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JWT AnxietyIndex: Argentina (January 2010)
 

JWT AnxietyIndex: Argentina (January 2010)

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The JWT AnxietyIndex was launched in February 2003 during the run-up to the war in Iraq. It tracks the level and intensity of consumer anxiety and the drivers of that anxiety. It examines safety and ...

The JWT AnxietyIndex was launched in February 2003 during the run-up to the war in Iraq. It tracks the level and intensity of consumer anxiety and the drivers of that anxiety. It examines safety and security concerns—the threat of terrorism, potential and current military hostilities, crime—as well as economic worries, such as the cost of health care, the cost of living and job security. The AnxietyIndex is also designed to discover consumer insights that will help marketers formulate strategies during times of high or low anxiety.

A quantitative survey was conducted using JWT's SONAR, our proprietary online research tool. In January 2010, 328 adults aged 18-59, living in Argentina were surveyed. The data was weighted by age and gender.

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    JWT AnxietyIndex: Argentina (January 2010) JWT AnxietyIndex: Argentina (January 2010) Presentation Transcript

    • ANXIETYINDEX ARGENTINA JANUARY 2010
    • AGENDA Background ..............................................................................................................3 Methodology ............................................................................................................5 What’s making people anxious today? ........................................................6 A closer look at Argentina ..............................................................................17 The recession’s impact on Argentina vs. other countries................................18 The recession’s impact on lifestyle ................................................................21 Media and the recession ................................................................................30 Shopping behavior and the recession ............................................................36 Looking to the future: The next generation ....................................................39 In Conclusion ........................................................................................................422
    • BACKGROUND The JWT AnxietyIndex was launched in February 2003 during the run-up to the war in Iraq. It tracks the level and intensity of consumer anxiety and the drivers of that anxiety. It examines safety and security concerns—the threat of terrorism, potential and current military hostilities, crime—as well as economic worries, such as the cost of health care, the cost of living and job security. The AnxietyIndex is also designed to discover consumer insights that will help marketers formulate strategies during times of high or low anxiety.3
    • BACKGROUND (CONT’D.) Argentina - GDP Percent Change 15 8.7 9.2 10 8.3 8.5 8.7 6.8 5 0 -2.5 % Change -5 -10 2004 2005 2006 2007 2008 2009 2010 (est.) JWT launched the baseline study for AnxietyIndex in Argentina in 2010. Following the global economic downturn, forecasts predict a recession for Argentina in 2010. Source: CIA World Fact Book4
    • METHODOLOGY Quantitative survey conducted by JWT SONARTM, our proprietary online research tool Data collected January 2010 328 adults aged 18-59, living in Argentina Data weighted by age and gender5
    • WHAT’S MAKING PEOPLE ANXIOUS TODAY?6
    • Overall anxiety levels in Argentina are high—among the highest in the world ... 100 10 16 18 90 21 22 22 26 28 30 80 34 35 41 42 45 70 58 60 65 50 90 84 82 40 79 78 78 74 72 70 30 66 65 59 58 55 20 42 35 10 0 Japan Russia Saudi Argentina Mexico UAE India U.S. Spain Brazil U.K. Australia Colombia Canada France China Arabia % Nervous/Anxious % Not Nervous/Anxious Brazil: January 2009 India, China: April-May 2009 Russia, Spain, Japan: March 2009 U.S., U.K., Canada, Australia, France: September 2009 Saudi Arabia, UAE: October 2009 Argentina, Colombia, Mexico: January 2010 Overall, given everything that is going on in the world, the country, and your family’s life,7 how nervous or anxious would you say you currently are?
    • ... with a full quarter of respondents saying they are “very nervous/anxious.” 50 % Very Nervous/Anxious 40 30 20 38 30 28 26 10 25 25 21 18 16 12 10 9 8 8 7 6 0 Russia India Saudi UAE Argentina Japan Mexico Brazil U.S. Spain France U.K. Australia CanadaColombia China Arabia Brazil: January 2009 India, China: April-May 2009 Russia, Spain, Japan: March 2009 U.S., U.K., Canada, Australia, France: September 2009 Saudi Arabia, UAE: October 2009 Argentina, Colombia, Mexico: January 2010 Overall, given everything that is going on in the world, the country, and your family’s life,8 how nervous or anxious would you say you currently are?
    • ANXIETYINDEX MAP SAFETY/SECURITY ECONOMIC Political Leadership 900 Threat of State of Economy Terrorism FURTHER 600 FURTHER FROM FROM “HOME” “HOME” 300 Potential Military Cost of Health Hostilities Care 0 CLOSER CLOSER TO TO “HOME” Current Military Cost of Living “HOME” Hostilities Crime Job Security SAFETY/SECURITY ECONOMIC9
    • Financial security and personal safety stand out as anxieties, while wars and terrorism are further from the collective consciousness. Political Leadership Argentina 1000 Global average 900 Threat of 800 State of Economy Terrorism 700 600 500 517 400 235 300 200 Potential Military 52 Cost of Hostilities 100 228 Health Care 0 74 81 298 Current Military Cost of Living Hostilities 985 575 Crime Job Security AnxietyIndex: % who are nervous or anxious/% who are not10
    • Anxiety over personal finances is pronouced even compared with other LATAM markets we studied. Political Leadership Argentina 1000 LATAM* average 900 Threat of 800 State of Economy Terrorism 700 600 500 517 400 235 300 200 Potential Military 52 Cost of Hostilities 100 228 Health Care 0 74 81 298 Current Military Cost of Living Hostilities 985 575 Crime Job Security AnxietyIndex: % who are nervous or anxious/% who are not *Brazil, Argentina, Colombia, Mexico11
    • In addition to current concerns like food prices and national infrastructure, Argentines also worry about the future, specifically natural disasters and global warming. The War in Iraq Argentina Impact of Global The War in Global average Warming 800 Afghanistan Natural Disasters 600 The Housing Market 360 400 Safety of the 296 49 Gasoline Prices Food Supply 200 43 103 112 156 35 0 Quality of Products Imported 193 Food Prices 49 from China 84 784 275 367 The Government’s Unemployment Rates Budget Deficit The State of the Bank Failures National Infrastructure The Stock Market AnxietyIndex: % who are nervous or anxious/% who are not12
    • Argentina shares the same specific concerns as LATAM in general, although Argentines have heightened anxiety around food prices and infrastructure. The War in Iraq Argentina The War in LATAM* average Corruption 800 Afghanistan Impact of Global 600 The Housing Warming Market 495 400 360 Natural Disasters 200 Gasoline Prices 49 43 103 296 156 0 Safety of the 112 Food Prices Food Supply 35 49 84 784 193 367 Quality of 275 Products Imported Unemployment Rates from China The Government’s Budget Deficit Bank Failures The State of the The Stock Market National Infrastructure AnxietyIndex: % who are nervous or anxious/% who are not *Brazil, Argentina, Colombia, Mexico13
    • In general, Argentines are fairly pessimistic about the prospect of positive change in the near term. WORSE BETTER Safety of the food supply -25 1 The housing market Argentina -19 Global average -3 The stock market -15 More optimistic 2 Bank failures More pessimistic 0 1 Unemployment rates -35 -27 Gasoline prices -67 -34 Food prices -72 -35 The government’s budget deficit -45 -29 % who expect it will get “better” minus % who expect it will get “worse” in the next six months And over the next six months, do you expect that each of the following will get better, stay the same or get worse?14
    • Likely because people are still feeling the sting of the economic downturn … Intensity of Personal Impact from Tough Economic Times 33 47 20 1 2 3 4 5 6 7 8 9 10 Haven’t Have impacted impacted me at all me a great deal No Impact Great Impact % On a scale of 1-10, where 1 means tough economic times haven’t impacted me personally at all and 10 means tough15 economic times have impacted me personally a great deal, how would you rate yourself?
    • ... though many believe they have fared better than their countrymen. Intensity of Impact from Tough Economic Times Impact on Argentina Impact on me = 47 Impact on Me Impact on Argentina = 67 1 2 3 4 5 6 7 8 9 10 Haven’t Have impacted impacted me at all me a great deal No Impact Great Impact % How would you rate the impact of the recession on your country?16
    • A CLOSER LOOK AT ARGENTINA17
    • THE RECESSION’S IMPACT ON ARGENTINA VS. OTHER COUNTRIES18
    • Most think the recession has affected Argentina to about the same degree as other countries in the region. Impact of Recession on Argentina vs. Other Latin American Countries 70 63 60 50 40 30 20 19 18 10 0 My country has been My country has been My country has been LESS MORE affected than other affected ABOUT THE SAME affected than other Latin Latin American countries as other Latin American countries American countries % Thinking about the effect of the global economic downturn on your country, do you think your country has been affected more, less, or about the same compared to other Latin American countries?19
    • Argentines are split on how the country has fared compared wealthier countries. Impact of Recession on Argentina vs. Richer Countries 70 60 50 40 36 32 32 30 20 10 0 My country has been My country has been My country has been LESS MORE affected than affected ABOUT THE SAME affected than richer countries as richer countries richer countries % Thinking about the effect of the global economic downturn on your country, do you think your country has been affected20 more, less, or about the same compared to richer countries?
    • THE RECESSION’S IMPACT ON LIFESTYLE21
    • Argentines consider ivory-tower politicians, class inequalities, crime and corruption as the primary social impacts of the recession. % who agree Politicians in my country are out of touch with how the average person is being affected by the 61 global economic downturn Government corruption in my country is as bad as it has ever been 58 I’m worried that crime in my neighborhood will increase as people fall on hard times 58 I worry that the global economic downturn is widening the economic gap between the rich 58 and the poor in my country My social class is being dealt an unfair blow because of this global economic downturn 45 I have started to notice that the values in my country have changed a bit as a result of the 32 global economic downturn The economic crisis has brought me closer to my friends and family 13 The economic crisis has distanced me from my friends and family 8 % How much do you agree or disagree with each of the following statements?22
    • Behavior-wise, people are retrenching to their homes ... Changes in Social Behavior as a Result of the Economic Downturn 2 Going to concerts/theatre 36 62 3 Going out to the movies 36 61 2 Going out to clubs, bars 38 60 3 Going out to eat 38 59 2 Going out shopping 44 54 2 Going out to parties/events 44 More 54 Same 44 Less Spending time at home 45 11 % Some people have told us that recently they have made some changes in how they are spending their time. Looking at the list of activities below, are you doing each more often, less often, or about the same amount as you did before the global economic downturn?23
    • ... especially women. % Doing Activity LESS by Gender 66 Going to concerts/theatre 59 64 Going out to the movies 57 69 Going out to clubs, bars 51 68 Going out to eat 49 63 Going out shopping 45 62 Going out to parties/events Women 45 Men % Some people have told us that recently they have made some changes in how they are spending their time. Looking at the list of activities below, are you doing each more often, less often, or about the same amount as you did before the global economic downturn?24
    • As one might expect, people are spending more time at home primarily to cut back on spending. Why People Are Spending MORE Time at Home To cut back on spending 80 Because of crime in my neighborhood 31 I want to spend more time with my family 24 Because most of my friends are 23 There seems to be less going on (parties, concerts, etc.) 12 I improved my home entertainment/bought new items for home entertainment 2 Other 10 % You mentioned that you have been spending more time at home recently. What are the reasons you have been spending more time at home?25
    • Crime is a prime driver of anxiety ... How concerned are you about crime in your neighborhood? 70 84 60 52 50 40 32 30 16 20 14 10 2 0 Very Somewhat Not very Not at all concerned concerned concerned concerned % Now, we’d like to talk to you about crime in your neighborhood. How concerned are you about crime in your neighborhood?26
    • ... and appears to be tied to the downturn, as anxiety related to crime has risen steeply ... How has your concern about crime changed over the past year? 80 70 68 60 50 40 31 30 20 10 1 0 Increased Stayed the Same Decreased % Thinking about the past year, has your concern about crime in your neighborhood increased, decreased, or stayed the same?27
    • ... impacting the daily lives of many, especially women. Has your routine changed due to concerns about crime? 80 70 Women Men 63 60 55 50 45 40 37 30 20 10 0 Yes No % Have you changed your routine at all due to your concern about the crime in your neighborhood?28
    • People have adopted coping mechanisms impacting various areas of their lives, from going out less often to showing less bling to shopping in different areas/stores. Has your routine changed due to concerns about crime? Going out less often than I used to 61 47 Not wearing certain pieces of clothing or 52 accessories so I don’t attract attention 51 Not going out at night 57 36 Choosing to shop in different areas/stores 45 41 Making sure that when I am out, I am not alone 50 36 Choosing different methods of transportation 47 20 Buying fewer luxury items 21 29 Women Entertaining myself and friends at home so I 16 Men don’t have to go out as much 11 Other 11 9 % Among those who have changed their routine due to concerns about crime And how or what have you changed?29
    • MEDIA AND THE RECESSION30
    • As in most markets, people understand the downturn as much as it affects them but don’t possess an in-depth understanding. Knowledge of the Global Economic Downturn 60 52 50 44 40 30 20 10 4 0 0 I know a lot I know a fair I’ve heard of it, I’ve never about it amount about it but that’s about it heard of it % How much would you say you know about the global economic downturn?31
    • Argentines get their news through several sources, primarily TV and the Web ... % of people who use source for news at least once a day 100 90 87 80 76 70 60 57 50 46 40 30 20 10 0 TV Online Radio Newspaper % About how often, if at all, do you get your current news and information from each of the following?32
    • ... which have been a source of information about the downturn, especially among men. % of people who saw news about the downturn through their usual news and information sources 100 90 Women 85 Men 80 75 70 60 50 40 30 25 20 15 10 0 Yes No % Have you watched/read/heard reports about the global economic downturn from your usual news and information sources?33
    • Most Argentines feel the media has covered the downturn in the right proportion. If anything, there’s been less coverage than they’d like ... Has the media coverage of the downturn been ...? 80 70 60 60 50 40 30 29 20 11 10 0 Too Little Right Amount Too Much % And do you think the media has been giving reports about the global economic downturn too much, too little, or just enough coverage?34
    • ... perhaps that’s why most Argentines were unaware of reports that LATAM will enter a recession this year. Awareness of reports that Latin America will enter a recession in 2010 80 70 59 60 50 41 40 30 20 10 0 Yes No % Are you aware of the recent reports that Latin America will enter a recession in 2010?35
    • SHOPPING BEHAVIOR AND THE RECESSION36
    • In the past year, most people have changed their behavior in response to the global downturn—though these steps are more passive than active ... Actions taken as a result of the global downturn Paying closer attention to prices while I’m shopping 69 More actively looking for items on sale 69 Doing more comparison shopping to make sure I get the best price 62 Buying only when I am close to running 54 out of something Shopping more at discount or less expensive stores 45 Switching to lower priced brands 43 Buying more store brands/private label brands 36 Buying smaller amounts of items, more often 26 Using more coupons 22 Buying more in bulk 13 I haven’t changed my spending habits 11 as a result of the recession % Now, we would like to talk to you about your shopping over the past year. Please take a moment and think about how your spending habits have or have not changed over the past year when it comes to what you buy for your household (i.e., groceries, supplies, etc.). Which of the following, if any, have you begun to do as a result of the global economic downturn?37
    • ... and defensive recessionary behavior seems yet to have gripped Argentines. % who agree strongly I have started to cut back on things I don’t need 40 I worry that because of the global economic downturn I won’t be able to attain the lifestyle I want 34 I have noticed my friends have cut back in their spending habits 28 I worry that because of the global economic downturn 27 I won’t be able to keep up the lifestyle I am used to I haven’t personally felt the effects of the recession but have modified my spending habits just in case 16 The recession hasn’t really changed what I do in my everyday life 13 % How much do you agree or disagree with each of the following statements?38
    • LOOKING TO THE FUTURE: THE NEXT GENERATION39
    • While a majority of Argentines are generally anxious about the world their children and their children’s children will inherit ... % of people anxious about themselves vs. anxious about the future for their children/grandchildren 100 90 90 80 79 70 60 50 43 40 30 25 20 10 0 Anxious about Anxious about Very Anxious about Very Anxious about themselves their children/ themselves their children/ grandchildren grandchildren % Among those who have children Given everything that is going on in the world, the country, and your family’s life, how nervous or anxious would you say you are about the world your child(ren) or grandchildren will inherit?40
    • ... which tends to manifest in financial concerns. % agreeing strongly or somewhat I worry about the effect this economy will have on the ability of my child(ren) to find a good job 79 I worry about my ability to afford the type of education 75 I’d like for my child(ren) I worry about my retirement funds and that I may 69 someday have to rely on my child(ren) for help This is a good lesson for my child(ren) about living 49 within your means I’ve lived through recessions before, and so did my parents—my child(ren) will be just fine 46 The schools are doing a good job of teaching my 27 child(ren) about the recession % Among those who have children How much do you agree or disagree with each of the following statements?41
    • IN CONCLUSION42
    • IN CONCLUSION Argentinean consumers are accustomed to economic turmoil (inflation, recession, etc.) and have lived with various forms of economic crisis for decades. They are adaptable, expanding and shrinking their spending in accordance with the times. This is why the main driver of anxiety is the state of the economy, specifically the uncertain future that people constantly face. Within the economy, the most relevant issue is inflation, which causes a day-to-day rise in the cost of living. Argentina, which is not experiencing the same recession as most of the world, has been grappling with permanent price fluctuation under the ghost of inflation since the 1970s.43
    • IN CONCLUSION (Cont’d.) The other important driver of anxiety is concern about security and crime. The media is stoking perceptions that crime is increasing and that the country’s economic future is uncertain. The biggest media owners are using their popular newspapers to wage a battle against the administration because of political and economic differences. So coverage of these issues tends to exaggerate the facts in order to achieve greater political opposition.44
    • IN CONCLUSION (Cont’d.) Argentina is going through a credibility crisis. Since the last serious social, political and economic crisis, in 2001, Argentines have suffered a deep lack of credibility. The current administration is distrusted because of how it carries out decisions and accusations of corruption. Leadership is weakening because of a general perception of politicians as corrupt and out of touch with society’s needs. The high level of anxiety has resulted in widespread social tension and aggressiveness in the streets.45
    • IN CONCLUSION (Cont’d.) As Argentine consumers are accustomed to economic difficulties, they don’t consider the global downturn a relevant issue. They know about it, but local problems are more meaningful to them.46
    • IN CONCLUSION (Cont’d.) This gloomy picture provides brands an opportunity to offer optimistic messages and a positive brand experience, standing out by counteracting the negativity dominating Argentinean society. People are looking to slow down and enjoy life. Brands can play an important role by helping people who are seeking balance and harmony.47
    • IN CONCLUSION (Cont’d.) Walmart and Kraft Royal are two brands that are bringing some fresh air by communicating from a positive point of view. Walmart: “Save money. Live better” The economic crisis has led to a waning belief in the idea of saving money—people don’t believe it’s really possible to save much. As a consequence, people feel that having a happy life with friends and family is more important than being materialistic and money-oriented. But the “Save money. Live better” proposal tells customers that by saving money, they will have a more enjoyable life.48
    • IN CONCLUSION (Cont’d.) Kraft Royal: “Nourish their happiness” The target is the modern mother between 25 and 35. The brand is positioned as a way for mothers to be both responsible/caring and fun. “Nourish their happiness” tells mothers they can give their kids a nutritious dessert that they will love; and it’s both a cheap and simple option (it comes ready-made), perfect for a busy mother on a budget.49
    • THANK YOUMark Truss Alexandra Suarez Ann M. MackDirector of Brand Intelligence Market Research Director Director of TrendspottingJWT Worldwide JWT Latin America JWT Worldwidemark.truss@jwt.com alexandra.suarez@jwt.com ann.mack@jwt.com www.AnxietyIndex.com (c) 2010 J. Walter Thompson Company. All Rights Reserved.