Embracing Change Healthy respect for corporate transformation by Susanna Tai Growing interest in health-care supplements has opened new doors for a long-established company It is never easy for a company with a well-established brand name to restructure its business and introduce new management techniques. If sales are still strong, the first thought may well be that it makes little sense to change tried and tested methods and disrupt a winning team. In the health-care sector, however, hoping to maintain the status quo is not really an option. As awareness grows about the importance of healthy lifestyles, so does the competition for business, and the only way to stay ahead is by innovating and upgrading. Cerebos (Hong Kong) Ltd is probably best known for its health supplement, sold under the name BRAND'S Essence of Chicken. The product has been around since 1835, but the company's current marketing strategies are built firmly around diversification, maintaining a contemporary corporate image, and catering to new consumer tastes and preferences. Achieving consistently good results is a matter of recognising when changes are needed "The aim of any changes we make is to help the company thrive in a competitive and fast-changing business environment," says CEO Andy Feng. The results speak for themselves, with the Singapore-listed headquarters recording a group profit attributable to shareholders of S$64.2 million for the fiscal year to September 2005. This represented annual growth of four per cent. Health supplements One strategy has been to introduce essence of chicken in herbal variants and in products especially intended for children. Also, an extensive range of health supplements has been developed, some of which use bird's nest as a key ingredient. These have given a boost to sales and made it possible to break into new market sectors. "Our aim is to be the health partner of consumers at every stage of life," Mr Feng explains. "Therefore, we will continue to innovate and create quality products in order to satisfy different demands and growing needs." Among the recent additions are new products which include bird's nest with manuka honey, collagen and rock sugar, and essence of chicken with lingzhi spores. The packaging has also been updated and, in particular, a new type of cap with a triple-safety feature has generated a lot of positive feedback. The company sees this as one important way of building closer relationships with customers and moving with the times. "Achieving consistently good results is a matter of recognising when changes are needed," says Mr Feng. "Then you have to ensure that staff understand the new concepts and techniques in order to effect the necessary transformation." To get the appropriate message across to the general public, Cerebos uses TV commercials and print advertisements. There is also a customer relationship management (CRM) platform to gain a better insight into consumer preferences and expectations. This is a multimillion-dollar investment in IT, which stores detailed information, making it much easier to track trends and analyse specific sales data. Customer feedback Much of the information held in the CRM system is obtained via the company's call centres. Staff there are trained to listen carefully to comments, and the feedback they receive is invaluable in building a profile of consumer attitudes, consumption patterns, and what motivates people to buy. "This kind of interaction enables us to develop new and relevant products that customers really want," Mr Feng notes. As a good corporate citizen, the company has set up a health education fund to raise public awareness about health issues and encourage young people to participate in community activities. In particular, the fund provides sponsorship for secondary school students to create and execute community projects, enabling them to gain practical experience and bring real benefits to others. "Through the fund, we hope to reach every corner of Hong Kong and keep spreading the word about the importance of looking after one's health," Mr Feng says. Then and now Before Leader in health supplement with key product lines based on essence of chicken and bird's nest Main communication with customers via marketing activities such as television, radio commercials, and print advertisements After Extended health supplement products in form of tablets in more extensive range of 13 variants Introducted CRM (customer relationship management) system as a key strategic tool to connect with customers and understand their needs Health education fund sustains awareness of long-term health via financial sponsorship of community projects planned and implemented by secondary school students Taken from Career Times 21 April 2006 Your comments are welcome at [email protected]