some of the latest consumer and brand trends with a unique brand trust survey conducted by Polestar and MMS Berlin

1. Consumer and marketing trends: 2010 January 2010

2. Introduction The objective is to highlight a few of the key consumer & marketing trends whilst illustrating a few of the brands activating these opportunities and hinting at some of the possibilities We have focused on the following market sectors: FMCG Drinks and alcohol Luxury Social and Government The insights are drawn from trend reports & Polestar sources

3. The context: Consumertrust in brands has been irrevocably shaken Across almost all categories there is a dramatic decline in consumer trust in brands Behaviour change (not just reactive communications) is needed to re-build trust: Sectors and brands that are fundamentally improving their consumer interaction & transparency will emerge as champions e.g. Supermarkets Stable categories include everyday ‘luxuries’ such as breweries and cosmetics, or enabling gadgets such as PC’s. A shift in the basis for trust: Delivery of product and service promises, reliability and a determination to resolve problems are the key factors in driving trust Factors once seen as the pillars of trust - tradition, origin, size and success - are being rendered increasingly meaningless unless they are combined with a positive current experience Source: Polestar / MMS (Berlin) brand trust survey November 2009

4. Source: Trust in Brands. Polestar Communications & MMS. November 2009

5. Source: Trust in Brands. Polestar Communications & MMS. November 2009

6. Source: Trust in Brands. Polestar Communications & MMS. November 2009

7. 1. Green 2. Generosity of brands and individuals 3. New ways to gain and define status 4. Limited, hand crafted, niche and local 5. Grown up brands 6. Joyning – Partnerships & Co-creation 7. Extreme customisation 8. On the go and always on 9. Infolust 10. Choice rejection and info blindness

8. Green continues to be a major trend despite the recession and reaches new levels of corporate acceptance Eco-frugal Advertising Eco-easy Econcierges Sainsbury’s/ Hindmarch bag Modularity Recycling Vertical farming in Boston Sainsbury’s – Freedom Foods & Marine Stewardship Reuse, reduce, recycle, regulate?

9. FMCG

11. Global and corporate vs local – 2009 has knocked trust in more than just MPs and banks

12. As the world gets bigger, the public increasingly seek meaning and connection at a local level. From simple local adaptation and the carbon benefit of local production to direct community benefits

13. Social networking creates community and a feedback loop to brands

14. Also creates networking neurosis and information overload

15. More opportunities for backlashes against brands

16. Canny consumers tapping into price alerting and online BOGOFs and vouchers

18. DIY Self service Effortless customisation Monitising creations Ebay type site for craft, home created items Online book creation, publishing & marketing Consumers are back in control – they can create professional products tailored to their wishes and monetise them

19. Locality Support local businesses Reduce carbon footprints Chain of production Dalesford Organics – delivery and outlets in London stores Timberland Local currency in Brixton, Totnes, Lewes, Stroud Deliveries to local pubs Waitrose local bottling Waitrose Pride in provenance Duchy Originals Roaming ice cream trucks in NYC, local ingredients In an uncertain world people embrace the known and familiar. Environmental concerns promote local ingredients & transparency of food sources.

20. Always on Real time reviews and updates Alerts Online sharing InPulse watch synched with Blackberry launches Feb 2010 Price tracking services Allows local bakers to notify people when hot cakes are available cf Krispy Kremes Consumers can connect, share and be updated constantly via all channels at any time of day or night.

21. DRINKS AND ALCOHOL

23. Instant gratification – self serve and vending machines

24. Looking for the new – pop ups, limited editions

25. Counter negative associations of alcohol

26. Many brands, not just alcohol, are including generosity as part of their marketing

27. Response to recession and consumer rejection

28. Desire for institutions that care

30. Statusphere Information is power Status stories Connected Exclusive concierge firms create links between members Wellbeing pop-up for Vital juices Virgin space flights A personal blend and tour for 100 special customers. Green Time saving Elemis spas at Heathrow and Cowshed treatments in Virgin Clubhouse Status is no longer just being bigger or most expensive

31. Statusphere Status skills Unique & Customised Learn to cook like Jamie in small groups Royal Academy secret auction on artist postcards Smirnoff teaches men to be ‘Modern Gentlemen’ with Hugo Boss and A Suit That Fits Anya Hindmarch bespoke handbags – embossed handwritten message from the giver t on inside of hand made bag. £1,000 - £6,500 People want experiences & products with a story that they can tell others about and that says something about themselves.

32. Luxury

34. Redefinition of what luxury is – experiences and stories over just ‘things’

35. Instant gratification – despite thrift chic & credit crunch

36. Looking for the new, unique and differentiated

37. Simplification of life – time & clarity are increasingly scarce

39. Grown Up Brands Inclusive Edgy Risqué Limited edition in Vermont of ice cream usually called Chubby Hubby Comme des Garcon uses synthetics to create ‘anti-perfumes: ’ Dry clean', 'Garage', 'Soda' and 'Tar' Philips ‘intimate massager’ Audiences appreciate brands that stand out and treat them as adults Icecreamists at Selfridges and in vans – flavours include ‘Molotoffee Cocktail’, ' Taking the Pistacchio’

40. Hyperlocal Limited locations Fortnum & Mason rooftop exclusive honey Exclusive access Burger King £95 burger – only available at Gloucester Road branch. (video) Urban pride City inspired flavours Guerlain city themed perfumes Limited editions, limited places = thrill of the hunt Bond #9 NYC neighbourhood perfumes

41. SOCIAL AND GOVERNMENT

43. More information available but still limited time

44. Transparency & accountability – overall decline in trust

45. Information overload

47. Consumer activism & advocacy A combination of frustration and connectivity has increased public activism. This means that from the Christmas No.1 to more serious issues, consumer advocacy & how this is managed is more important than ever

48. Public demand for ethics and transparency Research from the Economist shows how angry the public are with both big business and government. Behaviour has to change; this is not just about green policy, but about broader ethics and greater transparency

49. Surrender Most trusted brands by category (Reader’s Digest) Search for simplicity In the face of complexity, consumers react and search for simplicity and trusted brands

50. Media trends

51. From branded content to branded App From content that entertains to content that helps you live your life. Be that finding hire cars, the nearest pizza or helping you know the quickest routes to work. The public increasingly expect this type of facilitation NB: beware the fad - UK penetration of Smart phones only = 2% at the moment

52. The real arrival of mobile Mobile isn’t just about apps. 10.4 m UK consumers access the internet via mobile. There are 1.6bn bank accounts in the world but 4bn phones so financial transactions will drive use. Furthermore technical advances will mean TV & print content will increasingly be consumed

53. The role of TV evolves not declines The UK is still viewing over 26 hours of TV a week. Its use as an ‘event’ broadcast or to trigger viral activity has never been greater. 44% of people claim to have researched on-line in response to a TV ad (Deloitte 09)

55. Tapping into these trends, applying them and challenging established, accepted wisdom will create consumer connections and advocacy.

56. If you would be interested in a workshop exploring how any of these trends could be applicable for your specific brand and category, please get in touch....Simon Mathews: simonm@polestarcommunications.com Ollie Joyce: Olliej@polestarcommunications.com Mark Bauer: markb@polestracommunications.com