2015 earned brand india

Innovation and the

Earned BrandIndia

Consumers are embracing innovation

at a faster pace than ever before…

The Earned Brand | Edelman 2015 | pg 2

And yet they feel the pace of business

innovation is too fast

Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today and select the

response that most accurately represents your opinion. (Not Enough, Too Much) Informed Publics, India. (2015 Edelman Trust Barometer)

The pace of development and change in

business and industry in India today is…

11%

TOO FAST


JUST RIGHT

12%

77%

TOO SLOW


And what can the

rest of us learn

from this?

Why the contradiction?

How are today’s

fastest-growing

brands convincing

consumers to accept

the risks that come

with innovation?

What are

consumers’

real feelings

about innovation?


What is innovation?

A re-imagination of categories,

products, services, operations,

models, design, etc. that

create more value, for the brand

and for consumers

The Earned Brand Methodology

Timing

April – May 2015

Quantitative Online Survey

10 countries: U.S., Mexico,

Brazil, France, Germany, U.K.,

China, Japan, India, Australia

10,000 respondents, nationally

representative of age, gender,

and region based on most

recent country status data

Mobile Diaries

25 millennials, with them on their

mobiles, for 2 weeks, in Brazil,

U.K., India, China and the U.S.


A global survey of

consumer attitudes

toward brand innovation


People believe in the promise of innovation.

Insight 1

Q5P1: Please select the statement from each group that best represents how you feel. (Innovation is just an overused

term, it’s not leading to anything) vs. (Innovation is essential for us today and it’s helping us to progress). Q5P4: Please

select the statement from each group that best represents how you feel. (Innovation is making us more and more like

robots) vs. (Innovation is opening the human spirit). 10-country global total and in India.

Percent who agreed with each statement:

Innovation inspires people

92%

innovation opens

the human spirit

innovation is essential

and it’s helping us

to progress

77%

90%

77%


And they believe that business has

the biggest role to find the next big thing

Q15. Where do you think the next big thing will come from? In India.

Consumers in India

believe the next big

thing will come from…


BUSINESS

44%

INDIVIDUALS/PEOPLE

LIKE ME

84%

43%

ACADEMICS/UNIVERSITIES

They believe that brand

innovation should have big

goals with societal impact

Q14. What do you think the role of innovation is for brands today and in the future? (in the future) 10-country global total and in India.

to improve society

to push our thinking as a society

69%

66%

63%


agree that brand innovation

needs to impact society(one or more of the following)

in9 10

66%

62% 65

%

to let us be one step ahead of other countries

64% 62%

24%

34%

23%

29%

50%

38% 37%42%

26%

42%

Technology Mobile Energy Healthcare Food and beverage Education

But they believe that innovation should come from

industry sectors beyond technology and mobile

Q65: Thinking more specifically about the innovation in the products and services you use throughout your life, what industries do you see

the most innovation in TODAY? Q66: … what industries do you want to see innovation in TOMORROW? In India.

Percent of India’s consumers who say they see innovation coming from each

industry sector today, and who want to see it from each sector tomorrow

INNOVATION GAP

138


13

3

INNOVATION TODAY INNOVATION TOMORROW

WANT LESS TOMORROW WANT MORE TOMORROW

And they question your motives

66%

70%

65%

69%67%

61%

65% 65%67%

62%

65%

Global Australia U.K. U.S. Japan France Germany Brazil China India Mexico

Q14. What do you think the role of innovation is for brands today and in the future? (today) In India.

Percent who say the role of innovation for brands today is “to make more money for the company”:


consumers believe brands are innovating to make more money for the company

in2 3


Insight 2

Consumer acceptance of brand innovation cannot be bought.

It must be earned.

The stakes:Because of their concerns, they’re not buying

Q27. Thinking about the below, please indicate which of the following you feel is happening in the world today. … IMPACT ON PURCHASING

DECISION 1 = Has no impact on what I buy … 4 = Makes me not want to buy something. In India.

say they will not buy

because of their concerns

Percent of India’s consumers who feel that each is happening in the world today,

and percent who say their concerns make them not want to buy something:


90%

Privacy

issues

Being

always onSecurity Environment

1 in 2 have privacy concernsPrivacy concerns are especially strong in

Germany, the U.K., the U.S. and Australia.

66%

74%

61%58% 56%

76%

55%

66% 64%

71%75%

Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.

Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today. 10-country global total

and in India

Percent who feel that each is happening in the world today –privacy issues:


Privacy issues

55%

2 in 5 concerned about having to be always onGermany and Brazil are most concerned; Japan and China are less so.

50%54%

65%

36%

53%

63%

41%

29%

57%

46%

53%



and in India

Percent who feel that each is happening in the world today –

having to be always on:


Beingalways on

41%

Nearly half have security concernsSecurity concerns are highest in Japan and the

U.S., and less of an issue in China.

54%

69%

51%

33%

49%44% 44%

75%

41%

64%

71%



and in India.


your security being compromised:


Security

44%

And the majority have concerns about the impact on the environmentEnvironmental concerns are global, but strongest in Europe and Latin America.

58%61% 62%

52%

62%66%

54% 52%

62%

54%51%



and in India


impact on the environment:


Impact onenvironment

54%


Insight 3

While the promise of

innovation inspires,

people first need

to be reassured.

Consumers are twice as likely to want to be

reassured than inspired by a brand

Q35: When a brand tells me about something, I

want it to… “Reassure me of quality,” “Inspire me”

10-country global total.


people want to be

REASSURED

in2 3

people want to be

INSPIRED

in1 3

We may be innovating,

but we are failing them as marketers

Percent who feel that brands have changed a lot, and proportion who

feel that this is the right or the wrong direction:


say brands are not moving

in the right direction in how

they communicate

in2 3

Q20: Thinking about change in the past 5 years, how do you feel the [ … ] industry has evolved in relation to the following

factors: How brands in this sector…(communicate with me) / (listen to me) // (moving in wrong direction) 10-country global total.

They feel like brands are shouting at them

What brands say doesn’t feel real

Q21: Please indicate how much you agree or disagree with the following statements. (I’m getting bored/frustrated by constantly being told I

need to upgrade/update the products I already have.) (Top 2 box) 10-country global total and in India. Q8P1: The way magazines, the

internet, advertising, can all enhance photos… (Makes me more inspired than ever before by what I see) vs. (Makes me wonder what is real,

and what I should believe) 10-country global total and in India.


57%

because of photo manipulations

in advertisements and online

they don’t know what to believe

are bored/frustrated

by constantly being told

they need to upgrade/update

60%

56%

54%


Insight 4

“I rely on my peers to reassure me. Because their experience is my evidence.”

We’ve always known that peers provide recommendations, but today peers also help convert purchasers

Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and

services you purchase, what impact do they have on you? 10-country global total and in India.

The impact of online/offline conversations about

brands with friends and other people like me:

Build inspiration

Push consideration

Moment

of

Truth

16%

17%

25%

27%

29%

37%

44%

45%

They give me a sense of community

They get me

They push me to try new things

They suggest products/services

They make me trust the brand more

They help me overcome concerns

They help me make decisions

They warn me about the risks


26%

21%

30%

32%

38%

50%

50%

41%

The channels consumers rely on to be reassured are peer-to-peer, rather than brand-to-consumer

Mobile DiariesWhen millennials want to learn about brand

innovation, their go-to channels are peer-to-

peer: Skype, Whatsapp, Facebook and SMS.

Behavioral Focus GroupsBiometric testing showed that peer-to-peer

channels (Twitter, blog posts, word of mouth)

had a greater impact, by a 6 to 1 margin, on

changing opinions about the risks of new

innovations than advertisements.


Mobile diaries with 25 millennials in 5 countries. Behavioral focus groups with 8 millennials in New

York and 8 millennials in London.

Brands win if they power the peer conversation

Percent who agree with each statement:

“Our unique asset is

our host community.”

Nathan Blecharczyk,

founder of AirBnB

“Our next innovation is

introducing a peer to peer

platform so that our private

car owners in Europe can

share their cars.”

Tina Muller, CMO, Opel

Q36. How much do you agree or disagree with the following statements? 10-country global

total and in India.


67%

I trust a brand more if

it encourages me and

other customers to

review its products

and services

I trust a brand more

if I find it easy to

review its products

and services

64%

76%

76%

To enable peer voices, brands should aim to enhance horizontal

peer-to-peer conversations by building strong advocacy programs

with existing brand lovers and fans.


Insight 5

Messaging alone

doesn’t work.

It’s about how your

brand behaves.

Two-thirds of consumers are undecided about innovation. What do they need from brands?

Last mover First mover

8% 15%

Percent of respondents who fall into each

consumer innovation typology:


Methodology: Statistical analysis of consumer groupings based on their attitudes toward brand innovation showed that 66% of

consumers are open to innovation—but have concerns that need to be addressed before they will buy. They also have specific

expectations for how brands must behave to address those concerns. Other consumers were either “first movers” (15%), “last

movers” (8%), or resistant to innovation (11%).

66%

Undecided Consumers

What undecided consumers need from brands when it comes to innovation

Reassure me about

my personal concerns

Inspire me by doing

something new and different

Show me how I can

participate in your brand

Reassure me about

my societal concerns


Statistical analysis of consumer groupings based on their

attitudes to brand innovation, and their risk concerns.

Source: mobile diaries, qualitative

groups and quantitative segmentation

The 4 brand behaviors that address consumer needs around innovation:

Have a

Purpose

Inform

and Educate

Make

your Mark

Live your

Character

Reassure me about my

personal concerns

Inspire me by

doing something

new and different

Show me how I

can participate

in your brand

Reassure me about my

societal concerns


Brand Behaviors



Inform

and Educate inform transparently so that you can educate consumers and help them make choices


Brand behaviors:

• Explain your motive for innovating.

• Address concerns about the social and environmental

impacts.

• Ensure your consumers are aware of all innovations

which positively impact society and environment.

• Engage and educate consumers across different

channels and platforms.

Consumer need:

I am empowered by

information. Give me all

the details and let me go

as deep as I want.

To reassure me about my

personal concerns



Have a

Purposeoperate with purpose to show how you fit into the bigger picture and are an active participant in society


Consumer need:

I believe in progress—

but not at the cost of

hurting my community or

compromising my values.

Brand behavior:

• Be authentic.

• Show that you value human interaction and have

respect for tradition and heritage.

• As far as possible ensure brand communications is

pivoted around positive social change.

To reassure me about my

societal concerns



Make

your Mark make your mark by doing something unique or differentiating that is worthy of attention


Consumer need:

I like to be inspired by new

ideas—as long as they

really are new and different.

Let’s solve a problem in a

cool, creative way!

Brand behaviors:

• Show how you stand out from the crowd.

• Offer engaging content that is timely, has resonance,

and is entertaining.

• Add value beyond your product and service.

To inspire me by doing

something new and different



Live your

Character live with character that is true to your brand and has a personality that consumers can buy into


Consumer need:

Brands can help me

express my identity. I

want to look smart,

creative and connected.

Brand behaviors:

• Be transparent when it comes to consumer privacy

and sharing of data.

• Offer inspirational, exciting brand experiences in

which consumers can participate.

And show me how I can

participate in your brand



Brands and innovation: A new model of marketing in action

Have a

Purpose

Inform

and Educate

Make

your Mark

Live your

Character


Statistical analysis of consumer groupings based on their

attitudes to brand innovation, and their risk concerns.

Brand Behaviors




The Earned Brand

The Earned Brand’s story is not simply told, it is demonstrated and experienced, and to do that, brands can’t operate with a style guide alone.

The Earned Brand has a world view and a belief system; a purpose and reason for being – one that defines not just the communications, but how the brands behave online, off, and in all contexts.

An expressed set of values informs what products are made, what language is used, how customers are treated, and ultimately the legacy the brand leaves in the communities it serves.

Earned Brands empower conversations among peers.


Innovation and the Earned Brand

People believe

in the promise

of innovation.

Consumer

acceptance of

brand innovation

cannot be bought.

It must be earned.

While the promise

of innovation

inspires, people

first need to

be reassured.

“I rely on my

peers to

reassure me.

Because their

experience is

my evidence.”

Messaging alone

doesn’t work.

It’s about how

your brand

behaves.

1 2 3 4 5

Innovation and the

Earned Brand

Thank you.

2015 earned brand india

Marketing