1. Holistic Marketing in China
J. Alfonso A. de Dios
Telos Media Works, Ltd
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2. China:
A Journey of Complexity and Scale
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3. Diverse, growing markets
1.3 billion people
150m live below poverty line
56 ethnic groups
22 million urban poor
55 million middle-class HHs
largest steel producer; 95% of rare earth
33 provinces 292 languages
600 cities $7,000 per-capita GDP
1 million villages 25% annual retail sales growth
State-capitalist economy
world’s largest food producer
10% GDP growth past 30 years world’s largest pork producer and consumer
500 million live on less than $2/day
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4. Multiple brands, evolving consumers
Over 130,000 brands 350m middle class
25% annual retail sales growth
SOEs have most valuable brands
1,500+ Skin Care products 2,000+ Hair Care products
45% believe higher prices mean better quality brands
57% of rural Chinese have never brushed their teeth
10% control 45% of China’s wealth 25% annual retail sales growth
90% of urban women spend 10% on make-up
$140 million in brand counterfeit value
US$8 billion beauty market
48% penetration of sanitary napkins
40% annual growth of disposable diapers
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5. Complex media environment
$62Bn ad spend 4,000+ TV Channels
National, Provincial, City
Highly regulated
2,000 newspapers
2,000+ CATV operators 9,000 magazine titles
300 TV channels in Guangdong
1.1Bn mobile phone accounts
2,900 radio stations
54,000 cinemas
100,000+ Ad Agencies
538 million internet users
10,000+ Media Brokers
20,000+ Media Agencies State-owned Media
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6. Marketing success is about
expansion, renewal, growth
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7. 5 Principles
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8. Be consumer-­‐‑centric,
brand-­‐‑focused and results-­‐‑driven
Build superior products and create relevant brands
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9. Building Brands for the Chinese Consumer
• Create brand offerings that are grounded in
deep consumer understanding
• Leverage strong, aspirational equities in building
long-term relationships
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10. Brand experiences for the Chinese consumer
Tier Up: complex regimen counseling
Tier Down: Wash Habits Tier Down: “Kitchen Logic”
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11. “Preserve the core
and
stimulate progress”
Strong fundamentals and an innovation mindset
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12. Fix-­‐‑and-­‐‑Innovate
• Strengthening the fundamentals can drive short
and long-term brand growth
• Leverage a strong core in enabling value
creation and innovation
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13. P&G: Fixing costs created value
450
400
350
300
250 TV CPM
200 GRPs
150 SOV
100
50
0
2002 2003 2004 2005
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14. …and enabled innovation
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15. Data should enable, not disable
Don’t be enslaved by data and measurement
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16. Data to enable, not disable
• Challenge the status quo and create information
and measurement solutions as needed
• Humanize your data to create deeper
measurement relevance
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17. Creating measurement and data “solutions”
to connect with our consumer
Her Insights… How to connect
With her…
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18. Build and Orchestrate Collaborations
Leverage partnerships in maximizing ideas
and enhancing capabilities
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19. “Connect and Develop”
• Source innovation ideas, opportunities and best
practices from external partners
• Leverage external partners as an extension of your
organization, enhancing operational capability and
capacity
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20. Building an ecosystem of partners
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21. Create a culture that thrives on
operational excellence
Build the organization and the business
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22. Operate with excellence
• Anchor your operations on purpose, values and
principles
• Set BHAGs – Big, Hairy, Audacious Goals
• Create value everyday and operate an innovation-
enterprise
• Command from the ivory tower but work in the
trenches
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23. Client and Agency ‘Line-­‐‑of-­‐‑One’
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24. Our 5 Principles
• Be consumer-centric, brand-focused, results-driven
• “Preserve the core and stimulate progress”
• Data should enable, not disable
• Build and orchestrate collaborations
• Create a culture of operational excellence
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25. Principles at work for Pampers:
The purpose-­‐‑driven diaper
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26. Baby Stages of Development
WHO:
“Achievement Mom” HOW:
Prime Prospecting : Insights Holistic Communications
Customized TV
- Branded Content
- Home Shopping
WHAT: Digital/Print Channels
Shared Baby Experiences - Digital Communities
1. Mom Bonding Experience Channels
2. Information Lusting - Shopper Marketing
- Direct-to-Consumer
3. Personal Conversation
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27. Key Initiative Success Metrics
• Effective long-term connection with the ‘Achievement
Mom’ (Prime Prospect)
• +20% vs. sales goal (in 3 months)
• +24% shipment increase in Shanghai; 3X faster vs. other
markets
• TV Home/On-Line Shopping: Identified a new retail
channel in partnership with SMG
• China Pampers Marketing Spending ROI at $1.45 (#2 in
company; #2 after North America)
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