Building successful brands hinges on applying social media insights at every stage of the brand lifecycle. This white paper outlines 5 ways to effectively employ social media to drive positive brand equity and ultimately refine your strategy to create deeper, emotional engagement with your consumers.

1. DELIVERING ON
THE PROMISE
FIVE WAYS TO DRIVE BRAND
EFFECTIVENESS WITH
SOCIAL MEDIA
WHITE PAPER

2. DELIVERING ON THE PROMISE
FIVE WAYS TO DRIVE BRAND EFFECTIVENESS WITH SOCIAL MEDIA
With 80% of American adult Internet users actively This new network paradigm means that companies
engaging with each other and brands online, the must be smarter than ever about how they engage
importance of social media is hard to overstate with consumers. The days when companies could
(Figure 1). Malcolm Gladwell, bestselling author tightly control brand messaging and progress
of The Tipping Point and Blink, describes today’s consumers along a linear purchase funnel have
socially networked world as the greatest paradigm ended. Consumer decisions and behaviors are
shift since the rise of the Baby Boomers in the increasingly driven by the opinions, tastes and
1970s. “What we have today,” Gladwell said at preferences of an exponentially larger, global
Nielsen’s 2012 Consumer 360 conference, “is pool of friends, peers and influencers. Consumer
a set of people whose default proposition is Packaged Goods (CPG) marketers now share
not the hierarchy, but the network. And what is control of the brand’s essence, image and voice.
the network? It is people looking horizontally Brand objectives and success metrics need to be
rather than vertically for information. It is open, re-imagined. According to Forrester Research,
not closed; flexible, not disciplined; and it is 92% of marketers believe that social media has
decentralized, not centralized.” fundamentally changed how consumers engage
FIGURE 1: HOW PEOPLE USE SOCIAL MEDIA TO ENGAGE WITH BRANDS: GLOBAL ADULT INTERNET USERS
SOURCE: 2012 NIELSEN GLOBAL SURVEY
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3. NM INCITE WHITE PAPER | DELIVERING ON THE PROMISE
with brands and 93% believe that marketers need to reinvent
brand building strategies to effectively engage with their “Consumers and
consumers.
In these times of change, marketers and executives are grasping
brands are co-evolving
for familiar notions of Return On Investment (ROI) to bring
order and to make sense of the unfamiliar, uncharted and
and moving at a very
seemingly uncertain world of social media. However, before
asking the blanket question “What is the ROI of social media,”
rapid pace. We need
marketers should first disaggregate social media’s impact across
marketing activities. Each social media use-case requires its own
to learn faster and
consideration. For paid social media (e.g., ads on Facebook or
Twitter), ROI is a meaningful metric. However, it is not as relevant really leverage our
for other use-cases such as applying social media to generate
insights for new product ideation, segmentation or messaging. digital relationships
The risk of relying too heavily on ROI for all social media use-
cases is missing significant opportunities to improve effectiveness
with consumers. Social
across the brand lifecycle. The focus on ROI can be balanced with
a more practical question: “What can I do today to drive brand
media plays a big role.”
effectiveness using social media?”
- Joan Lewis, P&G
IMPROVING END-TO-END BRAND
Lewis and others have articulated a compelling vision for social
LIFECYCLE EFFECTIVENESS WITH SOCIAL
media in market research, recognizing its potential to build
MEDIA
relevant and differentiated brands and strong emotional bonds
Building successful brands hinges on applying social media with customers. Today’s most innovative CPG marketers realize
insights at every stage of the brand lifecycle. According to P&G’s that social media insights can be used in new ways to inform
Joan Lewis (Global Consumer and Marketing Knowledge Officer), decision-making at every stage of the brand lifecycle, from initial
FIGURE 2: ROLE OF SOCIAL MEDIA IN THE BRAND LIFECYCLE
IDEATION LAUNCH IN MARKET
• Understand and reach target
segments*
• Understand the role of social media
• Recognize category and consumer • Plan and execute successful
in the the Consumer Decision
trends new product launches
Journey
• Identify unmet needs and white • Complement survey research’s • Measure emotional resonance
space opportunities asking with social media’s listening* and differentiating attributes
* MAY APPLY TO ALL STAGES IN THE BRAND LIFECYCLE
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4. trend spotting and ideation all the way to measuring FIGURE 4: SAMPLE BLOG POST AND TWEETS ABOUT CURLY HAIR
ongoing brand health (Figure 2).
Naturallycurly.com
This approach is so powerful precisely because
consumers are expressing their opinions and preferences
for their own ‘decision journeys.’ They write and read
blog posts about emerging needs and desires unfulfilled
by current products. They ask questions during the
‘consideration’ phase and tweet about their post-
Twitter.com
purchase experience. Consumers are scattering digital
breadcrumbs, highlighting their journeys, and marketers
have a unique opportunity to connect these dots and
boost brand effectiveness.
FIVE WAYS TO DRIVE BRAND
EFFECTIVENESS WITH SOCIAL MEDIA
How can you surface fresh, meaningful insights that
shape brand strategy and result in deeper consumer
engagement? No matter what tools, processes, systems elated discussions, CPG marketers should tap into category-
r
and capabilities your organization possesses, there are five level conversations. As Figure 3 illustrates, there are over
proven techniques for achieving maximum brand effectiveness 20 times more messages about general hair care than about
with social media: specific hair care brands. Analyzing unbranded conversations
1. Broaden your scope beyond brands to categories and reveals unmet needs, provides fodder for new product
segments. development and innovation, and helps marketers craft
marketing messages that resonate with the authentic voice
While it is important to manage and grow positive brand-
of the customer.
FIGURE 3: SOCIAL MEDIA MESSAGES ABOUT HAIR CARE (U.S.) t is also important to take advantage of the full panoply of
I
(JANUARY 2012 - JUNE 2012) social media sources. While Facebook and Twitter account
for the lion’s share of social media messages, blogs and
2.3 MILLION
boards often contain richer content laden with deeper
insights. As an example, consider the hair care messages
in Figure 4, culled from naturallycurly.com and Twitter.
The implication is that each social media type has a unique
24x advantage depending on the marketing use-case.
2. Take segmentation to the next level.
n today’s social world, marketers win by developing a
I
more intimate, nuanced understanding of the customer.
Segmentation has never been more important and social
90,000
media can significantly enhance your approach.
BRANDED NON-BRANDED There are two important considerations to keep in mind.
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5. NM INCITE WHITE PAPER | DELIVERING ON THE PROMISE
he first consideration is whether you are using social to
T f
orums and other social networking sites. The questions here
learn more about your existing segments or to uncover are more about identifying and understanding the value of your
‘organic’ ones. As consumers self-segment in social media most engaged fans. However, your online communities will
(e.g., sophisticated city moms on urbanbaby.com), you are always represent just a fraction of the overall market. You still
likely to discover consumer groups that represent untapped need to develop an in-depth understanding of what makes the
opportunities for brand and product extensions. In the case broader category segments tick.
of new or expecting moms, for example, you might find
3. Benchmark yourself relative to ‘expected’ outcomes.
organic segments like “the sage,” “the nervous nelly” and “the
fashionista.” You can identify each segment’s needs, quantify efining, measuring and tracking performance metrics for
D
the market opportunity and determine the right approach for social media is critical for activating your online communities.
influencing each segment. Size, reach and level of engagement constitute a basic but
critical starting set of social media metrics. The important
The second consideration is related to your business context. point is not to dwell on absolute numbers (e.g., how many
For businesses selling or marketing directly to consumers, Facebook fans do I have?). The real question is how many
social media segmentation improves your ability to profile your Facebook fans or Twitter followers should you have? A brand
best customers, determine what and when they are most likely will have an ‘expected’ level of social media performance given
to purchase next, and find others like them. And while most its size, segments, customer satisfaction scores, ad spend and
CPG companies do not sell directly to consumers, they still many other variables. Figure 5 illustrates how benchmarking
have a vested interest in understanding their end consumers relative to expected outcomes provides true insight into brand
and in activating their online communities on Facebook, Twitter, performance. In this example, there is a clear relationship
FIGURE 5: FACEBOOK FANS FOR MAJOR U.S. COSMETICS BRANDS ARE CLOSELY CORRELATED TO ADVERTISING SPEND
4.0
BRAND B - MORE FANS
3.5 THAN EXPECTED GIVEN
AD SPEND
FACEBOOK FANS (MILLIONS)
3.0
2.5
BRAND A - FEWER FANS
2.0
THAN EXPECTED GIVEN
AD SPEND
1.5
1.0
0.5
0
0 50 100 150 200 250 300 350 400 450
2011 AD SPEND ($ MILLIONS)
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6. between advertising spend and Facebook fans for major that matter for your categories, brands and target customers.
U.S. cosmetics brands. Evaluating actual to expected Marketers can rigorously track brand performance along
performance, Brand A is significantly underperforming each emotional dimension using an emotional taxonomy.
relative to its peers at that level of ad spend. Conversely,
Brand B is able to generate outsized social media he taxonomy enables you to quickly determine where your
T
performance at a very low level of ad spend. brand is succeeding or struggling, identify and respond
to competitive threats, and differentiate your brand in
4. Create an emotional taxonomy. a crowded product landscape. An emotional taxonomy
onsumers today have an abundance of product choices,
C enables marketers to take the pulse of their brands and
and increasingly, the lines of functional differentiation have their customers, and forge durable bonds. The emotional
blurred (e.g., virtually all laundry detergents are colorfast, taxonomy illustrated in Figure 6, for example, would help
so having a colorfast detergent is not going to set your brand marketers understand that Brand 3 excels at making
apart in the mind of the consumer). Creating emotional consumers feel sexy, beautiful and luxurious, while Brand 1
engagement between your brands and your consumers has leads at making consumers feel healthy, clean and energized.
become the key to success. According to former PG CEO
5. Tie social media to existing tools and processes.
A. G. Lafley, “In an environment in which consumers and
retailers have more choices than ever, the capability to build inally, remember that social media is, in large part, an
F
lasting bonds separates brands.” If emotional engagement is amplifier of other media channels and strategic initiatives.
the key to success, then measuring the emotional resonance Be sure to integrate social media measurement and analysis
of your brands is vital. The first step is to define the emotions into the tools you already use to manage your business. The
FIGURE 6: HAIR CARE EMOTIONAL TAXONOMY: HOW PEOPLE FEEL
CLEAN
SPORTY SEXY
ENERGIZED CAREFREE
CONFIDENT SOPHISTICATED
LUXURIOUS BEAUTIFUL
WHOLESOME PURE
HEALTHY
BRAND 1 BRAND 2 BRAND 3 BRAND 4
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7. NM INCITE WHITE PAPER | DELIVERING ON THE PROMISE
emotional taxonomy described above is a perfect example. The synergy between social media and brand equity tracking
Rather than create the taxonomy from scratch, design it is just one example; social media can and should also be tied
as a complement to your existing brand equity tools. This to tools and processes used throughout the brand lifecycle.
enables marketers to achieve real-time equity tracking, and Social media is a vital input and/or complement to new product
brings immediacy and agility to what has historically been an innovation processes, media mix modeling and traditional
annual or semi-annual evaluation process. Complementing survey research.
traditional brand equity monitoring with a social media
• • •
taxonomy empowers marketers to understand what is
driving changes in brand equity values and to react quickly Social media has become integral to the way consumers
to risks and threats. Social media can also be used to refine engage with brands today. There is a clear imperative
traditional brand equity studies. It can help marketers for CPG marketers to harness the power of social
rewrite questions using the consumer vernacular, or build media insights at each stage of the brand lifecycle. The
out additional emotionally relevant attributes uncovered approaches outlined in this white paper have been proven
through social listening. out by innovative, global CPG marketers. The time is right
for applying social media to achieve brand success in
today’s social world.
About NM Incite
Global Fortune 1000 marketers rely on NM Incite solutions to discover emerging, industry-specific consumer insights and build
relevant, differentiated and emotionally engaging brands. NM Incite customers are innovative, global marketing executives in brand
management, consumer insights and market research at leading Consumer Packaged Goods, Financial Services, Healthcare and
Technology companies. They understand that winning in today’s social world hinges on developing deeper and more provocative
consumer and market insights to create superior marketing strategies, boost brand strength, develop new products, innovate in
customer care and maximize the impact of marketing campaigns.
NM Incite is a joint venture between Nielsen and McKinsey Company, bringing to bear deep expertise in measurement science
and management consulting. As one of the largest global leaders in applying social media to solve marketing problems, NM Incite
operates in over 30 markets, including the United States, Canada, United Kingdom, Germany, China, India, Japan and Australia.
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