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New Consumer Mindsets ‘more for less’ some issues for brands Clive Woodger
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New Consumer Mindsets
‘more for less’
some issues for brands
Clive Woodger
• Confidence• More for less - ‘How it is’• Value• New Values• Customer Loyalty• Image and Reputation - Social Media• Retailer Role• Private Label
New Consumer Mindsets - ‘More for Less’
SCG London - Strategic Consulting Group
International Strategic Branding and Design Consultancy.
We work in the retail, financial and real estate sectors creating …
Some of our International clients …
SCG London - Strategic Consulting Group
SCG London - Strategic Consulting Group
Some of our Ukraine and Russia clients …
Return of Consumer confidence?U.K.
Consumers have become better more resourceful shoppers and more disciplined - ‘more planned … less impulse?’ but ‘I will always find a way
to afford items that make me feel good’ SYNOVATE FEB 2009
“Russian consumers behaved better than corporations and are more careful what they buy” …”they buy ‘on sale’ whatever the transaction”. ROUSTAM TARIKO TALKING TO BLOOMBERG AT DAVOS 2010
Return of Consumer confidence?Russia
‘More for Less’ ‘How it is’
Consumer Needs and Aspirations
‘Basic Instincts’
Live the Life
• quality/choice/experience
• what I want ... when I want ... how I want it - channel choice
Want it cheaper - bargain/deal
Want to feel good about themselves - ethics … responsibility
Brand Strategy – First Choice Profile Criteria
• ‘Russians more value conscious than global counterparts but reluctant to sacrifice on quality’ DATAMONITOR
• ‘35% of Russian grocery shoppers are considering changing where they shop for food and drink to save money’ DATAMONITOR
• Russians more brand selective - re-evaluation of old
shopping habits and brand loyalties
• Value conscious attitude will be longer lasting …
• More focus on premium product qualities than brand label - more like US/Europe … less like India/China
‘Value’ Price / Cost / Quality / Experience
Brand Strategy – First Choice Profile Criteria
People … Planet … Profit
• Consumers want to feel ‘good’ about what they buy - how was it procured, grown, reared, caught, manufactured, transported, by who, how?
• Did it harm the environment, people, communities?
• Was it ‘Fair Trade’
• CSR industry - differentiated by values
• ‘Look behind the label’ …. M&S
Added ValuesNew Values
Universal Values?
DAVOS 2010Opinion poll:global values for cooperation
40% chose honesty … integrity … transparency24% chose others’ rights, dignity and views20% chose the impact of actions on the wellbeing of others17% chose the preservation of the environment
Value with Values?
At a conference on sustainable consumption at the Royal Society in London …. Leading supermarkets react to government concerns regarding increasing food waste problems, cost to consumer, community and environment.
Tesco announced new policy on two items for the price of one. Customers to take one item and voucher for second item to take home when they are ready for it.
Sainsburys are reducing ‘buy-one-get-one free’ offers as research has shown customer preference for discounts on single item
Asda to give a discount on second item to make people review if they really need it.
New Values Health & Wellbeing
Increasing Awareness - Ethics / Sustainability /Health
Demand for Freshness Minimal processing, chilled, minimal packagingFood safetyOrganic productsFood rulesDiet booksIncreased frequency of shopping tripsHighlighting ‘sell by’ dates
Organic and Ethical label range opportunities
There is no such thing as loyalty … you are as good as your last transaction / customer experience
Challenge - loyalty cards
Transparent mutual deal - we really reward you - we learn about you - we can serve you better.
It has to be relevant, clearly worthwhile, proactive.
Role Model - Tesco ... Increased investment ... Key factor in success
Customer Loyalty Wishful thinking?
Retailer or Partner card?
Image and Reputation
Who is targeting who? - Social media challenge
What are people saying about you?
Traditional marketing - Brands talking about themselves
New media - texting … Facebook … Twitter CtoC, CtoB
Social Media Transparency … Exposure?
You can control the web site ... not the internet
Challenge
• Do what you say you do …
• Responding to criticism
• How to say sorry
‘Riding the tiger?’
Social Media ‘Talking about you’
We live in a world of increasing social networking
Everyone has something to say …
Fans or critics …
Instant content sharing …
‘Strange bedfellow’ - ignore or embrace?
Facebook examples‘clumsy corporate / guerilla consumer’
Corporate Watchers … communities of interest
Audiences … Influencers …
Black P.R. ‘instant cut and paste’
Retailer Role ‘solutions for living’
Lifestyle coach / trainer
- live life better … more interesting/fun ... healthier
‘Mum’ - how to cook … ideas … safe … reassuring …
Partner - ‘life support’ - products / facilities / services
Enabler - Value … ‘eating out at home’ … convenience
Private Label - ‘More for Less’ - Something Different
Obvious growth potential with Russian mindset changes
• Less status conscious - more acceptable ... for anyone … democratic
• Less brand loyalty - consumers more likely to switch
• Demand for a bargain - need value for money with economy pressures
• Trading Up - psychological requirement to treat yourself - premium own brands e.g. Tesco Finest
• Variety and Choice - new products / ingredients / flavours - something different
• Organic and Ethical - retailer label ranges & opportunities
A key retailer differentiation strategy …
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Creating Added Value Destinations
Strategy …
Branding …
Design …
Customer Centric Asset Management
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