The Economics and Marketing of #AlDub Phenomenon

By: Jean Paolo G. Lacap

The whole archipelago is going crazy over AlDub loveteam! No one can deny the popularity of these two “young bloods” in the Philippine showbiz industry and this is all because of Kalyeserye of Eat Bulaga.

Let’s see what we can learn from this #AlDub phenomenon.

From the academic standpoint, there are several economic and marketing concepts that we can learn from this loveteam and from Eat Bulaga’s Kalyeserye as well.

A screenshot from one of the episodes of EB's Kalyeserye

 Utility and Innovation

Utility in economics means satisfaction or happiness. When a commodity provides better utility as compared with other products, then consumers would likely buy the product. Changing the ballgame of noontime TV shows by giving the viewers a new, novel format like Kalyeserye offers better utility as compared with the existing shows. Analyzing the noontime shows in the Philippine TV landscape, no one ever thought of doing a “soap opera” where the setting is the streets of the metro and dubsmash is the mode of conversation. The intelligent use or attack to twist a typical “soap opera” into something very different and creative is I think the secret ingredient of the success of #AlDub phenomenon. This is a form of innovation in the noontime TV habit. As what most business gurus say, the first to innovate usually wins the game!

Diminishing Marginal Utility

The law of diminishing marginal utility states that, as you consume more and more of the same commodity, your satisfaction declines from consuming additional unit of the said product. Same in noontime shows, what is expected from these programs are game-like segments where everyone can participate. The problem with the traditional format of TV show is, it diminishes the satisfaction of the viewers. To avoid this, creativity must come in. The concept of Kalyeserye of Eat Bulaga is definitely an approach to confront the problem of viewers’ diminishing marginal utility among noontime shows.

Product Life Cycle

One of the important concepts in marketing is the product life cycle (PLC). It has four phases: introduction, growth, maturity, and decline. Kalyeserye where Yaya Dub (Maine Mendoza) and Alden Richards are the main cast, just started in July 16, 2015 episode. That episode triggered the #AlDub phenomenon. Basically, Kalyeserye is relatively new. In the product life cycle, building the brand (in the introductory phase of the PLC) is being established to gain awareness from the consumers, in the case of the Kalyeserye, the viewers. Promotional strategies are being done to communicate the brand to the viewers. Is Eat Bulaga successful? Defintely yes! The hashtag AlDub is all over the social media platforms and it supported by real-time updates on Eat Bulaga’s social media accounts. These strategies contributed a lot in the popularity of #AlDub. From this, we can learn that, effective management of the brand, particularly the right strategies for the specific phase of the PLC, will translate into positive outcomes.

Brand Ambassadors

Right personalities for the right brand will give profitability to the company. In the field of marketing, it is really hard to identify the right people who will represent the brand. It takes a lot of time and effort (and sometimes luck!) to find the right brand ambassadors. Maine “Yaya Dub” Mendoza is considered as the “queen of dubsmash” because of her excellent way of “dubsmashing” famous lines of well-known personalities. On one hand, Alden Richards is getting his popularity from the That’s My Bae segment of Eat Bulaga. No one expected that the 2 will be a good loveteam. Filipino viewers are generally fond of love teams (e.g. JaDine, KathNiel) and no doubt AlDub is a tremendous hit. The chemistry of Yaya Dub and Alden is indeed a spot on! They really represent the “brand” that most Filipinos love – the “Cinderella story” or “rags to riches” love story. Furthermore, the segment shows Pinoy values (words from Lola Nidora – Wally Bayola) and humor (characters of Frankie/Tinidora – Jose Manalo, Duhris – Wally, and Tidora – Paolo Ballesteros) that are ingredients for a success of a TV show.

Brand Image and Emotional Connection

A typically buyer is confronted with 2 things when purchasing something: logic and emotion. For instance a 50% off to a price tag may trigger purchase from the buyer, that is the logic part. On the other hand, when you form an emotional connection or attachment toward a brand, for instance you buy products from Brand X because the brand support women empowerment and equality – that is the emotion part of purchase behavior. So if a product is boring, whether the price tag is 80% off, it will not trigger any consumption. In order for a product to activate purchase from the consumers, logic and emotion must be the primary components of a brand image. In AlDub phenomenon, the brand image of the show and of the characters of Kalyeserye project logic and emotion. Those who failed to watch Eat Bulaga can access the episode via Eat Bulaga’s social media. And at the same time, the characters are familiar faces to most Pinoys – logic part. Moreover, the characters form emotional connections to the viewers. Filipinos can easily relate to the show. Viewers are motivated to continuously follow the story simply because of the excitement of “what will happen next?” “Will they meet personally?” – that’s the emotional factor. In short, it is hard to “sell” something to the viewers if you will only provide logic. Logic + emotional connection must go hand in hand, particularly to a TV show, to attract more viewers!

Viral Marketing

Viral marketing entails creating buzzes online and/or offline mode. In order to have a successful viral marketing campaign, the message should be clear enough in order for individuals to exponentially pass the message to others. What is good about viral marketing is, in most cases it is inexpensive. The hashtag AlDub (#AlDub) created and still creating buzzes in the social media. Are all viral marketing campaigns successful? No. Only those “brands” that trigger logic and emotion can be successful. Only those brands that are “worth sharing” benefit from viral marketing. Timing is also important. Online viral marketing campaign must be real-time. People want new things, updates, and so on. On one hand, offline viral marketing is another factor. When the brand becomes the “talk of the town” then the campaign becomes successful. In August 29, 2015, Alden Richards had a mall show at Marquee Mall in Angeles City. That show created a whopping 3.5 million tweets! The right mix of factors may contribute a lot on online and offline viral marketing campaigns and may prompt engagement from the buyers, thus will translate into brand success!

The #AlDub phenomenon is indeed changing the landscape of TV shows. What is good about it is, we can easily identify with the show. We like love stories. We love humor. We want connections with the characters. We get excited with the “kilig” moments! Eat Bulaga’s Kalyeserye is indeed a stressbuster! It is more than a show segment! It teaches us about life and at the same time, it imparts important topics on Economics and Marketing! I am pretty sure you are an avid fan of  AlDub! Don’t worry, I will admit, I also follow their story everyday!

Just enjoy watching Kalyeserye and at the same time, enjoy learning!

21st Century HR Managers, Practitioners, and Staff

 By: Jean Paolo G. Lacap

With the increasing complexity in the realm of people management, business organizations are continuously seeking for unique ways to handle human resource (HR) challenges and dilemmas. The vast changes happening in the business landscape requires human resource department (HRD) to be the strategic partner of the every knowledge worker, the new term for employee.

          Gone are the days when HRD is treated as one of the many departments of the organization handling employees’ attendance, 201 files, health insurance, and the like. During the “Jurassic” era of human resource management, people management is termed as personnel management where its function is limited to employee’s HR documents. As I mentioned, the convolution and revolution in the field of people management necessitates new ways of maximizing the potentials of each knowledge worker in the organization. Today, it is not enough that HRD people are doing HR documents. They should go beyond the traditional HR management tools, techniques, and practices.

 

Source: http://www.agreatplacetobe.co.uk/blog/five-building-blocks-for-a-successful-startup/

          So what are expected to 21^st century HR managers, practitioners, and staff? There are numerous expectations from 21^st century HR managers, practitioners, and staff but the following should be given much attention or value:

·         Twenty first century HR managers, practitioners, and staff are expected to be the strategic partners of the knowledge workers. Being the strategic partner of the workforce entails cultivations of the knowledge, skills, and abilities of the people. HR people must learn to handle the needs of the workforce while meeting the goals of the organization. 

·         Human Resource (HR) people should bring positive changes in the careers of the workforce. Enough of the typically drama of impressing the boss or owner of the organization! The dynamism of the people management arena entails HR people to be proactive partner of the knowledge workers. 

·         HR people should be equipped with various ways and means or strategies in capitalizing the potentials of the organizational workforce. A one day seminar or an overnight teambuilding does not bring tremendous effect on the lives of the people. HR people must realize that motivating people must be sustainable in nature and will bring huge impact not only on the lives of people but also to the organization. And you can only be sustainable if HR people have a clear and sustainable HR Career Plan for its workforce.

·         Learn to identify the best people from the bad then capitalize on them. Whether the organization is classified as private or public, whether manufacturing or service, never let the best go out of the organization. It is easier to find average or not so good people but is hard to catch the best one!

·         Financial reward in many cases doesn’t work; good treatment does! Monetary reward is good but an encouraging and motivating environment is better. Money reward may bring short-term happiness but an excellent and positive culture brings out the best among people and its impact is long-term.

·         Issues of the people should be handled with outmost respect and confidentiality. HR people are expected to be esteemed individuals, thus they must act accordingly. As professionals, everyone should be treated with equity and justice.

·         Don’t gossip. Gossiping is the deadliest of all “organizational sins!” It destroys people and shrinks organizational commitment in the long run. It drives out excellent individuals and discourages productivity among knowledge workers.

At the end of the day, the most important thing for the 21^st century managers, professionals, and staff is to treat people with outmost respect and give what is due to them. As Ken Robinson mentioned, “Human resources are like natural resources; they're often buried deep. You have to go looking for them, they're not just lying around on the surface. You have to create the circumstances where they show themselves.” Cultivate your people as they sail to achieve their personal successes and sustainably contribute to the growth of the organization.

         

On Financial Literacy

By: Jean Paolo G. Lacap

At long last, I, together with my Junior Managers and Entrepreneurs’ Society of the Philippines (JMESP) students and the CBA Honor Society (HONSOC) officers, were able to push through the first ever Financial Literacy Seminar specifically on topics on Mutual Funds and Stock Market last January 21, 2015 at Angeles University Foundation. Through a good friend from UP, I was able to invite two great young “financial souls” – Sir Floi Wycoco and Sir JB Noynay, both Filipino financial literacy advocates.

          The literacy rate in the Philippines is very high as compared to other countries  but when it comes to financial literacy, I guess we are quite backwards. Here’s my post analysis from Sir Floi’s and Sir JB’s financial literacy presentations.

Sir Floi's Presentation on Mutual Funds

On Education and Saving

In a typical Filipino family, education is considered an important asset. Filipinos generally believe that education is the primary key to unlock the family from social ills such as poverty. They believe that having a good education makes anyone affluent, and I generally agree with that idea! What is sad about the Filipino mentality with regard to education is, they see education as a vehicle to become an employee to earn a living instead of looking it in a much bigger view.

One of the most neglected topics among Filipinos, young and old, is financial awareness particularly on saving and investing. Most of us, if we have spare cash, we either use them to buy things we want and/or sometimes save them, typically in a bank. We see banks as institutions in which it can safeguard our hard-earned money. We typically see saving in a bank as a better way to secure the future. We often give less consideration in investing our money in other ways such as in mutual funds or in the stock market. Thus, we often forget the possible impact of inflation on our saved money. For example, if you save Php100,000 in a bank, and let say the interest on saving is 1% (which is the normal rate) per annum, your money after 1 year will be Php101,000 (Php100,000 x 1.01). Let’s assume the inflation rate today, roughly 4.5%. By simply looking the figures, the inflation rate is bigger that the interest on saving which means, after a year, you are losing 3.5% (4.5% - 1%) or Php3,500 of the value of your money! Thus, in order for us to offset the negative impact of inflation, saving should be translated to investment or simply S = I (saving equals investment), a basic concept in economics.

Facts and Figures

Let’s get some facts first. Based on the data presented by Mr. Floi Wycoco in the Financial Literacy Seminar held last January 21, 2015, only 20% of the Filipinos have savings account. Only 234,854 retail and institutional accounts invest in mutual funds. And only 221,927 retail and institutional accounts invest in Unit Investment Trust Fund (UITF). These figures reflect the low level of involvement of Filipinos in investing. Comparing to other neighboring Asian countries, our country has low level of participation in investing activities.

What would be the possible reasons why Filipinos are afraid to invest, whether in mutual funds and/or stock market? One reason is basically taking risk. Filipinos generally believe that investing their money in mutual funds and/or stock market is too risky. Another is, they believe that investing is only for financial geniuses! They see mutual funds or stock market as something that is alienating, something that utilizes jargons that are unimaginable! And the last is the fact the most Filipinos wants instant return that’s why some fall into traps of illegal multi-level marketing / pyramiding scams! These illegal “investment” activities typically offer inconceivable return or quick cash in a lesser span of time! And what is the solution to all these problems and reasons? FINANCIAL LITERACY!

Sir JB and Sir Floi during the Seminar's Open Forum

Advocacy on Financial Literacy

Today is the right time for every Filipino to attain financial freedom through financial literacy advocacies. I am very glad that there are Filipino groups such as The Global Filipino Investors (TGFI) that promote financial literacy among Filipino families here and abroad and among Filipino students and youth. It is also the right time to support this kind of advocacies. As what Sir Floi said “Financial education is what we need to become a better nation.” This is also a challenge on my part as a business educator of this country. I need to take part of this call.

While writing this article, I realized that one of the things that business educators tend to forget, how to teach business students to be financially equipped through actual/practical applications of financial concepts like mutual funds and stock market participation. It is quite sad that our exposure to these investment concepts is quite less as compared with other countries abroad. But definitely, I still believe that it is not yet late to support and advocate financial literacy. This is one of the keys to help our economy flourish. As what Sir JB said in his presentation, "When you invest in stocks, you are investing in the Philippines. You are contributing to the economy of the country.” Start opening our doors to financial literacy and have an open mind to investing either in mutual funds or stock market. Start learning! Attend legit financial literacy seminars! Let’s make this country a better nation, one step at a time!

L-R: Nicole Demerin (JMESP President), Me (JMESP Adviser), Sir JB, Sir Floi, Dr. Anne Tungcab (CBA HONSOC Adviser), Darriel Mendoza (CBA HONSOC President)

Traits of an Effective Boss

By: Jean Paolo G. Lacap

I am so fortunate that I always get in touch with my college friends despite our busy schedules because of differences in work time. I am happy that after we all finished our individual college degrees in 2006, we are all successful (I guess!).

Every time we set a coffee or dinner date, one topic is always present, and that is our bosses/supervisors and how we individually handle the people under our department. I get to learn the different leadership styles and management models that an effective boss/supervisor should exhibit in the workplace. Belonging to diverse industries – some in the corporate world, some in the government, and some in the academe, we get to realize the diversity also in terms of how people should be treated and handled in the workplace.

 

This figure was taken from http://www.theguardian.com/higher-education-network/2013/jan/31/university-leader-career-progression-training

In this article I would enumerate the traits of an effective boss based on the collated perspectives of my friends in various industries.

1.    An effective boss knows how to empower people. It is important that from the onset that people in the organization are empowered. It is true that people or human resources are the most vital assets of any organization because without them the operation of the business will be paralyzed. An effective boss must learn how to empower people by trusting and entrusting them with decision necessary for their growth and maturity. Positive reinforcement is an effective tool to gain the trust and confidence of the people. The classical notion of negative reinforcement and too much authoritarian rule in terms of handling manpower may lead to demoralized human resources in which in the long-run may result to departure of great talents to other organizations.

2.    An effective boss knows how to handle petty issues. Issues in the organizations are common, whether big or small. Big issues typically affect the operation of one segment of the organization, and in worst cases, can destroy a major part of the enterprise. One of the traits that a boss should possess is to handle issues very well even if they are minute problems. It is necessary that when an issue arises, the boss must talk it over if it will affect the organization. But there are some issues that have nothing to do with other people thus in this case, the boss must call the attention of the identified talent and talk things over. Instead of putting a meeting on and indirectly talking the issues over where everyone is present, it is much better if these issues will be tackled and settled in much nicer way, closed door, informal discussion with the only people involved. People become anxious and disheartened every time negative things are being brought up in a meeting without prior idea at all of the matter at hand.

3.    An effective boss values the best talents in organization. The reason behind successful organizations is successful talents. In the era of globalization, compensation becomes less of a factor when productive workers are being appreciated and recognized. Keeping these best talents is a hard task. There will be instances where other companies will deal better offers. But this can be avoided if the boss will allow these people express their outstanding skill/knowledge on their respective scope of work in the organization. At the end of the day, what the company wants is to have the best talents that will contribute a lot in the performance of the enterprise.

4.    An effective boss doesn’t meddle on personal issues of his/her people. Issues in the organization have nothing to do with the personal lives of the people. As a boss, he/she needs to learn to separate these two angles. Issues in the workplace should be settled inside the office. The personal life of an employee, as long as it doesn’t not interrupt his/her workplace performance, should never be a factor in handling him/her. Remember, there is more to life outside the four walls of the organization. As a boss, he/she should recognize this in order to avoid conflicts, miscommunications, and workplace clashes.

5.    An effective boss recognizes the best in his/her people. Recognizing the best efforts of the people is the most rewarding aspect of any employee. A simple tap on the shoulder, a simple congratulatory note, or a simple text message or email of thanks means a lot to any worker. Of course monetary or other forms of tangible rewards are really rewarding but sometimes a simple but sincere gesture of kindness matters a lot.

6.    An effective boss molds his/her people to be the best they can become. An effective boss should also be an effective teacher. Like a teacher, he/she teaches his/her people the essential things needed in the attainment of the organizational goals. He/she selfless in shaping his/her people to be the best they can become. Molding and challenging people to become the best are crucial matters. Only those bosses who value people usually have this characteristic. In most cases, the finest way to bring out the best out the people is to share with them the indispensable skills/knowledge needed from them to grow and mature and this can be done through delegation anchored with right treatment in handling them. There is also a thin line between delegation and over delegation. Over delegation leads to work strain which can lead to further complications.

7.    An effective boss knows how to walk the talk. “Practice what you preach” may sound a cliché but this is necessary to effectively manage people. An effective boss shows through his/her actions all the things he/she “preaches” to his/her employees. It is through this that he/she shows true leadership in leading his/her “flock.”  

8.    An effective boss knows that there is no one best way of handling people. An effective boss recognizes diversity in handling people in different situations. As supported by different academic researches, there is no one best way to handle people. In the era of globalization, diverse workforce requires various leadership and management models that will work effectively with people. Each employee is unique thus an effective boss must recognize this matter in order to come up with different ways to handle this diversity.

In the final analysis, the role of a boss in the organization is massive. In can make or break the enterprise. Certainly, there are more traits that an effective boss should possess but as of the moment, the eight (8) identified characteristics are so far the top of our lists. Just always remember, when the boss is effective, there is high probability that his/her people are productive.