, I recommend you read this book because of its light approach to the subject. The man was my former employer and although he doesn’t remember me, I learn quite a lot from him.

This entry is actually my reason for making this blog. I want to share with the world about advertising, and marketing in general from my point of view. It is not rocket science by any measure, but still, a lot of marketer doesn’t adhere to the basics of marketing. Instead they use complicated brand/product perception creation through unorthodox methods. Remember guys and gals, do not, I repeat, DO NOT take “thinking out of the box” too literally. When you have objective and direction you are in “the box”… It’s thinking on the boundaries without going over that is most important.

I used to want to name this blog the confession of a marketer… But that’s just too melodramatic.

PLEASE MAKE THIS BODY KIT AS STANDARD HONDA!!!!!!!!

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As I was writing about the confession about being a marketer… I stumble upon Temple Of VTEC preview of Honda cars that received a “prototype” body kit treatment for the upcoming Tokyo Auto Salon show. Honda brings three blinged up ride, the Civic Type-R, the fat Accord (called Inspire in Japan) and the Fit.

The Fit only receives small interior update, because it’s fairly new. The Civic looks like shit… Sorry, I have to say it. It just looks like garbage, complete with garbage like stickers. It’s like a 12 year deranged kid got mad because his mother doesn’t buy him playboy and he’s playing with Need For Speed Underground after a marathon of pimp my ride… It’s just wrong!

But the Inspire… Holy Marry mother of God! Please Honda… PLEAAAAAAAASSSSEEEEEE Make this body kit as an option for the Accord globally, not just Japan. I will delete my post about my rant of how 2008 Honda Accord looks like and put up an open apology letter on this blog for Honda. OMG OMG OMG OMG OMG OMG OMG OMG OMGWTFWTHROTFLLCBBQ!!!! It makes the so-so Accord looks like awesome, it screams presence, menace and respect.

Click here for source and more pictures

Honda Head Honcho: Hybrid War Is Beginning, Civic Hybrid Was A Mistake

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Well, finally the head honcho at Honda Japan has declared an all out hybrid war and stating that Civic Hybrid was a mistake. Starting 2009, Honda will release an all new dedicated hybrid car like Toyota Prius, no longer the hybrid car is based off an existing car.

This actually a long awaited news personally for me… For the longest time I feel that Honda is making a mistake with introducing Civic Hybrid. Toyota Prius as a dedicated hybrid car is instantaneously recognizable as a hybrid car, unlike the “hybrid in disguise” of Civic Hybrid. From marketing point of view, Prius drivers will get a direct recognition of being “environmentally conscious” because the car looks different, and thus people can directly associate it with hybrid. The Civic Hybrid on the other hand… Looks like a Civic, a car that is commonly associated as… Common.

Here are some screenshots of the an existing mule of the supposedly dedicated hybrid.

global hybrid face

global hybrid back

As you can see, Honda’s commitment to introduce a dedicated hybrid is in full steam. Above are pictures of a frankensteined Honda Fit front end on Honda Airwave chassis taken sometimes mid 2007, supposedly tested using the all new hybrid engine. Pictures are taken from… Motor Trend…

Honda also introduced CR-Z, a concept car at 40th Tokyo Motor Show. The car will be gas-electric hybrid, and aimed at performance oriented market… It has the looks, but the gas-electric engine will be something less desired from performance point of view.

Honda CR-Z
Honda supposedly dead serious about the hybrid war. In 2009 the car that is being tested with the frankensteined Fit/Airwave will be available worldwide according to Honda CEO year end speech of 2006, and the car will be cheaper than the current Civic Hybrid. The CR-Z however remains a mystery regarding of its mass production date although Takeo Fukui has mentioned that the car is on its way to production. Probably Honda will deliver a one-two punch by delivering two hybrids at the same time in 2009. The Prius fighter and the CR-Z.

The Prius Fighter, supposedly sized bigger than the Fit but smaller than the Civic will be priced accordingly… Someway between the Fit and the Civic. In America, Civic Hybrid is US$22.000ish, and the new hybrid car supposed to be less than that.

Sources:
Edited… Fixed some release schedule error, I was so sleepy when typing the entry.

Let’s Talk About The New Fit Engine

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As I have noted previously on the new Fit engine, a recent review from asia.vtec.net has proved that I am dead wrong about the speculation of the new engine used in the new Fit. I mentioned about the Fit’s engine uses dual sequential ignition system coupled with VTEC cam changing mechanism… As it is reviewed… Apparently the new Fit engine make do with single ignition system.

My assumption was stemmed from the new Fit 1.3L engine torque curve which maxed out at 2800 rpm (the same as the outgoing 1.3L i-DSI engine), and flat lined with tendency to dip. However at 3200 rpm the torque shoots up again until it reaches 5100 rpm, most likely attributed to the change of hotter cam profile, a proof of VTEC mechanism applied. However, as I have noted, the engine uses a single ignition system… And I can only say… WHAT THE @#)(*&^%$! HONDA!! Why can’t you use this system since day 1??!! I’m upset because as an i-DSI Fit owner, the 1.3L I-VTEC is like a dream engine, high torque at low rpm but can spins high and produce more power. The outgoing 1.3L i-DSI engine only produces 86hp, 14hp less than the new engine with the same fuel consumption.

The new 1.3L I-VTEC achieves power and frugality similar to the outgoing engine because it employs valve deactivation system… I’ll quit the technical mumbo jumbo, and go straight to the point. When the 1.3L engine is cruising it runs on 12 valve, while running hot (accelerating), the full 16 valve goes into action. Just what VTEC was intended, frugal low speed and cruise speed, while power can be achieved at wide open throttle condition

The new 1.5L I-VTEC produces a good 120ps, the highest naturally aspirated production 1.5L power output on any car in Japan. This number I assumed came from a “chipped” 110ps old VTEC engine… And again I am dead wrong. The old 1.5L VTEC uses valve deactivation system that is now used on the new 1.3L I-VTEC. Replacing that system is a full 16 valve that unlike found on the 1.3L version is that the 1.5L changes the valve timing and it also employs a cam changing system. While the 1.3L valve deactivation system is intended for low speed/cruising speed as the engine allow it, the 1.5L is designed for all out performance. Because the 1.5L only changes the valve timing, it is faster at generating torque across the rpm range, no flat line or dip in the torque curve like the 1.3L engine because it takes a bit time in activating the valve.

I really don’t know what I’m talking about here except for the 1.3L I-VTEC engine… After all, aside from marketing and general Honda stuff, I’m clueless… (Well, I have some more qualification but I don’t want to brag). More clear information can be read on asia.vtec.net website provided below.

Temple Of VTEC ASIA Fit Engine Overview

Proton Vs Indonesia: Between Dreams and Reality

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Proton as one of SE Asia own automotive marque is regarded as one of the most successful brand in the industry. As a SE Asia bigger company, it stretches its sales network to Europe, Middle East, Australia, New Zealand, Singapore, China, many other countries and recently Indonesia. Even though many late comers did not enjoy high growth or sales immediately, Proton sales in Indonesia is awfully lacking.

Indonesians are well known for their impulsive buying habit and have tendency to become super early adopter. Many China made bikes, cars, products which had bad quality being bought as soon as they come up, and the reason why because they are cheap. Sure in the end the quality problem rears its ugly head and people started ditching them. However, Proton did not enjoy that kind of “first step” as none even bought their products (well actually there are some). Until today since last year Proton opens up its business in Indonesia, I only saw 4 Protons on the road with one of them being towed… Probably had a problem, the driver seemed very unhappy. So why oh why…?

The reason Proton is very unsuccessful in Indonesia as far as I know is attributed to several obvious things. One being political, two being product portfolio, and three being the product styling.

Politically, Malaysia and Indonesia has a bit of tension regarding Indonesian labor being treated bad there. As deaths has been reported due to neglect and abuse in Malaysia. To make things worse, there are claims about Malaysia claiming Indonesia’s cultural products such as songs, indigenous dance and what not. I would not go into details because I think politics are stupids and most politician goes where a marketer and lawyers went when they are dead anyway.

On product portfolio front, Proton only made available cars which are sedans and supermini, which are cars most Indonesians dislike. Indonesian market dictates that a car must be:

  1. Cheap.
  2. Can sit minimum of 6 comfortably.
  3. Frugal
  4. Handsome… This one is subjective

So Proton current product portfolio only consists of two sedans, one hatch coupe, and one supermini hatch. They certainly could not seat 6, the price range is weird, their looks are… Somewhat unique, and frugality is unproven. Proton’s product price range is unique in a connotative way. Proton Savvy as a supermini is aggressively priced at Rp. 107 million, that is quite right, considering it is automatic model, the Gen-2 sedan hatch is also attractively priced at Rp. 146 million, so does the Waja sedan at Rp 168 million (all A/T models). However, the Satria Neo, which is a 2 door hatch coupe is priced at Rp. 190 million, quite expensive for a late comer considering at that price you can get the more popular Honda City VTEC A/T. So price is okay, one star product with three cash cow is not bad at all.

Then there is the look… Frankly speaking personally, aside from Proton Savvy, all of Proton’s offering is… Different… In a negative way. The Savvy is different in a unique way, it looks very European. The unique side profile, the center exhaust, and every line puts me head over heel. If I have excess money, then I will buy this car, but since I do not have any, then it will have to suffice I am writing good impression of the car 🙂 Do you know that the Savvy has engine and transmission lifted directly from Renault Clio? Yup, the D4F engine and Quickshift 4 (or is it 5?) can be found powering the Savvy. Some say the Savvy itself is based on the Clio, but I could not found definitive info on this. Suffice to say, the engine and transmission itself is worthy to be called awesome, as this means that Savvy is a true European car. There is a popular culture here in Indonesia that if you cannot afford Mini Cooper, than Suzuki Swift is the next best thing… WHOA! The Swift might have the look, but the Savvy is the truer representation of European technology (because it actually is). Interior wise it is also quite good, considering it is a Rp 107 million car.

Other Proton cars… Err… The Waja looks like small VW Passat, a bad impersonation that is. The Gen-2 rear end is good, I like it, but the overall roundness does not suit the front end of the car, which happens by the way has smallish headlights. Proton Satria Neo profile also look like it belongs to the 90s. Overall, aside from the Savvy, all Proton cars looks outdated to me.

So why Proton is unsuccessful in Indonesia? Aside from political problems, Proton did not do the number one mantra in the business world, they did not do enough marketing effort. Marketing effort to change the perception of Proton when it was just taxi fleet so many years ago. The problem is, Proton Indonesia needs to get rid of its taxi fleet image that has been perceived for so many years. Mind you, when Proton (Saga) was used as taxis, it is not a good taxi, the ride was rough, and the engine noise was awful. Sure time changes everything, but perception is one thing that time could not easily change.

So Proton needs to change or rather reinvent their marketing strategy. For sure the existing campaign is less than effective, and they can follow what Suzuki, Toyota and Honda had done in the past to introduce youth oriented marketing and approach. At least the Savvy is quite good, Proton could abuse the European connection because people are sucker for International exposure.

One more thing I like about the Savvy is that it looks very different than any other car out there. Perfect to be targeted to those who wanted to be different.