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
• 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
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
perception
80% of CEO‘s believe their brand provides a superior customer experience
8 % of their customers agree
(Bain & Company)
FUTURELAB
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
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
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
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
FUTURELAB
RESEARCH
Future trends
41
Reduce waste and over-abundance
Mini-packs
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
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
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
1 year: 100.000 registered customers
Now: 2,800,000 registered customers
Enable your community
Quickbooks – the best example
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
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
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
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
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
Get a fresh perspective on your budget
Get the store staff on your side Invest in the call centre Simplify the form....
% 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
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
• 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
Download an extended version of
this presentation and a digital
handout at:
Futurelab.net/FB
Read more on our blog at:
Blog.futurelab.net
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
+30 210 72 60 600
www.tns-global.com
TNS ICAP Futurelab Greece
FUTURELAB
Futurelab
Milton Papadakis
+30 210 72 60 600
www.futurelab.net
Stefan Kolle
+32 473 888 996
www.futurelab.net
About Futurelab