MARKET RESEARCH: BEDROCK OF BRAND SUCCESS

By Roger Pe
June 20, 2016
Philippine Business Mirror
Full page

What is the difference between a Salesman and a Brand Builder? 

A Salesman commoditizes his products and expects the cash register to continously ring merrily for him. He is sometimes a business copycat with a “Zagu mentality” - one who minimizes risk by lowering his price against prevailing market winds and does not care if his brand benefits are still relevant to the market.

A Brand Builder constantly innovates and improves his product. More importantly, he adapts to the business climate as it changes with the times. His advertising messages get noticed, connect and engage with consumers. His moves are spot on. 

He does not believe in guesswork. He knows his business war and creates a plan with marketing savvy. He positions himself to strategically zero in on his target. He is able to do all of these because he does not sweep Market Research under the rug.

There are many products that do not become brands and eventually become brand failures. Blame it to hit-and-miss salesmen who do not begin with the basic: Market Research. 

“Everything begins with consumer market research, but businesses rarely undertake such studies for new product development and innovations, even testing new advertising campaigns,” says MR expert Germaine Reyes, Co-Founder and Managing Director of Synergy Market Research and Strategic Consultancy. 

The Philippines has seen millions of pesos wasted from failed new product introductions or mediocre advertising campaigns. “Even companies go bankrupt or retrench people, simply because research was not done at all, results were ignored, or research was improperly done,” Reyes laments.

To minimize chances for failure and maximize chances for success, it is imperative that one must think like a Brand Builder. “Do your homework. Do your research,” Reyes says.

What is Market Research? The etymology of Research (Re-Search) comes from the Latin word ‘sercier’ meaning to go around in "circles" till one finds the answer. Reyes says Market Research is “like crime scene investigation work - forensics to investigate not the crime scene but the Consumer Scene.”

Smart marketers use it to know where your brand stands compared to competition. “Your innovation efforts for your brand that address consumers’ unmet needs can also be determined by a good Market Research,” she adds. 

It is also a great way to test product and advertising concepts, including key messages to evaluate which ones your target customers can relate to. 

Here is Reyes in a much deeper conversation about Market Research, its role on brand success and why you should invest on it now:

What is a great Market Research?

A great MR study is one that achieves the objectives set for the study, but also provides other leads to achieve greater, strategic growth. Some examples are: 

An FGD (Focus Group Discussion) originally conducted to understand consumer perceptions towards a particular brand can also help sharpen a brand’s positioning and identify specific areas for improvement in a brand’s advertising executions. 

Study to determine reasons for the weakening of a brand that can also unearth insights into a new product innovation for a potential brand re-launch. 

A customer satisfaction study that provides idea on product quality and service provision enhancements but also emerges insights on relationship handling, specific communication for certain phases of the business, advertising and PR leads.

Why should companies invest on Market Research?

Market Research is the first step in doing business. As Peter Drucker, the father of modern management, preached, “the purpose of business is not to make a profit, but to create a customer”.

The hallmark of the world’s biggest companies and most valuable brands is strong marketing and innovation anchored on their in-depth understanding of consumer brands superior to the competition. 

No less than Steve Jobs insists that development of technology must begin with consumers not in the laboratory. Indeed, everything begins and ends with the consumer. 

What are the pitfalls of doing a business without Market Research?

Global research studies have consistently shown that a major reason for failure in business start-ups and new product launches is a lack of understanding of consumers. 

Companies big and small have fallen into the trap of misreading the market and not developing a thorough understanding of consumer needs and wants, tastes and preferences, and validating if consumers would choose their brand over competitors. 

An innovation that’s not hinged on a relevant consumer need will just be an invention because it answers a question that nobody’s asking.

How advanced is Market Research in the Philippines?

For the local subsidiaries of large multinational companies (MNCs) especially in the fast moving consumer goods (FMCG) sector as well as for certain Top 1000 companies, the Market Research practice is far more advanced versus local counterparts.

  

The local companies, however, view research as a cost rather than an investment in building their knowledge about their customers in order to enhance and fit their products and services better with their customers.  

This can put the local companies at a serious competitive disadvantage in the marketplace. We believe there remain substantial opportunities for local companies to drive their revenues and profitability by undertaking more comprehensive and in-depth consumer learning programs. 

This is to make sure that consumers will continue to buy their brand and be resilient from competitive efforts. We need more CEOs who ask business questions to its internal groups, challenging the status quo and asking for a validation of their hypotheses or gut feel in order to stay ahead of competition.

We need them to think of market research as an investment in order to make more targeted decisions rather than a trial-and-error decision-making type. A colleague once said, ‘need to postpone success [by doing research] rather than fail on time’. 

What makes a great Market Research company?

The end-all or be-all of great market research is not just to provide data but to succinctly understand what’s working or not, how they can improve on their performance and what could be options to consider to make better, more informed decision-making. 

This is much the same way that a King consults with his sage for words of wisdom – just like King Arthur and Merlin in Camelot. The market research company serves as the ‘think-tank’ and/or consumer consultant for the Client-company.

Can you name a good case study with a good Market Research?

A petroleum company once was interested in purchasing a small competitor that they believed was the market leader in a niche that they were interested in. The market research revealed that it was not well known to consumers as it was initially thought.  

Likewise, the brand didn’t have the equity that the company assumed it did. So they put off plans for the purchase and saved a couple of hundred million pesos.

A company planning to introduce a new brand in a category that has few players thought that just by creating a lower-priced brand than the leading brand can effect switching.  

It was found that lower price, per se, has to be coupled with a compelling reason (a differentiating factor other than just price) to effect switching from the leading brand, as there is ‘hiyang’ factor to contend with. 

Mothers of a certain socio-economic group segment apparently were looking for something compelling to enable them to switch from their current brand. 

Why is Market Research good for advertising campaigns?

In the words of Advertising Guru David Ogilvy, MR allows client and advertising agency to “TEST” their executions to obtain critical feedback on message comprehension and reactions, recall and purchase intent. 

This should be done before millions of pesos are spent in final commercial production and media to maximize mileage and avoid waste.  

Have learned from my training in BBDO that a strategic campaign with a not-so-good execution is still better than a non-strategic campaign with great execution. I am still a great believer in this.

How did you begin your career in Market Research?

I started in the advertising industry, conducting both qualitative and quantitative research for campaign development, serving as the extended research arm of our clients then who did not have their own market research group in their respective companies. 

We provided inputs for strategic directions of advertising campaigns. The parlance for this eventually became “Account Planners”.

I graduated from the University of the Philippines with BS and Master of Statistics degrees. At this time, I endeavored to connect my learnings in Statistics to the outside world.  

When I started working, I ensured that when I talk about Statistics and results, the layman’s perspective is set in place for better appreciation and adoption by decision-makers and customers.  

I was trained by key research Executives of BBDO New York. This is where I learned the strategic use of market research in advertising and brand development. This included knowing how BBDO’s proprietary tools can help emerge a brand’s SWOT and key positioning learnings for strategic campaign development.  

Our creatives then couldn’t move without the inputs from research re the consumers and their mindsets. Even at that time (early 90s) when ‘’localization” was not yet a by-word, I recommended and helped localize the BBDO proprietary tools in the Philippines’ setting to ensure their relevant application in this market.  

My biggest mentor was Mr. C. Patrick Garner who was a Sergio Zyman close comrade. Zyman is touted as the Steve Jobs in the beverage or probably even the FMCG business. 

Mr. Pat Garner continuously drove the business questions and utilized market research to obtain leads and/or answers to those business questions.  My Coca-Cola stint helped me grow extensively and intensively in the use of market research for business decision-making.  

I got ingrained with Pat’s principle: Research that not only gives the ‘whats’ but also the ‘so whats’ and ‘now whats’. I’ve constantly endeavored to ensure that market research gives these. Otherwise, I feel that it’s shortchanging the users or customers with the power of market research in helping their brands and business grow.

What are some of you achievements, recognitions in the industry?

There’s not much market research awards provided in the country but have helped a Client win awards in the recently concluded Quill Awards because of the studies we’ve conducted for them.

We have success stories to share: A real estate companies sell their project developments in record-breaking time given the relevant recommendations on how to position their project and tweak or improve their offerings.

A utility company, understanding the drivers for satisfaction, which in turn led to development of programs that benefited consumers.

Fine-tuning a utility company’s positioning for an innovative product, which helped alleviate consumer pain points. In another real estate company, we provided inputs for the modernization and redevelopment of its flagship commercial center.

A telecommunications provider in the early-stage development of the broadband Internet market, not to mention the successful product launches in food and beverage industries.

What does it take to be a good Market Researcher?

A good market researcher should constantly be curious and want to learn the business and industry they’re working in. It needs to constantly ask ‘why’ and should be willing to challenge current and/or proven notions, relating these with market realities and environment. 

It should be bold in saying whether the product offering is good for launch, need to refine before launching OR not launch at all. Some market researchers are ‘nice’ in that they recommend launch of a product when the research says otherwise OR just base their recommendations from one metric when the other metrics are telling you something else.

From a client’s perspective, it is desirable for a Market Researcher to have a strong appreciation of any industry-market-company-brand to be able to design an appropriate consumer learning program that can identify key consumer insights that can be leveraged as part of the client’s business plans and marketing strategies.

How would you like to be described as a Market Researcher?

We are a husband-and-wife team and we would like to be described as The Market Researcher tandem, a sage business partner, a unique researcher with a synthesizing mind. 

What is your brand like, your core competence and why should marketers engage with you?

From a three-time client: Synergy is not only very reliable and trustworthy in undertaking different types of market research projects (qualitative or quantitative), but also effective and productive in proposing recommendations that have proven to be right on-target to deliver business results for 3 different clients in 3 different industries.

Other clients acknowledge Synergy is very innovative (unlike other agencies) and has the capability to customize research solutions according to a client’s research needs. In Germaine’s words, “the consumer is not a data point; no 2 consumers are alike.”

When clients engage Synergy, we assure them that we will immerse ourselves in their business and take on the CEO and brand person’s hats so that they will receive inputs, leads and learnings that they can use already for their short- to medium-term planning.

Would a product reach success without Market Research?

Yes, because there is always the element of luck in business, but this is no guarantee. Once competition starts to grow, though, it becomes very difficult to compete.

Some companies engage in market research only when their market shares start to dwindle.  This is instead of being able to defend their market position and continuously develop new avenues for increased volume and market share.  

From a three-time client:  In my own personal experience, I have learned that every time I attend an FGD or a consumer interview or a trade visit, there is always something new you can learn that you can adopt or adapt for your own business. Because wisdom, accummulated from knowledge plus experience, improves over time.

Other things you want to mention about Market Research

I have attended conferences both in the Asia Pacific region and in the US, and there are always talks about the need for market researchers “to up their game more than ever before.”  

Clients want to engage senior market research people who are able to share credibility in the boardroom, who can offer compelling recommendations on a client's business objectives.

This trend benefits the agencies that have a closer or more focused relationship with clients. 
I would like to say that we’ve been doing this for the past 16 years and have seen the benefits to the business of our clients.

IS YOUR BRAND SICK? CALL YOUR BRAND DOCTOR

With Robert Kuan, founder of Chow King and former Chairman of St. Luke's Medical Center
at Philippine Marketing Association BEST Conference.

by Roger Pe
May 23, 2016 issue
Philippine Business Mirror
Full page

On 111-117 Lancaster Road, Notting Hill, London, sits Museum of Brands, the biggest collection of products that ever existed in the world, names that made millions of consumers happy. They are catalogued and exhibited, but quite sadly, most of them have already faded out of our consciousness.

Inside the museum is a kaleidoscope of iconic labels, featuring over 12,000 original items from the unique collection of consumer historian Robert Opie, the guy who assembled them all forover half a century.

Here, you will discover how well loved brands evolved through creative use of packaging and advertising, and how consumers evolved with them. History of consumer culture is also revealed, decade-by-decade in a ‘time tunnel’, from the Victorian era to today’s digital age.

Your brand may someday find its way here, depending on how well you lovingly nourish it. How is it doing lately?

Is it up and about and doing brisk sales at the supermarket or barely making it? How is market acceptance? How often do you have brand reviews across a category landscape?

Is the product just merely answering a need or doing more compared to competition? What interesting added-value does it give to consumers?

What about awareness? Are you seen or even heard? Do you make noise or just go with flow?

Is it showing signs of brand fatigue? Are there signs on the wall and tell-tale indicators of slowing down? Before sales dip any further, get your acts together and immediately have a brand check-up. Go back to the basic. Review product formulation and packaging, including the way you market it. We know for sure, that you wouldn’t want it to go the way that Kodak and Nokia did.

Strong brands today and gone tomorrow, will your brand have that zest to last in the market?

Yesterday’s brands

Many moons ago, your lola would shop with a list of grocery items in her purse. She would hie off to the market with a dab of Cashmere Bouquet on her cheeks. A spray of Freyssinet and perfume bought from Botica Boie would complete her retinue.

She went to Divisoria every Saturday. On her list were: Purico (for frying and other “ginisa” cooking), Camay (for your sister’s facial beauty regimen), Lifebuoy (for your kuya’s after-basketball shower), Darigold (for young kids), Breeze (for your labandera), Pancho Pantera (chocomilk for the unruly kids) and, when she’s overly generous, Glo-Co Lipstick (for the maids).

Once upon a time, other Filipino brands also created rhubarb in Escolta, Rizal Avenue, Azcarraga, even as far as the Philippines’ farthest towns. Esco, Elpo, Ang Tibay Shoes, Chelsea, SigaSiga, Bataan Matamis cigarettes, Radiowealth, Avegon Transistor radios, Three Flowers, Trocadero, Hour-After-Hour, Halo Shampoo were among them.

But where are they now? All gone. They are probably also languishing in Museum of Brands.

We asked Willy Arcilla, one of Philippines’ marketing experts to share his nuggets of wisdom on brands’ staying power and continually changing mashup of brand marketing operations.

As a most sought-after speaker on marketing issues, interviewing Arcilla is like striking gold. He has established a pattern and solid track record in revitalizing old and dated brands and turning around troubled and bleeding companies.

And with over 30 years of experience in marketing and sales, advertising and media, corporate planning and general management, Arcilla’s insights are must-listen to.

Here’s our Q&A with the marketing guru:

Why do brands die?

WA: “From a corporate perspective, a brand dies because of mismanagement. From a layman’s point of view and consumer’s perspective, a brand dies simply because it has lost its customers to competition, direct or indirect.

It boils down to bad marketing and leadership, the most common reasons for brand demise.Marketing encompasses all the 4Ps (Product-Price-Place-Promotion), so failure to assemble a winning bundle of the various elements of the marketing mix can lead to a weakening of the brands.

Like plants and trees, brands need to grow. To nourish them, marketers should feed their brands with relentless innovation and compelling communication campaigns that convince consumers to prefer their brand against competition.

This is premised on a strong and enduring connection or relationship between the client and his consumers. The long-term success of any business rests on the long-term loyalty of its people, which translates to long-term brand loyalty by its customers.

Locally, Bank of Philippine Islands, San Miguel, Shoemart, Mercury Drug, Jack and Jill, C2 Ready-To-Drink Tea, are just a few local brands that have endured the test of time.

Obviously, Apple, Google, Microsoft, IBM, Facebook, Samsung, Toyota, Disney, McDonald’s and Coca-Cola are some of the most valuable global brands we have today. In addition, some brands have benefited immensely from universal and timeless advertising campaigns, like Singapore Airlines’ “Singapore Girl” (over 40 years), Mastercard“Priceless” and Absolute Vodka “Bottle” campaigns.

Can you tell if a brand is dying?

Arcilla says there are symptoms that one can see. “Despite all efforts at revival, you’re losing your sales revenue and market share in a secular downtrend,” he says.

What must marketers do to enjoy consumer preference?

WA: “First, continue to delight, satisfy even exceed the consumer’s needs and wants, tastes and preferences, likes and dislikes, values, attitudes and lifestyle, through your holistic brand experience. Next, capitalize on word-of-mouth marketing, both offline and online – so other consumers will learn more about the benefits of this brand versus competition. Digital word-of-mouth.

Is advertising a solution to dwindling market shares, 
why and why not?

WA: It is necessary but insufficient because the first step is to conduct a comprehensive and in-depth analysis of the market that will place a finger on the pulse of consumers. This will then guide the development of a Brand Positioning Statement which must be the Best Positioning Strategy – Important, Specific, Unique. Then the BPS must give rise to Product-Packaging, Pricing, Place, Promotions, etc.

Advertising is the only item in the Profit and Loss that possesses the potential to expand sales by a hundredfold. Advertising communicates the brand and the benefit, the reason-to-believe and even the call-to-action.

Why should a Brand be healed?

WA: Looking back at my corporate career with three Fortune 500 multinational companies and three top Philippine conglomerates across Asia-Pacific, and my consultancy projects, I realized that I was most effective and productive, happiest and most fulfilled from helping revitalize ailing brands and turning around troubled companies.

Healing is holistic and means making something whole again. It also honors my family of doctors (there are 9 medical and health professionals in our family) - my parents, siblings and their spouses. I didn’t pursue medicine because I couldn’t stand the sight of blood, but I relished the sight of bleeding and troubled companies and sick, ailing even dying brands that I can help make stronger and healthier.

I guess that I must have subconsciously imbibed the discipline of medicine after decades of listening in on the medical conferences that would transpire among family members at our dinner table.“Health is Wealth” so my mission is to heal brands because “Healthier Brands are Wealthier Brands”.

What are some of brands that you have helped revitalize?

WA: At P&G, I was blessed to receive first-hand education on turning around a struggling Safeguard to become the market leader and I was part of the team that helped arrest the decline and turn around Tide Bar, one of the leading detergent brands.

In Indonesia, I led the relaunch and regeneration of the entire brand portfolio that helped treble the sales revenue in 6 years. In Hong Kong and China, I helped rejuvenate San Miguel, which was an old and dated brand, as well as local brands like Guang’s Pineapple Beer and Blue Star, a local brand in Northern China.

With San Miguel in the Philippines, I helped revive consumer interest in the beer market with the campaign “Five Thirsty Na” which sought to promote the “Happy Hour” after work while traffic is at a standstill – even back then (which suggests that the campaign may be even more relevant in today’s carmageddon. 

I helped launch the phenomenally successful San Mig Light. Then when I joined RFM we also relaunched major brands like Fiesta Spaghetti, Selecta Moo and Sunkist, and I’m happy and grateful to see that Fiesta has grown to become the country’s undisputed market leader in pasta from a tiny number 5 back in 2000.

When I returned to China with Coca-Cola, I was able to help rejuvenate a struggling Sprite to eventually become the leading softdrink brand in the world’s largest consumer market, even ahead of Coca-Cola and Pepsi.

Then when I moved to URC, I helped resurrect a dead brand in C2 Ready-To-Drink Tea to become the leading RTD Tea brand in Vietnam and even surpass the sales revenues of C2 in the home country, the Philippines.

What makes you unique as marketing professional?

WA: Aside from my unique family background and my zeal for healing brands to make them stronger. My educational background: a mix of La Sallian and liberal education at the UP.

I hold a college degree in BS Business Administration, Major in Marketing from the UP Diliman, but I also earned, by virtue of a scholarship, a Masters of Science degree in Industrial Economics from the CRC, the economic think-tank of the University Of Asia and the Pacific.

This allowed me to form a world-view that can focus on an individual tree without losing sight of the entire forest, so I can appreciate the importance of macroeconomics for the world, the region and the country, as well as its influence on the microeconomics of the individual firm.

My experience with top 500 multinational companies, as well as Philippine conglomerates helped me strike a good balance between the values of western individualism with eastern collectivism.

My regional experience across Greater China (China, Hong Kong, Taiwan) and the ASEAN countries expanded my horizons and strengthened my understanding of various cultures and markets to identify and capitalize on similarities as well as recognize and respect differences.

All these helped me learn to strike the perfect balance between managing the pressures of the short-term like sales volume and revenue, profitability and cash flow with the potentials of the long-term like building brands, growing market share and even expanding market size.

The most important job of a CEO today is to exercise inspiring leadership to motivate his people and synergize the entire organization to become a real source of competitive advantage by being marketing-driven and customer-focused so consumers prefer our brands over competition. 

This is why I advocate the concept of Marketing Leadership because Marketing is what anyone must do, while Leadership is what anyone must have.

Have you written any books?

I have written two books on my two advocacies – Marketing and Leadership. I believe that Marketing is what anyone must do, while Leadership is what anyone must have.

The first is called “Marketing and Advertising with a Conscience” with a foreword from His Eminence Gaudencio Cardinal Rosales, where I argued that since “no one can serve two masters (Mt 6:25), then use mammon to serve God.”

The second is “Leadership is Discipleship”, where I suggest that “we don’t need better leaders, but better followers”, judging from the current state of global affairs despite all the billions or trillions of dollars spent on leadership development in private and public sectors, in schools and the workplace. In addition to these, I have been a regular contributor to leading dailies and trade publications.

As Speaker in PMA BEST Conference with PMA President Henry Tenedero and Director Elton Tan.

What can you offer the business sector and marketing practitioners?

I offer a unique workshop that is a 2-in-1 training-cum-consultancy called “The Marketing Clinic: One Day with the Brand Healer”. It combines several modules of classroom lectures followed by live consultancy sessions where we provide real answers to real questions; real solutions to real problems.

This is faithful to the original definition of a clinic, which meant to teach doctors at a patient’s bedside, and this is why it is very effective as a training and development program.

It is not only for marketing practitioners but indeed for the entire organization because as Peter Drucker said, “The purpose of any business is not to make a profit but to create a customer.” So in fact, we are all in Marketing.

AS PHILIPPINE TOURISM BOOMS, HILTON RETURNS

by Roger Pe

May 26, 2016 issue
Philippine Business Mirror
Full page centerspread

Palawan. Voted by Conde Nast Magazine as World's Best Island for two consecutive times (2015-2016).

For decades, the country’s tourist arrival figure has been languishing in the single-digit figure. But on December 21, 2015, the day signaled the dawn of a new era in Philippine tourism. Gabby Grantham, a Fil-Am and much-awaited passenger of Philippine Airlines flight PR103 became the country’s 5 millionth visitor.

Department of Tourism and Ninoy Aquino International Airport officials warmly welcomed Grantham for helping the country finally breach the 5-million mark. When the year was over, the number even soared to 5,360,682.

The economic impact of that 2015 figure was worth P227.62 billion in earnings, or an increase of 5.94 percent from 2014. Significantly, it was the brightest year in Philippine tourism’s history, thanks to DOT Secretary Ramon Jimenez and his tireless team. 

While it looked good on paper, it was not enough to put the country on Asia’s Top 10 most visited countries list. In its latest report, the United Nations World Tourism Organization ranked China as No.1 followed by Hongkong, Malaysia, Thailand, Singapore, Macau, South Korea, Japan, Taiwan and Indonesia in that order.

As for Southeast Asia’s six major economies, Malaysia is topnotcher with 27.4 million visitors annually. Thailand is second with 24.8m, Singapore, third with 15m, Indonesia, fourth with 9m and Vietnam, fifth with 7.9m. The Philippines is sixth with 5.3m while the second tier countries Cambodia, Laos and Myanmar are close by with 4.4m, 4m and 3m, respectively. 

France, United States, Spain, China and Italy are the Top 5 countries with the most number of tourists annually. Interestingly, inspite of recent terror bombings in Paris, France maintained its number one spot in the rankings.

The turtle-slow rise of our tourism growth over the last 20 years is mind-boggling considering that we have much to offer than most Asian countries, and even as one of our 7,500 (as of the latest count) islands was voted by travel bible Conde Nast as the “World’s Best Island” twice in a row.

The big gap between Malaysia and ours is staggering. Hopefully, that will change in due time, and with more vigorous push from various sectors of the hospitality industry, it just might leapfrog to new heights in the next few years.

The main culprit is infrastructure, says Sammie Lim, Philippine Chamber of Commerce Vice President for Tourism says. “The next two administrations should focus on serious answers to enable the Philippines to accommodate 20 million tourists in the next decade,” he stresses. 

He urges Philippine tourist officials to talk long-tem and build an airport with capacity to handle over 20 million tourists. “It can be done, it is all a mindset,” he says.

Constructed in 1978, Ninoy Aquino International Airport was originally designed to handle 4.5 million passengers only per year. It already reached its maximum capacity 20 years ago. 

Observers say, cosmetic and short-term solutions cannot do it if the country wants to be more competitive - at least on the regional level where 8 of the world’s 10 best airports are located. Presently, the airport cannot handle more than 5 million passengers a year because its existing facilities are already operating at maximum capacity.

Two years ago, San Miguel Corporation offered to build an entirely new and modern international airport terminal that will pole vault the Philippines to the future and stand shoulder-to-shoulder with the rest of the world. The plan included four runways capable of handling 150 million passengers annually and can efficiently handle 250 take-offs and landings per hour.

NAIA’s two existing runways can handle only 42 take-offs and landings per hour and both are being used by domestic and international airlines. (Note: Airport handling capacity is different from tourist arrival figures).

Worsening congestion in NAIA is making SMC revive its world-class airport proposal to the incoming Duterte government. Ramon Ang, president of SMC, said that when finished, cost of the airport would be much less than the estimated $10 billion. Ang hinted of a possible alliance with the Philippines’ biggest conglomerates that would include those of Manny Pangilinan, Henry Sy and Jaime Zobel de Ayala. It will be located in a 1,600 hectare reclaimed area in Manila Bay.

Earlier this year, the Research and Statistics Division of DOT reported that tourist arrivals for February 2016 reached 549,725 compared to 456,524 arrivals in February of 2015, a double-digit growth of 20.42%. 

In just two months, the Philippines hit a record-breaking 1,091,983-tourist arrival figure, a strong performance due to aggressive marketing blitz spiced up with international events that were held in the country in the preceding months. These triggered awareness increase and visitor influx. 

544,948 visitors entered the country through various airports and Ninoy Aquino International Airport, the country’s primary gateway, welcomed 66.37% of the total visitor volume. The top spending market again was Korea, followed by USA, China, Japan and Australia.

Hotel opening frenzy

Two major hotel brands spread their wings and set foot on Bonifacio Global City over the last two years. Grand Hyatt and Shangrila added branding muscle to their already strong presence by showcasing their trademark hospitality. 

Earlier, Hyatt’s City of Dreams, Nobu Hotel, Marriott Newport City, Novotel and Mercure Ortigas ignited the opening surge. Hotel rooms in Metro Manila will reach a 26-year high and growth for the country’s hotel industry is expected to rise in the next five years. 

With that, hopes are high that the Philippines can easily surpass its 6 million-target by the end of this year. But the big question is, can it achieve its 10-million tourist arrival-goal within the next two years? It is mathematically possible if our airport handling capacity can do it. 

Harald Feurstein, General Manager, Hotel Conrad Manila

According to real estate consultancy firm, Pinnacle: “Even with a slight dip, we are doing much better than most countries in Southeast Asia, where occupancy drops ranged from 2.1 percentage points to as high as 8.6. Only Thailand and Vietnam bucked the trend with a slight increase in occupancy,” Pinnacle says.

Another leading real estate company, Colliers foresees that “established branded hotel chains will come in to take over old, locally managed resorts that are in excellent locations but are past their prime. Boutique and lifestyle hotels in tourism areas will be the trend in hotel development over the years to come,” it says. 

The Philippines is one of Asia’s most active countries in hotel opening scene. It is set to dazzle anew with the launching of Conrad Manila, the global luxury brand of Hilton Worldwide in June this year. 

The luxurious 347-hotel aims to inspire seasoned travelers and the local market by redefining the status quo and upgrade their impeccable taste to a new dimension.

With Conrad Manila’s entry, rooms are expected to exceed the country’s current 30,500 total in the next two years. Approximately, 3,300 new hotel rooms were completed in Metro Manila from 2014 to 2016.

A physically handsome hotel, Conrad Manila will offer best in class service and amenities. To date, it has already exemplified excellence prior to the grand opening, winning the Philippines Property Award as Best Hotel Development, Best Hotel in Architectural Design and Best Hotel Interior Design.

Picture this: The whole shape is iconic, derived from a ship that has permanently docked in Manila Bay waters. Inside is a unique blend of modern art and Filipino artistry, inspired by air and sea wave elements across the bay. In one of its breathtaking lounges, the design allows you to experience an infinite ringside view of Manila’s jaw-dropping sunset, better than what you have probably previously experienced. 

On a Friday and Saturday, a stay at the hotel becomes a multiple treat. As soon as dusk settles, fireworks joyfully welcome your distinguished presence. Here, like everyone else, your stay is celebrated for being an honored guest.

Hotel Conrad Manila. Winner of Philippines' Best Hotel Development, Best in Architectural Design
 and Best in Interior Design Awards.

“The Conrad way is luxuriously excellent, physically and experientially. We aspire to inspire so that we exceed expectations. We anticipate and we have things ready for you even before you ask,” says Harald Feurstein, newly-appointed General Manager of Conrad Manila.

An Austrian with excellent credentials like the hotel, Feurstein has worked with the best hotels in Asia and was Conrad Manila’s first employee from ground zero till the beautiful structure surfaced behind the SMX Convention Center. 

“I consider it a badge of honor being part of Conrad Manila’s history from Day One,” Feurstein takes pride in saying. He is upbeat about Manila’s tourism prospects and acknowledges that the Philippines has a bright future ahead, even brighter than the rest of the former Southeast Asian dragons which have lorded the scene in the last 15 years. “With consistent above-average 6% growth, the Philippines is poised to shine even more,” he says.

Hotel Conrad Manila's Third Floor Lobby

How will the hotel market its way in reaching its core market? Feurstein says, “Diversification will be the key.”

“Hotels are not just for tourism anymore. We do not want to rely on a single market alone. We would like to be known as the most innovative among luxury hotel brands in the Philippines. We want to promote domestic leisure, “staycation” and show the unique Conrad way of excellence with our MICE (Meetings, Incentives, Conferences and Exhibitions/Events) capabilities,” he stresses.

Destination concept 

“Conrad Manila is for the new generation of smart luxury travelers for whom life, business and pleasure seamlessly intersect,” according to Feurstein. As a global luxury brand with 23 properties across five continents, Conrad connects guests to people and places around the corner or halfway around the world. 

Feurstein will be responsible for the growth of the brand in the country. “It is a privilege for us to re-introduce Hilton Worldwide through the first Conrad hotel in the Philippines, especially in these exciting times as the country is on the brink of rapid economic growth across all sectors,” says Feurstein, who reports to Peter Webster, Hilton Worldwide’s regional general manager for Singapore, Indonesia and Philippines. 

Hotel Conrad Manila's C-Lounge

“I am certain that the hotel will be a significant addition to Manila’s dynamic cityscape. With Harald’s 25-year industry expertise and deep knowledge in hotel operations, I am confident that Conrad Manila is primed for great success in this growing Philippines tourism market. It will be an landmark where one-of-a-kind, inspired experiences will be created for guests,” Webster says.

Born and educated in Austria, Feurstein already planned to work in a hotel when he was young. “It was my goal and I had no doubts about pursuing it as a career,” he says. After graduating from college, he worked as a nightclub waiter and bartender. He then worked his way up, moving to Switzerland, his first job outside of his home country.

Hotel Conrad Manila's China Blue Restaurant featuring Celebrity Chef Jerome Leung

He spent the rest of his professional life in Asia, and considered each country his home. “All of them has a place in my heart, every place is special,” he intimates.

Feurstein has been actively participating in the development oversight of Conrad Manila since last year. His involvement took him across all facets of hotel management, from planning a good strategy to positioning the hotel as a choice destination for luxury travelers with one aim - give the Philippines a strong competitive advantage in the international hospitality landscape.

Prior to his assignment in Manila, Feurstein was GM of Hilton Pattaya, Conrad Bangkok, Hilton Cebu Resort and Spa, Hilton Kuching and Hilton Batang and Director of Business Development for Hilton Beijing, Hilton Seoul, Hilton Kuching and Petaling Jaya.

He was former Food and Beverage Manager of Hilton Petaling Jaya, Hilton Kuching, Hilton Batang, Norfolk Hotel and F&B Director of Hyatt Regency Kinabalu and Grand Hyatt Fukuoka. His hospitality career has taken him across the world to continents such as Europe, Africa and Asia. His past experiences in Asia have taken him to China, Korea, Malaysia, Japan, Vietnam and now the Philippines.

Hotel Conrad Manila's Diplomatic Suite.

A man who describes himself as very adaptable to different cultures, Feurstein loves to do a balancing act. “I love to make people to do their best and I am always deeply supportive in developing their career,” Feurstein says. 

The tall, bespectacled man loves to lead by example. When people see it in their leader, they inevitably try to do it,” he says. He is very demanding at work because he says he has a purpose. “I’d like to be in a team surrounded by people with a sense of purpose, because I have a set of goals that I started and want to finish them. I’d like to steer a ship and allow people to do what they’re good at,” he adds.

Outside of work, Feurstein is also a man of action with a lot of passion for extreme sports like participating in lung-busting ultramarathons. He has participated in many events of this kind in the Philippines. He has also endeared himself to the Philippines and its people and pays homage to the Filipino whom he says are naturally hospitable. “Hospitally is naturally ingrained in the Filipino. When you are naturally hospitable, half the battle is won,” he says. 

Luxurious amenities

“We don’t just check you in and check you out, Feurstein says. “We give you the total package,” he punctuates.

Conrad Manila has a 24-hour Fitness Center, a sparkling outdoor infinity pool, tranquil Conrad Spa and an Executive Lounge for guests staying in an Executive Room or suite. 

Hotel Conrad Manila's Welcome Lobby.

The hotel’s intelligent rooms are equipped with motion sensors that recognize a guest’s arrival, equipped with wired and Wi-Fi Internet access, bluetooth-enabled entertainment technology, 42-inch flat screen HDTV, espresso machines and hydrotherapy rain showers, with magic mirrors in the bathrooms available in all suites for an uninterrupted entertainment experience. 

Suites and executive rooms offer picturesque bay or city views, plus access to the Executive Lounge. The luxurious Presidential Suite features a spacious outdoor terrace, a private pool and stunning Manila Bay views.

Brasserie on 3 is the all-day dining restaurant serving an extensive buffet selection at breakfast, and an a la carte menu for lunch and dinner. China Blue by Jereme Leung offers a modern Chinese dining experience, with a specially created menu that blends contemporary cooking techniques with local flair. 

One can enjoy afternoon tea at C Lounge, which transforms from a laid-back lounge at daytime to a sophisticated destination bar after the sunset. You can sip cocktails as you soak up the sunshine in the Pool Bar.

Hotel Conrad Manila's Brasserie

For 96 years, Hilton Worldwide has been dedicated to continuing its tradition of providing exceptional guest experiences. The company's portfolio of twelve world-class global brands is comprised of more than 4,500 managed, franchised, owned and leased hotels and timeshare properties.

It has more than 745,000 rooms in 97 countries and territories, including Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio – A Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton and Hilton Grand Vacations.

More hotel brands, more visitors

Real estate watchers say, more brands are due to enter Manila until the end of 2017. To reach its goals, the Philippines must act on important issues in order to be a major player in Asian travel industry. One of them is Ninoy Aquino International Airport, which has been constantly figuring in the world's worst airport surveys. 

Guillermo Luz, co-chairman of National Competitive Council of the Philippines says, “Overall, NAIA delivers a less than satisfactory travel or customer experience for the passenger. This is only highlighted when compared to the facilities and services of other international airports located right in the region such as in Singapore, Hongkong, Bangkok, and Kuala Lumpur.”

Hotel Conrad Manila's Forbes' Ballroom

Luz said, “We need to create better first impression for visitors. We need more passenger capacity within our overall airport system if we want to increase the number of international visitors and domestic tourists.”

He reiterated that our main airport should play a role in projecting our national brand. “The customer experience at the airport should be aligned with our international reputation for our warm hospitality. It should also be a venue for projecting our culture visibly and through the service which passengers experience,” he said.

Major infrastructure, peace and order and foreign visitor safety issues should be better addressed. Until these are not given priority and acted upon, observers say our achievement will plateau and growth will be disappointingly low. 

Hotel Conrad Manila's Executive Suite