landor associates 2011 trends forecast

8/8/2019 Landor Associates 2011 Trends Forecast

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Landors 2011 trends forecast


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2010 Landor Associates.All rights reserved.

Landor Associates is one of the worldsleading strategic brand consulting anddesign rms. Landor is part of PP, one ofthe largest global communications servicescompanies. Visit us at landor.com .
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1Landor Associates

Trevor Wade is director of digitalmarketing for Landor Associates andeditor of Landors trends forecast.

In the all-inclusive spirit of social media, we askeda broad spectrum of Landors experts to commenton what they expect to see next year. Here, then,are our predictions for on these timely topics:

The search for purpose esign Social media Shopping behavior ackaging Sustainability Color direction The petroleum industry The energy industry Marketing in the Middle East ood The globalization of Asian brands Interactive entertainment Brand management

Over the past year, weve seen our world growsmaller and more transparent. People arefeeling empowered by social media: breakingnews on Twitter before it reaches major media

outlets, boldly critiquing products and experi-ences online, trusting word-of-mouth overtraditional marketing. Demonstrating sustain-able practices has become the cost of entry forbusinesses and is no longer a di erentiator inthe marketplace. And the good a company doeswithin and for its community is beginning tohave an impact on its bottom line.

In spite of a sobered nancial consciousness, peopleare ready to be surprised and delighted again notby the ashy or the fancy, but by authentic brandstories and personal connections.

As public awareness of marketing, brands, and

design continues to grow, those in the business ofselling have to work harder and smarter to earn themoney consumers are spending so carefully. Whatwill this mean for brands in ?

Landors 2011trends forecastMarket trends and theirimpact on brands


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Scott Osman is global director ofcorporate social responsibility in the NewYork o ce of Landor Associates. Scottsarticle Citizenship branding is availableon landor.com.

have already aligned their corporate social responsi-bility practices with their brand management andcommunications teams a big shi in corporatestructure and we can expect more of this trend.Once they learn each others languages, thesedisparate departments will benet greatly fromsharing ideas and resources. This internal reorgani-zation will create value for companies at the sametime it supports their social contributions.

Which brands will stand out?

Brands that nd a way to express their values and

merge social purpose with brand promise will standout. Almost all companies on the orbes Global list are currently making signicant social contribu-tions, although they may not be communicatingthis to the public. Making these actions knownwill be just as important as espousing the valuesbehind them.

In low-engagement categories, social purposeprovides a golden opportunity to create passionate,relevant di erentiation. Look for purpose-drivenbreakout brands to emerge in the nancial service,airline, education, and energy categories. Companiessuch as Method have inspired employees andcaptured the imagination of consumers with its

naturally derived, biodegradable household cleaners.

Studies show that s are eager for their compa-nies to have purpose and that employees want towork for good companies. Now its time for middlemanagers, those most responsible for implementa-tion, to climb aboard.

The burning question for 2011

Will middle management recognize and acton the importance of social purpose?

What can we expect to see in 2011?

Social purpose as a business value is here to stay,and in we can expect even more companiesto acknowledge its importance. Brands will workto identify the ways they can help society. Successin the marketplace will require that companies besustainable, committed, and authentic.

Studies such as Goodpurpose, by Edelman,and Corporate urpose Impact from Burson-Marsteller indicate overwhelmingly that whenmaking decisions about what to buy, consumers

now look at how a company operates, where itsproducts come from and how they are made, andhow it treats its employees. These factors maynot drive every purchase, but more and more theyare impacting the bottom line. This fundamentalshi in consumer behavior is unlikely to reverse.

What are the implications of these trendsfor brands?

As more good goods enter the market, brandswill have to clearly dene their social purpose andmake it central to their business. Many companies

The search for purposeby Scott Osman

Method has enjoyed great success witha business model that strives to developproducts using safe, sustainable materialsand responsible manufacturing practices.
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3Landor Associates

Paul Owen is executive creative directorin the New York o ce of Landor Associates.

auls work has been recognized interna-tionally with design awards including theD& D encil, romaxB A (gold and silver),One Show (gold), and a special accredita-tion from the Art irectors Club, New York.

B VE: New license laws from CreativeCommons are changing the way designerswork and share ideas.

BE : Location-based networking presentsnew opportunities for interface design.

of functional, light-interface designs that optimizecontent navigation will grow on all screen-basedplatforms. Novelty plays, such as invisible logos,user-generated logos, and logos as containers,have probably had their day, too.


The buzzwords of ? Share, design, delight.Next year, I guarantee, the big brand stories willbe developed around an ethical purpose througha design-led, collaborative process. Here are fourstories Im keeping my eye on:

Redesigned license laws for sharing. Anythingproduced under Creative Commons licensewill be worth following. or more information:creativecommons.org

Simple functional interface design leads, asproximity networking is set to go commercialin . or example: foursquare.com

Content is king. The shape of TV will radicallyshi next year. Smaller personalized contentaggregators are the ones to watch. orexample: devour.com

Ethical design thinking and business leadershipfrom corporationsdened as sociallyresponsible businesses that are required toconsider the interests of societal stakeholderssuch as employees, communities, and theenvironment. or more information:bcorporation.net

Awareness of design among the general populationis at an all-time high. We will see increased interactionbetween designers and consumers in the coming year.Tropicana and the Gap are just the beginning. Smart brands, knowing that design is a major means of connecting with audiences, will introduce new

elements as adroitly as possible. Sean King, design director, corporate

communications


Innovation, in uence marketing, and customerexperience were the business buzzwords of .Consumers no longer believe the smoke and mirrorsof traditional marketing. Their trust must be earnedon a daily basis. Never before has business collabo-rated so openly with consumers. Weve learned thatwe cant be smart, creative, or innovative withoutsharing. And the early days of the twenty-rst centuryhave provided an explosion of technological toolsto optimize collaboration.

Its clear that the rules of brand design are funda-mentally changing. Success no longer dependson consistency and adherence to strict brandguidelines, but on open, exible, and innovativeexperience design that allows for nimble navigationacross changing marketplaces. Theres a newmantra for design:

Share=design=delight

Sharing leads to ideas. Ideas facilitate design, anddesign transforms needs into demand. esign is theprocess that realizes the potential in collaboration.

esign provides the divergent exploration of a sharedthought and then the rigorous, convergent focus to

deliver something useful or meaningfuland if itsspot on, something absolutely delightful.

What are the implications of these trends?

esign is having a positive e ect on businessprocesses. As more and more companies realizethat their Six Sigma processes arent giving themsought-a er results, they are turning to designthinking to uncover more meaningful solutions.

Corporate responsibility will play a much larger roleas many market-leading brands realign their businessstrategies to values over value. With this growingconscience comes the responsibility for design to

deliver sustainable solutions that focus on the rightbalance of ethics, form, and function. oor designhas ended up in enough landlls.

Online design is dropping ash, splash, and animatedextras. With the rise of mobile connectivity, the power

Trends in designby Paul Owen


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Location-based services will move towardtailoring suggestions, information, and o ersto a users current whereabouts for a highlypersonalized and rewarding digital experience.


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5Landor Associates

Alex Do is director of digital branding in theSan rancisco o ce of Landor Associates.His article about open-source branding isavailable on landor.com.


arn a place in the stream. Brands will have toearn their way into peoples streams with meaningfulcontent and, better yet, rewards. If their contentis truly compelling, itll get noticed and liked,generating comments and re-tweets. Smart brandmanagers will focus on the story line, engagingcustomers in relevant dialogue and providingplatforms for customer expression.

Reimagine the storefront. Brands will need to

augment and extend their e-commerce o erings.More brands and merchants will develop shoppingapps inside existing social platforms. elta AirLines now lets travelers book ights from its

acebook fan page.

Redesign the mobile experience. More and moreinteraction will take place via mobile devices. Themobile phone design interface needs to accommo-date this shi . Mobile use of social media altershow people interact with platforms and the waythat brands engage customers.

Social media provides an enormous opportunity

to craft brand voice and add value by linking brandsto the right people at the right time, with messagesthey will want to share.Melissa arsey, senior client manager,

New York o ce


Curated content: In , social network userswill become more discriminating about the contentin their streams. Nonstop content and promotionsfrom brands can be overwhelming and annoying;users are starting to hide brand updates, lterfriends, and prioritize content.

Social commerce and group buying: Tappingfriends for recommendations, posting deals ona network, and following the picks of celebrities canmake shopping easier and more enjoyable. eople

are more willing to share purchase information iftheres something it in for them, such as discounts,trendsetter status, or the cool factor.

Group buying through sites such as Groupon,LivingSocial, YouSwoop, and Scoutmob willcontinue to thrive in . New players includeWow, The Knot, and Walmarts CrowdSaver, setto o er an 8 percent discount on plasma TVswhen the product gets more than , likes.

Niche markets: In 2010 location-based servicesincluding Foursquare, Gowalla, and FacebookPlaces picked up users and garnered a lot of mediaattention. But many users tired of checking in

to places without a payo beyond earning badgesor becoming mayor. In 2011 location-basedservices will move toward tailoring suggestions,information, and o ers to a users current where-abouts for a highly personalized and rewardingdigital experience.

Xtifys geo-location technology will allow brandsto target their users with messages and calls toaction specic to where they are and where theyvebeen. Shopkick describes itself as the rst mobileapp to reward consumers simply for walking intoa store and scanning product bar codes with theirphones. Best Buy, American Eagle Outtters,Sports Authority, and acebook have already

adopted Shopkick. Other platforms such asoodspotting appeal to the foodie niche.

Trends in social mediaby Alex Do

Expect group-buying sites such asGroupon (featured above) to becomemore popular.
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Real value: The retail sector rocked most by therecession was that broad blur of masstige and

new luxury. Suddenly, paying premium prices foraverage products with ashy logos made consumerslook dumb rather than rich. In shopperswill search for ruggedness, longevity, reliability,and real ingredients. Using old-fashioned materialsin apparel represents value and emotional securityin a very tangible way, as seen in Nikes HarrisTweed sneakers.

Real stories: At the same time that shoppersfound their security shaken and their disposable

income decimated, they were also bombarded withnovelty. The movement of brands into digital andsocial media generated odd, attention-seekingstrategies that seemed to have little or no link towhat products actually did, such as the Vegemitevariant rechristened iSnack . . ( ont expectto nd it on shelves today!) Brands must rst lookat the functionality that di erentiates them, thenexpress their essence through authentic storiesand ideas that ring true with customers.

The burning question for : Will shoppers returnto their old ways, or will the hangover of recessioncreate long-term changes in buying behavior?

Expect to see brands trying disruption tacticsto combat autopilot shopping, especially for low-involvement fast-moving consumer goods. iona Atzler, client director, New York o ce

More consumers will shift away from traditional retail toward digital retailing.Robin Thompson, brand strategist,

New York o ce

Although private label brands are gaining popularity in the U.S., they have not approached the level of acceptance seen in Europe. In 2011, U.S. retailerswill continue to borrow private label strategies from

progressive retailers from across the pond suchas Tesco and Marks & Spencer.Samar Birwadker, senior insights manager,

San rancisco o ce

We all hope that the global recovery will gainstrength in 2011. Here in Australia, online sales guresshow that strong economies are looking to weakerones (in our case, to America) as a fertile source ofbargains. Consumers learned their lesson from thenancial crisis and will proceed with caution. Theirbehavior is likely to remain volatile, uctuatingbetween bursts of optimism and pessimism.

Green versus lean: Sustainable consumptionwas already growing prior to the economic crisis.But in well see a slight shi as consumers buyfewer new products, opting instead for rells and

recycling. Rather than paying a premium for green,shoppers will demand that all brands becomemore ecofriendly.

Real places: Country-of-origin brands are likelyto become a greater force in retail. Origins willbe a big part of food retailing; traceability downthe length of the supply chain will give brandsan opportunity to di erentiate. Wherever theycan, brands will connect us to the source.

Trends in shopping behaviorby John Matthews

John Matthews is director of strategyin the Sydney o ce of Landor Associates.His current article , One playful idea,is available on landor.com.

Consumers will seek out ruggedness,longevity, and old-fashioned materials, suchas those found in Nikes Air Royal HarrisTweed sneakers.


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in areas a ected by disaster. In New Orleansfollowing Hurricane Katrina, the rocter Gamble-sponsored initiative washed almost , loads oflaundry for , families.


The challenge will be nding ways to do morewith less reducing waste, using fewer naturalresources, and cutting down transport distancewhile using packaging to communicate brandpromise and the actions that back it up.

In , expect packaging to become more sustain-able, incorporate recent technological advances,and feed into consumers desire for their purchasesto serve a greater purpose.

ells and whistles: Modern consumers are shopping experts who spend mere seconds makingpurchase decisions. Especially in supermarkets,packaging must work hard to tempt shoppers intotrying new products. Revolutionary technologiessuch as thin lm and printed batteries can havea phenomenal impact at the rst moment of truth,adding light, sound, and movement to packaging.

Sound chips can deliver promotional messagesfrom store shelves; paper-thin video screens candemonstrate product use. The rst brands to adoptthese cutting-edge strategies are sure to makea splash in the crowded marketplace.

Reusable: A er noticing the product (rst momentof truth) and reading the product label (second),there is now a third moment of truth for consumers:reusing packaging. More brands will make thispossible, banking on the cool factor to extend brandmessage beyond the life of the product. Burts Bees,whose natural body care line already appeals toenvironmentally conscious customers, now providesreusable carrying cases for its lip balm.

Sustainable: More companies will pledge to lessentheir impact on the environment and look forinnovative ways to do so. Paper Mate recentlyintroduced biodegradable pens with compostableouter shells that break down into organic matterwithin a year. Following a more traditional route,Kra Foods plans to reduce its carbon footprintin 2011 by decreasing waste from its plants, elimin-ating 150 million pounds of packaging material,and cutting CO 2 emissions by 25 percent.

Purposeful: To remain relevant in 2011, brandsmust stand for something and align their brandpromise with the good they do and convey

both through their packaging. The Tide Loadsof Hope program and its corresponding limited-edition detergent give back to the communityin an on-brand way: by providing laundry facilities

Trends in packagingby Wendy Hunt and Anne Reid

Wendy Hunt is client director in the Cincinnatio ce of Landor Associates, working withmultiple Procter & Gamble brands.

Anne Reid is senior director of designrealization in the Cincinnati o ce of LandorAssociates. She has a particular interestin sustainable packaging.

With contributions byAnna Singh , client manager, Cincinnati o ce

The Tide Loads of Hope program givesback to the community in an on-brand wayby providing laundry services to familiesa ected by disaster.
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Landors 2011 trends forecast

More and more consumers look at factsand gures about product ingredients andenvironmental impact before they buy.


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green brands are niche players such as Toms ofMaine and Seventh Generation. Lan dors annualImage ower Green Brands Survey shows thatconsumers think of corporate brands such as

rocter Gamble, Unilever, Walmart, and GeneralElectric as more sustainable than their productbrands. The challenge for corporate brands is to ndways of extending this green halo onto their productand service brands.

Electric cars are poised for plenty of press attentionin , a signicant year for the car market, whenthree electric cars will all be available in the United

States: Chevy Volt, Nissan Leaf, and Tesla.


How can we achieve a balance between reducingconsumption of resources and encouragingconsumers to purchase sustainable products?

Russ Meyer is chief strategy o cerof Landor Associates. His article ivereasons not to have a green brand (andwhy those reasons are wrong) is availableon landor.com.

Trends in sustainabilityby Russ Meyer


As we continue to emerge from the worst economicconditions since the Great epression, consumerswill remain shell-shocked. erhaps the greatestadvance in sustainability over the last three yearshas been the global decline in consumption. Whenconsumers do buy, they are more thoughtful,considering not just where and how products arecreated, but whether they really need them at all.I believe this is the beginning of a long-term shiin purchase behavior, moving from wanton,willy-nilly buying sprees into a more considered

approach to consumption.

What is the implication of this for brands?

Brands have two challenges. The rst is to convinceconsumers that their product or service will makea noticeable di erence in consumers lives andthat they are worthy of being purchased. Theymust make their functional benets overt andapparent. Consumers will no longer be willing totry out sustainable products just for their green-ness brands must di erentiate themselvesin other ways, too. In these days of cautiousconsumerism, products have to prove superiorfunctionality or risk remaining on the shelf.

The second challenge for sustainable brands isto be specic about their green claims. Gone arethe days of fuzzy, friendly labels like natural.Since , weve seen a major increase inconsumers understanding of sustainability. Smartconsumers now look for facts and gures detailingwhich chemicals their cleaning products contain,how much energy is used to create and transporta piece of furniture, and the true carbon footprintof a pair of sneakers. If brands cant provide thishard data, consumers will turn to sources like theGoodGuide and other champions of transparencyto learn the truth.


Despite the ongoing interest in sustainability,few mainstream consumer brands have smoothlyincorporated this attribute into their brand promiseand image. Clorox Green Works aside, the best-known
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inally, purples will move away from recentmauve hues and come alive with the in uenceof re. They are like the colors seen deep undersmoldering coals a bright glimpse at the joyof the future. ire will also pull navy into a deep,royal blue purple.

The coming year will challenge brands to setthemselves on re with passion. The brands thatcome alive with honest, intense warmth andunderstanding will succeed in attracting customersto their tribal re.

Color trends are eeting and ephemeral; colorconnections, told through compelling design storiesthat speak to the consumers heart, mind, and soul,are the future of color direction.


The color design story for is an inspiring taleof re and passion. The world is in a period ofaccelerated change a re building across ourglobe as we move in a new direction with renewedenergy. iery red passion is surfacing as the mainconcept that will fuel the colors and design ideas

of .

In India, re is seen as a cleanser and purier;it prepares the world for new beginnings. ireclears away the clutter and brings the possibilityof a phoenix to rise from its ashes. A single ameis a symbol of hope; a bonre is a communitycelebration of commitment to achieving new goals.

Fire-inspired reds, oranges, and ambers are thereworks of . These hot divas will burst forthwith the power, energy, and passion necessaryto bring fresh excitement.

Lighter golden browns represent the natural

comforting luxuries enjoyed by the re. Think ofcashmere, almonds, ne scotch, and aged tobacco.

The long-term global blue cycle will continue todevelop. Bright, clean blues still symbolize hopefor a unied planet. But in , the blues will bemore aquatic; their watery presence will balancethe re colors.

Greens will be layered and reminiscent of the forestoor a er rewood is collected. In this spectrum

of so hues we nd natural, new beginnings.

Charcoal, smoke, and ash will inspire sowhispers of color. Graphite black will celebrate

the new Nobel rize-winning compound graphene,a super-strong but light carbon that is expectedto change the future of humankind.

Trends in color directionby Jack Bredenfoerder

Jack redenfoerder is design director inthe Cincinnati o ce of Landor Associates.He is internationally recognized as a colorauthority and served as president of theColor Marketing Group in 2007 and 200 .


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Forest oorWater planet

Smoke and ash Glowing embers

Fire

Landor color direction

Passionate reComforting luxuries

Colors by Jack Bredenfoerder Landor Associates

Getty Images

Getty Images

Getty Images

Landor Associates

Landor Associates

Landor Associates

Fire PANTONE C

Red hot PANTONE C

Spark PANTONE C

Burn baby burn PANTONE C

Candlelight PANTONE C

Glow PANTONE C

Warmth PANTONE C

Kiss PANTONE C

Cuddle PANTONE C

Wine cork PANTONE C

Camel hair PANTONE C

Tobacco PANTONE C

Scotch PANTONE C

Smoked almond PANTONE C

Mist PANTONE C

H OMG! PANTONE C

Oceanic PANTONE C

Blue planet PANTONE C

Deepwater PANTONE C

Blue lichen PANTONE C

Lamb ears PANTONE C

New leaf PANTONE C

Sprout PANTONE C

Moss PANTONE C

Frog PANTONE C

Warm thoughts PANTONE C

Passion PANTONE C

Ember PANTONE C

Imaginat ion PANTONE C

White ash PANTONE Warm Gray C

Wisp PANTONE C

Fire brick PANTONE C

Smoke cloud PANTONE C

Organic ash PANTONE C

Burnout PANTONE C

Charcoal PANTONE C

Graphene PANTONE C

Reection PANTONE C

Forecast color information provided by Landor. PANTONE Colors displayed may notmatch PANTONE-identied standards. Consult current PANTONE Color Publications foraccurate color. Pantone trademarks and copyrights are the property of, and are used withthe written permission of, Pantone LLC. Portions Pantone LLC, 2010. All rights reserved.


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such as governmental a liations, operating licenses,corporate culture, transparency, and communication.

Safety rst, second, and third: Operationalintegrity and safety, always central issues forpetroleum companies, will become the primaryfactors in all commercial, operational, and strategicdecisions. In the future, a petroleum companyssuccess may be determined less by the conventionalmetrics of prot, market share, and capital invest-ment than by the nontraditional ones of employeebehavior and corporate responsibility.

Reassessing the value of values: Big Oil companyculture, o en the amalgam of disparate acquisitionsand inherited operating principles, will nd thatlip service to brand values is no longer adequate.A clear, uncompromising set of standards for actionand accountability will be required both of oilcompanies and of the local partners that operateon their behalf.

Uni ed but not uniform: Centralized, monolithicoperations may give way to a more agile and locallyrelevant approach, unied by a common purpose.As many natural energy resources are found inchallenging environments, international oil compa-nies will succeed only by building high-quality,

durable relationships with local governments andbusiness partners. This will be especially true inemerging economies where o cials are unlikelyto cede control to oil companies American orEuropean headquarters.

Small is beautiful: Going forward, combining localsensitivity and exible management with globalknow-how and capital will be the preferred operatingmodel for oil companies. Perhaps in 2011 Big Oil willbegin to think, act, and function more like Smaller Oil.

The Macondo well disaster in the Gulf of Mexicohas been well documented, as has the publicoutcry in its wake. What remains to be seen isthe impact it will have on oil company operationsin the future.

Rising costs, risks . . . and rewards: Access to oilreserves remains di cult and treacherous, whethertheyre deep under the ocean bed or in the equallyinaccessible terrains of Russia and the Middle East.Theres been talk of requiring oil companies toset up prefunded contingency plans to deal withpotential disasters. Even so, there will still be big

money to be made in Big Oil. Emerging economieshave an insatiable appetite for oil; Chinas usealone is up percent this year.

ye of the storm: etroleum companies willalso face unrelenting public scrutiny and renewedhostility. The debate over Big Oil and the environ-ment will be joined by other controversial issues

Andrew Welch is executive director in theLondon o ce of Landor Associates. Hisrecent article on transforming the customerexperience is available on landor.com.

Trends in the petroleum industryby Andrew Welch

Heavy machinery removes oil-contaminatedsands following the Macondo disaster.


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even more challenging, they will be competingagainst some of the most powerful, stretchablebrands in the world.

The winner, however, becomes the gatekeeper toall energy devices in consumers homes, and theprize is massive: constant, free brand communica-tion and reinforcement.


Will energy companies be so consumed with themassive undertaking of installing millions of smart

meters that they miss the opportunity to communi-cate with residents?

The consumer energy business is facing a rarechallenge and opportunity. In order to reducecarbon output, a number of governments acrossthe globe are mandating the placement of smartmeters in all households. In the United Kingdomalone, that amounts to about million homes.

Smart meters, like the non-smart variety, measureenergy usage. But they are also capable of communi-cating with an energy supplier and with otherhousehold devices. The information is delivered inreal time and can be analyzed in a multitude of waysthat have been impossible until now: usage by day,

season, time, or appliance, making it easier todiagnose problems within a house and much more.

The smart meter, with its ability to manage energyremotely, brings us one step closer to making thedigital home a reality. Google and ay al globally,and Sky, O , and Tesco in the United Kingdom,envision a residence with a single device or systemthat controls heating, lighting, programming,security, diagnosis, and entertainment. These brandsare competing to own the heart of this new home.

Therein lies the threat and opportunity for energycompanies: Smart meters have displays that sit onkitchen countertops or in living rooms. They are the

means by which people will monitor and eventuallycontrol the heating and lighting in their homes. Asa marketer, wouldnt you love to have access toa wireless, Internet-enabled, updatable touch screento communicate with your customers and, betteryet, have it paid for by the government?

Right now, energy brands enjoy little equity orloyalty from consumers. They are best liked whenthey arent attracting attention. If they want to playa larger role in the development of the digital home,they will have to put signicant e ort into areasfamiliar to marketers: relationship building, innova-tion, customer service, delight and surprise, andvalue adding. Not only is this new territory for most

energy brands to navigate, it will be desperatelydi cult for them to succeed in wooing customers,given the low base they start from. To make matters

Trends in the energy industryby Ian Wood

Ian Wood is executive director in theLondon o ce of Landor Associates. Hisarticle ont chicken out of innovationis available on landor.com.

O2 is making a bid to own the heart ofthe home with its O 2 Joggleryou canwatch videos, check the weather, textfriends, and more.


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to thrive. Telecom companies u in the andthe Kuwait-based Zain, as well as Aramex (the

Jordanian version of edEx), are giving globalplayers a run for their money causing them toreexamine their regional strategies.


Expect more brands to directly address womensissues and cater to their needs, particularly in thehealth and tness, nancial service, and retailindustries. Mainstream brands will either spin

o womens divisions or develop completely newbrands managed by and for Middle Eastern women.

Local brands will continue to grow in andmove into nearby markets that Western brandsconsider too risky politically.


Global brands that have successfully localizedand local brands that exude global condencewill stand out in the year to come.

France 24: This relatively new kid on the mediablock is growing by leaps and bounds in the Middle

East, mainly because of its push to regionalizecontent both linguistically and editorially.Homegrown news sources Al Arabiya and Al

Jazeera will have to watch out.

Air Arabia: The -based budget carrier nowoperates three hubs, in Sharjah, Alexandria, andCasablanca, which connect regional cities to eachother and to destinations in Europe, North Africa,Central Asia, and the Indian subcontinent.


How will global brands prove their credentials toMiddle Eastern consumers with new products,

brands, and tactics? Or simply by acquiringregional companies?

Although growth may not be as rapid and unbridledas in past years, the Middle East, with its halfa billion consumers, is still a thriving market. Greatopportunities lie not only in Saudi Arabia but alsoin Syria, Iraq, and North Africa, especially Libyaand Algeria.


Woman power: Women exercise considerableeconomic clout in the Arab world, both as membersof the workforce and as business owners in theirown right. It is estimated that women control more

than percent of the private wealth in SaudiArabia, the regions largest economy. Expect tosee women-owned businesses grow in size andexpand their reach across the Middle East.

Regional pride: Regional brands that couplecultural relevance with global brand stature, highquality, and unique product attributes will continue

Marketing trends in the Middle Eastby Aneesh Sharma

Aneesh Sharma is brand strategist inthe ubai o ce of Landor Associates.He writes about brands and marketingin the Middle East for Landors blog .

The ubai supermarket Aswaaq o ersa sophisticated and extensive varietyof products but has the feel of a localcorner store.
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How will quick-service restaurants adapt topatrons who are concerned about where andhow food is sourced and its impact on theimmediate community?

We will see increased transparency about food ingredients in the coming year. New York has banned trans fats in restaurant food and requires chainrestaurants to list calorie counts. Smart food brandswill make this information available everywhere, not

just where its mandated by law. Sean King, design director, corporatecommunications

Walmarts direct farm program in China isgiving millions of people access to quality,locally grown food.


The value shi currently under way will mean majorgrowth in the farm-to-table movement especiallyin the United States where consumers have longfelt unconnected to the source of their food. Inthe wake of the nancial crisis, people want simple,authentic experiences, and they want to under-stand how their choices impact their immediatecommunities. It is very satisfying to buy locallyand feel that you know the person who grew yourlettuce or raised your beef.

ood has always been about family and community;this is even more true today. Look for a surge incommunity and urban gardening and for retailerspushing locally grown products.


Brands will have to build in emotional meaningbeyond convenience or trend-driven claims. Valueno longer means price point, but refers to howproducts benet customers and improve their lives.

Not everyone has access to a good farmers marketor garden, but the underlying drivers for authenticity

and connection are something big brands can takeon. Walmart is doubling, and in some cases tripling,the amount of locally sourced food it sells, and willbe stricter about how that food is grown. GivenWalmarts size, ubiquity, and pricing, that meansmany more people will have access to quality,locally grown food.


Brands that connect and feel human will getnoticed. Marketers should understand that peopleare still very intimidated by food and cooking, inspite of (or maybe because of) the unprecedentedamount of information available. The food industry

could learn from new world winemakers, whohave taken a very intellectual industry and founda way to connect with customers through down-to-earth brand stories.

Trends in foodby Kristin James

Kristin James is senior marketing managerin the New York o ce of Landor Associates.She is a graduate of the Institute of CulinaryEducations astry and Baking Arts program.


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Meanwhile, many international brands are tryingto adapt to local Chinese markets. As local brandsbecome more prominent, international brandscompetitive edge and with it, their justicationfor demanding premium prices will further erode.

On the road: Looking beyond Japan and Korea,the world will turn to China to provide the nextgreat value-added cars. At the motor showin Shanghai, local brands launched alternativeenergy cars that drew considerable attention;the government sees this as a major source ofinvestment for the future. Great Wall Motors is

already selling in Australia, Chery is runningon the road in Central and South America, andGeely made headlines when it purchased ordsSwedish Volvo unit.


How will Chinese brands manage the transitionto global markets?

Monica Au on ChinaWhat can we expect to see in 2011?

Consumers around the world will lower theirresistance to Chinese brands. Buying lessexpensive products is a smart choice these days,and the worldwide economic downturn will allowChinese brands that o er reasonable quality atreasonable prices to expand into global markets.

China will also have plenty of opportunity tolearn from the worlds best business practices,

as international rms continue to bring brandingknowledge, &D capabilities, technologies, andglobal management models with them into theMiddle Kingdom. Chinas vast domestic marketwill become more sophisticated, providinga training ground for local brands to experimentand excel in their elds before going global.

Made in China: Local brands adopting the lookand feel of international giants have had consider-able success in China, giving them more moneyto invest in branding. They also move at lightningspeed, quick to pick up where global competitorsfall short. Brands such as Nike 360 command suchstatus that it was little surprise to see local sports

brand 361 Degrees enter the market. Mimicking Nikessuccess, 361 Degrees rocketed from a small-scalelocal operation to one of the largest sports brandsin the market over the past eight years.

The globalization of Asian brandsby Monica Au and Lulu Raghavan

Monica Au is client managing director inthe Hong Kong o ce of Landor Associates.She writes regularly about consumerinsights and branding in China.

Lulu Raghavan is country director in theMumbai o ce of Landor Associates. Shehas written many articles including a regularcolumn for Hotel Management Asia .

With contributions byMelissa Parsey , senior client manager,New York o ce

Tsingtao beer is one of the rst globallyrecognized Chinese brands.
http://landor.com/index.cfm?do=ourwork.casehistory&cn=6151&bhcp=1http://landor.com/index.cfm?do=ourwork.casehistory&cn=6151&bhcp=1


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17Landor Associates

Lulu Raghavan on IndiaWhat can we expect to see in 2011?

Mergers and acquisitions: Indian companieshave found that purchasing established interna-tional brands puts them on the fast track to globalexpansion. Tatas acquisition of Jaguar Land Rover,Wipro Consumer Cares purchase of Yardleys Asianassets, and Megha Mittals takeover of Escada areall recent examples of successful buyouts. As IndiaInc.s pride and condence in its performanceincrease, expect to see more such acquisitions.

Homegrown appeal: Global interest in Indiandesign, cra smanship, cuisine, and holistic lifestyles

will give homegrown brands a boost. Brands alreadyestablished locally, such as Hidesign (leatheraccessories), Sula (wine), Ganjam (high-end jewelry),and Shahnaz Husain (ayurvedic beauty care), willfocus on getting a foothold in European marketsto spearhead international growth.

Purposeful innovation: The Boston ConsultingGroups Innovation study suggests that matureeconomies once unquestioned dominance ininnovation is fading and India, China, and Brazilare poised to take over. The number of Indiancompanies seen as top innovators is rising whilethe number of American companies is declining.Whats more, Indian brands are additionally showing

the world how social and corporate responsibilitycan be deeply embedded in a business approach.

The frugal or reverse style of innovation pioneered

in India reduces product price to its lowest possiblelevel, presenting a real threat to Western companieswith much higher costs. Especially in countrieswhere per capita income averages far below thatof the United States, this puts goods within reachof many more local and global consumers.

Tatas Swach water purier won the global award in for most innovative product. TataNano, the peoples car, will change mobilitypatterns for thousands of middle-class familiesin the region and beyond, and .lights innovativeproducts provide high-quality, reliable electricitysolutions for the home.


o Indian companies have the global managementexpertise to make their brands protable inoverseas markets?

Tatas innovative Nano car will change

the way thousands of middle-classfamilies in India get around.


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Digital delivery: Game companies will shitheir delivery from one-time retail transactionsto ongoing digital relationships. Alternative businessmodels such as o ering games forfree, but selling upgrades, extras, and virtualgoods will attract new gamers and generatevolume-based revenue.

Virtual possibilities: Expect gaming to becomean immersive, full-sensory experience, movingfrom narrow, linear story lines to expansive universeswith innite possibilities. Platforms willbe made increasingly open source to allow fans to

develop richer gaming worlds. Gesture recognition,force feedback technology, and augmented realitygames will go mainstream.

Mainstream audience: The denition of gamerwill broaden to include both genders and all ages.Nintendos Wii, which encourages active play andinteractivity, opened the door to the family livingroom; its handheld D is marketed primarily asa teaching toy and boasts a line of tutoring games forkids. And the Xbox Kinect doesnt requirea controller at all, using motion-sensing technologyto make games even more active and appeal toa broader range of interests than ever.


Category leader Electronic Arts will continue topush interactive entertainment in sports, tness,education, and social gaming.

isney will use its acquisition of laydom to pushisney, P , and potentially Touchstone content

into social gaming. Startup Zynga will continueto expand its portfolio.

Leading consumer brands such as epsiCo, andperhaps even business-to-business brands like

, will explore interactive edutainment as a wayto connect with customers.


How can gaming companies remain protablewhile expanding their audiences and shi ingto a direct-to-consumer business model?

Interactive entertainment looks very di erent todaythan it did years ago due to the spiraling costof producing games. The industry has gone througha period of contraction, with a small number ofpublishers Electronic Arts, Activision, andUbiso bringing development houses on board.

By minimizing risk and maximizing shareholdervalue, these companies have also e ectively sti edcreativity among blockbuster titles. They expectto lose money (or earn very little) on the majorityof their releases, but make up for it through hugemargins on sequels to their most popular games.

If a niche title is an unexpected hit, publishers arequick to turn it into a series.


Always on: Gaming will become an always-on,always-connected community. Expect acebookto build its gaming capabilities, while gamingcompanies create their own social networks.

Trends in interactive entertainmentby Frank Vial

Frank ial is strategy director in theSan rancisco o ce of Landor Associates.

rank writes regularly for Landors blog and his article A second honeymoon:Rekindling the romance with the Chineseconsumer is available on landor.com.

With contributions byChris Pike , knowledge sharing applicationsdeveloper; Sean King, design director ofcorporate communications; and Aaron

urghard, designer

The new Xbox Kinect bypasses a controllerand uses motion-sensing technology tomake games more active and appealingto the whole family.
http://landor.com/index.cfm?do=thinking.blog_sort&sort=a#a_751http://landor.com/?do=thinking.article&storyid=617http://landor.com/?do=thinking.article&storyid=617http://landor.com/index.cfm?do=thinking.blog_sort&sort=a#a_751


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19Landor Associates

Democratic branding: The rise of social mediahas catapulted marketing into an era of totaltransparency as acebook, Twitter, YouTube, andconsumer blogs have made it possible for ordinaryconsumers to communicate with millions of peoplethey have never met. Before the digital era, brandowners relied on paid advertising to control andspread their message. Today, digital word of mouthallows uncontrolled brand communications to goout to a massive global audience.

Social media conversations focus predominantlyon brand delivery. eople use these outlets to

communicate and evaluate their personal experi-ences and especially to share stories abouthow brands are delivering against their promise.The bigger the gap between promise and delivery,the louder their voices will be; and o en, themore sarcastic and cynical in tone. Ultimately,the customers brand experience is what in uencespeer impressions.

As a result, marketers will need to move awayfrom brand promise statements and toward brandexperience management, with more attentiongiven to how the intended experience is delivered,monitored, and measured. This trend will continuein , especially as constant communication

through mobile devices becomes the norm. Expectbranding to become more democratized andincreasingly open source.

The open paradigm: A brand manager is nowa facilitator who engages with a community ofconsumers to solicit their input. Successful brandmanagers will provide consumers with tools thatencourage feedback, invite collaboration, and o erpossibilities for brand personalization. And theyllpay attention to what customers are telling them.

The brands that adapt best to this open paradigm being authentic in the delivery and cocreation ofexperiences will win in the coming year. Those

that dont will lose rst relevance, then credibility,and eventually sales and market share.

I hope brand managers realize that they are incharge of the customer experience, rather thanrelying on agencies to communicate their positioning.They must nd new ways to measure the e cacy of their brands experience and to embed great power apps in all functions, from product innovation tocustomer service. rank Vial, strategy director, San rancisco o ce

We can expect to see more playfulness, consumer creativity, and partner co-programming in brand management going forward, as well as more systeminnovation. The brands that will stand out in 2011 will

be those that inspire and lead us, not just compete. iona Atzler, client director, New York o ce

Trends in brand managementby Felix Stckle

Felix Stckle is managing director in theHamburg o ce of Landor Associates. Hiscurrent article , How social media ischanging the way brands are managed,is available on landor.com.

iEmployee action

transforms businessCustomer buy-indrives business


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