"What to do at a time when consumers no longer trust brands, when marketing is less and less effective and differentiation is rare? Tips on how to address the new marketing paradigm and improve people's lives. Vivaldi is a global strategy firm helping companies address their toughest challenges in driving growth with expertise in brand strategy, innovation, design and cultural transformation. For more information about Vivaldi, visit our website: http://vivaldigroup.com/ "

1. /Founder & CEO of Vivaldi/
Erich Joachimsthaler, Ph.D
APRIL 15, 2010
THE NEW MARKETING PARADIGM

2. CONSUMERS WHO SAY THEY TRUST BRANDS
2
52%1997
25%Today

3. ONLY 14% TRUST ADS
3

4. ONLY 18% OF TV ADS
GENERATE POSITIVE ROI
MARKETING IS LESS AND LESS EFFECTIVE…
4

5. … AND LESS AND LESS
5
Just to add 1% - 2% in sales
100% increase in ad spending

6. Source: BAV Data
RELEVANT DIFFERENTIATION
6

7. Source: BAV Data
RELEVANT DIFFERENTIATION IS RARE
7
Not Relevant
Not differentiatedNot differentiated
and not relevant

8. Three Solutions to the Problem
8

9. On one side is the
Product Benefit Perspective
Technology Innovation
New Designs, Styles
New Variants
Disruptive Innovation
New Technologies
New Product Development
Brand Extension
Design Innovation
In Search of Differentiation
9

10. 10

11. 11

12. Customer Orientation
Segmentation
Customer Delight
Trading Up / Trading Down
Ethnography, Market Research
Customer Satisfaction
Customer Centricity
Voice of the Customer
Listening to Customers
In Search of Relevance
On the other side is the
Consumer Needs Perspective
12

13. 13

14. Solve Something
Enable People
Deliver Value
Help Manage their Lives
Fit Into their Lives
Give People Time Back
14
THE NEW PERSECTIVE
Improve People’s Lives

15. THE ECOSYSTEM OF THE CONSUMER
Goal?
Process?
Decision making?
Products & services?
Let’s improve the economics of the Individual?
15

16. HOW DO YOU FIT INTO THE 1,440
MINUTES THAT YOUR CUSTOMERS
LIVE EVERY DAY?
16

17. Book Unlock Drive Extend Fill-up
HOW TO IMPROVE THE ECONOMICS OF
“TAKING CARE OF MY SATURDAY MORNING FAMILY CHORES”
17

18. 18

19. • 325.000 members
• Available in most major U.S. cities, in the UK as well as in
most major US universities
• 6.500+ cars
• 30 different car makes and models
• Revenue 2009: $130 Mio
• Growing by 30% per year
19

20. Car2Go Daimler
i-Project BMW
Mu Peugeot
Flingster Deutsche Bahn
Velib, Zipcar Private
Autolib French Gov
MOBILITY CONCEPTS ABOUND – KURUMA BANARE
20

21. FRAME THE MARKETING
CHALLENGE
FIRST IMPERATIVE
21

22. The Third Place
$3.84 $1.75
Mom & Pop
Coffee Shop
Coffee Coffee
22

23. WHAT DO PEOPLE DO IN THEIR DAILY LIFE?
Studying
The Third Place
RelaxingShoppingSocializingSurfing the Web
23

24. Sources: Company Annual Reports; Vivaldi analysis
Superior Dryness
Pampers from Procter & Gamble
FRAMING THE INNOVATION AND GROWTH CHALLENGE
24

25. To: My Child’s Development
From: Superior Dryness
“Partnering with you through your child’s
growth”
• New product lines; increased loyalty
• “Kandoo” toddler soaps and wipes: $247
million in year 1
• Pampers.com advisory website for
parents
First price increase in 11 years
First P&G brand to reach $5 billion
Growth increased from +8% to +15% in 15
months
Sources: Company Annual Reports; Vivaldi analysis
25

26. CAPTURE THE ECOSYSTEM
OF THE BUYER
SECOND IMPERATIVE
21

27. THE NEW LOGIC OF BUSINESS
27

28. THE DIGITAL UNIVERSE OF SARA
Kaiser Family Foundation: 8 to 18 years spent 10 hours and 45 min per day on digital media and barely on print at all – that’s two more hours than five years ago.
28

29. Vivaldi Partners Episode Tracker
Your username
Your password
Login
Digital Journaling
EPISODIC RECONSTRUCTION METHOD
30

30. VIVALDI PARTNERS’ DIG – PATTERNS OF USE AND CONSUMPTION BEHAVIORS
1,000 Consumers
10 Episodes a day
30 Days
10 Countries
=
3,000,000 Episodes
The Episode Behavior Database
31

31. "If I had asked my
customers what they
wanted they would
have said a faster
horse."
32

32. ADD VALUE TO THE CONTEST
AND ECOSYSTEM THROUGH
INNOVATION
THIRD IMPERATIVE
33

33. Context
Scope
Attributes
Uses
Quality/Value
Functional
benefits
Brand
Personality
Symbols
Brand /
Customer
Relationships
Self-expressive
Benefits
Emotional
Benefits
User
Imagery
Country of
Origin
Organizational
Associations
Brand
Product
Source: Aaker & Joachimsthaler, 2000, p. 52
Adding value
here
Adding value
here
FROM ADDING VALUE TO THE PRODUCT TO ADDING MEANING VALUE TO THE CONTEXT
Scope
Attributes
Uses
Quality/Value
Functional
benefits
Brand
Personality
Symbols
Brand /
Customer
Relationships
Self-expressive
Benefits
Emotional
Benefits
User
Imagery
Country of
Origin
Organizational
Associations
Brand
Product
34

34. EXTENDED IDENTITY
CORE IDENTITY
High-tech Enhancing
Performance people’s lives
Sports, fitness & health
ESSENCE
AttitudeExciting Swoosh
Provocative Cool
Macho Innovative
Just Do It Athletes
Ekins Culture
THE NIKE BRAND
35

35. NIKE +
WEEKLY ROUTINES AROUND RUNNING
36

36. FOCUS ON RUNNING
37

37. NIKE
Not Just Shoes
Running
38

38. 40% OF VISITORS SWITCH TO NIKE SHOES
39

39. ADD VALUE TO CONTEXTS AROUND ACTIVITIES LIKE:
40

40. 41

41. ADD VALUE TO CONTEXT
Portfolio
Manager
(Customer)
Performance
Management
Research
& Analysis
Trading
Order
Management
Order
Route
Settlements
& Operations
Portfolio
Accounting
Customer
Reporting
Audits
Open
Trader
Trade Route
ESG
Portia
Vestek
Baseline
First Call
I/B/E/S
Datastream
Products  Services -> Experiences  Transformation 42

42. FROM 360 DEGREES
COMMUNICATIONS TO 365 DAYS
COMMUNICATIONS
FOURTH IMPERATIVE
43

43. FROM 360 DEGREES TO 365 DAYS
360 degree Communications 365 days Communications
Integrated Marketing Communications
Context
Product
Brand
Connect
Collaborate
Co-create
Collect
Categorize
Communicate
Collective Wisdom
Customize
Chat
Community
Integrated Value Creation
44

44. No. 3 on Facebook
5 million Google search results
5,000 videos on YouTube
17,000 photos on Flickr
Media spend $300,000
NUTELLA – 365 DAYS COMMUNICATIONS
45

45. 66% of all brand touch points
are now consumer-generated
McKinsey Quarterly, July 2009
FROM MASS MEDIA TO MY MEDIA
46

46. For dry feeling
of the skin
Protects reliably – 24
hours effectiveness
Protects your from
odor and keeps you
smelling great?
AXE
47

47. GIVE MEN THE EDGE IN THE MATING GAME
48

48. Activities in the mating game
A DEEPER EPISODIC UNDERSTANDING OF THE GAME
Prepare Defend Attack Engage
Part Good-Part Bad Moment of First Touch Creative Womanizing
49

49. WHAT MUST WE DO TO HELP GUYS IN ATTACKING
50

50. 51
SOURCE: HELGE TENNØ

51. Frame the marketing challenge
Capture the ecosystem of the buyer
Add value to the context and ecosystem through
innovation
From 360 degrees communications to 365 days
communications
KEY TAKE AWAYS
The New Marketing Paradigm –
Improve People’s Life!
52

52. Thank you!
@ejoachimsthaler
ej@vivaldigroup.com
Erich Joachimsthaler, Ph.D.
/ Founder & CEO of Vivaldi /