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Emerging Trends In
Consumer Behavior

   Anand Varadarajan
Presented at SSIM, Hyderabad
What's In It For You?
•          A brief look at:
            –    Social Media
            –    Brand Advocacy
            –    Brand Buzz
•          Emerging Consumer Behavior
•          Positive and Negative Brand Advocacy
•          Brand Websites
•          Campaigns with Human Touch- Sony Case Study
•          Companies using Social Media
•          Brand Buzz Measurement- Tarceva Case Study
•          Brand Association Map (It's a Trade Secret )

08/07/09                                                  2
Problem Definition- 1




       Consumers see thousands of commercial
     messages every day. They ignore almost all of
     them. How can brands possibly break through
                     the clutter?




08/07/09                                             3
Problem Definition- 2




           How can brands capitalize on the layers of
             complexity getting added to the media
                    environment everyday?




08/07/09                                                4
The Solution




           Let consumers help create the message




08/07/09                                           5
Consumer of the Past




08/07/09                          6
Modern Consumer




08/07/09                     7
Mobile Commerce
           In Control: Mobile Commerce




08/07/09                                 8
Technology Savvy: E- Commerce
               E- Commerce




08/07/09                            9
Convenience Seekers
              Ready-To-Eat Foods




08/07/09                           10
Aspirational




08/07/09                  11
The Modern Consumer: Characteristics


            ●
                Wants to be in control
            ●
                Bold and Expressive
            ●
                Convenience seeking
            ●
                Aspirational




 08/07/09                                12
A Tectonic Shift From the Past
                                      Social Media
                                'Word of mouth' spread through
                                        social networks
                                                                     Consumer
 Brand Association                                                   Generated
                                                                     Advertising
 Attributes associated with
  the brand by consumers                                          Advertising based on
                                                                  consumer perception


  Consumer Buzz                                                       Online
Attention grabbing properties
                                King Consumer                       Communities
  of the brand & cascading                                        Micro community sites;
    impact it can generate                                        Rating & review sites;
                                     Brand Advocacy              Consumer & media blogs

                                'Word of mouth' recommendation
                                    of the product or service
   08/07/09                                                                        13
Consumer Expression   Social Media




08/07/09                                        14
Social Mediascape




                               Source: Ubiquity Media
08/07/09                                       15
Brand Advocacy

    Recommendations from ordinary people are the
    most powerful and credible sources that
    consumers use when considering purchase
    options.
                                     - Jupiter Research, 2007




    An Advocate is someone who tells everyone
    how great your business is.
                                             -Murray Raphel



08/07/09                                                  16
Online Communities




08/07/09                        17
Growth in Social Media




                                Growth in Facebook




       Growth in Wikipedia




08/07/09                        Growth in Twitter    18
Mobile Internet Telephony
                                      Penetration of Mobile Internet




                                                           Source: Nielsen Mobile


The proliferation of smartphones

Compelling consumer experience benefiting from 3G network

Mobile advertising, however, experimental at best- expected to grow at a
furious pace
Factors Prompting CGM




                          Source: 2007 Nielsen CGM
08/07/09                                             20
Positive Brand Advocacy




08/07/09                             21
Negative Brand Advocacy




08/07/09                             22
Patient Advocacy




         Positive patient advocacy for the new
         smoking cessation drug

         Online discussion boards serve as an
         empowering tool for patients

         Patients ask informed questions and
         take control of their health & treatment
Must Stay Credible at All Cost!




08/07/09                                     24
What it Entails for Brand Marketers




                                              Area of focus




                          Source: The Nielsen Company, 2008
08/07/09                                                25
Examples of Brand Websites




08/07/09                                26
Share My Idea




08/07/09                   27
Share My Story




08/07/09                    28
Design the World a Coke




08/07/09                             29
Companies Using Social Media




08/07/09                                  30
@comcastcares on Twitter




                          For better customer service

                          Alternative to jammed
                          inbound call center




08/07/09                                          31
@FlyKingfisher on Twitter



                               Used for Customer
                               Communication

                               Faster response




08/07/09                                         32
Exclusive Facebook Gadgets-
       Cirque Du Soleil


           A performing arts and circus company

           Facebook offers exclusive content
           such as backstage photos and videos,
           interaction with performers and show updates

           Widget determines which shows match the
           mood

           Added 23000 fans around the world
Corporate Blog- Gene Logic




                     More than 300 users
                     on our LinkedIn account

                     Highly targeted audience
                     Has improved marketing
                     campaign effectiveness
Brand Campaigns With Human Touch




08/07/09                      35
Tata Tea 'Jaago Re' Campaign


                           Encourage India's youth to
                           participate in elections


                           Redefined awakening
                           attributes of tea




08/07/09                                            36
TOI- Lead India Campaign



                      Involved people from all over country

                      Made people feel good about their
                      contribution

                      Generated massive buzz
                      and visibility




08/07/09                                                37
The Axe “Call Me” Campaign



                            Audacious and Bold

                            Voices the bold expression
                            of today's youth

                            Massive buzz and offtake




08/07/09                                          38
Consumer Generated Advertising-
        Honda Insight




 Using online buzz topics to create Ad

 Timing of Ads with launch

 Used bloggers' comments on green BG for Eco-friendly
Sony Campaign

       Objective

           ●
               Build branded social community
           ●
               Increase awareness
           ●
               Engage more customers
           ●
               Retain “Innovation Enthusiasts” who value latest
               technological features
           ●
               Increase customer loyalty
           ●
               Increase Sony business



08/07/09                                                          40
Backstage 101




           Digital Darkroom
08/07/09                                      41
Sony Campaign- Results

• Increased repeat visits and new customers
• Increased brand awareness
• Increased customer loyalty and advocacy- 59% customers
    said they would recommend Sony products to family member, friend &
    coworker

• 36% of users bought Sony product compared to 20%
  the previous year




08/07/09                                                                 42
Brand Buzz and Measurement



           Attention grabbing properties of the brand
              and cascading impact it can generate




08/07/09                                                43
Generating Brand Buzz




08/07/09                           44
Bank of China




     Introduced 4 million currency notes to commemorate 2008 Olympics

     Notes snapped up @ 7 times their value

     Customers wanted to frame them as memory
08/07/09                                                            45
Designer Cotton Bag


                     Designed to replace plastic
                     bags

                     Covered by fashion magazines

                     Sold at a premium to its
                     original price




08/07/09                                           46
Measuring Brand Buzz




           Here Comes the Trade Secret!




08/07/09                                  47
08/07/09   Courtesy: Nielsen Online   48
Brand Association Map
 Analysis of consumer communication on the internet



• Obtain directional insights
• Assess competitive attributes and issues
• Determine messaging elements to optimize
  brands




08/07/09                                              49
Generating Brand Buzz-
           Tarceva Case Study

●
    Study conducted by Nielsen Buzzmetrics, New York
●
    Buzz data collected from relevant online patient forums
●
    Tarceva (Genentech) was compared with Abraxane (Abraxis
    Oncology)
●
    Predominantly word-of-mouth discussion data
●
    Level of discussion tracked for 6 months prior to FDA approval
    and 4 months post approval
Generating Brand Buzz-
  Tarceva Case Study
Percentage of Users Discussing Tarceva and Abraxane




 Note: Tarceva n = 2,515 users in lung cancer communities between May 25, 2004 and March 31, 2005;
 Abraxane n = 6,760 users in breast cancer communities between May 25, 2004 and March 31, 2005.
Generating Brand Buzz-
              Tarceva Case Study

   ●
       Therapies with pre-approval buzz resulted in enormous
       increase in post-approval discussion
   ●
       Interest in drugs with pre-approval buzz continued to grow
       several months after their approval
   ●
       The amount of interest was not directly related to the potential
       for the new drug


Conclusion:
   Investment in generating pre-launch buzz, however modest, can lead
   to an exponential increase in the word of mouth a product receives
   once it becomes available to its targeted market.
People don't care how much you know
until they know how much you care - about them and
                   their problems.
                    - Robert Cavett




 08/07/09                                      53

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Emerging Trends In Consumer Behavior

  • 1. Emerging Trends In Consumer Behavior Anand Varadarajan Presented at SSIM, Hyderabad
  • 2. What's In It For You? • A brief look at: – Social Media – Brand Advocacy – Brand Buzz • Emerging Consumer Behavior • Positive and Negative Brand Advocacy • Brand Websites • Campaigns with Human Touch- Sony Case Study • Companies using Social Media • Brand Buzz Measurement- Tarceva Case Study • Brand Association Map (It's a Trade Secret ) 08/07/09 2
  • 3. Problem Definition- 1 Consumers see thousands of commercial messages every day. They ignore almost all of them. How can brands possibly break through the clutter? 08/07/09 3
  • 4. Problem Definition- 2 How can brands capitalize on the layers of complexity getting added to the media environment everyday? 08/07/09 4
  • 5. The Solution Let consumers help create the message 08/07/09 5
  • 6. Consumer of the Past 08/07/09 6
  • 8. Mobile Commerce In Control: Mobile Commerce 08/07/09 8
  • 9. Technology Savvy: E- Commerce E- Commerce 08/07/09 9
  • 10. Convenience Seekers Ready-To-Eat Foods 08/07/09 10
  • 12. The Modern Consumer: Characteristics ● Wants to be in control ● Bold and Expressive ● Convenience seeking ● Aspirational 08/07/09 12
  • 13. A Tectonic Shift From the Past Social Media 'Word of mouth' spread through social networks Consumer Brand Association Generated Advertising Attributes associated with the brand by consumers Advertising based on consumer perception Consumer Buzz Online Attention grabbing properties King Consumer Communities of the brand & cascading Micro community sites; impact it can generate Rating & review sites; Brand Advocacy Consumer & media blogs 'Word of mouth' recommendation of the product or service 08/07/09 13
  • 14. Consumer Expression Social Media 08/07/09 14
  • 15. Social Mediascape Source: Ubiquity Media 08/07/09 15
  • 16. Brand Advocacy Recommendations from ordinary people are the most powerful and credible sources that consumers use when considering purchase options. - Jupiter Research, 2007 An Advocate is someone who tells everyone how great your business is. -Murray Raphel 08/07/09 16
  • 18. Growth in Social Media Growth in Facebook Growth in Wikipedia 08/07/09 Growth in Twitter 18
  • 19. Mobile Internet Telephony Penetration of Mobile Internet Source: Nielsen Mobile The proliferation of smartphones Compelling consumer experience benefiting from 3G network Mobile advertising, however, experimental at best- expected to grow at a furious pace
  • 20. Factors Prompting CGM Source: 2007 Nielsen CGM 08/07/09 20
  • 23. Patient Advocacy Positive patient advocacy for the new smoking cessation drug Online discussion boards serve as an empowering tool for patients Patients ask informed questions and take control of their health & treatment
  • 24. Must Stay Credible at All Cost! 08/07/09 24
  • 25. What it Entails for Brand Marketers Area of focus Source: The Nielsen Company, 2008 08/07/09 25
  • 26. Examples of Brand Websites 08/07/09 26
  • 29. Design the World a Coke 08/07/09 29
  • 30. Companies Using Social Media 08/07/09 30
  • 31. @comcastcares on Twitter For better customer service Alternative to jammed inbound call center 08/07/09 31
  • 32. @FlyKingfisher on Twitter Used for Customer Communication Faster response 08/07/09 32
  • 33. Exclusive Facebook Gadgets- Cirque Du Soleil A performing arts and circus company Facebook offers exclusive content such as backstage photos and videos, interaction with performers and show updates Widget determines which shows match the mood Added 23000 fans around the world
  • 34. Corporate Blog- Gene Logic More than 300 users on our LinkedIn account Highly targeted audience Has improved marketing campaign effectiveness
  • 35. Brand Campaigns With Human Touch 08/07/09 35
  • 36. Tata Tea 'Jaago Re' Campaign Encourage India's youth to participate in elections Redefined awakening attributes of tea 08/07/09 36
  • 37. TOI- Lead India Campaign Involved people from all over country Made people feel good about their contribution Generated massive buzz and visibility 08/07/09 37
  • 38. The Axe “Call Me” Campaign Audacious and Bold Voices the bold expression of today's youth Massive buzz and offtake 08/07/09 38
  • 39. Consumer Generated Advertising- Honda Insight Using online buzz topics to create Ad Timing of Ads with launch Used bloggers' comments on green BG for Eco-friendly
  • 40. Sony Campaign Objective ● Build branded social community ● Increase awareness ● Engage more customers ● Retain “Innovation Enthusiasts” who value latest technological features ● Increase customer loyalty ● Increase Sony business 08/07/09 40
  • 41. Backstage 101 Digital Darkroom 08/07/09 41
  • 42. Sony Campaign- Results • Increased repeat visits and new customers • Increased brand awareness • Increased customer loyalty and advocacy- 59% customers said they would recommend Sony products to family member, friend & coworker • 36% of users bought Sony product compared to 20% the previous year 08/07/09 42
  • 43. Brand Buzz and Measurement Attention grabbing properties of the brand and cascading impact it can generate 08/07/09 43
  • 45. Bank of China Introduced 4 million currency notes to commemorate 2008 Olympics Notes snapped up @ 7 times their value Customers wanted to frame them as memory 08/07/09 45
  • 46. Designer Cotton Bag Designed to replace plastic bags Covered by fashion magazines Sold at a premium to its original price 08/07/09 46
  • 47. Measuring Brand Buzz Here Comes the Trade Secret! 08/07/09 47
  • 48. 08/07/09 Courtesy: Nielsen Online 48
  • 49. Brand Association Map Analysis of consumer communication on the internet • Obtain directional insights • Assess competitive attributes and issues • Determine messaging elements to optimize brands 08/07/09 49
  • 50. Generating Brand Buzz- Tarceva Case Study ● Study conducted by Nielsen Buzzmetrics, New York ● Buzz data collected from relevant online patient forums ● Tarceva (Genentech) was compared with Abraxane (Abraxis Oncology) ● Predominantly word-of-mouth discussion data ● Level of discussion tracked for 6 months prior to FDA approval and 4 months post approval
  • 51. Generating Brand Buzz- Tarceva Case Study Percentage of Users Discussing Tarceva and Abraxane Note: Tarceva n = 2,515 users in lung cancer communities between May 25, 2004 and March 31, 2005; Abraxane n = 6,760 users in breast cancer communities between May 25, 2004 and March 31, 2005.
  • 52. Generating Brand Buzz- Tarceva Case Study ● Therapies with pre-approval buzz resulted in enormous increase in post-approval discussion ● Interest in drugs with pre-approval buzz continued to grow several months after their approval ● The amount of interest was not directly related to the potential for the new drug Conclusion: Investment in generating pre-launch buzz, however modest, can lead to an exponential increase in the word of mouth a product receives once it becomes available to its targeted market.
  • 53. People don't care how much you know until they know how much you care - about them and their problems. - Robert Cavett 08/07/09 53