Luminous purple is the

new black

Trends impacting communication• No Risk Buy – Taking the risk out of purchasing the product

• Price Transparency – You can no longer hide your profits

• Added Value- Consumers expect more than they ever have before

• We come to you – Don’t expect consumers to run after you

• Crowd Sourcing – The death of traditional research

• The Limited Edition – Making the consumer feel special

• Age of responsibility – Leveraging CSI to build brand messaging

• Leveraging Social Capital – Consumers lend their social capital to promote brands

• Content is the message – entertain and educate consumers through engaging content

• Brand Facilitator – Companies are emphasizing the “means” more than the product

• Engage don’t talk – brands need to have meaningful conversations

No Risk Buy

Taking the risk out of purchasing the product

No Risk Buy• Increasingly we are witnessing brands offering security when buying their

products, i.e. The No Risk Buy

– Money back guarantee– Retrenchment insurance– Roadside assistance– Extended Warrantee

“Shop easy: More companies offering peace of mind to layoff-wary consumers.”

Aaron Crowe, Finance website

No Risk Buy

Korea’s Hyundai makes hay while others fight for survival

On the back of a 6.8 per cent global sales increase last year, Hyundai’s charge continues this year, fired by affordable new models that hit the spot with many recession-wary consumers, plus greatly improved quality and a helpful Korean currency.

Go Auto, Ron Hammerton, 6 March 2009

WebPrint

Television

No Risk BuyHarley-Davidson is attempting to increase sales by appealing to existing owners with its We Ride Free campaign.

Price Transparency

You can no longer differentiate on price

Price Transparency• Legislation has responded to consumer demands for transparency

– National Credit Act– Consumer Protection Act

• Marketers have responded to consumers demands for transparency – Online comparisons– On packaging – MSRP– Advertising message’s

Price Transparency “Customer knowledge about pricing increases due to increased availability of pricing information.”

DaveChaffey

Hippo.co.za PriceCheck.co.zaTravelstart.co.za

Added Value

Consumers expect more than they ever have before

Added Value• Marketers are responding to the trend to offer more than what is initially

expected and comparable to competitors– Banded packs– Added volumes– incentives schemes - Discovery Vitality & E-bucks

"As we move through 2009, consumers will be intensely value oriented, even more so than in the recent past. We are seeing this already with consumers shifting to more price-focused retailers. For all retailers, this environment will require added attention to keeping costs under control."

Ira Kalish, director of consumer business for Deloitte Research

Added Value

Receive rewards every time you spend at selected stores

Rewards program, centered around health and wellness

Buying more than a cellphone, no paperwork, free delivery, free connection, free sim

Added ValueGetting more than just an internet connection, it’s important to refine your offering before you go to market

We come to you

Don’t expect consumers to run after you

We come to you

“If the mountain won't come to Muhammad, Muhammad must go to the mountain."

We come to you• Don’t call us, we’ll call you

– Lead generation reversed

• Go to the consumers environment– Play where they play IE Pop-up stores

• Servicing at the bottom end– They come to you

Now you see 'em, now you don't stores generate buzz--and often salesForbes.com, NY

Crowdsourcing

The death of traditional research

Crowdsourcing• Crowdsourcing has been around for quite some time, although now people and

companies are starting to use it in different ways– Feedback from consumers in early R&D

Crowdsourcing: A Million Heads is Better than One Readwriteweb

Idea Bounty InnoCentive

Crowdsourcing

Chevrolet SparkUsing consumers in the development / design process

Crowdsourcing• Engaging consumers earlier when developing products & services

– Creation, Wikipedia– Prediction, Yahoo Buzz– Organisation, Google

The Limited Edition

Making the consumer feel special

The limited edition• Consumers want to feel special

• Exclusive experiences for brand loyalists– Enrich their brand understanding

• Different ways of appealing to consumers– Creating a sense of urgency– Rewarding brand loyalists

“Teens want exclusive products designed for the masses”Tina Wells

Exclusive books: Fanatics Preview

YDE:Pre-sale

NuMetro:Girls night, Premiers

Age of Responsibility

Leveraging CSI to build brand messaging

Age of responsibility• Companies are finding more meaningful ways of expressing their brand

values

– Advertising CSI programmes– Turning marketing into a “cause for good”– Creating meaningful packaging

Voluntary CSI is really nothing more than corporate advertising that makes consumers aware of new products with features for which they are willing to pay

Regulation (Spring 2005)

Age of responsibility

OUTsurance used internal and external CSI campaigns to create it’s brand.

EXAMPLE:OUTsurance PointsmenStaff Helping South Africa Out campaign

Age of responsibilityNedbank - billboard

Nedbank - TV

Age of responsibility

Longines – Andre Agassi Academy

Leveraging Social Capital

Consumers lend their social capital to promote the brands they love

Leveraging Social Capital

• Social networking has allowed marketers to take advantage of other peoples social networks and endorsements– Twitter– Facebook– Myspace– MSN

“Network marketing entails distribution of products and services through a network of independent businesspeople, who in turn either take care of the distribution themselves or recruit others to do so”Researchers at Stanford University, Jason Ethier

Super Chirp Lets Twitter users get paid for their content stream.

The Publisher ends up with 70% of the subscription fee.

Leveraging Social Capital

Beamagpie

Convert your tweets into money

Content is the message

Entertain and educate consumers through engaging content

Content is the message

“Today, as the consumer exerts more control over her consumption of media, as primetime gives way to “my time” and as technology empowers more people to make the shift from content consumer to content creator, the effectiveness of traditional, interruption advertising has been called into question.”

Greg Verdino, VP/Director of Emerging Channels

Content is the message• Entertainment value of the communication is as important as the message

the marketer is trying to convey

"Strong brands don't advertise in the media any more - they control their contents," Naomi Klein

Coca-cola - happinessCadbury - Gorilla

Brand Facilitator

Companies are emphasizing the ‘means’ more than the product

Brand FacilitatorSelling the portal• Brands are making it easier for you to purchase their products, often

emphasising the means more than the product– Vehicle finance (roadside warrantee)– Sell the portal (internet)– Credit facility– Bypassing intermediaries

“While the most effective model for the future might be brand as facilitator, the preponderance of marketing today is still using the brand-as-broadcaster model.”

Greg Ness, Chief Strategy Officer, Sundog

Brand Facilitator

Flexible travel payments

In-store hair tests, to buy the right one for you

Sold voting capacity before Obama

Selling warranty and roadside assistance before vehicles

Engage don’t talk

Brands need to have meaningful conversations

Engage don’t talk“Brands must respect their consumers and seek understanding of their needs and stimulate a two way dialogue to serve their needs.”

Jeff Bennett

• Engagement is about finding new ways to open a dialogue with consumers

• Marketers are increasingly going to consumers to understand what they want from the brand

Engage don’t talk

FNB monitoring Social Media Hellopeter, helping companies

Summary• No Risk Buy – Taking the risk out of purchasing the product

• Price Transparency – You can no longer hide your profits

• Added Value- Consumers expect more than they ever have before

• We come to you – Don’t expect consumers to run after you

• Crowd Sourcing – The death of traditional research

• The Limited Edition – Making the consumer feel special

• Age of responsibility – Leveraging CSI to build brand messaging

• Leveraging Social Capital – Consumers lend their social capital to promote brands

• Content is the message – entertain and educate consumers through engaging content

• Brand Facilitator – Companies are emphasizing the “means” more than the product

• Engage don’t talk – brands need to have meaningful conversations

Vacuums Suck

It’s the sharing of market intelligence that allows us to stay ahead of the curve

insightexchange@mccann.com

Thanks

“In today's environment, hoarding knowledge ultimately erodes your power. If you know something very important, the way to get power is by actually sharing it.”

Joseph Badaracco