Presentation given at the Food & Beverage Conference in Athens, November 2008. Based on insights research done in Greece, we present 10 topics to (make you) think about, with a focus on customer centric marketing and innovation.
3. 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 quot;get onquot; with making money for
your business.
FUTURELAB
6. Can you Make the Light Shine on Your Product?
WHY BOTHER?
• 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
Source: G2 Shopper Marketing Survey, April 2008
FUTURELAB
8. Consumer Behaviours During a Recession Changes
Delay Purchases Plan Ahead Deal Seeking
Service & Rewards Social Circling Save & Splurge
WHY BOTHER?
Especially Now Times are Tough.
Source: OgilvyOne, October 2008 FUTURELAB
9. 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
10. 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
11. 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
18. CHALLENGES/OPPORTUNITIES
Most Marketers Don‘t Really Know ...
India
P&G employees will need to get out Everyone should do every job in the
of the office and talk with customers. store at least once in his career.
QUESTION
WHEN DID YOU LAST “SPEAK” TO A SHOPPER? WORK IN A STORE?
FUTURELAB
20. 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
27. CSR
SAB Miller: making a difference through beer
Our key priorities
Discouraging irresponsible drinking
Making more beer but using less water
Reducing our energy and carbon footprint
Packaging, reuse and recycling
Working towards zero-waste operations
Building supply chains that reflect our own
values and commitment
Benefiting communities
Contributing to the reduction of HIV/Aids
Respecting human rights
Transparency in reporting our progress
Source:
http://www.sabmiller.com/NR/rdonlyres/B5B9E625-
8661-47E4-9EB3-
783C2D977036/0/SABMiller_SDR_2008.pdf
FUTURELAB COMMENT
Sustainability, CSR – do good and tell about it, in very straight forward ways. The ‗we employed this many
people, and paid this much in taxes, etc‖ works well.
Dont fall into the PR trap, but tell people what you do, and why you do it.
FUTURELAB Page 12
37. Customization
Brewtopia - Custom branded beverages
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.
FUTURELAB Page 28
45. 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
46. 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
48. ―I want you to really listen to
me, understand me, engage with
me‖
49. Engage in the conversation – Buzz, WoM
• People want to have a conversation, not just
being yelled at
• People trust people
50. When forming an opinion of a company, how %
credible would the information be from … Academic 62
Doctor or similar 62
A person like yourself or a peer Person like yourself/peer 61
Financial Analyst 58
61%
55% NGO Rep 58
51%
Accountant 53
Lawyer 36
33%
Regular employee 33
CEO 29
Union 19
Entertainer 17
2003 2004 2005 2006
PR person 16
Edelman Trust Barometer 2006
Blogger 15
People Still Trust Humans FUTURELAB
59. 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
64. 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
70. 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
77. Crowd Finance
BeerBankroll
Others are taking the idea of crowdsouring a step further. Including US based brewery called
BeerBankroll, who are experimenting with involving the community to fund and manage their
company.
How do they do it?
The first step is the Crowdfunding. Beerbankroll are recruiting members (50,000 to start
with), who will contribute $US 50 to get the project up and running.
Once BeerBankroll has raised $100,000, the Crowdmanaging kicks in. The BeerBankroll
community will then be involved in actively running the business. Members can submit
product ideas and vote on management decisions. They can have a say in everything from
the brand name, company logo, product design, product mix, marketing plan, advertising and
sponsorship.
The company profits are then divided by three: One third is paid to members. One third goes
back to the company. One third goes to charity.
If the experiment works, BeerBankroll will have an army of 50,000 beer drinking brand
evangelists to help them spread the word.
Source: http://digitaljury.wordpress.com/2008/07/03/crowdsourcing-for-beer/
FUTURELAB 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.
FUTURELAB
94. “Today's marketing model is broken. We're applying antiquated thinking and
work systems to a new world of possibilities.quot;
Jim Stengel, Global Marketing Officer P&G
FUTURELAB
96. Advertising is a tax
you pay for
unremarkable thinking
Robert Stephens,
CEO, the Geek Squad
98. Read Magazines
Magazines 11,7%
Read News- 8%
papers
10%
Watch TV
30%
Television
Use the 37,8%
News-
Internet papers
23% Listen to 25,9%
Radio
Radio Internet 8%
29% 9,7%
Media Consumption Europe – 2006 Share of total adspend by medium (global) %
2008 forecast (March 2008)
% of total media consumption time
What‘s wrong with these numbers?
99. Most influential information sources in
purchasing electronic goods? (TOP 3)
Magazines
11,7% Source %
In-store Sales Associate 49
CMO Council‘s Retail Fluency Report, 2005
In-store demonstration 36
Word-of-mouth from family & 33
friends
Newspaper Coupons 25
Television
37,8% Internet 21
News-
papers Product/Company Information 16
25,9% Retailer information 14
Radio
Internet 8%
Other 14
9,7%
Magazines 4
Share of total adspend by medium (global) % TV 4
2008 forecast (March 2008) Radio 3
Even more wrong….
FUTURELAB
100. 60 Media Usage %
Advertising Spend %
50
47.7
39.6
40
32.4
29.5
30
20
13.8 12.7 13.5
10 4.7 6.1
0.06
0
tv newspaper radio internet games
More wrong numbers
106. % of people that are more likely to
RECOMMENDATIONS MATTER believe what they see, read or hear
about a company if someone they
know has already mentioned it.
• 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
Source: Edelman Trust Barometer 2008
The Power of Recommendation
107. The Power of Recommendation
1955 1967 1983 2001 2007
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
This is not exactly news....
108. HOW LIKELY ARE YOU TO RECOMMEND?
Extremely Extremely
unlikely likely
0 1 2 3 4 5 6 7 8 9 10
DETRACTORS PASSIVES PROMOTERS
NPS™= (Promoters-Detractors)/Total
Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld
The Power of Recommendation
109. 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
110. This works for almost every industry
The Power of Recommendation
111. Brands that built themselves with little or no e.g. Oxford Street, London
traditional “advertising”
® 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
Most - On-site revenues
advertising - Marketing objectives
agencies
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
111
And something completely different:Retail as a Medium
113. • 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
114. Where ARE the orcas?
Who will be the First Penguin?
115. Download an extended version of
this presentation and a digital
handout at:
Futurelab.net/FB
Read more on our blog at:
Blog.futurelab.net
117. About Futurelab
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
TNS ICAP Futurelab Greece Futurelab
Helena Chari Milton Papadakis Stefan Kolle
Helena.chari@tnsicap.gr athens@futurelab.net sko@futurelab.net
+30 210 72 60 600 +30 210 72 60 600 +32 473 888 996
www.tns-global.com www.futurelab.net www.futurelab.net
FUTURELAB
Notes de l'éditeur
Action: get pictures of all the individuals and integrate
During WWII Russian theatres regularly had power outages, which meant the lights went out. After a while, the people attending plays came prepared with their flashlights. If the lights went out, they shone them on the actors. The actor that played best, got the most light.
Brazilian data
Six types of behaviour Delay decisions: don’t purchase the bigger ticket iteam Plan ahead: impulses are less important, shopping “lists” come back out and peopel stick to them ... They plan more Deal Seeking: people start shopping around, search the internet more, want coupons Service & rewards: people want be treated well and rewarded for their loyalty, I am giving you my hard earned cash so I want respect Social Circling: People shop less and fall back more on their social network (coccoon, but broader). They will consume together, but less (i.e. One bottle of wine drunk as a group, vs. A bottle as a couple). The social event will increase. So brands need to get ready for this sociability. Save & splurge. People save their money but at the same time splurge on little luxuries for themselves. These may be totally irrational, but will happen (cf. Cinema in the 20s) . People want entertainment, fun, forget worries
Data source: Accenture – the CIES Marketing Study – Leveraging customer insight to achieve high performanceQuote source: Accenture – the CIES Marketing Study – Leveraging customer insight to achieve high performance
http://blog.futurelab.net/2008/03/advertising_vs_reality.htmlGerman web site Pundo3000.com has done a case study of 100 product and package shots of packaged food and compared it to the reality of what is inside the package. Within less than a week, thousands of blogs all over the world linked to the initiative, describing it in tones of approval.
LocalChoice Milk (http://www.tesco.com/regionalsourcing/localchoicemilk.asp), sold by UK supermarket giant Tesco, is a new line of milk that is produced by local farms and sold at local Tesco stores. Responding to customer requests to make it easier for them to buy food which is genuinely local to their area, Tesco has started paying a premium to smaller local farmers which is above the rate they are paying to farmers who supply their standard milk. This means that farmers supplying new ‘LocalChoice’ milk will receive up to GBP 0.22 per liter, which is one of the highest prices paid to any producer in Britain. The company assures their customers that LocalChoice will not only reduce food miles but will also provide confidence to shoppers that if they buy a local product, they are helping their local economy and local suppliers, in particular small, independent family farmers. The milk packaging is branded as LocalChoice, instead of as Tesco, and uses simple handwriting on the labels to underscore the regional value message. Urban Rustic(http://www.urbanrusticnyc.com), located in Williamsburg, NY, is a grocery store and café that aims to connect local urbanites with local farmers and producers, much like farmers' markets do.
http://www.trendhunter.com/trends/trial-by-wineWhile miniature perfume trial bottles go back several decades, newer innovations have built off the concept. For instance, WineSide has come up with the novel approach of offering wines packaged in sample size tubes.Tubes are available individually or by the box, which can be chosen to provide an introduction to a variety, year or region. e.l.f. (http://www.eyeslipsface.com), short for \"eyes, lips, face\". Launched by New York-based JA Cosmetics roughly three years ago, e.l.f. appears to be turning the cosmetics industry on its ear. All cosmetics cost just USD 1, and customers can create personalized profiles that generate product recommendations and customized looks. e.l.f. currently ships only to US and Canadian addresses, but versions of the site have recently launched for both the UK and Australia. The company's products are also available in US stores, including Target and a variety of drugstores and convenience chains.
There are many statistics out there to inspire and motivate the eco-minded consumer, but one that should be particularly shocking for parents of school-aged kids is the fact that the average elementary student generates between 45 and 90 pounds of plastic, foil and other garbage in school lunch programs each year. That sobering fact comes from the Center for Ecoliteracy; hoping to do something about it, Kids Konserve recently launched a reusable, waste-free lunch kit that does away with paper, plastic and foil altogether.Priced at USD 40, the waste-free lunch kit includes a recycled cotton sack, cloth napkin, 16 oz. stainless steel beverage bottle, \"food kozy\" sandwich wrapper and two stainless steel food containers. Each component is also available separately from San Francisco-based Kids Konserve, as are a selection of products including reusable cloth gift bags, drink lids and stainless steel food savers. Kids Konserve also offers its lunch kits as a fundraising opportunity for schools, enlisting parent representatives across the country to help educate schools and build its \"Fundraising Through a Waste-free Lunch Program\" nationwide.\"With waste from snack and lunch breaks at an all time high and recycling knowledge and budgets still too low, Kids Konserve is empowering parents and kids with information and a reusable product that will help participating schools make the grade when it comes to decreasing waste in community landfills,\" explains company cofounder Chance Claxton. An admirable goal that will no doubt appeal to green consumers around the globe. Kids Konserve currently sells its products only within the United States—one to partner with in other parts of the world....? (Related: Happy healthy meals.)Website: www.kidskonserve.comContact: reuse@kidskonserve.com
NOTE: we have registered freebay.gr – we will transfer free to the company that has the intention to do the right thing with it.
And yes, it is a balancing act between truth and pain – but whatever you do -DON’T GREENWASH!
People want to have a conversation, not just being yelled atPeople trust people
‘Hell’ was the first result on google for a long while when searching for ‘Dell’, due to the actions of one rabid blogger.Since Direct2Dell has shown Dell’s true commitment to community engagement, that blogger has pulled all content and Dell has regained massive brand value.
Exxon Mobil Brandjacked in TwitterThe twitter community (myself included) was eager to embrace “Janet” a no holds barred up front in your face corporate representative that was ready to tackle the hard issues –sometimes without grace. Unfortunately, to the Twittersphere’s surprise and Exxon, Janet, is not an official company representative she claimed to be. Read the story to unravel the multiple angles to this unique case.
You say ‘oh, another guy trying to tell us to do social marketing and build communities. NO!Don’t try to create communities, find your existing ones…. PIChttp://www.flickr.com/photos/-wit-/1859812082/
Many similar initiatives internationally, usually initiated by individuals. Become a stimulant.
C Hugh Macleod
Once you start asking WHY – you will see your priorities changing quickly