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McKinsey on Marketing & Sales

Wendy Clark, SVP, Integrated Marketing Communications and Capabilities for the Coca-Cola Company, gave this presentation at McKinsey's Chief Marketing & Sales Officer event in November, 2012. Wendy explained how Coke's marketing is liquid (easy to spread) and linked (connected to its core values and messages). To be successful today, companies need to dedicated resources to develop new ideas and businesses. At Coke, 70% of spend funds current proven programs, 20% to new and promising trends, and 10% to test completely new ideas. The latest McKinsey customer experience insights: http://mckinseyonmarketingandsales.com/topics/customer-experience

Classified - Internal use

CONTENT
SCALE
SPREAD
IN REAL TIME
WITH OR
WITHOUT US
Classified - Internal use

Classified - Internal use

“I want a life in which I am the protagonist.
I do not want a boring life” -- ITALY
Classified - Internal use Source: The Truth About Youth, McCann Worldgroup

WHAT TO DO?

Classified - Internal use 5

LIQUID &
LINKED
3 AREAS OF FOCUS

Classified - Internal use

STORIES
(CONTENT, EXPERIENCES, CONVERSATIONS)

SPREAD
(OWNED, EARNED, SHARED, PAID)

VALUE
(TRANSCENDS THAT OF OUR OWN COMPANY)

Classified - Internal use

ADVOCATES

RIGHTS
HOLDERS DETRACTORS
BOTTLERS

NGO’S
CONSUMER

VALUE INVESTORS AGENCIES VALUE
INFLUENCERS SHOPPER CUSTOMER CREATORS

SUPPLIERS

EMPLOYEES MEDIA
EXPERTS

SHAREHOLDERS

Classified - Internal use

BE
SHAREWORTHY

Classified - Internal use

11 December 2012 Classified - Internal use 10

Classified - Internal use

Classified - Internal use

DOCUMENTARY

Classified - Internal use

SOUNDTRACK

11 December 2012 Classified - Internal use 15

MOBILE & SOCIAL

Classified - Internal use

THINK BIG
START SMALL
SCALE FAST

Classified - Internal use 17

EMBRACE
OUR NEW
SALESFORCE

Classified - Internal use

53MM+ Classified - Internal use
1B+

DO NOT
ACCEPT
THE
STATUS
QUO
Classified - Internal use

EVOLVED PAID INVESTMENT MODEL

NOW NEW

NEXT

SPURRING INNOVATION AND CREATING
VALUE OVER TIME
VA L U E C R E AT I O N

2011 2012 2013

TIME

PLAY WELL

LIQUID &
LINKED

STORIES
(CONTENT, EXPERIENCES, CONVERSATIONS)

SPREAD
(OWNED, EARNED, SHARED, PAID)

VALUE
(TRANSCENDS THAT OF OUR OWN COMPANY)

PLACEMENT MOVEMENT
OF MESSAGES OF STORIES

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Spanish consumers are pessimistic about the economy. Rising prices, unemployment, and the invasion of Ukraine are top concerns, and consumers are trading down. In Spain, consumers are most concerned about rising prices, unemployment, and the invasion of Ukraine. Their views of the current and future state of the economy remain pessimistic, at a level comparable to attitudes in the early months of the COVID-19 pandemic. Spend for groceries and gasoline soared, while consumers reduced money directed to savings and spent less on non-essentials. Of the 80 percent of consumers who have assumed new shopping behaviors in the last three months in search of value for money, more than half tried private labels. Trade-down in retailers visited and brands is evident, with the key drivers of choice being prices and value for money. However, 39 percent of consumers say they plan to splurge in 2022.

McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey on Marketing & Sales

UK consumers are pessimistic about the economy. Rising prices and the invasion of Ukraine are top concerns, and consumers are trading down significantly. In the United Kingdom, consumers are most concerned about rising prices and the invasion of Ukraine. Their views of the current and future state of the economy are extremely pessimistic, worse than throughout the entire COVID-19 pandemic. Spend for groceries and gasoline soared, while consumers reduced spend in non-essential categories. Almost two-thirds of consumers have assumed new shopping behaviors in the last four to six weeks, with more than four out of ten trying private label. Trade-down in retailers visited and brands is evident, with the key drivers of choice being prices and value for money.

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McKinsey European consumer sentiment survey: How current events are shaping U...

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COVID-19 is no longer among Italian consumers’ top concerns. Consumers remain pessimistic about economic recovery and inflation; many aim to reduce their spend. Italian consumers are increasingly worried about the effects of rising prices and the invasion of Ukraine. Unemployment is a number-two concern for respondents in Gen Z, millennials, and the low-income group. Almost six out of ten share a negative view of Italy’s current economic state; hopes for an economic recovery are lower than during the entire COVID-19 pandemic. Consumers observed the highest price increases in groceries and gasoline. To cope with inflation, Italian consumers are changing their purchase behavior, shifting toward discounters and private labels. The leading factors for these choices are prices and value for money.

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McKinsey European consumer sentiment survey: How current events are shaping I...

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German consumers are pessimistic about the economy. Rising prices and the invasion of Ukraine are top concerns, and we see a significant down-trade in shopping. In Germany, consumers’ top concerns are rising prices and the invasion of Ukraine, followed by climate change and COVID-19. Pessimism about the current and future state of the economy has eased but remains at a level comparable to attitudes in the early months of the COVID-19-pandemic. As spend for groceries and gasoline soared, consumers reduced money directed to savings and spent less on non-essentials. Of the 70 percent of consumers who have assumed new shopping behaviors in the last three months, more than four out of ten tried private labels. Trade-down in stores visited and brands is clearly visible, with the key drivers of choice being prices and value for money. However, 46 percent of consumers say they plan to splurge in 2022.

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McKinsey European consumer sentiment survey: How current events are shaping G...

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For consumers in France, inflation eclipses other sources of concern. It triggers changes in shopping behaviors as consumers seek better value for money. French consumers’ optimism regarding the economic recovery is stable at around 14 percent—a level last seen in the depths of COVID-19 lockdowns. Top sources of concern are rising prices (cited by 54 percent), followed by the invasion of Ukraine (13 percent) and climate change (10 percent) and far ahead of COVID-19 (4 percent). Nine out of ten survey respondents perceive high price inflation in the country. These trends have implications for brand and retailer loyalty: of the 73 percent of respondents saying they have tried new shopping behaviors in the last three months, 40 percent say they purchased private labels. Household products remain the category most affected by this trading-down trend.

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McKinsey European consumer sentiment survey: How current events are shaping F...

McKinsey European consumer sentiment survey: How current events are shaping F...

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Japanese consumers’ behaviors and finances are gradually recovering to normal, though their responses indicate a slight increase in pessimism. The long-lasting impact of COVID-19 is prolonging Japanese consumers’ intent to stay conservative about spending across categories. In a further sign of cautiousness, the trend of shrinking pessimism over the past few years reversed for the first time. Meanwhile, people’s demand for travel is rising, considering the next seasonal vacations.

McKinsey Survey: Japanese consumer sentiment during the coronavirus crisis

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McKinsey on Marketing & Sales

Australian consumers, in view of the omicron variant, are feeling less optimistic about economic recovery than last year and remain cautious on spending. In Australia, optimism about economic recovery has declined since the November 2020 pulse survey but remains higher than at the onset of the COVID-19 pandemic. Six in ten consumers predict routines will return to normal only after June 2022; two-thirds do not plan to splurge in 2022. Although Australian households increased their spending in the past month, net intent to spend remains negative. Digital and omnichannel adoption continues in most categories, and intent to use out-of-home services rose. Seventy-five percent of consumers have addressed the rise of omicron by changing how they engage in out-of-home activities. Most consumers have tried a different brand or retailer, especially to switch brands in pursuit of value.

McKinsey Survey: Australian consumer sentiment during the coronavirus crisis

McKinsey Survey: Australian consumer sentiment during the coronavirus crisis

McKinsey Survey: Australian consumer sentiment during the coronavirus crisis

McKinsey on Marketing & Sales

Indian consumers’ optimism has remained high since October 2021 and has reached the highest levels across other Asian markets since COVID-19 started. Nearly three-quarters of India’s consumers are optimistic about economic recovery, and net intent to spend is growing and positive across many categories. Omnichannel usage continues across the majority of categories, and social-media influence is high, especially for Gen Z and millennials. More than 90 percent are engaging in social media and entertainment platforms. There is an upward trend for new technology, such as crypto and augmented reality/virtual reality, and consumers intend to continue digital activities as the COVID-19 crisis subsides. About 40 percent of consumers are engaging in out-of-home activities, especially among the vaccinated segment. Most consumers have tried new shopping behaviors such as new retail outlets and new brands.

McKinsey Survey: Indian consumer sentiment during the coronavirus crisis

McKinsey Survey: Indian consumer sentiment during the coronavirus crisis

McKinsey Survey: Indian consumer sentiment during the coronavirus crisis

McKinsey on Marketing & Sales

Indonesian consumers remain optimistic on the economy, expecting higher incomes and spending. Many tried and plan to keep using digital services and omnichannel methods. In Indonesia, optimism about future economic conditions increased more than 25 percent over September 2020 from an already high base, boosted by planning for the upcoming holiday season. Eight out of ten consumers say they will dine out, shop for gifts, and redecorate. Out-of-home activities are generally rising but remain far below prepandemic levels. Optimism about the economy is tempered by views of household finances; half predict finances won’t return to normal before June. The loyalty shake-up continues, with 60 percent citing value as their primary reason to try a new brand. New digital behaviors are starting to show evidence of stickiness: 60 percent say they intend to use new shopping methods when the pandemic subsides.

McKinsey: Survey: Indonesian consumer sentiment during the coronavirus crisis

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McKinsey on Marketing & Sales

Most Korean consumers expect that normalcy will return to routines only after June 2022, yet there are signs of pre-COVID-19 routines returning. Korean customers have been less optimistic than those in other countries about the economic recovery. But optimism in Korea is much higher now than two years ago. Half of consumers indicate a desire to splurge, with intent to do so being the strongest in Gen Z and millennials. One-eighth of consumers say they have returned to out-of-home activities.

McKinsey Survey: Korean consumer sentiment during the coronavirus crisis

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As inflation rises, French consumer hopes for economic recovery wane, with optimism sinking back to the lows of lockdown. Optimism regarding the economic recovery has decreased to 14 percent in France—levels last seen in the depths of COVID-19 lockdown. Top sources of concern are rising prices, the invasion of Ukraine, and political uncertainty. Nine out of ten survey respondents perceive high price inflation in the country, and 60 percent expect prices to rise further over the next year. These trends have implications for loyalty: in the search for higher purchasing power, 69 percent of respondents have tried new shopping behaviors in the last four to six weeks. Household products remain the most impacted category, with 65 percent of consumers switching for cheaper options.

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McKinsey European consumer sentiment survey: How current events are shaping F...

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Pessimism about recovery is at an all-time high in the United Kingdom. Rising prices are the top concern, with consumers significantly trading down in stores and products. UK consumers are feeling great economic uncertainty. With energy and transport costs eating away at consumer savings and non-food spend, the top reasons given by survey participants for economic anxiety are the gas supply, supply-chain shortages, and energy issues. Consumers report the highest perceived price increases in groceries and household supplies, with two-thirds becoming more conscious about energy usage. Half of consumers changed their grocery brands in the last four to six weeks, with trading down a clear trend: price and value were the strongest drivers here.

McKinsey European consumer sentiment survey: How current events are shaping U...

McKinsey European consumer sentiment survey: How current events are shaping U...

McKinsey European consumer sentiment survey: How current events are shaping U...

McKinsey on Marketing & Sales

Rising prices and the Ukraine invasion are top concerns for German consumers, fueling a general slide into economic pessimism. German consumers are experiencing intense unease regarding the state of the economy and its future outlook—with public sentiment sinking lower than at any time during the COVID-19 pandemic. Survey participants felt the greatest concern about rising prices and the invasion of Ukraine. Spend on groceries and gasoline has soared, even as consumers cut spending in non-essential categories. Almost two-thirds have assumed new shopping behaviors in the last four to six weeks, with more than forty percent trying private-label brands. There’s a clear trade-down trend in stores visited and brands chosen, with prices and value for money as key drivers.

McKinsey European consumer sentiment survey: How current events are shaping G...

McKinsey European consumer sentiment survey: How current events are shaping G...

McKinsey European consumer sentiment survey: How current events are shaping G...

McKinsey on Marketing & Sales

Across the continent, the pattern holds: Europeans are anxious about the state of their countries’ economies, and worried about the future. Russia’s invasion of Ukraine and price inflation overshadow other concerns, and consumer anxieties in turn are impacting confidence in household finances and national economies, especially among vulnerable populations. Worried about spending more on food, transport and fuel, consumers report cutting back on less essential items. Most say they’ve changed their shopping behaviors in recent months, trading down to more affordable brands and retailers. With no relief clearly in sight, 2022 continues to prove a challenging year for the continental consumer.

McKinsey European consumer sentiment survey: How current events in Europe are...

McKinsey European consumer sentiment survey: How current events in Europe are...

McKinsey European consumer sentiment survey: How current events in Europe are...

McKinsey on Marketing & Sales

Spanish consumers are primarily concerned about inflation and the invasion of Ukraine, and are becoming increasingly pessimistic about the economy. Only 14 percent of Spanish consumers are optimistic about economic recovery, with concerns focused on inflation and the invasion of Ukraine. Four in ten have an increasingly negative sense of the economic outlook—mostly due to petrol and supply-chain shortages, as well as unemployment. Price-increase Perceptions of price increases are particularly high regarding groceries (at 95 percent) and other household products. In these categories, more than half of respondents have reacted to inflation by trying less costly brands. Over the last six weeks, half have tried a private-label brand, 30 percent have switched brands, and a quarter have tried out a different retailer.

McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey on Marketing & Sales

Italian consumers are increasingly pessimistic about the economy, with many aiming to reduce spending and modify consumption habits. Italian consumers are increasingly worried about the effects of rising prices, as well as the invasion of Ukraine. Of Italians surveyed, six in ten expressed a negative view of the current economy; hopes for an economic recovery are lower than they were throughout the entire COVID-19 pandemic. Consumers perceived the highest price increases in groceries and fuel, along with strong increase in spend. These sentiments have translated into reduced consumption. Changed consumer behavior is also apparent, with a shift towards discounters and private-label brands. Price, value for money and availability are the biggest drivers of these choices.

McKinsey European consumer sentiment survey: How current events are shaping I...

McKinsey European consumer sentiment survey: How current events are shaping I...

McKinsey European consumer sentiment survey: How current events are shaping I...

McKinsey on Marketing & Sales

Rising prices and the Ukraine invasion are top concerns for German consumers, fueling a general slide into economic pessimism. German consumers are experiencing intense unease regarding the state of the economy and its future outlook—with public sentiment sinking lower than at any time during the COVID-19 pandemic. Survey participants felt the greatest concern about rising prices and the invasion of Ukraine. Spend on groceries and gasoline has soared, even as consumers cut spending in non-essential categories. Almost two-thirds have assumed new shopping behaviors in the last four to six weeks, with more than forty percent trying private-label brands. There’s a clear trade-down trend in stores visited and brands chosen, with prices and value for money as key drivers.

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey on Marketing & Sales

As inflation rises, French consumer hopes for economic recovery wane, with optimism sinking back to the lows of lockdown. Optimism regarding the economic recovery has decreased to 14 percent in France—levels last seen in the depths of COVID-19 lockdown. Top sources of concern are rising prices, the invasion of Ukraine, and political uncertainty. Nine out of ten survey respondents perceive high price inflation in the country, and 60 percent expect prices to rise further over the next year. These trends have implications for loyalty: in the search for higher purchasing power, 69 percent of respondents have tried new shopping behaviors in the last four to six weeks. Household products remain the most impacted category, with 65 percent of consumers switching for cheaper options.

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey on Marketing & Sales

Pessimism about recovery is at an all-time high in the United Kingdom. Rising prices are the top concern, with consumers significantly trading down in stores and products. UK consumers are feeling great economic uncertainty. With energy and transport costs eating away at consumer savings and non-food spend, the top reasons given by survey participants for economic anxiety are the gas supply, supply-chain shortages, and energy issues. Consumers report the highest perceived price increases in groceries and household supplies, with two-thirds becoming more conscious about energy usage. Half of consumers changed their grocery brands in the last four to six weeks, with trading down a clear trend: price and value were the strongest drivers here.

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey on Marketing & Sales

Spanish consumers are primarily concerned about inflation and the invasion of Ukraine, and are becoming increasingly pessimistic about the economy. Only 14 percent of Spanish consumers are optimistic about economic recovery, with concerns focused on inflation and the invasion of Ukraine. Four in ten have an increasingly negative sense of the economic outlook—mostly due to petrol and supply-chain shortages, as well as unemployment. Price-increase Perceptions of price increases are particularly high regarding groceries (at 95 percent) and other household products. In these categories, more than half of respondents have reacted to inflation by trying less costly brands. Over the last six weeks, half have tried a private-label brand, 30 percent have switched brands, and a quarter have tried out a different retailer.

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey survey: European consumer sentiment survey: How current events are s...

McKinsey on Marketing & Sales

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McKinsey European consumer sentiment survey: How current events are shaping S...

McKinsey European consumer sentiment survey: How current events are shaping S...

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