The Lounge Group tackles the theme of 'challenge' in this months trend report. 'Challenge' is all about brands embracing their own competitive spirit and that of their consumers by taking up different challenges or by challenging themselves whilst creating engaging content.

1. trendreport#3
rugby racing,
designer
bottles,
flower
growing
phones
and pedal
powered
vending
machines/
a lounge
group trend This edition’s theme of ‘challenge’ is all about
brands embracing their own competitive spirit
report on and that of their consumers by taking up different
challenge
challenges or by challenging themselves whilst
creating engaging content.
next

2. Experiential/
Offline Meets Online Challenge:
The Powerade Challenge
Technology such as Radio-frequency identification (RFID) has allowed brands to Lounge view/
create more interesting and appealing challenges that straddle on and offline Technology and the presence of online
worlds. RFID tags are intelligent tracking chips linked up to realtime social leader boards mean that the competitor
can choose a time that suits them to
networks, websites and email. complete the challenge, rather than
The New Zealand based “Powerade Challenge” is a 9km running course in Auckland. Competitors register having set times (as seen previously with
online to receive a RFID wristband, then run the course checking in at Powerade vending machines along the challenge events such as Nike Grid).
So consumers can have further exposure
route. Their time is automatically updated on the Challenge website’s leader board. The brand’s message is
to the brand through vending machine
“go stronger for longer”, so runners also had to push themselves to compete and gauge their fitness against the
sampling en route.
Powerade sponsored All Blacks rugby team.
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©2011 The Lounge Group / theloungegroup.com

3. Digital/
Virtual Challenge:
Desperados “Imagine Your Bottle”
The previous example shows real world challenges with a virtual element. Lounge view/
By being held entirely online, there is no limit to the creativity of brand Crowd sourcing creative activity is both
an efficient way of generating ideas as
challenges and they can also reach a much wider audience. well as creating consumer engagement
Beer Brand Desperados challenged members of “Imagine Desperados” (their online community) to design with a brand. Desperados has added
limited edition bottle labels using an in browser studio. Entrants then submit their designs which are published a competitive element and a measure
in an online gallery and their creations are voted on by other community members with the chance to win of achievement to their crowd sourcing
efforts which gives the consumer further
200 Euros and have their designs made real.
incentive to contribute, increasing the size
of the community.
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©2011 The Lounge Group / theloungegroup.com

4. Social Media/
Fun Challenge:
‘My Experience’ Luna Park, Sydney
Challenges need not be about winning prizes or gaining status. The reward Lounge view/
element or consumers could simply be fun interactions in a fun environment. RFID technology allows for real time
Facebook likes and updates, enabling
Luna Park, a theme park in Sydney, has employed RFID technology to integrate SMS, email, web and consumers to promote the park to their
Facebook into their visitors’ experiences. Visitors register their wristbands online and then compete with their friends online. By incorporating the
friends for their “Extreme O Meter” rating. “Extreme O Meter” element into their
activities, Luna Park builds an online
Users swipe their wristbands before going on a ride and compete with each other to see who can go on the
community of advocates.
most rides. Users can also update their Facebook status as well as upload live ride photography, which helps
to promote the park to a wider audience online. The theme park offers are also sent via SMS throughout the
day, driving additional engagement and loyalty.
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©2011 The Lounge Group / theloungegroup.com

5. Sampling/Experiential/
Personal Challenge:
Activate Pedal Powered Vending Machine
The previous examples all illustrate the thrill of competing with other people. Lounge view/
But how about just competing against yourself? This example grabs attention because of
its unique approach to sampling – making
With the tag line “bring your legs, not your quarters”, California beverage brand, Activate, who sell vitamin the consumer work for the product, rather
infused water, have installed a vending machine in Los Angeles which rewards customers with free drinks. than getting something for free. However,
Every 30 seconds of pedalling earns participants one free bottle of activate. as this challenge is based on physical
activity, it becomes appropriate for a
fitness oriented brand, such as Activate,
to create an immersive, rewarding
challenge-based brand experience.
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©2011 The Lounge Group / theloungegroup.com

6. Viral/
Brand Challenge: Click here
Sony Ericsson Xperia Arc – Challenge the Greenhouse
to check out
the video/
We’ve seen how the previous challenges operate to engage the consumer and Lounge view/
bring them closer to the brand. What about the brand challenging itself in order Sony Ericsson has used challenge as
to communicate that it’s ‘best in class’? a theme for the campaign in which the
phone is hero, challenging its features
Sony Ericsson has developed a new viral campaign in collaboration with McCann Eriksson Munich to and functionality to communicate their
promote their Xperia Arc mobile phone. Six challenges were set for the phone to demonstrate its exceptional superiority in a cluttered market. Their
features and a range of videos document the process and results. Most notably, in Challenge the Greenhouse, outputs as online films creates instantly
Xperia Arc faced its first challenge to make a flower bloom using only the light from its screen. shareable content for consumers.
Further challenges include “Challenge the Driver” and “Challenge the Fast Lane” in which a stunt driver and
skateboarders have their vision obscured and replaced with Xperia Arc screens to navigate bustling cities.
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©2011 The Lounge Group / theloungegroup.com

7. trendreport#3
a lounge
group trend
report on
challenge
‘Challenge’ is a great way to For Consumers: We want to feel special. If a brand
connect with consumers by can relate to us and make us feel rewarded for our
efforts in engaging with them, then we are more
offering both satisfaction and
likely to engage in an ongoing interaction with
reward for making an effort.
them. Without this element of reward, consumers
Ensuring consumers feel a sense
won’t feel inclined to make the effort. Challenge
of personal achievement - provides a raison d’être to engage and can also
leading to further brand give the strong reward element that comes with
engagement, generating word seeking the thrill of the win.
of mouth and greater recall.
For Brands: Offering reward for engagement by
This includes the following: challenging their consumers with competitions
• Providing consumers with a brand experience and events is nothing new. However, often
that brings your brand and/or product values aided by the latest technologies, brands are We’re a creative communications
to life constantly coming up with new and exciting agency with a network of
10,000 consumers at our heart.
ways to connect with their consumers in the form
• Engaging with consumer’s personal ambitions, And we’re passionate about
of challenges. This allows brands to increase understanding their world and
competitive spirit and their desire to achieve connecting with them in the right
the level of engagement that they have with
and win way. If you’d like to know more
audiences through interactivity and therefore about how we do it, email
• Facilitating sharing their experience with friends drives stronger recall and loyalty. sara.gil@theloungegroup.com or
call her on 020 7940 4381.
and family using technology and social networks
theloungegroup.com