brandshare china results 2014
TRANSCRIPT
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.
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER
NEEDS
MATCHED BY WAYS BRANDS CAN FULFILL THESE NEEDS
3
BRAND
BEHAVIORS
Actions brands can take to fulfill these new consumer needs.
brandshareTM 2014 © Daniel J. Edelman, Inc .
AND THE DELIVERY OF MUTUAL BENEFIT
BRAND
BEHAVIORS
CONSUMER
NEEDS
4
VALUE
EXCHANGEQuantifiable value exchange based on shared contribution and benefit.
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
*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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
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AND EVALUATED HOW THEY COMBINE TO DELIVER BUSINESS OUTCOMES
8
Purchase
Recommend
Defend
1
2
3
Share Personal Information
Share Brand Content
4
5
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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%
brandshareTM 2014 © Daniel J. Edelman, Inc .
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?
brandshareTM 2014 © Daniel J. Edelman, Inc .
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]}
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
PEOPLE SAY IT IS IMPORTANT
19%
-5473%
Takes a stand on issues I care aboutHas a clear mission and purpose at its core
GAPGAP
15
brandshareTM 2014 © Daniel J. Edelman, Inc .
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]
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
PEOPLE SAY IT IS IMPORTANT
GAP
GAP
16
brandshareTM 2014 © Daniel J. Edelman, Inc .
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]
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]
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
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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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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%
brandshareTM 2014 © Daniel J. Edelman, Inc .
A NEW CONSUMER NEED STATE HAS EMERGED THAT DRIVES VALUE
22
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
+
+
HOW CAN BRANDS IN CHINA FILL THE GAPS AND CREATE BETTER VALUE EXCHANGE?
26
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .
CONSUMER ACTIONS
CONSUMER NEEDS
RECOMMEND
DEFEND
PURCHASE
30
BRANDBEHAVIORS
RATIONAL
EMOTIONAL
MOVING FROM A TRANSACTION-BASED VALUE EQUATION…
brandshareTM 2014 © Daniel J. Edelman, Inc .
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
brandshareTM 2014 © Daniel J. Edelman, Inc .