10 things to make you think

FUTURELAB

We are Futurelab

WE ARE FUTURELAB

We create new profit opportunities for our customers.  Our innovations and methods allow:

•Marketers to become more effective & engaging.•Innovators to identify the next opportunity or niche.•CEO‘s to connect their business to the customer.

In the process, we challenge every barrier to business success. We dislike writing reports, billable hours or elaborate processes. 

Instead, we prefer to "get on" with making money for your business.

FUTURELAB

A flexible boutique: 2 partners – 3 support staff – 7 associates – 28 specialists/contributors

Athens – Barcelona - Brussels – (Bucharest ) – Johannesburg – Hamburg – Moscow – Kiev - Munich - Shanghai

Priviliged Relationships

Futurelab Structure

Welcome to the Bolshoi

FUTURELAB

•30,000 products in an average supermarket

•+600% new product introductions since 1994

•Average shopping time: 21 minutes

•Average products bought: 18

•80% of purchase decisions made in-store

•Average decision time: 2.5 seconds

•Shoppers only “see” half of the products available

Can you Make the Light Shine on Your Product?WHY BOTHER?

Source: G2 Shopper Marketing Survey, April 2008

FUTURELAB

Crisis

Especially Now Times are Tough.WHY BOTHER?

Consumer Behaviours During a Recession Changes

Source: OgilvyOne, October 2008

Delay Purchases Plan Ahead

Service & Rewards Social Circling Save & Splurge

Deal Seeking

FUTURELAB

FUTURELAB RESEARCH

Case Study: the US market

In the last years, US consumers spent approximatively US $1 trillion on food, or almost 10% of the GDP.1 The pie chart above describes the consumers’ reactions to the current economic situation. With food prices going up (see previous slide), brands are now facing a harsh truth: customers are disloyal.

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FUTURELAB RESEARCH

Case Study: the US market

At the same time, consumer expectations have gone up, as shown in the above Accenture study. Compared to five years ago, 44% of US consumers surveyed have declared that they have higher customer service expectations. 23% have declared that their expectations have gone up since the last year. Furthermore, only 3% of consumers worldwide say that their CS expectations are always met. 10

FUTURELAB RESEARCH

Case Study: the US market

With the advent of new media and the ever-increasing awareness channels, US consumers now have increasingly higher expectations, with the CPG sector making no exception. Companies are now finding that issues such as sustainability, wellness and transparency are coming up more and more often. At the same time, the proven lack of effectiveness of traditional marketing methods is raising the stakes even higher. And, to top it all off, studies show that, even though companies are gathering huge amount of data about their customers, only a select few know how to interpret it properly.

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Unlimited Choice

perception

80% of CEO’s believe their brand provides a superior customer experience

8 % of their customers agree

(Bain & Company)FUTURELAB

How to make that light shine on you?

Your customers are not a database – and not a statistic

TRADITIONAL SEGMENTATION“Look at the numbers”

Elsa (Female/urban/mid-income)

CASE STUDY: 25-30 year olds

25

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Understand what truly drives your customers

INSIGHT

Understand the emotional needs of your customers

Most Marketers Don’t Really Know ...CHALLENGES/OPPORTUNITIES

QUESTIONWHEN DID YOU LAST “SPEAK” TO A SHOPPER? WORK IN A STORE?

P&G employees will need to get out of the office and talk with customers.

India

Everyone should do every job in the store at least once in his career.

FUTURELAB

Insights into Ideas

The Greek Consumer

FUTURELAB RESEARCH

Issues and challenges: lack of insight

Retailers focus mainly on collecting and tracking data about “purchasing behaviors,” “geographics,” and “demographics.” All in all, Most food retailers know the “what” of their customers—what they buy, purchasing frequency, etc. But few know the “why”.

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10 things to make you think

10 Insights to make you think – 10 Questions to ask yourself

“I am sick and tired of Marketers lies”

76% of consumers don’t believe that companies tell the truth in advertisements

Yankelowich,2006

Transparency

• WHY (simple numbers or other, simple, straightforward proof of this)

Transparency?

FUTURELAB RESEARCH

I&C: Transparency

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Transparency?

You are being watched….

FUTURELAB

SAB Miller: making a difference through beer

Page 12

Our key priorities Discouraging irresponsible drinking Making more beer but using less water Reducing our energy and carbon footprint Packaging, reuse and recycling Working towards zero-waste operations Building supply chains that reflect our own values and commitment Benefiting communities Contributing to the reduction of HIV/Aids Respecting human rights Transparency in reporting our progress

Source: http://www.sabmiller.com/NR/rdonlyres/B5B9E625-8661-47E4-9EB3-783C2D977036/0/SABMiller_SDR_2008.pdf

FUTURELAB COMMENT

Sustainability, CSR – do good and tell about it, in very straight forward ways. The ‘we employed this many people, and paid this much in taxes, etc” works well.Dont fall into the PR trap, but tell people what you do, and why you do it.

CSR

Transparency

It doesn’t have to be complicated….

Are your campaigns truthful?Does the brand experience match the promise?At every touchpoint?

Question: How transparent are we in dealing with out customers?

“ I don’t want to lose that connection to the

village, the old/real life”

32Local Food

Authenticity

Authenticity

33Your own private sheep…

DoleTraceability

Authenticity

Crop to CupTraceability

Authenticity

De KasAs authentic as it gets – self grown food restaurant

Authenticity

FUTURELAB

Brewtopia - Custom branded beverages

Page 28

Since 2002, we've dedicated our tiny minds to customising Beer, Water & Wines online

You can now even create your own labels for delivery Worldwide

We have no minimum order, no setup charges and 100% money back guarantee on all products.

Source: http://www.blowfly.com.au/

FUTURELAB COMMENTHow about doing this yourself (in cooperation with a small printer with an entrepreneurial mindset)?Customised labels for parties, at an affordable price.Which 18-year old wouldnt love to have his personal bottles at his graduation or birthday party? How collectable would that make the bottles?

A great tool for engagement, collectability, and straight forward sales improvement.

Customization

Question:How authentic are we?

“The consumerism here is horrible – too many products, too much waste….”

Reduce waste and over-abundance

100 Calorie Packs

FUTURELAB RESEARCH

Future trends

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Reduce waste and over-abundance

Mini-packs

100 Calorie Packs

The ultimate give-away?

Show that you (really) care

FUTURELAB RESEARCH

Future trends

Functional food brand for pregnant women

A French company has developed a new line of food products for pregnant women. Dubbed Luna, the range consists of eight products made with organic ingredients, all aimed at ensuring women get the nutrients they need for a healthy pregnancy. Included are honey & sesame biscuits that are rich in iron, calcium, magnesium, phosphorus and fibre; and a herbal infusion that promotes healthy circulation.

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FUTURELAB RESEARCH

Future trends

Organic fast food - OBurger in Los Angeles

Los Angeles-based OBurger is out to show consumers that organic, healthy fast food can be just as convenient as more calorie-clogging fast food options.

The 100% organic menu is equally dedicated to the organic and sustainable cause.

Besides that, the logistics alone at OBurger are an impressive feat in restaurant innovation. They use non-toxic cleaning supplies and packaging that is recyclable, compostable or biodegradable.

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Question: How can we (im)prove our green credentials?

“I want you to really listen to me, understand me, engage with me”

Engage in the conversation – Buzz, WoM

• People want to have a conversation, not just being yelled at

• People trust people

FUTURELAB

33%

61%55%51%

2003 2004 2005 2006

A person like yourself or a peer

Edelman Trust Barometer 2006

When forming an opinion of a company, how credible would the information be from …

%

Academic 62

Doctor or similar 62

Person like yourself/peer 61Financial Analyst 58

NGO Rep 58

Accountant 53

Lawyer 36

Regular employee 33

CEO 29

Union 19

Entertainer 17

PR person 16

Blogger 15

People Still Trust Humans

Cosmetic concerns

‘Help us choose’

Start Listening

Listen in – and engage in the conversation!

Engage in the conversation!

Check yourself out regularly

And listen for the nasty bits….

And listen for the nasty bits….

Open your eyes

FUTURELAB

FUTURELAB RESEARCH

Future trends

Wine tastings via Twitter

Bin Ends, which was started up earlier this year, is now gearing up for its second Twitter Taste Live, which will be held this Thursday—the first one was in July. The project aims to give wine enthusiasts around the globe a chance to join the world's top wine personalities online for tastings via the popular social networking tool Twitter.

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Question: Are we having a conversation?

Find your existing communities

1 year: 100.000 registered customers Now: 2,800,000 registered customers

Enable your community

Quickbooks – the best example

Provide them with the right tools

FUTURELAB RESEARCH

Trends: Biocitizens

“Biocitizens” are people who join social networks (online or in person) based on shared health interests. They organize around disease management or chronic conditions; wellness practices like exercise, parenting, or aging; or environmental health concerns. These new collectives are generating, collecting, and sharing information, and they are becoming authorities in their own right. Their influence on the marketplace is increasing: As shoppers, we consult these social networks about healthy purchasing decisions ranging from food to deodorants to cleaning products; as consumers, we leverage them to demand a voice—not just a choice—in the products we are offered. Food retailers need to be aware of the networks operating around them, and alert to opportunities that help shoppers connect to each other.

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FUTURELAB RESEARCH

Trends: Biocitizens

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FUTURELAB RESEARCH

Trends: Biocitizens

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FUTURELAB RESEARCH

Trends: Biocitizens

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FUTURELAB RESEARCH

Trends: Biocitizens

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A community site for every café?

The largest virtual world on the planet in less than a year

April 2007: beta launch

June 2007: 3,000,000 users

July 2008: 15,000,000 users

The ultimate community connect

Facebook connect – recycle the community

Question: Are we fishing where the fish are?

“It’s all about my parea”

Empower the Tribal Leaders

Let them do your work

Create a movement

FUTURELAB

BeerBankroll Others are taking the idea of crowdsouring a step further. Including US based brewery called BeerBankroll, who are experimenting with involving the community to fund and manage their company. How do they do it? The first step is the Crowdfunding. Beerbankroll are recruiting members (50,000 to start with), who will contribute $US 50 to get the project up and running. Once BeerBankroll has raised $100,000, the Crowdmanaging kicks in. The BeerBankroll community will then be involved in actively running the business. Members can submit product ideas and vote on management decisions. They can have a say in everything from the brand name, company logo, product design, product mix, marketing plan, advertising and sponsorship. The company profits are then divided by three: One third is paid to members. One third goes back to the company. One third goes to charity. If the experiment works, BeerBankroll will have an army of 50,000 beer drinking brand evangelists to help them spread the word.

Source: http://digitaljury.wordpress.com/2008/07/03/crowdsourcing-for-beer/

FUTURELAB COMMENTWe see more and more of these crowd-finance projects – from movies to footballclubs, to, indeed, micro-breweries.

While this of course does not work for your direct businessmodel, how about applying these principles to social projects?A joint undertaking by all Amstel drinkers of Greece to raise E250.000 for a social business in Botswana, that then will be managed jointly?

An endless stream of PR and engagement with the consumers, and unleashing an army of promoters onto the market.

Crowd Finance

Question: Do I know what ‘tribes’ I can

connect to?

“I just love your products – and I would love to become involved. I actually have some good ideas!”

Let them improve your products

Let them build their own

Let them promote them

Or even innovate for you

Or even innovate for you

Finally, let them create your advertising

Finally, let them create your advertising

Question: Do we involve our fans enough?

“None of my staff I can really trust – what if I get sick? Who runs the company?”

What could you do?

Create a support mechanism. Re-engage the wisdom of the retired

Question: Do we understand the human issues of our channel partners?

And finally…the most important question of all!

WHYFUTURELAB

FUTURELAB

“Today's marketing model is broken. We're applying antiquated thinking and work systems to a new world of possibilities."

Jim Stengel, Global Marketing Officer P&G

Advertising Myths1. Frequency is not a driver

for action2. There is no golden rule

about OTS

Advertising is a tax you pay for unremarkable thinkingRobert Stephens,

CEO, the Geek Squad

Watch TV30%

Listen to Radio29%

Use the Internet

23%

Read News-papers

10%

Read Magazines

8%

Media Consumption Europe – 2006

% of total media consumption time

Share of total adspend by medium (global) % 2008 forecast (March 2008)

What’s wrong with these numbers?

Most influential information sources in purchasing electronic goods? (TOP 3)

CM

O C

ounc

il’s

Ret

ail F

luen

cy R

epor

t, 20

05

Newspaper Coupons 25

Internet 21

Product/Company Information 16

Retailer information 14

Other 14

Magazines 4

TV 4

Radio 3

FUTURELAB

Source %

In-store Sales Associate 49

In-store demonstration 36

Word-of-mouth from family & friends

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Even more wrong….

Share of total adspend by medium (global) % 2008 forecast (March 2008)

39.6

4.7

29.5

12.7 13.5

47.7

32.4

13.8

6.10.06

0

10

20

30

40

50

60

tv newspaper radio internet games

Media Usage %

Advertising Spend %

More wrong numbers

£300 vs £40MM

How about this for budget efficiency?

Spend my budget on WHAT!?

Get a fresh perspective on your budget

Get the store staff on your side Invest in the call centre Simplify the form....

WHY?

And most importantly – focus on word of mouth –

because Humans trust humans

% of people that are more likely to believe what they see, read or hear about a company if someone they know has already mentioned it.

Source: Edelman Trust Barometer 2008

• In Brazil, Canada, Germany, The Netherlands, Spain , Sweden and the US, “ a person like me” is the most credible source of information about a company

• 84% of opinion leaders 35-64 recommend companies that they trust to people they know. 37% write “emails of support”.

• 78% share their negative company opinions with others. 44% write emails complaining to the media, a politician or an official third-party

RECOMMENDATIONS MATTER

The Power of Recommendation

The Power of Recommendation

Word-of-mouth is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertisingMarketing Science Institute, 2006

1967 1983 2001 20071955

This is not exactly news....

0 1 2 3 4 5 6 7 8 9 10

Extremely unlikely

Extremely likely

NPS™= (Promoters-Detractors)/Total

DETRACTORS PROMOTERSPASSIVES

Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld

HOW LIKELY ARE YOU TO RECOMMEND?

The Power of Recommendation

Promoters make you more money-They spend more-They negotiate less-They stay longer-They are easier to service-They upgrade quicker-...Slide: Bain & Company, official NPS(tm) presentation Fred Reichheld.

Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld

The Power of Recommendation

This works for almost every industry

The Power of Recommendation

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Brands that built themselves with little or no traditional “advertising”

Most advertising agencies

e.g. Oxford Street, London

11 million passers-by a year(€ 4500/$5500 sq/m)

Or at € 2,000,000 p.a. budgetA CPM of € 18 or lower

Depending on

-Your product & service- On-site revenues- Marketing objectives

The numbers may add up

Or on a more modest level = the media value of your POP materials can be very highIt is also measurable

®

®

®

®

And something completely different:Retail as a Medium

No, it’s not...

• Traditional compensation & other systems stand in the way• Creative and media work in isolation• Lack of experience with new media (not everyone went

“dot-com”)• Venturing into uncharted territory = risky (even on a

personal level)• Nobody really knows how things will evolve

Who will be the First Penguin?

Where ARE the orcas?

Download an extended version of this presentation and a digital

handout at:Futurelab.net/FB

Read more on our blog at:Blog.futurelab.net

The Element of Surprise

If you want to know more about how to find true insights in the emotional needs of your target audience, and how to turn these into winning propositions and profit opportunities, give us a buzz

Helena ChariHelena.chari@tnsicap.gr+30 210 72 60 600

www.tns-global.com

TNS ICAP Futurelab Greece

FUTURELAB

Futurelab

Milton Papadakisathens@futurelab.net +30 210 72 60 600

www.futurelab.net

Stefan Kollesko@futurelab.net +32 473 888 996

www.futurelab.net

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