NAVIGATING THE1 NEW NORMAL 10 TRENDS FOR 2012 June 2012 Update LIVE A2 LITTLE GENERATION THE RISE OF FOOD AS THE MARRIAGE3 GO 4 SHARED VALUE 5 NEW ECO-ISSUE 6 OPTIONAL REENGINEERING SCREENED CELEBRATING OBJECTIFYING7 RANDOMNESS 8 INTERACTIONS 9 AGING 10 OBJECTS
WHAT WE’LL COVERBackground and MethodologyOur 10 Trends for 20121. Navigating the New Normal2. Live a Little3. Generation Go4. The Rise of Shared Value5. Food as the New Eco-Issue6. Marriage Optional7. Reengineering Randomness8. Screened Interactions9. Celebrating Aging10. Objectifying ObjectsIn ConclusionAppendix: Additional Charts
BACKGROUND AND METHODOLOGYOUR SEVENTH ANNUAL FORECAST3 our seventh annual year-endGO technology and the near future,In GENERATION forecast of trends forcontinued economic uncertainty, new the idea of sharedresponsibility are at the center of or driving many of our trends. Trends don’t happen in isolation. They tend to intersect and work intandem with each other. And many are extensions or outgrowths of trendswe formerly spotted; after all, trends with real significance can’t beassigned to just one calendar year.The trends explored here, which we believe have significant weight andmomentum, indicate shifts that are likely to be with us for a while.
BACKGROUND AND METHODOLOGYMETHODOLOGY3 GENERATION GO
BACKGROUND AND METHODOLOGYMETHODOLOGY: SONAR™3 the U.K.for thisSONAR™,we GOand GENERATIONJWT’s proprietary online tool. We in the U.S.Specifically using report, conducted quantitative surveys surveyed1,055 adults aged 18-plus (531 Americans and 524 Britons) from Oct. 31-Nov. 8; data are weighted by age, gender and income. (For our trend onThe Rise of Shared Value, we used data from a survey we conducted in theU.S., the U.K. and Canada from June 28-July 6, 2011, in which we polled908 adults.)
BACKGROUND AND METHODOLOGYMETHODOLOGY: A global perspective from JWT PlannersWe also received input from nearly 70 JWT planners across more than two3 GENERATION GOdozen markets—making for a truly worldmade product. Ramon Ainhoa Jimenez Moreno Madrid Jed Brooke Madrid Churcher Curtis Adrian Toronto London Barrow New York Shaziya Khan Mumbai Jordan Vannya Price Martinez Tokyo Mexico City Hajime kato Antonio Tokyo Abello Bogotá Carol Ma Shanghai Lydia Daly Andrew Singapore McCowan Tania Virkel Buenos Aires Ishita Mehar Sydney Harsha Prag Mumbai Johannesburg Ana Hernandes São Paulo
BACKGROUND AND METHODOLOGYMETHODOLOGY: Influencers and experts3 GENERATION GO and academia. includingAnd we interviewed experts and influencers across sectorstechnology, luxury, social responsibility
BACKGROUND AND METHODOLOGYMETHODOLOGY: Influencers and experts (cont’d.)3 GENERATION GO and academia. includingAnd we interviewed experts and influencers across sectorstechnology, luxury, social responsibility
BACKGROUND AND METHODOLOGYWHY WE DO WHAT WE DOWe GENERATION GO3 believe that trends, like anyare spotted, they can be shaped. complex and dynamic human phenomena,are not preordained—once theyWe believe that foreseeing trends allows our clients to stay ahead of theircompetitors, meeting emerging consumer needs and wants before anyoneelse does.We aim to bring the outside in—to help inspire ideas beyond brand,category and consumer conventions—and to identify emergingopportunities so they can be leveraged for business gain.
3 GEERATION GO NEW NORMAL1 NAVIGATING THEAs the new normal becomes a prolonged normal in the hampered developedworld, more brands in more categories will open up entry points forextremely cost-sensitive consumers. Marketers will find new opportunities increating stripped-down offerings, smaller sizes and otherwise more accessibleproducts and services.
1 NAVIGATING THE NEW NORMALDRIVERS3 GENERATIONAusterity for most GO It’s a complete change of lifestyle also for the [Italian] middle classes who are getting used to an inexorable slide“New normal” behaviors towards poverty. People take turns to host dinner parties instead of going to restaurants. They swap houses instead of going on holiday.”Rising costsNon-Commitment Culture —MARIA LAURA RODOTÀ, social commentator for the newspaper Corriere della Sera, The Guardian, Nov. 13, 2011
1 NAVIGATING THE NEW NORMALDRIVERS (cont’d.)Austerity for most“New normal” behaviorsRising CostsNon-Commitment Culture Non-Commitment Culture (one of our 10 Trends for 2011)
1 NAVIGATING THE NEW NORMALMANIFESTATIONS: Stripped-down products/services3 GENERATION GO Value is going to be the watch word going forward. It’s happening in all industries, and when the cycle changes and the economy gets better, people will still be looking for value.” —Hotelier IAN SCHRAGER, on his new value hotel brand, Public, The Wall Street Journal, Nov. 14, 2011 An offshoot of Coventry University in the U.K. will offer reduced fees—about half the price of traditional universities—for professional courses while stripping out the traditional extras (no sports or library facilities, for example).
1 NAVIGATING THE NEW NORMALMANIFESTATIONS: Stripped-down products/services (cont’d.) Equinox gyms opened Blink Fitness at the beginning of 2011, which currently has six outlets in New York City and some surrounding suburbs: The pleasant, polished fitness centers cost just $20 a month (more than $100 less than Equinox gyms in the area), offering the basics and nothing more. In the U.K., the budget gym is the fastest-growing corner of the fitness industry. The Gym Group chain, for example, does away with what its chief executive calls “unnecessary extras,” including aerobics studios and fluffy towels, in order to offer a no-contract membership for less than half the monthly fee of rival gyms.
1 NAVIGATING THE NEW NORMALMANIFESTATIONS: “Sachet budgeting” SKUs3 GENERATION GO Value to that [struggling] consumer is a price point. It doesn’t matter what the cost per ounce is. It matters, ‘Can I afford to buy even a small portion of that this week?’ And (that means) having small sizes, convenient sizes, convenient channels, convenience stores, pharmacies, dollar stores for quick small trips that are close to home, as opposed to going out for the big loads at the supercenters. So there is very different behavior that is occurring.” —MEG NOLLEN, SVP of investor relations and global program management officer, H.J. Heinz Co., August analyst call
1 NAVIGATING THE NEW NORMALMANIFESTATIONS: New, cheaper products/lines3 GENERATION GO
1 NAVIGATING THE NEW NORMALMANIFESTATIONS: New, cheaper products/lines (cont’d.)3 GENERATION GO
1 NAVIGATING THE NEW NORMALMANIFESTATIONS: More flexible subscription plans3 GENERATION GO Considerations of pricing power in telecom and media industries have traditionally been about competition, not affordability. But simple affordability may emerge as a critical factor. Real income growth in the United States has been negative during the last five years” —CRAIG MOFFETT, analyst, Bernstein Research report
1 AVIGATING THE NEW NORMAL NAVIGATING THE NEW NORMALMANIFESTATIONS: More payment optionsMANIFESTATIONS: More flexible payment options3 GENERATION GO
1 NAVIGATING THE NEW NORMALWHAT IT MEANSThere are various ways to lower barriersto entry. Brands can create smallerSKUs, “good enough” products andservices that strip out amenities andfeatures or lower quality standards, DIYoptions, off-peak or otherwiserestricted offerings, and unbundled/more flexible services andsubscriptions. They can also add“collaborative consumption” services.
1 NAVIGATING THE NEW NORMALWHAT IT MEANS (cont’d.)3 GENERATION GO
1 NAVIGATING THE NEW NORMALWHAT IT MEANS (cont’d.)3 GENERATION GOWhile many are embracing “goodenough” products, consumers havealso developed the expectation thatcheap can mean chic (or tasty,enjoyable, etc.) as well, sinceretailers like Ikea, H&M and Targethave injected some hipness into low-end retail.As a result, consumers will look forbudget or discount options that don’tfeel terribly downmarket.As lower-cost options proliferate,brands will need to ensure thatconsumers understand why theirpricier products carry a premium.
1 NAVIGATING THE NEW NORMALTHOUGHT STARTERS3 GENERATIONproduct oror use often? At the out features orCan you create a more basic GOamenities many customers don’t need service that strips same time,what small touches can you add that help elevate perceptions of theoffering?Can you create lower-cost products that will help bargain-huntingconsumers feel just as satisfied and savvy as a heavily discounted offering?Are there emerging-market products, services or strategies in yourcategory that can provide inspiration?How can you flip the idea of buying in bulk for customers who are lessvalue-conscious than they are price-sensitive? If you can’t, how can youbetter convey the value of your product size?
2 LIVE A LITTLEFaced with constant reminders about what to do (exercise more, eat better)and what not to do (smoke, overspend), and fatigued from several years ofausterity, consumers will look for ways to live a little without giving up a lot.People have been exercising more self-control, and increasingly they’relooking to let loose once in a while: indulging in sinful things, splurging ontreats and escaping from today’s many worries.
2 LIVE A LITTLEDRIVERS3 GENERATION“Nanny State” fatigue GOGuilt fatigueAusterity fatigueSelf-control fatigueTaking the edge off“Live a little” still cheaper thanliving largeSpending to feel that life is normal
2 LIVE A LITTLEDRIVERS (cont’d.)“Nanny State” fatigueGuilt fatigue In the last couple of years, [peopleAusterity fatigue have] really got it together— they’ve really, really done a goodSelf-control fatigue job at [exercising self-control] and proving that they can save. But at some point you just burn out andTaking the edge off you’re like, ‘OK, I guess this is what’s normal.’ And so it doesn’t“Live a little” still cheaper than surprise me that people start to relax a little bit and start spending again.”living large —KATHLEEN D. VOHS,Spending to feel that life is normal University of Minnesota marketing professor whose research includes consumer self-control
2 LIVE A LITTLEDRIVERS (cont’d.)3 GENERATION“Nanny State” fatigue GOGuilt fatigueAusterity fatigueSelf-control fatigueTaking the edge off“Live a little” still cheaper thanliving largeSpending to feel that life is normal
2 LIVE A LITTLE MANIFESTATIONS: Marketers saying “Live a little” “Life is packed with things you have to do, but sometimes you have to live a little,” says Matthew Broderick in the manifesto commercial for Honda’s “Leap List” campaign as he re-enacts some iconic scenes from Ferris Bueller’s Day Off. In this campaign, “living a little” means stepping out of one’s daily routines to make the most out of life.In the U.S., Kraft’s Oscar Mayer launched a campaign thatencourages consumers to “say yes” to a new line ofpackaged meat products made without artificialpreservatives. Television ads show a world full of “no” forone family: The dad won’t let his daughter out on a date,the mom stops the teen from sneaking out and nixes herhusband’s request to stay out with his buddies. Buteveryone’s allowed Oscar Mayer Selects hot dogs fordinner. The spots end with the line, “In a world filled withno, it’s nice to finally say yes.”
2 LIVE A LITTLE MANIFESTATIONS: Marketers saying “Live a little” (cont’d.) (cont’d.) 3 In Spain, Oscar Mayer championed the concept of simply having fun and worrying about the consequences later on. To illustrate the tagline “Si te divierte, hazlo” (“If you enjoy it, do it”), the brand staged pranks showing people enjoying Oscar Mayer products in humorous and unconventional situations where fun is the No. 1 goal.Spanish deli brand Campofrío tapped into this idea with acommercial showing an old toad explaining that he was a humanin his past life. But he was not gung ho on being one: “You needto learn English… control your calories, triglycerides…” But hisyounger friend breaks into song, imagining what he’d do “If Iwere a human”—“buy a Chihuahua, a waterbed and a mega hamplatter.” The youngster is promptly hit by a truck andreincarnated as a handsome guy eating some ham. The voiceover:“You never know what you’ll become in the next life. So takegood advantage of this one.”
2 LIVE A LITTLEMANIFESTATIONS: “No Nanny State,” Imperial Tobacco3
2 LIVE A LITTLEMANIFESTATIONS: Big sales for little indulgences3
2 LIVE A LITTLEMANIFESTATIONS: Luxury is back3 Luxury prevails because it has substance. It makes you feel special. A lot of consumers will tell us: It’s not only that I get to gain status; I feel like I’ve earned something, I reward myself. … Consumers, even the aspirational consumers, those with a reasonably good income, say, ‘I might borrow a little, or I might spend a little of my savings, but I need to have nice things in life.’ Everyone, even the young, recognize that life is short so I want to have the best and I need to enjoy it.” —MILTON PEDRAZA, CEO, Luxury Institute
2 LIVE A LITTLEWHAT IT MEANSUltimately, many people wouldrather have a bit of somethinggood than a lot of mediocrity.And consumers don’t want tofeel life is passing them by asthey spend frugally, eatconscientiously and behave moreresponsibly altogether. Morepeople will decide there is atime for everything—bothrestraint and rewards.
2 LIVE A LITTLEWHAT IT MEANS (cont’d.)Marketing messages can appeal to the growing desire to live a little by discouragingover-thinking and encouraging more spontaneous enjoyment of life’s pleasures.Brands can help to remove anxiety around indulgent choices and showcase howtheir indulgences are permissible—enabling people to live a little without feelinglike they’ve fallen off the wagon altogether.As a countertrend to the prevailing mood of austerity and anxiety, brands canemphasize fun, happiness, joy and escapism, and ways to take a break from thestresses and responsibilities of daily life. Brands can help people relieve stress andfind ways to squeeze more pleasure and enjoyment out of their lives, whether it’sa cup of top-notch coffee, a trip to the nail salon or a hot fudge sundae.Purchasing brands that provide a sense of deep emotional satisfaction—even if theycarry a price premium—is one way for austerity-fatigued consumers to regain asense of normalcy and/or control and feel, even if only briefly, that everything willbe all right. This may seem a superficial solution, but the power of brands to affectemotional well-being should not be underestimated
2 LIVE A LITTLETHOUGHT STARTERS3 GENERATION GO become more prevalent? theHow can you tap into austerity fatigue, reminding people aboutlimitations and pressures that haveHow can you remove some of the anxiety around what may be perceived asan indulgent choice?How can you position your product or experience as something that, even ifindulgent, can enable condoned things, like sharing, togetherness, creationof special memories, etc.?How can you demonstrate to consumers that an indulgence once in a whiledoes not equate with excessive behavior?
2 LIVE A LITTLERELATED TRENDS AND COUNTER TRENDS3 GENERATION GO
3 GENERATION GOWhile twentysomethings in the developed world feel they’ve been dealt anunfair deck, many are finding opportunity in economic adversity. Out ofcontinued joblessness or discontent with the status quo will spring anunprecedented entrepreneurial mindset, enabled by technology thatobliterates traditional barriers to entry. A so-called Lost Generation willtransform itself into a uniquely resourceful cohort.
3 GENERATION GODRIVERS3 GENERATIONEconomic circumstances GO One of the most exciting things about growing up online is the tremendous access you have toLower barriers to entry information—both sending and receiving it. When youMobility know the world is only a few mouse clicks away from seeingThe entrepreneur as hero what you’ve produced, you should feel entrepreneurial.”Distrust in institutions —ALEXIS OHANIAN, co-founder, Reddit; founder, BreadpigMillennial mindset
3 GENERATION GODRIVERS (cont’d.)3 GENERATIONEconomic circumstances GO social The small business is the idealized form of our time. Our culture hero is not the artist or reformer, not theLower barriers to entry saint or scientist, but the entrepreneur. (Think of Steve Jobs, our new deity.) Autonomy,Mobility adventure, imagination: entrepreneurship comprehends all this and more for us. TheThe entrepreneur as hero characteristic art form of our age may be the business plan.” —WILLIAM DERESIEWICZ,Distrust in institutions “Generation Sell,” The New York Times, Nov. 12, 2011Millennial mindset
3 GENERATION GODRIVERS (cont’d.)3 GENERATIONEconomic circumstances GO Our generation is autonomous. It is impatient. We refuse to pay our dues; if we start an entry-level job,Lower barriers to entry then 6 months later we want to be running the department. ... So we’re making our own wayMobility and making our own jobs. We create our own tech startups, we’re making a living producingThe entrepreneur as hero videos on YouTube. We’re starting our own non- profits instead of joining stagnant, bureaucraticDistrust in institutions NGOs. ... We don’t need your jobs, your advice, your instruction. Pretty soon we won’t need your music labels or publishing houses; we’ll beMillennial mindset doing it ourselves on iTunes and Amazon. We don’t need you at all, except perhaps as a customer.” —JUSTIN KAN, founder of Justin.TV, Kiko and Socialcam, “Generation Make,” TechCrunch, Nov. 14, 2011
3 GENERATION GOMANIFESTATIONS: Success stories3 GENERATION GO Reddit founder Alexis Dropbox co-founders OhanianDrew Houston and Arash Facebook founder Mark Ferdowsi Zuckerberg Instagram co-founders Mike Krieger and Kevin Birchbox co-founders Hayley Barna, Katia Beauchamp Systrom and Mollie Chen
3 GENERATION GOMANIFESTATIONS: Entrepreneurial ethos3 GENERATION GO
3 GENERATION GOMANIFESTATIONS: Incubators and Coworking GENERATION GO Millennials have helped to drive3 demand for coworking spaces, where entrepreneurs, independent workers and freelancers can work side by side in an environment that fosters social interaction and professional synergies. Young Invincibles, a lobbying group for Americans between 18 and 34, has picked up the mantle of young small- business owners, promoting the Youth Entrepreneurship Act, which would give young people more micro-loans, business education and student loan reductions. The bill is also being promoted by the Young Entrepreneur Council, which in 2011 launched the $10 million fund Gen Y Capital Partners, “the world’s first early stage venture accelerator program for Generation Y by Generation Y.”
3 GENERATION GOMANIFESTATIONS: Social entrepreneurship3 GENERATION GO There’s a commitment to having a larger purpose beyond commerce. And so there’s not this separation of profit and not-for-profit—I think you find a lot of hybrid companies in this generation.” —DONNA FENN, journalist; author, Upstarts! How GenY Entrepreneurs Are Rocking the World of Business
3 GENERATION GOMANIFESTATIONS: Gaming the system and Patchwork earnings3 GENERATION the system. Millennials want to beat GO They’ll try to manipulate or negotiate with their parents,teachers, and employers to get ahead.They’re not anti-authority or anti-rules, butthey want to work things to their advantage.” —ALISON HILLHOUSE, senior director of insights innovation at MTV, Q&A, Ypulse.com, June 9, 2011
3 GENERATION GOMANIFESTATIONS: TV shows 3 GENERATION GO Ben Epstein and Cam Calderon of HBO’s now-canceled How to Make It in America played entrepreneurs who worked every angle to make their dream of success in the fashion industry into a reality.A U.S. sitcom, 2 Broke Girls features twostruggling twentysomethings in Brooklyn. In hopesof navigating out of their plight, they pool theirresources—one has baking skills, the other businessacumen—to raise the funds to launch a cupcakeenterprise.
3 GENERATION GO WHAT IT MEANS 3 GENERATION GOSince many Millennials feel theymust break free of a system that’sdisappointed them, brands thatposition themselves as outsiderswill curry favor.
3 GENERATION GOWHAT IT MEANS (cont’d.)3 GENERATION GO Giving Millennials a course of action is also a wise play. Marketing to younger people must, of course, include social and mobile media, but these often connect in superficial ways. Brands that want to connect more deeply should tap into Generation Go’s desire to take concrete steps and make an impact.
3 GENERATION GOWHAT IT MEANS (cont’d.)3 GENERATIONthem to exertbureaucracy, so providing ways for GOMillennials don’t want to be stifled bysome autonomy in a productive, cooperative waywill yield great results. With improvements intechnology continually opening new doors,coupled with Millennials’ resourcefulness, thisgeneration already has many opportunities thatweren’t available to previous generations—thekey will be to recognize, contribute to andfoster these. Looking further into the future, the nextgeneration (Gen Z) looks poised to take up this“go” mindset as well—take the 12-year-old whomade a TEDx presentation about his iPhone appsand the Teens in Tech Incubator, which focuseson aspiring entrepreneurs age 13-19. Quite astep up from the lemonade stand.
3 GENERATION GOTHOUGHT STARTERS3 GENERATION GO embraces?Does your messaging to Millennials reflect the optimism in adversity andboot-strap success that this generation How can your brand use social media to bring Millennials together around acommon cause? How can your brand be a tool to help them improve theirlives or the world at large?How can your brand address the entrepreneurial mindset of the Millennial?What resources can you provide for aspiring entrepreneurs to succeed? How can your brand acknowledge the adversity facing the youngest adults?How can it empower young people to find success?
3 GENERATION GOTHOUGHT STARTERS (cont’d.)(cont’d.)3 GENERATIONhands-on opportunities for Millennials toHow can your brand provide GOimprove the world? In what ways can you differentiate yourself from the system that has, inthe eyes of many Millennials, failed them? Are there tasks you can outsource for microwork that could also bringinterest to your brand beyond the paycheck for the worker?
4 THE RISE OF SHARED VALUERather than simply doling out checks to good causes, some corporations arestarting to shift their business models, integrating social issues into their corestrategies. The aim is to create shared value, a concept that reflects thegrowing belief that generating a profit and achieving social progress are notmutually exclusive goals.
4 THE RISE OF SHARED VALUEDRIVERS3 GTIONin GONew opportunities emergingmarkets We have observed that companies that choose to take on a more proactive approachPressure to cut costs and carbon in the form of ‘socialemissions innovation’ are capturing much greater competitive advantage.Blurring lines between business, This competitive advantage isnonprofits and government rooted in an ability to create new productsLooming resource shortages and services that deliver social and environmental impact alongside financialConsumer expectations impact, gain access to new markets, engage and retain their internal talent, as well asThe Millennial outlook build brand differentiation in the market.” —CHARMIAN LOVE, chief executive of social innovation consultancy Volans
4 THE RISE OF SHARED VALUEDRIVERS (cont’d.)New GTION GO3 opportunities in emergingmarkets The principle of shared value creation cuts across the traditional divide between the responsibilitiesPressure to cut costs and carbon of business and those of government or civilemissions society. From society’s perspective, it does not matter what types of organizationsBlurring lines between business, created the value. What matters is thatnonprofits and government benefits are delivered by those organizations— or combinations of organizations—that are bestLooming resource shortages positioned to achieve the most impact for theConsumer expectations least cost.” —MICHAEL E. PORTER AND MARK R. KRAMER, “Creating Shared Value: How toThe Millennial outlook reinvent capitalism—and unleash a wave of innovation and growth,” Harvard Business Review, January-February 2011
4 THE RISE OF SHARED VALUEDRIVERS (cont’d.)New GTION GO3 opportunities in emergingmarketsPressure to cut costs and carbonemissionsBlurring lines between business,nonprofits and governmentLooming resources shortagesConsumer expectationsThe Millennial outlook
4 THE RISE OF SHARED VALUE MANIFESTATIONS: Reconceiving products to address social issues 3 GTION GO Campbell’s Nourish: Distributed in Canadian groceries, Nourish is a single-serving can of soup designed to provide a complete daily serving of three key food groups at a low cost. Campbell’s considers the product both a commercial opportunity and a way to address hunger and food security issues.GE’s Vscan: This smartphone-sized imaging tool bringsultrasound technology to Philips’ “Sustainable Energy Solutions for Africa”:physicians’ pockets. It allows As part of this solar-focused effort, Philips ismedics to diagnose patients in partnering with the Dutch government in a bid tothe field and bedside. With a provide affordable, sustainable energy solutions toprice tag just under $8,000, the some 10 million people across sub-Saharan AfricaVscan offers a far cheaper by 2015. The Solar Home System, for instance, is aalternative to standard low-cost, highly efficient light for homes and smallultrasound machines, which can businesses. A fully charged solar battery packcost upward of $100,000. powers two LED lamps for more than five hours.
4 THE RISE OF SHARED VALUEDRIVERSMANIFESTATIONS: Reconceiving supply chains3 GTION GO BritishMarks & Spencer, “Plan A”: Theretailer has committed to the lofty goal ofbecoming the world’s most sustainablemajor retailer by 2015. The companyrecently announced that it is now fullycarbon neutral, a strategy that hascontributed to a reported £105 million netbenefit for M&S in 2011/12.Walmart’s fuel-efficient trucks: Walmart isworking to double its truck efficiency by2015 (based on a 2005 baseline), switchingto fuel-efficient tires, recalibrating enginesand adding aerodynamic elements to truckcarriages. In 2010, these initiatives helpedthe company cut its fuel costs and savealmost 40,000 metric tons of CO2 emissions.
4 THE RISE OF SHARED VALUEDRIVERS MEANSWHAT IT WHAT IT MEANSBy GTION GO3 putting shared value at the center of theirstrategy, brands can benefit their business,their customers and society at large. Byreconsidering products and targetdemographics, forging partnerships with localgroups and improving productivity in thevalue chain, companies can become a forcefor positive change while enhancing theirlong-term competitiveness.In the long term, a shared-value approachcan insulate companies from shocks in thesupply chain; improve the way they areperceived by consumers, their employees andpotential hires; foster innovation by thinkingabout products and markets in new ways; andconsequently open up new markets.
4 THE RISE OF SHARED VALUEDRIVERS MEANS (cont’d.)WHAT IT WHAT IT MEANS3 GTION GO the global population explodes, this number is set toThere are more than 3 billion low-income consumers worldwide, according toestimates by Nestlé, and asspike. By creating products and services to meet the needs and budgets of thissegment, brands have a huge opportunity to expand outside developed markets.And by investing in emerging markets, brands can create a virtuous circle, whereemployed locals become aspiring middle-class consumers. One way for brands to innovate is by scaling down offerings into lower-pricedversions.Brands will need to consider how to educate stakeholders about the potential ofthese kinds of ventures, emphasizing the importance of long-term businessstrategies over short-term returns and implementing incremental changes tocorporate practices. As the concept of shared value becomes more widelyembraced, expect a new class of shared value auditors to develop metrics thatassess companies in terms of social impact and shared value generated.
4 THE RISE OF SHARED VALUEDRIVERS MEANS (cont’d.)WHAT IT WHAT IT MEANS3 GTION GO Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. It is not on the margin of what companies do but at the center. We believe that it can give rise to the next major transformation of business thinking.” —MICHAEL E. PORTER AND MARK R. KRAMER, “Creating Shared Value: How to reinvent capitalism—and unleash a wave of innovation and growth,” Harvard Business Review, January-February 2011
4 THE RISE OF SHARED VALUEDRIVERS STARTERSTHOUGHT WHAT IT MEANS3 any social causesGO into your corporation’s core strategies? If not, whatAre GTION integratedwould be some logical social causes for your company to become involved in? Are there innovative partnerships to be had with philanthropic organizations or NGOsthat can help ingrain social causes into your business DNA and the profitability ofyour company? Do your current philanthropic efforts have a long-term measurable impact on boththe cause and your bottom line? How can your current product line be evolved, expanded or tweaked to addresssocial challenges in your current markets or, perhaps, new markets? How can your brand best educate shareholders about ventures that benefit business,customers and society in general?
5 FOOD AS THE NEW ECO-ISSUEThe environmental impact of our food choices will become a more prominentconcern as stakeholders—brands, governments and activist organizations—drive awareness around the issue and rethink what kind of food is sold andhow it’s made. As more regions battle with food shortages and/or spikingcosts, smarter practices around food will join the stable of green “bestpractices.”
5 FOOD AS THE NEW ECO-ISSUEDRIVERSGO growthPopulationDemands of the Western dietDeclining biodiversityClimate upheavalFreshwater shortagesRamping up biofuelsRising consciousness
5 FOOD AS THE NEW ECO-ISSUEDRIVERS (cont’d.) How people, businesses,GO growthPopulation countries and companies adapt to climate changeDemands of the Western diet will be hugely important. We know that some areasDeclining biodiversity which can grow food now won’t be suitable for growingClimate upheaval those kinds of crops in 20 or 30 years’ time.” —DAN CROSSLEY,Freshwater shortages principle sustainability adviser, Forum for the FutureRamping up biofuelsRising consciousness
5 FOOD AS THE NEW ECO-ISSUEDRIVERS (cont’d.) (cont’d.)GO growthPopulationDemands of the Western dietDeclining biodiversityClimate upheavalFreshwater shortagesRamping up biofuelsRising consciousness
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Adding a green halo to vegan/vegetarian choices “If you’re a progressive, if you’re driving a Prius or you’re shopping green or you’re looking for organic, you should probably be a semi- vegetarian.” —MARK BITTMAN, 2007 Entertainment Gathering Conference
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Advocating for insectsWhile parts of the world have long relied on bugs as a source of protein,some are trying to push six-legged creatures onto Western menus as asustainable protein source. Insects require far fewer natural resources toraise and produce far less waste than poultry and livestock.
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Reducing food waste There is a green fatigue that sets in to a certain extent where we’re asking consumers to consider so many environmental issues that it’s almost paralyzing. But reducing waste is a pretty easy one in that we’re simply buying too much food and stuffing our refrigerators to the point that we couldn’t possibly eat all of that food. In terms of behavior change, which is a difficult task, what I’m trying to do is get people to become smarter shoppers. —JONATHAN BLOOM, journalist; author, American Wasteland
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Developing sustainable supply chains The seafood industry and what we know about its impact on the environment is always changing. So it only makes sense to partner with a group of experts that can keep track of the latest and greatest information. When Sustainable Fisheries Partnership counsels us on the technical side of the business, it allows us to do what we do best … provide fresh, high quality, responsible seafood to our customers. We’re excited about how this partnership can enrich our company, our customers’ experience, and the seafood industry.” —CARL SALAMONE, Wegmans VP of seafood
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Food on the world agenda
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Brand initiatives
5 FOOD AS THE NEW ECO-ISSUEMANIFESTATIONS: Brand initiatives (cont’d.)
5 FOOD AS THE NEW ECO-ISSUEWHAT IT MEANSIt will become increasingly clear tobrands and consumers alike that wewill need to adopt new, greenerpractices around food as demandspikes, natural resources getsqueezed and climate change wreakshavoc on the supply chain. And asconsumers grow more aware thattheir everyday food choices make anenvironmental impact, they willslowly begin to change their ownhabits—motivated both by pricespikes and conscience—and expectfood brands to similarly evolve.
5 FOOD AS THE NEW ECO-ISSUEWHAT IT MEANS (cont’d.)Proactive brands will start I think there will be someeducational efforts before a education needed by brands onstrained food supply prompts these big issues, but they needfurther price hikes. In turn, since to be very careful in the waypeople tend to vote with their that they try to engagewallets and embrace sustainability consumers on this agenda.issues they can see (think recycling Issues such as water andvs. saving electricity), rising prices biodiversity will start becoming morecould be the tipping point for mainstream, but it will take time. Given thegetting consumers engaged in the urgency of the challenges, brands are betterissue. Whenever it happens, off trying to make the complicated decisions onhowever, that tipping point is behalf of consumers rather than trying toinevitable: Experts at the U.N. educate them about the impacts to the wholeFood and Agriculture Organization system.” —DAN CROSSLEY,forecast that beef will become a principle sustainability adviser,true luxury item, akin to caviar, Forum for the Futuredue to rising production costs.
5 FOOD AS THE NEW ECO-ISSUETHOUGHT STARTERSWhat steps can you take to educate consumers about the eco-impact oftheir food purchases?What are the most relevant material impacts of your brand on theenvironment? How can your brand address these issues in an interestingway?If your eco-impact is low, can you increase transparency to make this aselling point?If your company’s offerings are higher-footprint, how can you get in frontof the issue, as Max Burger did? Can you give consumers more options sothey can remain customers without feeling too guilty about the choice?
5 FOOD AS THE NEW ECO-ISSUETHOUGHT STARTERS (cont’d.)How can your brand make this heady issue fun and engaging for consumers?How can this issue be broken into digestible bits?How can your brand/company gain consumers’ trust around the eco-issuessurrounding food production?What aspects of food production can your brand/organization take“ownership” of?
6 MARRIAGE OPTIONALA growing cohort of women is taking an alternate life route, one that doesn’tinclude marriage as an essential checkpoint. Both in the West, where thistrend is building, and in the East, where it’s gaining momentum, “happilyever after” is being redefined as a household of one, cohabiting or singlemotherhood.
6 MARRIAGE OPTIONALDRIVERS3 GENERATIONWomen gaining in education GO Why should I have to settle down to a life of preparing tofu soup, like myWomen gaining in the workplace mother?” —One of South Korea’s “golden misses” (high-earning single women),Men losing economic ground “The flight from marriage,” The Economist, Aug. 20, 2011Motherhood untethered from marriageThe Omega maleToo many fish in the (virtual) sea
6 MARRIAGE OPTIONALDRIVERS (cont’d.)3 GENERATIONWomen gaining in education GO While the alpha male wants to dominate and the beta male justWomen gaining in the workplace wants to get by, the omega male has either opted out or, if he used to try, given up.”Men losing economic ground —JESSICA GROSS, “Omega Males and the Women Who HateMotherhood untethered from marriage Them,” Slate, Oct. 18, 2010The Omega maleToo many fish in the (virtual) sea
6 MARRIAGE OPTIONALMANIFESTATIONS: Older, or not at all, brides3 GENERATION GOIn 2010, a third of Japanese women entering their30s were single, while 37% of all Taiwanese women30-34 were single.And in the U.S., a stalwart of traditional marriage,the average age for a woman’s first marriage is 26,up from 25 in 2000. The census also found 30% ofall American adults had never married, the largestpercentage in 60 years, with the average age offirst marriage creeping steadily upward.
6 MARRIAGE OPTIONALMANIFESTATIONS: Alternative partnerships3 GENERATION GOIn France, civil unions—which allow tax and insurance breaks—have gained favor since lawmakerscreated the option in 1999: There are two such unions for every three traditional marriages. InColombia, 14% of women aged 15-49 were cohabiting in 1995 vs. 33% in 2010. The share of 30- to44-year-old Americans cohabiting has more than doubled since the mid-1990s.In Mexico City, lawmakers proposed a measure that will let couples “test drive” marriage with atwo-year contract, so newlyweds can avoid difficult divorce proceedings.
6 MARRIAGE OPTIONALMANIFESTATIONS: Older single mothers3 GENERATION GO In U.S. pop culture, the single mother has evolved from selfish yuppie or drug-dazed slut into a woman who is more fun, slightly more heroic, and certainly less frumpy than her married counterpart. Indeed, single mothers are the new maternal ideal—women whose maternal drive is so selfless and intense that they choose to raise children even under the burden of their solitary status.” —NAOMI WOLF, ”The Single Mother Makeover,” Project Syndicate, Aug. 30, 2011
6 MARRIAGE OPTIONALMANIFESTATIONS: Trial-stay apartments3 GENERATION GOIn Japan, where young people generallymove from their parents’ home into theirmarried home, one company has startedmarketing apartments to young singlewomen. PanaHome gives the growingdemographic of single women 20-35 a wayto try out independent living withoutmaking a costly financial commitment.
6 MARRIAGE OPTIONALMANIFESTATIONS: Marketing to the savvy single3 GENERATION GO In Japan, brands including The North Face and Aigle are targeting “yama girls” (mountain girls)—women, many of them single, who take to the hills on weekends—with fashion- forward hiking and climbing gear; Alpine Tour Service Co. and Yama-kei Publishers Co. offer women-only tours to Mount Fuji.
6 MARRIAGE OPTIONALWHAT IT MEANS3 GENERATION GOSingle women once pitied by theirmarital counterparts are part of a For so long the stereotype of the single person was thatgrowing demographic living life on theyre at home crying in theirtheir own terms. No longer social bed, just so wishing if onlyoutliers, they are increasingly they could be married. Andaccepted and sometimes envied. there is still a lot of that; thatWhile most women will still seek stereotype really persists.committed partners, whether or Thats not how many real single people arenot a wedding ring is involved, living their lives or feeling about their lives. ...more are coming to appreciate the More and more single people are living theiradvantages of singlehood and lives fully, joyfully and without apology. Andputting marriage on the back whoever recognizes that first wins."burner in favor of a satisfying life —BELLA DEPAULO, author of Singled Out: How Singlesfilled with friends, travel and Are Stereotyped, Stigmatized, andadventure. Ignored, and Still Live Happily Ever After and Singlism: What It Is, Why It Matters, and How to Stop It
6 MARRIAGE OPTIONALWHAT IT MEANS (cont’d.)3 GENERATION of the happy homemaker with 2.5 children. to GOMarketers must recast their image of a single adult. No longer can they affordeclipse single women with imagesSingle women are buying their homes, cars and other big-ticket items on theirown. Marketers should cast singles in full lives of their own, not waiting for Mr.Right to lead them down the aisle to the starting line of adulthood.Singles of all ages generally spend more of their income on alcohol, clothes, shoesand more. As they age, they are likely to earn more, developing a taste for luxuryproducts, exotic travel and hobbies. Their lives revolve around going out withfriends, adventure and dating, all activities that encourage consumer spending.Other service providers can market themselves as a way to bring people—not justpotential love interests—together. The travel industry should benefit particularly,if it focuses on fun and adventure instead of or in addition to romance.
6 MARRIAGE OPTIONALWHAT IT MEANS (cont’d.) THOUGHT STARTERS3 GENERATION GO the unmarried?brand to brand marketsolder,How does your brand currently market toprimarily to young singles, how could you redefine your If your appeal to ansophisticated single target?Does your brand consider women to be independent operators in the world or simplya cog in the family wheel—wife, mother, daughter? If so, how can your brand changeits perspective to consider women as individuals with diverse lifestyles?Does your brand conceive of the 18-34 single demographic as largely male? If so, howcould your brand reconsider that demographic to include women on their way up inthe world? What about older single women?How can your brand bring people together for fun and adventure rather than justromance? If your brand targets married couples and families exclusively, think abouthow your service might benefit people living on their own, without roommates.
6 MARRIAGE OPTIONALWHAT IT MEANS (cont’d.) RELATED TRENDS3 GENERATION GO
7 REENGINEERING RANDOMNESSAs our individual worlds become more personalized and niche—and the typesof content, experiences and people they are exposed to become narrower—greater emphasis will be placed on reintroducing randomness, discovery,inspiration and different points of view into our worlds.
7 REENGINEERING RANDOMNESSDRIVERS3 GENERATIONHyper-Personalization GOThe quest for discoveryThe local lifeThe pursuit of inspiration
7 REENGINEERING RANDOMNESSDRIVERS (cont’d.)3 GENERATIONHyper-Personalization GOThe quest for discoveryThe local lifeThe pursuit of inspiration
7 REENGINEERING RANDOMNESSMANIFESTATIONS: The LivingSocial Taxi3
7 REENGINEERING RANDOMNESSMANIFESTATIONS: Library Thing’s UnSuggestor andSomethingStore3 Library Thing’s UnSuggestor: A tongue-in- cheek answer to the suggestion algorithms of so many other sites, this feature allows users to type in books they like to find something completely opposite. For $10, SomethingStore selects a random item from its inventory and sends that something to the customer—it could be a cool gadget, rare book, handmade necklace, popular video game, etc.
7 REENGINEERING RANDOMNESSMANIFESTATIONS: Serendipitous listening3 Turntable.fm made a splash in 2011 by turning the chat room into a DJ booth, where anyone can cue up tunes or simply hang out in dozens of themed rooms. The Turntable experience makes it easy and fun to discover music that diverges from our usual playlists. “Listen to music selected by people, not algorithms,” urges copy on the site. “Music is subjective, humans make connections and suggestions that just would not occur with a computer running the show. Chances are that you will hear something great that you have never heard before.”
7 REENGINEERING RANDOMNESSMANIFESTATIONS: Shit Siri Says3
7 REENGINEERING RANDOMNESSMANIFESTATIONS: Airtime3 Launched this June, Airtime is being touted as a random, real-time video chat platform where strangers will be “smashed together”—taking some inspiration from Chatroulette, the website launched in 2009 that paired strangers around the world for webcam-based interaction. Co-founder Sean Parker says the aim is to help people forge new relationships; with Airtime, Parker and Shawn Fanning (who once founded Napster together) will ignore old friendships and instead focus on helping users connect with strangers. There’s a yearning to break outside of the social graph. It will be a good chat product, but there are a bunch of good chat products. We are trying to build new relationships, not reinforce the old relationships.” —Internet entrepreneur SEAN PARKER on his new venture, Airtime, Forbes.com, Oct. 6, 2011
7 REENGINEERING RANDOMNESSMANIFESTATIONS: London’s Secret Cinema3 GENERATION GO Live events company Future Cinema has been staging Secret Cinema screenings: Attendees don’t know where they’re headed or what they’re seeing until shortly before the event.
7 REENGINEERING RANDOMNESSMANIFESTATIONS: Injecting some mystery into your vacation3 GENERATION GO American Express’ Nextpedition offering puts together mystery itineraries for customers after getting a sense of their travel preferences. PacificIslands.com is running mystery sales in which winners choose their travel dates but only find out their exact destination two weeks before the trip.
7 REENGINEERING RANDOMNESSWHAT IT MEANSIncreasingly, breaking through There’s a premium on beingthe personalization bubble exciting and unexpected andwill become an important way taking people out of thisto grab consumers’ attention. comfort zone that they’reBy providing a dose of the building for themselves in waysunexpected, brands can that are comfortable. And Iinspire consumers who crave certainly think if you can figurediscovery and perhaps find out how to do that, that’s going to be morenew markets as well. and more appealing as more and more of what people see is very homogenously tailored.” —Q&A with ELI PARISER, author of The Filter Bubble, JWTIntelligence.com, June 1, 2011
7 REENGINEERING RANDOMNESSWHAT IT MEANS (cont’d.)As consumers increasingly rely on hyper-personalization to help them navigatethe Web and the wider world, the random element will come to represent thehuman touch. In some cases, humans will remain responsible for introducing thisserendipity.More services will help people meet new, interesting people and encourage themto explore new ideas away from the Internet. Brands should look for interesting,unexplored facets of their personality and use those to connect with consumersin more random ways—for example, pop-up promotions, same-day tastings,mystery bonus products and opaque packaging are all ways to introduce theelements of surprise and delight we’re missing online. Brands and sites thatencourage users to meet strangers, explore new ideas and move beyond theircomfort zone in the real world will feel the biggest boost.The key will be allowing consumers to opt into random discoveries, rather thanassailing them with irrelevant information and experiences.
7 REENGINEERING RANDOMNESSTHOUGHT STARTERS3 GENERATION GO your brand’s personality? How can youWhat are some unexplored facets ofplay on those to introduce something random and surprising to theconsumer experience while staying true to your brand’s core?How can you help your target consumers realize they may be in apersonalization bubble, surrounded by too much sameness?What about random experiences are the most fun? What are the mostuncomfortable? Where do the two come together? How can your brandbring those experiences to consumers online and off?What kind of random experiences would your brand audiences welcome?Which would they rather avoid? What about your brand is inspirational?How can you bring that to life?
7 REENGINEERING RANDOMNESSCOUNTER TRENDS3 GENERATION GO
8 SCREENED INTERACTIONSMore flat surfaces are becoming screens, and more screens are becominginteractive. Increasingly we’ll be touching them, gesturing at them andtalking to them—and becoming accustomed to doing so as part of oureveryday behaviors. This is opening up novel opportunities to inform, engageand motivate consumers.
8 SCREENED INTERACTIONSDRIVERS3 GENERATIONTouch screens go mainstream GOTouch screens go bigGlass 2.0KinectNatural Language ProcessingNFC and RFIDCost savingsLife in real time Perceptive Pixel says its 82-inch screen is “the world’s largest projected capacitive, optically bonded multi-touch display.”
8 SCREENED INTERACTIONSDRIVERS (cont’d.)3 GENERATIONTouch screens go mainstream GOTouch screens go bigGlass 2.0KinectNatural Language ProcessingNFC and RFIDCost savingsLife in real time
8 SCREENED INTERACTIONSDRIVERS (cont’d.)3 GENERATIONTouch screens go mainstream GOTouch screens go bigGlass 2.0KinectNatural Language ProcessingNFC and RFIDCost savingsLife in real time
8 SCREENED INTERACTIONS MANIFESTATIONS: Screened interactions for commuters (brand initiatives)Philadelphia Cream Cheese GENERATION GOplaced touch screens at bus stops 3in major Irish cities that let peopleview the brand’s commercials, British cider brand Bulmers installed screens at bus stops thatbrowse recipes and even email enabled people to drag virtualthese to themselves. fridge magnets to create words and phrases, then share these via social media. British charity Plan UK installed screens equipped with facial recognition at London bus stops. If the viewer is female, a 40-second video plays; the ad remains static for male viewers, highlighting the effect of gender discrimination.
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for commuters (travel planners)3
8 SCREENED INTERACTIONS MANIFESTATIONS: Screened interactions for diners (tables) At London’s Inamo restaurant, E-Table 3 GENERATION GO technology grants customers control over their dining experience. A ceiling projector effectively turns the tabletop into an interactive screen, which diners navigate using a built-in mouse; they can view menus, play games, change the virtual tablecloth and even order a taxi.In New York, a restaurant at high-enddepartment store Barney’s features 30individual screens in a large communal tablethat’s covered in glass; diners can digitally ordertheir meal, then browse the store’s catalogwhile eating.
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for diners (menus)3 GENERATION GO
8 SCREENED INTERACTIONS MANIFESTATIONS: Screened interactions for diners (cashiers) GENERATION GOMcDonald’s has been replacing 3cashiers with touch-screen terminalson which customers can browse themenu, order and pay. The companyhas more than 800 Self Order Kiosksin Europe and, in May 2011, said itwas considering expansion of theinitiative.
8 SCREENED INTERACTIONSMANIFESTATIONS: The interactive kitchen3 GENERATION GO
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for shoppers (Clinique Smart Bar)3 GENERATION GO
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for shoppers (Macy’s Beauty Spot)3 GENERATION GO This innovative kiosk from Macy’s, in partnership with Intel, lets shoppers digitally peruse the cosmetics floor’s offerings by top picks, category or items that can help achieve various looks. Customers can view product details, online reviews and similar products, adding items to a shopping list that they can email to themselves or print out, handing over to a sales assistant who can gather the products.
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for shoppers (HSN Pizza Challenge) HSN, the home shopping channel, developed a 13-foot interactive wall offering a “pizza challenge” that could be installed anywhere from food festivals to airports. Users can play the pizza-making game with on-screen host/celebrity chef Wolfgang Puck, who uses products sold by HSN as he makes pies. Aspiring chefs can find out more about the ingredients and kitchenware used and, if interested, send themselves a link to the products on HSN’s site.
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for shoppers (interactive windows)In GENERATION3New York,storefront windows that allowinteractive Bloomingdales installed six GOpassersby to “try on” sunglasses: People aligntheir eyes with ovals on the window, and thesunglasses appear over them. Tapping on iconsbrings up different styles. To promote Tazo Tea, Starbucks installed interactive touch screens in the windows of select Toronto and Vancouver outlets.
8 SCREENED INTERACTIONSMANIFESTATIONS: Screened interactions for shoppers (interactive windows)In 2010, people outside an electronics retailerin Melbourne, Australia, could exploreMicrosoft’s new Windows Phone 7 OS bytapping and swiping touch-screen windowsthat incorporated advanced projectiontechnologies. Rugby Ralph Lauren deployed interactive touch-screen windows at its New York and San Francisco stores as part of the 2009 launch of its “Make Your Own” app. People could customize a Rugby shirt with lettering and patches, email their creation, post it to Facebook and purchase it through the touch screen.
8 SCREENED INTERACTIONS MANIFESTATIONS: Screened interactions for shoppers (virtual mirrors)In 2010, Macy’s showcased a “Magic Fitting Room” atits flagship New York store: The kiosk featured amirror linked to a touch-screen tablet, whichshoppers used to select items to “try on” (these werethen superimposed on the shopper’s image) and toshare the results via Facebook, email and text to findout what their friends thought of the outfits. Department store John Lewis is trialing two virtual mirrors at its flagship London location. The 6-by-3 StyleMe mirrors feature cameras that capture a shopper’s body size and position, then clothing and accessories can be superimposed over the image. Shoppers can also create a virtual collection of items, which they can share via email and social networks, along with QR codes linking to the website.
8 SCREENED INTERACTIONS MANIFESTATIONS: Screened interactions for customers 3 GENERATION GO In the U.S., Hertz has installed interactive video kiosks in rental locations. Equipped with touch screens, they allow customers to check in for pre- booked rentals or to create an order. A second screen and a camera enable direct communication with customer service agents via video, if necessary (they can review documents like drivers licenses and help customers pick vehicles). At the end of the process, the kiosks dispense a RFID card that unlocks the car. In early 2011, Royal Bank of Canada begandeploying Microsoft Surface technology in itsbranches to help customers “increase theirfinancial literacy.” The touch screens let peopleexplore the bank’s financial products and reviewprofiles of staff members, and they also providegames for customers’ kids. Customers can beentered into a drawing for a prize by placing adirect-mail brochure onto the screen.
8 SCREENED INTERACTIONSMANIFESTATIONS: Interactive auto windshields Audi has been trialing a similar system, also controlled by gesture.A prototype gesture-controlled windshieldfrom Mercedez-Benz, the Dynamic and IntuitiveControl Experience, lets drivers simply point at icons onthe transparent heads-up display. The screen thenprovides augmented reality information (e.g.,identifying landmarks that the car passes).
8 SCREENED INTERACTIONS MANIFESTATIONS: Screens and smartphones in sync GENERATION GOIn addition to touch, gesture and voice, smartphones 3serve as another means for interacting with screens.To promote its sponsorship of the German basketballleague, the German branch of ING created aninteractive billboard that allowed people to takevirtual free throws at a basketball hoop using theirsmartphone. The game then posted a status updateto players’ Facebook walls. The U.K.’s National Centre for Domestic Violence worked with JWT London to produce a series of large digital billboards at Euston Station in London. A man is seen menacing a woman—and passersby can use their smartphones to sync with the installation and literally drag the abuser away. Doing so reveals a message urging people to report domestic violence they witness so that the agency can intervene.
8 SCREENED INTERACTIONSMANIFESTATIONS: Screens and smartphones in sync (cont’d.)3 GENERATION GO In 2011, McDonald’s created a version of Pong on a digital billboard in Stockholm. Passersby could use their smartphones to play the game, which was accessible through a location-aware mobile site. Players who completed the game in 30 seconds won coupons for the nearest McDonald’s.
8 SCREENED INTERACTIONS MANIFESTATIONS: Immersive installationsA large augmented realityinstallation for NationalGeographic Channel inHungary consisted of an Coca-Cola installed one of theLED display that world’s largest interactive digitalprojected AR images of installations in a shopping center inastronauts, a huge Quito, Ecuador. A 52-foot screentyrannosaurus rex and projected highly realistic 3D images ofhungry velociraptors that falling water, responding to onlookersresponded to bystanders’ who engaged with it.movements and gestures,creating a highlyinteractive experience. In 2010 Xerox installed large touch screens in U.S. airports that featured interactive games based on the company’s partnerships with Target and Marriott. Users could deliver virtual mail on a red Target motorcycle or open digital doors to “spy on” people in their hotel rooms.
8 SCREENED INTERACTIONSMANIFESTATIONS: SketchSynth SketchSynth is a prototype, designed by students at Carnegie Mellon University, that turns pieces of paper into interactive synthesizer control boards. Users simply draw the controls they need (sliders, toggle switches and buttons) and a sensor will recognize them. When read by a webcam, they become interactive, allowing prospective DJs to modulate their music in real time.
8 SCREENED INTERACTIONSWHAT IT MEANSFor retailers and service providers, I think having a voice-controlledinteractive screens present an [retail] system makes senseopportunity to embed interactive behaviorally. That’s alreadyelements of the online experience something that we’rein the physical store. Screens can acculturated to expect. Soattract customers’ attention and you’re trying on something, youprovide a great deal of detail walk up to a mirror and theabout the products and services a mirror can actually address you directly and becustomer is most interested in. like, ‘Do you want to see what that would be like in another color?’ And then … directs youUltimately, with facial recognitionand profiling technologies, brands to other sales or other floors or things thatcan provide more customized would match or whatever else.”information and recommendations —BRIAN HOUSE, creative technologist, Research andvia screened interactions. Development Lab, The New York Times Co.
8 SCREENED INTERACTIONSWHAT IT MEANS (cont’d.)Interactive screens on out-of-home digital media present the potential for allkinds of innovative ways to communicate with passersby around the clock. Theyoffer a way to gamify the simple bus-stop ad or billboard. They can also addutility, enabling consumers to locate stores and find their hours, reserverestaurant tables or request more information. As mobile wallet technologytakes off, consumers will be able to save time by making quick purchases viaoutdoor screens.Whether in stores, on out-of-home ads or on vending machines and elsewhere,interactive screens can also facilitate consumer connections in new ways. Built-in social networking capabilities compress the sharing process to a simple touchof the button or wave of the hand. Consumers can also be connected withstrangers, creating engaging social experiences.
8 SCREENED INTERACTIONSWHAT IT MEANS (cont’d.)Down the road, we’ll see newkinds of surfaces becomingintelligent, interactive screens,from bathroom mirrors to floors.While touch screens will helpconsumers in many ways,cutting out the complications ofdealing with brand associatesand providing tailoredinformation and quick-paysolutions, people will start toplace a premium on real-worldhuman interactions as touchscreens come to substitute forhumans.
8 SCREENED INTERACTIONSTHOUGHT STARTERS3 GENERATION GO communicate with your audience, how canWhat investments, if any, are you making in screened-based interactions withconsumers? If you already use screens toyou maximize interactivity via facial recognition or touch-, gesture-, voice- ordevice-based interactions?What elements of the online experience would you like to layer onto the physicalworld?Considering your traditional out-of-home media, if you had a chance to addinteractivity to it, what would you do?Does your physical space have tech-free “white” spaces? If appropriate, is there away you can colonize this space with unique interactive interfaces? What elementsof your physical space should remain tech-/screen-free?
8 SCREENED INTERACTIONSTHOUGHT STARTERS (cont’d.)3 GENERATION GO the brand experience? interactiveCan you gain efficiencies by replacing human-populated systems withscreens? Would that add to or detract fromCould your brand turn surface real estate that the consumer owns (the bathroommirror, the kitchen counter, a car window, etc.) into an interactive screen and addsomething of value (the news and weather, a recipe, directions)?Can interactive screens help consumers link their own devices into your electronicecosystem? For instance, can you create unique interactive experiences that gobeyond the basic check-in?
8 SCREENED INTERACTIONSRELATED AND COUNTER TRENDS3 GENERATION GO
9 CELEBRATING AGINGPopular perceptions of aging are changing, with people of all ages taking amore positive view of growing older. And as demographic and culturalchanges, along with medical advances, help to shift attitudes, we’ll redefinewhen “old age” occurs and what the term means.
9 CELEBRATING AGINGDRIVERS (cont’d.) GENERATION3 rapidly aging worldA GOAging more gracefullyMiddlescenceAge X is the new age YThe new grandparent“Peerents”New archetypesDemography’s Dead
9 CELEBRATING AGINGDRIVERS (cont’d.)A rapidly aging worldAging more gracefullyMiddlescenceAge X is the new age YThe new grandparent Today, grandparents are doing mountain treks with their“Peerents” grandkids. … They are a hipper, cooler, younger, moreNew archetypes affluent cohort than we’ve ever seen populating thatDemography’s Dead stage of life.”—KEN DYCHTWALD, founder and CEO of AgeWave, a mature markets consultancy
9 CELEBRATING AGINGDRIVERS (cont’d.) I’m not even conscious of the fact that [recent Gen X cover womenA GENERATION3rapidly aging world GO are] over 35 or over 40 because to me they’re just really interesting women whoAging more gracefully are great-looking, who have great careers, who have something to say, and that’s whyMiddlescence they’re on the cover, because they have all of those magic combination of qualities.”Age X is the new age Y —LINDA WELLS, editor-in-chief, Allure, “Gen X women, young for their age,” Los Angeles Times, Sept. 25, 2011The new grandparent“Peerents”New archetypesDemography’s Dead
9 CELEBRATING AGINGMANIFESTATIONS: Platforms that celebrate aging3 GENERATION GO
9 CELEBRATING AGINGMANIFESTATIONS: Embracing gray3 GENERATION GO
9 CELEBRATING AGINGMANIFESTATIONS: Embracing birthdays3 GENERATION GO
9 CELEBRATING AGING MANIFESTATIONS: Age March and “Glam-Mas” 3 GENERATION GO If 60 is the new 40, then GlamMa is the newIn 2009 Barbara Rose Brooker, author of a Grandma, a woman with abook on love and sex post-60, started AgeMarch, which organizes marches to sense of self and style.”celebrate aging. —UrbanDictionary.com
9 CELEBRATING AGINGMANIFESTATIONS: The Best Exotic Marigold Hotel”
9 CELEBRATING AGINGMANIFESTATIONS: Brands celebrating aging3 GENERATION GO
9 CELEBRATING AGINGMANIFESTATIONS: Brands celebrating aging (cont’d.)3 GENERATION GO
9 CELEBRATING AGINGWHAT IT MEANSWith a longer, healthier life ahead and fewer assumptions around what eachsuccessive decade means, people across the age spectrum will feel younger ingeneral and more positive about aging.Youth will certainly still carry a premium, but perceptions of what qualifies asyoung are shifting and appreciation for the benefits of experience and maturity isrising. Increasingly, we’ll see health, happiness and other key criteria as moreimportant than worrying about our age. For more people, birthdays will becomesomething to celebrate more than bemoan, bringing the possibility that they willhit their stride or begin an exciting new stage of life.The youngest cohorts will see aging in a different light than their predecessors astheir parents and grandparents alike remain relatively youthful in appearance,outlook and lifestyle. New views on aging will in turn drive new behaviors amongvarious age groups. For example, we’ll see greater kinship across age groups, withmore cross-generational connections and subsequently more age-blind marketingcampaigns.