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ANXIETYINDEX
      COLOMBIA
         JANUARY 2010
AGENDA
    Background ..............................................................................................................3
    Methodology ............................................................................................................5
    Executive Summary                   ..............................................................................................6

    What’s making people anxious today?                                      ........................................................9

    A closer look at Colombia                       ..............................................................................20

         The recession’s impact on Colombia vs. other countries ................................21
         The recession’s impact on lifestyle ................................................................24
         Media and the recession ................................................................................33
         Shopping behavior and the recession ............................................................39
         Looking to the future: The next generation ....................................................42

    Brand Opportunities ............................................................................................45



2
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.)
                                  Colombia - GDP Percent Change
                10
                                                  6.8
                                         5.2              8.2
                 5
                        3.7
                                3.6                                         2.5

                 0
                                                                                    -0.1


    % Change     -5



                      2004     2005       2006     2007     2008       2009        2010
                                                                                   (est.)

    JWT launched the baseline study for AnxietyIndex in Colombia in 2010.

    Following the global economic downturn, forecasts predict a recession for Colombia in 2010.

                                                                             Source: CIA World Fact Book



4
METHODOLOGY
    Quantitative survey conducted by JWT SONARTM, our proprietary online
    research tool
    Data collected January 2010
        1,253 adults aged 25-plus living in Colombia
    Data weighted by age and gender




5
EXECUTIVE
    SUMMARY




6
EXECUTIVE
    SUMMARY
    Colombia registers a relatively low level of anxiety compared with other
    countries JWT has surveyed.
    There are two primary drivers of anxiety in Colombia:
        Crime: Significant inequality in Colombian society has led to high rates of
        urban violence and theft.
        Global warming: Water levels of many rivers and lakes have decreased, and
        some have disappeared.




7
EXECUTIVE
    SUMMARY
    Some highlights of the AnxietyIndex study:
        Colombians are most pessimistic when it comes to the cost of gasoline,
        unemployment and increasing food prices.
        As far as specific drivers of anxiety, Colombians are most concerned about
        the impact of global warming.
        To reduce spending, Colombians are spending more time at home, cutting
        down on trips to the cinema and leisure activities.




8
WHAT’S MAKING PEOPLE
    ANXIOUS TODAY?



9
Overall anxiety levels in Colombia are relatively
         low—among the lowest 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 ArgentinaMexico UAE   India   U.S.   Spain Brazil   U.K. AustraliaColombiaCanada France China
                         Arabia
                                                                                                                Brazil: January   2009
                                  % Nervous/Anxious                 % Not Nervous/Anxious              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,
10                                                                     how nervous or anxious would you say you currently are?
... and fewer than 1 in 10 say 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,
11                                                                       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                                ECONOMIC
12
Other than crime, the major drivers of
     anxiety make Colombians less anxious than
           most people around the world.
                                              Political Leadership
                                                                                                       Colombia
                                                    1000
                                                                                                       Global average
                                                     900
                          Threat of
                                                     800                        State of Economy
                          Terrorism
                                                     700
                                                     600
                                                     500
                                                     400
                                                     300
                                                     200   70
     Potential Military                                         175                          Cost of
        Hostilities                           155 100
                                                                                           Health Care
                                              100 0                   147

                                               98               120

                                                           143
                                              364
         Current Military                                                             Cost of Living
           Hostilities




                                      Crime                           Job Security
                                                            AnxietyIndex: % who are nervous or anxious/% who are not

13
Even compared with other LATAM markets
     JWT studied, Colombians are much more at ease.
                                                Political Leadership
                                                                                                          Colombia
                                                      1000
                                                                                                          LATAM* average
                                                       900
                            Threat of
                                                       800                       State of Economy
                            Terrorism
                                                       700
                                                       600
                                                       500
                                                       400
                                                       300
                                                       200 70
       Potential Military                                       175                             Cost of
          Hostilities                           155 100
                                                                                              Health Care
                                                100 0                 147

                                                 98             120

                                                             143
                                                364
           Current Military                                                              Cost of Living
             Hostilities




                                        Crime                          Job Security
                                                             AnxietyIndex: % who are nervous or anxious/% who are not
                                                                                      *Brazil, Argentina, Colombia, Mexico
14
On specific drivers of anxiety, Colombians stand out
      in only one area: concern about global warming ...
                                                         The War in Iraq
                                Impact of Global             800                    The War in
                                   Warming                                          Afghanistan                 Colombia
                                                                                                                Global average
                                                             600
               Natural Disasters                                                              The Housing
                                                                                                Market
                                                             400
                                                       363

             Safety of the                                   200
                                                               34                                     Gasoline Prices
             Food Supply                                            33
                                                   147                   56
                                                       69      0              139

                                                   72                      132
             Quality of
        Products Imported                              101                                           Food Prices
                                                             52 68            237
            from China                                   128



               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 not

15
... and are generally relaxed
        compared with their LATAM neighbors.
                                                The War in Iraq
                                                                      The War in
                                 Corruption          800
                                                                      Afghanistan                       Colombia
                                                                                                        LATAM* average
              Impact of Global                       600                            The Housing
                 Warming                                                              Market
                                              495
                                                     400

                                      363
     Natural Disasters                               200
                                                                                           Gasoline Prices
                                                       34
                                                           33 56
                                        147                        139
                                                       0

       Safety of the
                                              69                132
                                                72                                           Food Prices
       Food Supply                                                 237
                                               101     52 68
                                                     128
           Quality of
      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, Mexico
16
In general, Colombians are slightly more
     optimistic than the global average about near-term
                prospects of positive change.
                                                                              WORSE                         BETTER
                Safety of the food supply                                                          -4
                                                                                                           1
                     The housing market                   Colombia                                          4
                                                          Global average                           -3
                       The stock market                                                                   8
                                                          More optimistic                                 2
                            Bank failures                                                                  11
                                                          More pessimistic
                                                                                                          1
                    Unemployment rates                                               -30
                                                                                       -27
                         Gasoline prices                               -53
                                                                                   -34
                             Food prices                                       -40
                                                                                 -35
         The government’s budget deficit                                                -26
                                                                                       -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?
17
Colombians are split on the extent to
     which they’re feeling the effects of the downturn.

                   Intensity of Personal Impact from Tough Economic Times




                                                            29
                                37                                                         35




                  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 tough economic
18                                                times have impacted me personally a great deal, how would you rate yourself?
Many feel they fared better than their countrymen.

                       Intensity of Impact from Tough Economic Times



                  Impact on Colombia                            Impact on me =       35
                  Impact on Me                             Impact on Colombia =      59




              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?
19
A CLOSER LOOK AT
     COLOMBIA



20
THE RECESSION’S
     IMPACT ON COLOMBIA
     VS. OTHER COUNTRIES



21
Most think Colombia has fared about
      the same or better in the recession than other
               Latin American countries ...
          Impact of Recession on Colombia vs. Other Latin American Countries

          70

          60
                                                                                             50
          50
                                                             43
          40

          30

          20

          10                 7
            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?

22
... and almost 6 in 10 say Colombia has been less
            affected than “wealthier” countries.

                      Impact of Recession on Colombia vs. Richer Countries

           70

           60                                                                                 59
           50

           40

           30
                                                              22
           20                19
           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 affected
23                                                                 more, less, or about the same compared to richer countries?
THE RECESSION’S
     IMPACT ON LIFESTYLE



24
Colombians 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                                               77
                              global economic downturn

            I worry that the global economic downturn is
            widening the economic gap between the rich                                              76
                               and the poor in my country

         I’m worried that crime in my neighborhood will
                   increase as people fall on hard times                                            75
         Government corruption in my country is as bad
                                   as it has ever been                                         67
             My social class is being dealt an unfair blow
              because of this global economic downturn                                        64
            I have started to notice that the values in my
            country have changed a bit as a result of the                                57
                               global economic downturn

            The economic crisis has brought me closer to
                                   my friends and family
                                                                            35

         The economic crisis has distanced me from my
                                      friends and family
                                                                   20
        %

                                                             How much do you agree or disagree with each of the following statements?


25
Behavior-wise, people
          are retrenching to their homes ...
         Changes in Social Behavior as a Result of the Downturn


                                           4
              Going to concerts/theatre                            45
                                                                          51
                                               6
               Going out to the movies                                       54
                                                              40
                                           2
                Going out to clubs, bars                      38
                                                                                  60
                                               7
                       Going out to eat                                 50
                                                                   43
                                           5
                    Going out shopping                             43
                                                                          52
                                           4
            Going out to parties/events                            45                      More
                                                                          51               Same
                                                                    46                     Less
                Spending time at home                                48
                                           6




     %

           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?
26
... especially women.
                        % Doing Activity LESS by Gender



                                                                         55
            Going to concerts/theatre                             47
                                                             42
             Going out to the movies
                                                           38
                                                                           61
              Going out to clubs, bars
                                                                         58
                                                                    48
                     Going out to eat
                                                          37
                                                                              61
                  Going out shopping
                                                               43
                                                                46
          Going out to parties/events                                                    Women
                                                               44
                                                                                         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?
27
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                                            74
            I want to spend more time with my family                           45
             There seems to be less going on (parties,
                                       concerts, etc.)        15

                      Because most of my friends are         12
       I improved my home entertainment/bought new
                       items for home entertainment
                                                             12

                Because of crime in my neighborhood      5




       %

                                                             You mentioned that you have been spending more time at home recently.
                                                                  What are the reasons you have been spending more time at home?

28
Crime is a prime driver of anxiety ...
              How concerned are you about crime in your neighborhood?

         60
                           67
         50
                                  45
         40                                                 33
         30
                                                     25
                      22
         20

         10                                                           8
          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?

29
... and it appears that the downturn
                         may be contributing ...
              How has your concern about crime changed over the past year?

         80

         70

         60                                                54
         50
                           40
         40

         30

         20

         10                                                                               6
          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?


30
... though crime-related anxiety
              is not impacting the daily lives of many.
                Has your routine changed due to concerns about crime?
         80
                 Women
                                                                         70
         70
                 Men
                                                                66
         60

         50

         40              34
                                    30
         30

         20

         10

          0
                              Yes                                     No




     %

                          Have you changed your routine at all due to your concern about crime in your neighborhood?


31
Those who have changed their routine have
     adopted coping mechanisms impacting various areas
     of their lives, from shopping in different areas/stores
         to showing less bling to going out less often.
                       Has your routine changed due to concerns about crime?

               Not wearing certain pieces of clothing or                                            65
                 accessories so I don’t attract attention                                 54
                                                                                              58
              Choosing to shop in different areas/stores                                       60

                                  Not going out at night                                  53
                                                                                         50

                     Going out less often than I used to                            45
                                                                                         50

        Making sure that when I am out, I am not alone                              49
                                                                               39

           Choosing different methods of transportation                   30
                                                                               36

                              Buying fewer luxury items                    31
                                                                            34
                                                                                                               Women
           Entertaining myself and friends at home so I           14                                           Men
                         don’t have to go out as much              16



       %                                                    Among those who have changed their routine due to concerns about crime
                                                                                                         And how or what have you changed?


32
MEDIA AND
     THE RECESSION



33
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
                                59
         50

         40
                                                                32
         30

         20

         10
                 9
                                                                                  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?


34
Colombians 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
                                         70                     65
          70                                                                       63
          60
          50
          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?


35
... which have been a source
               of information about the downturn.
          % of people who saw news about the downturn through their usual
                           news and information sources
         100
          90            94                                                          Women

          80                       90                                               Men


          70
          60
          50
          40
          30
          20
          10                                                   6         10
           0
                             Yes                                    No


     %

                          Have you watched/read/heard reports about the global economic downturn from your usual
                                                                                   news and information sources?

36
Most Colombians feel the media has covered the
     downturn in the right proportion. If anything, there’s
         been a bit more coverage than they’d like.
                  Has the media coverage of the downturn been ...?
           80

           70                                           63
           60

           50

           40

           30
                                                                                      22
           20          15
           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?

37
But nearly half are unaware of predictions that Latin
           America will enter a recession this year.

           Awareness of reports that Latin America will enter a recession in 2010
            80

           70

           60                 55
           50                                                              45
           40

           30

           20

           10

            0
                               Yes                                          No

       %

                                     Are you aware of the recent reports that Latin America will enter a recession in 2010?


38
SHOPPING BEHAVIOR
     AND THE RECESSION



39
In the past year, most people have taken some
     steps in response to the global downturn—though
             these are more passive than active.
                              Actions taken as a result of the global downturn
     Paying closer attention to prices while I’m shopping                                     68
                  More actively looking for items on sale                                  64
              Doing more comparison shopping to make
                              sure I get the best price                                 58
                 Buying only when I am close to running                             52
                                      out of something

          Buying more store brands/private label brands                       41
     Shopping more at discount or less expensive stores                     39
                       Switching to lower priced brands               30
            Buying smaller amounts of items, more often          19
                  I haven’t changed my spending habits
                             as a result of the recession
                                                                17
                                    Using more coupons          15
                                     Buying more in bulk    7


        %

          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?
40
Defensive recessionary behavior
                       seems yet to have gripped Colombians.

                                                         % who agree strongly



           I have started to cut back on things I don’t need                          46
                 I have noticed my friends have cut back in
                                       their spending habits
                                                                            28
     I worry that because of the global economic downturn
        I won’t be able to keep up the lifestyle I am used to
                                                                          24
     I worry that because of the global economic downturn              20
                 I won’t be able to attain the lifestyle I want
        I haven’t personally felt the effects of the recession
          but have modified my spending habits just in case          18
                        The recession hasn’t really changed
                               what I do in my everyday life
                                                                     17




            %

                                                                  How much do you agree or disagree with each of the following statements?


41
LOOKING TO THE FUTURE:
     THE NEXT GENERATION



42
While only about half of Colombians are generally
      anxious, 8 in 10 are 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
                                                     79
           80
           70
                                58
           60
           50
           40
                                                                                                 29
           30
           20
           10
                                                                              7
             0
                            Anxious about        Anxious about           Very Anxious      Very Anxious about
                             themselves          their children/       about 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?

43
... 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
                                                                                                         76

     I worry about my ability to afford the type of education                                            76
                                      I’d like for my child(ren)

          I worry about my retirement funds and that I may                                              71
             someday have to rely on my child(ren) for help

          This is a good lesson for my child(ren) about living                                     66
                                          within your means
         I’ve lived through recessions before, and so did my
                       parents—my child(ren) will be just fine
                                                                                      43

           The schools are doing a good job of teaching my                      34
                             child(ren) about the recession




            %                                                                                             Among those who have children
                                                                   How much do you agree or disagree with each of the following statements?


44
BRAND
     OPPORTUNITIES




45
BRAND
     OPPORTUNITIES
     The Chinese character for “crisis” contains two
     characters to be read concurrently: danger and
     opportunity.
     More than being seen as a barrier, the crisis is
     regarded as an opportunity that some companies
     can capitalize on.




46
BRAND
     EXAMPLES
     BCSC: Helping people to save again

                             While the global economic crisis has affected
                             Colombia, few brands seem to be trying to reduce
                             the level of anxiety among consumers. A notable
                             exception is Banco Caja Social BCSC (“Your friendly
                             bank”), which has created a product that meets
                             the needs of customers in this recession.
     Maintaining a savings account in Colombia is expensive, with various fees
     and charges, so BCSC launched a free account and added incentives for
     customers to meet savings goals. A print ad says: “Let’s celebrate that we
     can finally start saving again.”



47
BRAND
     EXAMPLES
     Sedal: Giving women what they wanted but could not afford

     This hair brand developed a promotion for
     Colombian women based on the insight “I
     have no reason to wait until the crisis passes
     to make and take what I’ve always wanted.”
     The target was women whose ideal role in
     life is to study, work and engage in the
     home. Women had to send three Sedal labels
     to enter in a weekly drawing; prize money
     was awarded for spending on clothes, to
     study, to travel or to buy housewares.



48
BRAND
     EXAMPLES
     CODENSA: Credit for all

     The energy supplier in Bogotá, Codensa, decided to venture into the
     financing of appliances, creating Crédito Fácil Codensa (Easy Credit
     Codensa), a program aimed at low socioeconomic levels. The idea is to
     improve quality of life, giving people the opportunity to get things they’ve
     always wanted but were unable to afford outright, especially not during an
     economic crisis. Participants can pay for more than 120 brands of household
     products through their Codensa energy bill, in up to 48 installments.




49
THANK YOU

Mark Truss                                    Alexandra Suarez                                       Ann M. Mack
Director of Brand Intelligence              Market Research Director                         Director of Trendspotting
JWT Worldwide                                    JWT Latin America                                     JWT Worldwide
mark.truss@jwt.com                         alexandra.suarez@jwt.com                               ann.mack@jwt.com



                                            www.AnxietyIndex.com
                                 (c) 2010 J. Walter Thompson Company. All Rights Reserved.

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JWT AnxietyIndex: Colombia (January 2010)

  • 1. ANXIETYINDEX COLOMBIA JANUARY 2010
  • 2. AGENDA Background ..............................................................................................................3 Methodology ............................................................................................................5 Executive Summary ..............................................................................................6 What’s making people anxious today? ........................................................9 A closer look at Colombia ..............................................................................20 The recession’s impact on Colombia vs. other countries ................................21 The recession’s impact on lifestyle ................................................................24 Media and the recession ................................................................................33 Shopping behavior and the recession ............................................................39 Looking to the future: The next generation ....................................................42 Brand Opportunities ............................................................................................45 2
  • 3. 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
  • 4. BACKGROUND (CONT’D.) Colombia - GDP Percent Change 10 6.8 5.2 8.2 5 3.7 3.6 2.5 0 -0.1 % Change -5 2004 2005 2006 2007 2008 2009 2010 (est.) JWT launched the baseline study for AnxietyIndex in Colombia in 2010. Following the global economic downturn, forecasts predict a recession for Colombia in 2010. Source: CIA World Fact Book 4
  • 5. METHODOLOGY Quantitative survey conducted by JWT SONARTM, our proprietary online research tool Data collected January 2010 1,253 adults aged 25-plus living in Colombia Data weighted by age and gender 5
  • 6. EXECUTIVE SUMMARY 6
  • 7. EXECUTIVE SUMMARY Colombia registers a relatively low level of anxiety compared with other countries JWT has surveyed. There are two primary drivers of anxiety in Colombia: Crime: Significant inequality in Colombian society has led to high rates of urban violence and theft. Global warming: Water levels of many rivers and lakes have decreased, and some have disappeared. 7
  • 8. EXECUTIVE SUMMARY Some highlights of the AnxietyIndex study: Colombians are most pessimistic when it comes to the cost of gasoline, unemployment and increasing food prices. As far as specific drivers of anxiety, Colombians are most concerned about the impact of global warming. To reduce spending, Colombians are spending more time at home, cutting down on trips to the cinema and leisure activities. 8
  • 9. WHAT’S MAKING PEOPLE ANXIOUS TODAY? 9
  • 10. Overall anxiety levels in Colombia are relatively low—among the lowest 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 ArgentinaMexico UAE India U.S. Spain Brazil U.K. AustraliaColombiaCanada France China Arabia Brazil: January 2009 % Nervous/Anxious % Not Nervous/Anxious 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, 10 how nervous or anxious would you say you currently are?
  • 11. ... and fewer than 1 in 10 say 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, 11 how nervous or anxious would you say you currently are?
  • 12. 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 ECONOMIC 12
  • 13. Other than crime, the major drivers of anxiety make Colombians less anxious than most people around the world. Political Leadership Colombia 1000 Global average 900 Threat of 800 State of Economy Terrorism 700 600 500 400 300 200 70 Potential Military 175 Cost of Hostilities 155 100 Health Care 100 0 147 98 120 143 364 Current Military Cost of Living Hostilities Crime Job Security AnxietyIndex: % who are nervous or anxious/% who are not 13
  • 14. Even compared with other LATAM markets JWT studied, Colombians are much more at ease. Political Leadership Colombia 1000 LATAM* average 900 Threat of 800 State of Economy Terrorism 700 600 500 400 300 200 70 Potential Military 175 Cost of Hostilities 155 100 Health Care 100 0 147 98 120 143 364 Current Military Cost of Living Hostilities Crime Job Security AnxietyIndex: % who are nervous or anxious/% who are not *Brazil, Argentina, Colombia, Mexico 14
  • 15. On specific drivers of anxiety, Colombians stand out in only one area: concern about global warming ... The War in Iraq Impact of Global 800 The War in Warming Afghanistan Colombia Global average 600 Natural Disasters The Housing Market 400 363 Safety of the 200 34 Gasoline Prices Food Supply 33 147 56 69 0 139 72 132 Quality of Products Imported 101 Food Prices 52 68 237 from China 128 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 not 15
  • 16. ... and are generally relaxed compared with their LATAM neighbors. The War in Iraq The War in Corruption 800 Afghanistan Colombia LATAM* average Impact of Global 600 The Housing Warming Market 495 400 363 Natural Disasters 200 Gasoline Prices 34 33 56 147 139 0 Safety of the 69 132 72 Food Prices Food Supply 237 101 52 68 128 Quality of 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, Mexico 16
  • 17. In general, Colombians are slightly more optimistic than the global average about near-term prospects of positive change. WORSE BETTER Safety of the food supply -4 1 The housing market Colombia 4 Global average -3 The stock market 8 More optimistic 2 Bank failures 11 More pessimistic 1 Unemployment rates -30 -27 Gasoline prices -53 -34 Food prices -40 -35 The government’s budget deficit -26 -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? 17
  • 18. Colombians are split on the extent to which they’re feeling the effects of the downturn. Intensity of Personal Impact from Tough Economic Times 29 37 35 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 tough economic 18 times have impacted me personally a great deal, how would you rate yourself?
  • 19. Many feel they fared better than their countrymen. Intensity of Impact from Tough Economic Times Impact on Colombia Impact on me = 35 Impact on Me Impact on Colombia = 59 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? 19
  • 20. A CLOSER LOOK AT COLOMBIA 20
  • 21. THE RECESSION’S IMPACT ON COLOMBIA VS. OTHER COUNTRIES 21
  • 22. Most think Colombia has fared about the same or better in the recession than other Latin American countries ... Impact of Recession on Colombia vs. Other Latin American Countries 70 60 50 50 43 40 30 20 10 7 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? 22
  • 23. ... and almost 6 in 10 say Colombia has been less affected than “wealthier” countries. Impact of Recession on Colombia vs. Richer Countries 70 60 59 50 40 30 22 20 19 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 affected 23 more, less, or about the same compared to richer countries?
  • 24. THE RECESSION’S IMPACT ON LIFESTYLE 24
  • 25. Colombians 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 77 global economic downturn I worry that the global economic downturn is widening the economic gap between the rich 76 and the poor in my country I’m worried that crime in my neighborhood will increase as people fall on hard times 75 Government corruption in my country is as bad as it has ever been 67 My social class is being dealt an unfair blow because of this global economic downturn 64 I have started to notice that the values in my country have changed a bit as a result of the 57 global economic downturn The economic crisis has brought me closer to my friends and family 35 The economic crisis has distanced me from my friends and family 20 % How much do you agree or disagree with each of the following statements? 25
  • 26. Behavior-wise, people are retrenching to their homes ... Changes in Social Behavior as a Result of the Downturn 4 Going to concerts/theatre 45 51 6 Going out to the movies 54 40 2 Going out to clubs, bars 38 60 7 Going out to eat 50 43 5 Going out shopping 43 52 4 Going out to parties/events 45 More 51 Same 46 Less Spending time at home 48 6 % 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? 26
  • 27. ... especially women. % Doing Activity LESS by Gender 55 Going to concerts/theatre 47 42 Going out to the movies 38 61 Going out to clubs, bars 58 48 Going out to eat 37 61 Going out shopping 43 46 Going out to parties/events Women 44 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? 27
  • 28. 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 74 I want to spend more time with my family 45 There seems to be less going on (parties, concerts, etc.) 15 Because most of my friends are 12 I improved my home entertainment/bought new items for home entertainment 12 Because of crime in my neighborhood 5 % You mentioned that you have been spending more time at home recently. What are the reasons you have been spending more time at home? 28
  • 29. Crime is a prime driver of anxiety ... How concerned are you about crime in your neighborhood? 60 67 50 45 40 33 30 25 22 20 10 8 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? 29
  • 30. ... and it appears that the downturn may be contributing ... How has your concern about crime changed over the past year? 80 70 60 54 50 40 40 30 20 10 6 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? 30
  • 31. ... though crime-related anxiety is not impacting the daily lives of many. Has your routine changed due to concerns about crime? 80 Women 70 70 Men 66 60 50 40 34 30 30 20 10 0 Yes No % Have you changed your routine at all due to your concern about crime in your neighborhood? 31
  • 32. Those who have changed their routine have adopted coping mechanisms impacting various areas of their lives, from shopping in different areas/stores to showing less bling to going out less often. Has your routine changed due to concerns about crime? Not wearing certain pieces of clothing or 65 accessories so I don’t attract attention 54 58 Choosing to shop in different areas/stores 60 Not going out at night 53 50 Going out less often than I used to 45 50 Making sure that when I am out, I am not alone 49 39 Choosing different methods of transportation 30 36 Buying fewer luxury items 31 34 Women Entertaining myself and friends at home so I 14 Men don’t have to go out as much 16 % Among those who have changed their routine due to concerns about crime And how or what have you changed? 32
  • 33. MEDIA AND THE RECESSION 33
  • 34. 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 59 50 40 32 30 20 10 9 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? 34
  • 35. Colombians 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 70 65 70 63 60 50 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? 35
  • 36. ... which have been a source of information about the downturn. % of people who saw news about the downturn through their usual news and information sources 100 90 94 Women 80 90 Men 70 60 50 40 30 20 10 6 10 0 Yes No % Have you watched/read/heard reports about the global economic downturn from your usual news and information sources? 36
  • 37. Most Colombians feel the media has covered the downturn in the right proportion. If anything, there’s been a bit more coverage than they’d like. Has the media coverage of the downturn been ...? 80 70 63 60 50 40 30 22 20 15 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? 37
  • 38. But nearly half are unaware of predictions that Latin America will enter a recession this year. Awareness of reports that Latin America will enter a recession in 2010 80 70 60 55 50 45 40 30 20 10 0 Yes No % Are you aware of the recent reports that Latin America will enter a recession in 2010? 38
  • 39. SHOPPING BEHAVIOR AND THE RECESSION 39
  • 40. In the past year, most people have taken some steps in response to the global downturn—though these are more passive than active. Actions taken as a result of the global downturn Paying closer attention to prices while I’m shopping 68 More actively looking for items on sale 64 Doing more comparison shopping to make sure I get the best price 58 Buying only when I am close to running 52 out of something Buying more store brands/private label brands 41 Shopping more at discount or less expensive stores 39 Switching to lower priced brands 30 Buying smaller amounts of items, more often 19 I haven’t changed my spending habits as a result of the recession 17 Using more coupons 15 Buying more in bulk 7 % 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? 40
  • 41. Defensive recessionary behavior seems yet to have gripped Colombians. % who agree strongly I have started to cut back on things I don’t need 46 I have noticed my friends have cut back in their spending habits 28 I worry that because of the global economic downturn I won’t be able to keep up the lifestyle I am used to 24 I worry that because of the global economic downturn 20 I won’t be able to attain the lifestyle I want I haven’t personally felt the effects of the recession but have modified my spending habits just in case 18 The recession hasn’t really changed what I do in my everyday life 17 % How much do you agree or disagree with each of the following statements? 41
  • 42. LOOKING TO THE FUTURE: THE NEXT GENERATION 42
  • 43. While only about half of Colombians are generally anxious, 8 in 10 are 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 79 80 70 58 60 50 40 29 30 20 10 7 0 Anxious about Anxious about Very Anxious Very Anxious about themselves their children/ about 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? 43
  • 44. ... 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 76 I worry about my ability to afford the type of education 76 I’d like for my child(ren) I worry about my retirement funds and that I may 71 someday have to rely on my child(ren) for help This is a good lesson for my child(ren) about living 66 within your means I’ve lived through recessions before, and so did my parents—my child(ren) will be just fine 43 The schools are doing a good job of teaching my 34 child(ren) about the recession % Among those who have children How much do you agree or disagree with each of the following statements? 44
  • 45. BRAND OPPORTUNITIES 45
  • 46. BRAND OPPORTUNITIES The Chinese character for “crisis” contains two characters to be read concurrently: danger and opportunity. More than being seen as a barrier, the crisis is regarded as an opportunity that some companies can capitalize on. 46
  • 47. BRAND EXAMPLES BCSC: Helping people to save again While the global economic crisis has affected Colombia, few brands seem to be trying to reduce the level of anxiety among consumers. A notable exception is Banco Caja Social BCSC (“Your friendly bank”), which has created a product that meets the needs of customers in this recession. Maintaining a savings account in Colombia is expensive, with various fees and charges, so BCSC launched a free account and added incentives for customers to meet savings goals. A print ad says: “Let’s celebrate that we can finally start saving again.” 47
  • 48. BRAND EXAMPLES Sedal: Giving women what they wanted but could not afford This hair brand developed a promotion for Colombian women based on the insight “I have no reason to wait until the crisis passes to make and take what I’ve always wanted.” The target was women whose ideal role in life is to study, work and engage in the home. Women had to send three Sedal labels to enter in a weekly drawing; prize money was awarded for spending on clothes, to study, to travel or to buy housewares. 48
  • 49. BRAND EXAMPLES CODENSA: Credit for all The energy supplier in Bogotá, Codensa, decided to venture into the financing of appliances, creating Crédito Fácil Codensa (Easy Credit Codensa), a program aimed at low socioeconomic levels. The idea is to improve quality of life, giving people the opportunity to get things they’ve always wanted but were unable to afford outright, especially not during an economic crisis. Participants can pay for more than 120 brands of household products through their Codensa energy bill, in up to 48 installments. 49
  • 50. THANK YOU Mark Truss Alexandra Suarez Ann M. Mack Director of Brand Intelligence Market Research Director Director of Trendspotting JWT Worldwide JWT Latin America JWT Worldwide mark.truss@jwt.com alexandra.suarez@jwt.com ann.mack@jwt.com www.AnxietyIndex.com (c) 2010 J. Walter Thompson Company. All Rights Reserved.