Esomar global-conference

W H I T E P A P E R

DISRUPT
to connect to 21st century’s
Digital Zappers
Shombit Sengupta
01 ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999

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-behavioural
Disruptive 21st century clusters:
Are we ready for the totally new
departure the 21st century’s digital We have identified these
erais 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 Critical
Innovations in the 19th century had come about
Exhibitionist to Perfectionist,
every 20 years; today,we experience innovation grab attention and not easy
every 20 days, particularly via the digital mode, to satisfy
throughout the world. In this innovation explosion,
the role of psycho-socio diversity has taken
centre 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 embraces
To understand this diversity and measure technology
its impact on the 21st century market, we whole heartedly
have found that the highly effective tools and
metrics we used in the 20th century to be quite These clusters were spun off from Digital Zap
inadequate in today’s context. When even the but are common to the Compromise andRetro
parameters to be researched have become generations as well. And they exist irrespective of
drastically divergent, the old methods would income, age and geography.
02 ©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999

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 pad
Total disruption & convergence in 21st & pen, audio & video player, calculator& alarm
century Digital eras clock and much more. Do you know how to grab
The process of change from 19th century’s this diverse world of disruption & convergence in
mechanical era to 20th century’s electronic era the 21st century?
©Shining Consulting: www.shiningconsulting.com +91-80-4127 6999

Revolutionary impact example, says “Smart has the brains, Stupid has
the balls. Be stupid.” In one of their ads, a boy
Using the music player, let’s illustrate how almost tumbles over a bus window to kiss a girl
innovation came every 20 years in the 20th on the street. Dolce& Gabana shows a woman
century. From the tape recorder invention, on the floor, body arched, and 4 men around
several years passed before the Walkman hit the her suggesting group sex. An Ungaro woman is
market. In comparison, 21st century’s innovation sensually enjoying hedonistic pleasure with her
every 20 days is represented in newer and

newer versions of mobile phones, software and hand inside her dress. Tom Ford has two nude
digital products, among others. Even the fashion couples strewn on the floor; and Calvin Klein
industry has experienced this century’s unsettling jeans portray an orgy as it is happening. Such
detonation. Look at it, decade-wise from the distractions are pervading almost every aspect
1950s to the 1990s, the flow of change was of life, and throughout the world. What was
harmonious. considered appropriate to stay hidden yesterday
Then arrives the 21st century’s fashion is out in the open today.
communication with a bang. The Diesel brand, for

Diesel Dolce & Gabbana emanuel ungaro


Tom Ford Calvin Klein

a newspaper at home, Compromise uses the
Digital Zap at the cusp Internet at offi ce and Zappers stay in touch with
of the century an iPad while on the go. To communicate, Retro
When the 1986 born Digital Zap reached the writes letters, Compromise phones and Zappers
age 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, the
overwhelming 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, Digital
1980. That’s why I’m considering everyone Zappers are the real inflfl uencers for decision
below 30 to be Digital Zappers. Tomorrow there making for every purchase in the family. They are
may not be Compromise or Retro generations a new civilization of digital connectors; don’t ever
because 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 has
Digital 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 in
21st century’s rapid change proliferating every
RETRO
societal area, these Digital Zappers have no
attachment to anything in any sustaining way.
The Internet, mobile phones have democratized
people to people communication globally.
Earliers real time continuous communication
was a privilege of the few who could afford it
and educated enough to use it. Today no cow
is sacred; there are no barriers to reaching out,
to finding information. Differences in attitude
are clearly visible: to get the news Retro reads Reads a newspaper Writes letters at home


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 go

Why are Digital Zappers not Like zapping TV channels, Digital Zappers are
connecting to most ads; is most comfortable with change, change and
rapid change in every aspect of life. Their text
the problem the media or the messaging is phonetic, and giving vowels a
message? miss is accepted script today. The above 30s
may fi nd it jarring, yet their mentality is to co-opt
Digital Zappers do not like advertisements.
Digital Zapper trends because clearly, discrete
They like symbolic provocation. Advertising of
numerical form is ruling this digital century that’s
general mass products today is still largely done
become totally Zap driven.
in 20th century style. Using new media does not
make much sense if the content is not relevant The establishment and its doctrines do not work
to 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 house
architecture irritates them. Digital Zappers would Coco Chanel founded in 1909 had maintained
rather love to see a single content with changing a classical tradition upto the 1990s. Chanel’s
messages that provoke. rectangular shaped perfume container was
so coveted that it was impossible to think

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-quarter
recent perfume called Chance broke Chanel’s
results, but do the brands keep up with the
classicism by havinga round bottle.
breakthrough trends the 21st century’s Digital
To 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 popularized
the cowboy logo for the jeans back pocket to
sport, now Chanel’s “CC” logo also adorns back
pockets of jeans. From archetypical French haute
couture to jeans is indeed a daring step. By doing
that Chanel has not reduced its brand value,
rather it’s been extended to the youth.
Industries that use disruption as a weapon in
strategizing for brands, industrial products,
retails or in corporate structure design, welcome
the “fresh, young” perspective as a point of
differentiation. That’s because such 21st century But cherishing nostalgia is a different subject
disruptive strategies help their cash registers to altogether and always good. There are certain
ring. brands and products such as olive oil, whiskey,
Although the century gap is a real, tremendous camembert cheese, or preserves that have
and 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 be
brands of mass daily usage such as Heinz, Coca nostalgic for gourmet or connoisseur items, I’m
Cola, Cadbury’s, Mr. Clean, Colgate, Evian and not questioning that at all.


Shining’s market research techniques for 8 socio-behavioural
clusters
It’s socio-behavioural clusters that apply today as we at Shining Consulting have
identified, and created a master research methodology for. Historically, social
stratification from feudal agrarian to socio-economic classifi cation followed an
evolutionary process.
But socio-behavioural clusters that defy all predictable segmentation parameters is the
revolutionary way of researching to measure people’s attitudes, behaviour, motivation
and aspiration in the 21st century.
Using Shining’s proprietary tools to fi nd the 8 socio-behavioural clusters, we have
studied this phenomenon every year for the last 10 years and fi nd they are common to
the 3 generations.
We have some non-conformist techniques too, such as suddenly calling for customer
interaction in a coffee shop or the marketplace, without any bias or preparation, to
spontaneously identify different socio-behavioural clusters. Quantitatively we have
verified 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


This is the way Shining does research in uncommon
areas to unearth the shock of the new

Anuradha researching in the retail store with Renee defining the latent trend in the Satchidananda observing rural india
shoppers store with shoppers

At the Apple store in Soho, New York, we study how the three generations get involved with digital technology

We observe how even a woman who carries Louis Vuitton In Tokyo, we watch how techies with wi-fi access in front of a
bag interacts in Apple’s 5th Avenue, New York store large electronic store get engrossed in the digital world

Interacting with the children at a school gate in We even spend time in entertainment areas to We observe shopper behaviour
Germany to understand their trendy desire evaluate behaviour of the three generations inside a Singapore mall


How do the 3 generational groups fit with the
8 behavioural clusters?
Digital Zappers supremely infl uence everything, so connecting to them is crucial for the future. The
Compromise generation tries hard to follow Digital Zappers to be trendy and “with it” but don’t quite
get there as they are a bit “stuffy.” They also feel compelled to satisfy their seniors, so they are truly
Compromised in their attitude.
The Retro generation
is generally quite “stiff.”
Their complaint is that
their grandchildren have
lost the human touch, they
are always equipped with
ear phones, in front of
computers, never talk even
on the mobile phone, they
just send text messages.
The open minded among
the Retro would love to co-
opt some infl uence of the
Digital Zap, but this number
is very low. You may not find many Retros in the Flamboyant, Gizmo lover and Techy socio-behavioural
clusters.

Is income a factor for audience segmentation?
For any business, if you follow the traditional socio-economic stratifi cation of customers, you will not
go far today. That’s because the 8 socio-behavioural clusters are prevalent across all age groups and
generations, all income groups and across Every brand cannot attract every socio-behavioural cluster
all countries and cultural systems. Income
Connects to Critical, Flamboyant, Novelty
is no longer a key factor for purchase of seeker, Techy and Gizmo lover
mass products.
Connects to Sober, Low key, Value seeker
The world is moving towards a situation and Critical
where, at any price point, there has to be
Connects to Sober, Low key, Value seeker
cost, quality and aspiration in the selling and Critical
proposition. Today, even low cost products
have trendy aspects. Expensive luxury Swatch watch addresses all 8
brands that low income groups cannot socio-behavioural clusters

afford should not be advertised in mass
areas. A few brands corresponding to different clusters


In fact, when luxury brands advertise like mass
products, they lose their coveted worth.
Every brand cannot attract every socio-
behaviour cluster. For a brand to address all the
8 socio-behavioural clusters, it requires a huge
magnifying glass. It has to very clearly unearth the
customer behavioural clusters and drive strategic
planning accordingly.
There will be immense pressure from low cost
trendy 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 the
strategy that Swatch watch has created in the West has been so brilliant that it enviably touches all
behavioural clusters. I am sure Swatch will follow the same path in developing countries too.

Developed countries bulldoze per capita consumption

Nicole is confused with multipleofferings in food benefit


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 of
for increase in per capita consumption. Just business. If you take flat television sets, all the
look at how many types of product benefits the brands look more or less the same; so do DVD
food 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 of
many others. Does this not confuse Nicole as a
differentiation also because the thinking process
customer?
of Compromise and Retro generations is not
It is amazing that when technology is zipping connected to the Digital Zap mentality.
change through so fast, there is absolute

Nightmare of how to penetrate in developing countries
An illustration using the India market
The over-riding phenomenon in developing how to reach the billions in remote places.
countries is how to achieve penetration Another challenge is to understand and
for a product or service. As population is cater to the vast cultural differences of
huge in these countries but infrastructure customers at large.
readiness generally poor, the nightmare is

Unscanned open market, all unbranded products, high conversion Mall: Scanned market of branded products with low conversion


From one joint family structure to
7 different living conditions

Young couple Bachelors living alone

Nuclear family: Only husband working Bachelors living alone

Joint family Nuclear family: Retired couples Husband-wife working with children

Neo-joint family Retired couples


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 1999

Family composition in India determines multiple things that
are very significant for business growth
Family size cues the quanity / size of It gives an idea of what products to
the product bundle as special offers

It clarifies SKU size for efficient supply It helps to maximize space at he retail
chain management as per the catchment requirement

It indicates the price band and It provides high proximity to different
sharpens the inventory family size buyers and the retailer


became the prevalent norm. Suddenly in the 21st
Connect human micro detailed century, digital media has spread rampantly and
behaviour 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 around
and their many colonies across the globe. The the world. This great, global social cauldron has
social 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 and
countries releasing their hold over others whom income groups have developed attitude and
they called third world countries and later behavioural stances. So business and research
changed semantics toemerging countries. agencies can no longer gauge a person’s
spending capacity based on the old parameters
For conducting market research to understand
of income, education or geography.
customers, socio-economic classifi cation

Grab the diverse world resume

You can’t use the same research
dough to create different pasta
shapes


What do researchers have to ...Just mine
psycho-socio
do differently because of
shock of the new
socio-behavioural clusters?
esearchers should always have a movie
camera in the pocket, and observe and absorb
how customers act in different occasions. In
customer interactions, researchers have to act
as though they are stupid. This way they can
get the customers to talk and explain at length
and extract the real essence, instead of just
conducting preconceived, structured research.
At Shining Consulting we have defi ned research
to be in 3 steps: Exploratory, Orientation and
Convergence. Experiential research with any
product or service very strongly gives the socio-
...Global window,
behavioural dimension. I have very often seen
researchers go to the market for validation with local mind,
very strong preparation. So before customers latent desire
talk, they already establish what they want to
find. This is not right.
Research stimuli have to be visual and riveting
Let me reiterate that without delving into the to extract the latent, and not just be marketing
psycho-socio-behavioural context, the diverse blah, blah... Just remember, the shock of the new
world of the 21st century will certainly pass is here to stay with us as our constant, every
us 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 dough
that you can put in a machine to get a variety of
different 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

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