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The face of today’s consumer And how the shift in their behavior demand business to modify the way we work
what they say The next 5 years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked. Business may get squeezed unless they can successfully implement consumer, business model and business design innovation. IBM Global Business Services - 2009 Conventional media which used to be really close to us, is now competing with new media with digital base and relying on internet social power. Facebook grows nearly 700% compared to last year, Twitter grows 3700% from 2008. Internet penetration in Indonesia is now 17%, with 30% of them spending more than 2 hours a day on the internet. That’s three times more than Singapore’s population. Numbers based on Nielsen News – December 2009
The way people behave and interact are the key driver of this shift the concept of friendship instant (and overwhelming) information business are no longer the lawmaker New social network push boundaries of interaction. Whereas social networking used to be defined as “warm bodies” or physical interaction, nowadays it extend to cyber interaction and online mass minglers that close the boundary of space and intensify diversity Full fledged field research, libraries and 1000 pages dictionary is so last century. People nowadays can get information they need within seconds-and most of the time even more than they need!. With the ease of social interaction and information gathering-consumer becoming more informed thus have bigger control over what they buy and where they buy it from.
We call them “Generation C” A massive movement of younger generation that are increasingly have control over what they buy, why they buy and where they buy it from (long gone the days of business bullying consumer through TV ads) through utilization of various real time information sources. They expect the brand to have “content”, not just through stories and images behind the brand but also consumer generated content - they expect business to help them tell their “status stories” to the world. They define what we do, and they do it themselves.  Content. Control. Celebrity
The main characteristics of generation-c require business to take interactivity to the next level ,[object Object],[object Object],[object Object],Crowd sourcing control content celebrity next level  transparency needs Business feedback Status stories
Brand is an investment in consumer’s heart. To invest, first thing needed is trust "Recommendations by personal acquaintances and opinions posted by consumers online are the most trusted forms of advertising globally. The Nielsen survey shows that 90% of online consumers worldwide trust recommendations from people they know, while 70% trust consumer opinions posted online. "  Nielsen Publication – August 2009 REVIEWING IS THE NEW ADVERTISING! businesses have to understand and accept that consumers’ decision making processes, which ultimately come down to whether they will buy from you or from someone else, have truly shifted to a new, powerful peer-to-peer arena. control
Transparency triumph on the go: Trip Advisor case The result: 20 million  visitor/month,  5 million  registered users,  7 million  reviews and opinion, covering  23,000  cities and  180,000  hotels ,[object Object],[object Object],[object Object]
Transparency triumph on the go: What does Chief Blogger, Director of Digital Care, and Corporate Twitterers do?
Once trust is gained, then it takes two to tango! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],control content celebrity
Crowdsource essence is the emergence of mass mingling – the rest are just human nature "When we examine people’s full personal network – their strong ties and weak ties – internet use in general and use of social networking services such as Facebook in particular are associated with having a more diverse social network. Again, this flies against the notion that technology pulls people away from social engagement."  Pew Research Center & American life project - 2009 ,[object Object],[object Object],Mass mingling consumer business synergy
Crowdsource on the go: various applications Flashmob  is a large group of people organized via social media or viral emails who assemble suddenly in a public space, perform an unusual action for a brief time, then quickly disperse. One of the notable flashmob is frozen grand central, where around 200 people froze in place at the same exact second for five minutes in Grand central, New York.  Imagine the viral power of this! Ideasculture,  an Australian creative firm puts creative thinkers around the globe to work via twitter to solve’s client problem by the next morning. The firm post a “challenge” via twitter and people can post the solution for money rewards. Time to start thinking in 140 characters! ;) MyFootballClub  aim to buy professional football club through crowdsourcing. Consumer can register and commit to pay GBP 35 as soon as 50,000 people joined. This will create a purchase fund of GBP 1,375,000 plus GBP 375,000 for staffing and running MyFootballClub b2c is no longer enough – nowadays we need b2c2b!
Investment attractiveness pertains as long as it’s relevant and respond to ever changing investor’s need Business are required to stay ahead of change. The key is to create experience, relationship and products that continually evolve in response to consumer dynamics. Brand story is also essential – and it’s not just about how the brand communicate but also about how a product can help communicate story of its consumers control content
To fuel the experience, business needs to be clear, generous and flexible CLEAR Talking in consumer’s language. Native language is one, but to talk in terms that are most familiar with them is a different thing. Learn to “speak” online-show them you know what they’re excited about!.  GENEROUS Storytelling, another holy grail in the wonderful world of marketing. But how about companies no longer inudating consumer with their “brand stories”, but instead helping consumer tell a story to another consumer. Thus, a consumer “social currency” would yield a “social dividend” from their purchase of a product.  FLEXIBLE Consumer would only involve themselves on things that are relevant to them. A product experience and communication need to keep up with the pace of consumer dynamics - more specifically, consumer nowadays who thinks that 24 hours is not enough and expect products to fulfill various needs in one go!
24 hours is not enough: the consumer experience Less than half of consumers across 17 countries are satisfied with their work-life balance. Various commitments and demands from work and personal/family life have contributed to the feeling of time-deprivation. People are looking for speed and convenience and anything that allows them to feel more in control of time   Data Monitor – August 2009 28 percent of June 2009 shoppers describe themselves as "preferring to spend more if it saves them time." This was up from 23 percent in May. Additionally, the number of customers (28 percent) who responded that "saving money by shopping around" was their top preference fell from 33 percent the month prior.  M/A/R/C Research and Integer – August 2009 Nearly half of all women (47 percent) said the big stress in their life is the demand on their time. 45 percent said they don't have "enough time for me."   Boston Consulting Group – August 2009 New energy drink product launches increased by more than 110 percent from 2004 to 2009, boosting sales in that sector during the same time-frame by more than 240 percent.  Mintel – August 2009
Instead of providing long-winded explanations of camera features on paper like a lot of other brands, Leica built a “pixel dog” out of Lego to promote its new  Leica D-Lux 3  digital camera. The aim of the campaign was to demonstrate how ill-defined objects can look when you don't use a high definition camera like the Leica D-Lux 3 Meister Camera. Again, speak their language. status stories on the go: clear and generous New York based snacks has launched an effort to remind people to be kind. Those whose interested can get a KINDED card online. Next, they perform some kind act to someone, and pass the card to recipient of their generosity. What’s cool is the card is equipped with a unique code that can be mapped online, enabling participants to track how far their chain of kindness travel and view kind acts happening around the world. In the end, the brand promote itself by letting consumer telling their KINDED stories. Dutch fashion “Wickd” combines clothing and 2D barcode. Every shirt has a unique code that the wearer can link to his personal website. Using a cell phone camera, people can take picture of the code which will be linked directly to the related site. With this, first date would no longer look the same anymore..
status stories on the go: flexible Guiness, celebrating its 250 years anniversary, give consumer a chance to choose 1 out of 3 “once in a lifetime” experience-which include a space shuttle flight, submarine party, and having black eyed peas perform personally for them. It’s all about redefining luxury, in the end-what constitutes luxury is what constitutes scarcity. Aqua is a pop-up temporary night club opened in Singapore created from “fold-out transformer units”. It was placed in various places in Singapore for a limited period of time-giving the sense of exclusivity to the consumer, while also surprise and delight them with fresh, engaging experience in the right location. Shopsavvy,  an Android app, allows the user to scan almost any barcode using the phone’s camera, and it will then search over 20,000 online and local retailers to find the best price. Once the best deal has been found, users can either purchase online, or use the phone’s built-in Google Maps feature to find their way to the store
How it all fits together: the tale of TCHO TCHO is a US based chocolate manufacturer that embraces the fact that: It has high tech factory capability-unlike most manufacturers that just melt those heavenly stuff. It communicates it’s state of the art process control & technology, while at the same time create new taxonomy to help people find the type they like the best, be open about their ingredients, and goes beyond fair trade.  They continually evolve the brand through series of BETA brands. These betas (yes, talking about speak consumer’s language!) are distributed to consumers from which they can give feedback that would trigger continuous development of the bar. They won’t settle until they find the perfect blend-and consumer are thoroughly communicated along the way. Thus, from feedback they generate crowds to “tell their stories” and gain status recognition. The hi-tech language is familiar with their target market and the way they response to feedback exhibit excellent transparency
Overview of TCHO’s strategy GEN-C WANTS CONTROL CONTENT CELEBRITY TCHO RESPONDS TRANSPARENCY CROWDSOURCE STATUS STORIES TCHO blog exhibit excellent trasparency through information sharing of their production, the journey of founders, ingredients, etc. Consumer feedback are fully utilized as a means to better their product. TCHO utilize “taste circle” mass minglers by creating BETA brands which they can try for free through TCHO’s “Tryvertising” parties and online. In addition, consumer are fully involve in the business process TCHO try to convey it’s message through terms closer to nowadays consumer-BETA brands says it all The taste circle community allow consumer to share their feedback to the world-allowing them to tell the story of  their “brand” BETA brands continually evolve following consumer feedback-ranging from taste to product design. Thus, consumer have stronger involvement in the brand
What it means for us? Consumer has changed. Face it. They want more control over their decision and more participation to build their “status stories”. It seems impossible to cater this need 15 years ago, but as new forms of media embarks, opportunity now exist to ride along this. Long gone the days where business can easily bully consumer with dilusive proposition. Overflow of information make consumer a smarter spender, and they would value business that exhibit transparency. They need to trust business before putting their “social currency” in the brand. Take interactivity to the next level. Utilize the power of mass mingling. Let consumer grab the feel of ownership to our brand, and when the mass is there, it won’t be that hard to create a powerful viral campaign. Nurture consumer. Be intimate to them. Talk their way, walk their way. Let them tell their status stories more than our brand stories. Keep updated with the latest trend  (not fads)  and find a way to manifest it to our campaign, keep in mind that successful business always go ahead of the trend. Like they say, the best way to predict the future is to invent it.
Thanks

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Face of Today's Consumer: 2010 Trend Review

  • 1. The face of today’s consumer And how the shift in their behavior demand business to modify the way we work
  • 2. what they say The next 5 years will hold more change for the advertising industry than the previous 50 did. Increasingly empowered consumers, more self-reliant advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked. Business may get squeezed unless they can successfully implement consumer, business model and business design innovation. IBM Global Business Services - 2009 Conventional media which used to be really close to us, is now competing with new media with digital base and relying on internet social power. Facebook grows nearly 700% compared to last year, Twitter grows 3700% from 2008. Internet penetration in Indonesia is now 17%, with 30% of them spending more than 2 hours a day on the internet. That’s three times more than Singapore’s population. Numbers based on Nielsen News – December 2009
  • 3. The way people behave and interact are the key driver of this shift the concept of friendship instant (and overwhelming) information business are no longer the lawmaker New social network push boundaries of interaction. Whereas social networking used to be defined as “warm bodies” or physical interaction, nowadays it extend to cyber interaction and online mass minglers that close the boundary of space and intensify diversity Full fledged field research, libraries and 1000 pages dictionary is so last century. People nowadays can get information they need within seconds-and most of the time even more than they need!. With the ease of social interaction and information gathering-consumer becoming more informed thus have bigger control over what they buy and where they buy it from.
  • 4. We call them “Generation C” A massive movement of younger generation that are increasingly have control over what they buy, why they buy and where they buy it from (long gone the days of business bullying consumer through TV ads) through utilization of various real time information sources. They expect the brand to have “content”, not just through stories and images behind the brand but also consumer generated content - they expect business to help them tell their “status stories” to the world. They define what we do, and they do it themselves. Content. Control. Celebrity
  • 5.
  • 6. Brand is an investment in consumer’s heart. To invest, first thing needed is trust "Recommendations by personal acquaintances and opinions posted by consumers online are the most trusted forms of advertising globally. The Nielsen survey shows that 90% of online consumers worldwide trust recommendations from people they know, while 70% trust consumer opinions posted online. " Nielsen Publication – August 2009 REVIEWING IS THE NEW ADVERTISING! businesses have to understand and accept that consumers’ decision making processes, which ultimately come down to whether they will buy from you or from someone else, have truly shifted to a new, powerful peer-to-peer arena. control
  • 7.
  • 8. Transparency triumph on the go: What does Chief Blogger, Director of Digital Care, and Corporate Twitterers do?
  • 9.
  • 10.
  • 11. Crowdsource on the go: various applications Flashmob is a large group of people organized via social media or viral emails who assemble suddenly in a public space, perform an unusual action for a brief time, then quickly disperse. One of the notable flashmob is frozen grand central, where around 200 people froze in place at the same exact second for five minutes in Grand central, New York. Imagine the viral power of this! Ideasculture, an Australian creative firm puts creative thinkers around the globe to work via twitter to solve’s client problem by the next morning. The firm post a “challenge” via twitter and people can post the solution for money rewards. Time to start thinking in 140 characters! ;) MyFootballClub aim to buy professional football club through crowdsourcing. Consumer can register and commit to pay GBP 35 as soon as 50,000 people joined. This will create a purchase fund of GBP 1,375,000 plus GBP 375,000 for staffing and running MyFootballClub b2c is no longer enough – nowadays we need b2c2b!
  • 12. Investment attractiveness pertains as long as it’s relevant and respond to ever changing investor’s need Business are required to stay ahead of change. The key is to create experience, relationship and products that continually evolve in response to consumer dynamics. Brand story is also essential – and it’s not just about how the brand communicate but also about how a product can help communicate story of its consumers control content
  • 13. To fuel the experience, business needs to be clear, generous and flexible CLEAR Talking in consumer’s language. Native language is one, but to talk in terms that are most familiar with them is a different thing. Learn to “speak” online-show them you know what they’re excited about!. GENEROUS Storytelling, another holy grail in the wonderful world of marketing. But how about companies no longer inudating consumer with their “brand stories”, but instead helping consumer tell a story to another consumer. Thus, a consumer “social currency” would yield a “social dividend” from their purchase of a product. FLEXIBLE Consumer would only involve themselves on things that are relevant to them. A product experience and communication need to keep up with the pace of consumer dynamics - more specifically, consumer nowadays who thinks that 24 hours is not enough and expect products to fulfill various needs in one go!
  • 14. 24 hours is not enough: the consumer experience Less than half of consumers across 17 countries are satisfied with their work-life balance. Various commitments and demands from work and personal/family life have contributed to the feeling of time-deprivation. People are looking for speed and convenience and anything that allows them to feel more in control of time Data Monitor – August 2009 28 percent of June 2009 shoppers describe themselves as "preferring to spend more if it saves them time." This was up from 23 percent in May. Additionally, the number of customers (28 percent) who responded that "saving money by shopping around" was their top preference fell from 33 percent the month prior. M/A/R/C Research and Integer – August 2009 Nearly half of all women (47 percent) said the big stress in their life is the demand on their time. 45 percent said they don't have "enough time for me." Boston Consulting Group – August 2009 New energy drink product launches increased by more than 110 percent from 2004 to 2009, boosting sales in that sector during the same time-frame by more than 240 percent. Mintel – August 2009
  • 15. Instead of providing long-winded explanations of camera features on paper like a lot of other brands, Leica built a “pixel dog” out of Lego to promote its new Leica D-Lux 3 digital camera. The aim of the campaign was to demonstrate how ill-defined objects can look when you don't use a high definition camera like the Leica D-Lux 3 Meister Camera. Again, speak their language. status stories on the go: clear and generous New York based snacks has launched an effort to remind people to be kind. Those whose interested can get a KINDED card online. Next, they perform some kind act to someone, and pass the card to recipient of their generosity. What’s cool is the card is equipped with a unique code that can be mapped online, enabling participants to track how far their chain of kindness travel and view kind acts happening around the world. In the end, the brand promote itself by letting consumer telling their KINDED stories. Dutch fashion “Wickd” combines clothing and 2D barcode. Every shirt has a unique code that the wearer can link to his personal website. Using a cell phone camera, people can take picture of the code which will be linked directly to the related site. With this, first date would no longer look the same anymore..
  • 16. status stories on the go: flexible Guiness, celebrating its 250 years anniversary, give consumer a chance to choose 1 out of 3 “once in a lifetime” experience-which include a space shuttle flight, submarine party, and having black eyed peas perform personally for them. It’s all about redefining luxury, in the end-what constitutes luxury is what constitutes scarcity. Aqua is a pop-up temporary night club opened in Singapore created from “fold-out transformer units”. It was placed in various places in Singapore for a limited period of time-giving the sense of exclusivity to the consumer, while also surprise and delight them with fresh, engaging experience in the right location. Shopsavvy, an Android app, allows the user to scan almost any barcode using the phone’s camera, and it will then search over 20,000 online and local retailers to find the best price. Once the best deal has been found, users can either purchase online, or use the phone’s built-in Google Maps feature to find their way to the store
  • 17. How it all fits together: the tale of TCHO TCHO is a US based chocolate manufacturer that embraces the fact that: It has high tech factory capability-unlike most manufacturers that just melt those heavenly stuff. It communicates it’s state of the art process control & technology, while at the same time create new taxonomy to help people find the type they like the best, be open about their ingredients, and goes beyond fair trade. They continually evolve the brand through series of BETA brands. These betas (yes, talking about speak consumer’s language!) are distributed to consumers from which they can give feedback that would trigger continuous development of the bar. They won’t settle until they find the perfect blend-and consumer are thoroughly communicated along the way. Thus, from feedback they generate crowds to “tell their stories” and gain status recognition. The hi-tech language is familiar with their target market and the way they response to feedback exhibit excellent transparency
  • 18. Overview of TCHO’s strategy GEN-C WANTS CONTROL CONTENT CELEBRITY TCHO RESPONDS TRANSPARENCY CROWDSOURCE STATUS STORIES TCHO blog exhibit excellent trasparency through information sharing of their production, the journey of founders, ingredients, etc. Consumer feedback are fully utilized as a means to better their product. TCHO utilize “taste circle” mass minglers by creating BETA brands which they can try for free through TCHO’s “Tryvertising” parties and online. In addition, consumer are fully involve in the business process TCHO try to convey it’s message through terms closer to nowadays consumer-BETA brands says it all The taste circle community allow consumer to share their feedback to the world-allowing them to tell the story of their “brand” BETA brands continually evolve following consumer feedback-ranging from taste to product design. Thus, consumer have stronger involvement in the brand
  • 19. What it means for us? Consumer has changed. Face it. They want more control over their decision and more participation to build their “status stories”. It seems impossible to cater this need 15 years ago, but as new forms of media embarks, opportunity now exist to ride along this. Long gone the days where business can easily bully consumer with dilusive proposition. Overflow of information make consumer a smarter spender, and they would value business that exhibit transparency. They need to trust business before putting their “social currency” in the brand. Take interactivity to the next level. Utilize the power of mass mingling. Let consumer grab the feel of ownership to our brand, and when the mass is there, it won’t be that hard to create a powerful viral campaign. Nurture consumer. Be intimate to them. Talk their way, walk their way. Let them tell their status stories more than our brand stories. Keep updated with the latest trend (not fads) and find a way to manifest it to our campaign, keep in mind that successful business always go ahead of the trend. Like they say, the best way to predict the future is to invent it.