brandshare China Results 2014

Presented by Edelman

brandshareTM 2014 © Daniel J. Edelman, Inc .

HOW BRANDS & PEOPLE CREATEA VALUE EXCHANGE

A VALUE EXCHANGE STARTS WITH PEOPLE’S NEEDS

CONSUMER

NEEDS

2

People’s needs have changeddue to an increasingly complex and interconnected world.


CONSUMER

NEEDS

MATCHED BY WAYS BRANDS CAN FULFILL THESE NEEDS

3

BRAND

BEHAVIORS

Actions brands can take to fulfill these new consumer needs.


AND THE DELIVERY OF MUTUAL BENEFIT

BRAND

BEHAVIORS

CONSUMER

NEEDS

4

VALUE

EXCHANGEQuantifiable value exchange based on shared contribution and benefit.


PEOPLEGeneral and influencer consumer populations who report at least a minimal level of engagement* with brands

15,000

IN 12 COUNTRIES

AUSTRALIA

BRAZIL

CANADA

CHINA

FRANCE

GERMANY

INDIA

JAPAN

MEXICO

TECH + ELECTRONICSTELECOMMUNICATIONSFOOD

SOFT DRINKS + COFFEEBEER + SPIRITSCONSUMER HEALTH

CPG/FMCGRETAIL

FINANCIAL SERVICESENERGYAUTOMOTIVE

INDUSTRY SECTORS

30 MINUTE DURATION

BRANDS48 multi-national brands, plus approx. 15 “local” brands per country

199

ACROSS ELEVEN

THROUGH ONE

ONLINESURVEY

5

SECOND ANNUAL BRANDSHARE STUDY

NETHERLANDS

UK

USA


*To participate in the survey, respondents had to report participating in a minimum of one brand engaging activity in the

last 12 months. Brand engaging activities might include things like visiting a brand website, attending a brand sponsored

event, following a brand on Twitter, wearing branded clothing, etc.

CHINA2029 people

Across 27+ metro-regions (controlled, distributed sample)

About 48 multi-national brands, and 18 “local” brands

We talked to

WE COMPARED CONSUMER NEEDS…

6

I can count on the

brand to deliver

consistent products

or services

1

The brand

delivers what

I need from a

product or

service

2

I want to be

associated with

the brand

The brand is an

essential part of

my life

I respect the

company’s

leaders

I feel good about

this company’s

commitment to its

community

I feel the brand

cares about

more than itself

1

2

3

4

5

I feel good buying

this company’s

products or services

6

7

I believe in the

brand’s purpose8

9


TO WAYS BRANDS COULD FULFILL THESE NEEDS…

Shares company history and heritage openly

Openly shares its vision for the future

Is open about company performance and holds leaders accessible

Communicates transparently about how its products are sourced and manufactured

Takes a stand on issues of importance to individual consumers

Offers many ways for consumers to ask questions and share opinions

Is quick to respond to people’s concerns and complaints

Helps people achieve their personal goals

Invites consumers to participate in events and live experiences

Invites consumers to interact online

Invites consumers to represent products and services to their social networks

7

Acts with a clear mission and purpose at its core1

2

3

4

5

6

Invites consumer participation in product development7

8

9

14

13

Uses its resources to drive change in the world12

11

10


AND EVALUATED HOW THEY COMBINE TO DELIVER BUSINESS OUTCOMES

8

Purchase

Recommend

Defend

1

2

3

Share Personal Information

Share Brand Content

4

5


WE LEARNED:

The relationship between brands and consumers is one-sided

And a new consumer need state that drives value

But there is value in meeting emotional needs in new ways

THERE`S LITTLE VALUE IN THE CURRENT EXCHANGE BETWEEN BRANDS AND PEOPLE

10


PEOPLE CONTRIBUTE. BRANDS BENEFIT.THERE IS LITTLE VALUE EXCHANGE.

Shared relationshipOne-sided relationship

66% 34%

11

Q24: Overall, would you say that brands that ask you to share with them (i.e. personal information,

stories, etc.) successfully share with you in return, or is it more of a one sided relationship?

Q25: Do you think brands are motivated to share with you because they have a sincere commitment

to their customers, or because they have a self-centered desire to increase profits?

Sincere commitment to their customers

Brands have self-centered desire to increase profits

70% 30%


CHINESE CONSUMERS ARE MORE POSITIVE TOWARDS BRANDS.

One-sided relationship

42%

12

Q24: Overall, would you say that brands that ask you to share with them (i.e. personal information, stories, etc.)

successfully share with you in return, or is it more of a one sided relationship?

Q25: Do you think brands are motivated to share with you because they have a sincere commitment to their customers, or because they have a self-centered desire to increase profits?


Shared relationship

58%

Brands have a self-centered desire to increase profits

49%Sincere commitment to their customers

51%

BUT THEY STILL WANT MORE VALUE FROM BRAND RELATIONSHIPS

Want more meaningful relationships with brands

84%

24%

Think brands deliver

13

Q9: You will be presented with things that a brand could do to build and maintain a connection with you or

customers like you. For each one tell us if you feel that the brands that you like are currently doing each of

these things too much, just right, or not enough? [% who selected JUST RIGHT or NOT ENOUGH]

Q11: Please select the statements that you feel apply to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing statements applied to [BRAND]}


THE NUMBER 1 BEHAVIOUR IN CHINA IS ABOUT ONLINE INTERACTION

26%

80%

-54

PEOPLE SAY IT IS IMPORTANT

21%

-2041%

Invites people to interact with brands online (i.e. Games, social media)

GAPGAP

14


HOW THEY THINK BRANDS PERFORM

Q5: You will be presented with things that a brand can do to build and maintain a connection with

you or customers like you. Thinking about brands that you like, how important is each of the

following to you? [5-Point Scale, Top 2 Box] Q11: Please select the statements that you feel apply

to [BRAND]. You may select as many or as few as you feel apply. [Average % who stated sharing

statements applied to [BRAND]

THEY ASK REAL CONVICTION FROM BRANDS

24%

68%

-44


19%

-5473%

Takes a stand on issues I care aboutHas a clear mission and purpose at its core

GAPGAP

15








MORE INVOLVEMENT AND SUPPORT…

Helps people to achieve their goals (being a great mom, being healthy etc.)

23%

70%-47

Communicates openly and transparently about how products are sourced and made

19%

57%

-38


GAP

GAP

16













AND GREATER RESPONSIVENESS…

63%

22%HOW THEY THINK BRANDS PERFORM

GAP

-41

PEOPLE SAY IT IS IMPORTANT 66%

23%

- 43

Gives many ways to ask questions and give opinions

Respond quickly to people’s concerns and complaints

GAP

17


EVERY GENERATION DEMANDS MORE VALUE

MILLENNIALS GEN X BOOMER

-54 -62Respond quickly to people’s concerns and complaints -70

-49 -53Communicates openly and transparently about how products are sourced and made -57

-39 -42Gives many ways to ask questions and give opinions -41

-34 -37Invites people to be a part of the development and refinement process -38

-38 -38Has a clear mission and purpose at its core -34

-35 -38Uses its resources to drive change in the world -33

-32 -34Lets people know the company’s mission and vision for the future -34

-37 -38Takes a stand on the issues I care about most -33

18

GAP BETWEEN IMPORTANCE AND BRAND PERFORMANCE


EMOTIONAL AND RATIONAL NEEDS ARE MERGING

19


EMOTIONAL AND RATIONAL NEEDS ARE MERGING

.25 .3 .35 .4.2.15

RATIONAL EMOTIONAL

20

.3 .25 .2 .15.35.4

ACTS WITH CLEAR MISSION AND PURPOSE AT ITS CORE

GIVES MANY WAYS TO ASK QUESTIONS AND GIVE OPINIONS

QUICKLY RESPONDS TO PEOPLE’S CONCERNS AND COMPLAINTS

MOST IMPACT LEAST IMPACT MOST IMPACT


SHARE BRAND CONTENT

PURCHASE DEFENDRECOMMEND SHARE PERSONAL INFO

WILL NOT

BRAND BEHAVIORS THAT MEET EMOTIONAL AND RATIONAL NEEDS DELIVER GREATER PURCHASE, DEFENSE AND RECOMMENDATION

21

EMOTIONAL + RATIONALEMOTIONAL

RATIONAL

DEFINITELY WILL

4

5

6

7

8

9

10

3

2

1

+4% +5%

+1%


A NEW CONSUMER NEED STATE HAS EMERGED THAT DRIVES VALUE

22


I feel good about this company’s commitment to its community

23

I feel the brand cares about things other than itself

I believe in the brand’s purpose

FULFILLING SOCIETAL NEEDS DRIVES BUSINESS OUTCOMES


Takes a stand on the issues I care about most

Helps people achieve their personal goals

Invites people to help represent products and services to others

Invites people to be a part of the development and refinement process for products or services

SOCIETAL NEEDS EXTEND BEYOND TRADITIONAL DEFINITIONS OF CORPORATE RESPONSIBILITY AND SUSTAINABILITY

24

TOP FOUR BRAND BEHAVIORS THAT CORRELATE TO CONSUMERS’ SOCIETAL NEEDS


MEETING PEOPLE’S THREE NEEDS STATES COMPOUNDS BENEFIT TO BRANDS

PURCHASE+6%

DEFEND+7%

RECOMMEND+10%

SHARE PERSONAL INFO+6%

SHARE BRAND CONTENT+7%

25

RATIONAL

EMOTIONAL

SOCIETAL


+

+

HOW CAN BRANDS IN CHINA FILL THE GAPS AND CREATE BETTER VALUE EXCHANGE?

26


LISTEN, LEARN AND ADAPT BASED ON WHAT PEOPLE TELL YOU ABOUT THEMSELVES AND YOUR BRAND

PROTECT YOUR BRAND BY INCORPORATING CUSTOMER SERVICE INTO YOUR MARKETING STRATEGY

ALWAYS ON & ALWAYS ADAPTING

OF RESPONDENTS FEEL THEY SHOULD BE ABLE TO COMMUNICATE AND INTERACT WITH BRANDS QUICKLY, IN REAL-TIME86%

27


STORYTELLING: IT`SABOUT THEM.

SUPPORT CONSUMERS IN ACHIEVING THEIR OWN GOALS

PROMOTE YOUR BRAND BY INVITING PEOPLE TO ACTIVELY PARTICIPATE IN WAYS THAT ARE MEANINGFUL TO THEM

28

OF RESPONDENTS THINK IT’S IMPORTANT TO INVITE PEOPLE TO BE A PART OF THE PRODUCT/SERVICE DEVELOPMENT AND REFINEMENT PROCESS%61


ALIGN MARKETING AND CORPORATE COMMUNICATIONS EFFORTS TO ENSURE YOUR STORY IS HEARD AND SHARED

EVOLVE YOUR BRAND TO INCLUDE BOTH BRAND PROMISE AND BRAND PURPOSE

CONVICTION & COMMITMENT

OF CONSUMERS BELIEVEBRANDS MUST HAVE A CLEAR REASON OR PURPOSE63%

29


CONSUMER ACTIONS

CONSUMER NEEDS

RECOMMEND

DEFEND

PURCHASE

30

BRANDBEHAVIORS

RATIONAL

EMOTIONAL

MOVING FROM A TRANSACTION-BASED VALUE EQUATION…


CONSUMER ACTIONS

CONSUMER NEEDS

RECOMMEND

DEFEND

PURCHASE

31

BRANDBEHAVIORS

RATIONAL

EMOTIONAL

SHARE PURCHASE

INFO

SHARE BRAND

CONTENT

SOCIETAL

TO ONE THAT’S DYNAMIC AND MULTIDIMENSIONAL


THANK YOU

Copyright ©2014 Daniel J. Edelman, Inc. All rights reserved. All information contained herein is confidential and proprietary to Daniel J. Edelman, inc. (“Edelman”).

brandshare China Results 2014

Marketing

ways brands

brand website

brand cares

services1the brand

brandthe brand

brands purpose89brandsharetm

brand engaging activity

brand engaging activities