telos media-works-holistic marketing in china

Expand. Renew. Grow.!

Holistic  Marketing  in  China

J. Alfonso A. de Dios Telos Media Works, Ltd

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China:      A  Journey  of  Complexity  and  Scale

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Diverse,  growing  markets

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56 ethnic groups

33 provinces

1 million villages

600 cities

1.3 billion people

55 million middle-class HHs

292 languages

State-capitalist economy

150m live below poverty line 22 million urban poor

10% GDP growth past 30 years

500 million live on less than $2/day

$7,000 per-capita GDP

25% annual retail sales growth

world’s largest food producer world’s largest pork producer and consumer

largest steel producer; 95% of rare earth

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Multiple  brands,  evolving  consumers

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1,500+ Skin Care products 2,000+ Hair Care products

$140 million in brand counterfeit value

Over 130,000 brands

40% annual growth of disposable diapers

SOEs have most valuable brands

57% of rural Chinese have never brushed their teeth

US$8 billion beauty market

90% of urban women spend 10% on make-up

48% penetration of sanitary napkins

350m middle class

25% annual retail sales growth

45% believe higher prices mean better quality brands

25% annual retail sales growth 10% control 45% of China’s wealth

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Complex  media  environment

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4,000+ TV Channels National, Provincial, City

300 TV channels in Guangdong

9,000 magazine titles 2,000 newspapers

2,000+ CATV operators

2,900 radio stations 54,000 cinemas

538 million internet users

$62Bn ad spend

Highly regulated

10,000+ Media Brokers

20,000+ Media Agencies

1.1Bn mobile phone accounts

100,000+ Ad Agencies

State-owned Media

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Marketing  success  is  about    expansion,  renewal,  growth

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5  Principles

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Be  consumer-­‐‑centric,    brand-­‐‑focused  and  results-­‐‑driven

Build superior products and create relevant brands

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Building  Brands  for  the  Chinese  Consumer

•  Create brand offerings that are grounded in deep consumer understanding

•  Leverage strong, aspirational equities in building long-term relationships

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Brand  experiences  for  the  Chinese  consumer Tier Up: complex regimen counseling

Tier Down: Wash Habits Tier Down: “Kitchen Logic”

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“Preserve  the  core    and    

stimulate  progress” Strong fundamentals and an innovation mindset

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•  Strengthening the fundamentals can drive short

and long-term brand growth

•  Leverage a strong core in enabling value creation and innovation

Fix-­‐‑and-­‐‑Innovate

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P&G:  Fixing  costs  created  value

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2002 2003 2004 2005

TV CPM

GRPs

SOV

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…and  enabled  innovation

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Data  should  enable,  not  disable Don’t be enslaved by data and measurement

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Data  to  enable,  not  disable

•  Challenge the status quo and create information

and measurement solutions as needed

•  Humanize your data to create deeper measurement relevance

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Creating  measurement  and  data  “solutions”  to  connect  with  our  consumer

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Her Insights… How to connect With her…

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Build  and  Orchestrate  Collaborations Leverage partnerships in maximizing ideas

and enhancing capabilities

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“Connect  and  Develop”

•  Source innovation ideas, opportunities and best practices from external partners

•  Leverage external partners as an extension of your organization, enhancing operational capability and capacity

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Building  an  ecosystem  of  partners  

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Create  a  culture  that  thrives  on  operational  excellence

Build the organization and the business

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Operate  with  excellence

•  Anchor your operations on purpose, values and principles

•  Set BHAGs – Big, Hairy, Audacious Goals

•  Create value everyday and operate an innovation-enterprise

•  Command from the ivory tower but work in the trenches

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Client  and  Agency  ‘Line-­‐‑of-­‐‑One’  

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Our  5  Principles

•  Be consumer-centric, brand-focused, results-driven

•  “Preserve the core and stimulate progress”

•  Data should enable, not disable

•  Build and orchestrate collaborations

•  Create a culture of operational excellence

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Principles  at  work  for  Pampers:    The  purpose-­‐‑driven  diaper

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Baby Stages of Development WHO: “Achievement Mom”

WHAT: Shared Baby Experiences

HOW: Holistic Communications Prime Prospecting : Insights

1. Mom Bonding 2. Information Lusting 3. Personal Conversation

Customized TV - Branded Content - Home Shopping

Digital/Print Channels - Digital Communities

Experience Channels - Shopper Marketing - Direct-to-Consumer

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Key  Initiative  Success  Metrics

• Effective long-term connection with the ‘Achievement Mom’ (Prime Prospect)

• +20% vs. sales goal (in 3 months)

• +24% shipment increase in Shanghai; 3X faster vs. other markets

• TV Home/On-Line Shopping: Identified a new retail channel in partnership with SMG

• China Pampers Marketing Spending ROI at $1.45 (#2 in company; #2 after North America)

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