Mass Adapting From Instability as A New Norm Instability & fear was the norm during the onset of the recession as people dealt with fluxing emotions & trialled new coping behaviours as they navigated their changing landscape. “Realistically, [I hope to] make the best of the situation. This is our lot and we have to To ‘adapting’ Stable Behaviour work with it...” These adaptive coping mechanisms are becoming the status quo & second nature to consumers who are more focused on practical ways to make the most of their reprioritised lifestyles. Source: MCCPTrendstream™/ Discovery Process/ Consumer Dialogues/ Bord Bia 2011/2012
The Irish consumer is beginning to moving onOptimism 7 stages of recession grief... ADAPTING ACCEPTANCE & SHOCK & As we enter our 5th year of HOPE DENIAL recession, life becomes a little calmer & more organised, "depression" begins to lift slightly & we begin to look for functional, RECON- realistic solutions STRUCTION PAIN & GUILT UPWARD ANGER & ADJUSTING BARGAINING DEPRESSION & REFLECTIONPessimism Late 2007 2008 2009 2010 2011 2012 Source: MCCPTrendstream™/ Discovery Process
From alarm to adapting Long term savvy Happy with less shopper 70% of Irish people agree 67% of Irish people agree that; that; “Since the recession I “I would probably spend time have learned how many shopping around for good things I can do without and deals anyway whether or not still be happy.” my finances get better or worse” Home an established New money mentality entertainment arena 67% of Irish people agree 61% of Irish people agree that; “Ill never spend my that; “I would probably money again as freely as I did socialise with friends at home before the recession.” rather than going out anyway whether or not my finances get better or worse” Source: MCCPTrendstream™/ Bord Bia June 2011 & Jan 2012
Stability gets interrupted Drivers of peak & troughs: October 2011 Consumer Sentiment • Ireland gets as far as the quarter final in the Rugby World Cup. Ireland qualify for Euro 2012, country was in fever pitch. Enthralled in the Presidential leader debate (950,000 viewers for Frontline debate) • iPhone 4S launched, people queue all night. • School mid-term break, first term of school over with, the anticipated pressure is off. Fairly stable 6mths followed by December 2011 huge peak & troughs • Budget 2012 information was leaked fuelling fear. • Subsequent increase in DIRT & VAT meant people were hit when they saved or spent. • People also worried about increased financial Christmas stretch. • Cost of living rose 2.5% in the year 2011. January 2012 • New Year Optimism takes hold as people look to enact news year resolutions & health kicks. • 2011 was seen as a year of consolidating &Source: MCCPTrendstream™/ Discovery Process/ ESRI 2012 surviving, 2012 holds more hope for consumers as they begin to adapt.
Opportunities lie in bothpeak & troughs Consumer Sentiment 63.7 Savings Index 59.5 59.4 60.1 57.9 56.3 55.9 55.8 55.3 56.6 57 49.2Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 There appears to be some correlation between sentiment peaks & increased spend & sentiment troughs & reduced spend. Brands must be aware of people’s changing moods & subsequent spending patterns to find opportunities in both. Source: MCCPTrendstream™2012/ESRI 2012
So What? Controlled DiscretionarySpending is back on the agenda• Given that consumers are now entering an era of new found stability in how they are coping with the challenges the recession has brought them, there is an opportunity for categories/brands that had fallen off the consideration list to get back on it.• However, consumers still need to feel that they are managing their money efficiently and that they are ultimately in control.• Discretionary spending such as holidays or mini-breaks may have been suffering over last few years, but could now be back on consideration list as consumers become more confident about what they really have to spend, e.g. Irish Ferries currently promoting their lowest ever deposit of €100 to secure Summer bookings to France. Balance not required until 6 weeks prior to departure thereby tapping into consumers on-going need for control.• What does this mean for categories such as Cars; Jewellery; Clothing and Footwear etc.?
So What? Leverage opportunitiesboth positive & negative Create Positivity & More Relaxed Spending Create Promote positive trial sharing or experiences gifting Generate Highlight Focus on Justify their positive earned contribution spending mind-sets reward Create schemes Help them take that don’t hinder control here & savings or feel like Be the object now savings of their savings Abate Negativity & More Restricted Spending
How? Create positivity mind-setsto motivate spending Unilever, created the first ever smile- activated ice cream vending machine Transport them into a that rewarded the biggest grins with free ice-creams. People could uploaded positive mind-set their best beams to Facebook to share their happiness with friends. People in bars were invited to experience the Paulaner Pour, an authentic Weissbier ritual, creating a Create positive trial competition that awarded those who experiences perfected the pour with a limited edition Paulaner glass. For every pair of Toms Shoes sold, 1 pair is donated. This one for one model Focus on contribution adds a feel-good factor to consumer spending. not consumptionSource: MCCPTrendstream™/ WARC 2011/2012
How? Frame spending as a positive, guiltless act De Beers installed a display in Grand Central station spelling out ‘A Diamond is Forever’ in roses with a glowing diamond shaped full stop. The roses died over time but the Justify their spending diamond remained glowing representing it’s long lasting quality & justifying it’s price Hershey’s uncovered the insight that ‘Mums feel guilty buying chocolate for herself & not Reframe self spending sharing with her family ’. Communications leveraged this insight & alleviate Mums as sharing or gifting guilt by showing kids sharing with Mum. Dublin Does Fridays is an idea centred Frame discretionary around that time of the week when people are justified in switching off from ‘work spending as earned you, to just you’ & in celebrating an rewards earned, rewarding experience (i.e. the pub with friends). MCCP , TBWA, Modern Green & Cybercom collaborated to deliverSource: MCCPTrendstream™/ WARC 2011/2012 the idea for the LVA.
How? Give their savings a more positive focus Over 90,000 people have signed up to the ‘Bike to Work Scheme’. Many inbuilt saving mechanisms Create schemes that have driven it’s success; fuel/fare saving, health maintenance/improvement savings (i.e. no gym don’t hinder savings or fees) & tax savings. But it is the salary sacrifice feel like savings payment method (i.e. a small monthly payment made direct from people’s wages) which makes it feel like a real saving rather than a big expense. Discover boating – A boating awareness association knew people weren’t buying boats & giving up on Be the object of their the dream of ever doing so. Dreaming is the first savings step in the boating shopper journey so they need to keep the dream alive. They did so by giving people a way to experience boating in a virtual but realistic way via a social media game.. In recessionary times people enter ‘crisis mode’ & Help them take their focus is on short term planning. They want to take a sense of control NOW! The 02 money card & control here & now the new AIB app are tangible tools that help people feel empowered & in control.Source: MCCPTrendstream™/ WARC 2011/2012
While consumer behaviour is movingon, Irish values are regressing.
Backlash against big Trust in Trust in Trust in Media Business Government Global: 38% Global: 43% Global: 35% Ireland: 52% Ireland: 53% Ireland: 43% Ireland’s trust levels increased slightly in 2012 but we still have very low levels of trust in institutions. BIG = BAD
Distrust in Big Shift in trust from big institutions to smaller, independent sources is due to 2 things: Perceived BETRAYAL Inherent BEGRUDGERY [The Irish character is] “fatalistic and pessimistic to the core”, [they are are skilled at Post Recession Trust the] “peculiar art of self- Irish Trust deprecation”. Lonely Planet Guide 2012Source: MCCPTrendstream™/ Discovery Process
Balance big by acting humble Big Honest Kind Humble Considerate Good Listener Playful HelpfulSource: MCCPTrendstream™/ Discovery Process
So What?• Big brands associated with global/multinationals/power, need to make themselves more accessible and personable to Irish consumers in order to gain their trust.• Absolut Fringe Festival• Kelloggs Field of Dreams• Red Bull Flugtag• Coca-Cola Designated Driver
Trust is found in people with similarvalues and needs (twinsumers)* +23% ‘person like +23% yourself’ as ‘regular a credible employee’ source as a credible Online & offline we are source searching for our *twinsumers (i.e. independent like minded +12% ‘online peers with the same needs multiple &/or values as me) to provide sources’ as a +9% ‘social us with recommendations; trusted media’ as a reviews etc. trusted information information source sourceSource: MCCPTrendstream™/ Edelman 2011/2012
So what?• Help people find their ‘twinsumer’ within your category by making it easy for consumers to connect with like-minded consumers.
For More Contact us for more information on MCCPTrendstream™ bank of trends and the so what for your category, customer and brand. We would love to discuss the so whats & opportunities with you & your team Please contact: Susan Kelly: 086 7827178, firstname.lastname@example.org Kay McCarthy: 086 1722612, email@example.com www.mccp.ie Twitter: @MCCPIreland Slideshare.net/MCCPIreland