Conference report of FBIF2015

ACKNOWLEDGEMENT

Conference Report on FBIF 2015

PREFACE

As a professional conference organizer, we are honored to come in contact with the food industry which is ever old, ever young. FBIF 2015 has successfully attracted more than 450 distinguished guests from Nestlé, Coca-Cola, Pepsi, McDonald’s, Mondelēz International, COFCO, Master Kong, Danone, Diageo, WhiteWave, Mengniu Dairy, Yili, Bright Dairy, Cargill, Vitasoy, etc. Compared with FBIF 2014, FBIF 2015 has increased the proportion of trend-related topics everybody cares about. We have been exploring fresh elements such as cross-industry competition, circular economy and e-commerce over the years. The market signal they present is particularly representative and can even foresee the near future. They will cause revolutionary changes to the F&B industry. In regards to topics in connection with R&D and innovation, we emphasize more on practicability and referentiability. We use successful business cases to help colleagues of the R&D Dept. to get more valuable information. In addition, future-related topics on protein innovation and artificial food are extremely popular; in terms of marketing, we are on top of the most cutting-edge and most practical marketing rhythms as always. Senior marketing experts from Nielsen, BRAND Sense, Coca-Cola, Ogilvy, Anheuser-Busch InBev, etc. have had deep-going discussions over such topics as neuromarketing, scent marketing, creative marketing and artificial intelligence.

While promoting the project, we make contact with the smartest and most outstanding people in this industry every day, understand their opinions about the industry they are engaged in, learn about the most cutting-edge technology in the industry, and get to know all sorts of breaking news of the industry. Then, we integrate such new knowledge into the topic design and promotion of FBIF 2015. We hope that FBIF is not only a platform where elites of the industry communicate with each other, but also an industry booster that helps the entire food industry to grow in a healthier way and develop in a more scientific way, thereby benefiting the humanity. We are willing to make life-long efforts to achieve the goals.

Thank all the people who have helped us.

Isabella Hsu

Head of Content of FBIF 2015


Table of Contents

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60

Highlights

Surprises at the Site

Innovation Cases

Excellent Opinions

Plenary Session

Status Analysis and Trend of Food and Beverage Market - Jason Yu, General Manager in China, Kantar Worldpanel

With Respect to Cross-Border Competition, Opportunities and Challenges Coexist – Adam Xu, Partner, Strategy&

Finding the White Space of Food and Beverages in a Cluttered Market - Lynn Xu, Vice President, Innovation Practices, Nielsen Greater China

R&D Session

Innovation Strategies to Accelerate Growth - Valerio Nannini, Senior Vice President, Head of Strategies and Performance, Nestle

Consumer-inspired Innovation: The Source of Success - Marcelo Amstalden Möller, Head of Global CMI for Innovation, Global Brands & Cider, Heineken Group B.V.

A Happy Egg Story – Love, revolution and a hen named Freeda- Paul Williams, Creative Director, Springetts Brand Design Consultants Limited

Structural Packaging - Innovative Beverage Concepts - Cristian Stancu, Manager, Remark Studio

Can Packaging Innovation – William Fu, Sales & Marketing Vice President, Ball Asia Pacific Limited

The Age of Disruption, Clustering the Global Trends- Sarie Moolenburgh, Client Brand Director, Cartils


R&D Innovation Creating an Infinite Future - Cao Yongmei, Chairman of Group Production Council, Want-Want China

Bringing Ideas to Life - How to Support the Young - Robin Stein/ Hans-Kaspar Mayer, Co-founder, Babo Blue

IDC Technology Innovation - Enabling RTD Beverage Dispensing for Weeks, Maintaining Shelf-life Without Refrigeration - Li Xin, Board Member - Industry Advisory Board, International Dispensing Corporation (IDC)

Storytelling: The Coca-Cola Way - Richard Cotton, Content & Creative Excellence Director, Coca-Cola

The Brain behind Better Brands – Guo Lan, Head of Nielsen Neuro Greater China Hong Bo, Professor, Department of Biomedical Engineering, School of Medicine, Tsinghua University

“ The Beer that Speaks for Itself ”- Mike Bascom, Director of Marketing, AB InBev Canada

Scent Branding in a Multi-Sensory Context - Simon Harrop, CEO at Brand Sense

HP Digital Printing for Food & Beverage – The Art of Possibilities - Nancy Janes, Worldwide Programs Director for Brand and Agency Marketing Business, HP

Fink (Think) Different - Graham Fink, Chief Creative Officer, Ogilvy

Baidu Moments - Zhao Ting, General Manager of Baidu Key Account Department, Baidu

Life of Advertising Guys - Lorraine Yuan, Vice General Manager of Sales Department, Microsoft Online

Marketing Session

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73 Cultured beef: An alternative to livestock beef- Mark Post, Professor of Vascular Physiology, Chair of Physiology, Maastricht University

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Conference Report Report on FBIF 2015

Strategic Holistic Product Design – Chen Weizhi, Sr. Vice President & Chief Technical Officer, The WhiteWave Foods Company

65 Transformation Journey of PepsiCo - Ellen De Brabander, Sr. Vice President, Nutrition R&D PepsiCo

62 Globalization and Localization - Aalt Dijkhuizen, Former President & CEO of Wageningen UR (University & Research Centre)

Statement and Contact Information162

Top Popular Speakers

Attendance Proportion

Feedback

Suggestions for Improvements

Participating Enterprises

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159

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Attendees’ Feedback

Conference Report Report on FBIF 2015

Programmatic Buying: Brand Age - Roy Zhou, CEO at Yoyi Digital

Data Driven Innovative Precision Marketing - Maggie Wang, Vice President, Commercial Strategy and e-Commerce, AdMaster

CONTENT VELOCITY PACE+PURPOSE - Silvia Goh, Chief Content Officer, Starcom MediaVest Group

Synchronizing a Brand with Culture to Get Best Returns - Panos Dimitropoulos, Cultural Insights Associate Director, Added Value

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Disruption and Innovation - Brian Swords, Managing Director, TBWA

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Native Marketing and Legendary Stories - Andy Xu, Senior Vice President, Ifeng

132

Ms. Chocolate brings various magical chocolates unavailable in the marketThe anti-oxidizing chocolates developed by Ji Shunying, a consultant of China

Chocolate (Suzhou) R&D Center, will not make you gain weight, but can smoothen

heart and blood vessels and make you healthy and beautiful. Spicy chocolates

perfectly balance fragrance and piquancy. She also brings salty chocolates, chenpi

chocolates and chocolate moon cakes. The chocolate grandma has become a

goddess in Simba’s mind.

The bottles are subjected to HP digital printing. Simba delivered the bottles to every owner in person. Digital printing is not as easy as customization,

but can be used to trace the food source, identify counterfeits, accelerate the launch, etc.

Customized scenarios----no need to tear off the tags on water bottles with signatures

The beer is developed by five students of Technische Universität München (TUM) and its

taste is similar to that of Ralders. The beer has

received the 2015 Germany Beverage & Food

Innovation Gold Award due to its unique color

and idea. Robin&Hans, founder of Babo Blue is

preparing to launch the beer in the local market.

Simba hopes that it would come to China.

BABO BLUE - Sky-blue Beer

Surprises at the SiteHighlights

Conference Report Report on FBIF 2015 8

Innovation Cases

Cultured Beef: Can It Replace Livestock Beef in 20 years?- Mark Post, Professor of Vascular Physiology, Chair of Physiology, Maastricht University

The Beer that Speaks for Itself: Chat with Beer? Maybe It Is a Good Idea- Mike Bascom, Director of Marketing, AB InBev Canada

Artificial Intelligence: Is “she” or “it” Microsoft Xiaobing?- Lorraine Yuan, Vice General Manager of Sales Department, Microsoft Online

Scent Marketing: Next Marketing Breaking point?- Simon Harrop, CEO at Brand Sense

Excellent Opinions

Plenary Session

Status Analysis and Trend of Food and Beverage Market

With Respect to Cross-Border Competition, Opportunities and Challenges Coexist

Finding the White Space of Food and Beverages in a Cluttered Market


Status Analysis and Trend of Food and Beverage Market

Jason Yu, General Manager in China, Kantar Worldpanel

“Any new product innovation that cannot increase the “sales” and “increment” is useless.”

Kantar obtains much data from the “CPI research” Panel which

is composed of 40,000 families. Kantar understands the

situation concerning purchasing of these families by way of

asking these families to scan barcodes of the products they

purchase. These consumers spread in cities ranging from tier 1

to tier 5, representing the entire consumption market in China.

The Chinese FB market trend involves three aspects.

No. 1: How does the market shift?

No. 2: What is the market innovation driven by? What is the

status quo? Are there successful or unsuccessful products?

Are there any lessons?

No. 3: In terms of the F&B industry, which opportunities does

the e-commerce provide?

Between 2012 and 2015 Q1, the fast-moving consumer goods

(FMCG) market in China obviously slowed down. The growth

rate in 2012 Q1 was about 13%-14%, but that in 2015 Q1 was

only 4.3%. More obvious consumer shifts are taking place in

the market. Firstly, the consumers will become more digital

and mobile, so will the marketing environment. Secondly,

e-commerce is quickly changing the consumers’ shopping

behaviors. Thirdly, cities at lower tiers will become the main

force that drives the market, and consumption upgrades

are still the theme of the market. Manufacturers should

seize opportunities brought by consumption upgrades.

Comparatively speaking, the rising Chinese brands can seize

the opportunities in the current environment and realize fast

overall growth.

We own a team specializing in communications and

monitoring tier 4 and tier 5 cities in China, namely, county-

level cities and counties. The penetration rate of smart

phones was up to 73% in December 2014, and that was 46%

in the same period in 2013. Therefore, in terms of marketing,

it is realizable to use smart phones to communicate with

customers, even in county-level cities and counties. In terms of

growth (figure 1), the average growth rate is 7.4% in 2013, and

5.4% in 2014. However, cities at different tiers have different

contributions to the growth rate. Provided that the entire

market growth rate is 100%, tier 1 and tier 2 cities contribute

13%, tier 3, tier 4 and tier 5 cities 86%, in particular prefecture-

level cities which account for 35% of the Chinese population

but which contribute 46% of the consumption growth.

Therefore, tier 3, tier 4 and tier 5 cities drive the growth of the

FMCG market in China as a whole.

( Figure 1 )

Plenary Session


Speaking of consumption upgrading, if the driving factors

of Chinese consumer goods are divided into four parts,

namely, the number of consumers, shopping frequency, size

of shopping basket, and per-capita consumption price, the

average price has the highest driving force, and the shopping

frequency presents negative growth, which indicates that the

consumers are lazier and lazier and seldom go shopping. Such

behavior will be similar to that of consumers in developed

countries who do not purchase FMCG every day, but possibly

once or twice a week. Nevertheless, the number of consumers,

size of shopping basket and average price are still main

driving forces of the market. Compared F&B with personal

care products, the price played an obvious role in driving

the F&B market in the previous year, which indicates that the

consumers are willing to spend more on food and beverages.

Which categories are driving the growth? The answer is F&B

and other products. As shown in figure 4, the CPI in terms of

categories on the left was lower than 2% in the previous year,

but the price growth was far higher than 2%. It is interesting

that bottled water realized a growth rate of 10%. More and

more high-end water entered the market in 2014, which

results in obvious rise in the price in the water market.

(Figure 4, 2014)

(Figure 3: Abscissa: Annual average consumption of each family; ordinate: online shopping penetration rate)

Let’s take a look at other figures: Only 26% of families in tier

1-5 cities purchased FMCG via e-commerce in 2012, and the

proportion reached 36% in 2014 and 37% in 2015 Q1. Many

e-commerce businesses are realizing explosive growth in

small categories, especially emerging categories. Among

categories shown in the following figure (figure 2), the growth

rate is above 80%. For example, the growth rate of cheese

in the entire e-commerce channel was higher than 300%,

which on the one hand indicates that the Chinese market is

in great demand of emerging categories, and on the other

hand explains that it is relatively difficult for cheese to arrive at

entity channels, because it has high requirements for storage

temperature and transportation. Therefore, e-commerce

channels with good resources, especially those in relation to

fresh food, help push growth of small categories.

( Figure 2)

Based on the following figure (figure 3), we can see that e-commerce channels polarize in the market. In some key cities, 50% of families purchase FMCG via e-commerce, with the amount being above RMB 1,000 Yuan. On the bottom left are counties, in which e-commerce is comparatively undeveloped. In the middle are prefecture-level cities and county-level cities and even provincial capitals, which have certain differences in development, but not so great. In such cities, e-commerce is fast erasing the intermediate links. The trend of “de-intermediation” or “de-differentiation” makes consumers’ shopping behaviors in cities of middle tiers particularly similar, which is a very hard-won opportunity for manufacturers.


Similarly, we can see that the price of some categories,

particularly imported wine, has obviously decreased, which

is attributable to anti-corruption and anti-extravagance that

result in thrift in people’s life. In addition, edible oil decreased

by 1.4% in the previous year, which is manly attributable

to impacts of the entire macro environment. After the

government or organizations cuts the distribution of oil, the

consumers are more prudent while selecting products.

We yearly release the ranking list of footprints of global brands

which measures one indicator-“CRP”: We get the number of

times of Chinese consumers’ purchase regarding these brands

via multiplying the purchasing frequency of customers by the

penetration rate of each brand. In the rankings as shown in

figure 5, Hong Kong and Taiwan brands are Chinese brands,

and the number of purchasing times concerning three Chinese

brands are above 1 billion. With regard to the other seven

brands, a majority of them are food-related brands. Food is a

category that involves high consumer purchasing frequency,

so these brands should have firmly understood the bond of

everyday contact with the consumers.

(Figure 5)

I now ask two questions: If 100 products are launched in the

Chinese market, how high is probability of success of them?

What are the success criteria? The general criteria include high

sales and increment, and the sales amount of the company’s

product line should not be masked. Last year, we researched

and analyzed categories in Chinese mature markets and

emerging markets, finding that it is caused by new SKUs in the

market in the previous three years.

I now give you three numbers. The first one is 45: we find that

45% of the products which have been launched for three

years are available in the market, and the other products have

disappeared due to market competition. The second one is

19%: 19% of the products have achieved high net growth of

30%-50% or above. The third one is 4: Among all categories

in the Chinese market under our research, only 4% of the

products realized the growth in the above two aspects. Why?

I now give you some additional numbers: first, 1.5% and

50 million: new products that have been launched for one

year can averagely reach 1.5% of Chinese families, and the

average sales are RMB 50 million Yuan; second, 31%, it is an

important number which refers to that new products can

averagely attract 1/3 all-new consumers and 2/3 of them have

previously purchased such category. The third one is 2.7: the

net growth rate that a new category brings to its parent brand

is 2.7%. These numbers vary with the industries, but you

can take them as references, so that you can set a goal in an

optimistic or pessimistic manner when you intend to launch a

new product.

The entire new product research lasts for a long time and

is very complicated, and much time should be spent on

different processes. As to cost calculation, the investment

percentage is mainly affected by production and launching,

but R&D generally costs much. With respect to the vast sum

invested in new product areas, the expenses on previous

market assessment, concept screening, or market research

are few. The success rate will not be very high without paying

attention to them. Here comes another question: How are net

growth and high growth be presented?

Any innovation that cannot result in effective feedbacks

should be useless. Therefore, I want to emphasize that a new

product should be different from any of the previous products

as far as possible. Firstly, a new product should attract new

consumers, which is a new measurement. Secondly, the new

product should promote the growth of the category. Thirdly,

the new product should satisfy the consumption environment

that the parent brand has not covered. Fourthly, the new

product should not be used as a direct substitute of the

parent brand, that is to say, the new product will not result in

decrease in purchasing of other products under the parent

brand. Fifthly, the new product should have differentiated

functions. Actually, these are not news. Many brands do not

realize satisfactory results during practical brand operation.

Now, I will talk about a case of Snickers. A Snickers bar is 50g in

general. Several years ago, Snickers launched 20g bars which


mainly target traditional channels and cities at lower tiers,

and a 20g bar sells at RMB 1.5 Yuan. In terms of results, 51% of

the consumers of the Snickers 20g bars had never purchased

such products. This new SKU is a very simple innovation, but

can attract many consumers for the brand. Another case is

about Schweppes. It realizes the penetration rate of 2.2%

after Schweppes products are launched, which is far higher

than the average in the market. The products have realized

the sales amount of more than RMB 40 million, and 99% of

the consumers are new ones. However, the brand is actually

not a new comer in China. It is affiliated with Coca-Cola, and

previously existed in the market. Coca-Cola subjected the

brand to new positioning and packaging, and highlighted

the C concept in packaging, which helped fuzz the product

boundary, and the brand crosses the industry to some extent.

The products are carbonated beverages and the C concept

brings some functional advantages. In a sense, the 3% sales

are actually from Fanta affiliated with Coca-Cola, but the 10%

sales are from the new functional drinks.

There are other examples relating to satisfying consumers’

new needs. The first example is a personal care brand named

BB or CC. The products have different functions and satisfy

customers’ needs for different occasions. The products fast

grow from 13% to 23% in South Korea, and are particularly

welcomed in China. Similarly, the brand integrates different

functions and advantages into the products. The second

example is Sensodyne. Its parent company GSK has an

extremely high brand effect in the field of medicine.

Under the call of such a powerful brand, it has constantly

launched new products, including minty toothpaste, anti-

sensitive toothpaste, whitening toothpaste and gingival

care toothpaste. Every product extends the parent brand’s

advantages, finally brining obvious increments to the parent

brand.

The success rate of the new product market is only 4%. Why?

Main reasons for the failure in foreign research of fresh

food: The first reason is insufficient market analysis.

Sufficient market surveys are not performed before launch

of the products, and there’s a lack of understanding of the

opportunities that new products will bring. The second

reason is insufficient differentiation provided. In the course

of performing advertising, the manufacturer is not willing

to spend much money on advertising of some extensions,

because it considers that the parent brand has enjoyed high

popularity. The third reason is inconspicuous differences

on the package, which result in that the consumers cannot

find the new products. Oreo is a respectable brand. It yearly

launches varied products, but the increment brought by the

new taste or new package is lower and lower. Figure 7 shows

the data provide by Kantar’s brother company. From the figure,

we can see that the investment made by many companies in

advertisement of extensions is far lower than that in creating

a new brand, and the increase in the popularity is far lower

than that of some all-new brands. Take “Pink Guava Drink” and

“Kumquat Lemon” for example, when a consumer needs to

make a purchase decision in the store, it is difficult for him to

select the two products from a row of fruit juice beverages,

especially those of the same brand, which explains why the

net growth rate concerning consumers purchasing the two

products are far lower than the average level in the industry or

the category to some extent.

(Figure 7)

In the previous two years, Chinese high-end products realized

the net growth rate of 24%, and mainstream products only

realized the net growth rate of 15% (high-end products

are products that sell at the price at least 20% higher than

the average price of the same category). 54% of successful

products launched by transnational companies in the previous

year are high-end products, but the proportion is only 27%

for local companies. The reason is that local businesses focus

on popularized product categories. The absolute number

regarding successful high-end products launched by domestic

manufacturers is not very high, but the success rate is 30%

higher than that of transnational companies. There are many

reasons that can explain the number, one of which is possibly

that a majority of products of domestic manufacturers are

mainstream products. New high-end products are possibly

much more different from previous products, so the success

rate is contrarily higher.


(Figure 8)

(Figure 9)

Figure 9 shows a reference concerning selection of

e-commerce. According to monitoring, the difference

among e-commerce businesses is not great. The unit price in

Jingdong Mall is relatively high. In terms of FMCG, Yihaodian

should be an e-commerce channel that sells the most

products, with the average number of products purchased

by a consumer being 8, and the lowest number being 3 for

Amazon. The spending each time does not vary much, smaller

in Yihaodian and higher in Jingdong Mall. Jingdong Mall

provides more consumer goods for male, so male consumers

spend more money. In terms of the category, e-commerce

businesses generally spend much on mom & baby products.

All e-commerce businesses deal with milk powder. In terms

of food, there’s no great difference among mainstream

e-commerce businesses.

In terms of the amount in the overall purchasing situation

concerning Chinese consumers, if a consumer in Beijing,

Shanghai, Guangzhou, or Chengdu spends RMB 100 Yuan

on on-line products, RMB 55 Yuan will go to food, and the

converted percentage is 36% in county-level cities and

counties. Today’s Beijing, Shanghai, Guangzhou and Chengdu

are possibly tomorrow’s prefecture-level or county-level

cities. In terms of the proportion of different categories

in e-commerce channels (figure 10), food and beverages

account for 1.6%, which is far below the average in the market.

That is because many canned and bottled products are not

suitable for e-commerce channels, and for such products,

the mainstream channels are supermarkets, convenience

stores, or grocery stores. It is very interesting that food sold

via e-commerce channels is dominated by cat food and dog

food, with the former accounting for 16% and the latter 20%.

Although cat food and dog food are not for people, they are in

the category that grows the fastest in e-commerce channels.

They are heavy and the consumers have cultivated habitual

To briefly sum up, the primary point in understanding the

Chinese market is that we must find out core benefits from

different opportunities, and these core benefits may drive

the growth in consumption. The second point is related to

product testing. That is to say, we should understand the

testing concerning the net growth rate of the products in the

market. We must raise the production standard to satisfy the

consumers’ high requirements. At the same time, we need to

avoid copying the parent brand, and must figure out how new

products can find new consumers, new application occasions

and new categories, so as to unceasingly increase the growth

rate. The third point is related to the category extension:

how to use the influence of the parent brand to increase the

differentiation, and lift the opportunity of product success.

The last point is very important. That is to say, we must highly

highlight the core benefits of the new products, make the

packaging differentiation very obvious, at least provide

enough support for some category extensions or inter-

product extensions, and guarantee that the products truly

satisfy the consumers’ needs and the products can be spotted

and understood by consumers.

How are innovat ion oppor tunit ies or development

opportunities brought by e-commerce? In the Chinese FMCG

environment (figure 8), more than100 F&B categories in

relation to e-commerce only accounted for 3.3% of the market

share in the previous year, and the share is lower in terms of

food. Such products are small and light, so they are suitable

for e-commerce marketing. However, the compound annual

growth rate is up to 34%, which indicates that the entire

e-commerce sharply develops.


Now, more and more manufacturers are make innovations via

e-commerce channels, for example, trial use. Like Yihaodian

and Jingdong Mall, the consumers can use the products by

only paying a small amount of money or only giving feedbacks

(without payment). Trial use is a very good channel to attract

new consumers and obtain their feedbacks. It is interesting

that this year Mizone which has the highest CRP growth

launched a sister product named Suiyue, but it announced

that the product would exit from the market two weeks ago.

The product is not sold in other places. In Jingdong Mall,

the sales are very small, and Mizone aims to test the market

response and obtain consumers’ feedbacks via Jingdong.

Consumers should note that e-commerce channels are very

good choices when they select new products. “Ariel” is a high-

end minority detergent brand launched by P&G. P&G releases

foreign new products to China via e-commerce channels for

customers’ trial use, and in detail tells consumers how to use

these products via videos or other ways.

As the market growth slows down, growth opportunities will

be more and more precious, and the precious opportunities

also reflect various consumer shifts. In cities at lower

tiers, the high-end orientation of products, digital mobile

communication, e-commerce, and Chinese brand marketing

ideas are constantly promoting the market shift. In terms of

product innovation, we should bear three points in mind.

Firstly, make clear how to satisfy consumers’ core benefits

and how new growth strategies actually promote products.

(Figure 10)

purchasing. They are followed by milk powder, butter and

other milk materials and dietary supplements, which account

for 4%. As the market develops, e-commerce channels will be

dominant in the F&B industry.

Secondly, differentiate new products from previous products.

Thirdly, e-commerce channels will become mainstream

channels in the FMCG market and food and beverages will

become a key battle for e-commerce development, so we

must actively use the new channels to communicate with

consumers, and perform trial launching of new products, so as

to obtain more successful opportunities after the launch.


With Respect to Cross-Border Competition, Opportunities and Challenges Coexist

Adam Xu, Partner, Strategy&

“Pharmaceutical enterprises’ cross-industry mining of consumption awareness; new inspirations from the Internet + cross-industry; Do tyrant groups start engaging in food? I am confused.”

Strategy& is a business established by PwC by way of

acquiring Booz & Company. I am a strategic consulting partner

of the F&B industry and retail industry. My topic is about new

entrants. Will non-F&B businesses entering the industry for the

purpose of testing bring threats or opportunities to traditional

F&B businesses? They are like “barbarians at the gate” and

strangers knocking at your door.

Changes in China are not strange at all. There are several

factors based on the market viewpoint.

The first factor is the change in consumer generations, which

is a long-term change in consumers. Post-1980 and post-1990

consumers are dominant in the market, and most of them are

the only child in their families, so they have different values

towards their families and themselves. As the education

level increases, most of them are knowledge-based young

consumers. They have come into contact with the Internet

and stayed alone since childhood. All these elements result in

leap-type changes in China. Generation changes also happen

in foreign countries. The new Chinese consumer crowds (Figure 1)

Plenary Session

arising from centralization of social value, technical level

and income level lead to fast changes in product categories.

So to speak, a task that needs 30 years in foreign countries

only needs 5 years in China, and the F&B industry is an

obvious example. The second factor is the sharp change in

channels. In regards to fast-moving beverages, the business

expansion of convenience stores dominates. In previous years,

foreign channels fast expanded in China, but now, a sudden

stop comes, and Wal-Mart, Tesco and Carrefour are facing

tremendous adjustments. Under this background, both capital

companies and domestic groups are quickly expanding the

convenient store channel. Thirdly, as a very practical and

easily-contacted channel, e-commerce develops fast in the

U.S. and China. E-commerce does not cause great influences

in Southeast Asia and Hong Kong. In China, delivery and

payment are very convenient, which represent leapfrog

development. E-commerce in China is different from that in

the U.S. The former is the labor-intensive, having the delivery

service level higher than that in the U.S. In addition, the

traditional retail channel is developing in China, which makes

e-commerce play a more significant role in people’s life.

Many non-traditional F&B businesses have entered the

industry. According to figure 1, among listed companies in the

capital market, about 20 non-F&B groups made investments

or performed acquisitions in more than two years, and the

total capital involved was RMB 2.1 billion Yuan, with the

exception of companies not listed. Large media has also

entered the food industry. According to preliminary statistics,

the number is sharply rising. In particular, in 2013 and 2014,

many brands suffered hardships, and the situation was like

“besieging a city”. At that time, many companies wanted to

enter the industry, 7, 9, and 5. The phenomenon is explained

only based on data.


What are the three types of new entrants? As shown in figure 2,

the first type is related to health and medicine. Pharmaceutical

enterprises, especially Chinese TCM companies, have entered

the F&B industry, mainly engaging in healthy and functional

products. For example, the success in toothpaste achieved

by Yunnan Baiyao can be called a miracle, which makes P&G

and Colgate confused. It was ranked in the top three in 2014,

and now is also engaging in healthy food. JZJT launched the

Hougu Crisp Biscuits. As pharmaceutical enterprises, JZJT, DEEJ

and Taiji Group focus more on Chinese patent medicine and

integrate components of Chinese patent medicine into food

and beverages. The second type involves “capital intensive

large groups” which previously did not have any connection

with the industry. Sinopec has launched a lycium barbarum

beverage by mainly using the “Ejoy” channel, and Evergrande

Group engaged in high-end water last year. These companies

are very large groups, and they are strong in size and capital

capabilities. The third type is the Internet + put forward by the

government. Internet or hi-tech companies in the food field

do not engage in traditional fast-moving food, but focus more

on agriculture products and some other products similar to

upstream products. These companies include Lenovo’s new

subsidiary, 360, LeTV, Netease, Jingdong Mall, etc.

Now, I share some examples relating to the three new types.

The first type is related to healthy food of pharmaceutical

companies. In 2010, some pharmaceutical companies,

including HPGC, started to engage in healthy food. In the

personal care sector, Yunnan Baiyao has achieved great

success (figure 3). It was founded in 1971 and firstly engaged

in finished TCM products. In 2005, it started to engage in

toothpaste and produce high-end Yunnan Baiyao toothpaste

which sells at the price higher than that of other toothpaste

in the market. According to the latest data, its Business

(Figure 2)

Division of Healthy Products has reached the scale of nearly

2.7 billion, which accounts for 10%-15% of its business. The

most important question is-“can similar enterprises achieve

such extraordinary success after they enter the F&B industry?”

Yunnan Baiyao has a subsidiary specializing in tea, and it

recently launched “Yiguanqing”. Yunnan Baiyao’s products

are mainly applied on the body surface, not associated with

food. In my opinion, Yunnan Baiyao has its own brand idea,

and what’s more important is that its persistent entry point

is the understanding of Chinese consumers’ true pain spots

and needs. Its core entry point is: Chinese food is very oily,

and many people are running to reduce fat, so it launched

functional drinks. At present, it has laid out a network of its

sales channels. We cannot predict whether such product will

be successful. We only know that new products launched

in the Chinese market, especially high-end products, have a

higher success rate than new products in foreign markets.

(Figure 3)

JZJT is also an old brand founded in 1969 (figure 4). It is a

state-owned pharmaceutical company, engaging in original

medicine, bio-pharmaceuticals, etc. In fact, it entered the

sector of healthy food in 2009, and has been reorganized

into three business divisions. Later, it focused on factors for

which Chinese people’s sub-consciousness or custom has

a resonance. It sells Hougu products, and drinks made of

blueberry, lycium barbarum, etc. at the price higher than

that of fast moving products of the same category. Hougu

e-commerce and large supermarkets have been started.

Data shows that such category is ranked 1st on Tmall. There’s

another product that we pay much attention to. It is Wong Lo

Kat which has successively realized the sales revenue of RMB

10 billion Yuan and RMB 30 billion Yuan, and has surprised

Coca-Cola’s global CEO. Such miracle has not emerged in the

food industry. Can JZJT turn Hougu into a new category? Let’s

wait and see. The above is a new entrant of JZJT.


(Figure 4)

(Figure 5)

(Figure 6)

To sum up, the first type is related to pharmaceutical

companies, in particular TCM companies. They make healthy

and functional products by referring to these ideas. It is just

a trend. What’s more important is the true understanding

of Chinese people’s needs for health. There was a joke ten

years ago, which goes, the people who research and develop

Chinese products are white people, so foreigners cannot

figure out why Chinese people need skin whitening. It is a very

important advantage of Chinese enterprises that things which

Chinese people can understand well are not understandable

for companies far outside the market.. The second type

These enterprises mainly target Chinese people. They focus

less innovation than extraction. They extract the health ideas

and plans in Chinese people’s mind. However, all the original

plans are very inconvenient. This is the spirit of modern FMCG.

Logically, it is an entry mode that worth our consideration.

DEEJ is also engaged in healthcare products (figure 5). It takes

donkey-hide gelatin as the raw material. It firstly engaged in

medicine, and later some convenient food for daily life, and

now has started to engage in FMCG. It has invested RMB 100

million Yuan in the upstream manufacturing field, and also

acquired some food companies. Preliminary data shows that

it has grown by 21% in 2011, and it has now realized the sales

of RMB 300 million Yuan - RMB 400 million Yuan. It is another

enterprise engaging in traditional healthcare products and

focusing on the concept of donkey-hide gelatin.

is related to large real estate companies and large group

companies that are entering the F&B industry. Representative

examples are Star River and Sinopec. The former begun to

engage in wine in 2011, and the latter firstly launched lycium

barbarum beverages in convenience stores of its filling

stations in 2013, and then started to arrange products in other

places. In addition, Evergrande suddenly announced that it

would engage in high-end water two hours before the FIFA

Club World Cup, and put on numerous media advertisements.

Now, it plans to enter the field of dairy products.

Founded in 1997, Evergrande is a real estate company listed

in Hong Kong. It is the second largest real estate company in

China. In 2013, it started to engage in high-end water, and

realized the sales of RMB 1.1 billion Yuan in 2014. It fast grows,

but has suffered huge losses. It has suffered a total loss of RMB

2.4 billion Yuan. It is said that Evergrande is selling products

which bear high fixed prices at discounts. So to speak, it loses

too early, because once the scale is established, the cost of

water will reduce. At least, its “high spike from high set” is a

fact.

Sinopec is one of the two largest petroleum companies in

China. It launched the “Ejoy” convenience store in 2009 in

filling stations (figure 6). In 2013, a subsidiary in Ningxia

made a beverage by using the local specialty product-

lycium barbarum. The beverage was firstly popularized in

Ejoy convenience stores and then entered main channels.

The product, which is named Qijin, is looking forward to

actual sales. Several years ago, PepsiCo made a beverage

of the lycium barbarum taste. The health value of lycium

barbarum has been detected for a long time, but there’s no

successful case of turning it into FMCG. This is a new try; a new

orientation is set; it has its own channel advantages.


Which are these enterprises’ capabilities and advantages?

The entry in the FMCG field without any help is a local tyrant

form. They put success aside and aim to make a mess. Driven

by capital, a number of local tyrants suddenly emerge in the

channel and marketing. They occupy the advertising time and

reduce the channel investment, thus making our operation

more difficult. If this is competition, it should be disorderly

competition.

The third type is related to the hottest Internet +. Jingdong

Mall announced that it would engage in rice in 2011. In

fact, there are not many rice brands, but it wants to engage

in Internet rice. Lenovo established an all-new subsidiary

to engage in fruits. In 2014, some other listed Internet

companies followed the trend and entered the field, including

LeTV and Qihoo. It is interesting that Lenovo has established

a subsidiary named Joyvio. The subsidiary has found an entry

point which is fruit, including blueberry and honey peach.

It puts forward a farmland-desktop idea, and focuses on

modern agriculture. It has made a series of investments in

modern agriculture. In 2014, it acquired 60% of the Chinese

new agriculture. Its core practice, especially that adopted by

Joyvio, is direct purchasing and control of farmland which is in

connection with fruit, such as blueberry and honey peach as

well as tea. The most important point is the whole industrial

chain, viz., the upstream production industry chain. At

present, all things are associated with the Internet. Goods are

sold and delivered via the Internet, which forms a value chain.

These agricultural products are fresher, customers can obtain

more benefits, and higher profits will be provided. Take walnut

as an example, some Internet brands have fully demonstrated

this point. They also engage in integration of the product

chain and fruit, with the country of origin including not only

China, but also South America. What comes second is the food

safety. The food safety should be traceable. As to the so-called

“cloud farmland”, the consumers may directly pay attention

to the entire process. A new consumption idea has been put

forward. In terms of milk powder, we can see that the people

have low confidence in the raw materials of much Chinese

food. Once a company gets the first-hand country of origin, it

will form huge competitiveness in the market.

The product totally agrees with needs of the middle class and

their concern about safety. In addition, it is more “Internet-

based” and will be directly delivered to the consumer. This

is the retail in the fruit industry. People will think that it is

far from the traditional FMCG. In fact, it is also related to

beverages and dry blueberry in the product line. These

products can be sold on the same platform, which is a new

phenomenon. Figure 7 shows the LeTV hairy crabs. LeTV

relies more on the Internet platform that is previously not

associated with food, and has the flow advantages. It creates

front-end brands and has products sold to consumers by the

back end. The hairy crabs made by LeTV have aroused people’s

attention. LeTV makes its products by using its own flow and

the direct purchasing from the country of origin. In the age of

Internet, every thing is an attempt, and the success rate has

been described above.

(Figure 7)

In my opinion, pharmaceutical companies pose great threats,

in particular, TCM companies. It is unnecessary to create the

consumers’ cognition, but it is necessary to tap into it. If the

threat level is 1-5, it should be 3-4. These companies have their

disadvantages, and they need to learn marketing and channel

management. The core of capital intensive companies is

capital. Some companies have channels, but they are making

a mess. In fact, a majority of Internet + companies are making

attempts, and what are brought to them are not threats but

inspirations. Doing business on the Internet is not selling

goods via the Internet, but represents E-commerce, a channel,

a new business mode, and emergency of a new Internet-based

business mode. Words such as Taobrand and C2B are new. As

to the fact that large companies, for example, Lenovo, turn to

engage in fruit, are there matters concerning reorganization

of the value chain worth learning and trying?

Finally, we consider that the point of difference in nowadays

market competition may lie in technology, channel, HR, or

channel management. We can obtain IP protection by way


of R&D. In the future, competition will be very fierce and will

change fast. In regards to Chinese people’s ideas, the central

point should be unchanged, namely, we create our core

competitiveness based on our practical situations. For both

new entrants and F&B enterprises, what are your competition

modes? Do you rely on the industrial chain price or do you

focus on creation of new categories? At the time when the

concept and consumption experience of Internet upstream

services have been transferred from one-way shelves to offline

platforms, and at any other moments, what’s more important

is the capability system you use to coordinate creating your

right to win. With regard to new entrants, some are very clear

but some are unclear. It is hard to say whether they can make

success. Based on the current situation, the capital intensive

enterprises’ right to win should be subjected to research

and analysis. In terms of pharmaceutical companies, TCM

enterprises are very bright in the industry, and there are some

successful cases.


Finding the White Space of Food and Beverages in a Cluttered Market

Lynn Xu, VP of Innovation Practices, Nielsen Greater China

“When”, “why” and “where”

The FMCG (fast moving consumer goods) industry owns quite

advanced experience in the field of consumer market research.

Will U&A tell you about the current market trend? The present

trend can only give you the current growth. If you want to get

growth in the future, you have to learn about the emerging

trend and potential trend in the consumer market.

From the perspective of consumers, where are our products

and competitors playing today? On what kind of conditions

will consumers choose our products or other products? How

can I compete with other big players? Where are the pockets

of opportunities? Are the white spaces are large enough to

bring my products in? What is the innovation direction? When

all these questions are blended together, the question will

become how to make the business grow on exactly! (Figure 1)

(Figure 1)

Traditional Supply-based pattern is to produce products

and push them to consumers or to introduce some foreign

products that can be brought to China, which has been

very useful over the past many years. But today, the whole

market for fast-moving consumer goods has resembled that

of the developed countries no matter from the perspective

of a consumer or our monitoring data. Therefore, under this

situation, what is more important for us is how to compete to

have our products consumed instead of the others.

So today we will use a Demand-driven model. That is, we

should find out what the demand of the market is first and

then determine the product. Customization is one of the most

typical demand-driven models. Why do we have to look for

such a change? We can imagine what kind of problems you

will face in the context of the Supply-based model? Somebody

has set this keynote! If this product is sold at RMB 10 Yuan in

the market and when I want to enter into the market, if I sell at

RMB 5 Yuan, I am competing with the other in the price; if at

RMB 10 Yuan, I have to persuade consumers why they should

buy my products instead of others; if I want to sell at RMB 15

Yuan, then the task will be more challenging and difficult.

However, for the demand-driven model, you are the first Blue

Ocean, and there are two ice cream-related examples. One is

about Haagen-Dazs and the other is about Magnum. In those

days when Haagen-Dazs entered in China, you can imagine

how many Chinese consumers could afford such a small ice

cream worth RMB 30 Yuan ten years ago. Therefore, Haagen-

Dazs opened stores and made people feel how it was different

from others through catering services in those years. Later,

the market was educated and the ice cream was put into the

supermarket for promotion. At that time, if Haagen-Dazs was

directly put into the supermarket, it could not compete with

the product only worth 1/10 of itself, so this kind of method

is adopted. Magnum has a rather large name in types of ice

cream and one store has been opened recently in K11, and

the selling point lies in that you can make the ice cream you

want to eat, which is just in reverse with Haagen-Dazs. It is

exactly because of this that its price is set at three times of

that of products in the market now. By this method, it makes

consumers willingly pay the triple price to buy the ice cream

Plenary Session


(Figure 2)

in restaurants and helps promote the level of its brand wholly.

Therefore, the mentioned Haagen-Dazs and Magnum just

open their own market through their own way.

This is the demand space. First, you should consider what

kind of products can satisfy his demand from what kind

of consumer demand perspectives and this demand must

be effective. Second, you must get the growth no matter

what kind of products you sell, which must be started from

the consumer demand to find out the advantages, defects,

packaging and selling point. Third, it’s the marketing methods.

You should predict the image of the brand in the heart of

consumers after 10 or 5 years. With such a plan, you can work

hard along this way. Finally, the key is how to implement

and how to truly move the group of consumers that I want

to move and communicate with. Let’s take a real example,

cookie. This kind of cookie is made in three countries and

the data from three countries is combined together, not only

including that from China. In the global market, the cookie

is quite popular, but its per capita consumption is really

low; from the market monitoring, the cookie has been the

extremely hard category over the past years. Under such

circumstances, other categories may face the same situation

as the cookie does soon: the per capita consumption is very

low and becomes lower and lower. How can people solve this

problem? In the traditional sense, how to attract consumers?

How to turn to the high-end orientation? The concept of food

& beverage makers is: as the amount of food and beverages

that consumers have every day is very limited, the growth in

this amount will not be changed finally if we consider making

consumers eat or drink more. We should think in a different

way, from the data about consumers, where consumers

buy products and how to change consumers’ minds when

consumers want to consume another category: Eating a

cookie to replace another category will be nice. Let’s take

another example, the afternoon tea. Matching the tea, cookie

and dessert together is evolved gradually in the market, just

like a pair. How to find the product pairs? Actually, it is from

consumers instead of our imagination. (Figure 2)

We should know how much this market is when finding out

the demand space, because it may be not worthwhile if it

is too small. The first question that the customer may ask

us: how many opportunities do we get? For the instance of

the cookie case, if one more reason for consumers to buy

this category is provided, you will get the market worth US$

5.5 billion, but nobody can get the entire market of course.

However, we can know which takes a larger share in we make

comparisons. Our calculation, even though this category is

not involved, will also be figured out from other data sources,

and the comprehensive factors will make us understand this

field is not large enough, so only US$ 5.5 billion is involved

in this field, and it is really nice if only 5% is obtained. Back

to the cookie case, the research on consumers explains why

consumers choose or not choose this kind of category today.

For the cookie case, “when”, “why” and “where” explain 84%

of the reasons and 100% if six are added up, so it is really an

extreme case. (Figure 3)

(Figure 3)


(Figure 4)

(Figure 5)

Then in the whole market, how much space is there on earth?

Let’s take the space as an example. For instance, consumers

usually buy things in the daytime, and the night will be an

opportunity; is that a chance to convert other categories he

eats at night into my categories? Therefore, what we should

answer is what we should do in the field of the whole night

consumption. First, how much is this space? For example,

the occasion that the night markets of China, India and Brazil

After designing this model, we should imagine the filed we

want to enter, what the demand of consumers is and how

to realize it. This model is usually “at home or in the room”

“on our own” “in the last few hours”. For the products eaten

at night compared with other products in the market, will

consumers spend more money or little? The “109” in Figure 5

means consumers prefer to spend more at this moment and

“100” means consumers want to eat or drink some cheap food

or beverage on this occasion. After learning about these, we

can judge what kind of products will compete with ours at

this moment, thus looking for the feedback from consumers.

If we come to what we should do, for it is the “cookie” at this

moment, we can figure out how to promote the image of the

cookie through efforts to make consumers think that they can

buy this cookie at this moment.

By these, several questions in the traditional market can be

answered: what kinds of products are needed and how to

package the products? For example, the family-oriented

consumption needs large packaging, but at this moment, the

office worker needs comfortable packaging. All elements can

be taken out according to the consumer demand.

The above things are actually at the forefront of the whole

innovation process. Two or three years ago, we conducted

a survey (Figure 6) together with over 100 large companies

Through a lot of data analysis and model analysis, all of the

demand spaces can be found. There are four color blocks on

this figure. First, from the perspective of consumer demand,

what are his main demands for eating this cookie category?

They can be classified into four categories, such as “self-

enjoyment and indulging enjoyment”, “replenishing energy to

make myself feel young and energetic”, “eat or drink something

with the person I like/my client” and “I’m hungry and thirsty,

so I need to replenish the energy”. Under these four blocks,

there are two demand spaces, two consumer spaces defined

by consumers, the first is: you feel hungry (why) in the midst

of work in the morning. From the perspective of time (when),

one is the daytime and the other is the night. Look at the small

signs on the left, and many of them are finished on the road

and this is usually done at home (where); different demand

spaces of the market on this figure are classified from several

most important situations. From outside, we can see ME or

WE. For example, “self-enjoyment” is your interaction with

yourself more; there are me and we on the right. This figure

mainly shows the demand situation that consumers consume

cookies. (Figure 4)

account for all consumption we research is 9% for China, 11%

for India and 12% for Brazil. What is this exactly? I’m really tired

after I work at night, so now I will have a good rest to relax

myself and award myself; or “I’m hungry after working too

late, so I need a little extra meal”. Under such circumstances,

what consumers eat now are mainly the chocolate, sugar and

puffed food.


(Figure 6)

and found a very interesting point that one of the important

features of those companies successful in the innovative

products, with large enough innovation size and having

promotion in the growth was that they would prefer to spend

more time on the work in the early stage, while most of

today’s enterprises put their energy on the work in the middle

stage and last stage. It will be OK if they are the Red Ocean

products; but if they are the Blue Ocean products, especially

the cross-industry products you can only make them become

the products satisfying the consumer psychology and in line

with the future emerging trend after doing quite a lot of work

in the early stage actually.

R&D Sub - Forum

Innovation Strategies to Accelerate Growth

Consumer-inspired Innovation: The Source of Success

Strategic Holistic Product Design

A Happy Egg Story – Love, revolution and a hen named Freeda

Globalization and Localization

Structural Packaging - Innovative Beverage Concepts

Can Packaging Innovation

The Age of Disruption, Clustering the Global Trends

R&D Innovation Creating an Infinite Future

Bringing Ideas to Life - How to Support the Young

Cultured beef: An alternative to livestock beef

Transformation Journey of PepsiCo


Innovation Strategies to Accelerate Growth

Valerio Nannini, Senior Vice President, Head of Strategies and Performance, Nestle

“The spirit of innovation is much important than innovative action.”

What are the key things a company needs to do if it wants to stay ahead of the game? I

would like to give you the perspective and please keep in mind that something we are

always doing day in and day out inside our company. A lot of these things could be really

used and applied to day-to-day job, so we are trying to be very practical. Every company

and every organization, no matter whether you are a university, a starter, or a big company,

should bear in mind clearly that the details and the people are what matters. All could be

very practical suppose you could have the right people to make these things happen.

Nestle has more than 2,000 product categories, so we have 2,000 different brand

personalities, which are worth of your thinking, because the brands are people. We sell 1

billion Nestle products every day in the world and we achieved 91.6 billion Francs last year

with a growth of 4.5%. However, I don’t know how to classify China at this point of time

because it has both qualifications. Is it a developing or developed market? We saw how

things are changing in tier 1, tier 2 and tier 3 cities. There are different ways of growth with

a lot of challenges that we have in front of us and a lot of opportunities.

Innovation is our DNA. Innovation is not purely about products, but also about different

aspects of the company. You may know very well that one of the most special coffees of

Nestle is Nespresso, because it opened up a new door to look at the coffee consumption in

a capsule and delivered a constant quality on and off all the time at home.

R&D Sub-forum


(Figure 1)

When you look at food and beverage, or when you look at nutrient, how the whole journey

has started? (Figure 1)

First of all, we have an issue in the world of food supply. It’s about survival, hunger, and

having the energy to be able to make it happen. How important the agricultural peace in

the overall supply of food is and how important research is in that area!

Then it is the biotechnology when we start to look into the food security element, and that

is where you enter the food and nutrition supply element and preservation technology.

Can you transform it and make it more stable? I think we’ve heard about it. You can not

transform fresh milk. Therefore, you have to dry it to create milk powder, so that you can

move it around the world.

Furthermore, as a global player, we should come more specific. We started looking into food

pleasure, which refers to where you are having elements of taste, aroma and variety. This

engages in food science and technology because there are lots of different components.

Then, you start moving to what we call health and disease prevention area, and that’s

where I think the element of health and wellbeing needs to come in. Chinese attach great

importance to the healthcare of traditional Chinese medicine and use a lot of antioxidants

and good things for your brain, digestion health, and energy level. In fact, every country

concerns a lot for the nutrients.

Finally, you can go all the way to have management, which is the disease management.

Nestle has done a lot of work in health science. Food and beverage industry is a very

complicated matrix, which is made of very different steps and which has many different

things to be done. I see China having a bigger revolution after a few of food crises

taken place. We learn a lot by working in this country and learn how important health


management is, which is why our overall vision has been constantly the one to be the

nutrition and health company.

What is innovation?

It is the most abused word in today’s world. If you look into the dictionary, the board report

of many companies, probably innovation is repeated for 50 times or even more. It is abused

and many times misunderstood. Sometimes it is a good word to use. My simple definition

for “Innovation” is where Business and Creativity meets to generate new “Value”. Innovation

is an action. Having the idea is not an innovation. Making the idea sound concrete and

making it happen, either for a company to have benefit from manufacturing, or for people

who want to improve conditions in the world, is the innovation. The Silicon Valley is a place

for a lot of creativities to happen. It is made by two people, namely, it is made by people

who want to change the world and those who have very clear mission — they want to

improve it and they want to make it a better place; and people who want to make money.

The condition is to gather these two elements to make things happen. Innovation for me

is new ideas and new elements that come together with a mean you could create value for

certain purpose.

Why innovation is important? What you need to do and how you make it happen? Why do

you have to connect all those points to see a clear picture?

It is a very important thing that innovation is a passion from the heart. So why? Why is it?

I think a lot of better places than here can tell you why. We heard yesterday how short the

products stay in the shelf, and how shortly the things are happening. Different business

models are coming into play. E-commerce shortens the period to launch a product. When

speaking of the market, there are more and more competitions not coming from normally

big companies, but small companies - the startups. Some of your big success like Alibaba

which was established a few years ago and now is huge, so things can change dramatically

because of that. If you don’t make any innovation, your business would certainly meet a

dead end, but if you ever try to go fast in the car, it is also dangerous. However, opportunity

hides in sudden danger. Where is the hidden opportunity in this fast moving world.

More and more technologies are coming from US. It is called VUCA world, which is used

more and more in management schools to define the world where we live in. It is a very

volatile, ambiguous, very uncertain, and at the same time very complicated world. But I

don’t think you need to be afraid, because what you need is called VUCA answers – Vision,

Understanding, Clarity, and Agility.

When you are in a very disrupted and uncertain environment, you need to have a very clear

vision and a very clear understanding of how you are going to get there, and you need to

be very clear as you need to explain this to your people. You need to be very clear of how to

do it. Moreover, agility is a very important qualification that you need to have. Does Nestle

have a vision? Yes, we have. Do we understand how do we go there? Yes. Are we agile?

The answer is no, because we are so big. Probably we are not agile enough now. The fast-


moving environment is very normal. Many enterprises are struggling in the fast-moving

environment. But I think you are quicker to learn to work in this stuff, that’s why I believe

China will have a big role to play in the future. China will really make a big job in the future.

How do you stay ahead of the game? We talked about “leading supply, driving supply”,

which was a past. To be certain of the past you are still able to do innovation. Huge changes

have taken place in the world, one of which is to build expectation of the customers. This

involves in how do you predict, how do you stay ahead, and how do you have foresight to

understand what people are going to do.

How do you read information from the Internet and how can you work on it? There is a

research on how to read your brain and see your motions. We have to drive the market,

create brand experience, motivate the relation with customers, significance and feelings

of customers. There shall be comprehensive innovation - in addition to product and

technology, it’s also very much about how you innovate the company, the new marketing

and the new sales structure.

There is a new change happened to the value chain, which is the cooperation from end to

end, such as from farm to fork. It covers everything. There are big gaps between new and

old modes, which require big jumps. Now, indirect innovation no longer works. It requires

the company to come up with one big move. What is it?

In 2012, a survey was done to rate the innovation capability of companies from external.

Innovation is not only purely a nice word here. If you don’t have that kind of capability,

you will be left behind. What do you need to do? You need to do three very simple things

though we know that the consequences can be very risky and uncertain.

First of all, strengthening the foundation before acceleration (Figure 2);

Secondly, building innovation capability and becoming an entrepreneur (Figure 3);

And thirdly, creating new business opportunities (Figure 4).

Speaking of innovation framework, we normally start with what we call why. Why I am

here as a company? Why do I need innovation? The second part starts with what. What is

my business strategy? What is my goal for agenda and how to make it happen? What is my

innovation? Next, is it the product? Is it the business mode? Is it other things? How do you

cross the way and finally what culture do you need to have? What things can you get for

people? How do you make it happen?

Just give you an example about all Western models. I am sure you can make here in China

the same thing. It is Amazon. Amazon is extremely clear on making the vision happening.

Lego was almost bankrupt, but the company turned around and now is a very successful

company. On mentioning management framework, you may hear about Microsoft, the

new technology and innovation tools; Google is one of the best places to work, where


innovative culture is nurtured. Look, you need to think all the elements together in an

innovative framework.

What would you need to do?

We heard about the front end, which means you try to find an idea to solve the problem;

when you get an idea, you get a concept and you will do the testing; if it was a big idea,

you need to go for it and make it happen. We talk about discovery, development and

deployment, among which the front end is the discovery part we talked about. That’s why

many companies need to move from a tactical way of doing this to a strategic way when

given so many uncertainties. The development is the way you make the things happening

to your R&D community or to other things. The first thing you need to do is to define the

problem that you need to solve. What is the job? The second part is know. How do you

know more about the problem? Do more researches and discussions. Then, ask yourself

what problems do you have? Is it a small chance or big chance? Does it make sense? At

this point, some priorities have to be arranged, since not all innovations can be done at

this moment. They normally do this in eight weeks, because in week 12 they need to meet

the investor to get money. Create means making priorities and making things that you can

show people that you can test. When you have many priorities, you can choose one of them

Second, can you make money out of it?

Third, how you make it happen? (Figure 3) If this lasts 6 weeks, 8 weeks or 12 weeks, or if

you make this happen with 3 years’ investment in the factory, I don’t think it is a good idea

after all these researches have been done in a fast-moving circle. If the consumer told you

that he wanted this product and you made him wait for 3 years, during which period the

targeted customers would change a lot — they are older and they are no longer teenagers.

So, how you go out to look for ideas is a very important thing. First of all, you can search

your company. Probably you have invented the same thing three years ago and you didn’t

make it happen because somebody obstructed it. Maybe it is the time to go and look. We

call it “sleeping beauties” in Nestle. If there are sleeping beauties in your company, you can

make it easily happen.

(Figure 2)


Fourthly, it is about the partnership and alliance (Figure 4). Are you going to the university

to work in a specific area? Are you connected with the best of the best around the world or

around your country whoever? We have talked about the importance of the famous golden

triangle and cooperation of industry, teaching and research, but don’t ignore the startup.

The startup has people more agile who have a lot of ideas.

(Figure 3)

(Figure 4)

Today, the world is very democratic and very even. There are no big companies or small

companies. A guy with good idea can do it. So you need to be connected to those cyber

things. I don’t know how many of you have heard about “Hackathons”. Hackathon is the

way we startups get together to share, team up and make things happen in 2 days, that’s 40

hours. All people compete for ideas. The winning idea normally gets money. Idea hunting

is very important, but how you are going to make it happen is also very important. I turn to


(Figure 5)

disagree with disruption, because I think disruption is something totally new to the world.

From a scientific point of view we don’t know how to make it happen. And from consumers,

they don’t ask for it. One of the advices I will give you here is to go and understand the

startups.

We’ve talked about too many systems and tools. The processes are needed, but without

insight, and particularly without passion, it will not work. It needs us to dig understanding

and think. Innovation is not only one matrix, so it needs you to work on two matrixes —

innovation and entrepreneurship matrix. What you should do is the brain thinking, because

you need to understand how entrepreneurs think and how business modes work. So,

you need to understand the environment against scientific thinking. I think Chinese are

extremely strong in entrepreneurship. Every Chinese I know is a very good business person.

They are able to make money out of an idea. I think you need to do a bit more about

innovation access– certain tools, certain techniques, certain ways, adapting to your culture.

Some of your IT companies do very well in innovation. That’s important for food industry

too.

As shown in Figure 5, high innovation and high entrepreneurship are up there. Silicon

Valley is certainly there. Israel is up there. Israel is with constraint around them in the

money, political and other things, helping it to do well in innovation. European countries

will be in a more innovation side, but they are not with strong entrepreneurship. Up there

in the northwest, so there you have Japan, Korea, Singapore somewhere in the middle.

Singapore has put a lot of money in R&D. I think China would probably in the middle. There

are a lot of things to be done there.

The natives, digital natives we talked about are the guys 18 years below. They will change

the way we do things entirely. Actually, in the future, the machine would govern a large

part of our world. Elements like obedience, diligence and expertise are becoming less

relevant, because we can buy it and get it very quickly. However, it is a challenge to look


for people who have the initiative, the creativity and so-called passion. Those are things

you really turn to develop with the right brain. So, universities, institutions, and companies

ought to work on that area because they will become the most useful resources, which will

be needed for the new world in this new era.

Figure 6 is the diagram of a business mode that is invented by two gentlemen who find

500 respondents from the Internet. It is a mode to change the manner we conduct things.

The world is changing rapidly and you need to be ahead of the game and you need

communication. Innovation is a rather difficult and complicated thing. Therefore, you also

need to do two things, namely, to be a big truck that can deliver all the things, but at the

same time to be entrepreneurial. The big truck can go slow and steady, deliver the goods,

but, you need to be agile. Agility really matters in our business. (Figure 6)

(Figure 6)

How do you look at agility and how do you make it happen?

Pepsi and Coke are there thinking how to develop a next big thing. We have to deliver

what the shareholder and what the people want. But in the same time you need to build

a new future. As shown in Figure 7, you can see the consumer goods are productively

working on sustainability and media and publishing. How do you find the next big thing?

What products can make breakthrough? We heard about incubators, accelerators, and

other things which are going to require new setups and which require us to adapt to new

environment. The incubator shall be equipped with repeatable and scalable business

model, and the setup for market testing and learning. So how are you going to make it

happen finally?


Innovation doesn’t happen by only one person, because it happens by a team. You may

think that you need a group of people from R&D, Finance, Marketing. No, it is a group of

people with different mindsets, either the left brain or the right brain. You need to have

people thinking about new things who we call trendspotters. I can give you an example,

Richard Branson from UK is a trenspotter guy. We also need inventor and creator, people

who are able to translate thoughts into something tangible, something visible, something

you can touch, you can feel, you can smell, and you can taste. Jobs was one example. You

need people to make an outcome for the project. In that case, you need someone with

strategy, such as Bill Gates in this world. However, he may not completely stick to the

strategy, so you need an executive to make the strategy really happen. In that case you

need Buffett. This is the so-called circle for innovation, or the innovation flow as we know

(Figure 8). We need these people to team up, so that we can make it happen. The most

important thing lies in strategic coordination. If you just want to look good and innovative

in some public occasions, but shut up the innovative department as long as there is a crisis,

it will not work.

(Figure 7, Consumer Search)

(Figure 8)


It is a big change. You need to do it one after another step by step. If you have gone into the

dark room or if you bump on something on the wall during the process, don’t worry. You

just need to change the direction.

(Figure 9)

If you really want to drive innovation, you need to have the right culture. You can’t do the

same things. In other words, you need to change the way you do things and you need to

change your organization. You need to have passion and feelings. Your people are willing

to create a different world. So, it is about changing the rules of the game, which defines

4 steps you need to do in Figure 9: first of all, you should be very clear about where you

want to go. You can’t do this alone inside the company as you need cooperation, that’s

why idea hunting is very important. Look at the startups, go outside and look, go to

Israel, go to Silicon Valley, go to London, go to Singapore, because these are hot spots for

innovation. Go to universities and entrepreneurs to see where the money is and where the

entrepreneurial spirit is. Go to find where the people who want to change the world and

make money are. Finally, we find innovation is the learning journey.


Consumer-inspired Innovation:The Source of Success

Marcelo Amstalden Möller, Head of Global CMI – Innovation, Global Brands & Cider at Heineken Group B.V.

“If you don’t choose the right association or the right meaning you give to the products, then, you are damaging your brand.”

First of all, I would like to introduce myself. My name is Marcelo Amstalden Möller. I

was born in Brazil, Sao Paulo. I have been working for Heineken for three years, head of

consumer marketing for innovation, for global beer brands and global cider brands.

So, welcome to the world of Heineken.

There are three parts of the speech. First of all I will talk about Heineken, our company,

who we are, and what we are doing. Then, I will talk about the consumers, Three Consumer

Truths, and the next part I will reflect on Implications for Innovations.

Last year we celebrated 150 years of Heineken’s existence. Heineken is a family of company.

In the company, we are very active in management; we are very proud to be independent

and to be a global brewery. We have breweries in more than 70 countries. We sell our beer,

I think, almost in every country — 190 countries or so. We actually have more than 250

brands. Heineken is the icon, which carries the name of the company, the name of family,

but we also have Tiger, Indonesia Bintang Beer, and Anchor in China. We have 250 brands

around the world and more than 800,000 employees. We are No. 3 in the world and No. 1 in

Europe.

Our business priority is first of all the growth for Heineken, our icon worldwide; the

next step is consumer innovation, consumer inspired innovation. We have captured

opportunities in emerging markets with very strong presence in Africa, Asia, and Latin

America. It’s quite important for us to leverage our worldwide scale. We are a global

R&D Sub-forum


company and we need to make sure we benefit from it. Last year is a very good year for

us, because we have our profit grown, saying, growing net profit by 14%, and revenue by

3%. Driven by Heineken beer sales, Heineken has grown by 5% more last year. I know if you

are living in China you are used to double digit growth year after year, but for a 150-year-

old brand, 5% means a lot. So we are very happy to hear about it. We also had a record in

revenue from innovation. We have 1.5 billion Euros last year coming from innovation only.

Innovation is more and more important in the company. We also have other global brands

that also have fantastic growth last year.

What my team does can be split into two aspects: one is the part of creation. We make sure

we understand the consumers about what they like and what they need, based on which

we bring all these insights to the company, and we create new products, new packages,

new path to market, and new communications. Then we test it before we launch to the

market. That’s the creating part. Next, we have the improving part. We check closely what

is happening, who is drinking, why and when, all the 6 Ws. We have this in mind, and based

on that we learn how to improve the creation next time. So we create a learning machine

that every time we get better, faster, more accurate and more efficient when we use.

Next, I will discuss three consumer truths with you and their ideas about innovation,

including the creative part and improving part. We will do a lot of consumer interactions, as

well as interactions in experts in techniques, neuroscience, expertise, and online research,

from whom we get a lot of insights on consumer. I need your help actually. There are two

to three exercises. I need you to raise your hands and help me a bit.

About the first consumer truth, I will show you a very short video. Please pay attention and

focus on what’s happening. It’s very short, and after that we will explain.

Video: Python is approaching

Ok, I saw some of you jumping out from the seats, and other people feel uncomfortable.

That’s the consumer truth I want to talk about. We react faster. It is the instinct beyond

ration. You all knew this was a video. It was a snake in the video. It would never get to bite

you. It was not risky for you and it is still, but a lot of you jumped up from the chair and a

lot of you felt uncomfortable. We think we are more rational than we are. When it is related

to fear or love, a lot of things are done by instinct rather than rational thinking. This is very

important for innovation.

Second consumer truth. Ok, here we will do an exercise. So first I want you to read a picture

(Figure 1) with a lot of images and figures. I want you to count how many green squares

you see in the picture in a short time. So look for green square and tell me how many you

see. Very good, it was one square. Now the second question is how many blue triangles

have you seen. Actually we have two and they were right on the side of the green square.

The message here is that we de-list things before focusing. The brain is the organ to save

energy as longer as it can to keep energy. When I told you to look at the green square,

your brain immediately blocked anything else. Your brain saw blue triangles and say not

http://lelombrik.net/17213


important. I am looking for green square. I am saving energy for the future. So, this is very

important if you think about how we are stimulating our consumers to find our products

in a shelf or in a bar. Are they really seeing you or you are just ignored, because they are

focusing on something else? Very important consumer manner.

(Figure 1)

What is the third consumer truth? I will show you a picture (Figure 2). I am sure these might

bring you some emotions and reactions to your brain, but just keep it to yourself. If you

are from the Netherlands, you see this picture, and the most common reaction is “oh, this,

stop it, kill it. No more insects. They are gonna bite me”. Now, if you are a Brazilian guy

from Sao Paulo like I am, your reaction is a bit different. When you see these animals, your

reaction is this. You say, “Ooh, yummy, I can’t wait to eat it.” This ant is a delicacy from that

area where I was born. They fly only once a year out from underground in October and they

taste fine. So you clean them and you fry them with sauces, and it’s delicious. We wait for

so many months until ants coming out. So the third consumer truth is that in our brain all

our memories are associated and filled with emotions. But they might be very different in

different markets. For instance, the same ants in the Netherlands are regarded as disgusted

while in Brazil people may feel hungry. When you are having a global innovation or

proposition from different cultures, we have to understand what the emotion is and what

the association is.

Therefore, my three consumer truths are: the first one, we react very fast, not rationally. It

sticks to reacting to things, usually lead to fear or love. The second one is that our attention

is very focused. As a result, you see what you wanted to see. If not expected, you can ignore

it. And the third consumer truth is the emotional association. Most of our memories bring

emotions together. When we are doing innovation it has big implications for us. You might

trigger the wrong emotion, and then you are out.

Now, what are the implications for innovation? I want to start with something we called

incremental innovation. Incremental innovation is just like when you are developing

something it is likely different from your primary product. Figure 2 shows our Amstel Beer,

one of our biggest brands around the world. On the right is the alcohol-free version of it.


(Figure 2)

So you can see that they are very similar. Both have brown bottle, same color liquid, and

similar labels. The only slightly different thing you can see is the zero there.

How does this consumer truth relate to incremental innovation? First of all, there is

immediate understanding. If they know the beer and the bottle, they would understand

immediately that one with alcohol and the other not. If they love the brand they will love

this new variety; if they don’t love the brand they will ignore this one. The second one

is on the shelf they might be ignored. Why? Because they are not different enough. And

that’s why for many times people buy competitor’s brands instead of yours, because they

mix both. Or they buy wrong flavor of juice since their labels are very similar. This morning

I saw a case. Two bottles of juice have very similar label. That’s the type of incremental

innovation. And the third one is emotional burden. If you like beer, there is a chance for

alcohol-free beer; if you like Amstel, you are going to try alcohol-free beer. If you hate

alcohol-free beer, you are probably not going to try it.

What is the advantage of incremental innovation? It is much easier to make consumers

understand, which is to invest the less time and less money but make people know you.

The challenge is differentiating and you may just get small incremental volumes.

Then, the second type of innovation is disruptive innovation. This is to create something

that consumers never see before and is different from what they are used to. So I put two

examples here (Figure 3). The one on the left was the first draft beer machine we had years

ago and the one on the right is the latest one we have. It is called “sub”. We sell it in Europe

already. It’s all about drafting beer at home. There is an online platform where you can

choose 15 brands from all around the world and you can play around. It’s very different.

Consumers never saw this before and consumers usually don’t drink draft beer at home.


Nevertheless, it is a very interesting innovation. How is it related to the consumer truth?

First thing is, usually disruptive innovation has no real reaction to it. There is no passion,

love, fear or anything yet, so it is a very empty feeling. They will need a lot of thinking, a lot

of brain power to understand it. What is it? How it works? What is the benefit? So it costs a

lot of energy for consumers. The second thing is positive disruptive innovation. If you see

this machine in the shop with a Heineken brand on it, you will be curious. That’s a good

part of it. The third part is that there is no association yet, so if there is emotion, they might

relate it to Heineken, they might relate it to beer. If they have no reaction to this new thing,

you have to build association with consumers. Implication will be very powerful if you do it

right as it will create a huge market and a totally new area of growth for you. The challenge

is that it costs a lot of money and it takes a lot of time.

Then, the third type of innovation is the hybrid innovation. Hybrid refers to people

mixing two different categories of products that are not related. Colgate case is well

known in business schools. Colgate thought that we are every day in the mouth of

millions of consumers. The customers trust us that they brush their teeth and they use our

toothbrushes, our mouth water, etc. Therefore, they thought it would be more logical if

they launch ready-made meal. They did launch a whole range of ready-made spaghetti,

ready-made hamburger and ready-made everything first in the Irish market. However, it

was not very successful. Why? Let’s use the consumer truths to analyze it. The first thing is

that there was immediate response of it. People know Colgate and they are used to clean

their mouths with this brand. When Colgate launched new food, there is a bit of awkward

feeling. The second thing is they see Colgate and spaghetti, oh, what’s going on here. It

attracted attention, but the key issue they had was an association. Colgate’s association in

consumer’s mind is about cleaning and refreshing their mouth. But when you eat, that’s

the opposite feeling. When you eat, you don’t want to think about cleaning your mouth.

You want to enjoy and taste the savor. So it is very easy to admit that in the first level it

is intuitive that both go to your mouth. But actually it is not. They got emotions and the

trigger is very different. That’s why this innovation didn’t work well.

The positive side of hybrid innovation is that you can leverage the existing emotions and

knowledge of different products and combine and make that the 1+1 equals more than 2.

(Figure 3)


Radlers is a mix of beer with lemonade. We have two variants: one with 2% alcohol and

the other is alcohol free. It is launched in the market led by local brands, such as UK, Italy,

Asia, and Singapore. I think this is the biggest innovation in beer industry ever. We sold

more than 1.6 billion bottles around the world. That’s our brand. The competition followed

us closely. So now some competitors have launched similar products as well, which is

nice. That shows you are doing something right. We are very happy to hear about it. And,

the trigger here is that it attracted new consumers and new drinking occasions. If you

like beer and like drinking beer with friends, it is perfectly fine. But the challenge is here:

usually if you don’t like beer but you are with a group of people drinking beer, you feel

very awkward, and that makes you feel you are forced to drink beer because everybody

is having beer. And then you have it, but you really not enjoy it. In this case, the taste of

Radlers is slightly different from beer, but you still feel part of the group. For people who

don’t like much beer, it is fantastic replacement; if for a beer lover, they also accept this

slight beer. Look, beer can be mixed with lemonade perfectly.

Why it worked actually? First of all we built the Radlers a local brand. What we launched

was a local brand that was very strong and people love it. Second, lemon is one of the

most popular flavors in the world. We can also find lemon flavor in ice cream and other

products. So people already have great positive emotion to lemon. Consumers regard beer

the most refreshing beverage they can drink in hot summer day. It is very refreshing to

take a sip of cold beer. Beer is associated with freshness. But consumers think that lemon is

also refreshing. Think about the flavor of ice cream; lemon ice cream is the most refreshing

ice cream you can have; or you can think of soft drinks. Lemon is the choice anyone who

wants refreshing. So this combination of lemon and beer creates double refreshment,

and that’s what we claim. In every market we launch it, we claim double refreshment. It is

an automated association of both products in their minds. And that’s the reasons for the

success of this case.

(Figure 4)

But the challenge is, if you don’t choose the right association and the right meaning you

give to the products, then, you are damaging your brand. Now let me show you one more

example of hybrid. This time was one from our company. This is the first project I had when

I joined the company (Figure 4). We were preparing the launch of Radlers in 41 countries,

across all 5 regions.


I talked about three consumer truths. The first one is how fast we react to the things

instinctively, which is related to emotions usually. The second one is how much attention

and focus you need. And the third one is emotional associations. Disruptive innovation and

hybrid innovation are very powerful, but you have to understand the emotions behind it.

Otherwise you may be creating stressful consumers, and then you are out because they

won’t work.

Now, how do they relate to three types of innovation I mentioned? If you see how full the

beer is, it means it’s very good. If you see how empty the beer is, it means a big challenge.

For incremental innovation, the emotional association is very good. They know the brands.

The two challenges, one is recognition because you might be too close to the original

product. The second one is what the association to this is. If you think about disruptive

innovation, this year it’s a big challenge. What is easy there is recognition. If you are so

different, they will not consume. But there is a big work to be done in terms of creating the

right associations in their brains and make sure they understand instinctively what you are.

It takes time and money. For the hybrid innovation, it’s a bit easier in that sense. If you start

with a stronger brand equity, mother brands, or strong image of the product, recognition

usually is quite easy as well. The challenge is also in emotion. In Europe, it launched pizza

burger. They put a hamburger in the middle of two pieces of pizza. A lot of people love it.

It’s a good example of successful hybrid innovation.


Can Packaging Innovation

William Fu, Sales & Marketing Vice President, Ball Asia Pacific Limited

In China, the logistics cost is relatively expensive, so we have been focusing on lightweight;

for the aluminum can with the same capacity, we make it become 15% lighter. In recycling,

for an aluminum can, the recycled aluminum can save about 95% energy than the new

one. In some developed countries like the United States and Europe, the time for an

aluminum can to be taken away from a store shelf for consumption and sent to a store shelf

after necessary procedures are finished is two months roughly. However, in China, such

an occasion can not be realized; most of the recycled aluminum materials will be used as

materials of the al-alloy door & window, or stool and chair, or anything else. (Figure 1)

(Figure 1)

R&D Sub-forum


Ball Asia Pacific Limited (“Ball” for short) has three blocks of business totally, the aluminum

can, canned food and aerospace technology respectively, and we are the largest two-

piece aluminum can manufacturer in the world. In the past nearly 15 years, we taking the

market in the United States as an example, the two main sizes of 500 and 300 and another

mainstream size (the slimming can) account for about 70% in the market and the others

30%; there are 16 kinds of various volumes and shapes. On a global scale, the two-piece

aluminum beverage can is the fastest-growing packaging and has a lot of advantages.

From the whole kinds in 3-4 years, all three-piece tins have been changed into the two-

piece can, and this is the reason why the growth rate of the whole aluminum can market is

up to 30%. (Figure 2)

(Figure 2)

Ball is not only the number one in the market share but also the leader in innovation.

We have R&D centers in Denver in the U.S. and Bonn in Europe and experts exclusively

responsible for R&D, spraying interiorly, printing exteriorly, the cover and research on

consumers.

This is a beer called Bullet in the U.S. and its optimum temperature is 4-7℃ . It is packaged

by the aluminum can and we use a kind of temperature-variable printing ink; when it

reaches this temperature, the mountain on the package will turn from white to blue.

(Figure 3)


Apart from the beer, carbonated beverage and herbal tea, we think more and more

beverage cans will be used in other new categories of drinks. For example, we’ve made an

innovation for Budweiser (Figure 4); 36 edges are made on the can wall of the common 330

and we call it the pattern-free can. The pattern-free can will be used during the promotion

of high-end brands. Some silver papers added on the top of the can make the can different

from others; more importantly, it is really hard for others to counterfeit it.

(Figure 3)

(Figure 4)

The Heineken and Anheuser-Busch InBev beers are sold in nightclubs in most cases, but it

is dark in most nightclubs, and how to deal with the fact that many printings can hardly be

seen? We have the fluorescent printing ink which will shine in different colors in the dark

environment, making your can distinctive from others. (Figure 5)


Apart from many different patterns in shapes, volumes and printing inks, there are also

various designs on the top of the can. First, there are different colors; second, a crown or

some words created or lased or sprayed on the LOGO, can be realized.

(Figure 5)

(Figure 6)


A Happy Egg Story – Love, revolution and a hen named Freeda

Paul Williams, Creative Director, Springetts Brand Design Consultants Limited

“Make customer feel you are the product he wants in 3 seconds”

Yesterday, I looked across the skyline in Shanghai. It’s quite impressive, for probably it is

one of the most futuristic skylines I have ever seen. First, I want to come to an interesting

story, and second make sure it is a happy one, rather than anything sad. The theme is Brand

love, revolution and a hen named Freeda.

Before this story I want to tell you another story I read in Guardian newspaper: the

Xiangjiang River drops in every autumn. When it drops, all of the surrounding lakes would

be affected. Every day, hundreds of men riding little boats to pick the plant called the lotus

root. I never heard the lotus root, but I did not know what it is used for. As a show I don’t

know whether you are familiar with where it came from. It’s A Bite of China. It is probably

one of the most beautiful and fascinating food programs I’ve ever seen. It takes all of the

most motive stories from behind the people who create the ingredients, from people who

get the hardest ingredients and tell you every detail, all about emotion and love. It is such a

level of interest behind each of the stories. It almost takes something as humble as a lotus

root and turns it into something you can love in an ingredient.

Why a brand is loved or rejected in a blink of an eye. It is a good question. A famous artist

in the middle 19th century said, “One eye sees, the other feels.” I will explain that a little bit

for you. When were are looking at something, there are hundreds of cognitive connections

being made in the brain subconsciously for what we are looking at. If we are seeing color

red, all our brain is saying what the linkage is, for some people it is linkage of passion, for

R&D Sub-forum


some people it is linkage of danger, and for some people it is linkage of warmth. All of

those little details are being made without thinking about them, but by past experiences,

and past connection you have with your brain.

The real average time is three seconds and that’s how long a consumer is spending on a

FMCG at shelf and looking at your products. It is a very short period of time. People cast

three seconds on a brand, so in three seconds they will decide whether they will choose

your brand or move on to the next brand. Just work with your consultancy and reconsider

in next time when you put a few more messages on packaging. No matter you are a lawyer,

a doctor, a scientist, or a homemaker, when people standing in front of shelves, they are all

the same. We will have the same desires and needs. We are looking for something to satisfy

our hunger, quench our thirst, or feed our family. How to make consumers choose us? All of

those desires and kind of needs can be unsaid, but they have to be unsaid with emotional

metaphor. A brand isn’t a brand at all unless it has emotional metaphor behind it.

This is an illustration (Figure 1). I am going to give you 3 seconds to find the green square.

(Figure 1)

You got it? And hopefully do you see the blue circle?

It’s a very good example of if your product is sitting next to the green square, you product

can look different and be different. But if it were not what consumers looking for they will

walk straight passed. The challenge for every blue circle is to become the green square.

And I am going to show you cases today how to get to that.

There is Dr. Helen Fisher in Rutgers University highlighted three stages of love: there is lust,

attraction and attachment.

The first stage is lust, which is a moment really meaning short and less connection. We call


(Figure 2)

it “one-night stand”. It’s like brand promotion. If we only give you free sample, people will

take it. But they won’t respect it next morning.

The next stage of attraction is okay until something better comes along. We tend to deal

with brands in this level offering something functionally different, like it is fragilely, it is

freshly, it’s crisper, and with functional benefits. You are only acceptable before something

better comes along. Unfortunately those people will go with something better.

All we see the challenge and the key thing to get up to its attachment is the last emotional

connection or soul mate. That’s where you become the green square. I think it is a brand

like iPhone or Oreo. You can use any ingredient to mix the product. People would buy

ice cream because it is called Oreo. They would buy other products just because that

ingredients.

Brand love is what people always ask for. It is beyond understood and desired than

incident. We are speaking of incident, which is less than a second, so let people catch in

that second, or they move on to the next brand.

Figure 2 is a simple brand love test. There are only three things on it. Based on over 20 years

I work with team branding, if a brand is failing, it’s probably related to these three things:

firstly, it’s about being distinctive. That isn’t just about being different in color or something

else, but your difference in the category. What are you doing above that category? To stand

out. It is not good just being a category — it is just not good being a biscuit. What’s your

key difference? Secondly, grab attention. With the chart we just showed, there’s a lot you

could do to grab attention. You could do things with shape, packaging, color, messages,

and branding, but all these should be able to get impact upon exposure. And lastly,

engage. Just let yourself engage with consumers. You have to tell them a compelling story.

So, back to our happy egg story. This is where we had to create brand love!


This is another inspiring looking shelf (Figure 3). You probably agree with this — very gray

and green. Gray was caged eggs and green was free-range eggs. Noble, who is the largest

egg supplier in UK, supplies to retailers like Tesco. They came to us with a very simple brief.

In fact, it is the simplest brief I ever had in my career, only with five words, “we want an egg

brand.” And that was it. That’s why we said it was a very challenging brief. It got us excited,

because as we approached this category we realized that it was nothing there. There was

no brand doing anything. So, they needed an egg brand, and what we needed was a

revolution in that category.

This is a very simple chart (Figure 4). Charts with rich contents always confuse the

audiences. It’s simple for a reason. No.1 I dislike these charts intensely because they just

tended to add confusion to what you are trying to say. It is a great creative if you starting

from the top. Great creative comes from strategic thinking and focused strategic thinking

only comes after you got very clear category insight. It makes a very simple logic on the

triangle structure, but it is amazing how many brand owners come with: we just need

design or we just want some strategy. Without all three, you can never get to that great

creative and innovative idea. You have to get to pretty pictures on a piece of packaging. So

it is important that everything needs a foundation and very insightful category insight.

So, back to our happy egg story. It is where we started with category insight. It has

fascinated in world it turns out a world with hens and eggs. Like in China, and the UK, we

have different areas. We explored the possibility of why chicken is coming from different

areas. Can we do something with local eggs from different areas, sell different parts of UK

with different eggs? Breed was just the next thing we explored as well. It is very interesting

that chicken lay different colored eggs and different sized eggs if they are bred differently.

So we started to look into that. Did that make a difference to purchases? Feed is another

interesting talk. Hens are a very fascinated creature. What you put in one end comes out

in the other end. Take for example, if you feed the chicken protein-rich diet, you would get

(Figure 4)

(Figure 3)

Great creative comes from strategic thinking and focused strategic thinking only comes after you got very clear category insight. It makes a very simple logic on the triangle structure.


a protein-rich egg. If you feed chicken Omega 3-rich diet, you get Omega 3 egg. Good for

your heart. Therefore, we started to look at those innovations. We went through all these

researches. What we found in the end? We discovered a single key insight that related

to every egg consumer, which like a striking girl when you are trying to find something

innovative, in the category that already exists. In the UK we have a vast variety of different

categories of eggs. We have caged eggs, unbound eggs, free-range eggs, organic eggs,

and we have a lot of individual ones in between. Consumers get confused. They approach

these categories and just find they don’t know what to choose and they don’t know the

differences between organic and free range. What we discovered was the key insight that

the consumers just want the taste of the egg and they want the hens are well treated. We

sound selfish. If the egg doesn’t taste well, we won’t buy it even though the hen has been

taking care. Our key purchase’ decision is that I want the best egg. So we make it easier for

consumer to do the right thing. That was the strategic insight. We said to them, “look, we

give you the best egg. By the way, it’s come from hens. They were really well looked after.

They feel it they are doing a little bit for welfare.”

How we got to that? What is the strategy behind it?

Firstly, focus on what makes you different, not the same as everyone else. The more you

are now focused, the stronger brand it will be. This is our model what we show the brand.

Brand pyramid, brand keys, some people from Europe call brand left keys, and love keys, all

of those are different models. This is our brand eye (Figure 5). We use brand eye because it

is about the focus. You can see most are probably the propositions, values, and personality.

In the center it is the brand essence. For a happy egg story brand eye, oh, it’s becoming a

brand egg. So the proposition was the happiest hens lay the happiest eggs. Who would

ever believe that a happy hen lays tasty eggs? It was a very simple proposition. It’s only

seven words what we find in the proposition. The next chance is for diversity on the brand.

We find fives steps to achieve happiness. Usually people believe that there are functional

benefits and emotional ones. If you can combine those together and you got a real benefit

for consumers, you just make them feel happier to buy eggs (Figure 6).

(Figure 5)


(Figure 6)

The two outer parts of the egg here are the values and personality. What we find in the

brands? Especially as we move forward, this starts to become very important for brands

when consumers want a relationship with that brand. When we worked on the happy eggs,

we found the farmers who looked after the hens call them “the girls”, and it always the girls

come first. That’s the part of the project. We answer a traditional question of what came

first, the chicken or the egg? Well, in the happy eggs, what came first is the hens.

When we look into personality, brands often fall into a mistake that if we introduce the

brand with celebrities, their brand gets personality. We don’t like to do that. Personality

should be about you in the best way and you work as a brand personality. When we

talk about free range, our personality has to be engaging with any communication with

consumers. We have to start a discussion with consumers: in a great green world, we have

to be vibrant. We have to walk into the room and bring it to life. We have to light up the

room, and we have to do with a sense of fun because everybody else is serious in this

category. The soul was that the hen was happy.

Going back to the substantial five steps of happiness, this is the character we created

for the brand (Figure 7), under the name of “Freeda Rome.” This cartoon image is one

representatives of happy egg. The five steps of happiness are very important because it

runs everything into a next journey. For example, a perfect environment. A team of people

who work on the farms ought to make it the happiest place for hens, so they design

activities for the hens and some of the farmers sing to the hens. We have no scientific proof

if that lays bad eggs or not, but they seem to be happy. They also plant trees on the farm.

Everything they do is to ensure the hens are as happy as they can be.


If you work in the happy egg company, you need to be happy too. When people internally

feel good they would give something back. So “Happy Eggs” company do lots of works for

local schools and local business. They take hens to schools and show their hens. In 1970s,

the UK had an egg scare. A politician came on TV and told everybody that eggs just got

salmonella, which was fake, but it took 20 years for the industry to recover from it. Now,

“Happy Eggs” has completely overcome that problem.

So, move on to the packaging. Since we get insight and all that strategy, how this package

is designed? It is all about the motive. First of all, the brand has a name of “Happy Egg”.

We may call it the “happy egg company” or the “happy hen company”. This brand name

has all in a sudden presented the feeding policy to consumers clearly. On the other

hand, the cartoon image was deliberately naïve because we want it to look “made”, not

“manufactured”. We didn’t want to feel like mass production. It was real people involved

in this plant. The color we have on the package is all about that kind of a perfect color

of a great yolk that you can only get. Doing this project, we actually discover the prefect

cartoon color of people expected yolk, which is the color of the project. An egg from

a happy hen should be looked in this perfect yellow yolk. Besides, this brand has got a

messenger. Freeda Rome gives the brand ability to not be so serious when we are talking

about the serious stuff. So when we are talking about free range, we talk about animal

welfare, that came from our brand Freeda.

Did Freeda find love? Well, if I take you back to a gray green world, we injected a ray of

sunshine into that you can see a dramatic effect (Figure 8). It had only one category,

(Figure 7)


which should be put back to our brand test. Was it distinctive? Did we engage in a kind of

relationship? Yes, because the whole feeding process was right presented to people. So let

them feel good about buying free-range eggs, and about buying the taste.

(Figure 8)

We converted a nation of 75% caged buyers in the UK to a nation of 70% free-range buyers.

The brand got 80 million GDP in two years. We just launched in California, which is a very

interesting market. California has half of the population of the UK, but they eat twice of

many eggs. By the way, that’s not free-range hens in California. I think the interesting thing

is that in California they didn’t have any free-range qualifications, so the happy egg promise

worked globally, because it wasn’t about free range, it was about green tested happy eggs.

Consequently it shows when you get the core essence of the brand, it can be transferred

globally. They allow the brand to cross California as well as the UK..

They ask could we do it again? Do we only design egg box? Happy egg was a very

successful case that another egg company came to us. Therefore, we launched Push Buds

(Figure 9) for eggs or safe eggs. In the UK, we had a very strange habit of cutting bread

with egg. We dig into a half-boiled eggs, hence the yolk goes into the middle. There is a

piece of great news about this brand which recently raised 1 million pounds for the health

heroes’ charity. There is another egg project that hasn’t been launched because of logistics

problem! And lastly, you can innovate smartly without changing the structure, which can

be just a great idea! (Figure 9)


The Age of Disruption, Clustering the Global Trends

Sarie Moolenburgh, Client Brand Director, Cartils

Google had done a program of what words are mostly searched terms in 2014, which

shaped global trend, including hope, fear, science, fiction. We searched a thing we love and

for greatness; we searched “how to control Ebola virus” that gave our hope; we searched to

remember, to be inspired, just wonderful with “perhaps able to launch Comet”. With these

extraordinary things we are going to make discoveries.

We have to have a look at all these global sources or other trend goers to make an

alternation. A summary we made (Figure 1): this diagram is about extrovert, introvert, we

and me. In this chart we classify resources into five trends, which are initiate, collaborate,

make, explore and monitor. We look at the trends and then translate them to branding and

packaging examples. The most interesting thing is that we are doing this every year, so we

can easily have a look at what changed previously in 2013 and 2014, and we changed more

to extrovert.

R&D Sub-forum


(Figure 1)

The first one is initiate, which is all about having local initiatives and the origin. For instance,

Dublin (Figure 2), which emphasized that it was the unique dark beer brewed by a secret

formula in the 18th century, showed their local heritage. Dublin also provided limited

edition in packaging. Some local brands achieved global influence mainly through mobile

Internet, which made it possible. You can focus on your roots by redesign, or by product

category extension to underline your identity.

(Figure 2)

The second one is collaborate. It says together we can change the world, which sounds like

a Michael Jackson way. Years ago you have CSR movement. Ice bucket challenges which

went worldwide really like collaborating and motivating each other to get some money

for good causes. When you look at kickstarter, a lot of new companies and new initiatives

can be found. We translate that to brands for brand is very important to acknowledge their

role in the sustainable future. So, instead of focusing on what they are doing in normal life,

they try to have collaborations for Carlsberg and ecoXpac. This is a three-year project when

they developed a bio-degradable wood fiber bottle (Figure 3). I am really curious is this a


(Figure 3)

(Figure 4)

marketing strategy or really the case they are going to do. YOOXGEN is an Italian online

fashion retail shop. They collaborate with designers, the four top designers, and they made

really beautiful mouth masks (Figure 4). They also create welfares to give money to plant

trees in northwest China, so as to make environments better. Instead of collaborating with

companies or designers, you could also motivate your global consumers. They say you

can just bring your own bag and you can have some rice, spaghetti, what else you want

as an incentive. It is not really good for the business environment, but it is good for the

environment. There are many ways for brands to stimulate consumers to be more aware of

the environment.

This is also about sharing. Sharing is really like the future. This is a bitlock, which is a

Kickstarter project, as they want to have more convenience for consumers. Instead of

having a key, you have a code and a Bluetooth. You just open the Bluetooth to read your

code on your bicycle. Or even better you can share this code with your family and friends

who can use your bicycle. I think you have to save good friends and good family bonds.

So it is very important for a brand to make a good connection with your consumers to

establish this.

The third one is make, which is about the tools and innovation that are belonging to

everyone. Nowadays there’s a lot of expertise you can use because you can go to the

Internet to find anything you can do. You can make it yourself. It’s about stopping dreaming


and startting doing, because the tools are available. They get a lot of people together and

they share how to make websites, because they say that technology is so rapidly changing.

We need people who can make Apps and who can make websites. An example here is

called Concept 56, which got a lot of young creators and young project managers together.

They put these men in a room and ask them to make a new event. It’s called ALL Under One

Roof.

Explore is next one. It’s about discovering new means of self expression. It’s really about

the choice you made in life and the activities you do in life, which show who you are and

the sense you can express by a kind of self expression (Figure 5). One of the brands which

is calling into freedom is Heischel, which makes statements of I am very adventurous,

exploration, living in a wild site. After all it uses very simplistic and natural material. Some

brands just push the youngsters to look for their boundaries and do things you normally

don’t and go beyond the traditional values. I think Tiger with the “Uncage” campaign is a

good example of this. They claim that people should really go into their individual passion

and don’t hold back by individual, by family or traditional values.

(Figure 5)

The last one is monitor. This is a world of destruction where negative or positive things

happen, but we are looking for control. Control about this, so it is really about regaining

control of our life (Figure 6). There are a lot of companies create this kind of product for

consumers to monitor themselves, such as the bracelet of Fitbit Charge HR. How healthy

you are and how long you walked? This is about using the trend of people expecting

to better control their life. This is about doing it yourself because we don’t trust all big

companies anymore. You can find a lot of good products in local market with some

software. Tourists can use this App for better self-control.


This is really a Brazilian ad about controlling. In Brazil they have advertising that can be

torn down and wrapped around your beer bottle. After a period of time the paper turns

blue and tells you that it is the right temperature to enjoy the beer. So this is the way how

you took control it. Since people wish to reinforce the self-control, the brand can create

more control for consumers.

(Figure 6)


Structural packaging - Innovative Beverage Concepts

Cristian Stancu, Manager, Remark Studio

In 2012, we gathered together and we set up Remark Studio

with the aim of helping Romanian brands to find the big guys.

One of our first works was to develop energy drink product.

The clients were struggling with all kinds of concept, like the

energy drink market was well developed but the field was not

creative enough. Romania looked for a brand with national

affection, especially after the economic crisis that we wanted

to launch an independent energy drink for Romanians. We

investigated the market a little bit. Let’s say, the most of the

designs are the same classic shape; and most are based on

powerful contrasting colors. There was little innovation in

the material and shape. How we started it? We started it from

the idea that the naming should be as simple as possible.

Red Bull is equivalent of wake up. It should be feasible for

physical recovery, but also mental recovery. In order to be

easy memorable and favorable for consumers, naming should

be based on the thing that producing day-to-day life. That’s

how we come with Rise and Shine. We do not want a classic

Red Bull shape can, because we want something different

and ownable in terms of shape. We prefer to use different

materials, preferably more eco-friendly or highly recyclable.

Shine, the word inspires us to think of light. We need some

dynamic effect in order to transmit the benefit of the drink.

So we come to a conclusion that we have a beer container of

a bulb, close to a can but made of glass. This is the concept

(Figure 1).

(Figure 1)

R&D Sub-forum

Normally when you consume the product, the white color

should turn into gray, so that the consumers would have the

feeling that they drink up the energy. We got Pentawards in

2013. Here are some ideas we got in production: a. normally

we thought a glass should change color while you are

consuming; b. the cap can be made of aluminum to look like

a bulb. However, because of cost, we replaced the glass with

PET (white, transparent or colored) depending on the product.

The concept has multiple applications, something like

energy shots with alcohol ( 60 ml size and fluorescent color

for the PET), carbonated drinks or energy drink based on

milk derivates (whey powder and fruit juice) which are more

healthier perceived by the consumers.

About the beer, turning consumer trends into product

concept, we felt the need for a new concept based on

“less is more” principle. A concept will communicate with

consumers the main values of the product and the brand. So

beer packaging is becoming more and more complicated.

We consider 3 trends on Romanian beer market – PET and

can packaging are increasing in consumption while OOH

consumption is decreasing. We wanted to develop a product

concept that is disruptive compared with actual trends in beer

packaging design. We wanted to transmit appetite appeal,

tradition and joy of drinking beer. It should speak by itself and

have a high visual effect on the shelves. Naming, popular and

German origin of course. And this is our concept (Figure 2).


(Figure 2)

It is a can or container body should be made of PET as close

as possible to glass and with a protective structure in order

to maintain as long as possible beer taste. You know the can

should be embossed in and/or out with a depth between 2

and 3 millimeters in order to be as a classic pint glass shape -

to transmit tradition and joy of drinking beer. The label that

appears on a label should be with thermo sensitive inks in

order to announce consumer when the product is at the best

temperature for drinking - red should turn green - due to the

fact that the drink will get at a proper temperature in a longer

time compared with aluminum can. If possible a complete

cap remover would be a plus, which will turn the package

into a glass that can be reused, collect or else. The size should

be as close to a German pint proportions it does not have to

be a classic size AL beer can. Some pros for this concept: one

of them is that we are considering the cost saving, materials

and energy wise. It can eliminate logistic cost if production of

can body is in house. It can increase efficiency of advertising

investment. It can be used for brands that have been built on

values such as tradition, joy of drinking/friendship. Freshness

can be a plus if sustained by the product. It can transmit a

quality product, courage.


Globalization and Localization

Aalt Dijkhuizen, President of Topsector Agri&Food in The Netherlands;Former President & CEO of Wageningen UR (University & Research Centre)

“Please note that the leading role in this golden triangle is not a government or knowledge institute, but private industry.”

In the coming decades, we all know we will have enormous

increase in population, plus 2 to 3 billion people in next 30

to 40 years, so that’s even more than one China. That’s quite

a bit. But next to that, many people, saying 2 to 3 billion,

will increase in wealth from low income to middle income,

which places huge effect on food and food demand. It is an

enormous increase in the demand for food, especially in the

demand for high-quality protein. It is almost doubling in the

demand for vegetables, diary and meat. So when we look at

this and quantify it, it means in the next four decades we have

to produce more food than in the past 4,000 years.

Yet in China you need to import quite some foods and

in Netherlands we export 70%. The major sectors in our

country are horticulture, greenhouse, and livestock (dairy,

pork and poultry). When you look at our country, you would

characterize our system as very highly productive, because we

have limited amount of land and labor is expensive. Therefore,

(Figure 1)

R&D Sub-forum

we have to be extremely productive to survive. When you look

into the value chain in the Netherlands, farmers are the basis

for it. We have family-owned farms along history. They are able

to produce 5 times the added value of the European average.

That is what we always call the golden triangle (Figure 1), the

close cooperation between private industry, government, and

knowledge institutes. With the private industry in the system

in the lead, not the government or knowledge institute,

but private industry. A high commitment to setting targets

achieves future activities.

How do they begin the cooperation?

The labor and land cost a lot in the Netherlands. In order to

survive, private sector has to make innovation to enhance the

productivity, efficiency and quality, which bring them strong

motive for technology investment. Of course, that makes

technology more and more complicated and stimulates

enterprises to move closer to research institutions. On one

hand, the government will help private sector and research

institution build some kind of association; on the other hand,

it provides funds for some more risky fundamental research.

In early stage, many researches received 75% to 80% funds

from the government. That’s to say the company only covered

20% of research fund. When it came to outcome application,

enterprises benefited 80% and government 20%. In the

cooperation we had already settled the issue of intellectual

property right ownership. Although there were plenty modes

of ownership, we got to know that the research outcome


could be applied more easily if the private sector possessed

the ownership of intellectual property right. If the private

sector made it successfully, it would pay 1% to 10% for the

cost of patent, or for the support of new research.

I would give three examples in our sector, so not the individual

company, but our sector as a whole. It’s our sector cooperate

with China, because we have done a lot with Europeans.

However, the worldwide growth is not in Europe, because it

is in China. The first one is Sino-Europe Agric Development

Center (Figure 2), that was established officially in 2011, as

part of the longstanding relationship with Fujian Government.

It is an applied research. We think this is an excellent model to

use knowledge from everywhere around the world. This sector

is especially focusing on helping producers and industries

apply knowledge for their circumstances.

(Figure 2)

SEADC Sino-Europe Agric Development Center

The second example started from the industry. It is Sino-Dutch

Dairy Development Center (SDDDC, Figure 3), which started

one and half year ago and was announced in November

2013 with the biggest diary company in Netherlands – Royal

Friesland Campina. They have many activities in SDDDC:

firstly they do research in productivity and secondly they

improve the food industrial chain for China, helping Chinese

enterprises to better improve quality control and so on.

Actually they do training here in China with people involved

in the field and in the factories. They have expensive program

to bring Chinese to Netherlands and to the facilities in the

Netherlands, so as to get the Dutch experience as a way to

facilitate our system. They built expertise up in China to try

out for innovation and try out ideas for products. They had

publications, once again science of fundamental publication

and applies publication. And they had exposure. When

President Xi visited Netherlands, they presented SDDDC to

the President. This communication of export at the same time

built the joint research innovation in China.

(Figure 3)

In 2014, Holland Center (Figure 4) was jointly initiated with

China, which is the cooperation with agricultural and food

businesses in China rather than the government.

(Figure 4)

That is match-making. Tailor-made matchmaking. How you

find right partners? We know beforehand what companies

from Netherlands are in matchmaking and we are looking for

Chinese partners that fit them, companies from China that

have bigger chance to get a good fit. This weekend we will

have a second matchmaking this year in Beijing where best

companies are invited. For each company 5 potential partners


have been invited from China to discuss. We think the chance

of success is much bigger when you spend time on that

instead of organizing a diner or a meeting where you don’t

know beforehand who will come.

E-commerce is another commercial activity that came out of

this platform, which rapidly increases in food and beverages.

What we do together is to negotiate with the platforms in

China. They cherish the infrastructure and they will build

Holland Food Booth with Holland Center. Royal Friesland

Campina was an example of safe food and quality food. Online

retailers can build up their own Holland Center e-commerce

platform and leverage on the Holland brands to strengthen

and present Dutch agri & food products in China or promote

their own brands in the world.

To conclude, we have developed well cooperation in agri and

food industry. We certainly focus on it and very active, because

China is a big consumer market and the Netherlands is very

strong in food and agri. This is an excellent combination of the

two. And yet, we now have a long-term experience.


From "Idea" To "Products"-how PepsiCo’s global R&D organization is transforming PepsiCo’s business and driving profitable topline growth

Ellen De Brabander, Sr. Vice President Nutrition R&D, PepsiCo

“From Go-Do to Go-To”

For the next few minutes, I would like to tell you about the

transformation journey we have made in PepsiCo to help the

company’s business.

A decade ago, our innovation was really in the “Go-Do” mode.

If a product was popular, the sales and marketing teams

in PepsiCo would tell us to create a line extension of new

package or flavor. The Internet’s arrival and people everywhere

in America communicated to each other in new ways. Things

really changed. Consumers began to demand much more

from the food and beverage companies as we all aware. They

want more nutrition. They want less sugar. They want less salt,

and they want less fat. They want more relevance through

connection with the brands. In addition, they also want more

transparency. That’s when we realized that“one-size- fits-all”

strategy that really guided our success for the last decades

would not get guaranteed success for the next 50 years to

come. PepsiCo R&D knew it’s about time to fundamentally and

very practically disrupt ourselves. We have to transform our

companies, go to R&D function, make R&D drive business, and

not to be the follower anymore.

(Figure 1)

R&D Sub-forum

First, we have a great team with these new people, new

capabilities, really bringing in much more diversity. We have

PepsiCo experts from people with very diverse background

l ike agronomy, exercise physiology, endocrinology,

metabolomics and other fields. The second big change made

is about going into a new research direction. Our R&D function

that has been focused on the consumers taste and experience

in decades has now begun to focus on a lot more. We really

began to focus on the entire body. We began to study

consumers’ preference drivers like taste, aroma, texture; and

we began to pay much more attention to the visual messages

on our food packages. You must gain deeper understanding

of the importance of the convenience for the consumer. This

is really a big change in the way our R&D team had brought in

the past.

The third action that we do is to develop a new strategy. For

decades we were focusing on products, but now we also focus

on platforms. Our goal today is to do a few things very big and

very broadly. Our objective is to leverage this scale of cross

market and platforms to accelerate the accumulation time

and to leverage our existing foodprints. Next, we also created

a new structure in PepsiCo. And we used to be decentralized,

organization, and now we are a globally alliance, much more

flexible. Instead of organizing sales by geography, basically

every important country has its own R&D department

focusing on developing products for this specific country. In

our company we now are organized by categories, such as

beverages, snacks. We have centers for our snacks business in

UK, MEXICO, or SHANGHAI, and likewise for the beverage we

have people in Ireland, New York or Middle East.

The fifth action, we also expand our global R&D in footprints.

US base focuses much more on globally diverse function.


(Figure 3)

We did this by opening R&D centers of excellence across the

world, for instance, our centers of excellence in UK focus on

agro and especially the snacks. In Germany we do fruit and

vegetables. Diary we do in Russia. Bakery products we do

in Mexico. And our second biggest R&D facility outside the

US is here right in Shanghai. It is the state-of-art facility that

is dedicated to innovation for most foods and beverages.

Shanghai is a hub of new product packaging.

The final stage of our transformation is the new ways opening

up our organization. In last couple of years we really obtained

more than 50% dedicated development with specific partners

to develop the innovations for the future. Partnerships,

companies, suppliers, universities, all different ways tailored

to what we want to change. The question is, what do all

those changes at PepsiCo mean for the company and for the

consumer?

1.In our portfolio we have expanded the range, fun for your

products, better for your products, and good for your products

as shown in Figure

2. PepsiCo has these three brands. Most you see is good

for you product, accounting for more than 20% and this is

growing as we speak. Inside PepsiCo, R&D is no longer seen as

a Go-Do organization, because we are now developing it into

Go-to function. R&D is going to push the performance and

profit. With business and supply chain and we jointly set our

objectives. In other words, R&D turns into a chef from a cook.

One of our top priorities today is to migrate from products

to platforms. To do this is to develop a great platform in

one of our global chassis and then we quickly export it and

customize the brand for local taste. We call this our global

strategy. A global offering makes local relevance.

(Figure 2)

2. We leverage the technology to design the chip. We design

new three-dimensional chip using 3D printing and computer

monitoring to build our own proprietary slicer and the

patterns, and we also build the chip really customizes the

flavor to satisfy local taste. If this chip has been introduced 25

years ago, by now it had been onto the market in 2 to 3 places.

But today, only 3 years after first introduction in the US, this

hundred-billion brand is available in 25 countries, crossing the

world very quickly. Let me give you another example. From the

international field, grain oat is for good health, but oatmeal is

a burden to cook. How to make it nutritious and convenient?

There is a kind of mixed oatmeal, which contains 50% less

sugar. It only takes 3 minutes to cook the instant oatmeal. This

oatmeal can be launched to different markets immediately.

Well, another dimension of our transformation is the effort

to advance the human sustainability. PepsiCo also wishes to

advance the human sustainability with enriched food and

help people and animals live better. Our nourishment is tasty

and nutritious.

It is the biggest challenge the R&D and tradition PepsiCo really

faced. How to develop food and beverage products that offer

more nutrition, more convenience, and more quality without

sacrificing the taste? I am proud to say our scientists have

made great progress. Today, we are reducing sugar, salt and

fat content across the entire portfolio, and at the same time

we are still protecting the taste. We’ve removed more than

3,000 metric tons of sodium from total food portfolio since

2006 and really removed approximately 22,000 metric tons of

saturated fat from key global food brands between 2006 and

2012. In sugar we even removed 370,000 metric tons of sugar.

Today, it is close to 50% of beverage portfolio basing on low or

medium calorie. And by balancing the demand of consumers,

we have lowered the average number of calories for surely


more than 15%, only 65g calories for serving in each product.

We are continuing this to really take out more of the fat and

the salt and the sugar from the products.

I am ensuring you R&D in PepsiCo has been quite successful,

and the investment is going up more than 45% since 2011.

Today, we have 22 billion-dollar brands in the portfolio, and

that’s directly the result of innovation. In fact we have even

grown this number of brands by 30% since 2006. Apart

from this, we also have full range of products between 250

million and 1 billion dollars (Figure 4), all showing successful

innovation. More opportunities are offered to start partnership

and leverage the external capabilities and funding to achieve

our objectives. We are creating opportunities for sustainable

growth and incremental growth in the future.

(Figure 4)


Strategic Holistic Product Design – A Case Study for Plant Based Beverages

Weizhi Chen, Sr. Vice President & Chief Technical Officer, The WhiteWave Foods Company

“If your grandma cannot pronounce it, don’t use it.”

How to get your ROI as high as possible? The leaderships,

the cross-functional team, the expertise, and the alliance are

absolutely important. This is our new product (Figure 1). I

will talk about the struggles we have that as we know a joint-

venture is never easy.

(Figure 1)

WhiteWave Foods has a lot of brands. In fact, all of our brands

are No. 1 in the categories. And the one not the No.1 is No. 2.

The brand called “Silk” which is No.1 brand for plant-based

beverages and food, is No.1 in North America, and No. 1

in Europe. Now it is the time for us to bring the No. 1 into

the great China. Last year in June, I worked with Mengniu.

We formed a joint-venture business. The goal of that joint-

venture is to bring the very healthy nutritious plant-based

foods into Chinese market. Now, what’s our ultimate goal?

We want to have a No. 1 brand in the whole world. However,

we met challenges because of the cultural differences. We

do things very differently. How do we really work together to

accomplish our common goal? It is very difficult. Anyway, we

are struggling for the common goal.

Now, let me talk about SHPD, that’s not Shanghai Police

Department (in US it is LAPD). That’s a good way to remember

this called strategy holistic product innovation or product

design. I will explain this big term with a real example here. Let

me give you a couple of bad examples you shouldn’t follow:

when I was in the United States many people are working

hard. They have no time, so they use microwave stove for

foods. They open up the package, prop the microwave door

open and shove the things in there. Then what happen? They

forget how many seconds they should push. They prop the

door back open, take it out, and look at it. But nowhere can

be found the instruction. Well, it’s hiding in the bottom. What

happen is all the food items are the floor. That’s one we call

it product design, but it was a bad design. Give you another

one. Nowadays nobody has time to cook their own meal, so

there is a clear need space or consumer innovation space. You

have an outer box, inside you can have pasta, pasta sources,

or vegetable or seafood whatever is in there. So we invite

our target consumers and watch them using the product.

It is fascinating when you look at how they actually use this

product that we design in a certain way. They open it up,

take the content, the sauce, the pasta, and then they throw

this powder case away in the trash. We all do that. Then we

start cooking: where is the instruction? It’s amazing to watch

them going back to the trash, digging that out and look at

the instructions. You would think, oh my goodness, whoever

designed this product apparently didn’t use it. Or the other

R&D Sub-forum


possibility is that the designer actually knew this product too

much, so they don’t actually think people would do it the

wrong way. The good ones, let’s stick to the meal innovation

part. You have a recipe cost for half of the sauce. You use it

to simmer seafood or whatever, and then the other half you

use to finish up the whole dish. That is the process I gave you

the greatest taste. The trouble is, the finance guy comes in

and orders to cut the cost because his margin is not there.

If the pasta already gets tasty, you only need to provide half

sauce to simmer the seafood. But the problem is when you

open the package, the sauce on the paste may leak, which

affects the taste. Therefore, can you remind the consumers

on the package: Beware of sauce leakage when you open

the package. This improves the taste of the product. Look, a

careful design brings taste and surprise for consumers.

Today I want to ask you to focus on strategic holistic product

design. What does that mean? What is strategic? Strategic

by definition is choices. The other one is holistic. I am very

fortunate to get opportunity to look at things holistically. I

worked in a manufacturing, the supply chain, R&D, QA, but

I also worked in marketing and sales. It is very difficult to do

innovation in a giant company. But here still is one challenge:

how do you do the entrepreneurship? I actually started my

own company. So I will tell you it is so different when you run

your own company. You need to know every bit of it, because

that’s your money. I have Ph.D. in Food Science, but I also went

to Northwestern Kellogg School, No. 1 in marketing in the

world. I wanted to understand how to translate invention into

innovation and make money. You cannot make innovation

unless you think through the entire line from the inside to the

outer manufacturing. What’s your selling point? If you don’t

have that compelling story, what is going to happen? One,

you will spend a lot of money; two, you spend a lot of time

educating people; three, maybe watch you design versus

advertising.

Everything starts with an idea, but an idea should have

something insightful. We start with that insight. We found

strange phenomenon, especially in front of the milk power

shelf. You got a lot of people there paying big dollars or RMB

to purchase the imported product. We do have a lot of grain

products in China here locally, but you don’t buy it. And then

even you have great product here you cannot sustain or

justify the high premium. Perhaps melamine has generated

psychological impact on people. Consumers start thinking

buying something that’s safe, especially give it to their babies.

In marketing you have so-called positioning statement. What

are the reasons for consumers to believe your product and

what are the reasons for consumers to switch to other brand?

Fear is a huge motivator to switch. There is a possibility to

introduce a real authentic product. That’s safe. How to do that

when we have that insight? We need to have some design

strategy. You can’t possibly tell people here is some drink, it’s

safe. Who’s going to believe you? So let me give you another

example. I love coffee, so if somebody tell me, “hey, taste this

coffee, it tastes great.” Yeah, I am not so sure I believe that. But

if here he says, “oh my goodness! This is so smooth.” What’s

happening in my mind and translating, “What? This must taste

good.”

So the design strategy is trying to get something in the

middle that allows us to convey this safety idea to a consumer.

It is not directly telling consumers it is safe. If I tell you directly,

he will think about that possibility. What the middle ground

that you can catch to convey that safety? If we can design a

product and advertise it, that allows people to think, “hey this

is real stuff. “ If I can introduce my product into my consumer’s

mind, which is by definition, product positioning, that says,

this product is real. But, how are you going to translate that

into consumer’s mind? How to make it happen through

product design?

What’s the first thing they do before people reaching out to

your product? They just look at it. So the first strategy we used

is to generate a visual that conveys its real idea: our products

are real. So if I show this to you and I say this is orange juice,

would you believe me? (Figure 2) Chances are you don’t, right?

Then I show you this color in the glass (Figure 3) and you

probably say that’s real. Somehow when you drink the walnut

drink, it becomes white. What’s going on here? More or less

the color should be like that. Color the visual is so important

to convey this idea and make people feel that it is real.


(Figure 2) (Figure 3)

But that’s not enough. Nowadays, consumers are very

sophisticated. The first thing they look at your product is your

ingredient statement. Before they even look inside specific

things, they get a first impression. If you have a long list of

ingredients, what happened? They say that’s not real. It is

good if you are doing something medical. You claim some

drinks that make you cure cancer. You better have something

that people don’t understand. But for our purposes, we want

to have natural real stuff, so you got to have a short ingredient

statement, as short as possible. It is very difficult to do. I will

touch that very point little bit later.

The other thing is, in addition to the short statement, you shall

have no artificial ingredients or additives. That’s easy to say

than done. In fact, one of our young marketing professionals

asked me that question — why people add artificial stuff in

the first place since everybody wants it natural and nutritious?

Let me tell you why, it is pretty cheap. You get the margin. And

second is that, they want concentrated flavor. All the people

like concentrated flavor. This frankly is huge challenge for us

against some of the competition products. We like strong

taste. If I give you some natural stuff without any artificial

additives, its taste is not strong and it won’t be preferred by

consumers. Although it is a big challenge for us, WhiteWave

wants to tell you it is purely natural.

So, the other one is premium look. If you look at something

that’s really high end, less likely that you would think it is fake.

For some very cheap packaging you would say something

wrong here. Please look at Figure 4. I will show you a quick

picture. One of the bottles contains artificial stuff, which one

do you think? I think most of us are going to say maybe the

orange stuff, right? Less likely people going to say the one on

the left, because that has a high-end look. Like it or not, that’s

the strategy.

(Figure 4)

Suppose we did the color right, suppose we have very short

ingredient line, suppose we have no artificial ingredients,

suppose we have this beautiful package that’s high end, that’s

all good. Consumers say less likely this is not real. However,

it is not enough. What’s missing there? Because you telling

consumers everything is beautiful, all in your mind it is real.

Bomb! They taste your product and say “oh my goodness this

is terrible, artificial tasting.” Again, easy to say that you want

to have authentic and natural taste, but something’s missing

here. Easy said than done.

How do you actually do it?

First challenge is how we generate a color that’s real without

adding any artificial ingredients in it. We grind the whole nuts

and put the entire walnut into the drink. In the skin you have

all these pigments that gave you that color. Second, in that

skin all these nutrients are found, like antioxidant, great stuff,

but all my competitions throw it away. I choose to put it back

in there. It turned out very difficult to do, because the skin is

rigid. When you put it into your drink, all Chinese don’t like

that sandy grainy texture or the mouth feel. So lately we had

to invent technology that grind it down to certain particle

size, that you can’t taste the grains. But, you cannot repeatedly

grind the material, otherwise, you are going to destroy the

nutrient. Nevertheless we nailed it after numerous attempts.

So now you have the natural color packed with nutrients.

What’s next? We talked about short ingredient line, which is

our strategy. If you look at our product, it’s short, but not short

enough. I will let down two more in there, because especially

if you don’t claim it from market perspective, why you put

in there. We still make that kind of mistake and I see people

making that mistake all over the world. People just put on the

stuff, but they don’t leverage that and they don’t claim it.


When we did the first time, we take the flavor out . It is really

not good, because it tastes really low end. Consequently,

people don’t like it. Now we say, in the United States, we ask

you to put the flavor in although it is unnatural flavor, but

being a Chinese understanding both language, you know

what happen during the translation. When we say natural

flavor versus artificial flavor, it doesn’t matter, because you call

it “Xiangjing”. There’s bad implication and people think that’s

not real. So we have to take that flavor, even it is natural flavor,

apart from design. You cannot put any flavor, even though it is

natural in the drink. It is very challenging for our developers,

but it’s crucial when you think about designing holistically.

I got to worry about commercial, I got to worry about how

consumer going to accept that. Probably a lot of you guys

working in R&D for a long time, so you know this probably

better than I do. There are a lot of other ways to get away the

additives and get the flavor out. It is processing.

I used to work for a big company. And I thought I knew

everything about food science, such as how to do formulation

with all these artificial stuff. In fact one time, I did this coffee

and gave it to my boss. I said, “it is a great tasting coffee.

Taste it”. “ Wow, yeah, it’s great.” I said, ”Do you know there

is actually no coffee in it.” 10 or 15 years back, that’s very

popular. It’s about food science: technology can generate that

kind of product. In the past these were good deeds from the

perspective of science. Then, I went to another company. The

owner was a great Italian guy, the king of pasta. He came over

all the way from Parma and told me, “Whatever you learned

from that company, don’t use it. Don’t use it.” “How, you know,

I got a half product that tastes great and that also makes

money.” He gave you a rule “don’t use artificial anything.” I

said, “how do you measure it”. “Well, if your grandma cannot

pronounce it, don’t use it.” So that somehow stuck in my mind

since then, that anything I think my grandma cannot tell, let

me not use it. Instead, I use process to deliver the things that

we set up to do. For instance, we grind the walnut and the

flavor came out. That’s how we generate great tasting product

without artificial ingredients in there.

Here we talk about communication. We leverage that no

flavor or artificial additives in our commercial. Just like “they

know this is real”. Let’s look at the packaging (Figure 5), so

premium image, that’s good looking package with big words.

Everybody prefers Italian products, so the English words make

the product so awesome. Printed with English and Chinese, it

shows consumers a real product and asepsis process.

(Figure 5)

Let’s quickly look at what the consumers’ feedback. As I said,

this is holistic design. So this is a part of marketing, “Do you

like that artificial taste, don’t try me.” (Figure 6) They tried it.

More than 150 million people tried it. Actually 96% people like

it. “Wow, this is a great product.” And then, about 64% -65% of

those tasters specifically say this product taste great. (Figure 7)

(Figure 6)


Speaking of improvement, this is good-looking package we

made, but one mistake has been made: Those two are so

similar, but it’s two different flavors (Figure 8). Those who work

in manufacturing know that’s a fundamental problem because

it leads to difficulties for quality control. Moreover, we spent a

lot of money isolating the lines so that there’s absolutely zero

possibility for cross contamination. Nuts and non-nuts have to

be separated, because nut allergy is a serious problem.

(Figure 8)

(Figure 7)

Finally I want to share one thing with you. When we grind

all these fine particles, they chocked up the filter, so it is

fluctuation. When you have fluctuation there, all these product

tastes, all this margin and all things messed up. We saw that

problem and we thought of many ideas. This is the strategic

holistic product design. Next time when you do innovation,

think about us and think about Shanghai Police Department,

right. Think about that strategic holistic design.


Cultured Beef: An Alternative to livestock Beef

Mark Post, Professor of Vascular Physiology, Chair of Physiology, Maastricht University

Richard Wrangham, Professor of Biological Anthropology from

Harvard University, is trying to tell us that we are a species

designed to love beef. Conclude from the environmental

work group, we have upcoming problems with classical beef

production. Culturing beef with medical technology can be a

solution. There is no medical reason why would we eat meat.

Yes, it is easy to access to protein and some of the nutrition

that we need. Actually 2 billion people on this planet are

voluntarily vegetarian who live happy lives. We can replace

beef with protein innovations, such as soy, lupine and other

legumes. They are protein rich. We are also looking at quorn,

alge, seaweeds and insect as a protein source. And finally, we

turn to insects. In fact, there are two items I want to stress you.

The first thing is new and unfamiliar. That might have some

questions in the mind of consumers. The interesting part is we

all eat stuff. We are comfortable with eating materials that we

don’t know what’s exactly in there. Because people around us

eat it and still are alive.

The second is that there is a distrust of food manufacturer. The

consumer is naturally distrusted of what people do in the food

manufacturing. If the food is manufactured by a cow, which

is governed by 1.5 million years’ revolution, people would

(Figure 1)

R&D Sub-forum

accept it as long as the cow is healthy. Now if we convert that

to a human-made product, and humans make mistakes, all

things can happen. So we lose control of how we produce the

food. That’s sort of scary. That’s how the technology is been

implanted, so we develop this technology very simple. You

can do this at home in your kitchen if you like. If you have the

incubator and the equipment, you can design it and do it at

home. However, you have to know which you want to eat.

That was not as bad as we thought which was showed by a

cross-sectional survey in the Netherlands: you basically asked

“are you in favor or against in vitro meat”, 63% said yes, and we

also asked “will you buy it in supermarket if it was available”.

To our surprise there were 52% said yes or probably yes. So

that’s a little bit more of encouraging. Rationally people are

more adventurous towards this new product. If you tell this to

people under age 30, they don’t seem to mind, and they seem

to accept it right away. They tell kids between the age of 8 to

12 who really become excited. So, it is really an age dependent

thing.

So what are the other minor factors to product development?

The second one is about price. In fact, this hamburger costs

about a quarter billion Euro. We have done some work on it,

obviously, a sort of model work (Figure 2). You start with a

very small numbers of cells on the left top and you end with

intermediate number and finally end up with 25,000L.


(Figure 2)

If you put every cost factor in it, with current technology,

without any improvement, scaling up the production in the

system, the price would be around 65 dollars per kilo, which

is a lot, which is much more than our current beef price. What

we already know what the factors are. This number can be

changed and improved to get the price down. That will be a

matter of improving technology and a matter of time.

(Figure 3)

I think this is a technology available and the technology is

there. We definitely need to do more research to really make

it happen. I think not too far, maybe in 5 to 6 years we will

be able to present beef that this picture shows. I personally

start it with food security and environment, not really for the

animal welfare reasons. I am a Physiologist, but I think for

the consumer, this actually could be a decisive argument.

I challenge you in thinking, 15 years ahead, where we look

back at the times we still kill animals for our food, if we have

an alternative, will we continue to accept that? And I think

not, and I think that will change over time with our concept of

what meat is.


R&D Innovation Creating an Infinite Future

Cao Yongmei, Chairman of Group Production Council, Want-Want China

I will read a poem impressing me a lot to you. It was written by an American 70 years ago

and its title is Youth. Youth is not a time of life; it is a state of mind. It is not a matter of rosy

cheeks, red lips and supple knees. It is a matter of the will, a quality of the imagination,

vigor of the emotions; it is the freshness of the deep spring of life. Youth means a

temperamental predominance of courage over timidity, of the appetite for adventure over

the love of ease. However, this kind of courage and temperament often exists in a man of

six more than in a young boy of 20. Nobody grows old merely by a number of years. We

grow old by deserting our ideals.

Want Want Group held its 50-year celebration last year and we invited some consumers

to make recommendations for our logo, and many of them used the words of “sunshine”,

“happy” and “energetic”. This is an idea of our enterprise based on our enterprise culture.

How an enterprise can keep such young vitality and creativity at the age of 100 or even 200

lies in the unremitting innovation, because innovation can bring infinite vitality, but how to

create the boundless future and keep young state of mind and creativity forever?

From top to bottom of the whole industrial situation, the demand for food innovation

and new products is becoming larger and larger. In previous years, 10 new products were

launched and this was quite a large amount, but last year, 48 kinds of our products were

launched and this year 54 will be launched. We’ve made a lot of products, but it is just

because of the too many products that make our focus scattered, and many products are

not well sold; however, some of the creative practices are successful.

Who becomes the new main customers force on earth? A large-scale post 90’s investigation

at present shows (Figure 1) that the post 90’s has become the larger consumer group of

R&D Sub-forum


(Figure 1)

The scale is quite large; they have great confidence, high education background and

income, but their confidence index and personal economic situation are quite different

from each other. Consumers before 1985 pay attention to the use feedback including the

evaluation, reputation and quality, focus more on the evaluation before shopping and

keep an eye on the interactive correlation. Although they would like and are able to open

their purses, they will be shrewd in money matters before shopping. In allusion to such

consumption crowds, each of our products should conform to his positioning, core value

and brand concept. (Figure 2)

(Figure 2)

How to put our own story in while combining the label of the personality and attitude

of consumers? Does the personality of our brands contain some motivational elements?

Self-confidence, persistence, dream and diligence, all of these are the brand value people

should deliver while passing on the products.

the whole food & beverages market, accounting for about 17%. In the future 5 years, these

people may account for 35% from the original 15%.


In the trend of future food, we focus more on the food nutrition and health, e.g., how to

reduce the fat, sugar, calorie and allergen and increase some healthy prebiotics elements

including the natural, organic and non-additive products. Although it may mislead

consumers during the promotion of products, consumers really need this. Therefore, we

cannot avoid this but have to innovate and realize the leap of products.

As to the packaging part, the Want Want Children's Milk creates the sales of nearly RMB 20

billion Yuan every year; if we make the iron can become thinner, it will be very helpful to

environmental protection. We also develop some new iron & steel materials to reduce the

thickness and height of the aluminum can. The printing has gradually been replaced by

preprinting from the offset print; great improvements have also been made no matter in

the use of materials or the printing ink itself. We are also making the recycled packaging

materials (Figure 3) and the Want Want 125 ml is the great type. Also, we have made

great efforts in the popularization of the water soluble printing ink, which will be greatly

conducive to environmental protection (Figure 4).

(Figure 3)

(Figure 4)


Once, we also made some innovation in management. Associate the PLM system, Industry

& Commerce-focused SRM system and formula production & marketing data-centered SAP

with each other, to build the prosecution system for each product

In technical R&D, we will interact with consumers on the key R&D points, to learn about

the target groups and dig the bright spot (Figure 5). Also, through the trans-industry

integration, including the introduction of natural elements, concept of convenience and

green packaging, the light weight, low price and beautiful appearance can be recycled;

what’s more, it is our product quality guarantee. Last year, there was a bitter experience; too

many launched products gave great pressure to the whole production team, so to pursue

convenience, we used the natural raw materials during the selection of raw materials and

thought they would be very reliable, but the data experiment was not quite complete, so

at the life cycle of this product, colors changed. This bothered the whole group, especially

the sales unit and also brought a great blow to the reputation of the R&D team; what’s

worse, the sales unit would never believe us anymore. Even though it is not the quality

problem in some real senses and only the color changes, it is the fact that the product does

have problems. Na matter how natural or good the product is, quality and safety will be

definitely the first thing for food enterprises.

(Figure 5)

The Want Sucking Ice Cream is a successful product and also a first initiated product.

During development, the transportation difficulty is also a consideration factor.

Refrigerated transport is a must for the ice cream, but the sucking ice cream does not need

this condition, so the difficulties in transportation and storage are solved. After frozen for

three hours, it will become the ice cream when taken out; it will be the milk shake when

you drink it after directly refrigerating it or without refrigeration. Therefore, the sales of this

product during the launch in the first year is nearly RMB 400 million Yuan and it is a good

product that the R&D and marketing work together to forge. In the future, we will solve

more of the consumer’s practical difficulties or some difficulties regarding the supply chain.


At last, I will also use a poem to say goodbye to you. It is the Prophet written by Kahlil

Gibran.

Life is indeed darkness save when there is urge, and all urge is blind save when there is

knowledge, and all knowledge is vain save when there is work, and all work is empty save

when there is love; and when you work with love you bind yourself to yourself, and to one

another, and to God. And what is it to work with love? It is to weave the cloth with threads

drawn from your heart, even as if your beloved were to wear that cloth. It is to build a

house with affection, even as if your beloved were to dwell in that house. It is to sow seeds

with tenderness and reap the harvest with joy, even as if your beloved were to eat the fruit.

It is to inject the breath of your soul into all your weaves.

As a producer of food and beverages, we produce products with love and hope our

beloved can enjoy them and harvest sweetness & happiness when enjoying them, which is

the common wish of all food & beverage enterprises and all producers.


Bringing Ideas to life— About the importance of supporting young people, solving problemsand introducing an innovative student product to the market.

Robin Stein/Hans-Kaspar Mayer, Co-Founder, Babo Blue

We both are studying at Technical University of Munich. We are studying Food and Brewing

Technology. And next to our study, we have developed our own product and successfully

introduce to German beverage market this spring (Figure 1). Our product is called Babo

Blue, and as it is seen, it is blue, and actually it is a beer mix.

(Figure 1)

R&D Sub-forum


What is innovation? By definition, innovation is a new idea, more effective device or

process. But is this all of it? We say no, especially young people like us love and want more

products, but sometimes there is a big problem in design in big companies, because they

are designed by another generation. Our generation wants and has to desire for a product

that is made by our generation. And here is another problem. Young people of great ideas

fit the needs of the market perfectly, but they don’t have the money or network. Therefore,

they rush on Internet to introduce this product to the market. At this point, teachers,

companies or organizations have to plug it, because important young people can be a

great a benefit for the young people themselves, for the companies and for the society.

How to support these young people? For first, why is it important for young people to get

support? Since a lot of young people have talents but lack of experience, they need to get

effective experience. And by getting practical experience, you actually would have to face

and solve problems on this process. When you solve problems, you would find it could be

fun of work. Why is it important for a university or organization to support young people?

We think one of the most important points for a company is that you get recognized by

young people. When your organization gets more attractive for them, it is good for PR,

because big media like TV channels prefer stories from students bringing up and report

about it. We think the most important point is why it is important for society, because

young people are the future for every society. Let’s set Germany as an example, our country

don’t have much raw materials, like oil or gas, so the most valuable raw materials of our

country are young people. When you treat your raw materials right, the future of the

society may be guaranteed.

Every student’s life or teenager’s life, to some point, are tired or bored. Sometimes all you

need is a “wakeup” call. Let us tell you how our wakeup call is raised. We launched our

product in German market. We participated in the innovation contest Technical University

of Munich for beverage and food. The goal was to develop a new and innovative beverage

for the market in Germany. We won the award of the contest. Our team met at the first time

at the beginning of the contest and we didn’t know each other before, our first task was to

specify our responsibilities in the team. Our team contains of five members, respectively

responsible for finance, the sales and resource management. I was responsible for

strategic management, sales, and other member was responsible for brewery and product

management.

How did we get our idea and develop our idea? Firstly, we brainstormed a lot, from which

we got over 50 ideas. We did this because we looked at the market to find which products

were missing, and we looked after the products and the gaps in the market portfolio. Then

we sorted these ideas according to the technical possibilities, our personal preferences,

and the innovations. At this point we got a lot of support from the contest, because we

contested with professionals, like the development group. For us it is a huge amount of

experience we got in contest. These professionals helped us develop our ideas with our

knowledge, our market research and their experience. Then we find one specific idea. We

find the idea of a blue beer mixed with lemonade.

But this is a wide range of product that can be a lot of modification. So we have to try our

(Figure 3)


ideas at first. We brewed different beer styles in our 15L home brewing station (Figure

2). Our favorite was Cologne style, because of its bright color, and its light and fruity

aroma. During the time we developed our lemonade, our blueberry and blackberry, so

this combines to well balance the product. Next, we needed some consumer test to see

whether our product is with right recipe and fits right. After this we developed our first

product type and presented it to a professional jury in February 2014, so last year we had

our first presentation before professionals who rated our idea and tasted our product. It

had light black color and it was very sweet. It was not so good. For us we got criticized, we

got feedback and professional opinions, so we improved it very well. This was the most

important part — we got to the second phase of development of the contest because

only selected groups of this contest were allowed to improve their products and worked

with these professional members of the contest. Take route from Beijing to Shanghai most

of the time you have a lot of obstacles to pass. We had a lot of problems with the color,

because if you mixed the yellow beer with blue color it got green, so you have to do some

technology there. But at the end, we developed our last prototype in September 2014 and

presented them to professional jury again. At the end we won the finals and we won the

contest. With the victory a huge media interests came in Germany. But we only have our

15L home brewing station. Therefore, we found a private brewery in Germany who worked

with us, helping us to scale up and develop our roadmap with professional partners. In this

scale-up timeframe we had huge problems because in Germany you have to use specific

glasses that have labeling, etc. However, we solved them. We produced our product in

December 2014, so we filled the first bottle in February 2015. One of the main parts we

learned through this process was to get out the building, don’t hide behind your product.

This is the main reason for our startups. We have to take action.

Now it’s a picture at left you see, and right hand side the shipping to Munich. On left hand

side you see the main selling, product with six bottles. (Figure 3)

Now I want to give you a little summary of our presentation. We show you why and at what

point young students need support. So, at first you need a wakeup call, you need getting

inspired and this can be innovation contest as in our example. After this, you need to find

your team, you need to get together with people you like, trust and know their strengths.

After you found your team, you need to develop a bunch of ideas, you need to brainstorm,

and after you have these ideas, you don’t know if they work, so at this point you need

the support of professionals. You can create a roadmap for a project, and sort one idea,

from which you can make your first prototype. After you developed the first prototype,

it is very important that you present it to the professional judge who can tell you if your

product works, and if it tastes, normally it is said that you need a lot of improvement. At

this point, you would need some professional support again. You have to develop the last

prototype, which has to be developed by yourself that you get to see if your experience,

your knowledge works. And if you present this prototype to final judge again, they can tell

you at the end if your product works or if it is ready for the market. If you want to bring it to

the market, you need to scale up to bring up industrialized production. This can be win-win

situation for both sides. On the one side, this small and new-comer company which gets


(Figure 4)

experience from highly trained professionals, and on the other hand, big companies need

startups, because they already know the product and we trust them, so it is their gain of

new customer. Together you can create a final product which you can bring to the market.

(Figure 4)

We think that innovation is more and is what we’ve learned from our process of developing

the Babo Blue. A British author actually hits it very well. He says “Innovation is more than

having new ideas. It includes the process of successfully introducing them or making

things happen in a new way. It turns ideas into useful, practical and commercial products

or service.”


IDC Technology Innovation - Enabling RTD Beverage Dispensing for Weeks, Maintaining Shelf-life Without Refrigeration

Li Xin, Board Member - Industry Advisory Board, International Dispensing Corporation (IDC)

The IDC HQ is in New York in the U.S. and dedicated to

developing the sterile packaging valve and supporting

products and equipment of related series. The composition

and structure of soft packaging films, box size and appearance

design, discussion about the best form, size and method

towards the market, transportation, channels and areas

and regions where the BIB producers can be found are all

cooperatively executed.

This brand is called The Answer (Figure 1) and the only low-

acid neutral sterile valve in the world, specialized in providing

safe packaging for large packaging beverages above 5L

and facing the catering market. Extending the shelf-life

and needing no refrigeration are its functions. With the soft

packaging BIB or stand-up pouch, it can match all the existing

BIB can filling machines and the IDC high-speed can filling

machines are not necessarily used. After it is put into use,

the shelf-life is around 30 days and it is suitable for the fruit

juice, dairy product, coffee and milk shake with no granula.

Especially in emerging markets like China and Asia, the

complete cold chain has not been provided in many places, so

we can go to the second-tier city, third-tier or fourth-tier city

or the countryside and enter millions of small and medium-

sized enterprises in the context of no refrigerators.

(Figure 1)

R&D Sub-forum

(For this structure, a spring and hermetic silicone seal will be

used to guarantee the one-way flow of the liquid; during use,

any gas will not be deflected, so there is no problem about

the shelf life and you have no need to worry about product

oxidation. It seems very simple, but we have the intellectual

property and the contained technical content is really strong.)

Compared with other BIB packaging, there is no big difference

in the cost, but in terms of the product with the 5-8L volume,

obvious cost advantages will show. Using the large packaging

to replace numerous small ones can greatly reduce the

influence of consumable items on environment; besides,

from the whole cycle of the product, refrigeration is not

needed, which can reduce the energy use; it is to satisfy the

need in taste if refrigeration is necessary. Above all, neither its

functions will be degraded nor its shelf life will be shortened

because of sterilizing irradiation.

This product has huge development markets in Asia, because

in Asia, the cold chain is not very perfect and the catering

channels develop quite fast. Of course, some second-tier

and third-tier cities are included; we are cooperating with

some transnational companies and large local companies.

Bringing this product into the Chinese market are beneficial

to restaurants, schools, especially those catering units in the

second-tier and third-tier cities.

What IDC provides is not only this valve but also the whole


service and design, including canning. If the sterile can filling machine has

already been used, the assembling will be very easy, but if you need a high-

speed can filling machine, IDC and Deler just develop such a product (Figure

2) together; with the speed of 30 or 40 bags per minute, it is a product passing

the low-acid validation. These are two series of products that IDC will promote

in the future development: the valve and can filling machine. In the future, we

will provide you with more products.

(Figure 2)

Marketing Sub-Forum

Storytelling: The Coca-Cola Way

The Brain behind Better Brands

“The Beer that Speaks for Itself”

Scent Branding in a Multi-Sensory Context

HP Digital Printing for Food & Beverage – The Art of Possibilities

Fink (Think) Different

Baidu Moments

Life of Advertising Guys

Disruption and Innovation

Native Marketing and Legendary Stories

Programmatic Buying: Brand Age

Data Driven Innovative Precision Marketing

CONTENT VELOCITY PACE+PURPOSE

Synchronizing a Brand with Culture to Get Best Returns


Storytelling: The Coca-Cola Way

Richard Cotton, Content & Creative Excellence Director, Coca-Cola

I am specifically creating stories for the Coca-Cola Company. I will play you a video

hopefully, which is about a little bit of our stories, the content we wrote last year in China.

Video: Coca-Cola Encyclopedia

I didn’t know that we were the first foreign brand advertising in TV in China back in 1981 or

something. That’s interesting for me that China now may be the biggest socially engaged

market in the world. This is very controversial, but it is true. I think what is really a logical

business is a kind of point that media inflation is going faster than our marketing budget,

so we can’t just keep on doing the same thing and expect to get a better result. There is

something aware that we need to change.

Coke has always been fairly innovative. This is the innovation platform. We put stories at

the heart. That’s everything we do. It is not just having stories. There is purpose behind

that. So we call this liquid and links. Liquid is because we are a beverage company, but

also because we believe that all of our ideas and stories need to be liquid and involved.

They need to find their little way. But their needs are to be linked. So it is not about just

doing what is crazy stuff and hoping for the best. They need to link back to what business

objectives are and what our partners want to do. Therefore, first of all, it’s all about stories.

Stories can be content. I think the content is a part of it that comes from us and the market.

“Story is the currency of marketing. Only timeless belief can attract customers.”

Marketing Sub-Forum

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However, experience is very often to be forgotten about. The experience when I drink coke,

and it’s a good experience. That’s experience that communicates anything else. And finally,

basic experiences can form conversations around our brands.

The next point is about spread, which is about media principles and finally how we create

value, not only just for us, but the whole system. Stories are something that just last forever.

These stories are currency. But stories help to explain the inexplicable. You know there is a

lot of magic that cannot explain, and stories are going to explain that. They help to build

belief around ourselves and brands, they help to preserve knowledge, to deliver inspiration

and imagination, and create awe. Stories can be timeless. I have three children, 2 very

young girls. It is amazing that you know their favorite things maybe the old ones that were

written 60 years ago. But it is amazing that these stories and the money we spent on Disney

stuff and Apps and just whatever, were created 60 to 70 years ago.

We are basically, because of technology, becoming storytellers. That could be fantastically

good and it could also be very damaging. The point is, with this new generation of

storytellers, you need to be very careful about this kind of stories you want to generate.

Luckily, storytelling is absolutely part of the DNA of Coca-Cola. They are not certain things

we are going to switch on and then forget about when switching off.

If anyone have the great pleasure going to Atlanta, there is a museum there. Like lots

of brands have museums, it costs 12 US dollars to go into the Coca-Cola Museum, and

you need to spend 3 hours or something there. Millions of people do this every year. We

actually make money as brainwashing people even more. I just want to show you many

stories with our clients.

Who is he? (Figure 1) Santa Claus came from somewhere in the forest. He was a forest guy

who was dressing green. But in 1920s, we decided to make Santa Claus a very powerful

spokesman for the brand, so we changed his clothing red because of Coca-Cola’s color. And

now he is accepted as a person but originally he was a green saint.

(Figure 1)


(Figure 2)

I think everybody recognized the bottle’s shape. It’s actually launched 100 years ago. We

went about the celebration for this iconic packaging, but this hasn’t changed really for 100

years. Of course technology has been developed, plastic came along. But if you look at it

as an iconic kind of bottle, we can see so much around us. So we use the shape in all of our

advertising. It is not an advertising campaign, not a kind of marketing in this traditional

sense, but something that was very precious and spinning around for a long time.

The secret formula which you can go and have a look at in the vault in Atlanta, but it is a

wonderful piece of marketing. I mean when you Google, all things whatever you want to

know, will appear. The secret formula is not that secret. That’s out there in the Internet and

there are different cokes, but we maintain this whole kind of incredible or mythic around

the secret formula, because the secret coke must be delicious, brilliant, amazing. All the

rest of it sounds very powerful. It has the mystery behind the brand that greatly promotes

the brand.

As I say these are not moments, these are not advertising campaigns, these are not just

kind of stuff that we will spend tens of millions of RMB to put on TV. These are actually the

stories that have been around for as long we have been around, and that makes them very

powerful. Stories can be used in a lot of different ways. We do a lot of work on coke on

what we call a point of view advertising. Something that we do globally and something we

start doing in China. Last year, we did something about migrant kids and kind of peasant

juveniles. This commercial had stirred up the community, because the content created

powerful sympathetic response among people. Some even cries in the room.

Video: Care for migrant kids – New Year Welfare Documentary of Coca-Cola

This video is very powerful, which has conveyed very powerful information. I think we

always talk about the differences in generation in China. All my Chinese colleagues say

Chinese year boring, I have to go home, eat too much, there’s blablabla…But actually we

wanted to point out in this Chinese year that this would be precious time in your life to

stay with your parents. When I first saw this when it was finished, the content just got me

thinking — I am in China, I haven’t seen my parents for a long time. It got me touching. This

point of views was very different from traditional Chinese year, because normal Chinese

http://v.youku.com/v_show/id_XNjY0NDY4MTk2.html?from=s1.8-1-1.2


year should be happy and busy, but it really touched us very well. It provided the chance of

speaking to people. To be honest, we are trying to sell our products.

I want to show two examples. When you start inspiring people with the contents about

to agree too much, they start creating their own stuff for us. These two examples have

nothing to do with us. We didn’t spend any money on it. And this stuff was shared on social

media.

(Figure 3)

This was from Weibo. Someone went through the trouble writing a love letter to his

girlfriend, but using lots of Coca-Cola images (Figure 3). He said, when I was 15, your smile

lit up my gloomy world. When I was 17 I said I’ll marry you. When I was 18 we fought for

our future and lived at opposite ends of the world, you went to Sidney. When I was 25 I

honored the commitment I made when I was 17. And again with these relevant brand

identity (Figure 4), by your side I can face every unpredictable tomorrow.

(Figure 4)


You can see the iconic coke bottle under the sun there (Figure 5). She gave us an idea,

which was we should get wedding packs. So, it is sounded like free advertising and free

innovation, fantastic.

(Figure 5)

This is again using a lot of the iconic bottle — We shared funs together (Figure 6), your very

first love letter was brought an enriched experience, the graduation caused departure, we

shared memories that no one can take away. They used the bottle shape. Time may have

separated us, but it can never erase our memory (Figure 7). This is really very great if this is

written for marketing, because you don’t have to face expensive agency. People are doing

this free for you, for the memory and youth. It is fantastic.



I am going to tell you how we get stories taking off and moving forward.

Back in the days things were easy. In 1980s we didn’t have many TV channels, so you just

had one or two channels and you just needed to purchase one period for advertising. After

the job was done, you could get home at 5 o’clock and spent time with kids. Things got a

lot more complicated. So, in 1990s, we got different targeted audiences, and we had one-

to-one communication through Internet in 2000s. But now, with social media, everyone

spreads information. It’s a lot more complex. (Figure 8)

(Figure 8)

We have four really very simple principles that help drive communications. The first one is

that we are trying to make all our campaigns socialized. That sounds a little bit buzzwordy.

To make it simple, if our idea is good enough for me, me is individual, not as a coke person,

I shall share with my friends. If it’s rubbish whatever, it is not going to be social, because no

one would have a feeling for the sentence same as me. So make it the idea you would like

to share with your friends and your families. We got 16 million. How are we going to spend

it? We try to develop this on the stock, and honestly we produce billions of products in

China every year and sell in packages. We call it 70:20:10 principle. We deliberately plan our

money, our time, and our resources 70% on stuff that we know is working well. Then we

spend 20% on the stuff that is new. We don’t know because we haven’t specifically measure

it, but it is new. And then we spend 10% on stuff that we think might work tomorrow. So it

forces us to take risk and innovate. If the 10% works fantastically, next year it will become

20%, in two years’ time 70%. And believe me if it doesn’t work, that’s fine, that’s up to

you, it’s not a problem, but learn from the mistakes and don’t even do that again. But the

70:20:10 is really liberating, because it allows us to innovate and allows us to try things we

haven’t done before. Final point, again, it’s kind of obvious guess, but it is a principle we

call “no dead ends”. For instance, if you come in with a piece of packaging through website,

or through a mobile promotion, or through experience, whatever it is, whatever point

you come in, you will never meet a dead end and you can find a new channel at anytime.

Of course sometimes it is funny. If you want to get more contents, why not open all your

channels. (Figure 9).


(Figure 9)

I am going to talk about a campaign we ran last summer, which was huge successful for us.

It boosted our sales tremendously and won a lot of awards. This is a lyric bottle campaign.

We basically put some lyrics on coke packaging as a way people expressed their emotions

and feelings. If I am in love with my wife, I could go and say I love you. There is a lot in

China. So, it is a very successful campaign for us.

Video: Coca-Cola Lyric Bottle – BJ Britt

Final point is about great stories, which we spread them effectively. This is about values.

In the old days, it was very easy as consumers liked what we sold. If we created value for

our audiences, the products they like, stories they like, then, they will buy more from us,

and we will make more profit. This is fantastic. Things are evolving and so we have what

we call value creator. They are very influential. But the point is that we need to create

value not only just for consumers, not just for partners, but also for everyone around

there, just like our advertising agencies. None of the stuff we did was possible without our

advertising agencies, so we have to create value for them, not just in terms of paying them

the fee, but in terms of helping them to grow as well. We also want to create value with

the government officials, with everyone that can have influence around the value system.

There are a lot of people, as food and beverage professionals, but as an industry, we have

a lot of stakeholders. How do you engage them in a possible way and turn things around?

(Figure 10)

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I will show you my final video today.

Video: Click here for the Speaker’s Presentation Video

How lovely this film is. We engaged Chinese artists, academic and commercial, make it look

like a Chinese painting. Anyway, stories they are currency making them spread, making

them liquid, making them social heart, and finally making them link back to our objectives

and every influence around us. So everyone gets different, everyone is a winner. That’s kind

of what we do. I hope it is useful. (Figure 11)

(Figure 10)

(Figure 11)

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The Brain behind Better Brands

Guo Lan, Head of Nielsen Neuro Greater China

Hong Bo, Professor, Department of Biomedical Engineering, School of Medicine, Tsinghua University

“Detect and interpret attention of “human brain”, “emotional engagement” and “memory activation”; test efficiency of the advertisement by every second”

Guo Lan: Neuroscience is well applied in marketing and market research. First of all,

Professor Hong Bo from the School of Medicine of Tsinghua University, who also serves as a

member of Advisory Group of Experts on Consumer Neuroscience in Nielsen Greater China,

will explain the underlying principle. And later I will share with you some actual cases.

Hong Bo: Researches carried out in my laboratory are related to brains. In order to detect

activities of the brain, sensors are usually put into brains of normal people, patients and

Marketing Sub-Forum


experimental animals in a physical or material way. What kind of quantitative methods can

be adopted to know how the human brain thinks? Can we know what people are thinking?

This photo (Figure 1) looks like a Big Dipper. But in fact, it is a nerve cell in the human

being’s brain. A person roughly has 100 billion interactively-connected nerve cells.

(Figure 1)

Questions we think about, words we talk and various feelings we perceive are all processed

by these nerve cells, and these shining objects are associated with our memory, attention

and decision-making. Of course, that the nerve cell turns green is a result of the addition

of fluorescent protein. But how do these nerve cells determine our behavior, sense and

memory? Can we quantitatively observe them?

A colorful brain activity map will be generated if it is possible to put a sensor into a person’s

brain – this can be realized during some special diagnoses in hospitals. The map can tell us

what a patient or a normal person is thinking and what he is doing.

About a century ago, Hans Berger, a German psychiatrist, invented a particular kind of cap

(Figure 2) – electrode for electroencephalogram (EEG). Such electrodes can detect the

extremely slight activities on the surface of brain. Berger fell down from a horse while he

was on active service in a military camp in 1924. After returning to the camp, he received

a letter from his elder sister in Germany, which said: dear brother, did you get hurt? Berger

felt it strange that his sister should know something had happened to him while she was so

far away. Then he started to consider whether information can be conveyed among people

through some magic brain wave or electromagnetic wave. Back to Germany, Berger began

to study the magic substance emitted by human being’s brain. Later he found out that the

brain indeed involves such kind of electric activity, which, despite being very obscure, can

be detected. Since then, the method of EEG has been widely applied in clinic and market

research for it doesn’t produce any trauma. All one needs to do is to put on the special cap.


(Figure 2)

It is also within our research scope that what sort of technology and methods can be

adopted to interpret the EEG signals collected. In an experiment, I read names of some

cities and collected all the EEG signals of the subjects to see how they differed. For

example, when I say Beijing, Shanghai, Guangzhou, Shenzhen, Qingdao, Shenyang, Xi’an

and Urumchi, maybe you will felt related with many of these cities: they may be your

hometown, the place you got your first job or your first love. Then what will your EEG look

like at the time? It is a real-time monitoring (Figure 3) and what can you see? It’s just like a

storm, the red and blue colors indicating the intensity of the brain activity. But if a city has

nothing to do with you and you rarely go there, your EEG may become this (Figure 4). So

we are able to know the secrets in your heart once you put on the EEG cap. Vague as the

signal is, it turns out to be an effective method in many fields like lie detection. Since then,

the method of EEG has been widely applied in clinic and market research for it doesn’t

produce any trauma. All one needs to do is to put on the special cap.


Why is the EEG useful? In addition to being light and convenient, what’s more important

is that the EEG is dynamic compared with the static pictures produced by functional

magnetic resonance. We can know the process and see how the brain varies with the

external environment roughly at a millisecond level.

Supported by extremely accurate neuroscience, the EEG is very precise and it can grasp

changes in a very short time. Therefore, in laboratory we let students put on the EEG cap

so that they can use their thoughts to direct two mechanical dogs to play a football game.

In the cerebral cortex, there is a narrow stripe of motions and senses, which corresponds

to every part of the body. For example, a dramatic change will occur to the right cerebral


(Figure 5)

hemisphere when the left hand is moving. Again, this can be detected by the EEG. So,

when the students are directing dogs, they can tell dogs to turn left or right by consciously

controlling the activation area of the brain. It is a cutting-edge research domain that can

help the disabled. Take physician Stephen Hawking for example, it can assist him type and

even translate what he wants to say.

In fact most often the brain doesn’t work. There is the emotion part. For instance, when

asked whether you like the lights in the room or not, you can immediately make a

judgment. Most of the time, such judgments are made by your right cerebral hemisphere.

However, if you are asked a poster board contains more letter E or letter A, you’ll have to

count and calculate. In this situation, it is your left cerebral hemisphere that works. Our

emotions are collaboratively processed by both the left and the right brain. Generally

speaking, the positive mood comes from the left brain while the negative one is from the

right. (Figure 5)

We are likely to figure out whether you are experiencing a positive or negative mood by

simply comparing the intensity of activities in the left brain with that in the right half. On

the other hand, since the EEG is precisely time-based, I can know what the brain waves look

like exactly and how they change every second and every minute. I can even calculate how

many times the changes happen within one second. This is called frequency of brain wave.

Actually, brain waves at different frequencies match with distinct functions (Figure 6). For

example, β wave (4-8Hz) is concerned with memory while α wave (8-12Hz) with the degree

of alertness.


My students made a cartoon in cooperation with friends, but they were not sure whether

people will like it. So we asked the audience to watch the cartoon with the EEG cap so

that their brain activities at every second and minute could be recorded, on the basis of

which the emotional indexes could be figured out. Assume that originally a very important

highlight was designed during the 40th – 45th minute of the picture. However, to the first

version, the respondence of most EEGs was blue, meaning that the cartoon failed to meet

its design requirement. After improvement, the movie was met with a large area in the

red color, indicating that a positive emotion had appeared at the very time of the first EEG

detection.

(Figure 6)

(Figure 7)

A coordinate axis (Figure 7) can be drawn based on the calculation of degrees of alertness

as well as engagement of memory and attention. The vertical axis represents the frequency

of brain wave that shows the degree of engagement; the horizontal axis reflects the

balance between the left and right brain. As a whole, the drawing tells us which quadrant

an emotion belongs to. What was impossible before now can be accomplished with merely

an EEG cap.


This can be used on many interactive occasions. For example, as everyone is in motion,

is there any method of detecting brain activities in the motional and online situation to

tell you people’s emotions and intentions? Actually, it is exactly what my laboratory as

well as the scientists in Nielsen is working on. Now we have developed a lighter and more

convenient brain sensor which can be integrated in spectacles or even earphones. It is

expected that advertisements will be made more effective one day in the future.

Guo Lan: Next I will share a real case with you.

Video: Ad. of Anchor Kids Milk

Nielsen possesses a complete set of methodology to evaluate advertisements (Figure

8). It is supported by the same principle as that in watching cartoon with an EEG cap.

In our laboratory in Shanghai, we asked consumers to wear the EEG cap and watch the

advertisement. Then the effect of the advertisement was analyzed. It ranked top 20% in our

database. That is, the ad is a very good one, with its data achieving the highest levels in the

data library in terms of attention, emotional engagement and memory activation (Figure 9).

(Figure 8)

(Figure 9)

http://v.youku.com/v_show/id_XOTI1NTI0MDI0.html?from=s1.8-1-1.2


Then does it need improvement? Figure 10 signifies the effectiveness at every second

during the 30 seconds, which we call “noodle book”. It is a curve graph of the effectiveness

at every second, reflecting the comprehensive analysis based on attention, emotional

engagement and memory activation – 3 indexes directly extracted from the brain. The

advertisement produces really attractive effects within the first five seconds. The question

put forward initially easily catches consumers’ attention and arouses their interest. With the

delicately designed picture, this ad generally gets three selling points: being imported, with

no sugar and balanced nutrition, last but not least, the propaganda logo. Among these

three points, the curve reaches very high positions regarding import, balanced nutrition

and brand, while the middle part of no sugar achieves a relatively poor performance. Why?

How can we make it better since a problem is noticed here?

(Figure 10)

Firstly, let’s look at the grey curve – memory activation, which signifies that the information

conveyed by the ad is related to the previous memories of consumers. It makes people feel

that the information is meaningful and can be remembered. However, for a rather long

period in the part of “with no sugar”, the grey curve keeps a low value; by contrast, the

orange curve – attention – maintains a high position. You may think that high attention

is good because it shows that consumers are paying attention. But the fact is that only

active attention matters. For example, an arithmetic problem may require people to pay

attention so as to figure out the numbers of letter e and letter a, but such kind of attention

is not considered good in advertisement and marketing. Apparently, you won’t like it that

consumers watch your ad as if they were participating in the International Mathematical

Olympiads. Instead, you hope they can easily understand the content under a relaxed and

delighted context.

So what’s the problem here? We all know that no sugar has never been a selling point

before in other similar products. It is a brand-new idea and Anchor is doing the pioneering

work. Naturally, consumers have no memories related to it. At first they don’t get what you

are talking about. But when they hear the voice-over; the association of it with the previous

information will help them understand that the idea of no sugar means children reject

sugar. When the audience work this out, the attention will decline; meanwhile, the memory


activation increases. That’s a good thing for it shows that now people treat no sugar as a

very relevant and meaningful selling point in kids’ milk-related products.

Anything else to be enhanced? Let’s take a look at the follow-up data (Figure 11). The

red and yellow areas represent the focuses of the audience while they are watching the

advertisement. What they are interested in are the lovely kids rather than the product.

Pictures of product reference are necessary in food and beverage ads. So, when conducting

such a presentation, make sure that you have striked a balance between actors and the

product and brand that you really want to show.

(Figure 11)

Realizing the effectiveness of every second of the ad in terms of neuroscience will help

us pick out the most effective pictures to make a short version. A great deal of tests and

verification – research and analysis of 75 ads, both the original version of 30 or 60 seconds

and the compact ones – has led us to the conclusion that under 95% circumstances, the

compact version produces better effect than the original one does. There’s no need to talk

more about the principle. Usually during the production of the original version, too many

contents are intended to be covered. There may be a lot of differing opinions on how to

tell the story and what pictures to use. As a result, the final version turns out to be too

obscure to consumers and fails to achieve satisfying performance. However, through the

employment of compacting in neuroscience, only the essence will be kept. Particularly in

this year when many brands are faced with decrease of budget and consequently have to

present shorter ads, it is an ideal way to improve the return on investment (ROI) of media.

It is not scientific fiction any more to apply neuroscience in marketing and market

investigation. Up to now, Nielsen has completed a series of projects in over 40 countries

around the world and it has been working in China for five years. In addition to

advertisement, the cooperation also encompasses packaging, product, food and beverage,

and even promotion design in stores. I hope we can get the opportunity to discuss the

application of neuroscience in these areas.


The Beer that Speaks for Itself- Literally: Using Innovative Marketing to Disrupt and Capture Consumer’s Attention

Mike Bascom, Director of Marketing, AB InBev Canada

AB InBev is an incredible brand. We have over 200 beer brands around the world with

more than 25% market share for beer. Today, we are going to talk about Shock Top, a new

brand we just recently launched in Canada. I will take you through the strategy, some of

the work we created, and the results, the most important part, and ultimately where we

head it into the future. All good work starts with good strategies. Now strategy is in the

neighbor who guarantees creative work, a good result. A good strategy will ultimately

lead to that stuff, bad strategy is almost the guarantee for bad creativity and bad business

result. What’s happening in the marketplace around you every day? Please look at Figure

1: What is the common uniting feature of all these items, like lobster, shrimp, avocado,

blue cheese? Anybody has any idea what unites these items? No guesses? Okay, if I add

three more items to this list, vanilla, chocolate and strawberry. All the same category, now

any ideas? Did I hear ice cream from somebody? They are all ice cream flavors. Again they

prove the idea of choices in the world. There are choices, which used to be a luxury variety.

You look at TV channels that increase in tenfold; retailers are adapting the choice in market

by increasing the store size to provide more choices for consumers. Many categories have

tried to differentiate themselves by becoming overly complex. This is especially true in beer

category, with numbers of styles increase tenfold last year as well. There is North America

IPA, English IPA, West Coast IPA, East Coast IPA, and IPA you brewed in your backup. You

can put blueberries and fresh sock into the recipe. Everything is being tried right now with

more differentiation and variety, but it is very complex and as a result to that, consumers

are totally overwhelmed. Therefore, we have to figure a way how to stand there from the

ground, how to differentiate ourselves and make us different in this cluttered environment.

“Give the brand a voice and let it speak for itself”

Marketing Sub-Forum


(Figure 1)

We also have to understand our consumer. We target them and simplify them dramatically.

We target millennial because they have special choices, but the consumer is totally difficult

to connect with. They don’t reject advertising, they don’t reject brands, they are willing

to pay a little bit more for products offering them what they desire. And what it counts

in advertising is stories. They are looking for storytelling. If you can connect this with

consumers, if you can harness this with consumers, they will be your greatest educator, and

they will share your messages far more efficiently than every dollar you spend on media.

Taking all this stuff into consideration, we are identifying the white space (Figure 2) where

there are very few premium brands. Most turn to be serious. We wish to see our brand with

big personality and colored character. Shock Top is the beer got unique qualities too. Our

beer is unfiltered, very refreshing and there are very few beers offer that favor, which is the

good selling point for the beer. This is its big personality.

(Figure 2)

In 2006, we introduced the most famous American brand to Canada for the first time.

First we came to Canada and we needed to develop concrete idea to leverage the brand.

However, in the US the brand is quite established. So we need to establish ourselves to

drive the brand as no one has heard of the brand in the country. So we gave the beer a

voice to let it speak for itself. It told people what the liquid is, full flavor and unfiltered.


Video: Shock Top – Canadian Beer Brand

This is one of the pieces of the content we created last year. Authentic, real situations

engage with our consumers. All are in the discussions with the consumers. We use at-home

billboards, wild postings, and animatronic TSAs. We actually have motion sensors, when

someone walks by, the transact shouter would engage the consumers with prerecorded

voices. The critical and the biggest key to some of success we had in communicating with

Shock Top is around social media. When the movie just came out it received fabulous

effect. We knew consumers would talk about it in social media. We wrote some post and

we got some videos, we filmed, we got a bunch contents that we can put over there in

the market when the conversation started. Sometimes it is very difficult to react to this

really quickly. And you become part of this conversation organically. Was the dress thing

in China? (Figure 3) Yeah, dress is everything everywhere, it’s blue, it’s gold. We are able to

join the conversation quickly, because we set up a very clear view for the brand. In terms of

the voice we can have the color and we can speak to our consumers. This is an example to

quickly evaluate the content internally, so my team evaluated and passed to the legal team

to ensure we get the approvals very quickly, and then most importantly, we can quickly

put the fuel on fire. We can amplify it and we can keep the conversation going.

The last video achieved 125% of awareness target, doubled the value in Shock Top in

Canada last year. Achieved 131% of digital view target, 52% engagement for “the Dress”.

That’s pretty good in Canada. A couple of awards which are nice to have, but most

importantly again consumers are loving it. They are taking the conversations which help us

amplify our messages. This Logo is very special too, because it talks.

Video: Talking Beer Tap

We’ve learned a lot in one year, communicating with Shock Top in Canada. Most

importantly, we engaged generally in the world for this brand in this country and we had

built a soft foundation. What should we do next? What matters most to our consumers?

It is that variety and flavor that the beer can offer them. Therefore, we ought to enrich the

flavor of beers to meet the demand of our consumers. Now we have launched a video. Just

watch whether it brings the same effect.


This is our 2.0 advertisement, which helps deliver the message of flavor, ingredient,

wheat and orange flavor. These are some static ads (Figure 4), which actually engage with

consumers when they pass by.

This is in bathrooms. “I detect the scent of wheat, and orange peel. Good on you.” So in

bathrooms we get the jokes. Consumers seem to like it.

(Figure 3)

The Hot Blue-Golden Dress in WeChat I will show you the first video, which is the experience we created the Shock Top.

http://v.youku.com/v_show/id_XNzQ3NDIxNTY0.html?from=s1.8-1-1.2

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It is a really short to the point. Again attention grabbing. All of these dealt with very small

budget. So keys to success for us: 1. We identified a white space in the craft beer market. 2.

We identified a relevant consumer insight. 3. We gave it unique voice. 4. We used disruptive

advertising to break through the clutter and stand out. 5. We found a way to be nimble

with our digital content which allows for real time, for quick responses and engaging work.

(Figure 4)



Scent Branding in a Multi-sensory Context

Simon Harrop, CEO at Brand Sense, Founding Director at The Aroma Company

The first thing I am going to get you to do is to wake you up and do some work. Please see

Figure 1.

On that sheet of paper you need to draw a pentagram like this. And on each axis I want you

to mark it off from zero to five. Cross the top sight or vision, sound, touch, smell and taste.

And then what I need you to do is as a team design how well the brand that you represent,

score itself from zero, very badly, to five, as good as possibly could be, in terms of the

impact it has on the consumers across each sense that impact both on communications

and product experience as well. When you score it, just put a little cross on the axis

wherever it may be.

“Break your brand into pieces to see which part can tell the brand name.”

(Figure 1)

Marketing Sub-Forum


I am a multi-sensory branding consultant. I set up the company which was primarily

responsible from 1993 about looking at new ways the brands could communicate with

consumers. I was really interested in the sense and smell. But with a lot of this research

I found out some really interesting things. Such as this, this number 865,000 is actually

the number of TV ads at average child in our modern world will see and be exposed to

every single year of their life. By the time when the child reaches the age of 65, and by

the time they retire, they will see 2 million TV ads. If you think of the average length of

average TV ads that equate to 6 years about child’s life being exposed to TV advertising.

Does everyone therefore have the ability to remember what we see? No! The more we

expose to visual messages the more we suffer from visual overload. Therefore, a brand also

needs to think about the impact across other senses, which I am talking about. From daily

messaging, broadcasting media messages increased by 400% over last 20 years or so. And

83% of all brand communication people received is visual. In fact, where the brain works is

the visual communication goes to the cortex which is the rational part of our brain. But we

can miss interpret. I am going to play a video now. Where I want you to see is focusing on

the team wearing white while they passing basketball, and they passing the ball between

themselves. I’d like you to count how many times they pass the ball between themselves,

okay?

Video: Basketball Passing Test

Did you notice anything unusual? A gorilla? Now you really missed that is called inattentive

blindness. You have a task to do. You focus on your task, and you miss the value of gorilla,

because your sensitive sight is possessed by your brain cortex.

Video: Illusion of Dragon

Dragon sitting on the window edge, its head turns and twists with us when we move

around. It’s not moving at all. I formed business Brand Sense Economy in 2006, which

carries out research to look how brands and how consumers consume brand message.

What we found is the senses are very much imbalanced. So consumers rated sight very

important. But look at the other senses, they are imbalanced.

(Figure 2)

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(Figure 3)

And yet we also asked marketing directors in Fortune 500 companies how they spent their

marketing budgets. You can see there is huge imbalance here. Smell, touch and taste only

accounted for about 4% in marketing budgets. And yet look at how this sense imbalance in

terms of what consumers would have related to the brands they love.

I think our relationship with brands from rational to emotional, or from what we aware of

to what we even not thinking about (Figure 3). I think most research points to the fact that

this is an emotional and unconscious relationship.

I would like you to imagine that you are single, and you are at a party. You are going to look

around the room to see someone who might be attractive. And if you see someone who

is attractive, you might drink the wine and prop up the courage to go and talk to her. You

may think she is quite nice. Everything goes well. Maybe the music cracking down, soft

music comes on, and you put your arm around her, you go to the dancing floor, you start

dancing, you go closer and may smell her wonderful flavors. If everything is going really

well, at the evening you might get, I am talking kiss. You might get to kiss her. For me this is

a spiral towards human relationship, and what I would call intimacy.

（图 4）


(Figure 5)

The really interesting thing is that the spiral towards intimacy is exactly the same as our

relationship towards brands (Figure 4). The most intimate part of our relationship with

humans actually quite fits the food and beverage industry. You said you can’t taste Lexus

or BMW, but you have unique opportunity to be intimate with their consumers. As a result,

my job is to do sensory branding and identify the sensory elements, or establish intimacy

with consumers, and populate that spiral intimacy with sensory brand attributes.

In 1915, Coca-Cola Company chose their packaging suppliers because even this bottle

dropped on the floor, and broke into 100 pieces, people barely picked up one of those

pieces and still recognized it was a Coke bottle (Figure 5). A bartender could put his hand

into a nice box and pull out the Coke bottle. So it got us thinking if you smash your brand

into hundreds of pieces, you took away the logo, what’s left? Is the shape? Is the color? Is

the sound? Is the smell? Is the touch? Apple from the white headphone that consistently

uses white in the technology became a smashable part of the brand attribute. What

about this brand? Welcome to our Kingdom, the place where creativity and fantasy go

hand in hand spreading smiles and magic at every generation… Can anyone name the

brand? Disney, the smashable use of language. They have to use magic, family, smiles and

generations.

A few years ago I was presenting this in Paris. I was talking about McDonald’s - how bad

the McDonald’s smell was. I didn’t know the McDonald’s marketing director was in the

audience. And he came up to me after the lecture. He said, “We know we have the problem

with this smell. Can you help us? Can you turn that bad smell into a neutral?” And I said

to him you know we can do better than that. I think we can take your brand values and

create a fragrance with McDonald’s signature fragrance that you could put in your cleaning

products, so when you mop the floors or clean the tables, that smell would become

associated with the McDonald’s brand experience. What we did was we created fragrance

and did some research. We did functional magnetic resonance imaging with McDonald’s

consumers and we found the brain which lit up for McDonald’s name lit up for the smell.

It was like fireworks going off in the brain. The emotional response was multiplied.


(Figure 6)

So through sensual communication the more senses you add, and the stronger your

pentagram becomes. You actually multiply the emotional engagement.

We also did some research for the National Post Service of England. They wanted to look at

the direct mail. We took a piece of brand communication, a visual piece of communication,

and we printed this on a piece of paper, put in onto a digital screen, then we introduced

consumers to the scanner, and we scanned their emotional response both to the piece of

paper and exactly same imaging message on the digital screen. This was what we found.

Because the paper has a sense of place, you could touch the paper that has the relationship

with your body. The words and pictures on the piece of paper would be much more real

than the image on digital screen. There was more emotional response to the piece of paper.

It was more real and it was more emotional engaging.

What I do is I have a process and coach each brand to think about this (Figure 6) more

holistically. Meanwhile, we help clients to transfer this knowledge and ideas into their

business. The interesting thing is when you engage with your consumers on the sense of

smell. Because it goes to the emotional sensory brain, bypass is rational cortex, when you

engage them emotionally, which drives brand loyalty, not just short-term sales uplift, but

long-term brand loyalty and create brand intimacy.


HP Digital Printing for Food & Beverage – The Art of Possibilities

Nancy Janes, Worldwide Programs Director for Brand and Agency Marketing, HP

“Packaging is the last interruptive media, but use it wisely”

When we think about packaging, its primary purpose really is

to do two things, one is to protect and the other is to promote,

that actually become the last moment to truth.

Years ago, you will have an engraving, and that would signify

the ownership of something. As you develop, trust and

emotion starts to build. But where we are now is in a world

of emotion and love, because people want to feel special.

And particularly for this generation, some culture called it

the me me me generation. I think you Chinese call it the 90s

generation. Bob McDonald, former CEO of P&G said “The

eventuality of the world, is a one-on-one relationship with

every consumer, so the first company in the world, that’s able

to create that one-on-one relationship with the consumer by

definition, will win. It’s all about me. Which is a bold statement

to make – will win.” Digital prints would enable you to win

by addressing some of the touch element, which will bring

special experience for this group of people.

(Figure 1)

(Figure 2)

Marketing Sub-Forum

When we think doing survey with young children, and

you ask them which they prefer to read a book online or a

printed book, they choose the printed book. The statistics

show the lifecycle of a product is declining, so the brand is

having to have more thoughts, more ideas, to make the life

of that product live longer. The number of SKUs is increasing

tremendously (Figure 2), partly because customers want

choices, so whether it is individual, personalized package or

whether it is version package, the number of SKU is increasing

because the consumers are becoming more sophisticated.

Digital printing needs to be looked up for two specific areas,

one would be the short run and the other would be value

added.


The HP Indigo technology is very unique in the number of

colors it can print. This gives brands confidence that they want

to do a job on a digital press. Everything will be as it should

be and the brand promise would be with an uphill. You may

as well do it digitally, because conventionally it will cost a lot

of money. Besides, the turnaround time is speeding at market.

If you do have a look at your bottles, I’d like you to pick them

up and compare it with your neighbor’s bottle. You will see

three things. One is your name printed on your bottle and

your neighbor will have their name on. It has unique number

on it, which is also on your bag. And every bottle has a unique

image. In total I think we printed 1,600 bottles, but there

are 400 unit designs, which were done last week by using

software called mosaic. The mosaic software mixes those

images to ensure that everything is unique with consistent

color but different names. Coca Cola used the mosaic software

as well and they launched it in Israel. Consumers can go online

and order a T-shirt with that unique pattern on, or they could

have a phone cover with the unique pattern on.

Irn Bru is a Scottish drink, and what they did was that they

took the top 57 Scottish tartan clans, each of which has an

own tartan (Figure 3). They printed the 57 clan tartans as

the labels of Irn Bru. Each clan has a name, which was also

printed on the top. And it was launched for a big celebration

event in Scotland in January. The sales were more than 20%

above normal sales, because immediately people found

association to the clan and community. This morning, one of

the presentations said one of the biggest selling products on

the Internet was pet food. I think the first one was dogs and

the second one was cats. In America, this is digitally printed

pet food bag. You can choose the recipe from online and print

your dog’s name on the package. The normal similar dog food

is 11.99 dollars for the same size. This bag is 24.99 dollars, just

because it was the recipe DOLLACE chose. It has Dollace’s

name on it and the dog’s name on it, which was the famous

brand PURINA, so people are prepared to pay double for

things that mean something to them. But digital print enables

you to meet those needs.

(Figure 3)

Coca Cola came to us and they asked us if we could work with

them to do something very different. What Coca Cola do is

very brave and very exciting. They wanted to print individual

names on Coca Cola bottles (Figure 4). They took the top 150

names in the chosen geographies, and then print the top 150

names and they put into the distribution process, and put

them into store. It was called “Share a Cup of Coke”! When

you went to the store, you would look for your name or your

friends’ name, and the whole campaign was sharing coke, you

would buy one for your best friend. For the retailers it was a

nightmare because the shelves were in a mess as people tried

to find their names, but for the consumers, they loved it. Over

3 billion labels have been printed for this campaign. It was a

hybrid execution. The base stock is printed conventionally and

the names are over printed with the HP INDIGO digital print.

Women are the people four times likely to purchase food and

drink with personalization on them. Women typically will buy

for other people.

(Figure 4)


Our customers are printing companies in a variety of different

fields. These customers are around the world that we work

with when brands would like to execute a world-wide

campaign. Hopefully you will think about piloting, but it is

not a standard order. Digital print is not for every product and

segment. It is for specific product and segment and specific

consumers. We saw that women are probably the segment we

want to go after. Your internal supply chain may need to work

on. When there is will there is a way. Technically we can solve

most of the things. Some of the primary packaging will need

to do some food testing, such as the baby food. You need a

local champion within the brand.

I want to do something different because I want security,

personalization and customization. We are very open to

do a trial. “Packaging is the last interruptive media, but

use it wisely”. A lot of money is spent on advertising. Just

by diverting some of that money for the incremental cost

in digital printing, which could actually be the difference

between sales growth and loss.

(Figure 5)

(Figure 6)

When you are thinking about the supply chain, the supply

chain cost reduction should be had because you can test the

market. Think about the example in France, they launched 20

new products. Conventionally they probably would launch 5.

I got a brand in the UK who wanted to get a new product to

store quickly, so they just printed the first two weeks digitally.

Time to market is accelerated. It can be very flexible how you

use it, when you use it.

I would like to talk a little bit about brand security and trust

element at this moment. Counterfeiting is very serious

problem all over the world. These figures are estimated on the

impact, not only in revenue, but on jobs and safety. So it is a

very big problem for registered brands. They need to protect

their brand promise. One of those ways is to use tracking and

trace elements through the cloud. (Figure 5)

I will show you some track and trace protective security

elements the indigo digital print can enable (Figure 6). By

doing this, because it is digital, every single one can be

different. You can change it every single day if you want to,

or every single week. When you have issues about brand

protection, this is the things you can look at. On this example,

with the wine labels, the big label is printed conventionally

and the little label is printed digitally. Actually the volumes

of this wine would not make sense to print digitally. It’s more

efficiently conventionally. By putting little label on, you can

get the brand protection and your ability to manage the

security through the supply chain.


Fink (Think) Different

Graham Fink, Chief Creative Officer, Ogilvy

“Take everything off and leave that can catch attention”

Video: Funny Cadbury Eyebrow Dance

There’s no product demonstration. It was so different, when it came out, everybody was

talking about that ad. People would talk about this ad. What it did? I believe that a single-

handedly change the way the clients thought about advertising in UK.

It is about doing what stands out that people would talk about brand building. That’s what

I want to talk about today, to stand out, to think different. Hopefully today I can inspire you

with some advertising. It sells products but it also helps build the brand. Not long ago TV

was perhaps the easiest way to build the brand, but it was very expensive. These days it

still is hugely effective. I am going to talk a bit about social media because the rise of social

media changes in the way the brands can be built. First of all whatever you do, you need to

stand out, and be different and get noticed and of course be remembered.

I actually found out advertising media in Mainland China last year. Did anyone know how

much we spent on advertising media in Mainland China last year? Altogether, 62 billion US

dollars have spent on advertising media last year. To me, not very much things stand out. If

it is true more and more brands are coming from overseas into China, people get choices

they never had before. It puts a lot of pressure onto brands. The changing strategies and

policies make the real people confused. Advertising message keeps changing. Basically it

has a damaging effect on the brand if you keep changing the message.

Building brands takes trust. Since it is a food and beverage conference, I thought it will

Marketing Sub-Forum

http://v.youku.com/v_show/id_XMzMwOTkyMzI=.html?from=s1.8-1-1.2


be very appropriate to talk about cars. A British humor for you. Why the car is associated

with food and beverage? Because there is one car brand out there has been talking about

the same thing for 50 years. They have been consistent in their tone of voice, and they

have sent the same message in many different countries, in different cultures, in different

languages. So, what is that brand? VW. In 1960s, in America, just imagine that all the cars

are huge, every car was very big, spacious, luxurious. All in a sudden VOLKSWAGEN came

with its tiny, little ugly car for the Beatle, affectionately known as the Bug. It just flew

against what everyone else was doing. This is the brand that thinking differently. They

found great USP about this brand. It’s reliable. They just went on about it being reliable. If

you look at any VW ad, the core message in VW over years is about reliability. When she got

a message, just keep plugging away, and even if you change end lines, keep that message.

Everyone knows VW is a reliable car, that’s true. In social media you really need to pick a

product truth.

Coca-Cola had a word, which is optimism. And all of those stuff is optimism, so it is simple.

That was made in 1971 and the only thing was really dated was clothes, maybe their

hairstyle.

Video: I’d Like to Buy The World a Coke

The craft, the love and care went into that film making. It is beautiful to watch again and

again, which reflected the brand values of Coca-Cola. This is the next one. Most creative

people love to study the ads, but a lot of countries around the world the way they do

research is not true to real life. People don’t say what they really think. And they don’t

think what they really think. I think in the future, they will tap into people’s brain, so they

can find out what people really think. But this comes out from research, and actually that’s

really very good because something really good come out from the research. Like Coke’s

optimism.

Video: “Happy Reborn of Coca-Cola”

It is a poster we did with the help from a 19-year-old student (Figure 1). There is no QR

code, no web address, no headline or body copy. There is nothing. It is just simply shaping.

What everyone knows there is a Coke totem. It turns into two hands sharing a coke,

optimism, friendship. Actually this ad won us many awards, the most awarded Coca Cola

ad in its long history. What I love about posters is that it has to be simple. People put all

the stuff on that, which will make it less effective. Our clients maybe love to plus up stuff.

As a creative director, I always try to get rid of these things. Just be simple, take everything

off. What you should put out there should be engaging, beautiful, because every time we

do a piece of work, it goes into culture. Figures and data are what clients think it really

important, but most people get ignorant about it. People aren’t interested in what we do

and advertising. They are interested in picking their kids in the school, or what they are

going to have in dinner, or what is about the next meeting. What we do has to be different

and stand out.

http://v.youku.com/v_show/id_XMzcyMDY5NDg4.html?from=s1.8-1-1.2

http://v.youku.com/v_show/id_XNzE2MDUzMzU2.html?from=s1.8-1-1.2


The best social media isn’t social media. We spend a lot of time doing social media

campaign. That a lot of people just put a version on wechat, or weibo now will do. Really

great ads become part of social media, because people talk about it.

This is an online digital map (Figure 2). This piece of film looks like a giant painting. They got

people to send photographs of themselves. These are all online. Maybe millions of people

send photographs and there is everyone. You click on it and then your name comes up, and

so link to the films. This ranges the world campaign in Brazil. It’s just a simple message. If

you upload your picture and want go on there. Have a look. Finally on coke, it’s one of my

favorite films. Wish I did this one.


(Figure 1)

( Figure2)



Baidu Moments

Zhao Ting, General Manager of Baidu Key Account Department, Baidu

“Technology can teach you marketing or take you to the past and the future”

Under the context of big data and technological reform, Baidu is definitely an important

participator and even a constructor. I’d like to share with you some of Baidu’s viewpoints

on data research and marketing. The first part is about the environment we live in, the

challenges and opportunities. The second part talks about the challenge-and-opportunity-

based brand-new marketing methods promoted by Baidu. The third part discusses about

Baidu’s predictions of what the society and we human beings will become in the next one

or two years.

Among the challenges and opportunities in the new media environment, what comes first

is the uncontrollability of marketing. People are facing hundred of billions and trillions of

media, their common feature being the rise in price. A medium will definitely price higher

as long as there’s enough confidence in its own precision; the imprecise counterparts are

also increasing the price. This will inevitably result in marketing uncontrollability and a

worsening ROI. The second one is the changes in consumers. No matter it’s traditional

media, the Internet or wireless internet, the core of changes lies in consumer behavior. If

you want to target at consumers and try to influence them, you have to know what they

are thinking about. Thirdly, faced with nowadays changes in consumers, fragmentation of

media, and people’s spilt time, how can you find the exact activation points? The fourth one

is media diversity. Generally, challenges coexist with opportunities, and the four challenges

above at the same time throw light on two great opportunities, – one concerned with

technology and the other data. (Figure 1)

Marketing Sub-Forum


(Figure 1)

What has happened to the abstract technology? Two years ago, we wouldn’t know that we

can choose media of communication even before we start off. It was also unimaginable

for us to choose a plane with the highest on-time performance for our travel or business

trip; we were not aware that the age of the servicing plane would be accountable for travel

safety.

The second opportunity is data. According to Absen, the quantity of data and information

during the last two years is equal to the total amount over the past thousands of years.

Therefore, we predict that the data volume from 2010 to 2020 will be 40ZB, equaling to

the capacity of 57.5 billion 32G-internal-storage iPads. Here exist great opportunities,

one related to marketing while the other possessing unpredictable and undeterminable

significance to the human beings and the society.

By virtue of that, Baidu Marketing College has concluded the four tendencies below

(Figure 2):

Firstly, available consumption. As long as you make me feel that my needs will be fulfilled,

I'm willing to consume immediately. The decision-making chain from my thought of

consumption to the actual purchase may even take less than one minute. That can be

realized.

Secondly, intelligent interaction. The adoption of an interactive technology can help make

the potential consumer in Beijing experience all the facilities and value-added services

provided by Chateau Star River Pudong Shanghai. He/she can book if they feel satisfied.

Thirdly, fragmentation touchpoint, that is, how to detect him/her during the whole process

of consumer behaviors.

Fourthly, panorama data, which means the total integration of data, including that of

different media, e.g. PC and wireless internet, traditional media and the Internet.


Based on the 4 tendencies above, we put forward the conception of ROOTS (Figure 3).

Here, R means a method of the overall Real-time Tracking/Auditing for users. The first O

represents Occasion-Based Identification, i.e., scene marketing, while the other O refers

to On-demand Proposition, which is to meet users’ demands. T is Cross-Touchpoint

optimization, coming into contact with every touchpoint of consumers. The last S is

Sensory Communication, a kind of complete sensory communication.

(Figure 2)

(Figure 3)

In the first place, let’s take a look at the real-time consumption. Firstly, dsp, ddp and dmp

– these labels of various dimensions classify consumers into different groups based on

market segmentation so as to make sure whether a customer is a valuable target. Secondly,

division of consumer context, which further studies whether the targets fit the product

brand. Last but not least, scene picture of people, i.e., the description of consumer’s

psychological, daily and actual behavior.

If you have ever used the navigation launched by Baidu Map in cooperation with Master

Kong Green Tea, you will know about the walking mode. Master Kong Green Tea promotes


the green shade of health, as well as the idea of exercise and walk, for which reason the

enterprise chose to cooperate with Baidu Map and launch the walk activity. That’s the

essence of the case. After a user finally arrives at the destination, Li Yifeng (a cartoon figure

as the image spokesperson for Master Kong Green Tea) will tell him/her the total distance

covered, the time it took, the speed and energy consumption. Besides, the user can also

take part in such activities as score accumulation – friends are ranked based on the scores,

and what’s more, the collected points can be used to exchange for prizes. First of all, it is

really a good marketing case. Secondly, Li Yifeng takes full advantage of celebrity effect

to realize an all-win situation among himself, clients, users and Baidu. The navigation not

only highlights the brand image of green tea, but also attracts more fans for Li. Baidu Map

profits from it, and for users walking is no longer boring but an interesting game. Thirdly,

our statistics show that since the activity has been launched for two or three weeks,

350.9million people have participated, walking some 600,000 kilometers altogether.

Next let’s move on to the on-demand positioning in “ROOTS”. First, have you satisfied

consumers’ demands? Is it necessary to conduct further communication and update

your products? Second, brand recognition. In addition to propagation through media

combination, what are the appealing points of your originality and marketing? Is your

spokesperson really helpful? Third, competitive product monitoring. What are your

competitive products? (Sometimes they may not be the ones as you think.) And what are

the differences and similarities between your products and those of your competitors?

We have begun our research on Baidu spokesperson releasing tool since 2013. Indeed,

the spokesperson is of great importance to a brand. The basic historical data of Baidu

spokesperson come from the following: 1st, UGC – information and comments targeted

at celebrity output; 2nd, activeness of celebrity-related searching; 3rd, general tendency,

including the role he/she plays and the brand he/she speaks for. The year before last,

Baidu and PepsiCo jointly launched the news conference to search for the spokesperson

for PepsiCo, and Wu Mochou was selected. At that time, Pepsico insisted that its brand

spokesperson should not be chosen on the basis of individual judgment: the person that

the boss likes may not be popular with the consumers. Instead, the decision right should

be given to the consumers. So we chose Wu. After more than one year, it turns out that not

only the company brand has been promoted, Wu’s personal image is also on the rise.

In fact, we do not just help brands find the ideal celebrities; we also help celebrities find

suitable brands. Built upon big data, the tool we use can intelligently select spokespersons.

There include two parts. The first part is the celebrity matrix of 2 indexes and 5 dimensions,

the 2 indexes being the quantity and activeness of data respectively and the 5 dimensions

relevance, engagement, attention, association value, and the online storage based on news

data.

The second part is the coefficient indicating the agreement between brand value and

celebrity value. Shiseido chose Zhou Xun for her values in the brand matrix as well as for

the fact that the star’s internationalization, feminization, sense of responsibility and the like

fit its brand image. More importantly, they both have no scandals, or she has few scandals,

to be exact. (Figure 5)


(Figure 5)

Thirdly, intelligent interaction, which, on the basis of technology realizes marketing reform

in the real sense and enables users to experience product functions without going to

the physical stores. In 2014, we cooperated with Mengniu in the entire industry chain

visualization program. There are three two-dimension codes on the package of Mengniu

products, pointing to supermarkets, pastures, and processing plants respectively. Through

the scanning of these codes and the employment of LBS technology, one gets direct access

to the industry chain and sees the whole processing at the milk source bases.

The whole F & B industry is confronted with the common problem of food safety. We have

tried many ways to make consumers trust brands. A very famous milk producer once boast

that during the last decade it had invited 1 million consumers to check the quality of milk

source and the processing at pastures. However, Mengniu’s industry chain visualization

program has made it possible for more than 100 million people to check food safety with

their own eyes in merely several months. Therefore, the former now is discussing with us

another visualization project; we cooperate through positioning, intelligent equipments,

and resources of other channels.

The fourth is about fragmentation touchpoint. Below is an activity carried out on this

Valentine’s Day (Figure 6). At that time Lenovo launched s60, a female-oriented mobile

phone. So a marketing case was conducted on the basis of female mentality. Firstly, on the

Valentine’s Day a Cupid appeared at the search engine and shot presents with arrows. The

presents hit, whether it being a Lenovo mobile phone s60 or some coupons, were awarded

to the boyfriend/girlfriend of the winner. Even if missing the phone, winners could get

some discounts in stores with these coupons. Another activity was related to love letter.

Participators wrote the love letter and sent the digital codes generated to the recipient.

Then the latter could read the wishes in the letter by simply inputting the code in the Baidu

search box. (Figure 6)


(Figure 6)

Rather than focusing on marketing, the last part is about changes in the future achieved by

data and technology.

Li Yanhong put forward the proposal of establishing “China Brain Program” at the 2015

National People’s Congress and the Chinese Political Consultative Conference, hoping to

enhance the overall innovation level in China. According to Li, the main research scopes

of China Brian will cover intelligent human-computer interaction, big data analysis

and prediction, automatic drive, intelligent medical diagnosis, intelligent unmanned

aircraft, military and civilian robot technology, etc. The program is to support competent

enterprises by building artificial intelligence basic resources and public service platform.

Depending on the unified platform, the resources will be open to different research fields

and innovation in high-efficient collaboration with social resources will be conducted.

What are the past and present of China Brain? We think it can be traced back to as earliest

as search engine. Submit your requirement, and the engine will respond you with large

quantities of texts to fulfill the needs. Search engine is symbolic of the first generation of

China Brain and it is an era of text message. The second generation was also put forward

by Baidu CEO Li Yanhong in recent years. What Baidu wants is to develop from a link of

text messages to one between people and services built on technology. First, what will be

conveyed become multimedia, picture, voice and video rather than pure texts. Therefore,

Baidu Brain is the predecessor of China Brain. Actually when it comes to the China Brian

today, it is no more necessary to consider Baidu, search engine, the Internet, mobile phone,

or wireless network. Then what is it? China Brain is the total information in the period of

two years; it is the combination of all the past information. Apart from being applied in

marketing, the data can be used to make national and even international decisions to help

us perfect human being’s future.

Just imagine that all medical data are connected. Then the problem that a doctor has

to refer to a large number of data before making suggestions regarding the treatment

of the patient will definitely be solved. As for diseases prevention, the physician will be


able to make predictions about what the recent epidemic diseases might be so as to take

precaution measures. When employed in transportation, maps will not only help you plan

the whole route and choose the correct means to avoid the congested roads, but also

offer advice to the transportation plan and construction at city and nation level. Last year

we made a prediction of the College Entrance Examination. 12 out of the 18 tests were

used. Why? It came from the information and examination questions users searched, and

the knowledge they demanded. I can help to get a higher score, and can provide more

new education-related materials for the user. Take air pollution as another example. There

also exist a great deal of reference materials on prevention and controllability. I only list 4

industries as instances: medical treatment, education, transportation and environment. In

fact, different aspects of the society, economy, politics…, can all be handled through big

data and technology. Of course, there are more areas to be improved.

What we are doing now is only the tip of the iceberg. Share with you the “Baidu Image

Search”. It is a public activity we are carrying out now. 12 buildings were destroyed to

varying degrees in the Nepal earthquake. As Baidu has large quantities of pictures of these

buildings before the earthquake, it cooperated with Google to make technical processing.

They tried to rebuild the 12 buildings by taking advantage of three-dimensional and

panorama analysis. As to unmanned driving, last year Baidu collaborated with BMW to

produce unmanned vehicles, unmanned electrical vehicles, pilotless aircrafts and pilotless

bikes. I believe in the near future, maybe within five years, unmanned vehicles will be

seen everywhere on the streets. Other demands Baidu can meet include air conditioning,

functions of GPS and voice broadcast. Besides, the service of cloud technology can directly

find our information: when going abroad, we can input foreign languages to get them

translated immediately. (Figure 7)

In the future, such kind of online interaction and communication will certainly become an

easy thing, but what Baidu is thinking is whether they can better satisfy users’ needs and

bring more welfare to people.

( Figure 7)


Life of Advertising Guys

Lorraine Yuan, Vice General Manager of Sales Department, Microsoft Online

I don’t know since when the advertising guy has become a label. When it comes to

advertisement experience, should we care more about user experience or customer

perception? How can we strike a balance between them? We hope that an advertisement

will be softer so as not to arouse rejection in users. This requires changes in from channels

to contents.

Microsoft is one of the world's best technology enterprises and we are discussing what

technology can bring to internet marketing and internet advertisement.

Although How-Old.net is extremely popular today and can be combined with many brands

of cosmetics, we had no idea how to use it when the technology was developed three years

ago. There are so many Apps that are hot today but will disappear tomorrow. Analyzed

from the aspect of marketing, technology is to bring user dependency and realize much

longer marketing.

Last year we found it out that the strongest relationship between people is emotional

communication, rather than technology or product. Therefore, products have been made

focused on emotion since then. We developed a pair of artificial intelligence sisters, with

the one at the voice client named Cortana and the other at the text client Xiaoice, both of

whom are really popular in the IT circle. Xiaoice has gathered 20 million users within merely

one month since her birth. Among them, 27.8% people talk with her at 11 pm to 2 am, and

15% are willing to reveal their innermost feelings to her, the monthly average amount of

dialogues per person reaching 1,200 sentences. (Figure 1)

Marketing Sub-Forum


(Figure 1)

We hope that the commercialization of Xiaoice can bring advertisers and clients different

experience in searching at no cost of user experience. Take the example of cooperation

between Xiaoice and Haier smart home. By dialoguing with Xiaoice, you get direct access

to remotely control all Haier intelligent electric appliances at home.

Also, you can find Xiaoice in 360buy app (of JD.com). Perhaps, Xiaoice will take users to the

stores where we’d like them to purchase. She has completed more than 10,000 such orders,

which has never been done at any intelligent ends or customer service ports. Unilever

uses intelligent Xiaoice as their customer service staff, replacing human customer service.

It is expected that Xiaoice will placate and get back those giving bad comments, clean all

zombie fans, help them know more about the competitors and make in-depth analysis.

Xiaoice has a very clear commercial positioning, that is, foreground word-of-mouth

marketing, which conveys brand influence and product information to target user groups

by virtue of soft dialogues.

The background technologies of sentiment analysis and detection explain why Xiaoice

knows about you (Figure 2). In other words, when you talk with Xiaoice for the first time,

she knows nothing about your character. However, with the increasing dialogues and the

longer time, she gradually understands you and becomes your friend. About 88% people

once asked Xiaoice, “Indeed are you a robot?” They don't believe she is a robot since she

knows them too well.


The cloud picture recognition technology of Xiaoice makes her skill of “Xiaoice Knows

Dogs” become the most popular one. Send Xiaoice the two pictures of an Alaskan and of

a Husky, which are difficult to distinguish, and she will clearly tell you which one is which.

This function has helped us a lot in establishing good relationship with clients engaged

in pet food. When talking with Xiaoice, many users will ask her that “is it good to feed my

dog these things”. Xiaoice will recommend to them what will be better; of course this is

supported by scientific reasons. Taking advantage of the cloud technology, Xiaoice can

even recognize shampoo bottles without logos.

Therefore, during practical application Xiaoice will not cause any bad feelings in its users.

On the contrary, people won’t feel that the information is forced upon them.

Our latest technology is Skype Translator. When you are talking with a foreigner on Skype,

what you talk in Chinese will become English for him/her; similarly what you hear will

become Chinese. With English, Spanish and German having already been applied on Skype

Translator, Chinese – the most complicated language – is the last one to be integrated.

Soon, we will input this technology into Xiaoice as well.

In a word, all the changes we make in marketing are aimed at bringing spectators the feast

we stick to, and making them unconsciously interact with our advertisement originalities.

We hope to conduct emotional communication with you. The appearance of Windows

10 produces huge room for us, giving full play to our technology. In addition, seamless

connection, which can directly connect ios and Android apps to the operational system of

Windows 10, has been developed. The ecological environment for windows 10 has been

accomplished with sufficient quantity and participation of so many players. It brings us two

very cool experiences: when going out, you will never again need to take your computer

with you, as all of your materials can be stored in the cloud space of Microsoft. As long

as you find any screen and plug it in, your Windows can automatically adjust its size to fit

connection so that all your things will be displayed. It can truly realize the cross-screen

display.

(Figure 2)


The last one is our spectacles.

Video: “Microsoft hololens” – Microsoft holographic virtual spectacles

Holoens has come into the market in America and they are selling well. In fact, the new

product is a kind of holographic imaging, linking the real world with the virtual one and

producing a brand-new way of education, learning, cooperation, exploration and creation.

You can change the world you see when you change the way how you look at it.

http://v.youku.com/v_show/id_XODc3MjQ1MjAw.html?from=s1.8-1-1.2


want to take the position that was very much definitely

away from product and price is overly rational, talking much

more to inside and the emotional sensibility in McDonald’s

restaurants. It is about the moments together and then

obviously we want to express what that means.

Video: Never a Stranger

I mentioned this case in particular to go back to my original

point, because they are really for me a lot to do with the

kind of innovation that we see happening for times in China.

We need to find a voice to connect with local culture, but

also in line to global positioning of the brand. I think as an

advertising agency, we have the responsibility to work with

the brand to help develop this kind of things.

For us, it’s a simple thing you coming from the advertising

agency side I guess when you play with technology on behalf

of your clients, is really about looking for ways in which you

can use that technology to enhance the brand experience of

the clients. Therefore, we look for ways to make the experience

more interesting and communication more interesting. What

we are looking to do with technology is to enhance the brand

story. For instance, this is one from our Dubai office. This is

a simple idea. It is a fridge magnet. If you want your favorite

piece, you press the button, and 30 minutes later it turns out.

I think it is such a beautiful and simple idea enhancing the

ordering experience in the piece of category.

Video: Luyuan Temple in the Glass

Whisky, painstaking crafted, perfectly brewed, but for decades

Whisky hasn’t been innovated, so we brought the world the

new serving suggestion for our clients. 3D on the ice cubes.

All you have to do is to send your 3D photo to our special

website, then our specially designed C&C welder will shape

the ice cube just for you. It also cooperated with fashion

industry and music industry.

I just came across last week from our Finland office in a food

and beverage forum. This is all about the coffee experience.

Disruption and Innovation

Brian Swords, Managing Director, TBWA

“Smarter, more beautiful and more fun!”

Disruption, in a word, is about growth, innovation. It’s about

making leaps forward for brands we work with.

You can see in terms of disruption a very simple idea but

execute in a big way, particularly on positioning.

We have done thousands of disruption days around the world

with different clients, particularly for positioning. We bring

a motive disciplinary group of people, everybody from HR,

the sales, the field marketing, and the CEO of the company

that we are dealing with from our clients to the agency to do

disruptive thinking in 2 days or 3 days. It is called disruption

days.

Video: Good to Get Together

Just over a year and half ago we ran this disruption day from

McDonald’s here in China. What they were really looking

for was a new position to drive growth in the marketplace.

McDonald’s is trying to find a new way of speaking and a

new way of competing in the marketplace. With a simple

idea about it’s good to get together, and that is about the

emotional experience in the restaurant. It is not about the

food, it’s about what happens around the food. McDonald’s

Marketing Sub-Forum

http://v.youku.com/v_show/id_XNjk5OTgwODA4.html?from=s1.8-1-1.2

http://v.youku.com/v_show/id_XOTUyNjk2ODgw.html?from=s1.8-1-1.2

http://v.youku.com/v_show/id_XOTI3MzMwNDI0.html?from=s1.8-1-1.2


Video: Paulig Muki

We realize that from every cup you pour there is enough

energy in it to light up a few bulbs for 20 seconds, and update

an e-paper this way. Our mission has always been to enrich

coffee moments. Introducing the MUKI by Paulig, that coffee

mark would explain that’s actually powered by coffee. So

connecting the Paulig MUKI with your mobile app is where

the magic starts. The MUKI conference can tell you the coffee

is too hot to enjoy and watch it even cooler as the energy of

hot coffee inside powers the display. You can upload pictures

to e-paper to display. So every cup of fresh hot coffee you

pour, you get a new look for your MUKI.

This is an interesting piece of thinking in terms of disruption.

(Figure 1)

What you can do in retail with disruptive thinking? This is a

loyalty program for department stores in big retail basis, but

it takes the principle of what happens in the online space. The

cookie follows you around, and takes that thinking and the

price into the retail space to really enhance the idea of loyalty

program you can deal with. So let’s play up.

Video: Sponda-Physical Cookie

Some say e-commerce is killing brick and mortar, Sponda

disagrees. If e-stores are running because of their efficient use

of data, why not take the best practices and use them in the

real world. Introducing physical cookie. This simple teaching

begins the new era of loyalty programs, no apps, no cards,

and absolutely no sign-ups. Simply put it in your pocket and

you are good to go. It works just like cookies online. When

the person carrying it into the shopping center, the system

begins gathering the behavior data, learns from it and then

shows target the offers and messages. In other words, it

makes the retail space react to the customer shopping habits

and interests. Sponda was the first in the world to launch

this system and one of the housing is the business shopping

center, CITY CENTER, and branded it as VIP key loyalty

program. Over 14,000 people will be given this VIP keys and

instantly they became part of the loyalty program. While

conventional loyalty program recognizes their members only

at the cashier, we do that the second our customer who walks

in the door. With physical cookie, Sponda created an entirely

new way that combines real-time marketing and loyalty

program, making the shopping experience smarter than ever

before. Moreover, the effects are fabulous. Please look at the

figures.

It is a really good example of what technology can do its best

was bringing people into the idea and bringing people into

story that allows them to participate.

Video: Hypocritical Truck Driver

Why are there no blue Skittles? With two and a half millions

fans, that question kept coming up on the Skittles UK

Facebook page. They had a point; we had no blue. So we

listen to the fans and persuade Skittles they have just to

make it. Then we read the fans up which footage from Czech

factory and distribution group. But we wanted to turn up

the message. So we announced the blue Skittles truck was

leaving the factory, but then, we had more news. The trucker

had stopped. We sent a team to the Czech Republic to see

why. It turns out he was blue. He said we had to like him or

else, he was emotionally blackmailed. Our fan group kept in

contact with the Facebook group and alive interactive map let

fans follow the truck movements. There were ups and downs.

Personal messages were exchanged. But the Facebook group

kept this guy going and got their fans to join in ever. Often

she has a week in a life for this strange trucker. Some even

met him on the way. Together they brought millions of blue

Skittles into the UK. Then of course they rushed down to the

shop to buy them. In just 7 days the trucker received over

80,000 likes and our page is liked by half million new fans.

The blue Skittles sold well in three weeks. After the campaign

period, even sales walked up a huge 29%. All this by listening

to our fans and getting blue Skittle made. Then making the

http://v.youku.com/v_show/id_XNzA3OTY4OTgw.html?from=s1.8-1-1.2

http://v.youku.com/v_show/id_XOTU2MjU4ODU2.html?from=s1.8-1-1.2

http://www.tudou.com/programs/view/QgKSiwBLHvw/?resourceId=69649766_06_02_99


fans a public story and this trucker’s life. Like the rainbow, taste

the rainbow.

Disruption can be a very interesting and innovative tool for

what you need to do in terms of disruptive positioning in

China’s marketplace today. Technology really has the power

to completely change the brand story in multiple ways. If you

are smart and innovate about how you use it, so whatever

disruption you do in China, as same to TBWA, make it smart,

make it beautiful and have fun.


Native Marketing and Legendary Stories

Andy Xu, Senior Vice President, Ifeng

In China, digital marketing started in 1997 and could be traced completely all the way up

to 2014. But with the changes in social, consumption and propaganda trends, relations

based on information technology are no longer real. And it’s more and more difficult to

reach customers accurately for less and less attention is paid to brand message in the age

of information explosion. Traditional media propagates in the mode of content plus form,

but social relationship was added in the epoch of internet. When the era of interconnection

and interworking came, the Internet has been incorporated into life, and, in addition to

social relationship, service should be added as well. (Figure.1).

(Figure 1)

Marketing Sub-Forum


In 2014, such media were used in 79.5% of the cases winning the golden awards, 94.3%

of which propagated by means of social media for the second time. Certainly, people are

still the fundamental element of “relationship plus service”. Content created according to

people’s life will endow the brand with more room and vitality (Figure.2).

(Figure 2)

We have created many extended topics following Chai Jing’s Under the Dome smog

investigation a short time ago. All of these topics are made on the basis of such powerful

contents. Therefore, a good content allows for good topics and services. Then, should CMOs

focus on such things? Figure 3 shows the results we got from our last year’s visit to 200

domestic and international CMOs; 91% of them believed that the good content was a key

point to successful marketing, and 78% said that customized contents would be the future

of marketing.

(Figure 3)


In this society, it’s possible to find and expand into good topics, contents or areas. Just think

about Spring Festival, year-end bonus, having difficulty in buying tickets, being forced to

marry and New Year’s Eve dinner. What’s the connotation of Chinese mainstream elites in

an era filled with the changed and unchanged. We find it from the big data system: (Figure4)

Going back.

(Figure 4)

In fact, the whole marketing model change tends to go back to be people-centered and

create something closely related to people’s life (Figure5). Only one kind of contents fits.

That is what truly exists or what is always by your side, for example, political news, gossip

news, investment and managing financial affairs, life stories, Chinese dama purchasing gold

included. Transforming such contents into the tools of brand marketing is essential; this

is what the American concept calls “native advertising”. But American native advertising is

mostly based on the creativity of content and information flow. What about us? We do what

can be really integrated with consumers. So we try to build a platform allowing the brands,

social trends, people and media to integrate naturally. Of course, in the age of big data, we

have to excavate social trends and user’s behavior data to, in combination with different

and scarce quality contents, get emotional resonance by creating short-term hot points

and medium and long term brands.

(Figure 5)


Below are some cases:

Philips - Doctor

EcoSport - Celebrating New Year with Full Fun

Inter-Continental Hotel - Legendary Passing

NIYA - No Hurry

Innovative Channel - To Memorize Chinese Creation

CHANDO - Creating Your Own Beauty

Silk- “Reality”

In the age of interconnection, on the basis of big data, we should build a people-centered

and real (NOT virtual) relationship between consumers and brands through different

channels and ways of participation, which should be integrated into people’s life. Today,

more relationships among brands, people, social trends and media are being built. Hot

social issues are transformed into brand marketing operations. With the involvement of

people, a platform for conversation about life has come into being.


Programmatic Buying: Brand Age

Roy Zhou, CEO at Yoyi Digital

“Internet+” is popular, then, I will talk about “Programmatic

Buying+”, the difference between this and “Programmatic

Buying” included. The highlight is, how to create your brand.

At the beginning of 2012, Yoyi Digital became China’s first

company to launch the platform for programmatic buying.

Here, the information is published for the intended audience

and the technology employed involves machine learning,

some algorithms based on cloud computing, artificial

intelligence and so on. Now, we are focusing on a kind

of cross-screen-based data collection, management and

analysis. Nowadays, recourses are becoming more and more

fragmented, for which we are surrounded by several screens

at different time points every day. Thus, cross platform is the

future. During the future three and a half years to four years,

we will be dedicated to two product solutions (Figure1), i.e.,

multi-screen-based platform for programmatic buying and

D-Bank. First, the advertisements could be directly put on

all platforms, even WeChat, through the unified DSP. In this

process, as all types of data accumulate in different phases of

the whole marketing funnel, first-party data and third-party

data can be combined by D-Bank. Then, at the next time of

multi-screen advertising, the right consumer group will be

targeted at and the efficiency improved.

(Figure 1)

Marketing Sub-Forum

At first, programmatic buying reaches out to wide audience.

The privatized deal, which makes advertising programmed

and automated, appeared exactly to solve the problem. For

example, we can agree on a price with video websites to

reserve a position for the ads. In fact, such items are published

through the platform of Yoyi. By means of negotiation, much

personnel cost is spared, efficiency is improved, and more

importantly, the key data can be kept. The privatized deal

brings about good-quality media resources, a concept called

“First-class Cabin”. Second, the visibility of ads guarantees

the security of brands. When conducting video purchases,

we found that 70% audience of the top five video media

overlapped; these spectators didn’t have much loyalty and

would move across the platforms with movie resources. And

for cross-video media, there weren’t methods to control

frequency. Hence huge wastes arose and watching too many

times might even be considered to have negative effect.

Then, we may use programmatic buying to confine the same

person’s total playing times on all platforms to a pre-set

number. (Figure2)

(Figure 2)


(Figure 3)

And second, by virtue of audience’ data characteristics,

programmatic buying is able to carry out targeted advertising,

increasing accuracy by 20% to 30% and, on the basis of

breadth, producing a deep interaction with the intended

audience. Data can be divided into first-party ones and

third-party ones (Figure3). The first-party data owned by the

corporation include advertising data, marketing data obtained

on search engines, data on the ecommerce platforms and

the offline data of CRM. These data are very accurate and

reliable, but they may form a dead database unless you make

phone calls or send short messages to maintain them. An

automaker once met such a problem; later, it chose to make a

technological mapping: when someone in the database goes

online, his ID number will be checked and a new encrypted

ID will be offered to him/her. In the future whenever the same

person surfs the Internet, he/she can be reached on the auto

channel of Sina or NetEase.

The third-party data are needed for one drawback of the first-

party counterpart, i.e., inadequacy. By contrast, the third-party

data could cover more than 85% Chinese internet netizens.

First, a unique algorithm and technique helps to profile and

analyze the populations in the first-party data, which plays an

important role in finding in the third-party database whoever

resembles them a lot (Figure4). Such a technology is very

effective in the exploration for new clients and all the data can

be received later from D-Bank. On the basis of the traffic traces

of the intended audience, we optimize the data at each phase

of the marketing funnel through the application of ten-odd

to twenty-odd algorithms; this screens out users of low values

and selects out high-value users who are most likely to close

deals with us.

When working on cross-screen tasks, there are two ways

to put several screens together to find a real person. After

all, equipment is just a channel for advertising, and our real

purpose is to push right products and services to the intended

people at the correct time and through the appropriate

screen. The first way is to make use of cross-platform ID. Take

Baidu Cloud and Baidu Map for example, they both have

accounts registered. If someone uses the same account on his

phone, Tablet PC and PC, we will know that the three devices

belong to the same person. This is called “Accurate Homology”

for its accuracy rate can reach as high as about 90%. Today,

about 13% of the data belong to cross-screen ID. The other

way is to lock a person by IP address. For example, at this

moment, only one computer and five phones are sharing a

same IP address. But at night, only one phone often uses the

same IP address as the computer does. According to this, we

guess that this very phone and the computer probably belong

to one person, so they are given a common cross-screen ID.

This is the “Nonhomology Speculation” whose accuracy rate is

about 55%.

Last point is the development trend in the future. That is

“Programmatic Buying+”. What comes after “+”? It is our

vision. The left part shows what we did in the last three years,

and on the right is the development trend of the industry.

Already, we have made all kinds of arrangements (Figure5).

The IPTV will probably be an opportunity worth a hundred

billion yuan. Those with IPTV licenses are mainly Wasu, MSG,

and BGCTV in cooperation with Tencent, and we will connect

Wasu’s 20 million IPTV screens to our DSP platform, which

then will be linked up with LED screens and outdoor large-

size screens of auto products, Shanghai Xintiandi, Tulip ,

Advision Media and other excellent screen owners. As long

as they are digitalized, it will be easy to connect them to the

platform for programmatic buying. On February 4th, we built

strategic cooperation with the biggest domestic press group –

(Figure 4)


Guangzhou Press Group, and a joint venture was established

in particular to work on the items referred to by routinized “+”.

About one week after we signed the contract, Time and the

US’s leading DSP conducted the same cooperation. Almost a

month ago, six or seven western mainstream press media like

CNN and The Economist also built strategic partnership with

another similar American platform.

(Figure 5)

To sum up, the appearance of privatized deal and purchase of

programmatic video can help brand advertisers automatically

and effectively get in touch with premium media and reach

out to the wide intended audience; in return, data can help

to perform deep interaction with the spectators; Cross-

screen ID realizes cross-screen marketing. Last but not least,

“Programmatic Buying +” is the development tendency that

can really integrate online and offline media and reporters

comparatively isolated ad marketing and advertising into one

unified platform, the bottom of which is connected by data

drive.

Example 1: when an intended audience enters your website or

app, his traffic trace can be used for many things later. Based

on the whole marketing funnel, I can use it to make a deep

and thorough optimization. Take automobiles for example

(Areas like food and fast-moving consumer goods are similar).

There are two types of populations participating in marketing

campaigns. User A arrives at the homepage of the activity and

opens the registration page directly. He or she may leave with

a car model of Tesla after spending 20 seconds filling in some

items. When User B comes, he /she goes first to the homepage

and then to the product page to compare the performance of

S car with that of L car carefully. B also browses the distributor

page to see if there are distributors nearby. After two minutes

and a half, the user goes to the registration page, finishes it

and leaves. Traditional internet marketing only sees exposure

and UV, which draws the conclusion that the two types of

people are the same. Arriving at the homepage is effective

and registering is also effective, right? The users leave their

phone numbers, so you can call them to take a test drive.

However, according to the traffic trace, the value of user A is

totally different from that of user B. A leaves after registration;

what he/she concerns is merely a gift. On the contrary, B is

obviously interested in the products. Therefore, user B is more

likely to take a drive test or even buy a car. D-Bank will find

more B-type users and screens out users like A.


Data Driven Innovative Precision Marketing

Maggie Wang, Vice President, Commercial Strategy and e-Commerce, AdMaster

In fact, the development of the Chinese stock market is as exciting as that of the Internet. If

you buy the stock related to the Internet, you will be happier.

Today, I will explain the data-driven innovative precision marketing. The reason I mentioned

stock market and the Internet is that sometimes innovation in marketing is similarly not

unexpected, but beyond our ability. However, the progress of new technology keeps

providing us with opportunities to realize some ideas we considered impracticable before.

What does the fast development of the Internet mean to the F & B industry?

Among the advertisements we monitor, the exposure of the FMCG reached around 30%.

Food and beverage corporations made up 18% of the number, the proportion of food

enterprises being 8.5% and that of the beverage business 10%. Of course, they were

comparatively less than the quantity of the offline ads. Speaking of the penetration of the

video ad, we find that food and beverage companies tend to make pre-movie adverts.

Maybe it’s because we need more vivid pictures to attract consumers to buy. Conversely,

the percentage of video ads in the maternal and infant market was somewhat low, below

36% – the industrial average. Some mainstream video websites, such as IQIYI, Sohu, Tencent

and LETV, have occupied the maximum proportion in the industry discussed. Its peak

period of advertising was from May to December, during which time the development

tendency was rising. One of the two most important trends in 2015 is mobile end. The

ratio of ads targeted at the mobile clients was below 10% at the beginning of last year. But

the latest data shows that from December of 2014 till now, the advertisement input at the

mobile end has been raised to nearly 50%. What a rapid change.

Marketing Sub-Forum


How to find customers accurately? First, get to know the intended audience; second, try to

grasp customers’ real thoughts – not under any influence; third, figure out how to precisely

reach customers, especially when we want to work on a market against the trends; fourth,

utilize the most popular platform, WeChat. But what could be done on the WeChat, and

how to make the evaluation?

Companies like us have many cookies on PCs and sdks on mobile terminals for we

monitor many advertisements. In fact, no matter cookie or sdk, they are both mechanisms

recognizing if people are exposed to the ads.

In addition, all the effective functions like advertisement forms and basic information of

the population (e.g., how old is he or she or does he or she have a kid) will as a whole make

large resources. The first method is to push a questionnaire to the customer encountering

the ads on the media or Tencent. If the customer feels interested, he/she will fill in

information, and then we can screen the answers for our cookies have made it possible to

work out the accurate part. As for the second method, there is a sample bank in PC; it is

in possession of millions of cookies. We can match these cookies with the sample cookies

when integrating an advertisement. The result will be the questionnaires or whatever you

want to push to consumers. For example, people at age 25-35 will receive a questionnaire

on PC and fill it out as they like. Moreover, we can divide these people into groups and

screen them accurately to offer them differentiated questionnaires.

The second point is listening to customers’ aspiration attentively and completely. On

social media, the discussions from customers happen spontaneously; it is complicated

and highly participated. We put on market the sales volumes and comment volumes of

social media in probably 7 industries. By comparison, it’s found that as the sales volume is

higher on ecommerce platforms, their comment volume is increasing too, exceeding 60%

of the whole. The better a product sells, the higher its comment volume will be. At present,

e-commerce is not only a sales platform but also a very important medium for nearly 50%

people choose to collect customers’ information there. Alibaba always holds this idea and it

operates accordingly.

When consumers consider buying or decide to buy, what are the decisive factors?

Comment is still a very important factor ranked before promotion. In fact, in the F & B

industry, especially in the maternal and infant industry, there are 25% customers who

won’t buy the article as long as they see a negative comment. Apparently, they care very

much about their children or their own health. Besides, there are another 50% customers

who only pay attention to the comment on certain categories. For us, how to combine

information of social media with that on the e-commerce platform to provide more

reference is a significant topic. There was a great international company. Though being

equally famous as its competitors, the corporation couldn’t manage to get as much

favorable comment on social media as it did on the e-commerce platform. So, it was always

wondering about the reason. We found that on the e-platform, more real-time feedbacks

concerning purchase experience and the first impression were given. But there were still

many customers accustomed to share their use experience on social media, especially the


(Figure 1)

frustrating ones. Fail to guide these behaviors properly, the company will suffer crisis. Our

platform also helps clients manage such kind of trouble. Recently, there was a list of milk

powders, of which some products were detected with unqualified information. On such

an occasion, our system immediately reported the feedback information collected back

to the corresponding clients’ departments of public relations for in-time management

and measures. How to reach brands’ customers accurately? We call it “poes”: “p” for paid

advertisements, “o” for the brand official website owned, “e” for reposted media on social

media earned, and “s” for e-commerce platform sales. Put all the data together, we can first

of all get the consumers’ profiles. Then whoever resembles the profiles is to be found inside

the e-commerce. After that, in cooperation with companies like Yoyi Digital, we optimize

advertising through dsp.

Take Alibaba’s data as an example. There was a digitized 3C product and Alibaba profiled

three targets. Figure 1 shows some information; the age set is relatively similar to that of

brand C while brand D’s age set is younger and male-dominant. As for the level of city, D

mostly centers itself on low-level ones and its buyers are low-income population. Then let’s

put these data and the data from social media together to have a look at brand A (Figure2).

First, A’s customers are digitcons who are post-90 paying close attention to education

and employment. Besides, A’s clients especially enjoy the study and topic discussing

constellation and people of Capricorns and Scorpio gain an obvious preference for the

brand. With such information, A can make some interactions by itself.

In addition, we compare brand A with its most important brand C (Figure2 and Figure3).

First, the two are very similar. Second, many people have searched them a lot, but they did

not buy. These always happen to the people at a younger age with a low income from low-

level cities. A’s sales volume is far less than that of C, which means brand C is a best-selling.

The conclusion, brand A’s sales volume is much worse.


(Figure 2)

(Figure 3)

Brand D I just mentioned makes up this part and its sale is better than that of brand A. So,

we should consider how to realize a diversified competition between A and C, since despite

the fact that their sales volumes are astonishingly different the two do bear so much

resemblance and target at similar consumer population with highly resemblant preference.

On the contrary, brand D may be the right one for other consumer groups. With these data,

you can profile those who once saw your advertisements and bought your products, and

push exactly to them the relevant ads through different platforms.

Last, WeChat was a platform many wanted to set up into yet would find it beyond the

ability. A turnaround has recently showed up, and finally we are able to organize some

activities about H5. We responded quickly and helped brands monitor the corresponding

reading, thumbing-up and reposting volume, as well as whether the invited super accounts

had attracted more fans as you planed. Roughly speaking, we could help you solve three


types of problems: 1st, check the activeness, reading, thumbing-up and reposting volume

of official accounts; 2nd, evaluate the performance of the invited super accounts for which

you have spent a huge amount of money; and finally, check the H5 content to see if it is

propagated as scheduled.

Your own information alone doesn’t mean much. You should compare it with that of other

rivals or the industry standard you approve. For example, the biggest reading volume

could reach about 50 thousand, then, has that of your messages reached this number?

Moreover, on the average, an initial post may be read to as many as over 10 thousand

times, so you have to check whether that of your activity is satisfying enough. If the result is

disappointing, you must consider where it is that you did a bad job.

Also, WeChat could take the same route of propaganda as Microblog does (Figure4), where

the depth and breadth of the spreading are ready to be analyzed. This is a WeChat account

of a car enterprise and it is excellent. Generally, in Microblog if a spread can reach 7 layers, it

is already a good one; in our case, 10 layers has been achieved. The fact that the first three

layers of spread accounts for nearly 80% of the whole shows that the posts in these layers

are the most important contributors.

Another question is where the H5 comes from Your own friends, circle of friends and fans,

who are the one that bring it about? In the end of last year, we helped a brand organize

an activity to hand out lucky red packets, which was very interactive. We found that for

many brands, spending money inviting super accounts to repost didn’t work as well as the

reposting of their own official account’s fans. The reposting from these fans made up 80%

of the whole volume, while the invited ones only accounted for less than 20%. This means

much to expenditure estimation.

(Figure 4)


CONTENT VELOCITY PACE+PURPOSE

Silvia Goh, Chief Content Officer, Starcom MediaVest Group

Pace and Purpose. Content marketing promotes the

relationship between brands and consumers and increases the

health index of a brand, so we'd like to take advantage of this

to interact with consumers and enhance the corresponding

experience relationship. It’s the related content that most

easily touches consumers and arouses resonance. The

objective of content marketing is to increase ROI and improve

services. In the Chinese market, such kind of marketing is

classified into three parts. The first is hard advertising, e.g.,

project sponsorship, concerts, ground activities and so on.

The second is soft advertising, which tells the audience a story

about the brand to touch their heart gently and naturally.

For instance, we can arrange a time interval on a satellite

television and together from scratch make a program for a

brand. The third is customization. Just as the name implies, on

internet this means completely original content or activities of

social content, those starting from zero.

In recent years, we have developed from simple product

advertising to TV shopping to new-form TV. Maybe you all

remember Extra’s sour, sweet, bitter and hot advertising films,

which produced popular Peng Yuyan and Gui Lunmei. Later,

it became a program on a satellite television channel with the

sponsorship fee of 500 million yuan. Not every brand manages

to get so much sponsorship fee, but they can sponsor a

column or a sector, such as Day Day Up or 80s' Talk Show, both

being sponsored in units. The lasted programs have become

more customized, which makes social media very popular.

This year will be very exciting; we estimate that there will be

a fierce competition between Q3 and Q4 for in Q3, The Voice

of China, Where Are We Going, Dad and Amazing Race are

going to get aired at the same time. China has stepped into

an age when a hundred flowers are to bloom. Every satellite

TV station rushes to buy copyright and to improve program

quality – a benefit for the audience, but challengeable for the

brands.

As China orders cutback on TV entertainment and songs,

many TV stations begin to take reality shows as a new pet.

This year, there are more than 20 reality shows; either their

copyrights have been purchased or the programs themselves

have been localized. The three categories are as follows. The

first is parenting programs, such as Where Are We Going, Dad

and Dad is back. The second is traveling programs, such as

Flower Grandpa and Divas Hit the Road, all kinds of flowers.

A special phenomenon in China is copy for of course it is the

safest way. The sponsorship fee of the first session of The Voice

of China is only 16 million yuan, but what about it today?

Following trends could stimulate the programs to become

more and more expensive, leading to less and less chances

of competitive bidding. The last is programs about traveling

couples, which have become more and more popular. This

pervading tendency will always bring development to reality

shows. There are another two types of programs worth

noticing: parenting and educational programs, such as The

Strongest Brain. While each television station is racking its

brains to expand on the former, there is still much room in

both parts.

After discussing the whole market, let’s move on to the

consumers. Two years ago, Starcom MediaVest Group started

a very comprehensive survey called “Yangzi Survey”, which

was going deep into more than 300 supermarkets from

first-tier cities to fifth-tier cities to know the experience of

consumers. This year, we expand the survey to 29 thousand

samples. Many interviewees are the same people as two years

ago. By comparison, we find that content marketing of brands

Marketing Sub-Forum


still has great influence on the audience and consumer. There

is a special phenomenon that the number of Chinese teleplay

audience fell at a rare rate of merely 2%. So, although the

new media is absolutely important, we should not overlook

the fact that FMCG on TV is still the biggest attraction and

consumers like to watch localized TV plays. In addition, to

contact and interact with the consumers in all directions, we

should continue to connect with them and keep their loyalty

for a long time. For example, some consumers in Guangzhou

explore brands from the circle of friends on WeChat and other

related programs. Thus, to touch consumers and the audience,

a multi-screen mode is a necessity.

More than half of the interviewees will continue interaction

and participation after watching TV, such as paying attention

to the program updates, releasing program contents, creating

relevant items, and visiting the official account on Miroblog.

O2O even does this deeper – buying while watching. Nanjing

consumers will join the QQ group about their favorite stars

and share star photos, shows and interesting stories, etc. In

fact, stars and artists have a larger influence in low-tier cities

e.g., students in Nanning pay special attention to how artists

use make-up products and will use mobile phones to search

to know the strange brands.

According to our investigation, compared with two years ago,

nothing has changed much this year. Edutainment program

is still the trend, but the sensational program is no longer

popular. So, the whole trend in satellite televisions is positive

and happy. Besides, the tendency and direction of the content

continues. The audience in first-tier cities still welcome brand

content marketing while fourth-tier and fifth-tier cities

continue to be influenced by stars, for instance, in these cities

the promotion of extravagant products need celebrities

because people there don't know how to use them. I once

went to low cities for a survey two years ago, and found a lady

wearing a Louis Vuitton to vegetable market. She didn't know

how expensive the LV was and said that it was her husband

who bought her this on a business trip. She got to know the

LV through her friends’ introduction; maybe they saw on TV a

celebrity wearing a LV or Chanel. This year, we found a special

phenomenon that in fourth-tier cities consumers love on-site

activities more. So brand entertainment marketing not only

plays an important role in the content but also in the on-site

activities for it can often promote consumption on site.

What should we do after knowing about the big market of the

whole China? What is the layout, and how to tell the brand

story better and perfectly? First comes big data, which is used

to analyze consumers, e.g. their habits and hobbies. Then we

utilize the technology to support the plan, and promote it with

partners together. When the content marketing already has a

trend, it should be the core of the overall planning. Instead of

using the remaining a few million yuan at the end of a year to

buy Youku shows or anything else, we should plan activities

throughout the year with joint efforts at the very beginning.

In short, improving consumers’ experience, creating a

meaningful brand story, and deepening the interaction with

consumers is exactly Liquid Thread of Starcom Media Vest

Group. Here are some of our works in recent years.


Fortunately, I served as the only Chinese judge on the first

Cannes International Content Marketing Awards. Later, I

continue to do something for the market to promote China's

brand entertainment marketing. Recently, the agile content

marketing is very popular. Then, how did we take this route?

First, we have already cooperated with Wrigley for five years.

At the beginning, we exploited a certain period on a satellite

television to advertise by creating the brand story for Green

Arrow or Extra. And then in 2014, we have already developed

this into variety show programs. We don't utilize WeChat and

Miroblog. Below is a very popular video in 2014: "Let’s Be

Friends".


Through big data, we learnt that the consumers of Green

Arrow like to stay at home and sing at KTV; they love

goddesses like Angelababy. At that time, it happened to

be Chinese Valentine’s Day. So, taking advantage of the

coincidence with One Night Surprise, we made a Parody film

about Fan Bingbing and those programs. Please remember

that the film was edited by director Jin Yimeng; it had

copyright. But it was only the first phase of the propaganda;

we used the film to build a momentum on the Chinese

Valentine’s Day. At that time, there was a very popular word

called diaosi (referring to the young men with a humble family

background and an ordinary appearance): these men may

long for going to the movies with his girlfriend. Therefore,

for the second step, we had a collection activity, i.e., inviting




Fan Bingbing to go to the movies. Green Arrow booked a

whole theatre. This collection was very hot offline. As for

the third propaganda, Angelababy appeared and said “I was

Fan’s fan! Let’s make friends with her.” We also started offline

propaganda and encouraged diaosis to make a friend with

Angelababy. So the whole idea was to make friends. At last,

Wowkie Zhang came and said “the advertisement of Green

Arrow is for Mayday. Is Mayday that awesome? I am also very

handsome and I want to make a friend.” The three-month

propaganda was linked up completely, having gone further

beyond something easy like maintaining a Microblog account.

It was a hit and a new trend. Not all of the things are to be sold

on TV and invest in such a big-deal movie, since our study

exactly aims at our target audience, the things they want and

their preference.

The next one is about Mars, which, in fact, didn’t gain much

recognition in China five years ago, for Chinese people held

the idea that eating chocolate would make the body get

inflamed. This was one of our investigations. Then what

should we do with Chinese disliking eating chocolate? This IP

was actually on Mars’ hands. So, we used content marketing

to introduce this IP to China. Mars of the United States is also

developed by Liquid Thread. In America, we interviewed a

lot of Hollywood superstars. Then why not come to China

to interview localized idols like Li Yuchun and Olympic

champions? So we continued to make the propaganda

localized for two years. At that time, satellite television was

not that popular; that’s why we chose our best partner Enlight

Media to promote the ads, which were also broadcasted on

Sohu video. Gradually, the popularity was built up. The ROI

of the project was more than 400%. So what we should do is

to sharpen our creative edge and try a different localization.

Today there has already been a flagship store in Shanghai. Of

course, we also made a variety show about Dove on Zhejiang

TV. On the Spring Festival of 2014, again we started to

cooperate with Tencent, and came out with the propagandas

for about ten brands.

In addition, we also work with BBDO. Here, I want to

emphasize the importance of solidarity. There's the need

to urge every company to cooperate together. Last year,

we invited Mr. Bean to Shanghai to make the propaganda

localized. Our cooperation with BBDO was again because of

Mars; as a result, the earlier commercials were completed.

How come the advertisement is so beautiful like Lin Daiyu?

(You may have some impression on the commercial Snickers

“hungry series” advertising.) Last year, we used the image of

Mr. Bean and made another advertisement. Although having

fighting scenes, the ad of the Britain product was distant from

we Chinese. Then, how to make it localized and closer to our

customers? Let’s watch the video.

(Video playing, translation):

When hungry, the Chinese will eat something. But it is difficult

to introduce Snickers to them. However, we need to import

such a global brand’s slogan to China; what should we do?

“You're not you when you're hungry" – in most countries

people will think of these pictures. But when it comes to

energy, you may think of the picture of plaza dancing. Plaza

dancing is also a Chinese unique, one of the Chinese cultural

characteristics. So, we decided that Mr. Bean and “plaza dance”

needed to be combined together. That’s how the Mr. Bean’s

hapless Kung Fu came into being. We uploaded the video

on social media, and also invited Mr. Bean to join domestic

entertainment programs and talk shows. As the momentum

was made bigger and bigger, we invited Chinese pop singers

to adapt the song. At the same time, we asked young people

to adapt it according to their own feelings .Such an activity

made the yearly sales volume increase by 5.57%, and Snickers

one of the preferred products to appease hunger in China.

This is a very typical O2O2O case which shows how to localize

a TVC and how to take Mr. Bean to dance with dama in a

square through our consumers and plaza dance culture.

Later, we adapted Wowkie Zhang’s most popular song at the

beginning of the year – “Very Cool” to one winning universal

praise and moved on to hold activities with students on

campus. In fact, from the beginning to the end, Mr. Bean only

stayed in China for one day. Inviting Mr. Bean cost a lot, so, I

conducted all the activities in one day to employ resources

more effectively.


Synchronizing a Brand with Culture to Get Best Returns

Panos Dimitropoulos, Cultural Insights Associate Director, Added Value

What do you mean by culture? It is a very exciting new methodology I am going to present

to you today. By culture we mean the sum of human production, we mean everything the

society is using to communicate with each other, so, in this context, it means what kind

of signs, symbols, and semiotics brands are using to communicate with consumers. And

how consumers are reading these signs? This is the hard core of what cultural insight is.

You should treat the term culture only with this grammar. So brands are part of culture.

In fact the way culture is changing is the way brands are changing, so do brands need to

keep up with the changes in order to create more efficient and effective conversations with

consumers.

We see branding universe of this triangle (Figure 1). Brands communicate with consumers,

but both of them are using culture as a basis to create that kind of conversation. In other

words, culture is a currency. With it we can communicate with consumers. Being in tune

with culture provides many ideas and values, and creates a better conversation. Cultural

insight is a very new methodology that on this term we can understand consumers without

directly talking to them. Qualitative and quantitative methodologies are quite proficient in

doing that. But we’re looking up things from another angle. What is consumer insight looks

on the right-hand side of this triangle? We look at things from another point of view of how

brands and culture are connected. By analyzing the most emergent stuff happening in

advertising, packaging, retail environment, and media, we can translate these insights into

very useful recommendations for brands in order for them to keep in touch of how changes

happening in culture. Of course, combining cultural insight with consumer insight usually

gives us a holistic aspect and understanding on marketing issue from the most complete

point of view.

(Figure 1)

The interaction between brand and consumers and the insight of consumers. We look at things from another point of view of how brands and culture are connected.

Marketing Sub-Forum


What is Semiotics? Semiotics is a study of signs. Some signs are created in culture in order

to be very simple to understand. So if you want to understand how to stop or go in the

road, it’s called the red and green. These are simple signs the society has created for us

to understand easily. But when it refers to branding and when we communicate more

complex meanings, such as brand values, we use images, and images are very complex

machines. They might need at least 1,000 words to communicate one meaning. Semiotics is

the sign and the study that understands what these words are. Semiotics can simplify some

complex things.

The images you see on the left are a branding orientation for Herborist (Figure 2). I can

break this rough ad apart with semiotics and understand what each constitutional part

means. What does it mean independently and as a whole? There is something with Yin and

Yang, symbols of TCM, delivery system for these traditional symbols, conveying a message

that this image wants to communicate the ideas about traditional Chinese medicine,

health, and natural faith because of the green. It also used electric colors to communicate

more traditional facts with modern techniques. What does that tell us? It tells us that

Herborist tries to communicate here is that it is inspired by tradition but adopted into

contemporary format, so as to get the best of both traditional ingredients and advanced

technological manipulation. This is a very simple example of understanding how semiotics

can be constructed.

In this case you can see the advertisements that are using two very simple semiotic

symbols - transparency and light color blue, because all they want to communicate is

purity. Even though these pictures look differently, they follow the same law, which is called

semiotic code. That is how we can start creating order into the chaos that communication

is more related. Through communicating to understanding we can change and we can see

how to communicate in a better way, in a different way and so on. We can start comparing

packaging, communications according to how this region dominant and emerging or how

(Figure 2)


(Figure 3)

outdated mainstream or fresh they are. Of course we offer recommendation for our clients

based on what is really emerging, what is more new, because all brands want to stay ahead

of competition, stay ahead of what’s happening with the rest of the category.

In this case you can see how easy to select one image (Figure 3). Vodka communicates

through packaging. In the past it used color red to communicate Russian. Since the

mainstream would be communicating through transparency and something that’s more

pure, crystal head Vodka communicates more complex meanings and more advanced

meanings through these 3D symbolisms of packaging.

With the narrow semiotics we can transfer meanings from one category to another. Usually

we go outside to see how you competitors are communicating. But this would not give us

enough insights and suggestions to do something different and stand out from the crowd,

that’s why we can go into adjacent categories to see how natural these are, how effective

can be communicated from other category, and how can we make a difference to create

tomorrow. If everyone goes more outside to see what’s happening in the product cultural

environment, how emerging markets are communicating, all of these from comparative

analysis will give us a more sound idea or how change is happening, and how you can stay

ahead of competitors. (Figure 4)

It’s first collecting data, by data we mean kinds of communications where there is

packaging, and advertising. The more data we have, the better analysis is. So, first we

communicate and analyze this packaging project, and we collect a lot of packaging

information. In next step we start clearing patterns according to different packaging. What

kinds of meanings the package communicates and the patterns it reflects, which gradually

form cultural codes. With the codes we are able to understand how this category presents

its brand value and positioning.

Through packaging, it creates an understanding of strategy in terms of new packaging,

in terms of whatever marketing issues you have. There are three things we can do with

cultural insight with power of semiotics: one is helping your brand to get relevance, and

understanding the broader culture of context of a category. That is very useful when you

want to have marketing chance, and understand how you replacing your product, and


(Figure 4)

when you have basic genetic strategy issues that you want to address. The other thing

is understanding how a brand can be clear, how to communicate your brand meanings

in a clear and simple way. How your market is being communicated? We can see how

positioning exists in terms of your message conveyance and it also helps your brand create

more strategic planning. Finally, it is about helping a brand be fresh by understanding the

future brand expressions. If you are the best to create, you should leverage it. I will explain

more innovation, communication trends and more effective creative briefs to you later

through case study.

The second thing is relevance. There is a dairy brand which was communicating

naturalness. We can go and see how the cultural context of “natural goodness” exists by

looking up their micro political and economical factors (Figure 4) that address and that

influence this idea of much goodness. We can go and see how dairy communication is

communicating natural goodness (Figure 5). You can see here one core as I said before is

called fresh from the farm, so these ads are using landscapes, all the signs packaging within

the landscape to communicate things such as naturalness, healthiness, freshness, cleanness

and so on, but you can see that if you look very close to this photo. They look quite

outdated and quite ordinary. If a brand wants to become more emerging, if a brand wants

to communicate something in a more different way, we should go outside. In addition to

the diary category, we see how freshness and naturalness can be communicated in other

way.

This is another way that we call escape to nature. How naturalness is communicated in

different categories (Figure 6), such as from healthcare to perfume to supplements. That

can show us how to communicate the same idea in a more different emerging new way.

That helps us create communications and suggestions more future focused.


(Figure 5)

(Figure 6)

How to build relevance? Bell’s wants to express “leadership” in an emerging way. We want

to show how different leaders are in communication in media. What is the image they are

projected? We find there is a kind of cultural symbol called “boundary creator”, who are

communicating leadership through creativity, uniqueness, bravery and difference. This is

the cultural symbol we discovered, according to which we made an ad, which emphasizes

“insightfulness”. It symbolizes bravery, determination, and new kind of leadership, and all

emerging kind of leadership.


( 图 7)

In the Be Clear methodology, it is another case study that is more about packaging.

This was for Zhonghua brand (Figure 7). Zhonghua wanted to understand how to

communicate the freshness in scientific expertise. We looked at one or two things, but

then we looked outside at the adjacent categories in order to find freshness relation

about how to communicate the brand value in a new way. How chewing gum packaging

is communicating freshness. The visual is more relevant, kind of signifier we borrow from

them. In order to create specific vision in the outside packaging, we looked at glue. What

does glue have to do with toothpaste. Nothing. But if they want to communicate effective

power through small packaging, something small is important. Something that is small

but strong, which can communicate power. So we borrow visuals from these two things,

design the packaging from glue and then we look at how emerging type of packaging

is communicating scientific expertise. That communicates extreme power and scientific

expertise.

We saw example of how we can change communication and how we change packaging,

and the final offer is based on actual product, which is about product innovation. We can

not only analyze packaging, advertising, logos, retails environments, website, but also

analyze product based on the kind of ingredients, smell, and taste. This also are symbols

and signs that do communicate meaning. We wanted to innovate and communicate better

with women. In order to do that we went and looked all the perfume to see whether it can

help us create innovative products and innovative communications. Therefore, we started

another analysis, which was about how ingredients and flavors be using in contraction

to provide this experience for product innovation. We created the strategic tool for them

that clearly links relevant relationship with particular terms of innovation potential. The

design of product can also be analyzed in terms of specific colors, smells, aftertaste, and

ingredients. It has to combine this specific type of packaging and the specific kind of

communication to suit that company. I see a lot of innovation in China. It’s very interesting

because the product is communicating one thing, packaging communicates another thing,


and then advertising for this product communicates a third thing. The consumers are

getting confused. It’s like having a pizza with too many ingredients. At the end, there is no

distinctive taste. If you put too many ingredients, your communication ushers a confusion.

It does the same with marketing and communication. It’s easier to confuse consumers if

you communicate different messages from different channels.

At last, I am going to share you with some further case studies. We did a packaging project

for Lindt which wanted to find a new position and better communication. They were

communicating before that they are the luxury Swiss brand, but that was not working for

them. It was not working for many reasons, such as the packaging and the communication

was found quite outdated. Therefore, we did the whole project with them, started to

understand how local chocolate brands are communicating, what is the changing

meaning of premium is, and what are the changing visual symbols and voices need to

be communicated in more emergent way, based on which we created a new campaign.

Actually I got the comment from the client that the last week based on our work the new

campaign increased the sales for 40%. This is one of the client comments we are really

happy to have. So you can see the outer influence of the new communication.


Valerio NanniniSenior Vice President, Head of Strategies and Performance,

Nestle

Marcelo Amstalden MöllerHead of Global CMI for Innovation,

Global Brands & Cider, Heineken Group B.V

Paul WilliamsCreative Director,

Springetts Brand Design Consultants Limited

Richard Cotton Content & Creative Excellence

Director, Coca-Cola

Chen WeizhiSr. Vice President & Chief Technical Officer,

The WhiteWave Foods Company

Simon HarropCEO

Brand Sense

Guo Lan Head of

Nielsen Neuro Greater China

Jason YuGeneral Manager in China,

Kantar Worldpanel

Mike BascomDirector of Marketing,

AB InBev Canada

Popular GuestsTOP 9Attendees’ Feedback


FBIF 2015 successfully absorbs more than 450 participating guests of Nestle, Coca Cola, PepsiCo, McDonald’s, Mondelēz International, COFCO, Master Kong, Danone, Diageo, WhiteWave Group, Mengniu Dairy, Yili Group, Bright Dairy, Cargill, Vitasoy and so on.

See the following diagrams for the attendance proportion:

Attendance Proportion

Comparison of

Enterprise Quantities

Domestic: Foreign

Domestic enterprises General Manager + President

+ CEO + Director

Food manufacturers

Ingredients enterprises

Packaging companies

Marketing companies

Governments and colleges

Media

Others

Vice President + Chief Engineer

Chief Inspector

Manager

Others

Domestic enterprises

Distribution

of Participants’

Occupation

Distribution of

Participating

Enterprises


C o n g r a t u l a t i o n s t o t h e s t a f f . I s a b e l l a , J a n e , v e r y k i n d , p r o f e s s i o n a l a n d p a t i e n t , X I E X I E , ^ _ ^ .Marcelo Amstalden Möller, Heineken Group B.V.

W e l l O r g a n i z e d . L o t s o f t h o u g h t s p u t i n t o i t , v e r y s a t i s f y i n g & r e l e v a n t c o n t e n t .O n l y o n e i s s u e - t o t a l 3 d a y s a r e t o o l o n g f o r b u s y e x e c u t i v e s .Joanna Chen ,Vitasoy international Holding Limited

Feedback

W e l l - k n o w n e n t e r p r i s e s a n d s e n i o r m a r k e t e r s h a v e b e e n i n v i t e d . T h e p r e s e n t a t i o n s a r e s o g r e a t . I t ’ s w o r t h y o f p a r t i c i p a t i o n . Sylvia Yu，Mead Johnson Nutrition (China) Ltd.

I t h a s b e e n a w e l l - o r g a n i z e d e v e n t .T h e t w o s t r e a m s h e l p e d t h e p e o p l e w i t h i n t h e c o n f e r e n c e t o d r i v e t h e a g e n d a a c c o r d i n g l y t o t h e i r i n t e r e s t .G o o d n e t w o r k i n g h o w e v e r f o u n d t h e l o c a t i o n f a r a w a y f r o m t h e a t m o s p h e r e o f S h a n g h a i .Valerio Nannini, Nestle

A l l S i m b a ' s s t a f f a r e w i t h e x t r a o r d i n a r y v i t a l i t y a n d s p i r i t , w h i c h i s r e a l l y a w e s o m e a n d i m p r e s s i v e . F B I F 2 0 1 5 i s a g r e a t e v e n t a n d I c a n ' t w a i t f o r a b e t t e r f o r u m n e x t y e a r .Cao Yongmei, Want Want China


- W e l l o r g a n i z e d ， g r e a t y o u n g t e a m- G o o d t o p i c s & s p e a k e r s- I l o v e d t h e o v e r a l l e x p e r i e n c e & w i l l c o m e b a c k a g a i n .Sanjeen Pant, CP Kelco

G r e a t t o p i c s a n d a n g l e s . H o w e v e r , t h e p u b l i c s p e a k i n g s k i l l s o f t h e s p e a k e r a l s o n e e d t o t a k e i n t o c o n s i d e r a t i o n . T o o m u c h a d s f r o m t h e v e n d o r s , b u t r i g h t p e r s p e c t i v e s . Laura Tang,Abbott

I o n l y p a r t i c i p a t e d f o r o n e d a y . B a l l A s i a P a c i f i c , H e i n e k e n s t i r r e d u s d e e p l y . W e h e l d a m e e t i n g t o d i s c u s s a b o u t i t a n d w i l l c o m e b a c k n e x t y e a r . Lu Hao，ORG Group

I t h o u g h t i t w a s a v e r y w e l l r u n & i n f o r m a t i v e e v e n t .Nancy Janes，HP

N o t h i n g b a d a n d w i l l c o m e b a c k n e x t t i m e .Guo Wenyuan, Shanghai Baosteel Packaging Co., Ltd

T h i s e v e n t p r o v i d e d a g o o d o p p o r t u n i t y t o e x c h a n g e i d e a s a n d o p i n i o n s w i t h r e n o w n e d e n t e r p r i s e s . G e n e r a l l y t h e t o p i c s a r e v e r y n e w . W e c a n f e e l t h e o r g a n i z e r ’ s c o n t i n u o u s l y a c t i v e a n d t i m e l y i m p r o v e m e n t o n t h e f o r u m . I e x p e c t m o r e d e m a n d s w i l l b e c o n s i d e r e d , t h u s p a r t i c i p a n t s w i t h d i f f e r e n t d e m a n d s w i l l a l l h a v e g o o d


T h e f o r u m i s w e l l o r g a n i z e d w i t h w i d e d i m e n s i o n a n d g o o d c o n t e n t s . M a y b e i t ’ s a l i t t l e b i t l o n g t o h a v e a t h r e e -d a y f o r u m . N e x t y e a r w e w i l l a s k r e l a t e d d e p a r t m e n t s a n d s t a f f t o p a r t i c i p a n t . M a y b e w e w i l l n o t s e n d a s m a n y c o l l e a g u e s h e r e a s t h a t i n t h i s y e a r . B u t w e w i l l c o m e . Shan Qiong, Yili Group

T h e o r g a n i z a t i o n b y S i m b a t h i s y e a r w a s e x c e l l e n t , v e r y g o o d e x p e r i e n c e o n s t a g e a n d l a y o u t i s b e t t e r t h a n l a s t y e a r .G r e e t i n g b a g b y V Q Q . C O M w a s a p l u s !Sze Ooi, MWV

e x p e r i e n c e a n d g e t w h a t t h e y w a n t . W e w i s h t h e f o r u m w i l l b e b e t t e r a n d b e t t e r . Zhang Yang, Wuhan Tallyho Biological Product Co. Ltd


Brian Chan，Tyson Foods

P l e a s e d o n ’ t a r r a n g e t o o m a n y a g e n c i e s f o r s p e e c h , l i k e t h e y a r e i n t r o d u c i n g t h e i r b u s i n e s s .

Simba: We are very sorry to leave you such an impression. Simba has always been respecting the guest, so necessary review is not enough. We have set up speech content guidance process and hope it can make the common failing of the summit forum industry become history !

Lei Hongze, JuneYao Dairy

A t t h e R & D S e s s i o n , w e f e e l s o m e o f t h e i n n o v a t i o n s a b o u t p a c k a g i n g a r e a t t r a c t i v e a n d w e h o p e t o f i n d o u t w h i c h o f t h e m a n u a l m a t e r i a l s a r e r e l e a s e d , s o t h e g r o u p d i s c u s s i o n f o r i n t e r a c t i o n s w i t h g u e s t s s h o u l d b e a d d e d . I f t h i s f o r u m w i l l b e h e l d a g a i n , w e h o p e t h e d a t a a b o u t t h e f o r u m d o c u m e n t s w i l l b e m o r e d e t a i l e d a n d g u e s t s ’ b a c k g r o u n d m a t e r i a l s a n d s p e e c h e s i n t r o d u c t i o n c a n b e p r o v i d e d .

Simba: These are all embodied on the proceedings of the forum but are difficult to be looked for on the text layout. We will adopt App to present them, which is effort-saving and worry-free!

Robin Stein/ Hans-Kaspar Mayer, Babo Blue

W h e n I ’ m l o o k i n g b a c k a t t h e F o r u m , n e a r l y a l l o f m y m e m o r i e s a r e p o s i t i v e . T h e w h o l e o r g a n i z a t i o n w a s e x t r e m e l y g o o d a n d K a s p a r a n d I f e l t v e r y c o m f o r t a b l e d u r i n g o u r s t a y .N e v e r t h e l e s s t h e r e a r e s o m e p o i n t s t h a t m i g h t b e c o n s i d e r e d b y y o u f o r F B I F 2 0 1 6 :- M a y b e y o u c o u l d a r r a n g e a s m a l l a r e a w i t h e x h i b i t s f o r n e x t y e a r ? I t h i n k i t ’ s a l w a y s i n t e r e s t i n g i f y o u c a n r e a l l y s e e a n d t o u c h i n n o v a t i v e p r o d u c t s a n d t h a t ’ s a l s o a n i c e p o i n t w e r e s p e a k e r s a n d g u e s t c a n m e e t a n d d i s c u s s a b o u t t h e e x h i b i t e d i t e m s .- P e r s o n a l l y i w o u l d l i k e t o s e e m o r e s p e a k e r s f r o m

Suggestions for Improvements


s c i e n c e l i k e P r o f . M a r k P o s t . M o s t o f t h e s p e a k e r s w e r e f r o m t h e i n d u s t r y , w h i c h o f c o u r s e i s v e r y i n t e r e s t i n g , b u t a b e t t e r m i x f r o m s p e a k e r s f r o m s c i e n c e a n d i n d u s t r y m i g h t g i v e y o u a b e t t e r o v e r v i e w t o i n n o v a t i o n i n t h e i r e n t i r e t y .- A s i t w a s K a s p a r s a n d m y f i r s t t i m e i n S h a n g h a i i t w o u l d h a v e b e e n n i c e f o r u s , i f t h e r e w o u l d h a v e b e e n t h e p o s s i b i l i t y t o t a k e a B u s t o u r o r s o m e t h i n g c o m p a r a b l e f r o m t h e H o t e l t o e x p l o r e t h e C i t y . A s I b e l i e v e t h a t m o s t o f t h e s p e a k e r s v i s i t C h i n a f o r t h e f i r s t t i m e , i t h i n k t h a t t h i s w o u l d b e a n i c e “ g e t t o g e t h e r “ e v e n t f o r t h e c o m m u n i t y a n d a l s o a g r e a t o p p o r t u n i t y t o p r e s e n t t h e b e a u t i f u l C i t y o f S h a n g h a i t o y o u r g u e s t s .- L a s t b u t n o t l e a s t : I w o u l d h a v e b e e n n i c e i f b e e r o r w i n e w o u l d h a v e b e e n s e r v e d a t t h e G a l a - D i n n e r ; - )

Simba: Thanks for your feedback and suggestions. Actually we arranged an area for exhibits this year but most of the products were about packaging. We also plan and expect to see more innovative products in the exhibition area next year.

For the demand for speakers from science, we also heard the voice for it from other attendees. We will have 4 sessions next year: manufacturing, packaging, R&D and marketing. For each session, we will attach greater importance on food science and technology and increase the proportion of this part, so that it can support the producers better and furthermore, promote innovation in the industry.

It’s a good idea to take a tour together. We are discussing whether it is attainable since we need to take everything into consideration, such as the scenic spots to visit, routes and safety.

It’s also a great idea to provide beer and wine during gala dinner. Currently we have a potential wine producer to be our sponsor and we are discussing about the details. We are looking forward to seeing more beverage producers to bring different taste to the event next year. Thanks again for your precious time and valuable suggestions.


Participating Enterprises


Contact information

Statement

Isabella Hsu

Head of Content

Office Tel.: +86 21 5186 7146

Mobile Phone: +86 182 1704 9505

E-mail: [email protected]

Simba, event organizer, delivering real value

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You letters for correction will be welcomed if there is any difference between what is described in this report and the actual

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Date post:	28-Jan-2018
Category:	Food
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