Decisive debuts - Sep 01

The heady days of the dot com-fuelled launch mania of last year are over. But instead of taking a tumble, the demand for product launches is stronger than ever. Admittedly companies are more cautious with their dollars, but they are still spending as they bring new products to market. While the pendulum has swung away from technology, companies in luxury consumer goods and financial services sectors are picking up the slack. Jack Morton Worldwide (JMW) Hong Kong claims its business has increased by up to 200% over the same period last year, albeit from a low base. The company puts its growth down to refocusing its operations in accordance with the changing demands of the market. "Companies are now much quicker to cut back on their internal celebrations than product launches," JMW managing director Hong Kong Mr Scott Schenker says. JMW Australia director of business development Mr David Kneebone says there remains a constant demand for live launches. However, there is a change in media, away from technical and human techniques such as staging, lights and dancers, to newer media, such as tailored videos and films. JMW's clients include Volkswagen, Vodafone, Cisco, Qantas, Bristol Myers Squibb and BMW. In Singapore, finance companies are proving a good hunting ground for product launches. Business for production company Anères, for example, has increased by 30% this year. "Things have been more competitive, especially since the financial crisis. People are more careful with their money," Anères creative director Mr Jon de Rule says. Among the company's financial clients are banks ABN Amro, BNP Paribas and DBS. One of Anères' recent events for ABN Amro involved a series of collectable items, such as strange pieces of art or antiques, for which the audience had to estimate the value. The intention was to make the delegates think about value and associate it with the bank. "It is no longer enough to have cocktails and speeches. You need something to capture the imagination," Mr de Rule argues. Another of Anères's events was the launch of the cable channel Animal Planet. The joint-venture between the Discovery Channel and the BBC saw the chief executives of each broadcaster riding on top of two elephants in Singapore Zoo. Launches are often held in a number of different stages to appeal to different types of audiences. They can be for direct clients, distributors and business partners, the press and even staff. But the objective typically remains the same throughout - brand enforcement. One area to clearly achieve this is in the field of customer relationship management. "The company becomes real in terms of its people. They no longer receive just a computer-generated letter, but they get to meet the chief executive officer and senior management," Mr de Rule adds. "Luxury goods, technical companies and airlines, especially with frequent flyer programmes, use this a lot to create communities with regular events. It is very powerful - 300 to 400 people in the same room discussing the company. It hugely boosts their image." Roadshow-style launches result in a similar benefit. Octagon Prism has used areas with heavy foot traffic in Hong Kong, such as Times Square. "Customers are able to meet the staff face-to-face and try out the product," says Octagon Prism account director Ms Geneviève Hilton. With offices in Hong Kong, Beijing, Shanghai and Singapore, Octagon Prism specialises in sports and entertainment marketing, handling clients such as Davidoff, Reebok and the Credit Suisse First Boston Rugby Sevens as well as Motorola, McDonald's and San Miguel. While demand for cocktail parties has fallen off with the decline of dot coms, says Ms Hilton, there is interest by companies in educational events. Often run in association with a relevant publication, the seminar subject is related to the product, which is launched at the end of the seminar. "This is good for distributors and business partners," she adds, "so they are able to learn more about a particular subject or market," she says. Octagon Prism recently held one such seminar for the Chubb Group of Insurance Companies. The seminar was on electronic security issues and the product was CyberSecurity by Chubb for financial institutions, an insurance product for financial institutions against internet crime. However, with all launches there are challenges, and the most commonly cited problem is making sure with the client the product is ready. In Hong Kong, as is also the case, and with venue space under huge demand, it serves to exacerbate the issue. "The most popular venues in Hong Kong are booked months in advance," Ms Hilton says. "We are not always sure the exact day the product will be ready, or if all the VIPs can be there on a certain day, or what the schedule is of the advertising. These factors have a direct impact on the date of the launch. If it is for more than 100 people we just try to impress on the client to fix the date as soon as possible because of the lack of space in Hong Kong." To make matters worse, some venues will not accept certain clients, such as dot com companies, for fear of them pulling out before the event, therefore running the risk of not filling the space. Unfortunately, the dot com hangover does not stop there. Event marketers are also wary of dot com clients. "Then there is an issue of audience fatigue this year. Last year people just got one invitation too many to a dot com launch," Ms Hilton adds.