With a relaunch which started last month and a new branding campaign in place, retail and sewing giant Singer is looking to create a warmer and more human image, promising consumers 'Dreams for your home'.
The brand has been in Malaysia for 98 years and is known worldwide for sewing machines, but also sells furniture, electronic goods and household appliances. Singer has 133 stores in Malaysia, making it the largest retail chain in the country. But, according to Jackie Wong, senior manager for corporate marketing at Singer Malaysia, the biggest challenge facing the brand is the perception that it is old and non-progressive.
"Although the brand is very well known in Malaysia, there is a common perception among consumers that we are old and not very dynamic," she said. "With our new branding campaign, we hope to change that perception and show people that we are in fact modern and keeping up with the times."
According to ACNielsen research, Singer Malaysia's year-to-date advertising spending is already fast approaching its 2003 full-year spend, showing the determination of the brand to increase sales and raise awareness.
Singer's sewing and other home appliances are available as a 'one-stop-shop' solution and the brand is attempting to fill a niche in the Malaysian retail market as a brand which is both affordable and flexible. The company considers itself a pioneer in offering flexible 'easy payment schemes', which give consumers the opportunity to pay for goods by monthly instalments.
Its recent TV and radio campaign has focused on branding in order to build consumer loyalty in a category that is primarily price-oriented.
The brand has also struggled with the fact that since it does not manufacture its own products, it cannot focus on technological features like market competitors Toshiba or Sharp, for example. Therefore, Singer has tactically repositioned the brand with an emotionally appealing edge.
"This branding campaign is long term; we hope that in 10
VITAL SIGNS
ALL MEDIA COMPETITIVE EXPENDITURE ESTIMATES
Total Media Television Newspapers Magazines Radio
RM '000 RM '000 RM '000 RM '000 RM '000
Jan-Apr 2004 400,171 - 382,971 - 17,200
Jan-Dec 2003 549,434 - 505,114 34,650 9,670
* Total Singer covers all kind of Singer related ads, by products and
corporate. The above figures do not include Singer's latest campaign.
Source: ACNielsen
DIAGNOSIS
ARTHUR CHAN, GENERAL MANAGER - WUNDERMAN MALAYSIA
Singer has a rich heritage in Malaysia. It's well known and well regarded, especially by the older generation. Therein lies the problem. It has failed to move with the times and largely still remains a sewing machine company - "the one my mother uses!". Among the affluent and younger segment, Singer has lost relevance and lacks differentiation.
The brand is also seen as one for the lower income segment, especially with its installment plans and easy payment schemes. Among the more affluent, it is further disassociated and competes with other leading consumer electrical/electronics brands (e.g. Panasonic, Sanyo, Philips).
In the realm of electronic and electrical brands, chicness, dynamism and quality are key factors affecting choice among the younger segment.
Singer lacks chic and delivers average quality and dynamism. Therefore, the opportunity seems to lie with the lower income segment. The brand has a relatively stronger disposition in this segment and the parent company's infrastructure (Cosway) is well positioned to target this demographic.
If the brand decides to go for this lower end of the market, then the affluent market is not a factor. That leaves only age as the main hurdle.
It needs to cultivate a new generation of users and make itself relevant once again.
SHUKRIE RIFAIE, CHIEF EXECUTIVE OFFICER - BATES MALAYSIA
Singer has a brand heritage trusted for generations, with the sewing machine being the most significant item that it is associated with.
The brand appeals mainly to the lower-to-middle income Malays, due to its easy payment schemes. The scheme has strong support in the after-sales service network, which ultimately retains its customer base by extending further sales upon completion of payments in a previous scheme. With this, the strength is not so much in the loyalty of the brand, but the affordability.
Credit equals affordability and accessibility to purchase. Thus, brand loyalty or affinity is secondary. Focusing on this set of consumers alone does not provide leverage for brand association at a more premium level.
Recently, an interest-free monthly installment payment scheme has been offered by major credit card companies via most of the retail outlets within the category. This mode of payment opens the door to a whole new set of steady income earners who are already exposed to credit. The opportunity is to extend its consumer base but, at the same time, margins will be affected at the reduction of interest rates. In this highly competitive category where quality and features are at a state of parity, the strength of the brand plays a significant role as a purchasing factor.
TREATMENT
Chan's prescription
- Become more chic, that is, charming, sensuous, glamorous, stylish, fun and trendy. Singer should work on a new brand positioning which will appeal to the younger segment.
- Build on its heritage, which has been founded on quality and trust.
- Create a sense of belonging via a loyalty programme that acknowledges tenure and share of household appliances.
- Exploit the Cosway infrastructure, which would create a ready market for its products.
RIFAIE'S REMEDY
- Undertake a branding exercise to make Singer more relevant to upper-to-middle income Malays and, expand its consumer base among the more affluent Chinese market. Elevate the brand status and establish brand relevance.
- Embark on an approach to capture cash purchasers at general retail category outlets. To have the right product representation at these stores, especially among the big players in this highly competitive environment, brand strength is key.