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Effective Communication Strategies in the
Digital Age –
The Success Story of BASF




 Ho Chi Minh City, May 31- June 1, 2012
 Ingrid Nienaber
 Senior Regional Manager Corporate Communications ASEAN
1 | Overview BASF
2 | Communication for a B2B company
3 | Traditional Media
4 | Social Media



  6/11/2012                INTERNAL
                   FOR EXTERNAL USE   22
BASF – The Chemical Company
We create chemistry for a sustainable future

 Our chemicals are used in almost all
  industries
 We combine economic success, social
  responsibility and environmental
  protection.
 Sales 2011: €73.5 billion
 Employees ~111,000                      Platzhalter für Bild

 Organized by Business and Functional
  Units both regionally and globally
 About 1,050 new patents filed in 2011
 6 Verbund sites and about
  385 production sites
                                                                 3
BASF in Asia Pacific
                       Customers from more than 15
                       countries
                       More than 17,000 employees

                       130 production sites

                       9 R&D sites
                       Sales* in 2011: Approximately
                       €14.4 billion
                       EBIT: €1.13 billion




                       *By location of customer; Data as of December 2011
                       #Some sites are not shown due to scale
                                                                            4
Sub region: ASEAN
                    8 wholly owned subsidiaries

                    11 joint ventures

                    20 production sites

                    22 sales offices
                    Approximately 3,840 employees
                    Sales* in 2011: Approximately
                    €2.4 billion
                    1 R&D site




                    *By location of customer; Data as of December 2011
                    #Some sites are not shown due to scale
                                                                         5
Structure of BASF’s 6 segments




                                        Performance         Functional       Agricultural
  Chemicals           Plastics                                                                   Oil & Gas
                                        Products            Solutions        Solutions

 Inorganics        Performance      Dispersions &      Catalysts       Crop Protection    Exploration &
                     Polymers          Pigments                                                 Production
 Petrochemicals                                          Construction
                    Polyurethanes    Care Chemicals      Chemicals                           Natural Gas
 Intermediates                                                                                 Trading
                                      Nutrition &        Coatings
                                       Health
                                      Paper Chemicals
                                      Performance
                                       Chemicals

                                                                                                                6
Care Chemicals




             7
Construction Chemicals




                     8
1 | Overview BASF
            2 | Communication for a B2B company
            •Branding
            •Traditional Media
            • Social Media
            • When not to use the media
6/11/2012                 INTERNAL
                              FOR EXTERNAL USE    99
We create chemistry
The combination of everything we do
brings our brand to life ...
                          Our promise:

                          We are connected to deliver
                          intelligent, sustainable solutions.




                          And prove every day that we don„t
                          just make chemicals:

                          We create chemistry for a
                          sustainable future.
… in Corporate Advertising
…through all BASF organizations and
communication channels
OPERATING/ FUNCTIONAL                          REGIONS/ COUNTRIES
DIVISIONS



                        Strategic Planning &
                         Implementation of
                         internal & external
                           communication



                           GROUPWIDE
… and in general
 BASF brand touchpoints
                                             e.g. brand architecture
e.g. Trade Fairs/                            (buildings, meeting rooms,
Annual Meeting      e.g. customer contacts   lobbies)                     e.g. Marketing events
1 | Overview BASF
            2 | Communication for a B2B company
            •Branding
            •Traditional Media
            • Social Media
            • When not to use the media
6/11/2012                 INTERNAL
                              FOR EXTERNAL USE    15
                                                   15
Does a B2B company even need to
engage with the media?




       Consumers
      don‟t buy our
         products!
Yes.

 Overall competitive positioning of BASF brand
 Demoralize the competition
 Market intelligence
 Prevent mistakes from appearing in the market
 Enhance share price
 And, yes, promote products


    … because we want to be the ones telling our story!
It’s not that simple: the right influencer for
the right purpose

                            NGOs

                                       Academics
     Media
                                           Community
                                           leaders



       Online
   communities


                                         Regulators
                 Industry
             associations
Mainstream media are (still) the principal
influencer online


 A)



 B)



 C)



 D)
NGOs have a wide reach through their
own “media”


                                        online magazines



    (paper) magazines




  Twitter feeds                          research reports

                        e-newsletters
Unaffiliated individual influencers exist
but are rare




         “An online influencer can come
       from anywhere, but not everyone
          can be an online influencer.”
Bringing technical topics to mainstream
audiences


 Community activities

  Feature interview

   Big investments



    Commentary

     Media tour

    VIP interviews
Making best use of trade media
 Time preview releases well before trade shows
1 | Overview BASF
            2 | Communication for a B2B company
            •Branding
            •Traditional Media
            • Social Media
            • When not to use the media
6/11/2012                 INTERNAL
                              FOR EXTERNAL USE    24
                                                   24
What are social media?

    Connect       (Micro-)Blog            Share




                  Private & Public
                     Worldwide

     Interact                          Opinion
                                      Blog    Discussion

                                     Voting   Campaigns
Change in communication because of
socialisation through the Internet

                                                                             Conscious decision of BASF:
   75% of social network users                                           Interaction on social media platforms
   have visited a brands profile.                                         to positively influence the image of
                                                                                          BASF.

   30% become a fan of a brand.

   72% of those who joined a
   brand community have a better
   brand perception than before                                                            connect.BASF




Wave 5 – the Socialization of Brands, UM 2010 http://www.slideshare.net/tlinz8612/wave-5-the-socialisation-of-brands-report-5465006
BASF Strategy:
Opportunities Through Social Media
We add value as one company            We innovate to make our customers
                                       more successful

 Strengthen brand and reputation as    Open innovation through
  one company                            collaboration
 Create value through cooperation      New ways of customer support
 Network for the Verbund               Market research


We drive sustainable solutions         We form the best team

 Build trust through openness          Cater to digital generations
 Engage in dialogue, influence and     Expand networks, know-how
  impact                                 transfer, problem solving
 Drive solutions to the public         Support leadership culture
Overview: BASF Online Communications
             Internal                                   External
      News channels “BASF today”                  Social Media Channels




       Online Business Network                  Corporate Blogs & Widgets
              connect.BASF



                  Intranet                              Internet




     Consulting         Training   Governance     Guidelines       Monitoring
Publishing Concept
and Cross-Linking with BASF.com
                       In Depth Information: BASF.com

  Content: YouTube,                                     Dialog: Facebook,
  Slideshare, Flickr                                         Google+




                            Website Integration


 Business: LinkedIn
                                                        Newsflow: Twitter
Hosting social media discussions
(on our platform)

 We believe our own platform is the
  best place for a controversial
  discussion
 Best practices:
    Transparent use of authorized
     individual spokespeople
    Professional style
    Reference to published
     information
    Impartial “reporting” with our
     point of view
    Quick responses
Entering social media discussions
(on managed platforms)




 Best practices:
   Refer to website
   Respond publicly if possible
   Respond quickly that you will respond later,
    even if you can‟t actually respond quickly
Entering social media discussions
(on others’ platforms)

 Want to get to know a journalist /
  influencer? Commenting on her
  blog is a great way to do it!
Provoking social media discussions (on
managed platforms)

 Best practices
    Keep topics relevant to the
     stakeholder – not just yourself
    Use Twitter for “arms-length”
     relationship building
    Start discussions with @replies
    Use #hashtags
    Retweet liberally
    Retweet clips to enhance
     media relations
Entering social media discussions (on
others’ platforms)

 In controversies: get your
  side of the story heard by
  the silent majority
 Best practices
     Consistent, approved
      core messages, but
      authorized
      spokespeople have
      some autonomy to
      implement them
     Address the issue,
      more than the
      comment
Creating social media discussions (on
managed platforms)

 Best practices
    Keep the topic relevant to the
     audience
    Solid “infotainment” style
     content
    Explicitly invite discussion
Lessons Learned – How To Engage

                DOs                                      DON'Ts
Engage regularly with your audience,    Don‟t open a social media channel
 setting goal for posting (e.g. once a    and not use it
 day)
                                         Don‟t tell secrets – e.g. confidential or
Respond quickly to posts (response       proprietary information
 within 24 hours)
                                         Don‟t speak marketing language or
Act in an authentic, honest and          include too marketing-driven posts
 respectful way
                                         Don‟t post too much, especially do not
Consider your target group, offer        publish irrelevant posts
 interesting mixture of content
                                         Don‟t leave your activities unattended
Show personality, include “human”
 stories and interesting facts
1 | Overview BASF
            2 | Communication for a B2B company
            •Branding
            •Traditional Media
            • Social Media
            • When not to use the media
6/11/2012                 INTERNAL
                              FOR EXTERNAL USE    37
                                                   37
When not to use the media: working with
influencers

 “Small group” communications: follow the continuum

     Hostile                                                  Cooperative
  stakeholders                                                stakeholders



  Attend the      Speak at the     Sponsor      Invite them          Co-
    same             same           their         to your          organize
  conference       conference       event          event           an event
When not to use the media: working with
influencers

 “Make friends before you
  need them”
    Prepare rich content
    Follow up
     opportunistically
    Leverage multiple
     platforms for initial
     introductions
When not to use the media: working with
influencers

 Take a structured approach (it‟s not just schmoozing)
     Identify and track influencers by name; keep a mailing list
     Assign ownership of important relationships (“key account
      management”)
     Nurture the relationships: be generous with time and introductions
When not to use the media: don’t always
go solo

 Industry issues are
  better handled by
  associations
 Support behind the
  scenes with
  information,
  resources, content,
  expertise
 Collaborate, but
  don‟t collude: abide
  by ethical principles
Building a brand like BASF is like creating
chemistry
Questions




            ?
Find or follow BASF on:




                       Website:
                  asiapacific.basf.com

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Effective communication strategies in the digital age

  • 1. Effective Communication Strategies in the Digital Age – The Success Story of BASF Ho Chi Minh City, May 31- June 1, 2012 Ingrid Nienaber Senior Regional Manager Corporate Communications ASEAN
  • 2. 1 | Overview BASF 2 | Communication for a B2B company 3 | Traditional Media 4 | Social Media 6/11/2012 INTERNAL FOR EXTERNAL USE 22
  • 3. BASF – The Chemical Company We create chemistry for a sustainable future  Our chemicals are used in almost all industries  We combine economic success, social responsibility and environmental protection.  Sales 2011: €73.5 billion  Employees ~111,000 Platzhalter für Bild  Organized by Business and Functional Units both regionally and globally  About 1,050 new patents filed in 2011  6 Verbund sites and about 385 production sites 3
  • 4. BASF in Asia Pacific Customers from more than 15 countries More than 17,000 employees 130 production sites 9 R&D sites Sales* in 2011: Approximately €14.4 billion EBIT: €1.13 billion *By location of customer; Data as of December 2011 #Some sites are not shown due to scale 4
  • 5. Sub region: ASEAN 8 wholly owned subsidiaries 11 joint ventures 20 production sites 22 sales offices Approximately 3,840 employees Sales* in 2011: Approximately €2.4 billion 1 R&D site *By location of customer; Data as of December 2011 #Some sites are not shown due to scale 5
  • 6. Structure of BASF’s 6 segments Performance Functional Agricultural Chemicals Plastics Oil & Gas Products Solutions Solutions  Inorganics  Performance  Dispersions &  Catalysts  Crop Protection  Exploration & Polymers Pigments Production  Petrochemicals  Construction  Polyurethanes  Care Chemicals Chemicals  Natural Gas  Intermediates Trading  Nutrition &  Coatings Health  Paper Chemicals  Performance Chemicals 6
  • 9. 1 | Overview BASF 2 | Communication for a B2B company •Branding •Traditional Media • Social Media • When not to use the media 6/11/2012 INTERNAL FOR EXTERNAL USE 99
  • 11. The combination of everything we do brings our brand to life ... Our promise: We are connected to deliver intelligent, sustainable solutions. And prove every day that we don„t just make chemicals: We create chemistry for a sustainable future.
  • 12. … in Corporate Advertising
  • 13. …through all BASF organizations and communication channels OPERATING/ FUNCTIONAL REGIONS/ COUNTRIES DIVISIONS Strategic Planning & Implementation of internal & external communication GROUPWIDE
  • 14. … and in general BASF brand touchpoints e.g. brand architecture e.g. Trade Fairs/ (buildings, meeting rooms, Annual Meeting e.g. customer contacts lobbies) e.g. Marketing events
  • 15. 1 | Overview BASF 2 | Communication for a B2B company •Branding •Traditional Media • Social Media • When not to use the media 6/11/2012 INTERNAL FOR EXTERNAL USE 15 15
  • 16. Does a B2B company even need to engage with the media? Consumers don‟t buy our products!
  • 17. Yes.  Overall competitive positioning of BASF brand  Demoralize the competition  Market intelligence  Prevent mistakes from appearing in the market  Enhance share price  And, yes, promote products  … because we want to be the ones telling our story!
  • 18. It’s not that simple: the right influencer for the right purpose NGOs Academics Media Community leaders Online communities Regulators Industry associations
  • 19. Mainstream media are (still) the principal influencer online A) B) C) D)
  • 20. NGOs have a wide reach through their own “media” online magazines (paper) magazines Twitter feeds research reports e-newsletters
  • 21. Unaffiliated individual influencers exist but are rare “An online influencer can come from anywhere, but not everyone can be an online influencer.”
  • 22. Bringing technical topics to mainstream audiences Community activities Feature interview Big investments Commentary Media tour VIP interviews
  • 23. Making best use of trade media  Time preview releases well before trade shows
  • 24. 1 | Overview BASF 2 | Communication for a B2B company •Branding •Traditional Media • Social Media • When not to use the media 6/11/2012 INTERNAL FOR EXTERNAL USE 24 24
  • 25. What are social media? Connect (Micro-)Blog Share Private & Public Worldwide Interact Opinion Blog Discussion Voting Campaigns
  • 26. Change in communication because of socialisation through the Internet Conscious decision of BASF: 75% of social network users Interaction on social media platforms have visited a brands profile. to positively influence the image of BASF. 30% become a fan of a brand. 72% of those who joined a brand community have a better brand perception than before connect.BASF Wave 5 – the Socialization of Brands, UM 2010 http://www.slideshare.net/tlinz8612/wave-5-the-socialisation-of-brands-report-5465006
  • 27. BASF Strategy: Opportunities Through Social Media We add value as one company We innovate to make our customers more successful  Strengthen brand and reputation as  Open innovation through one company collaboration  Create value through cooperation  New ways of customer support  Network for the Verbund  Market research We drive sustainable solutions We form the best team  Build trust through openness  Cater to digital generations  Engage in dialogue, influence and  Expand networks, know-how impact transfer, problem solving  Drive solutions to the public  Support leadership culture
  • 28. Overview: BASF Online Communications Internal External News channels “BASF today” Social Media Channels Online Business Network Corporate Blogs & Widgets connect.BASF Intranet Internet Consulting Training Governance Guidelines Monitoring
  • 29. Publishing Concept and Cross-Linking with BASF.com In Depth Information: BASF.com Content: YouTube, Dialog: Facebook, Slideshare, Flickr Google+ Website Integration Business: LinkedIn Newsflow: Twitter
  • 30. Hosting social media discussions (on our platform)  We believe our own platform is the best place for a controversial discussion  Best practices:  Transparent use of authorized individual spokespeople  Professional style  Reference to published information  Impartial “reporting” with our point of view  Quick responses
  • 31. Entering social media discussions (on managed platforms)  Best practices:  Refer to website  Respond publicly if possible  Respond quickly that you will respond later, even if you can‟t actually respond quickly
  • 32. Entering social media discussions (on others’ platforms)  Want to get to know a journalist / influencer? Commenting on her blog is a great way to do it!
  • 33. Provoking social media discussions (on managed platforms)  Best practices  Keep topics relevant to the stakeholder – not just yourself  Use Twitter for “arms-length” relationship building  Start discussions with @replies  Use #hashtags  Retweet liberally  Retweet clips to enhance media relations
  • 34. Entering social media discussions (on others’ platforms)  In controversies: get your side of the story heard by the silent majority  Best practices  Consistent, approved core messages, but authorized spokespeople have some autonomy to implement them  Address the issue, more than the comment
  • 35. Creating social media discussions (on managed platforms)  Best practices  Keep the topic relevant to the audience  Solid “infotainment” style content  Explicitly invite discussion
  • 36. Lessons Learned – How To Engage DOs DON'Ts Engage regularly with your audience, Don‟t open a social media channel setting goal for posting (e.g. once a and not use it day) Don‟t tell secrets – e.g. confidential or Respond quickly to posts (response proprietary information within 24 hours) Don‟t speak marketing language or Act in an authentic, honest and include too marketing-driven posts respectful way Don‟t post too much, especially do not Consider your target group, offer publish irrelevant posts interesting mixture of content Don‟t leave your activities unattended Show personality, include “human” stories and interesting facts
  • 37. 1 | Overview BASF 2 | Communication for a B2B company •Branding •Traditional Media • Social Media • When not to use the media 6/11/2012 INTERNAL FOR EXTERNAL USE 37 37
  • 38. When not to use the media: working with influencers  “Small group” communications: follow the continuum Hostile Cooperative stakeholders stakeholders Attend the Speak at the Sponsor Invite them Co- same same their to your organize conference conference event event an event
  • 39. When not to use the media: working with influencers  “Make friends before you need them”  Prepare rich content  Follow up opportunistically  Leverage multiple platforms for initial introductions
  • 40. When not to use the media: working with influencers  Take a structured approach (it‟s not just schmoozing)  Identify and track influencers by name; keep a mailing list  Assign ownership of important relationships (“key account management”)  Nurture the relationships: be generous with time and introductions
  • 41. When not to use the media: don’t always go solo  Industry issues are better handled by associations  Support behind the scenes with information, resources, content, expertise  Collaborate, but don‟t collude: abide by ethical principles
  • 42. Building a brand like BASF is like creating chemistry
  • 44. Find or follow BASF on: Website: asiapacific.basf.com