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    Landor’s 2011 trends forecast Landor’s 2011 trends forecast Document Transcript

    • Landor’s 2011 trends forecast
    • This PDF is designed to be printeddouble-sided to help you conserve paper.© 2010 Landor Associates.All rights reserved.Landor Associates is one of the world’sleading strategic brand consulting anddesign firms. Landor is part of WPP, one ofthe largest global communications servicescompanies. Visit us at landor.com.
    • Landor’s 2011trends forecastMarket trends and theirimpact on brandsOver the past year, we’ve seen our world grow In the all-inclusive spirit of social media, we asked Trevor Wade is director of digitalsmaller and more transparent. People are a broad spectrum of Landor’s experts to comment marketing for Landor Associates andfeeling empowered by social media: breaking on what they expect to see next year. Here, then, editor of Landor’s trends forecast.news on Twitter before it reaches major media are our predictions for 2011 on these timely topics:outlets, boldly critiquing products and experi-ences online, trusting word-of-mouth over • The search for purposetraditional marketing. Demonstrating sustain- • Designable practices has become the cost of entry for • Social mediabusinesses and is no longer a differentiator in • Shopping behaviorthe marketplace. And the good a company does • Packagingwithin and for its community is beginning to • Sustainabilityhave an impact on its bottom line. • Color direction • The petroleum industryIn spite of a sobered financial consciousness, people • The energy industryare ready to be surprised and delighted again — not • Marketing in the Middle Eastby the flashy or the fancy, but by authentic brand • Foodstories and personal connections. • The globalization of Asian brands • Interactive entertainmentAs public awareness of marketing, brands, and • Brand managementdesign continues to grow, those in the business ofselling have to work harder and smarter to earn themoney consumers are spending so carefully. Whatwill this mean for brands in 2011? Landor Associates 1
    • The search for purpose by Scott Osman Scott Osman is global director of What can we expect to see in 2011? have already aligned their corporate social responsi- corporate social responsibility in the New bility practices with their brand management and York office of Landor Associates. Scott’s Social purpose as a business value is here to stay, communications teams — a big shift in corporate article “Citizenship branding” is available and in 2011 we can expect even more companies structure — and we can expect more of this trend. on landor.com. to acknowledge its importance. Brands will work Once they learn each other’s languages, these to identify the ways they can help society. Success disparate departments will benefit greatly from in the marketplace will require that companies be sharing ideas and resources. This internal reorgani- sustainable, committed, and authentic. zation will create value for companies at the same time it supports their social contributions. Studies such as Goodpurpose, by Edelman, and Corporate Purpose Impact 2010 from Burson- Which brands will stand out? Marsteller indicate overwhelmingly that when making decisions about what to buy, consumers Brands that find a way to express their values and now look at how a company operates, where its merge social purpose with brand promise will stand products come from and how they are made, and out. Almost all companies on the Forbes Global 2000 how it treats its employees. These factors may list are currently making significant social contribu- not drive every purchase, but more and more they tions, although they may not be communicating are impacting the bottom line. This fundamental this to the public. Making these actions known shift in consumer behavior is unlikely to reverse. will be just as important as espousing the values behind them. What are the implications of these trends for brands? In low-engagement categories, social purpose Method has enjoyed great success with provides a golden opportunity to create passionate, a business model that strives to develop As more “good” goods enter the market, brands relevant differentiation. Look for purpose-driven products using safe, sustainable materials will have to clearly define their social purpose and breakout brands to emerge in the financial service, and responsible manufacturing practices. make it central to their business. Many companies airline, education, and energy categories. Companies such as Method have inspired employees and captured the imagination of consumers with its naturally derived, biodegradable household cleaners. Studies show that CEOs are eager for their compa- nies to have purpose and that employees want to work for good companies. Now it’s time for middle managers, those most responsible for implementa- tion, to climb aboard. The burning question for 2011 Will middle management recognize and act on the importance of social purpose? © method2 Landor’s 2011 trends forecast
    • Trends in designby Paul OwenWhat can we expect to see in 2011? of functional, light-interface designs that optimize Paul Owen is executive creative director content navigation will grow on all screen-based in the New York office of Landor Associates.Innovation, influence marketing, and customer platforms. Novelty plays, such as invisible logos, Paul’s work has been recognized interna-experience were the business buzzwords of 2010. user-generated logos, and logos as containers, tionally with design awards including theConsumers no longer believe the smoke and mirrors have probably had their day, too. D&AD Pencil, PromaxBDA (gold and silver),of traditional marketing. Their trust must be earned One Show (gold), and a special accredita-on a daily basis. Never before has business collabo- Which brands will stand out? tion from the Art Directors Club, New York.rated so openly with consumers. We’ve learned thatwe can’t be smart, creative, or innovative without The buzzwords of 2011? Share, design, delight.sharing. And the early days of the twenty-first century Next year, I guarantee, the big brand stories willhave provided an explosion of technological tools be developed around an ethical purpose throughto optimize collaboration. a design-led, collaborative process. Here are four stories I’m keeping my eye on:It’s clear that the rules of brand design are funda-mentally changing. Success no longer depends • Redesigned license laws for sharing. Anythingon consistency and adherence to strict brand produced under Creative Commons licenseguidelines, but on open, flexible, and innovative will be worth following. For more information:experience design that allows for nimble navigation creativecommons.orgacross changing marketplaces. There’s a newmantra for design: • Simple functional interface design leads, as proximity networking is set to go commercial ABOVE: New license laws from CreativeShare=design=delight in 2011. For example: foursquare.com Commons are changing the way designers work and share ideas.Sharing leads to ideas. Ideas facilitate design, and • Content is king. The shape of TV will radicallydesign transforms needs into demand. Design is the shift next year. Smaller personalized content BELOW: Location-based networking presentsprocess that realizes the potential in collaboration. aggregators are the ones to watch. For new opportunities for interface design.Design provides the divergent exploration of a shared example: devour.comthought and then the rigorous, convergent focus todeliver something useful or meaningful—and if it’s • Ethical design thinking and business leadershipspot on, something absolutely delightful. from “B corporations”—defined as socially responsible businesses that are required toWhat are the implications of these trends? consider the interests of societal stakeholders such as employees, communities, and theDesign is having a positive effect on business environment. For more information:processes. As more and more companies realize bcorporation.netthat their Six Sigma processes aren’t giving themsought-after results, they are turning to designthinking to uncover more meaningful solutions. Awareness of design among the general population is at an all-time high. We will see increased interactionCorporate responsibility will play a much larger role between designers and consumers in the coming year.as many market-leading brands realign their business Tropicana and the Gap are just the beginning. Smartstrategies to values over value. With this growing brands, knowing that design is a major means ofconscience comes the responsibility for design to connecting with audiences, will introduce newdeliver sustainable solutions that focus on the right elements as adroitly as possible.balance of ethics, form, and function. Poor design —Sean King, design director, corporatehas ended up in enough landfills. communicationsOnline design is dropping flash, splash, and animatedextras. With the rise of mobile connectivity, the power Landor Associates 3
    • Location-based services will move towardtailoring suggestions, information, and offersto a user’s current whereabouts for a highlypersonalized and rewarding digital experience.4 Landor’s 2011 trends forecast
    • Trends in social mediaby Alex DoWhat can we expect to see in 2011? What are the implications of these trends Alex Do is director of digital branding in the for brands? San Francisco office of Landor Associates.Curated content: In 2011, social network users His article about open-source branding iswill become more discriminating about the content Earn a place in the stream. Brands will have to available on landor.com.in their streams. Nonstop content and promotions earn their way into people’s streams with meaningfulfrom brands can be overwhelming and annoying; content and, better yet, rewards. If their contentusers are starting to hide brand updates, filter is truly compelling, it’ll get noticed and “liked,”friends, and prioritize content. generating comments and re-tweets. Smart brand managers will focus on the story line, engagingSocial commerce and group buying: Tapping customers in relevant dialogue and providingfriends for recommendations, posting deals on platforms for customer expression.a network, and following the picks of celebrities canmake shopping easier and more enjoyable. People Reimagine the storefront. Brands will need toare more willing to share purchase information if augment and extend their e-commerce offerings.there’s something it in for them, such as discounts, More brands and merchants will develop shoppingtrendsetter status, or the cool factor. apps inside existing social platforms. Delta Air Lines now lets travelers book flights from itsGroup buying through sites such as Groupon, Facebook fan page.LivingSocial, YouSwoop, and Scoutmob willcontinue to thrive in 2011. New players include Redesign the mobile experience. More and moreWow, The Knot, and Walmart’s CrowdSaver, set interaction will take place via mobile devices. Theto offer an 18 percent discount on plasma TVs mobile phone design interface needs to accommo-when the product gets more than 5,000 “likes.” date this shift. Mobile use of social media alters how people interact with platforms and the wayNiche markets: In 2010 location-based services that brands engage customers.including Foursquare, Gowalla, and FacebookPlaces picked up users and garnered a lot of mediaattention. But many users tired of checking in Social media provides an enormous opportunityto places without a payoff beyond earning badges to craft brand voice and add value by linking brandsor becoming “mayor.” In 2011 location-based to the right people at the right time, with messagesservices will move toward tailoring suggestions, they will want to share.information, and offers to a user’s current where- —Melissa Parsey, senior client manager,abouts for a highly personalized and rewarding New York officedigital experience. Expect group-buying sites such asXtify’s geo-location technology will allow brands Groupon (featured above) to becometo target their users with messages and calls to more popular.action specific to where they are and where they’vebeen. Shopkick describes itself as the first mobileapp to reward consumers simply for walking intoa store and scanning product bar codes with theirphones. Best Buy, American Eagle Outfitters,Sports Authority, and Facebook have alreadyadopted Shopkick. Other platforms such asFoodspotting appeal to the foodie niche. Landor Associates 5
    • Trends in shopping behavior by John Matthews John Matthews is director of strategy We all hope that the global recovery will gain Real value: The retail sector rocked most by the in the Sydney office of Landor Associates. strength in 2011. Here in Australia, online sales figures recession was that broad blur of “masstige” and His current article, “One playful idea,” show that strong economies are looking to weaker “new luxury.” Suddenly, paying premium prices for is available on landor.com. ones (in our case, to America) as a fertile source of average products with flashy logos made consumers bargains. Consumers learned their lesson from the look dumb rather than rich. In 2011 shoppers financial crisis and will proceed with caution. Their will search for ruggedness, longevity, reliability, behavior is likely to remain volatile, fluctuating and real ingredients. Using old-fashioned materials between bursts of optimism and pessimism. in apparel represents value and emotional security in a very tangible way, as seen in Nike’s Harris Green versus lean: Sustainable consumption Tweed sneakers. was already growing prior to the economic crisis. But in 2011 we’ll see a slight shift as consumers buy Real stories: At the same time that shoppers fewer new products, opting instead for refills and found their security shaken and their disposable recycling. Rather than paying a premium for green, income decimated, they were also bombarded with shoppers will demand that all brands become novelty. The movement of brands into digital and more ecofriendly. social media generated odd, attention-seeking strategies that seemed to have little or no link to Real places: Country-of-origin brands are likely what products actually did, such as the Vegemite to become a greater force in retail. Origins will variant rechristened iSnack 2.0. (Don’t expect Consumers will seek out ruggedness, be a big part of food retailing; traceability down to find it on shelves today!) Brands must first look longevity, and old-fashioned materials, such the length of the supply chain will give brands at the functionality that differentiates them, then as those found in Nike’s Air Royal Harris an opportunity to differentiate. Wherever they express their essence through authentic stories Tweed sneakers. can, brands will connect us to the source. and ideas that ring true with customers. The burning question for 2011: Will shoppers return to their old ways, or will the hangover of recession create long-term changes in buying behavior? Expect to see brands trying disruption tactics to combat “autopilot shopping,” especially for low-involvement fast-moving consumer goods. —Fiona Atzler, client director, New York office More consumers will shift away from traditional retail toward digital retailing. —Robin Thompson, brand strategist, New York office Although private label brands are gaining popularity in the U.S., they have not approached the level of acceptance seen in Europe. In 2011, U.S. retailers will continue to borrow private label strategies from progressive retailers from across the pond such as Tesco and Marks & Spencer. —Samar Birwadker, senior insights manager, San Francisco office6 Landor’s 2011 trends forecast
    • Trends in packagingby Wendy Hunt and Anne ReidIn 2011, expect packaging to become more sustain- in areas affected by disaster. In New Orleans Wendy Hunt is client director in the Cincinnatiable, incorporate recent technological advances, following Hurricane Katrina, the Procter & Gamble- office of Landor Associates, working withand feed into consumers’ desire for their purchases sponsored initiative washed almost 14,000 loads of multiple Procter & Gamble brands.to serve a greater purpose. laundry for 11,000 families. Anne Reid is senior director of designBells and whistles: Modern consumers are The burning question for 2011 realization in the Cincinnati office of Landorshopping experts who spend mere seconds making Associates. She has a particular interestpurchase decisions. Especially in supermarkets, The challenge will be finding ways to do more in sustainable packaging.packaging must work hard to tempt shoppers into with less — reducing waste, using fewer naturaltrying new products. Revolutionary technologies resources, and cutting down transport distance— With contributions bysuch as thin film and printed batteries can have while using packaging to communicate brand Anna Singh, client manager, Cincinnati officea phenomenal impact at the first moment of truth, promise and the actions that back it up.adding light, sound, and movement to packaging.Sound chips can deliver promotional messagesfrom store shelves; paper-thin video screens candemonstrate product use. The first brands to adopt The Tide Loads of Hope program givesthese cutting-edge strategies are sure to make back to the community in an on-brand waya splash in the crowded marketplace. by providing laundry services to families affected by disaster.Reusable: After noticing the product (first momentof truth) and reading the product label (second),there is now a third moment of truth for consumers:reusing packaging. More brands will make thispossible, banking on the cool factor to extend brandmessage beyond the life of the product. Burt’s Bees,whose natural body care line already appeals toenvironmentally conscious customers, now providesreusable carrying cases for its lip balm.Sustainable: More companies will pledge to lessentheir impact on the environment and look forinnovative ways to do so. Paper Mate recentlyintroduced biodegradable pens with compostableouter shells that break down into organic matterwithin a year. Following a more traditional route,Kraft Foods plans to reduce its carbon footprintin 2011 by decreasing waste from its plants, elimin-ating 150 million pounds of packaging material,and cutting CO2 emissions by 25 percent.Purposeful: To remain relevant in 2011, brandsmust stand for something and align their brandpromise with the good they do — and conveyboth through their packaging. The Tide Loadsof Hope program and its corresponding limited-edition detergent give back to the communityin an on-brand way: by providing laundry facilities Landor Associates 7
    • More and more consumers look at facts and figures about product ingredients and environmental impact before they buy.8 Landor’s 2011 trends forecast
    • Trends in sustainabilityby Russ MeyerWhat can we expect to see in 2011? green brands are niche players such as Tom’s of Russ Meyer is chief strategy officer Maine and Seventh Generation. Landor’s annual of Landor Associates. His article “FiveAs we continue to emerge from the worst economic ImagePower® Green Brands Survey shows that reasons not to have a green brand (andconditions since the Great Depression, consumers consumers think of corporate brands such as why those reasons are wrong)” is availablewill remain shell-shocked. Perhaps the greatest Procter & Gamble, Unilever, Walmart, and General on landor.com.advance in sustainability over the last three years Electric as more sustainable than their producthas been the global decline in consumption. When brands. The challenge for corporate brands is to findconsumers do buy, they are more thoughtful, ways of extending this green halo onto their productconsidering not just where and how products are and service brands.created, but whether they really need them at all.I believe this is the beginning of a long-term shift Electric cars are poised for plenty of press attentionin purchase behavior, moving from wanton, in 2011, a significant year for the car market, whenwilly-nilly buying sprees into a more considered three electric cars will all be available in the Unitedapproach to consumption. States: Chevy Volt, Nissan Leaf, and Tesla.What is the implication of this for brands? The burning question for 2011Brands have two challenges. The first is to convince How can we achieve a balance between reducingconsumers that their product or service will make consumption of resources and encouraginga noticeable difference in consumers’ lives and consumers to purchase sustainable products?that they are worthy of being purchased. Theymust make their functional benefits overt andapparent. Consumers will no longer be willing totry out sustainable products just for their green-ness — brands must differentiate themselvesin other ways, too. In these days of cautiousconsumerism, products have to prove superiorfunctionality or risk remaining on the shelf.The second challenge for sustainable brands isto be specific about their green claims. Gone arethe days of fuzzy, friendly labels like “natural.”Since 2005, we’ve seen a major increase inconsumers’ understanding of sustainability. Smartconsumers now look for facts and figures detailingwhich chemicals their cleaning products contain,how much energy is used to create and transporta piece of furniture, and the true carbon footprintof a pair of sneakers. If brands can’t provide thishard data, consumers will turn to sources like theGoodGuide and other champions of transparencyto learn the truth.Which brands will stand out?Despite the ongoing interest in sustainability,few mainstream consumer brands have smoothlyincorporated this attribute into their brand promiseand image. Clorox Green Works aside, the best-known Landor Associates 9
    • Trends in color direction by Jack Bredenfoerder Jack Bredenfoerder is design director in Color trends are fleeting and ephemeral; color Finally, purples will move away from recent the Cincinnati office of Landor Associates. connections, told through compelling design stories mauve hues and come alive with the influence He is internationally recognized as a color that speak to the consumer’s heart, mind, and soul, of fire. They are like the colors seen deep under authority and served as president of the are the future of color direction. smoldering coals — a bright glimpse at the joy Color Marketing Group in 2007 and 2008. of the future. Fire will also pull navy into a deep, What can we expect to see in 2011? royal blue purple. The color design story for 2011 is an inspiring tale The coming year will challenge brands to set of fire and passion. The world is in a period of themselves on fire with passion. The brands that accelerated change — a fire building across our come alive with honest, intense warmth and globe as we move in a new direction with renewed understanding will succeed in attracting customers energy. Fiery red passion is surfacing as the main to their tribal fire. concept that will fuel the colors and design ideas of 2011. In India, fire is seen as a cleanser and purifier; it prepares the world for new beginnings. Fire clears away the clutter and brings the possibility of a phoenix to rise from its ashes. A single flame is a symbol of hope; a bonfire is a community celebration of commitment to achieving new goals. Fire-inspired reds, oranges, and ambers are the fireworks of 2011. These hot divas will burst forth with the power, energy, and passion necessary to bring fresh excitement. Lighter golden browns represent the natural comforting luxuries enjoyed by the fire. Think of cashmere, almonds, fine scotch, and aged tobacco. The long-term global blue cycle will continue to develop. Bright, clean blues still symbolize hope for a unified planet. But in 2011, the blues will be more aquatic; their watery presence will balance the fire colors. Greens will be layered and reminiscent of the forest floor after firewood is collected. In this spectrum of soft hues we find natural, new beginnings. Charcoal, smoke, and ash will inspire soft whispers of color. Graphite black will celebrate the new Nobel Prize-winning compound graphene, a super-strong but light carbon that is expected to change the future of humankind.10 Landor’s 2011 trends forecast
    • Landor color directionPassionate fireFire Comforting luxuries Fire PANTONE® C Red hot PANTONE C Spark PANTONE C Burn baby burn PANTONE C Candlelight PANTONE C Glow PANTONE C © Landor Associates Warmth PANTONE C Kiss PANTONE C © Getty Images Cuddle PANTONE CWater planet Forest floor Wine cork PANTONE C Camel hair PANTONE C Tobacco PANTONE C Scotch PANTONE C Smoked almond PANTONE C Reflection PANTONE C Mist PANTONE C H OMG! PANTONE C Oceanic PANTONE C Blue planet PANTONE C Deepwater PANTONE C Blue lichen PANTONE C © Getty Images Lamb ears PANTONE C © Landor Associates New leaf PANTONE C Sprout PANTONE CSmoke and ash Glowing embers Moss PANTONE C Frog PANTONE C White ash PANTONE Warm Gray C Wisp PANTONE C Fire brick PANTONE C Smoke cloud PANTONE C Organic ash PANTONE C Graphene PANTONE C Charcoal PANTONE C Burnout PANTONE C Warm thoughts PANTONE C Passion PANTONE C © Getty Images Ember PANTONE C © Landor Associates Imagination PANTONE CColors by Jack Bredenfoerder Forecast color information provided by Landor. PANTONE® Colors displayed may not© Landor Associates match PANTONE-identified standards. Consult current PANTONE Color Publications for accurate color. Pantone trademarks and copyrights are the property of, and are used with the written permission of, Pantone LLC. Portions © Pantone LLC, 2010. All rights reserved. Landor Associates 11
    • Trends in the petroleum industry by Andrew Welch Andrew Welch is executive director in the The Macondo well disaster in the Gulf of Mexico such as governmental affiliations, operating licenses, London office of Landor Associates. His has been well documented, as has the public corporate culture, transparency, and communication. recent article on transforming the customer outcry in its wake. What remains to be seen is experience is available on landor.com. the impact it will have on oil company operations Safety first, second, and third: Operational in the future. integrity and safety, always central issues for petroleum companies, will become the primary Rising costs, risks . . . and rewards: Access to oil factors in all commercial, operational, and strategic reserves remains difficult and treacherous, whether decisions. In the future, a petroleum company’s they’re deep under the ocean bed or in the equally success may be determined less by the conventional inaccessible terrains of Russia and the Middle East. metrics of profit, market share, and capital invest- There’s been talk of requiring oil companies to ment than by the nontraditional ones of employee set up prefunded contingency plans to deal with behavior and corporate responsibility. potential disasters. Even so, there will still be big money to be made in Big Oil. Emerging economies Reassessing the value of values: Big Oil company have an insatiable appetite for oil; China’s use culture, often the amalgam of disparate acquisitions alone is up 20 percent this year. and inherited operating principles, will find that lip service to brand values is no longer adequate. Eye of the storm: Petroleum companies will A clear, uncompromising set of standards for action also face unrelenting public scrutiny and renewed and accountability will be required both of oil Heavy machinery removes oil-contaminated hostility. The debate over Big Oil and the environ- companies and of the local partners that operate sands following the Macondo disaster. ment will be joined by other controversial issues on their behalf. Unified but not uniform: Centralized, monolithic operations may give way to a more agile and locally relevant approach, unified by a common purpose. As many natural energy resources are found in challenging environments, international oil compa- nies will succeed only by building high-quality, durable relationships with local governments and business partners. This will be especially true in emerging economies where officials are unlikely to cede control to oil companies’ American or European headquarters. Small is beautiful: Going forward, combining local sensitivity and flexible management with global know-how and capital will be the preferred operating model for oil companies. Perhaps in 2011 Big Oil will begin to think, act, and function more like Smaller Oil.12 Landor’s 2011 trends forecast
    • Trends in the energy industryby Ian WoodThe consumer energy business is facing a rare even more challenging, they will be competing Ian Wood is executive director in thechallenge — and opportunity. In order to reduce against some of the most powerful, stretchable London office of Landor Associates. Hiscarbon output, a number of governments across brands in the world. article “Don’t chicken out of innovation”the globe are mandating the placement of smart is available on landor.com.meters in all households. In the United Kingdom The winner, however, becomes the gatekeeper toalone, that amounts to about 20 million homes. all energy devices in consumers’ homes, and the prize is massive: constant, free brand communica-Smart meters, like the non-smart variety, measure tion and reinforcement.energy usage. But they are also capable of communi-cating with an energy supplier and with other The burning question for 2011household devices. The information is delivered inreal time and can be analyzed in a multitude of ways Will energy companies be so consumed with thethat have been impossible until now: usage by day, massive undertaking of installing millions of smartseason, time, or appliance, making it easier to meters that they miss the opportunity to communi-diagnose problems within a house and much more. cate with residents?The smart meter, with its ability to manage energyremotely, brings us one step closer to making thedigital home a reality. Google and PayPal globally,and Sky, O2, and Tesco in the United Kingdom,envision a residence with a single device or systemthat controls heating, lighting, programming,security, diagnosis, and entertainment. These brandsare competing to own the heart of this new home. O2 is making a bid to own the heart of the home with its O2 Joggler—you canTherein lies the threat and opportunity for energy watch videos, check the weather, textcompanies: Smart meters have displays that sit on friends, and more.kitchen countertops or in living rooms. They are themeans by which people will monitor and eventuallycontrol the heating and lighting in their homes. Asa marketer, wouldn’t you love to have access toa wireless, Internet-enabled, updatable touch screento communicate with your customers — and, betteryet, have it paid for by the government?Right now, energy brands enjoy little equity orloyalty from consumers. They are best liked whenthey aren’t attracting attention. If they want to playa larger role in the development of the digital home,they will have to put significant effort into areasfamiliar to marketers: relationship building, innova-tion, customer service, delight and surprise, andvalue adding. Not only is this new territory for mostenergy brands to navigate, it will be desperatelydifficult for them to succeed in wooing customers,given the low base they start from. To make matters Landor Associates 13
    • Marketing trends in the Middle East by Aneesh Sharma Aneesh Sharma is brand strategist in Although growth may not be as rapid and unbridled to thrive. Telecom companies Du in the UAE and the Dubai office of Landor Associates. as in past years, the Middle East, with its half the Kuwait-based Zain, as well as Aramex (the He writes about brands and marketing a billion consumers, is still a thriving market. Great Jordanian version of FedEx), are giving global in the Middle East for Landor’s blog. opportunities lie not only in Saudi Arabia but also players a run for their money causing them to in Syria, Iraq, and North Africa, especially Libya reexamine their regional strategies. and Algeria. What are the implications of these trends What can we expect to see in 2011? for brands? Woman power: Women exercise considerable Expect more brands to directly address women’s economic clout in the Arab world, both as members issues and cater to their needs, particularly in the of the workforce and as business owners in their health and fitness, financial service, and retail own right. It is estimated that women control more industries. Mainstream brands will either spin than 40 percent of the private wealth in Saudi off women’s divisions or develop completely new Arabia, the region’s largest economy. Expect to brands managed by and for Middle Eastern women. see women-owned businesses grow in size and expand their reach across the Middle East. Local brands will continue to grow in 2011 and move into nearby markets that Western brands Regional pride: Regional brands that couple consider too risky politically. The Dubai supermarket Aswaaq offers cultural relevance with global brand stature, high a sophisticated and extensive variety quality, and unique product attributes will continue Which brands will stand out? of products but has the feel of a local corner store. Global brands that have successfully localized and local brands that exude global confidence will stand out in the year to come. France 24: This relatively new kid on the media block is growing by leaps and bounds in the Middle East, mainly because of its push to regionalize content both linguistically and editorially. Homegrown news sources Al Arabiya and Al Jazeera will have to watch out. Air Arabia: The UAE-based budget carrier now operates three hubs, in Sharjah, Alexandria, and Casablanca, which connect regional cities to each other and to destinations in Europe, North Africa, Central Asia, and the Indian subcontinent. The burning question for 2011 How will global brands prove their credentials to Middle Eastern consumers — with new products, brands, and tactics? Or simply by acquiring regional companies?14 Landor’s 2011 trends forecast
    • Trends in foodby Kristin JamesWhat can we expect to see in 2011? The burning question for 2011 Kristin James is senior marketing manager in the New York office of Landor Associates.The value shift currently under way will mean major How will quick-service restaurants adapt to She is a graduate of the Institute of Culinarygrowth in the farm-to-table movement — especially patrons who are concerned about where and Education’s Pastry and Baking Arts program.in the United States where consumers have long how food is sourced and its impact on thefelt unconnected to the source of their food. In immediate community?the wake of the financial crisis, people want simple,authentic experiences, and they want to under-stand how their choices impact their immediate We will see increased transparency about foodcommunities. It is very satisfying to buy locally ingredients in the coming year. New York has bannedand feel that you know the person who grew your trans fats in restaurant food and requires chainlettuce or raised your beef. restaurants to list calorie counts. Smart food brands will make this information available everywhere, notFood has always been about family and community; just where it’s mandated by law.this is even more true today. Look for a surge in —Sean King, design director, corporatecommunity and urban gardening and for retailers communicationspushing locally grown products.What are the implications of these trendsfor brands? Walmart’s direct farm program in China isBrands will have to build in emotional meaning giving millions of people access to quality,beyond convenience or trend-driven claims. “Value” locally grown food.no longer means price point, but refers to howproducts benefit customers and improve their lives.Not everyone has access to a good farmers’ marketor garden, but the underlying drivers for authenticityand connection are something big brands can takeon. Walmart is doubling, and in some cases tripling,the amount of locally sourced food it sells, and willbe stricter about how that food is grown. GivenWalmart’s size, ubiquity, and pricing, that meansmany more people will have access to quality,locally grown food.Which brands will stand out?Brands that connect and feel human will getnoticed. Marketers should understand that peopleare still very intimidated by food and cooking, inspite of (or maybe because of) the unprecedentedamount of information available. The food industrycould learn from new world winemakers, whohave taken a very intellectual industry and founda way to connect with customers through down-to-earth brand stories. Landor Associates 15
    • The globalization of Asian brands by Monica Au and Lulu Raghavan Monica Au is client managing director in Monica Au on China Meanwhile, many international brands are trying the Hong Kong office of Landor Associates. to adapt to local Chinese markets. As local brands She writes regularly about consumer What can we expect to see in 2011? become more prominent, international brands’ insights and branding in China. competitive edge — and with it, their justification Consumers around the world will lower their for demanding premium prices — will further erode. Lulu Raghavan is country director in the resistance to Chinese brands. Buying less Mumbai office of Landor Associates. She expensive products is a smart choice these days, On the road: Looking beyond Japan and Korea, has written many articles including a regular and the worldwide economic downturn will allow the world will turn to China to provide the next column for Hotel Management Asia. Chinese brands that offer reasonable quality at great value-added cars. At the 2009 motor show reasonable prices to expand into global markets. in Shanghai, 20 local brands launched alternative With contributions by energy cars that drew considerable attention; Melissa Parsey, senior client manager, China will also have plenty of opportunity to the government sees this as a major source of New York office learn from the world’s best business practices, investment for the future. Great Wall Motors is as international firms continue to bring branding already selling in Australia, Chery is running knowledge, R&D capabilities, technologies, and on the road in Central and South America, and global management models with them into “the Geely made headlines when it purchased Ford’s Middle Kingdom.” China’s vast domestic market Swedish Volvo unit. will become more sophisticated, providing a training ground for local brands to experiment The burning question for 2011 and excel in their fields before going global. How will Chinese brands manage the transition Made in China: Local brands adopting the look to global markets? and feel of international giants have had consider- able success in China, giving them more money to invest in branding. They also move at lightning speed, quick to pick up where global competitors fall short. Brands such as Nike 360 command such status that it was little surprise to see local sports brand 361 Degrees enter the market. Mimicking Nike’s success, 361 Degrees rocketed from a small-scale local operation to one of the largest sports brands in the market over the past eight years. Tsingtao beer is one of the first globally recognized Chinese brands.16 Landor’s 2011 trends forecast
    • Lulu Raghavan on India The “frugal” or “reverse” style of innovation pioneered Tata’s innovative Nano car will change in India reduces product price to its lowest possible the way thousands of middle-classWhat can we expect to see in 2011? level, presenting a real threat to Western companies families in India get around. with much higher costs. Especially in countriesMergers and acquisitions: Indian companies where per capita income averages far below thathave found that purchasing established interna- of the United States, this puts goods within reachtional brands puts them on the fast track to global of many more local and global consumers.expansion. Tata’s acquisition of Jaguar Land Rover,Wipro Consumer Care’s purchase of Yardley’s Asian Tata’s Swach water purifier won the global ICISassets, and Megha Mittal’s takeover of Escada are award in 2010 for most innovative product. Tataall recent examples of successful buyouts. As India Nano, “the people’s car,” will change mobilityInc.’s pride and confidence in its performance patterns for thousands of middle-class familiesincrease, expect to see more such acquisitions. in the region and beyond, and D.light’s innovative products provide high-quality, reliable electricityHomegrown appeal: Global interest in Indian solutions for the home.design, craftsmanship, cuisine, and holistic lifestyleswill give homegrown brands a boost. Brands already The burning question for 2011established locally, such as Hidesign (leatheraccessories), Sula (wine), Ganjam (high-end jewelry), Do Indian companies have the global managementand Shahnaz Husain (ayurvedic beauty care), will expertise to make their brands profitable infocus on getting a foothold in European markets overseas markets?to spearhead international growth.Purposeful innovation: The Boston ConsultingGroup’s Innovation 2010 study suggests that matureeconomies’ once unquestioned dominance ininnovation is fading and India, China, and Brazilare poised to take over. The number of Indiancompanies seen as top innovators is rising whilethe number of American companies is declining.What’s more, Indian brands are additionally showingthe world how social and corporate responsibilitycan be deeply embedded in a business approach. Landor Associates 17
    • Trends in interactive entertainment by Frank Vial Frank Vial is strategy director in the Interactive entertainment looks very different today Digital delivery: Game companies will shift San Francisco office of Landor Associates. than it did 10 years ago due to the spiraling cost their delivery from one-time retail transactions Frank writes regularly for Landor’s blog of producing games. The industry has gone through to ongoing digital relationships. Alternative business and his article “A second honeymoon: a period of contraction, with a small number of models — such as offering games for Rekindling the romance with the Chinese publishers — Electronic Arts, Activision, and free, but selling upgrades, extras, and virtual consumer” is available on landor.com. Ubisoft — bringing development houses on board. goods — will attract new gamers and generate volume-based revenue. With contributions by By minimizing risk and maximizing shareholder Chris Pike, knowledge sharing applications value, these companies have also effectively stifled Virtual possibilities: Expect gaming to become developer; Sean King, design director of creativity among blockbuster titles. They expect an immersive, full-sensory experience, moving corporate communications; and Aaron to lose money (or earn very little) on the majority from narrow, linear story lines to expansive universes Burghard, designer of their releases, but make up for it through huge with infinite possibilities. Platforms will margins on sequels to their most popular games. be made increasingly open source to allow fans to If a niche title is an unexpected hit, publishers are develop richer gaming worlds. Gesture recognition, quick to turn it into a series. force feedback technology, and augmented reality games will go mainstream. What can we expect to see in 2011? Mainstream audience: The definition of “gamer” The new Xbox Kinect bypasses a controller Always on: Gaming will become an always-on, will broaden to include both genders and all ages. and uses motion-sensing technology to always-connected community. Expect Facebook Nintendo’s Wii, which encourages active play and make games more active and appealing to build its gaming capabilities, while gaming interactivity, opened the door to the family living to the whole family. companies create their own social networks. room; its handheld DS is marketed primarily as a teaching toy and boasts a line of tutoring games for kids. And the Xbox Kinect doesn’t require a controller at all, using motion-sensing technology to make games even more active and appeal to a broader range of interests than ever. Which brands will stand out? Category leader Electronic Arts will continue to push interactive entertainment in sports, fitness, education, and social gaming. Disney will use its acquisition of Playdom to push Disney, ESPN, and potentially Touchstone content into social gaming. Startup Zynga will continue to expand its portfolio. Leading consumer brands such as PepsiCo, and perhaps even business-to-business brands like IBM, will explore interactive edutainment as a way to connect with customers. The burning question for 2011 How can gaming companies remain profitable while expanding their audiences and shifting to a direct-to-consumer business model?18 Landor’s 2011 trends forecast
    • Trends in brand managementby Felix StöckleDemocratic branding: The rise of social media I hope brand managers realize that they are in Felix Stöckle is managing director in thehas catapulted marketing into an era of total charge of the customer experience, rather than Hamburg office of Landor Associates. Histransparency as Facebook, Twitter, YouTube, and relying on agencies to communicate their positioning. current article, “How social media isconsumer blogs have made it possible for ordinary They must find new ways to measure the efficacy of changing the way brands are managed,”consumers to communicate with millions of people their brand’s experience and to embed great power is available on landor.com.they have never met. Before the digital era, brand apps in all functions, from product innovation toowners relied on paid advertising to control and customer service.spread their message. Today, digital word of mouth — Frank Vial, strategy director, San Francisco officeallows uncontrolled brand communications to goout to a massive global audience. We can expect to see more playfulness, consumer creativity, and partner co-programming in brandSocial media conversations focus predominantly management going forward, as well as more systemon brand delivery. People use these outlets to innovation. The brands that will stand out in 2011 willcommunicate and evaluate their personal experi- be those that inspire and lead us, not just compete.ences — and especially to share stories about — Fiona Atzler, client director, New York officehow brands are delivering against their promise.The bigger the gap between promise and delivery,the louder their voices will be; and often, themore sarcastic and cynical in tone. Ultimately,the customer’s brand experience is what influencespeer impressions.As a result, marketers will need to move awayfrom brand promise statements and toward brandexperience management, with more attentiongiven to how the intended experience is delivered,monitored, and measured. This trend will continuein 2011, especially as constant communicationthrough mobile devices becomes the norm. Expectbranding to become more democratized andincreasingly open source.The open paradigm: A brand manager is now Customer buy-in Employee actiona facilitator who engages with a community of drives business i transforms businessconsumers to solicit their input. Successful brandmanagers will provide consumers with tools thatencourage feedback, invite collaboration, and offerpossibilities for brand personalization. And they’llpay attention to what customers are telling them.The brands that adapt best to this open paradigm — being authentic in the delivery and cocreation ofexperiences — will win in the coming year. Thosethat don’t will lose first relevance, then credibility,and eventually sales and market share. Landor Associates 19
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