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5 Global Trends That Will Impact Your Marketing Strategies in 2012
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5 Global Trends That Will Impact Your Marketing Strategies in 2012

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Take a look at 5 economic and cultural trends that will impact your marketing strategies in 2012 and beyond. Beth Tessier, Executive Director of Consumer Insights, and Ellen Desmarais, Executive …

Take a look at 5 economic and cultural trends that will impact your marketing strategies in 2012 and beyond. Beth Tessier, Executive Director of Consumer Insights, and Ellen Desmarais, Executive Director of Digital Strategy bring together the latest research on:
- Urbanization and how its impacts on city growth and geographic expansion affect the way you go to market
- New world of mobilization and the marketing implications you must consider in order to thrive in an m-commerce world
- Proliferation of customer choices and how your customers make decisions in order to help your buyers to make the right ones
- The how, why, and what of online sharing and the marketing strategies you need to consider
- The right balance of global vs. local and how you can successfully operate in a borderless world

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  • Both an economic and cultural trendIncreasing in the number of urban dwellers all around the worldMore and bigger cities than ever - the ever-increasing wealth and power of cities and those who live in themMagnets for wealth, talent and creativity - The spread of urban culture and values 2007/2008 was the beginning of the urban millennium, when, for the first time in human history, a majority of the world's people will live in cities and towns rather than in rural areas. This half of the world’s population lives in cities today, is also a concentration of wealth, generating more than 80% of GDP. Breaking it down further, only 600 urban centers, with 20% of the world’s population, generates 60% of the world’s GDP.
  • Half of global GDP in 2007 came from 380 cities in developed regions, with more than 20 percent of global GDP coming from 190 North American cities alone. The 220 largest cities in developing regions contributed another 10 percent.
  • In 2025, 600 cities will still make up 60% of the world’s GDP…but they won’t be the same ones as today. But by 2025, one-third of these developed market cities will no longer make the top 600; and one out of every 20 cities in emerging markets is likely to see their rank drop out of the top 600.
  • Over the next 10-15 years, the center of gravity of the urban world will move east.In this new landscape of urban economic power, Shanghai and Beijing will outrank Los Angeles and Paris, and Delhi and Bangkok will surpass Detroit and Barcelona.
  • Today's 23 megacities—with populations of ten million or more—will contribute about 10 percent of global growth to 2025, below their 14 percent share of global GDP.In contrast, 577 middleweights—cities with populations of between 150,000 and ten million, are seen contributing more than half of global growth to 2025, gaining share from today's megacities. By 2025, 13 middleweights are likely to be have become megacities, 12 of which are in emerging markets (the exception is Chicago) and seven in China alone.
  • Made in China becomes Sold in China (becomes the 3rd largest consumer market)
  • Businesss’ geographic expansion should examine cities rather than countries for growth opportunitiesThe report says that, until now, companies have been right to base their strategies on developed markets and megacities in emerging markets – a combination that delivers 70 per cent of growth today. But, it warns, this combination will deliver just one third of world growth to 2025.Countries growth paths depends largely on how well they manage their city growthIn some countries, industry and wealthy consumers will be concentrated in urban centers
  • Mobile devices areexpanding the reach of technology into our physical world with newfound meaning and utility -- they're always on, and they're connected to an individual.
  • While the mobile technology is changing, so are consumer attitudes! Not just ANY mobile experience will do – expectations are growing. 1. Real-time experiences -- not just QR codes – but a whole new bag of tricks. 2. If technology helps you do things easier – mobile heightens those expectations everywhere we go. Starbucks, movie theatre, airport3. For now, the novelty alone is enjoyable – but mobile marketers are starting to understand the importance of delighting the customer – from instant promotions to interactive games in real time.
  • 74% made a purchase after mobile research – three-quarters of them bought in the store. Google & Ipsos OTX US, YouGov UKMobile barcode scanning and comparison shopping is becoming a common activity among consumers.AisleBuyer takes it to the next level. “Give your customers the best of both worlds: the convenience of online shopping and the instant gratification of in-store shopping.”- mobile self-checkout barcode scanning for product info, reviews, reco’s. Uses your shopping history to deliver coupons, offers, discounts stores credit cards, loyalty cards, receipts. QR codes being replaced by NFR (Near Field Communication) shortwave wireless standard: allows devices to communicate securely and perform transactions – no key for my new car.
  • Walmart & Target + 10 other retailers -- it’s not the money, it’s the data* JPMorgan Chase hired a senior VP of next generation payments – reporting to the head of mobile banking, E-Commerce and payments.* Bank of America, Wells Fargo and J.P. Morgan join ClearXchange, mobile payment venture: access checking accounts and even move money to other banks using cell phones. Banks recognizing the need to jump on the fast-moving mobile payment bandwagon before it leaves them stranded. With plenty of rivals circling around, Bank of America and the rest want to stake down territory before getting edged out by companies like Square and now Google. Along with Square and Google, AT&T, Verizon and T-Mobile are also scrambling to set up a mobile payment network.
  • 20% of all Google searches are mobile The #1 phone used on flickr is the iPhone. “The best camera is the one you have with you”Mobile Video used by 11% of global online consumers: penetration is highest in Asia-Pacific and those in their late 20s.2010: 160M mobile boarding passes were issuedAugmented Reality: * Layer displays digital information called “layars” into your smartphones field of vision. Restaurants, banks, local information.* Streetmuseum is a iPhone app created by the Museum of London that allows you to browse historical photographs in various parts of the city.The app leads you to various locations around London using either the map or GPS. Once you’re there, click the “3D View” button, and the app will recognize the location and overlay the historical photograph over the live video feed of the real world, giving you a brief glimpse into how the past looked.* Macy's touch sensitive "magic mirrors“ in their changing rooms -- Mirror hooked up to a tablet computer. Customers can flick through store products on the tablet and then call up an image of the product on the mirror, superimposing it on webcam footage of themselves.
  • Mobile is a double-edged sword -- both an opportunity and a challenge -- For individuals and for brandsMobile empowers the customer – but will create new audiences, new platforms, new pricing models, etc.Targeted marketing, 1:1 advertising -- the right message at the right timemobile ad revenue more than doubling each year3. Big Data4. 5. Must create a value beyond price6. Mobile: where we start, not an add-on
  • Capitalism makes everything complicated. Once upon a time, buying blue jeans meant buying Levi's. There was only a single type of Cheerios, two kinds of toothpaste and a few brands of beer, all of which tasted the same.But now we live in an age of surreal abundance
  • Compare late 1970s to late 1990sVarieties of milk on supermarket shelves increased from 4 to 19Number of breakfast cereals from 160 to 340Number of soft drinks from 20 to 87Number of over the counter pain relievers from 17 to 141There are now 11 flavors of Cheerios.size of supermarkets has increased by more than 20% since 1994.
  • Digital reduced barriers to comparison shopping for consumer and barriers to entry for businessesFrom news to travel to information, increased choice is permitting every area of our professional and personal lives
  • Variety can benefit customers and marketers alike.For example, consumer research shows that companies offering a variety in one product line (e.g., cola, diet cola and diet caffeine-free cola) can improve market share and increase the likelihood that customers find exactly what they want or needBrands that offer a greater variety of options that appear compatible and require similar skills tend to be perceived as having greater category expertise or core competency in the category, which, in turn, enhances their perceived quality and purchase likelihood.
  • But according to psychological research, offering customers too many choices (a phenomenon known as overchoice) carries with it the risk of overwhelming them with uncertainty. For example, a study of retirement plan contributions published in 2003 illustrates that, when deferring a decision is possible, overchoice can cause some customers to opt out instead of act.Compared data for nearly 794,000 employees at 647 companies. The number of investment options offered to each employee varied from as few as two to as many as 59.
  • Researchers from Harvard University and the University of Toronto demonstrated that customers tend to avoid brands that require them to think too much when deciding on a product.
  • People adapt pretty effectively to proliferating choices. Doesn’t mean that we are making the best decisions, but with experience, we learn to negotiate the alternatives. People used to largely rely on expert opinion to inform their decisions: industry norms, government standards, academic research. Consumer Reports, Good Housekeeping. But channels like Twitter, YouTube, Facebook, and blogs are giving us the opportunity to have our decisions influenced by a new breed of self-proclaimed experts
  • Amazon.com stands at the forefront of advanced customer segmentation. Its recommendation engine correlates the purchase histories of each individual customer with those of others who made similar purchases to come up with suggestions for things that he or she might buy. Although the jury is still out on the true value of recommendation engines, the techniques seem to be paying off: CleverSet, a pure-play recommendation-engine provider, claims that the 75 online retailers using the engine are averaging a 22 percent increase in revenue per visitor.2 Note that some of these become middleman – abundant choice has created an opportunity for middlemen – not as many companies are doing a great job on their own
  • Honda offered its popular Accord in only one of three models—the DX, the LX, and the EX—a good, better, best strategy. 
  • So what’s for companies determining how to structure optionsUnderstand who your customer really is - An adult who buys one pair of jeans every two years may find The Gap overwhelming; a teenager who owns nine pairs isn’t having that problem Greater reliance on Information externalitiesSocial recommendationsCultural norms
  • Latitude Survey, 2011, Active sharers in USPeople used to largely rely on expert opinion to inform their decisions: industry norms, government standards, academic research. But channels like Twitter, YouTube, Facebook, and blogs are giving us the opportunity to have our decisions influenced by a new breed of self-proclaimed experts
  • * Product recommendations from family (63%) and friends (31%) are trusted most (Latitude, 2011)* eMarketer survey: 46% said something good about a brand or company on a social networking Website -- double the percentage who had said something negative (23%).”72% of people share because they find something interesting or entertaining, much more than thinking about what recipients might value (58%) (CMB Consumer Pulse 2010 (n=1504) Market research & consulting.
  • Facebook stats: average user is 38 years old. 61% of facebook users are age 35+ (Facebook) 130 Average number of friendsTwitter stats: average user is 39 years old. 64% are age 35+ (CNN, Pew, Royalpingdom.com) 4000+ TPS during Obama's speech on bin LadenLinked In: Average user is 44 years old. dominated by large company employeesUsing social networking sites; 86% of 18-29; 61% of 30-49; 47% of 50-64; 26% of 65+ . Biggest users of social networks are in Brazil.* two girls (aged 10 & 12) in Australia got lost in a storm drain and, instead of calling the police or their parents, posted a message on Facebook.* Atlanta city councilman posted to Twitter instead of calling cops. “Need a paramedic on corner of John Wesley Dobbs and Jackson st. Woman on ground unconscious. PlsReTweet”.
  • Tweet Mirror uses a high-def camera to take images of shoppers trying on outfits. They can then study the photos themselves or tweet or post on facebook for friends to offer a second opinion. “You can finally answer the question: does my bum look big?” Guy started: wife shopping for wedding dresses, taking polaroids to share with friends. Sharing comes full circle, used to take your friends shopping, then you would call to ask their opinion, you could email them -- now they are there with you in the dressing room. Nielsen: Online video survey – North Americans & Europeans lag in adoption35 Hours of video uploaded to YouTube every minute. 2+ billion videos watched per month on Facebook. 20 million – Videos uploaded to Facebook per month.
  • Washington Post Social Reader provides full access within Facebook to stories from The Post and selected news and entertainment sources and allows instant, one-click sharing of stories. All a person needs to do is read a story in the Facebook app and it will be posted to his or her Facebook profile and to their friends' News Feeds, giving readers quick access to the stories their friends find interesting. Washington Post: The app experience is fully embedded within Facebook and a person must opt-in before he or she can access it. Click the "Mark item as unread" link at the bottom of each article to delete stories from Facebook. CNET quote on Spotify – provides instructions for how to override sharing.
  • Rocketing ahead.We don’t know the answers – but we have to consider these questions to get out in front of the market.Can’t help but think about the masses of content and data that are being generated on a daily basis – never mind where it will be stored?
  • FIFA – commonality of experinece
  • Bizarre though it might sound, teens in southern Chile are producing hip-hop videos and posting them on YouTube using Huilliche, a language on the brink of extinction.Researchers who runs the linguistics laboratory at the Institute of Anthropological Research in Mexico City, discovered teens in the Philippines and Mexico who think it's cool to send text messages in regional endangered languages like Kapampangan and Huave.Consumers think globally, but act locallyThe growth of global retailers like Walmart, Carrefour and Tesco was contrasted with the growth of local farmer's markets.The growth of English as the international language of business was contrasted with the revival of the Welsh language.The consolidation of media companies like News Corporation was contrasted with the explosive growth of local language blogging.
  • In a survey conducted by Millward Brown for The Global Brand in 8countries – U.S., UK, Germany, Mexico, Brazil, Russia, India andChina – they compared a set of global brands with local competitorson a number of different attributes, including whether or not thebrand was thought to be part of the national culture.Results showed the importance of being part of the nationalculture for BOTH local and global brands, but local ones have moreendorsement on average. Local brands, therefore, have the homefield advantage.However, being seen as setting trends was also an important driver of purchase and there global brands out performed local By breaking the status quo with high quality products and servicesand compelling new propositions. Global brands typically create astronger presence and identity than local brands and are often theones seen to be setting the trends in a category.
  • People in Latin America and developed markets are far more likely to focus on whether a brand is part of the local culture. That's very different from Russia, India and China, who talk the least about it. In part that is because people in those countries doubt the quality of their own brands.
  • Global brands were once local, and when they travel, they have to start over and build that relationship anew. The further they move away from their home culture, the more difficult it becomes to create the same strength of relationship with consumers.Communication is the toughest nut to crack when going global because communication is integrally bound up with culture: values, humor and local references.Only 18% of ads that tested exceptionally well in their country of origin did so when tested in another country.So how do global brands succeed?By breaking the status quo with high quality products and services and compelling new propositions. Global brands typically create a stronger presence and identity than local brands and are often the ones seen to be setting the trends in a category.Distribution is key. A global brand still needs to be where people shop whether that is in the supermarket, the village store or the street vendor. And you have to make sure people notice your brand. Global brands use their marketing muscle. Heavy spend and good creative, which is often sourced from elsewhere.Global brands need to respect the local culture and ideally blend into it.
  • Brands often need to adapt more than their advertising in order to drive local relevance. The formulation of Coke differs around the world in order to deliver a taste better suited to local taste buds. The name has been translated in China to mandarin characters.Global brands live on a continuum from globally consistent to locally adapted.Men's need to shave is fairly consistent around the world. Gillette's Fusion is manufactured in Boston and distributed around the world with the same positioning, packaging, pricing model and communication.YouTube has global reach but is actively pursuing a localization strategy because it recognizes people will be more likely to share and appreciate content if they also share the same values, references and sense of humor. strips.70% of YouTube traffic comes from outside the US. YouTube is localized in 25 countries across 43 languagesMcDonalds has adapted its offering around the world. While it maintains the name, logo and color scheme, it adapts its offer to meet local needs. In Brazil it is an upscale delivery service, in Germany its coffee shops outsell Starbucks and in Japan it sellsteriyaki chicken
  • Market entry -> customer loyaltyLocalization is no longer just a market entry strategy, but also a way of increasing and maintaining the customer loyalty long term.Mass product -> high end productMore and more high-end or prestige brands are starting to localize to build their brands more strongly in local markets, while previously this strategy was primarily adopted by mass product brands like KFC, P&G, etc.Cost efficiency -> brand imageRecently, cost efficiency is taking less importance in brand localization strategies, and long term brand building is becoming more essential. Calling on local culture is now regarded as an efficient approach to increase brand relevance and build brand image.
  • Transcript

    • 1. 5 trends to watch
    • 2. urbanization
    • 3. Both an economic and cultural trendURBAN BOOM: Increasing number of urbandwellers around the worldURBAN MIGHT: More and bigger cities thanever, with increasing wealth and powerURBAN CULTURE: Magnets for innovation,wealth, talent, and creativity Source: McKinsey Global Institute, Trendwatching.com
    • 4. The top 600 cities will grow bigger and richer In 2007 In 20251.5 billion 2.0 billionpeople live in these 600 cities – people live in these 600 cities in 2025 -22% of the global population 25% of the global population; 1.6 times as fast as the world as a whole$30 trillion $64 trillionof GDP in 2007 – more than half of of GDP in 2025 – nearly 60% of globalglobal GDP GDP485 million 735 millionhouseholds, with average per capita households, with average per capitaGDP of $20,000 GDP of $32,000 Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
    • 5. …but the cities won’t be the same1 of every 3developed market cities will no longer makethe top 600… 136 new cities are expected to enter the top 600. All from the developing world, including 8 from Latin America 13 from India 100 from China Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
    • 6. Urban economic clout moves east Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
    • 7. Rise of the mid-size city• Engine of GDP growth shifts from developed economies and megacities to middleweight cities in emerging markets Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
    • 8. Expanding middle class Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
    • 9. Impacts of city growth Creating a different profile of consumer • Faster pace, ever- Creating vibrant changing nature of life new enterprise • Spend money markets for differently Urban centers businesses to • Exposed to a wideact as magnets, serve variety of lifestyles and increasing experiencesconcentration of • Require appropriate Construction, infrpopulation, jobs, shapes, sizes and astructure, trans industry, and features of urban portation, financi goods and services innovation al markets will all be growth Consumer trends often industries start in urban centers before moving mainstream Source: McKinsey Global Institute, Trendwatching.com
    • 10. Considerations for geographic expansion• Look beyond the household names• Understand cities as the locus of country growth• Look beyond GDP growth to identify hot markets• Be prepared to play in new urban centers• Understand customer needs – and follow their movement
    • 11. mobility mobility Photo credit: Unaesthetic, Flickr
    • 12. Mobile has hit critical mass 90% of the world now lives in a place with access to a mobile network China has over 900M mobile phone users In India, mobile accounts for nearly 90% of all Internet users In the developing world, two in three people have a mobile phone subscription 48M people have cell phones -- but no electricitySource: International Telecommunications Union; China Ministry of Industry and Information Technology; OnDevice Research; Cisco
    • 13. Mobile quickly becoming mainstream • Mobile will be the most By 2013 common way the world accesses the Internet • Smartphones will be the By 2015 primary enablers of consumer shopping Source: Cisco Visual Forecasting Index, 2011; Nielsen, 2011
    • 14. Expectations are building• Ability to enhance our real-time Convenience experience with digital interaction Real Time• Convenience: technology helps you get things done easier• Mobile makes life more enjoyable. Enjoyable Expect to be delighted, surprised, rewarded “And above all, we need an experience that is efficient and intuitive. If we get that, then well come back for more.” High Quality Mobile Experience Source: Gregg Wheeler, Solstice Consulting
    • 15. M-commerce• $24B global mobile spending this year; more than $1 Trillion by 2015.  Amazon mobile sales in 2011 $2B;  eBay in 2011 nearly $4B• 74% of smartphone shoppers have made a purchase following mobile research (US)• 26% of Americans will use a mobile coupon this year• Mobile shopping apps let you check availability, look for deals, reviews and compare prices Source: Nielsen; Amazon; eBay; Google & IPSOS OTX; eMarketer
    • 16. Mobile Payments141M people made an m-payment in 2011 Total spend: $86B • Mobile payments will accountSquare (Visa) doing over for 15% of all credit card $4 Billion/year transactions by 2013, and will overtake cards in 10 years Walmart & Target are developing a mobile wallet service Source: Gartner; Yankee Group; World Payments Report 2011
    • 17. Enhancing the local experience 40% of mobile searches are local After looking up a local biz, most call or visit 50% of all Google map usage is from a mobile device Less need for paper: Movie tickets, train tickets, couponsLocation Based Services and Augmented Reality:Local promotions, things to do, background info Source: Google
    • 18. Challenges & Opportunities Mobile disrupts the traditional path-to- purchase Entering an era dominated by mobile marketing Mountains of data – who owns it?  Mobile obviates the need for paper, plastic, bricks & mortar  When consumers can quickly search for best price, retailers need to differentiate through factors other than price  Mobile will be the starting point – not an afterthought
    • 19. proliferation of choice
    • 20. The average U.S. supermarket now stocks… 19 varieties of milk 87 varieties of soft drinks 340 breakfast cereals141 over-the-counter pain relievers More than 50 varieties of bottled water
    • 21. Increased choice results largely whenconsumers are mobile enough to chooseamong suppliers and options • Digital only opened the floodgates • Permeating every area of professional and personal lives
    • 22. For Marketers For ConsumersOffers a sense of control Choice Improve market share Perceived as having greaterGreater opportunity for aproduct to satisfy specific can be category expertise or competence in a categoryneeds good Respond to competitive offerings
    • 23. But too many options can lead customers to inertia…Compared data for nearly 794,000 employees at 647 companies. The number of investment options offered to eachemployee varied from as few as two to as many as 59. Source: The Wharton School
    • 24. …or being overwhelmed• The human brain hasn’t kept pace with the rate of change Americans have mixed• We can only consciously feelings about this “new” news environment. Over contemplate about four bits half (55%) say it is easier of information at any given to keep up with news moment and information today• Rationality can be quickly than it was five years ago, but 70% feel the overwhelmed amount of news and• Process of selecting can information available make us feel worse. Adding from different sources is options increases overwhelming. expectations in light of lack of perfection. Source: Pew Internet Research
    • 25. Consumers start adapting … “A small-town resident who visits Manhattan is overwhelmed by all that• Satisfy vs. Maximize – is going on. A New Yorker, thoroughly adapted to the city’s “good enough” hyperstimulation, is oblivious to it.” “I didn’t want to spend time going through all• Limit factors/set rules the choices available…we needed a car that was fuel efficient and had room for family. Typed in – Fuel Efficient + Car + Room for Children and• Seek “expert” opinions up popped a few choice of automobiles. Went with the top three and ended up choosing the 1st one because it met our requirements. In• Stick to familiar brands and out and done and driving home.” and environments “Consumers tend to return to the products they usually buy, not even noticing 75% of the items competing for their attention and their dollars.” Source: The Paradox of Choice, Barry Schwartz
    • 26. Businesses are responding by helping customers find what they need Recommendation engines Comparison shopping Filtering If abundant choice is critical to your business, then help customers navigate the variety that exists
    • 27. Others find advantage in containing choice Contained choice/preferred environment“We say no to good ideas every day; we say no to great ideas; to keep the number of things we focus on small in number. [We] can probably put every product we make on one table – and we had revenue last year of $40 billion.” – Tim Cook, Apple COO, Feb 2010
    • 28. Choice can be a good thing, but it’s not always the best thing• Research shows that a broad product assortment can increase market share—and the chance that customers will find exactly what they’re looking for• However, psychologists suggest that too many options can overwhelm some customers—causing them to delay their decision (if possible) rather than making a choice.• In order to be successful, understand how your customers make choices• Help your customers make decisions; they have greater reliance on external assistance than ever before
    • 29. sharingSharing Photo credit: Unaesthetic, Flickr
    • 30. Why people share online: it’s not so new “I try to share only information that will reinforce the image I’d like toTo promote your own personal brand present: thoughtful, • 68% share online to give people a better sense reasoned, kind, interested of who they are and what they care about. and passionate.”To belong and feel valued “I enjoy getting comments that I sent great information • 69% share information because it allows them and that my friends will to feel more involved in the world. forward it to their friends • 73% share information because it helps them because it’s so helpful. It makes me feel valuable.” connect with others who share their interests Source: Latitude US Research
    • 31. People use online sharing to …process information “Without the ability to share our  73% process information more information, what value deeply, thoroughly and thoughtfully when they does it have?” share it.  85% say reading other people’s responses helps them understand & process information and events. make decisionsinfluence others  Use friends as curators of our own consumption  Save you from something bad  Looking for “people like me”  Point you to something good  Immediate information  Bring you around to my side of a cause  To vent! Source: Latitude US Research
    • 32. The amount of information people share online doubles each yearOver 1 billionmessages posted daily • 850 M Users; 1 in every 9 people on earth • 500 M Users age 35+ and 70% outside the US • Over 50M users like brands every day • 225M active worldwide users • Nearly 250 million tweets per day • Adding nearly 500,000 users a day • 150M users world wide; 60% male • 40% in US; India is next with 9% • More than 6.5M students & 9M recent grads Source: Facebook; Twitter; Pew; Linked In
    • 33. Sharing is not just social networksE-mail is still the most widely used method of sharing • Facebook is a distant second • But, for 18-24 year olds, Facebook has an edge • 4.2 billion active text users; that’s 60% of the humans on earth Source: Facebook; Gartner; TomiAhonen Almanac
    • 34. Sharing doesn’t always require words 5B+ photos on flickr 917M+ global users of Skype 4B+ videos watched per day on YouTube Tweet Mirror • 10 different languages • In Netherlands, Belgium, Germany, Italy, A ustria, Switzerland, Norway, Australia, I ndia and China Source: Flickr, Skype, YouTube
    • 35. Sharing doesn’t even require “sharing” Everything we do online is shared with someone – whether we intend or not. • The devices and apps we use • The sites we visit • The things we buyFrictionless Sharing • The searches we make “Now that Spotify & Facebook are BFF’s, what you listen to on Spotify gets shared on Facebook … Maybe you don’t want to explain … your two-hour Barry White session last Thursday when you said you were at the office.” There’s an argument to be made that Facebook isnt forcing anyone to share; it’s simply adapting to the increasingly social way that we are living our lives online.” Source: Washington Post, CNET
    • 36. Sharing: considerations for the future Sharing generates masses of content and data … • Who owns it? • How will it be used? • Will people start asking to be compensated for their content/data? • What are we prepared to offer in exchange? Automatic sharing is on the rise. • As it increases quantity -- will it inevitably decrease quality? How do we engage with those who want a relationship, when and where they want it -- without being a nuisance when they don’t? What are the opportunities to develop a true three dimensional relationship with our customers in a two dimensional space?
    • 37. global/local puzzle
    • 38. The world is becoming more global • Going out into the world, absorbing influences • News travels fast – we know what’s happening as it is happening • Frictionless sharing – borderless world The 2010 FIFA World Cup was the most watched TV event in history, broadcast inevery country (including North Korea) and garnering an average audience of 400 million viewers per match.
    • 39. Yet consumers still respond to localization• Growth of local farmers’ markets with growth of global retailers Walmart, Carrefour and Tesco• Growth of English as international language of business same time as revival of the Welsh language• Consolidation of global media companies contrasts with explosion of local language bloggers Consumers may experience local brands as • Authentic • A reaction against • Personal globalization as distant and • Relevant homogenous • Nostalgic
    • 40. Local is affiliation and relevance• What is local can differ by market• Local does not equal language; Language does not equal local
    • 41. Local and global brands have different advantagesBeing part of the national culture is a Being seen as a brand that is "setting thesignificant driver of purchase intent for trends“ is a significant driver of purchaseboth global and local brands intent for both global and local brands Source: The Global Brand Survey, Millward Brown
    • 42. …but may differ by market Source: The Global Brand Survey, Millward Brown
    • 43. Solving the global/local puzzle• Adapting products and services to meet local needs and tastes• Solving the local value equation through product and pricing strategies• Creating a strong presence and a distinctive identity• Getting as close to the local culture as possible Adapted from The Global Brand, Milward Brown
    • 44. No standard recipe for global brandsGlobally Locallyconsistent adapted A common global Consistent brand A global Internet positioning adapted supported by a platform creating to local tastes and common need local sites to promote supported by local supported by a a stronger sense of advertisng global campaign community Source: The Global Brand, Millward Brown
    • 45. Achieving the right global/local balance• Local brands start with a home field advantage, but global brands can break status quo• Don’t think of localization just as a market entry or cost efficiency strategy• Need to understand most advantageous for long term brand building, relevance and image• Customer focus is key - listen, adapt and learn• Remember, all global brands started as local brands!