W H I T E   P A P E R             DISRUPT     to connect to 21st century’s           Digital Zappers               Shombit...
definitely not be relevant any more. Let me“Grab                                                 take you through our psyc...
was big, but evolutionary. For example, you Connecting to Digital Zap                           will not fi nd a radical d...
Revolutionary impact                                 example, says “Smart has the brains, Stupid has                      ...
Tom Ford                                            Calvin Klein                                                     a new...
COMPROMISE                            GLOBAL CONSUMERISM TRAUMA                                                     Why br...
it could be disturbed. But even Chanel had           Laughing Cow among others.to bow to the Digital Zap generation. Their...
Shining’s market research techniques for 8 socio-behaviouralclustersIt’s socio-behavioural clusters that apply today as we...
This is the way Shining does research in uncommon                                    areas to unearth the shock of the new...
How do the 3 generational groups fit with the8 behavioural clusters?Digital Zappers supremely infl uence everything, so co...
In fact, when luxury brands advertise like massproducts, they lose their coveted worth.Every brand cannot attract every so...
In developed countries the consuming base is                     paucity in creative thinking in the digital world.small. ...
From one joint family structure to7 different living conditionsYoung couple                           Bachelors living alo...
The behavioural cluster statistics of India     Income group can range from Euro 80 (Rs. 5000) per month to any amount    ...
became the prevalent norm. Suddenly in the 21stConnect human micro detailed                          century, digital medi...
What do researchers have to                                                                    ...Just mine               ...
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Esomar global-conference


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"Disrupt to connect to 21century's Digital Zappers"
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Esomar global-conference

  1. 1. W H I T E P A P E R DISRUPT to connect to 21st century’s Digital Zappers Shombit Sengupta01 ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  2. 2. definitely not be relevant any more. Let me“Grab take you through our psycho-socio-behavioural discoveries that have led us to new codifications. the How should we grab the diverse world that’s presenting us nothing but the“shock of the new?” diverse ODYSSEY 2010 At Shining Consulting, our global interactions world” THE CHANGING FACE OF MARKET RESEARCH with different people for different brands have shown us that living in this disruptive century are 3 distinct generations in 8 socio-behaviouralDisruptive 21st century clusters:Are we ready for the totally newdeparture the 21st century’s digital We have identified theseerais bringing to human society? 8 socio-behavioural clusters: Low key Value seeker Simple living with quality life Gets involved only when a worth while payoff is seen Flamboyant CriticalInnovations in the 19th century had come about Exhibitionist to Perfectionist,every 20 years; today,we experience innovation grab attention and not easyevery 20 days, particularly via the digital mode, to satisfythroughout the world. In this innovation explosion,the role of psycho-socio diversity has takencentre stage. Novelty Sober seeker Goes in quiet Curious for efficiency the new Gizmo lover Techy Likes gadgets Goes for the which define digital mode him/her and goes of life and for differentiation embracesTo understand this diversity and measure technologyits impact on the 21st century market, we whole heartedlyhave found that the highly effective tools andmetrics we used in the 20th century to be quite These clusters were spun off from Digital Zapinadequate in today’s context. When even the but are common to the Compromise andRetroparameters to be researched have become generations as well. And they exist irrespective ofdrastically divergent, the old methods would income, age and geography.02 ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  3. 3. was big, but evolutionary. For example, you Connecting to Digital Zap will not fi nd a radical difference in the looks, Venturing into Paris at age 19 to fulfill my mechanism and functioning of the 19th century’s childhood dream of becoming an artist, I found mechanical gramophone with its horn and the a huge difference with other 19-year-olds 20th century’s electronic modern turntable with who were French, Italian, English, German, electronic advancement. Swiss, Belgian or American. That was in 1973, and as I was coming from a low profi le, poor refugee colony home in West Bengal, India, I was bound not to connect. But I later discovered that even among people of the same generation in Europe and America there was disconnect. I’ve read Winston Churchill mentions that it was not easy to call European and American youth of the Allied nations to take part in World War II. In contrast, the leaders of the enemy Axis powers had thoroughly impassioned their youth to fight for their new-found ideologies. So with careful communication the Allies managed to align their youth to go to war against the enemy. My business travels to different continents makes me realize today that the youth in every country have more or less the same understanding in how to live life. There is a coherency of the trend. This is the real globalization, the globalization of the mind. But But in the 21st century came the iPod, breaking management decisions in corporate houses every known system for operating a musical across the globe are often made by the Retro player. iPod and the MP3 players are disruptive generation followed by the Compromise in every sense, the change they’ve rushed in is generation. That’s why Digital Zap, born entirely revolutionary. after 1986, has a huge disconnect to many It’s an absolute and massive disruption in the industries today. A few exceptions w would be way of thinking, acting and behaving with digital Google, Apple, Nike, Microsoft and Cisco, technology. Convergence is the name of the companies that Digital Zap connects to. game now.3 Centuries: From change to The iPhone incorporates several industries &disruption and convergence functions; it’s a camera & photo album, a bank & data bank, post & telegraph offi ce, writing padTotal disruption & convergence in 21st & pen, audio & video player, calculator& alarmcentury Digital eras clock and much more. Do you know how to grabThe process of change from 19th century’s this diverse world of disruption & convergence inmechanical era to 20th century’s electronic era the 21st century? ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  4. 4. Revolutionary impact example, says “Smart has the brains, Stupid has the balls. Be stupid.” In one of their ads, a boyUsing the music player, let’s illustrate how almost tumbles over a bus window to kiss a girlinnovation came every 20 years in the 20th on the street. Dolce& Gabana shows a womancentury. From the tape recorder invention, on the floor, body arched, and 4 men aroundseveral years passed before the Walkman hit the her suggesting group sex. An Ungaro woman ismarket. In comparison, 21st century’s innovation sensually enjoying hedonistic pleasure with herevery 20 days is represented in newer andnewer versions of mobile phones, software and hand inside her dress. Tom Ford has two nudedigital products, among others. Even the fashion couples strewn on the floor; and Calvin Kleinindustry has experienced this century’s unsettling jeans portray an orgy as it is happening. Suchdetonation. Look at it, decade-wise from the distractions are pervading almost every aspect1950s to the 1990s, the flow of change was of life, and throughout the world. What washarmonious. considered appropriate to stay hidden yesterdayThen arrives the 21st century’s fashion is out in the open today.communication with a bang. The Diesel brand, forDiesel Dolce & Gabbana emanuel ungaro ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  5. 5. Tom Ford Calvin Klein a newspaper at home, Compromise uses theDigital Zap at the cusp Internet at offi ce and Zappers stay in touch withof the century an iPad while on the go. To communicate, RetroWhen the 1986 born Digital Zap reached the writes letters, Compromise phones and Zappersage of 5 in 1991, they were conscious of, text messages.and using, digital technology that had started The more you think, act and align with them, theoverwhelming the world. Digital waves were more you connect to the happenings in the world.the primary impact for even those born from Irrespective of whether they are spenders, Digital1980. That’s why I’m considering everyone Zappers are the real inflfl uencers for decisionbelow 30 to be Digital Zappers. Tomorrow there making for every purchase in the family. They aremay not be Compromise or Retro generations a new civilization of digital connectors; don’t everbecause Digital Zap will continue to drive future consider that they have any gap.generations. It may become Digital Zap Mature, The way the Baby Boomer generation hasDigital Zap Ripened and Digital Zap Youth. dominated the second part of the 20th century, Digital Zap is set to revolutionize the 21st century,Century storm dictating terms in every sphere.A century storm is what Digital Zap represents,theirs is not a generation change. Engulfed in21st century’s rapid change proliferating every RETROsocietal area, these Digital Zappers have noattachment to anything in any sustaining way.The Internet, mobile phones have democratizedpeople to people communication globally.Earliers real time continuous communicationwas a privilege of the few who could afford itand educated enough to use it. Today no cowis sacred; there are no barriers to reaching out,to finding information. Differences in attitudeare clearly visible: to get the news Retro reads Reads a newspaper Writes letters at home ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  6. 6. COMPROMISE GLOBAL CONSUMERISM TRAUMA Why brands fail to engage Zappers Making all business decisions today, Compromise and Retro generations continue to drive 20th century culture in the 21st century. Gets the news via Phones Internert at office DIGITAL ZAP Stays in touch with an Just texts messages iPad while on the goWhy are Digital Zappers not Like zapping TV channels, Digital Zappers areconnecting to most ads; is most comfortable with change, change and rapid change in every aspect of life. Their textthe problem the media or the messaging is phonetic, and giving vowels amessage? miss is accepted script today. The above 30s may fi nd it jarring, yet their mentality is to co-optDigital Zappers do not like advertisements. Digital Zapper trends because clearly, discreteThey like symbolic provocation. Advertising of numerical form is ruling this digital century that’sgeneral mass products today is still largely done become totally Zap driven.in 20th century style. Using new media does notmake much sense if the content is not relevant The establishment and its doctrines do not workto Digital Zap. Repetition of advertising with anymore today. Take the world of high fashion.the same message as the classic advertising Chanel, the French haute couture design housearchitecture irritates them. Digital Zappers would Coco Chanel founded in 1909 had maintainedrather love to see a single content with changing a classical tradition upto the 1990s. Chanel’smessages that provoke. rectangular shaped perfume container was so coveted that it was impossible to think ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  7. 7. it could be disturbed. But even Chanel had Laughing Cow among others.to bow to the Digital Zap generation. Their They may have very good quarter-to-quarterrecent perfume called Chance broke Chanel’s results, but do the brands keep up with theclassicism by havinga round bottle. breakthrough trends the 21st century’s DigitalTo contemporarize its brand, Chanel radically Zap is dazzling us with?changed its dresses, and now stitches jeans The brands can argue that they are sustaining some old value, but do the disruptive Digital Zappers connect to them? Digital Zap may require these products by necessity, but their aspirational attachment to these products is questionable.for Zap girls. Levis Strauss had popularizedthe cowboy logo for the jeans back pocket tosport, now Chanel’s “CC” logo also adorns backpockets of jeans. From archetypical French hautecouture to jeans is indeed a daring step. By doingthat Chanel has not reduced its brand value,rather it’s been extended to the youth.Industries that use disruption as a weapon instrategizing for brands, industrial products,retails or in corporate structure design, welcomethe “fresh, young” perspective as a point ofdifferentiation. That’s because such 21st century But cherishing nostalgia is a different subjectdisruptive strategies help their cash registers to altogether and always good. There are certainring. brands and products such as olive oil, whiskey,Although the century gap is a real, tremendous camembert cheese, or preserves that haveand visible phenomenon, it seems to have totally better value when they carry the deep-rooted,passed certain global brands by. These are traditional authenticity. People will always bebrands of mass daily usage such as Heinz, Coca nostalgic for gourmet or connoisseur items, I’mCola, Cadbury’s, Mr. Clean, Colgate, Evian and not questioning that at all. ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  8. 8. Shining’s market research techniques for 8 socio-behaviouralclustersIt’s socio-behavioural clusters that apply today as we at Shining Consulting haveidentified, and created a master research methodology for. Historically, socialstratification from feudal agrarian to socio-economic classifi cation followed anevolutionary process.But socio-behavioural clusters that defy all predictable segmentation parameters is therevolutionary way of researching to measure people’s attitudes, behaviour, motivationand aspiration in the 21st century.Using Shining’s proprietary tools to fi nd the 8 socio-behavioural clusters, we havestudied this phenomenon every year for the last 10 years and fi nd they are common tothe 3 generations.We have some non-conformist techniques too, such as suddenly calling for customerinteraction in a coffee shop or the marketplace, without any bias or preparation, tospontaneously identify different socio-behavioural clusters. Quantitatively we haveverified the existence and accuracy of such segregation. Ideation for finding an individual’s behavioural cluster LIFECYCLE* LIVELIHOOD** LIFESTYLE*** ASSOCIATION ASSOCIATION ASSOCIATION conomic condition covers lifecycle, livelihood & lifestyle Education covers lifecycle, livelihood & lifestyle Basic drink Telephone covers livelihood & lifestyle Food Automobile covers livelihood & lifestyle Sex PC / Laptop covers livelihood & lifestyle Financial security Transport covers livelihood & lifestyle Living shelter Entertainment Health Garments Hygienic habits Living style Women accessories © Copyright Shining * Lifecycle (Psychological) : Individual need, desire and action Men accessories ** Livelihood (Economic) : Connected to making a living Socialisation *** Lifestyle (Sociological) : Infl uence of society in living style Alcohol ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  9. 9. This is the way Shining does research in uncommon areas to unearth the shock of the newAnuradha researching in the retail store with Renee defining the latent trend in the Satchidananda observing rural indiashoppers store with shoppersAt the Apple store in Soho, New York, we study how the three generations get involved with digital technologyWe observe how even a woman who carries Louis Vuitton In Tokyo, we watch how techies with wi-fi access in front of abag interacts in Apple’s 5th Avenue, New York store large electronic store get engrossed in the digital worldInteracting with the children at a school gate in We even spend time in entertainment areas to We observe shopper behaviourGermany to understand their trendy desire evaluate behaviour of the three generations inside a Singapore mall ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  10. 10. How do the 3 generational groups fit with the8 behavioural clusters?Digital Zappers supremely infl uence everything, so connecting to them is crucial for the future. TheCompromise generation tries hard to follow Digital Zappers to be trendy and “with it” but don’t quiteget there as they are a bit “stuffy.” They also feel compelled to satisfy their seniors, so they are trulyCompromised in their attitude.The Retro generationis generally quite “stiff.”Their complaint is thattheir grandchildren havelost the human touch, theyare always equipped withear phones, in front ofcomputers, never talk evenon the mobile phone, theyjust send text messages.The open minded amongthe Retro would love to co-opt some infl uence of theDigital Zap, but this numberis very low. You may not find many Retros in the Flamboyant, Gizmo lover and Techy socio-behaviouralclusters.Is income a factor for audience segmentation?For any business, if you follow the traditional socio-economic stratifi cation of customers, you will notgo far today. That’s because the 8 socio-behavioural clusters are prevalent across all age groups andgenerations, all income groups and across Every brand cannot attract every socio-behavioural clusterall countries and cultural systems. Income Connects to Critical, Flamboyant, Noveltyis no longer a key factor for purchase of seeker, Techy and Gizmo lovermass products. Connects to Sober, Low key, Value seekerThe world is moving towards a situation and Criticalwhere, at any price point, there has to be Connects to Sober, Low key, Value seekercost, quality and aspiration in the selling and Criticalproposition. Today, even low cost productshave trendy aspects. Expensive luxury Swatch watch addresses all 8brands that low income groups cannot socio-behavioural clustersafford should not be advertised in massareas. A few brands corresponding to different clusters ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  11. 11. In fact, when luxury brands advertise like massproducts, they lose their coveted worth.Every brand cannot attract every socio-behaviour cluster. For a brand to address all the8 socio-behavioural clusters, it requires a hugemagnifying glass. It has to very clearly unearth thecustomer behavioural clusters and drive strategicplanning accordingly.There will be immense pressure from low costtrendy brands that is affordable by everybody.Nike for example would connect to the Critical, Flamboyant, Novelty seeker, Techy and Gizmo lovers.On the other hand Nivea and Nokia would address the Sober, Low key, Value seeker clusters. But thestrategy that Swatch watch has created in the West has been so brilliant that it enviably touches allbehavioural clusters. I am sure Swatch will follow the same path in developing countries too.Developed countries bulldoze per capita consumptionNicole is confused with multipleofferings in food benefit ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  12. 12. In developed countries the consuming base is paucity in creative thinking in the digital world.small. So customers are bulldozed by industry Digitalization is commoditizing every aspect offor increase in per capita consumption. Just business. If you take flat television sets, all thelook at how many types of product benefits the brands look more or less the same; so do DVDfood industry can offer, from functional food to players and microwave ovens.low salt, low fat, organic and sugar free among These industries are suffering lack ofmany others. Does this not confuse Nicole as a differentiation also because the thinking processcustomer? of Compromise and Retro generations is notIt is amazing that when technology is zipping connected to the Digital Zap mentality.change through so fast, there is absoluteNightmare of how to penetrate in developing countriesAn illustration using the India marketThe over-riding phenomenon in developing how to reach the billions in remote places.countries is how to achieve penetration Another challenge is to understand andfor a product or service. As population is cater to the vast cultural differences ofhuge in these countries but infrastructure customers at large.readiness generally poor, the nightmare isUnscanned open market, all unbranded products, high conversion Mall: Scanned market of branded products with low conversion ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  13. 13. From one joint family structure to7 different living conditionsYoung couple Bachelors living aloneNuclear family: Only husband working Bachelors living aloneJoint family Nuclear family: Retired couples Husband-wife working with childrenNeo-joint family Retired couples ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  14. 14. The behavioural cluster statistics of India Income group can range from Euro 80 (Rs. 5000) per month to any amount End-customer percentage in sample size of 1000. Tracking since 1999Family composition in India determines multiple things thatare very significant for business growthFamily size cues the quanity / size of It gives an idea of what products tothe product bundle as special offersIt clarifies SKU size for efficient supply It helps to maximize space at he retailchain management as per the catchment requirementIt indicates the price band and It provides high proximity to differentsharpens the inventory family size buyers and the retailer ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  15. 15. became the prevalent norm. Suddenly in the 21stConnect human micro detailed century, digital media has spread rampantly andbehaviour to business impacted to have globalization become the order of the day.In the 19th century’s geo-political defi nition,the world was divided into developed countries People and businesses are traversing aroundand their many colonies across the globe. The the world. This great, global social cauldron hassocial stratifi cation was feudal, agrarian classes stretched its tentacles to almost every country.in society. The 20th century saw developed The result is that people of all classes andcountries releasing their hold over others whom income groups have developed attitude andthey called third world countries and later behavioural stances. So business and researchchanged semantics toemerging countries. agencies can no longer gauge a person’s spending capacity based on the old parametersFor conducting market research to understand of income, education or geography.customers, socio-economic classifi cation Grab the diverse world resumeYou can’t use the same researchdough to create different pastashapes ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999
  16. 16. What do researchers have to ...Just mine psycho-sociodo differently because of shock of the newsocio-behavioural clusters?esearchers should always have a moviecamera in the pocket, and observe and absorbhow customers act in different occasions. Incustomer interactions, researchers have to actas though they are stupid. This way they canget the customers to talk and explain at lengthand extract the real essence, instead of justconducting preconceived, structured research.At Shining Consulting we have defi ned researchto be in 3 steps: Exploratory, Orientation andConvergence. Experiential research with anyproduct or service very strongly gives the socio- ...Global window,behavioural dimension. I have very often seenresearchers go to the market for validation with local mind,very strong preparation. So before customers latent desiretalk, they already establish what they want tofind. This is not right. Research stimuli have to be visual and rivetingLet me reiterate that without delving into the to extract the latent, and not just be marketingpsycho-socio-behavioural context, the diverse blah, blah... Just remember, the shock of the newworld of the 21st century will certainly pass is here to stay with us as our constant, everyus by. With a global mindframe we need to moment companion in the 21st century.achieve local proximity to deliver extra benefi t.Research cannot be like the wheat pasta doughthat you can put in a machine to get a variety ofdifferent shapes of pasta or noodles as per your © Copyright of all logos and images belong to the respective Cos.expectation. Shining Consulting Pvt., Ltd. 17, Visveswariya Industrial Area, Tel : 91-80-4127 6999 / 81 Mahadevapura 2nd Stage, Fax : 91-80-4127 6990 Bengaluru - 560 048, India. Email: shining@shiningconsulting.com www.shiningconsulting.com ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999