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10 things to make you think
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10 things to make you think

FUTURELAB

We are Futurelab

WE ARE FUTURELAB

We create new profit opportunities for our customers.

Our innovations and methods allow:

• Marketers to become more effective & engaging.

• Innovators to identify the next opportunity or niche.

• CEO‗s to connect their business to the customer.

In the process, we challenge every barrier to business

success. We dislike writing reports, billable hours or

elaborate processes.

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

your business.

FUTURELAB

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

Athens – Barcelona - Brussels – (Bucharest ) – Johannesburg –

Hamburg – Moscow – Kiev - Munich - Shanghai

Priviliged

Relationships

Futurelab Structure

Welcome to the Bolshoi

FUTURELAB

• 30,000 products in an average supermarket

• +600% new product introductions since 1994

• Average shopping time: 21 minutes

• Average products bought: 18

• 80% of purchase decisions made in-store

• Average decision time: 2.5 seconds

• Shoppers only ―see‖ half of the products available

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

Source: G2 Shopper Marketing Survey, April 2008

FUTURELAB

Crisis

Especially Now Times are Tough.

WHY BOTHER?

Consumer Behaviours During a Recession Changes

Source: OgilvyOne, October 2008

Delay Purchases Plan Ahead

Service & Rewards Social Circling Save & Splurge

Deal Seeking

FUTURELAB

FUTURELAB

RESEARCH

Case Study: the US market

In the last years, US consumers spent approximatively US $1 trillion on food, or almost 10% of the

GDP.1 The pie chart above describes the consumers‘ reactions to the current economic situation.

With food prices going up (see previous slide), brands are now facing a harsh truth: customers are

disloyal.9

FUTURELAB

RESEARCH

Case Study: the US market

At the same time, consumer expectations have gone up, as shown in the above Accenture study.

Compared to five years ago, 44% of US consumers surveyed have declared that they have higher

customer service expectations. 23% have declared that their expectations have gone up since the

last year. Furthermore, only 3% of consumers worldwide say that their CS expectations are always

met. 10

FUTURELAB

RESEARCH

Case Study: the US market

With the advent of new media and the ever-increasing awareness channels, US consumers now

have increasingly higher expectations, with the CPG sector making no exception. Companies are

now finding that issues such as sustainability, wellness and transparency are coming up more and

more often. At the same time, the proven lack of effectiveness of traditional marketing methods is

raising the stakes even higher. And, to top it all off, studies show that, even though companies are

gathering huge amount of data about their customers, only a select few know how to interpret it

properly.

11

Unlimited Choice

perception

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

8 % of their customers agree

(Bain & Company)

FUTURELAB

How to make that light shine on you?

Your customers are

not a database –

and not a statistic

TRADITIONAL SEGMENTATION

―Look at the numbers‖

Elsa (Female/urban/mid-income)

CASE STUDY: 25-30 year olds

25

29

Understand what

truly drives your

customers

INSIGHT

Understand the emotional

needs of your customers

Most Marketers Don‘t Really Know ...

CHALLENGES/OPPORTUNITIES

QUESTION

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

P&G employees will need to get out

of the office and talk with customers.

India

Everyone should do every job in the

store at least once in his career.

FUTURELAB

Insights into Ideas

The Greek Consumer

FUTURELAB

RESEARCH

Issues and challenges: lack of insight

Retailers focus mainly on collecting and tracking data about ―purchasing

behaviors,‖ ―geographics,‖ and ―demographics.‖ All in all, Most food retailers

know the ―what‖ of their customers—what they buy, purchasing frequency, etc.

But few know the ―why‖.

20

10 things to make

you think

10 Insights to make you think –

10 Questions to ask yourself

―I am sick and tired of

Marketers lies‖

76% of consumers don‘t believe that

companies tell the truth in advertisementsYankelowich,2006

Transparency

• WHY (simple numbers or

other, simple, straightforward proof of this)

Transparency?

FUTURELAB

RESEARCH

I&C: Transparency

26

Transparency?

You are being watched….

FUTURELAB

SAB Miller: making a difference through beer

Page 12

Our key prioritiesDiscouraging irresponsible drinkingMaking more beer but using less waterReducing our energy and carbon footprintPackaging, reuse and recyclingWorking towards zero-waste operationsBuilding supply chains that reflect our ownvalues and commitmentBenefiting communitiesContributing to the reduction of HIV/AidsRespecting human rightsTransparency in reporting our progress

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

FUTURELAB COMMENT

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

CSR

Transparency

It doesn‘t have to be complicated….

Are your campaigns truthful?

Does the brand experience match the promise?

At every touchpoint?

Question: How transparent are we in

dealing with out customers?

― I don‘t want to lose that

connection to the

village, the old/real life‖

32Local Food

Authenticity

Authenticity

33Your own private sheep…

DoleTraceability

Authenticity

Crop to CupTraceability

Authenticity

De KasAs authentic as it gets – self grown food restaurant

Authenticity

FUTURELAB

Brewtopia - Custom branded beverages

Page 28

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

You can now even create your own labels for delivery Worldwide

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

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

FUTURELAB COMMENT

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

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

Customization

Question:

How authentic are we?

―The consumerism here is

horrible – too many

products, too much waste….‖

Reduce waste and over-abundance

100 Calorie Packs

FUTURELAB

RESEARCH

Future trends

41

Reduce waste and over-abundance

Mini-packs

100 Calorie Packs

The ultimate give-away?

Show that you (really) care

FUTURELAB

RESEARCH

Future trends

Functional food brand for pregnant women

A French company has developed a new line of food products for pregnant women. Dubbed Luna, the

range consists of eight products made with organic ingredients, all aimed at ensuring women get the

nutrients they need for a healthy pregnancy.

Included are honey & sesame biscuits that are rich in iron, calcium, magnesium, phosphorus and fibre;

and a herbal infusion that promotes healthy circulation.

45

FUTURELAB

RESEARCH

Future trends

Organic fast food - OBurger in Los Angeles

Los Angeles-based OBurger is out to

show consumers that organic, healthy

fast food can be just as convenient as

more calorie-clogging fast food options.

The 100% organic menu is equally

dedicated to the organic and sustainable

cause.

Besides that, the logistics alone at

OBurger are an impressive feat in

restaurant innovation. They use non-

toxic cleaning supplies and packaging

that is recyclable, compostable or

biodegradable.

46

Question: How can we (im)prove

our green credentials?

―I want you to really listen to

me, understand me, engage with

me‖

Engage in the conversation – Buzz, WoM

• People want to have a conversation, not just

being yelled at

• People trust people

FUTURELAB

33%

61%55%

51%

2003 2004 2005 2006

A person like yourself or a peer

Edelman Trust Barometer 2006

When forming an opinion of a company, how

credible would the information be from …

%

Academic 62

Doctor or similar 62

Person like yourself/peer 61

Financial Analyst 58

NGO Rep 58

Accountant 53

Lawyer 36

Regular employee 33

CEO 29

Union 19

Entertainer 17

PR person 16

Blogger 15

People Still Trust Humans

Cosmetic concerns

‗Help us choose‘

Start Listening

Listen in – and engage in the conversation!

Engage in the conversation!

Check yourself out regularly

And listen for the nasty bits….

And listen for the nasty bits….

Open your eyes

FUTURELAB

FUTURELAB

RESEARCH

Future trends

Wine tastings via Twitter

Bin Ends, which was started up earlier this year, is now gearing up for its second Twitter Taste

Live, which will be held this Thursday—the first one was in July. The project aims to give wine

enthusiasts around the globe a chance to join the world's top wine personalities online for tastings via the

popular social networking tool Twitter.

59

Question: Are we having

a conversation?

Find your existing communities

1 year: 100.000 registered customers

Now: 2,800,000 registered customers

Enable your community

Quickbooks – the best example

Provide them with the right tools

FUTURELAB

RESEARCH

Trends: Biocitizens

―Biocitizens‖ are people who join social networks (online or in person) based on shared health

interests. They organize around disease management or chronic conditions; wellness practices like

exercise, parenting, or aging; or environmental health concerns. These new collectives are

generating, collecting, and sharing information, and they are becoming authorities in their own right.

Their influence on the marketplace is increasing: As shoppers, we consult these social networks

about healthy purchasing decisions ranging from food to deodorants to cleaning products; as

consumers, we leverage them to demand a voice—not just a choice—in the products we are

offered. Food retailers need to be aware of the networks operating around them, and alert to

opportunities that help shoppers connect to each other.

64

FUTURELAB

RESEARCH

Trends: Biocitizens

65

FUTURELAB

RESEARCH

Trends: Biocitizens

66

FUTURELAB

RESEARCH

Trends: Biocitizens

67

FUTURELAB

RESEARCH

Trends: Biocitizens

68

A community site for every café?

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

April 2007: beta launch

June 2007: 3,000,000 users

July 2008: 15,000,000 users

The ultimate community connect

Facebook connect – recycle the community

Question: Are we fishing

where the fish are?

―It‘s all about my parea‖

Empower the Tribal Leaders

Let them do your work

Create a movement

FUTURELAB

BeerBankrollOthers are taking the idea of crowdsouring a step further. Including US based brewery called

BeerBankroll, who are experimenting with involving the community to fund and manage their

company.

How do they do it?

The first step is the Crowdfunding. Beerbankroll are recruiting members (50,000 to start

with), who will contribute $US 50 to get the project up and running.

Once BeerBankroll has raised $100,000, the Crowdmanaging kicks in. The BeerBankroll

community will then be involved in actively running the business. Members can submit

product ideas and vote on management decisions. They can have a say in everything from

the brand name, company logo, product design, product mix, marketing plan, advertising and

sponsorship.

The company profits are then divided by three: One third is paid to members. One third goes

back to the company. One third goes to charity.

If the experiment works, BeerBankroll will have an army of 50,000 beer drinking brand

evangelists to help them spread the word.

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

FUTURELAB COMMENT

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

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

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

Crowd Finance

Question: Do I know

what ‗tribes‘ I can

connect to?

―I just love your products –

and I would love to become

involved. I actually have

some good ideas!‖

Let them improve your products

Let them build their own

Let them promote them

Or even innovate for you

Or even innovate for you

Finally, let them create your advertising

Finally, let them create your advertising

Question: Do we involve

our fans enough?

―None of my staff I can

really trust – what if I get

sick? Who runs the

company?‖

What could you do?

Create a support

mechanism.

Re-engage the wisdom

of the retired

Question: Do we

understand the human

issues of our channel

partners?

And finally…the most important question of all!

FUTURELAB

FUTURELAB

“Today's marketing model is broken. We're applying antiquated thinking and

work systems to a new world of possibilities."Jim Stengel, Global Marketing Officer P&G

Advertising Myths

1. Frequency is not a driver

for action

2. There is no golden rule

about OTS

Advertising is a tax

you pay for

unremarkable thinking

Robert Stephens,

CEO, the Geek Squad

Watch TV30%

Listen to Radio29%

Use the Internet

23%

Read News-papers

10%

Read Magazines

8%

Media Consumption Europe – 2006

% of total media consumption time

Share of total adspend by medium (global) %

2008 forecast (March 2008)

Television37,8%

Radio8%Internet

9,7%

News-papers25,9%

Magazines11,7%

What‘s wrong with these numbers?

Most influential information sources in

purchasing electronic goods? (TOP 3)

CM

O C

ouncil‘

s R

eta

il F

luency

Report

, 2005

Newspaper Coupons 25

Internet 21

Product/Company Information 16

Retailer information 14

Other 14

Magazines 4

TV 4

Radio 3

FUTURELAB

Source %

In-store Sales Associate 49

In-store demonstration 36

Word-of-mouth from family &

friends

33

Even more wrong….

Share of total adspend by medium (global) %

2008 forecast (March 2008)

Television37,8%

Radio8%Internet

9,7%

News-papers25,9%

Magazines11,7%

39.6

4.7

29.5

12.7 13.5

47.7

32.4

13.8

6.1

0.060

10

20

30

40

50

60

tv newspaper radio internet games

Media Usage %

Advertising Spend %

More wrong numbers

£300 vs £40MM

How about this for budget efficiency?

Spend my budget

on WHAT!?

Get a fresh perspective on your budget

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

WHY?

And most importantly –

focus on word of mouth

– because Humans trust

humans

% of people that are more likely to

believe what they see, read or hear

about a company if someone they

know has already mentioned it.

Source: Edelman Trust Barometer 2008

• In Brazil, Canada, Germany, The Netherlands, Spain

, Sweden and the US, ― a person like me‖ is the most

credible source of information about a company

• 84% of opinion leaders 35-64 recommend companies

that they trust to people they know. 37% write

―emails of support‖.

• 78% share their negative company opinions with

others. 44% write emails complaining to the media, a

politician or an official third-party

RECOMMENDATIONS MATTER

The Power of Recommendation

The Power of Recommendation

Word-of-mouth is 7x more effective than newspaper

advertising, 5x stronger than a personal sales pitch and 2x as

effective as radio advertising

Marketing Science Institute, 2006

1967 1983 2001 20071955

This is not exactly news....

0 1 2 3 4 5 6 7 8 9 10

Extremely

unlikelyExtremely

likely

NPS™= (Promoters-Detractors)/Total

DETRACTORS PROMOTERSPASSIVES

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

HOW LIKELY ARE YOU TO RECOMMEND?

The Power of Recommendation

Promoters make you

more money-They spend more

-They negotiate less

-They stay longer

-They are easier to service

-They upgrade quicker

-...Slide: Bain & Company,

official NPS(tm) presentation Fred

Reichheld.

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

The Power of Recommendation

This works for almost every industry

The Power of Recommendation

111

Brands that built themselves with little or no

traditional “advertising”

Most

advertising

agencies

e.g. Oxford Street, London

11 million passers-by a year

(€ 4500/$5500 sq/m)

Or at € 2,000,000 p.a. budget

A CPM of € 18 or lower

Depending on

-Your product & service

- On-site revenues

- Marketing objectives

The numbers may add up

Or on a more modest level = the media value of your POP materials can be very high

It is also measurable

®

®

®

®

And something completely different:Retail as a Medium

No, it’s not...

• Traditional compensation & other systems stand in the way

• Creative and media work in isolation

• Lack of experience with new media (not everyone went “dot-com”)

• Venturing into uncharted territory = risky (even on a personal level)

• Nobody really knows how things will evolve

Who will be the First Penguin?

Where ARE the orcas?

Download an extended version of

this presentation and a digital

handout at:

Futurelab.net/FB

Read more on our blog at:

Blog.futurelab.net

The Element of Surprise

If you want to know more about how to find true insights in the emotional needs of your

target audience, and how to turn these into winning propositions and profit

opportunities, give us a buzz

Helena Chari

[email protected]

+30 210 72 60 600

www.tns-global.com

TNS ICAP Futurelab Greece

FUTURELAB

Futurelab

Milton Papadakis

[email protected]

+30 210 72 60 600

www.futurelab.net

Stefan Kolle

[email protected]

+32 473 888 996

www.futurelab.net

About Futurelab


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