culture muscle 091014 2

Portland, or • SePtember 12, 2014

AGENDA

1. Mission2. Journey3. Results4. How to Apply5. Takeaways

2

1. MISSION

1. develop a metric to measure the degree to which a brand is leaning into or away from culture

2. empirically test our hypothesis that brands that lean into culture are ultimately more financially successful than those that don’t

3. detail and document the process

OUR MISSION

4

RESULTING IN...

5

THIS IS A NEW MUSCLE

7

2. JOURNEY

1. define culture

2. test against consumers

3. Generate a summary Culture muscletm score

4. Correlate against financial success

OUR PLAN

9

• What Is Culture?

• What Is Financial Success?

• How Do We Measure This?

THREE INITIAL QUESTIONS

10

WHAT IS CULTURE?

cul·ture‘kəlCHər/nounnoun: culture1. the arts and other manifestations of human

intellectual achievement regarded collectively.

WHAT IS CULTURE?

12

WHAT IS CULTURE?

13

12 BUCKETS OF CULTURE

ECONOMICS SOCIAL NORMS

TECHNOLOGY ARTS/AESTHETICS

LEISURE/RECREATION

COMMERCEPRACTICES

POP CULTURE

RELIGION

FOOD/CUISINELANGUAGEMEDIAPOLITICS/GOVERNMENT

14

BUT CULTURE IS MUCH MORE NUANCED THAN THIS

LANGUAGE

WRITTENLANGUAGE

LITERACY SPOKEN LANGUAGE

NON-VERBAL

LANGUAGEITSELF

SLANG/COLLOQUIALISMS

SHORTHAND

15

MUCH MORE NUANCED.

FOOD/CUISINE

16

MUCH MORE NUANCED.

NATIONALDISHES

DIET TYPESSTYLE OF

EATING

LOCAL/REGIONALTOPOGRAPHY

FOOD/CUISINE

RELIGION& FOOD

17

MUCH MORE NUANCED.

NATIONALDISHES

DIET TYPESSTYLE OF

EATING

HEALTHDELIVERY

DINING OUT

TAKEOUTHOME COOKING

ATTITUDINAL

LIFESTYLE

WEIGHT LOSS

ILLNESSAPPEARANCE


FOOD/CUISINE

RELIGION& FOOD

18

BUT THESE BUCKETS/DIMENSIONS ARE NOT INDEPENDENT

19

DIET TYPES

ATTITUDINAL


FOOD/CUISINE


20

DIET TYPES

ATTITUDINAL


RELIGION

FOOD/CUISINE


21

DIET TYPES

ATTITUDINAL


RELIGION

SOCIAL NORMS

FOOD/CUISINE


22

DIET TYPES

ATTITUDINAL


RELIGION

TECHNOLOGY

SOCIAL NORMS

FOOD/CUISINE

CONVENIENCE


23

DIET TYPES

INCOMESPENDING

ATTITUDINAL


RELIGION

TECHNOLOGY

ECONOMICSSOCIAL NORMS

FOOD/CUISINE

CONVENIENCE


24

WE STARTED TO QUESTION WHAT WE HAD SIGNED UP FOR

25

THEN SOMETHING DAWNED ON US.

26

YOU CAN’T REALLY MEASURE CULTURE

27

...BUT YOU CAN MEASURE SHIFTS IN CULTURE

28

TRENDSPOTTING WITHIN CULTURE

ECONOMICS SOCIAL NORMS

TECHNOLOGY ARTS/AESTHETICS

LEISURE/RECREATION

COMMERCEPRACTICES

POP CULTURE

RELIGION

FOOD/CUISINELANGUAGEMEDIAPOLITICS/GOVERNMENT

29

DIMENSIONS OF LANGUAGE

LANGUAGE

WRITTENLANGUAGE


NON-VERBAL

LANGUAGEITSELF


SHORTHAND

30

1. a shift from more formal to less formal language

2. a shift to more visual communication

CULTURAL SHIFTS IN LANGUAGE

31

= 115

32

= 31

33

WHAT IS FINANCIALSUCCESS?

Sales? Revenue?

Market Share?

Share Gains?

Sales Growth?

Stock Price?

Stock Change?

YOY Sales?

Brand Value?

HOW DO WEMEASURE THIS?

1. Select brands to Study

2. Conduct Communications audit

3. Conduct Consumer evaluation

HOW TO MEASURE

39

Include: • a selection of brands that cover from the top 100 brands,

from all points on the list: top, middle and bottom• Various products and services• many industries and categories• aspirational as well as “everyday” brands

Exclude:• brands that do not operate in the US • Highly niche brands, though including both

upscale and mass-market brands

BRAND SELECTION CRITERIA

40

®

OUR SELECTED BRANDS

41

NONE LOW MEDIUM HIGH

COMMUNICATIONS AUDIT

42

CONSUMER EVALUATION

43

This Isn’tHappening

At All


Much

This IsHappeningSomewhat

This IsDefinitely

Happening

Q. listed below are a number of things that may or may not be happening today. to what degree do you, personally, see these things happening in your country today? (Select one across for each)

TREND STRENGTH

44


At All


Much


This IsDefinitely

Happening

Q. listed below are a number of things that may or may not be happening today. to what degree do you, personally, see these things happening in your country today? (Select one across for each)

(Weight of 1) (Weight of 2) (Weight of 4) (Weight of 8)

TREND STRENGTH

45

Doesn’t Matter at All

to Me

Doesn’t Really Matter

to Me

MattersSomewhat

to Me

Matters aGreat Deal

to Me

Q. assuming each of these were happening in your country, how much do each of the following matter to you, or not? there are no right or wrong answers, we’re only interested in your opinions.

TREND RELEVANCE

46


to Me


to Me

MattersSomewhat

to Me

Matters aGreat Deal

to Me

Q. assuming each of these were happening in your country, how much do each of the following matter to you, or not? there are no right or wrong answers, we’re only interested in your opinions.

TREND RELEVANCE

(Weight of 1) (Weight of 2) (Weight of 4) (Weight of 8)

47

CULTURESTRENGTH

SCORE

CULTURALRELEVANCE

SCOREX

Is It Happening?

does It matter to me?

CULTURAL SHIFT MULTIPLIER

48

CULTURESTRENGTH

SCORE

CULTURALRELEVANCE

SCOREX

CULTURALSHIFT

MULTIPLIER

Is it Happening?

does it matter to me?

So, Is this Shift a big deal?

CULTURAL SHIFT MULTIPLIER

49

SYSTEM 1 SYSTEM 2

50

Cultural Shift: Written communications are getting shorter and shorter these days

Personified Cultural Shift:Is someone who would answer your text with just the letter “k”

BRAND ASSOCIATIONS

51

Q. now we’d like you to think a little differently. Imagine for a moment that each of these brands were “people” that you knew. For each statement below, please indicate which of these “people” you feel each statement describes. You can select none, one, some or all of the “people” for each statement. (Select all that apply for each brand)

BRAND ASSOCIATIONS

52

BRAND CULTURE SHIFT SCORE

CULTURALSHIFT

MULTIPLIER

BRANDASSOCIATIONSX

So, Is this Shifta big deal?

do Consumersassociate brands

with this Shift?

53

BRANDCULTURE

SHIFTSCORES

Which brandsare associated

with which Shift?

CULTURALSHIFT

MULTIPLIER

BRANDASSOCIATIONSX

So, Is this Shifta big deal?

do Consumersassociate brands

with this Shift?

BRAND CULTURE SHIFT SCORE

54

BRANDCULTURE

SHIFTSCORES

CULTURE MUSCLE SCORE

Which brandsare associated

with which Shift?

55

CONSUMER EVALUATION

Your brand Value

Your brand’s Culture muscle

Score

?

56

3. RESULTS

TOP 5 CULTURAL SHIFTS LEVERAGED BY BRANDS

1. Proliferation of Choices

2. racial tolerance

3. move to Visual Communication

4. democratized Voice

5. age of Impatience

58

BOTTOM 5 CULTURAL SHIFTS LEVERAGED BY BRANDS

1. overload leads to de-teching

2. Immersive experiences

3. Public apathy

4. ethical business Practices

5. Healthier living

59

CULTURE MUSCLE: THE TOP 5

1.

2.

3.

4.

5.

60

CULTURE MUSCLE: THE BOTTOM 5

30.

29.

28.

27.

26.

61

Brand Associations

(do Consumers associate brands with this Shift?)

CULTURAL SHIFT MULTIPLIER(Is this Shift a Big Deal?)

redirect effortsagainst more

meaningful Shifts

don’t Worryabout these

for now

Keepleaning

Into these

PotentialShifts tolean Into

62

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0 10 20 30 40 50

STARBUCKS’ CULTURE MUSCLE™


FOMO Democratized Voice

Age of Impatience

End of Anonymity

63

REDBULL’S CULTURE MUSCLE™


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0 10 20 30 40 50

YOLO

64

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0 10 20 30 40 50

COLGATE’S CULTURE MUSCLE™


Racial Tolerance

Proliferation of Choices

Main Street vs. Wall Street

65

RELATIONSHIP BETWEEN CULTURAL SHIFTS AND BRAND VALUE

Your brand Value

Your brand’s Culture muscle

Score

?

66


Moderate Positive Relationship


Weak Positive Relationship


Strong Positive Relationship

Very Strong Positive Relationship



No/Negligible Relationship

1.00.90.80.70.60.50.40.30.20.10.0

– 0.1– 0.2– 0.3– 0.4– 0.5– 0.6– 0.7– 0.8– 0.9– 1.0

67

GOAL

0.3











1.00.90.80.70.60.50.40.30.20.10.0

– 0.1– 0.2– 0.3– 0.4– 0.5– 0.6– 0.7– 0.8– 0.9– 1.0

Culture Muscle™ Index

68

GOAL

0.3

ACTUAL0.54











1.00.90.80.70.60.50.40.30.20.10.0

– 0.1– 0.2– 0.3– 0.4– 0.5– 0.6– 0.7– 0.8– 0.9– 1.0

Culture Muscle™ Index

69

ACTUAL–0.03











1.00.90.80.70.60.50.40.30.20.10.0

– 0.1– 0.2– 0.3– 0.4– 0.5– 0.6– 0.7– 0.8– 0.9– 1.0

Communications Audit

70

4. HOW TO APPLY

COMMSCAMPAIGN

STAGE

BRANDSTAGE

Where do you implement this?

STAGE OF PLANNING

72

• Is your brand already leaning into culture in a meaningful way?

• What are your competitors doing culturally?

• If you did choose a cultural shift to lasso, would it appear authentic to your brand’s dna?

• beyond communications, how else might you express your brand’s connection to a cultural shift?

• Would you need to back-engineer aspects of your brand to achieve this?

• Is leaning into culture a growth strategy, a differentiation strategy, or a way to stem declines?

THINGS TO THINK ABOUT

73

THE EIGHT STEP PROCESS

THE EIGHT STEP PROCESS

LANGUAGE

WRITTENLANGUAGE


NON-VERBAL

LANGUAGEITSELF


SHORTHAND

1. IDENTIFY CULTURE BUCKETS (AND DIMENSIONS)

2. IDENTIFY CULTURE SHIFTS WITHIN EACH BUCKET

Within your market(s), begin by mapping out all of the culture buckets that exist, regardless of how relevant or irrelevant they may initially seem to your product or category. Continue by mapping out all of the various dimensions that exist within each bucket, ignoring the fact that some dimensions in one bucket will overlap dimensions in another bucket.

With your long list of cultural buckets and dimensions, identify all of the cultural shifts (trends) happening in your market.

once listed, you will notice that many of the shifts overlap across buckets. With a critical eye, de-dupe the cultural shifts to come up with a master list.

75

THE EIGHT STEP PROCESS3. PERSONIFY CULTURAL SHIFTS

4. COLLECT THE DATA

Create two lists of cultural shifts: one that expresses the shift in consumer-friendly language, and one that expresses it as a personification of that shift.

develop a consumer survey that asks the following three questions:

1. degree to which they see the shift happening (cultural strength)2. relevance of the shift to them (cultural relevance)3. Personification of the shift against a list of relevant

brands (brand associations)

Cultural Shift: Written communications are getting shorter and shorter these days

Personified Cultural Shift:Is someone who would answer your text with just the letter “k”

76

THE EIGHT STEP PROCESS5. APPLY WEIGHTING

6. DETERMINE CULTURAL SHIFT MULTIPLIER

Weight the responses to the cultural strength question and the culture relevance question using a simple weighting scheme of 1, 2, 4 and 8 from negative to positive to determine a Cultural Strength and relevance Score for each shift.

For each shift, multiply the Culture Strength Score by the Culture relevance Score. this yields a metric we called the Cultural Shift multiplier, which in essence tells us whether the shift is a big deal or not.


At All


Much


This IsDefinitely

Happening

Cultural Strength Scale:

1 2 4 8


to Me


to Me

MattersSomewhat

to Me

Matters aGreat Deal

to Me

1 2 4 8

Cultural Relevance Scale:

CULTURESTRENGTH

SCORE

CULTURALRELEVANCE

SCOREX

CULTURALSHIFT

MULTIPLIER

Is it Happening?

Does it Matter to Me?

So, Is this Shift a Big Deal?

77

THE EIGHT STEP PROCESS7. CALCULATE CULTURAL SHIFT SCORE

8. DETERMINE CULTURE MUSCLE™ SCORE

then calculate each brand’s Culture Shift Scores by multiplying the Cultural Shift multiplier and the percent of consumers that associate that brand with that shift in the personification question (brand asso-ciation). each brand will have a number of Cultural Shift Scores, based on the master list of cultural shifts you identified in Step 2.

Finally, take the sum of the Culture Shift Scores within each brand, and the result will be that brand’s Culture muscle Score™.

BRANDCULTURE

SHIFTSCORES

Which BrandsAre Associated

with which Shift?

CULTURALSHIFT

MULTIPLIER

BRANDASSOCIATIONSX

So, Is this Shifta Big Deal?

Do ConsumersAssociate Brandswith this Shift?

BRANDCULTURE

SHIFTSCORES

Which BrandsAre Associated

with which Shift?

78

5. TAKEAWAYS

• You can’t measure “culture” – “culture” is largely invisible to consumers – what you need to do is measure cultural shifts

• Culture is a messy thing – one cultural shift can impact many different aspects of culture

• brands with stronger Culture muscles are leaning into many cultural shifts, some more broadly recognized, other less so

• there is a strong relationship between a brand’s Culture muscle™ and financial success

• there is no relationship between a brand’s cultural communications and financial success, implying that leaning into cultural shifts requires a more holistic branding approach

TAKEAWAYS

80

OUR TEAM

Adrian BarrowHead of Planning

Amy Baileyaccount director

Mark TrussGlobal director of brand Intelligence

Robert QuinnWPP Fellow

Karen Montecuollobrand Intelligence manager

Monica GojmanWPP Fellow

81

culture muscle 091014 2

Business