2015 Earned Brand India

Innovation and the
Earned Brand
India

Consumers are embracing innovation
at a faster pace than ever before…
The Earned Brand | Edelman 2015 | pg 2

And yet they feel the pace of business
innovation is too fast
Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today and select the
response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, India. (2015 Edelman Trust Barometer)
The pace of development and change in
business and industry in India today is…
11%
TOO FAST
JUST RIGHT
12% 77%
TOO SLOW

And what can the
rest of us learn
from this?
Why the contradiction?
How are today’s
fastest-growing
brands convincing
consumers to accept
the risks that come
with innovation?
What are
consumers’
real feelings
about innovation?

What is innovation?
A re-imagination of categories,
products, services, operations,
models, design, etc. that
create more value, for the brand
and for consumers

The Earned Brand Methodology
Timing
April – May 2015
Quantitative Online Survey
10 countries: U.S., Mexico,
Brazil, France, Germany, U.K.,
China, Japan, India, Australia
10,000 respondents, nationally
representative of age, gender,
and region based on most
recent country status data
Mobile Diaries
25 millennials, with them on their
mobiles, for 2 weeks, in Brazil,
U.K., India, China and the U.S.
A global survey of
consumer attitudes
toward brand innovation

People believe in the
promise of innovation.
Insight 1

Q5P1: Please select the statement from each group that best represents how you feel. (Innovation is just an overused
term, it’s not leading to anything) vs. (Innovation is essential for us today and it’s helping us to progress). Q5P4: Please
select the statement from each group that best represents how you feel. (Innovation is making us more and more like
robots) vs. (Innovation is opening the human spirit). 10-country global total and in India.
Percent who agreed with each statement:
Innovation inspires people
92%
innovation opens
the human spirit
innovation is essential
and it’s helping us
to progress
77%
90%
77%

And they believe that business has
the biggest role to find the next big thing
Q15. Where do you think the next big thing will come from? In India.
Consumers in India
believe the next big
thing will come from…
BUSINESS
44%
INDIVIDUALS/PEOPLE
LIKE ME
84%
43%
ACADEMICS/UNIVERSITIES

They believe that brand
innovation should have big
goals with societal impact
Q14. What do you think the role of innovation is for brands today and in the future? (in the future) 10-country global total and in India.
to
improve
society
to push our
thinking as
a society
69% 66%63%
agree that brand innovation
needs to impact society
(one or more of the following)
in9 10
66%
62% 65%
to let us be one
step ahead of
other countries

64% 62%
24%
34%
23%
29%
50%
38% 37%
42%
26%
42%
Technology Mobile Energy Healthcare Food and beverage Education
But they believe that innovation should come from
industry sectors beyond technology and mobile
Q65: Thinking more specifically about the innovation in the products and services you use throughout your life, what industries do you see
the most innovation in TODAY? Q66: … what industries do you want to see innovation in TOMORROW? In India.
Percent of India’s consumers who say they see innovation coming from each
industry sector today, and who want to see it from each sector tomorrow
INNOVATION GAP
13
8
13
3
INNOVATION TODAY INNOVATION TOMORROW
WANT LESS TOMORROW WANT MORE TOMORROW

And they question your motives
66%
70%
65%
69%
67%
61%
65% 65%
67%
62%
65%
Global Australia U.K. U.S. Japan France Germany Brazil China India Mexico
Q14. What do you think the role of innovation is for brands today and in the future? (today) In India.
Percent who say the role of
innovation for brands today
is “to make more money for
the company”:
consumers believe brands
are innovating to make more
money for the company
in2 3

Insight 2
Consumer acceptance
of brand innovation
cannot be bought.
It must be earned.

The stakes:
Because of their concerns, they’re not buying
Q27. Thinking about the below, please indicate which of the following you feel is happening in the world today. … IMPACT ON PURCHASING
DECISION 1 = Has no impact on what I buy … 4 = Makes me not want to buy something. In India.
say they will not buy
because of their concerns
Percent of India’s consumers who feel that each is happening in the world today,
and percent who say their concerns make them not want to buy something:
90%
Privacy
issues
Being
always on
Security Environment

1 in 2 have privacy concerns
Privacy concerns are especially strong in
Germany, the U.K., the U.S. and Australia.
66%
74%
61%
58% 56%
76%
55%
66% 64%
71%
75%
Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.
Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total
and in India
Percent who feel that each is happening in the world today –
privacy issues:
Privacy
issues
55%

2 in 5 concerned about having to be always on
Germany and Brazil are most concerned; Japan and China are less so.
50%
54%
65%
36%
53%
63%
41%
29%
57%
46%
53%
and in India
having to be always on:
Being
always on
41%

Nearly half have security concerns
Security concerns are highest in Japan and the
U.S., and less of an issue in China.
54%
69%
51%
33%
49%
44% 44%
75%
41%
64%
71%
and in India.
your security being compromised:
Security
44%

And the majority have concerns
about the impact on the environment
Environmental concerns are global,
but strongest in Europe and Latin America.
58%
61% 62%
52%
62%
66%
54% 52%
62%
54%
51%
and in India
impact on the environment:
Impact on
environment
54%

Insight 3
While the promise of
innovation inspires,
people first need
to be reassured.

Consumers are twice as likely to want to be
reassured than inspired by a brand
Q35: When a brand tells me about something, I
want it to… “Reassure me of quality,” “Inspire me”
10-country global total.
people want to be
REASSURED
in2 3
people want to be
INSPIRED
in1 3

We may be innovating,
but we are failing them as marketers
Percent who feel that brands have changed a lot, and proportion who
feel that this is the right or the wrong direction:
say brands are not moving
in the right direction in how
they communicate
in2 3
Q20: Thinking about change in the past 5 years, how do you feel the [ … ] industry has evolved in relation to the following
factors: How brands in this sector…(communicate with me) / (listen to me) // (moving in wrong direction) 10-country global total.

They feel like brands are shouting at them
What brands say doesn’t feel real
Q21: Please indicate how much you agree or disagree with the following statements. (I’m getting bored/frustrated by constantly being told I
need to upgrade/update the products I already have.) (Top 2 box) 10-country global total and in India. Q8P1: The way magazines, the
internet, advertising, can all enhance photos… (Makes me more inspired than ever before by what I see) vs. (Makes me wonder what is real,
and what I should believe) 10-country global total and in India.
57%
because of photo manipulations
in advertisements and online
they don’t know what to believe
are bored/frustrated
by constantly being told
they need to upgrade/update
60%
56%
54%

Insight 4
“I rely on my peers to
reassure me. Because
their experience is
my evidence.”

We’ve always known that peers provide recommendations,
but today peers also help convert purchasers
Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and
services you purchase, what impact do they have on you? 10-country global total and in India.
The impact of online/offline conversations about
brands with friends and other people like me:
Build inspiration
Push consideration
Moment
of
Truth
16%
17%
25%
27%
29%
37%
44%
45%
They give me a sense of community
They get me
They push me to try new things
They suggest products/services
They make me trust the brand more
They help me overcome concerns
They help me make decisions
They warn me about the risks
26%
21%
30%
32%
38%
50%
50%
41%

The channels consumers rely on to be reassured are
peer-to-peer, rather than brand-to-consumer
Mobile Diaries
When millennials want to learn about brand
innovation, their go-to channels are peer-to-
peer: Skype, Whatsapp, Facebook and SMS.
Behavioral Focus Groups
Biometric testing showed that peer-to-peer
channels (Twitter, blog posts, word of mouth)
had a greater impact, by a 6 to 1 margin, on
changing opinions about the risks of new
innovations than advertisements.
Mobile diaries with 25 millennials in 5 countries. Behavioral focus groups with 8 millennials in New
York and 8 millennials in London.

Brands win if they power the peer conversation
Percent who agree with each statement:
“Our unique asset is
our host community.”
Nathan Blecharczyk,
founder of AirBnB
“Our next innovation is
introducing a peer to peer
platform so that our private
car owners in Europe can
share their cars.”
Tina Muller, CMO, Opel
Q36. How much do you agree or disagree with the following statements? 10-country global
total and in India.
67%
I trust a brand more if
it encourages me and
other customers to
review its products
and services
I trust a brand more
if I find it easy to
review its products
and services
64%
76%
76%
To enable peer voices, brands should aim to enhance horizontal
peer-to-peer conversations by building strong advocacy programs
with existing brand lovers and fans.

Insight 5
Messaging alone
doesn’t work.
It’s about how your
brand behaves.

Two-thirds of consumers are undecided about
innovation. What do they need from brands?
Last mover First mover
8% 15%
Percent of respondents who fall into each
consumer innovation typology:
Methodology: Statistical analysis of consumer groupings based on their attitudes toward brand innovation showed that 66% of
consumers are open to innovation—but have concerns that need to be addressed before they will buy. They also have specific
expectations for how brands must behave to address those concerns. Other consumers were either “first movers” (15%), “last
movers” (8%), or resistant to innovation (11%).
66%
Undecided Consumers

What undecided consumers need
from brands when it comes to innovation
Reassure me about
my personal concerns
Inspire me by doing
something new and different
Show me how I can
participate in
your brand
Reassure me about
my societal concerns
Statistical analysis of consumer groupings based on their
attitudes to brand innovation, and their risk concerns.
Source: mobile diaries, qualitative
groups and quantitative segmentation

The 4 brand behaviors
that address consumer needs around innovation:
Have a
Purpose
Inform
and Educate
Make
your Mark
Live your
Character
Reassure me about my
personal concerns
Inspire me by
doing something
new and different
Show me how I
can participate
in your brand
Reassure me about my
societal concerns
Brand
Behaviors

Inform
and Educate
inform transparently so that
you can educate consumers
and help them make choices
Brand behaviors:
• Explain your motive for innovating.
• Address concerns about the social and environmental
impacts.
• Ensure your consumers are aware of all innovations
which positively impact society and environment.
• Engage and educate consumers across different
channels and platforms.
Consumer need:
I am empowered by
information. Give me all
the details and let me go
as deep as I want.
To reassure me about my
personal concerns

Have a
Purpose
operate with purpose
to show how you fit into
the bigger picture and
are an active participant
in society
Consumer need:
I believe in progress—
but not at the cost of
hurting my community or
compromising my values.
Brand behavior:
• Be authentic.
• Show that you value human interaction and have
respect for tradition and heritage.
• As far as possible ensure brand communications is
pivoted around positive social change.
To reassure me about my
societal concerns

Make
your Mark
make your mark by
doing something unique
or differentiating that is
worthy of attention
Consumer need:
I like to be inspired by new
ideas—as long as they
really are new and different.
Let’s solve a problem in a
cool, creative way!
Brand behaviors:
• Show how you stand out from the crowd.
• Offer engaging content that is timely, has resonance,
and is entertaining.
• Add value beyond your product and service.
To inspire me by doing
something new and different

Live your
Character
live with character that is
true to your brand and has
a personality that consumers
can buy into
Consumer need:
Brands can help me
express my identity. I
want to look smart,
creative and connected.
Brand behaviors:
• Be transparent when it comes to consumer privacy
and sharing of data.
• Offer inspirational, exciting brand experiences in
which consumers can participate.
And show me how I can
participate in your brand

Brands and innovation:
A new model of marketing in action
Have a
Purpose
Inform
and Educate
Make
your Mark
Live your
Character
Statistical analysis of consumer groupings based on their
attitudes to brand innovation, and their risk concerns.
Brand
Behaviors

The Earned Brand
The Earned Brand’s story is not simply told, it is demonstrated and
experienced, and to do that, brands can’t operate with a style guide
alone.
The Earned Brand has a world view and a belief system; a purpose
and reason for being – one that defines not just the communications,
but how the brands behave online, off, and in all contexts.
An expressed set of values informs what products are made, what
language is used, how customers are treated, and ultimately the
legacy the brand leaves in the communities it serves.
Earned Brands empower conversations among peers.

Innovation and the Earned Brand
People believe
in the promise
of innovation.
Consumer
acceptance of
brand innovation
cannot be bought.
It must be earned.
While the promise
of innovation
inspires, people
first need to
be reassured.
“I rely on my
peers to
reassure me.
Because their
experience is
my evidence.”
Messaging alone
doesn’t work.
It’s about how
your brand
behaves.
1 2 3 4 5

Innovation and the
Earned Brand
Thank you.

2015 Earned Brand India

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