Emerging Trends In Consumer Behavior

Anand Varadarajan

Presented at SSIM, Hyderabad

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What's In It For You?• A brief look at:

– Social Media

– Brand Advocacy

– Brand Buzz

• Emerging Consumer Behavior

• Positive and Negative Brand Advocacy

• Brand Websites

• Campaigns with Human Touch- Sony Case Study

• Companies using Social Media

• Brand Buzz Measurement- Tarceva Case Study

• Brand Association Map (It's a Trade Secret )

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Consumers see thousands of commercial messages every day. They ignore almost all of them. How can brands possibly break through

the clutter?

Problem Definition- 1

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How can brands capitalize on the layers of complexity getting added to the media

environment everyday?

Problem Definition- 2

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Let consumers help create the message

The Solution

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Consumer of the Past

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Modern Consumer

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Mobile CommerceIn Control: Mobile Commerce

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E- CommerceTechnology Savvy: E- Commerce

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Ready-To-Eat FoodsConvenience Seekers

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Aspirational

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• Wants to be in control

• Bold and Expressive

• Convenience seeking

• Aspirational

The Modern Consumer: Characteristics

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A Tectonic Shift From the Past

King Consumer

Social Media'Word of mouth' spread through

social networks

Consumer Buzz

Attention grabbing properties of the brand & cascading

impact it can generateBrand Advocacy

'Word of mouth' recommendation of the product or service

Consumer Generated Advertising

Advertising based on consumer perception

Online Communities

Micro community sites; Rating & review sites;

Consumer & media blogs

Brand Association

Attributes associated with the brand by consumers

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Consumer Expression Social Media

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Source: Ubiquity Media

Social Mediascape

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Recommendations from ordinary people are the most powerful and credible sources that consumers use when considering purchase options.

- Jupiter Research, 2007

Brand Advocacy

An Advocate is someone who tells everyone how great your business is.

-Murray Raphel

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Online Communities

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Growth in Wikipedia

Growth in Facebook

Growth in Twitter

Growth in Social Media

Mobile Internet Telephony

The proliferation of smartphones

Compelling consumer experience benefiting from 3G network

Mobile advertising, however, experimental at best- expected to grow at a furious pace

Source: Nielsen Mobile

Penetration of Mobile Internet

08/07/09 20Source: 2007 Nielsen CGM

Factors Prompting CGM

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Positive Brand Advocacy

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Negative Brand Advocacy

Patient Advocacy

Positive patient advocacy for the new smoking cessation drug

Online discussion boards serve as anempowering tool for patients

Patients ask informed questions and take control of their health & treatment

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Must Stay Credible at All Cost!

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Source: The Nielsen Company, 2008

Area of focus

What it Entails for Brand Marketers

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Examples of Brand Websites

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Share My Idea

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Share My Story

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Design the World a Coke

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Companies Using Social Media

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@comcastcares on Twitter

For better customer service

Alternative to jammed inbound call center

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@FlyKingfisher on Twitter

Used for Customer Communication

Faster response

Exclusive Facebook Gadgets- Cirque Du Soleil

A performing arts and circus company

Facebook offers exclusive content such as backstage photos and videos, interaction with performers and show updates

Widget determines which shows match the mood

Added 23000 fans around the world

Corporate Blog- Gene Logic

More than 300 users on our LinkedIn account

Highly targeted audienceHas improved marketing campaign effectiveness

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Brand Campaigns With Human Touch

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Tata Tea 'Jaago Re' Campaign

Encourage India's youth to participate in elections

Redefined awakening attributes of tea

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TOI- Lead India Campaign

Involved people from all over country

Made people feel good about their contribution

Generated massive buzz and visibility

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The Axe “Call Me” Campaign

Audacious and Bold

Voices the bold expression of today's youth

Massive buzz and offtake

Consumer Generated Advertising- Honda Insight

Using online buzz topics to create Ad

Timing of Ads with launch

Used bloggers' comments on green BG for Eco-friendly

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Sony Campaign

• Build branded social community

• Increase awareness

• Engage more customers

• Retain “Innovation Enthusiasts” who value latest technological features

• Increase customer loyalty

• Increase Sony business

Objective

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Backstage 101

Digital Darkroom

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Sony Campaign- Results

• Increased repeat visits and new customers

• Increased brand awareness

• Increased customer loyalty and advocacy- 59% customers said they would recommend Sony products to family member, friend & coworker

• 36% of users bought Sony product compared to 20% the previous year

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Brand Buzz and Measurement

Attention grabbing properties of the brand and cascading impact it can generate

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Generating Brand Buzz

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Bank of China

Introduced 4 million currency notes to commemorate 2008 Olympics

Notes snapped up @ 7 times their value

Customers wanted to frame them as memory

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Designer Cotton Bag

Designed to replace plastic bags

Covered by fashion magazines

Sold at a premium to its original price

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Measuring Brand Buzz

Here Comes the Trade Secret!

08/07/09 48Courtesy: Nielsen Online

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• Obtain directional insights

• Assess competitive attributes and issues

• Determine messaging elements to optimize brands

Analysis of consumer communication on the internet

Brand Association Map

Generating Brand Buzz- Tarceva Case Study

Study conducted by Nielsen Buzzmetrics, New York

Buzz data collected from relevant online patient forums

Tarceva (Genentech) was compared with Abraxane (Abraxis Oncology)

Predominantly word-of-mouth discussion data

Level of discussion tracked for 6 months prior to FDA approval and 4 months post approval

Generating Brand Buzz- Tarceva Case Study

Note: Tarceva n = 2,515 users in lung cancer communities between May 25, 2004 and March 31, 2005;Abraxane n = 6,760 users in breast cancer communities between May 25, 2004 and March 31, 2005.

Percentage of Users Discussing Tarceva and Abraxane

Generating Brand Buzz- Tarceva Case Study

Therapies with pre-approval buzz resulted in enormous increase in post-approval discussion

Interest in drugs with pre-approval buzz continued to grow several months after their approval

The amount of interest was not directly related to the potential for the new drug

Conclusion:Investment in generating pre-launch buzz, however modest, can lead to an exponential increase in the word of mouth a product receives once it becomes available to its targeted market.

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People don't care how much you know until they know how much you care - about them and

their problems.

- Robert Cavett