Solvay Brussels School of Economics - Ho Chi Min City - Conference 18th of july 2019 - Future of Marketing: meaningful and hypertargeted - Hugues Rey

1. MEANINGFUL
AND
HYPER-PERSONALIZATION:
THE FUTURE OF MARKETING
HUGUES L.REY
HCMC – JULY 2019

2. rất vui được gặp bạn
Nice to meet you !
Ø1968 – Brussels – Married to Geneviève
ØSolvay Business School (1992)
ØCEO Havas Group Media Belgium (2010)
Ø+25 years of experience in communication agencies (WPP, IPG, Havas)
ØActive in digital marketing since 1996
ØBMMA Chairman (Belgian Marketing & Management Association)
(2018 -… )
ØFounding Father of Interactive Advertising Bureau Belgium
(IAB) (1998)
ØCIM: President Strategy (2016 - …), President Internet
(2000-2011), President TV (2012 -2013)
ØTeach Marketing at Solvay Brussels School: Digital, Omni-channel,
International Marketing and Integrated Communication
ØActive Blogger : I’am A Bridge – www.huguesrey.com @huguesrey

3. Title of presentation
Marketing & Advertising
“Under Pressure”

4. 77%little value
for people
Still, there is
in the current value
exchange with
brands
PEOPLE WOULD NOT CARE IF
DISAPPEARED
OF BRANDS
+3pts

5. Experiences Solutions Entertainment Stories Events
90% Expect Brands to provide Content
Of Consumers

6. is not
meaningful to
consumers
58%
More than half of content fails to deliver
of the content
provided by brands

7. AND we live in a world of
content overload
+470,000
Tweets sent
+4 M
Videos watched
SOURCE: DOMO 2018
… every minute of the day!
+49,000
Photos posted

8. 5000Marketing Message
a Day
8 secAttention Span
50% 40%Ad Blockers
(APAC)
Subscription
Audiovisual Media (2020)
Communication Overload

9. AD BLOCKING In ASIA: UP TO 40%

10. "Regardless of what your metric says,
we're not paying attention to it. If you
don't add value to people's lives,
I don't really give two shits about your
advertising,“ will.i.am

11. Marketing must
add value
to People’s life !
• Meaningful –
Marketing must Improve
People’s Life and Play a
positive role in the Society
• Hyper Personalized –
Marketing understands me,
offers me tangible value,
without disturbing me

12. Path 1
- Meaningful Marketing -

13. « Meaningful Marketing »
Inspire
Meaningful
Connections
Which
Generate
Business Results
Between
People &
Brands
Go beyond the product, exploring how
brands tangibly improve peoples’ lives
and the role they play in society

14. Understanding what matters
Personal benefits
Does the product
or service deliver?
Collective benefits
Functional benefits
FUNCTIONAL
PHYSICAL
GOV/ETHICS
ENVIRONMENT
COMMUNITY WORKPLACE
ECONOMY
ORGANISATIONAL
FINANCIAL
INTELLECTUAL
SOCIAL
EMOTIONAL
NATURAL
Meaningful = Multiple Benefits
MB INDEX = Brand Performance + KPIs
How brands improve
peoples’ lives?
What’s their
role in society?

15. What Makes Brands Meaningful?
Importance weights Indexed per pillar
Good Quality Prods
Delivers
Useful Prods
Safe & Responsible Prods
Fair prices
Life Easier
Peace of Mind
Me Happier
Life Satisfaction
New Ideas
Transparent
Ethical
Diversity
Good Workplace
Benefits Local Economy
107 116 112
114 110
103 114 107
103 110 105
100 110 104
41%
FUNCTIONAL
BENEFITS
PERSONAL
BENEFITS
30% 29%
COLLECTIVE
BENEFITS
⇱
⇲
⇱
104

16. ARG
AUT
BEL
BRA
CAN
CHL
CHN
DNK
EST
FRA
DEU
IND
I…
ITA
JPN
KOR
LVA
LTU
MYS
MEX
NLD
PER
POL
PRT
RUS SGP
ESP
SWE
TWN
GBR
USA
More
functional
More
collective
& personal
Higher
Meaningfulness
Emerging
Grateful
markets
Mature,
Pragmatic
& Brand Agnostic
Lower
Meaningfulness
What brings
meaning
differs by
country
Power of the brands in
Vietnam is probably
still high & must be maintain

17. Beverage
Finance &
Insurance
Media &
Internet
Transport
Telco
Auto
Apparel
Lower
Meaningfulness
Higher
Meaningfulness
Meaningfulness varies
by industry
More
functional
More
collective
& personal
CONSUMER ELECTRONICS
TRANSPORTS
AUTOMOTIVE
INTERNET & MEDIA
TELCOBEVERAGE
ENERGY
APPAREL
ENTERTAINMENT
HEALTHCARE
FOOD
TRAVEL
RETAIL
PERSONAL CARE
FINANCE &
INSURANCE

18. TOP 30 Meaningful Global Brands - 2019
MBI Index
‘151 74,6 2 73,0 3 71,9 4 71,7
MBI Index
‘155 71,2 6 71,1 7 71,0 8 70,9 9 70,8 10 70,5
MBI Index
‘1511 70,4 12 70,2 13 70,1 14 69,7
MBI Index
‘1515 69,7 16 17 18
MBI Index
‘15
19 20
21 22
69,6
23 69,3 24 69,2
MBI Index
‘1525 69,1 26 69,0 27 68,9 28 68,8 29 68,7 30 68,669,5
69,6 69,5 69,5 69,5
69,5
A Global Brand is a brand assessed in at least 3 markets and 2 regions in MB19, and available worldwide.

19. +6% COLLECTIVE
BENEFITS
FUNCTIONAL
BENEFITS
PERSONAL
BENEFITS+3%
+5%
Danone 2030 Goals embed the business,
brand and trust models of the company to
drive long-term sustainable value creation
"At Danone, we
believe that each
time we eat and
drink, we can vote for
the world we want.”
Emmanuel
Faber
(CEO)
Danone:
“One planet. One health”

20. PERSONAL
BENEFITS+6% +6% COLLECTIVE
BENEFITS
FUNCTIONAL
BENEFITS+5%
focuses on making both
individual consumers and
their homes healthier
Health for Humanity
2020 Goals”
J&J sustainability plan, called
“
Since 2014, J&J has been
repeatedly recognized for their
sustainability efforts
amongst the best “Green” brands worldwide
Johnson & Johnson:

21. +7% COLLECTIVE
BENEFITS
PERSONAL
BENEFITS+8%
FUNCTIONAL
BENEFITS=
2 years later, the
former NFL player
appears in the
’30 years’ ad of Nike
Colin Kaepernick refused to rise for
the national anthem, in opposition
to police violence in the US
Nike’s online sales jumped
31% in the 4-day period
Nike:
a leader in brand activism overnight

22. BRAND ACTIVISM WINS OVER BRAND NEUTRALITY
by triggering better personal benefits
The Brand ability to inspire
consumers to Make the
world a better place…
… with the Emotional
benefits provided by
the Brand to consumers
84%
…shows a
correlation

23. can take many forms
Brand Activism
Sustainability
Health
Immigration LGTB Rights
Gender
Equality

24. Why does
Meaningfulness
matter?

25. Return on meaning
MEANINGFUL
VALUE FOR
PEOPLE
BUSINESS
RETURNS
+ KPIs
+ Financial Value
=
Earning Meaningful Returns

26. significantly
higher KPIs
Meaningful brands generate
KPIs
M Performance M Performance
Overall Impression 42%80%
Purchase Intent
(non clients) 14%38%
Repurchase Intent
(clients) 70% 29%
Advocacy 76% 37%
Premium Price 40% 18%
High Low

27. Return on Meaning Boost by KPI
Improving Performance by only 10%, KPIs Grow by…
14%
12%
10%
8%
6%
4%
2%
0%
FAMILIARITY
+3%
OVERALL
IMPRESSION
+7%
PURCHASE
+11%
REPURCHASE
+5%
ADVOCACY
+7%
PREMIUM
PRICE
+13%
boosts KPIs
Improving Meaningful Performance

28. 80
130
180
230
280
330
380
430
Stock-market cumulated values between 2008 and 2018
Source: Yahoo Finance / STOXX 1800
TOP MB
performers
Overall Stock
Market
Meaningful Brands
outperform the stock
market by 134%
2008 20182010 2012 2014 201
6

29. How to inspire
more meaningful
connections?

30. 72%
Correlation between
performance on Personal Benefits
and Content Effectiveness*
*CONTENT EFFECTIVENESS IS DEFINED BY CROSSING THE STRENGTH OF ASSOCIATION OF A BRAND TO
CONTENT TYPES AND THE PERFORMANCE OF THE CONTENT PERFORMED BY THE BRAND
Great Content drives
Personal benefits

31. Roles of Content
Understanding the
Help RewardEducate InformEntertainInspire

32. +
Most
associated
-
+
-
Least
associated
Most
expected
Least
expected
Standard
Already fulfilled
Must Have
Have to be there
Secondary
Do not focus only here
Opportunity
Potential differentiation lever
INSPIRE
ENTERTAIN
EDUCATE
INFORM
HELP
REWARD
most expected
content from
Apparel brands
Inspiration
& Reward

33. by Adidas x Parley For The Oceans
INSPIRATION
Adidas donated
$1 for every km
logged through
its Runtastic app,
to spread awareness about
the ocean conservation
Adidas also sold over 1 million pairs
of “Parley for the Oceans” sneakers
made from marine plastic

34. +
Most
associated
-
+
-
Least
associated
Most
expected
Least
expected
Standard
Already fulfilled
Must Have
Have to be there
Secondary
Do not focus only here
Opportunity
Potential differentiation lever
INSPIRE
ENTERTAIN
EDUCATE
INFORM
HELP
REWARDmost expected
content from
Healthcare brands
Help &
Information
HEALTHCARE

35. HELP
by Otrivin, decongesting the city
Otrivin (nasal
spray)
provided 6.000
marathon runners
with cleaner air
in New Delhi,with cannons that are able to
get dust, pollen & pollution out
of the sky, used before &
during the races

36. Path 2
Hyper
Personalization

38. 50%
personalized
offers

39. “INDIVIDUAL”
DATA
SCALABILITY
How to Hyper-Personalize ?

40. Marketing is moving from 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

41. Marketing is moving from 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

42. Personalization at scale
generates positive earned media

43. Making
sense
of
customer data

44. Making sense
of customer data:
Profile
Sharing
Benefits

45. Marketing is moving from 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

46. L’Oréal launches
AI-powered skin
diagnostic based on
scientific research in skin
aging.

48. Marketing is moving from 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

51. IN-THE-MOMENT OFFERS PROACTIVE MESSAGING FOCUS ON WHAT SELLS
CUSTOMER JOURNEY ANALYTICS DRIVE CONTENT CREATION

52. 52

53. Served grill video and purchased grill.
Served geotargeted patio
message Northern Market.
Served geotargeted patio
message Southern Market.
Served STRONG
promotional message
Went to site
but did not purchase.
Served STRONG
promotional message
Ongoing personalized
messaging
CUSTOMER JOURNEY ANALYTICS DRIVE CONTENT CREATION

54. Marketing is moving from 4P’s to S.A.V.EEE.
in a Hyper Personalized Relation
Product PlacePrice Promotion
Service x Product
= Bespoke Offer
Value Based
Pricing
Access x
(Learn + Apply)
= Experience
Engage, Entertain,
Educate = Unique
Relationship

55. Dynamic
Pricing
Algorithm

57. Structural & Ethical
Meaningfulness ?
Brand
Profit
Consumer
Perceived Value

58. Wrap-up & Conclusions

59. Phygital vs Transhuman
59

60. Meaningful
and
Hyper-personalized

61. hugues.rey@havasmg.com
@huguesrey
+ 32 496 26 06 88
www.huguesrey.com
THANK YOU
FOR
YOUR ATTENTION !