mccann worldgroup 1. presented by: mary-kay harrity 05.06.11 2

McCann Worldgroup 1

McCann Worldgroup 2

Presented by:Mary-Kay Harrity

05.06.11

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Paints a broad outline of the marketplace

The Yankelovich MONITOR

Identifies “universal” demands and unmet marketplace needs that apply to brand-

specific issues

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METHODOLOGY

• Ages 16+

• Nationally projectable

• Fielding 1: Macro trend analysis

• 3,998 respondents

• Fieldings 2-4: Tracking key measures and deep dives into Finances & Spending, Multicultural, Health & Wellness and Sustainability

• 2,500 respondents each

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Divergence and Consensus

Conventional Wisdom Upended

The Future Will Be Social

In Search of Fairness

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CONVENTIONAL WISDOM UPENDED

Economic hardship is only one catalyst at work; many rules

seem designed for a different era

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Children not required

41 percent of Americans say having children is very important for a successful marriage, compared to 65 percent in 1990(Pew Research Center, 2007)

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Notes: Includes only native-born 30-44 year-olds.Source: Pew Center and Decennial Censuses and 2007 American Community Survey (ACS) Integrated Public Use Micro Samples (IPUMS)

(Among 30-44) Share of husbands whose wives’ income tops theirs

2007

1970

22%

4%

(Among 30-44) Among married women, which spouse has more education?

2007

1970

19%

28%

53%

52%

28%

20%HusbandSameWife

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Men Women

1977 35% 41%

2008 59% 45%

Among dual-earner families with child(ren) under 18

Source: Families and Work Institute, National Study of the Changing Workforce, 2008

Percentage reporting work-life conflict

Working dads feeling work-life conflict more than working moms


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Stay-at-home dads

“But that's only part of the picture, says Aaron Rochlen, an associate professor at the University of Texas at Austin. Rochlen, who studies gender roles and psychology, says many dads with working wives try to work part time or consider themselves ‘consultants.’ But many are, in fact, the primary caregivers to their children. By that expanded definition, he says, there are about 2 million at-home dads. That number has also likely risen during the recession because about 70 percent of the lost jobs affected men.”(“Stay-At-Home Dads Grapple With Going Back To Work,” NPR, 03.24.10)

Fathers with working spouses whostay home to care for family:

2002: 105,0002006: 159,000(Census)

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Structural unemployment now our problem

“In the United States, unemployment has typically been a relatively brief affair. The vast majority of people who lost jobs soon found new work…the latest figures indicate that 46 percent of Americans classified as unemployed – meaning they are out of work and seeking a job – have been unemployed for at least six months. That is nearly twice the previous post-World War II high, set in 1983.”

(“When Being Out of Work Becomes a Chronic Condition,” The New York Times, 07.16.10)

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Challenging the ROI of college“Of the top 30 jobs projected to grow at the fastest rate over the next decade, only 7 typically require a bachelor’s degree according to the BLS…among the top 10 growing categories, two require college degrees: accounting (a bachelor’s) and postsecondary teachers (a doctorate). But this growth is expected to be dwarfed by the need for registered nurses, home health aides, customer service representatives, and store clerks.”

(“What’s the Key to Success in the United States?”, The New York Times, 05.14.10)

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This is not your father’s recession

“Consumers are returning to the marketplace in ways that defy simplistic conventional wisdom…Prioritization has replaced accumulation as consumer’s primary shopping style…consumers do not have the financial wherewithal they used to have, but they have not given up their aspirations to the good life…most of their expenditures are fixed, so there is no financial adjustment that can free up significant additional funds…prioritization is the only financial strategy that can simultaneously enable consumers to spend to stay afloat.”

(“First Things First,” The Futures Company Finance and Spending View, 05.27.10)

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Not frugality or indulgence – but both

Americans are broke – and depressed – and also swilling $3 lattes and waiting in line for iPhones. Welcome to the schizophrenic economy (“The New Abnormal,” Business Week. 07.29.10)

“ “68%Today

Agree: “Sometimes I just need to treat myself to something nice/fun even if I have to tighten up my budget in other places”(Yankelovich MONITOR 2010 Finances & Spending Lens)

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Store brands lead; national brands follow?

54 percent of consumers say “I prefer name brands,” compared to 46 percent who say “I prefer store brands”(Yankelovich MONITOR 2010 Finances & Spending Lens)

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THINKING AHEAD

• Expect to have to update assumptions about ‘the household’ and ‘the family’ on an ongoing basis

• Stay alert to clients’ competition coming from outside – as well as inside – of category as consumers prioritize spending

– Meaningful innovation is a key route to getting onto the ‘priority list’ today

• Expect consumers to spend on favored ‘indulgences’ – but carefully within budget

• Expect clients’ brands to need extra efforts to ‘woo back’ defectors to private label, even as the economy improves

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DIVERGENCE AND CONSENSUS

In a divergent marketplace,

it’s too easy to lose sight of the views people

share

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A matter of diversity

A matter of splintering

Divergence

Consensus

• Not about unanimity• A subjective approach to

identifying the commonalities that create shared experiences

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Divergence: A diverse population

Household DiversityNon-traditional households have overtaken “married with children”*

Religious Diversity“The US is on the verge of becoming a minority Protestant country”**Gender Identity

Lesbian, Gay, bisexual or transgender individuals estimated at 6.6% 18+***

Racial Diversity5.3MM people reported to be of at least two races****

* Source: U.S. Census Bureau, Current Population Survey, 2008 Annual Social and Economic Supplement, Internet Release January 2009

** Source: AFP reporting on the Pew Forum on Religion and Public Life. Study, 02.25,08

*** Source: The U.S. Gay and Lesbian Market, 2008, Packaged Facts and Witeck-Combs Communications

**** Source: U.S. Census Bureau, Population Division, Annual Estimates of the Resident Population by Sex, Race, and Hispanic Origin for the United States: April 1, 2000 to July 1, 2009 (NC-EST2009-03). Release Date June, 2010

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Broadband DivideAccording to the FCC, between 14 and 24 million Americans still lack access to broadbandMedia Cocoons

“People surround themselves with what they like, so they only read the news they like”(zeropointinformation.com)

The Employed and The UnemployedA two-track economy

The “Creative Class”A new social class ofknowledge workers, intellectuals, and artists driving growth by creating new ideas, new technology, new creative content


Divergence: A splintered marketplace

Political Ideology

http://www-personal.umich.edu/~mejn/election/2008/statemapredbluer1024.png

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Consensus: The future will look different66%2009

68%Today

Agree “The recession will change our nation forever”

65%2009

63%Today

Agree “I’ll never spend my money as freely as before the recession”

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Quality is no less important to me today than it has been in the past

(Yankelovich MONITOR – Finances & Spending Lens 2010)

76%Today


Consensus: Not expecting to ‘settle’

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Consensus: Time for a world view75%Today

Agree “In order to be successful in today’s world, young people must have an awareness of cultures outside the US”

66%Today

Agree “I appreciate the influence other cultures are having on the American way of life”

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Consensus: Control’s the goal, but it’s still elusive

66%Today

Agree “No matter how hard I try, I never seem to have enough time to do all the things I need to do”

70%Today

Say being in control of your life is a sign of success and accomplishment8-10 on a 10pt. scale where 10 is definitely a sign of success, accomplishment and 0 is definitely not a sign of success, accomplishment

Say managing stress is important to them in their personal life today

71%Today

6-7 on a 7pt. scale where 7 is extremely important and 1 is not at all important

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84%Today

Agree “I’m trying to take better care of my health today than just a few years ago”(2010 US MONITOR Health & Wellness Lens)

62%Today

Agree “Everyone pays the price when an individual leads an unhealthy lifestyle”(2010 US MONITOR Health & Wellness Lens)

Consensus: Health is high on consumers’ radar

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Consensus: But getting healthy remains a challenge68%Today

Agree “There are more health risks in society today than ever before”(2010 Global Monitor, US sample)

70%Today

Agree “There is so much information about nutrition these days that it is confusing to know what you should and should not eat”

71%Today

Agree “I wish grocery stores would make it easier to determine what foods are healthier than others”(2010 US MONITOR Health & Wellness Lens)

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Consensus: Essentials – old and new

Behaviors you do regularly: Stay mentally active by challenging yourself with puzzles, books, hobbies or interesting work

63%Today

65%Today

Agree “I could notget by without the Internet”

(Yankelovich MONITOR 2010 Finances & Spending Lens)

71%Today

Say finding enough time for family and friends is important to them in their personal life today

6-7 on a 7pt. scale where 7 is extremely important and 1 is not at all important

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THINKING AHEAD

• Anticipate continuing pressure from consumers’ determined to get what suits them best as an individual

• …and help clients plan for more subgroups looking for recognition in the marketplace

• Expect consumers to continue to value control

• …and value information and resources that help them move ‘seamlessly’ through the demands of everyday life

• Expect consumers to look for and appreciate health guidance/information that is easily understandable and easily useable

• Explore new options for helping clients leverage consumers’ attraction to a ‘global experience’

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IN SEARCH OF FAIRNESS

Economy in free fall; Wall Street melts down

Consumer confidence plummets to all time low 10.28.08

Foreclosure frenzy

Rising cost of food, gas, energy

Health benefits in jeopardy

2008, 2009

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Economy in free fall; Wall Street melts down

Consumer confidence plummets to all time low 10.28.08

Foreclosure frenzy

Rising cost of food, gas, energy

Health benefits in jeopardy

The reality… Consumers believed…

• That most institutions were taken by surprise

• That most institutions had their best interests at heart

• That the pain was shared

Responsibility

2008, 2009

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Anxiety, hope, patience

Bailing out the biggies in good faith

Owning our problems

Minimizing risk, considering consequences

Embracing self-reliance

Living within means, not above… or below

Brightsiding

Rebuilding outward slowly

Responsibility

2008, 2009

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Self-reliance efforts and rewards resonate more

64%2009

70%Today

Better increase your chance of succeeding in today’s world by: “Becoming as self-reliant as possible” (over “seeking the help and guidance of professionals”)

(2010 Global Monitor, US Sample)

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Adjusting to new financial realities continues

46%Today

Using your credit card less and instead using other methods of payments like cash or a debit card

56%2009

Relate more to “saving for the future” than to “spending on something I want or need today”

67%Today

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Getting help in adjusting to new financial realities

“Coming soon: credit and debit cards that cut you off when you disregard your own monthly budget. The service, called inControl and already in use by some Barclaycard holders in Britain, is a sort of financial chastity belt that offers the potential to prevent a variety of budget sins and other money traps. Worried about your restaurant habit? If your bank adopts MasterCard’s service, you could tell it to have your debit or credit card reject any restaurant purchase above whatever monthly cap you set … When introduction begins in a few months, it will include only alerts for credit card customers; letting people set their own spending limits will presumably come later … Changing behavior, in the end, is the biggest challenge … MasterCard seems to have made it possible for your bank to become a partner in your self-improvement instead of an enabler of your misdeeds.”

(“Your Card Has Been Declined, Juts as You Wanted,” The New York Times, 08.14.10)

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A still-slow economy

…and stubborn unemployment

Breaches of faith all around – from CEO’s to Congress, from Hollywood to the hardwood

Too many corporate abuses

Frustration with lack of progress

Our assumptions were wrong

Today

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A still-slow economy

…and stubborn unemployment

Breaches of faith all around – from CEO’s to Congress, from Hollywood to the hardwood

Too many corporate abuses

Frustration with lack of progress

Our assumptions were wrong

The reality… Consumers wonder…

• Was I conned?

• Where are all the consequences for others?

• Were lessons learned or is it back to business-as-usual?

• Does anyone know what they are doing?

• Where is the end to my crisis fatigue?

Stunned and outraged by the audacity of betrayal...

Today

…in search of fairness

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A way of acting or treating others

Treating like cases alike

If there is a hierarchy…– Levels need to be overt; criteria need to be

public– Same criteria for everyone at that level– No favoritism

What do we mean by fairness?

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(Ally Bank TV commercial)

“Even kids know it’s wrong to treat new friends better than old friends. At Ally Bank, we treat all our customers fairly. With no teaser rates, and no minimum deposits. It’s just the right thing to do.”

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Skepticism advancingBrightsiding challengedEmotional and material privationA new focus on selfBurrowing deeper into safer networksQuestioning social responsibility efforts

Trends driving fairness

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84%2009

79%Today

Agree “Business is too concerned with profits and not enough with public responsibility”


Skepticism advancing

Brightsiding challenged

Emotional and material privation

A new focus on self

Burrowing deeper into safer networks

Social responsibility 2.0

64%2009

67%Today

Agree “If the opportunity arises, most businesses will take advantage of the public if they feel they are not likely to be found out”

65%2006

70%Today

Agree “Businesses care more about selling me products and services that already exist rather than coming up with something that really fits my lifestyle”

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A new focus on self



63%Today

Agree “I am increasingly skeptical of the claims made by brands on packaging and advertisements”

(2010 Global Monitor, US sample)

28%

2009

Agree “I don’t believe the claims made by environmentally friendly products”

35%

Today


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A new focus on self



52%2008

Agree “If Americans turn out to be less well off in the future than they have been in the past, they may actually be happier because of it”

53%

200943%

Today

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A new focus on self



58%2008

Agree “I’ve got all the material things I need”(2010 Global Monitor, US sample)

54%

200950%

Today

44%Today

Of those working ft/pt agree “the recession has made my job/career less rewarding” (Yankelovich MONITOR 2010 Finances & Spending Lens)

38%2008

Agree “When I buy any product, its style and design is as important to me as its performance”(2010 Global Monitor, US sample)

34%

200941%

Today

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A new focus on self



• Slowly building outward calls on ME to ensure the foundation is OK• Lack of fairness triggers

self-defense instincts…• And gets competitive

juices flowing

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A new focus on self



55%2007

Agree “I work hard at coming out on top in every situation — from the least important to the most important”

56%

200861%

200967%

Today

53%2008

Agree “We should do what is good for the planet even if it harms the U.S. economy”

50%2009

47%Today

53%2008

Agree “There is a sense of community where I live”

49%

200947%

Today


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A new focus on self



• More intense scrutiny of all connections: My personal relationships; my community; my brands; my networks• The word of the year? “Unfriend”

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A new focus on self


Social responsibility 2.0 45%

2008

Agree “I am enthusiastic about new technology that can enable me to find and interact with like-minded people”(2010 Global Monitor, US sample)

43%

200951%Today

53%

2009

(Among those using social networking sites at least weekly) Agree “I am concerned that the information I put on social networking sites will be misused by others”

59%

Today


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A new focus on self



• Belief in the power to make a difference through the marketplace continues

• But consumers feeling distanced from social responsibility efforts– A cluttered and crowded arena;

less a competitive advantage, more a price of entry

– A matter of relevance: Your cause may not be my cause

– A more sophisticated perspective

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A new focus on self



69%2008

Agree “I feel that I can make a difference to the world around me through the choices I make and the actions I take”

68%

200969%

Today

(2010 Global MONITOR, US sample)

64%Today

Agree “Most companies only make claims about their socially responsible efforts to try to sell me more of their products”(2010 Global MONITOR, US sample)

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A new focus on self



Agree more with:

“In terms of making a real difference in the world, it doesn’t matter which companies I choose to do business with”“By choosing to do business with companies that are more socially responsible, I can make a real difference in this world”

Today

2009

23%

32%

75%

66%

Today

2009

Agree “When a company donates to or does something for my school or community, I think it’s only right that my family and I try to buy things from that company as often as possible”

63%

200771%

200965%

200863%

Today

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THINKING AHEAD

• Anticipate consumers holding clients to the new criterion of ‘fairness’

• Elevate transparency from an option to a mandate

• Expect that consumers will need ‘proof’ in the form of products, service, messaging that are truly meaningful in order to engage with brand

• Explore new opportunities for clients to help consumers deal with feelings of ‘emotional deprivation’– Rouse a sense of feeling “alive”– Redesign the everyday and make ordinary experiences special– Provide opportunities for occasional spontaneity and escape

routes– Deliver energy boosts – physical and emotional

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THE FUTURE WILL BE SOCIAL

With people more and more deeply

embedded in narrowly drawn networks, the importance of social

influences is accelerating and

leading to an elemental change in the character of the

marketplace

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Rank CategoryShare of

Time June 2010

Share of Time June

2009

% Change in Share of

Time

1 Social Networks 22.7% 15.8% 43%

2 Online Games10.2%

9.3% 10%

3 E-mail8.3%

11.5% -28%

4 Portals4.4%

5.5% -19%

5 Instant Messaging 4.0% 4.7% -15%

6 Videos/Movies 3.9% 3.5% 12%

7 Search 3.5% 3.4% 1%

8 Software Manufacturers

3.3% 3.3% 0%

9 Multi-category Entertainment

2.8% 3.0% -7%

10 Classifieds/Auctions 2.7% 2.7% -2%

Source: The Nielsen Company.

Top 10 sectors by share of internet time

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Access

• Still controlled by authority

• More open• More democratized

access

Collaboration• Participatory• Customization• Universal

access

Top Down

• Controlled by authority

• Edited• Limited access

Context

• Specialized, tailored, filtered• Vetting info

through close personal connections• Social stream*

The future…

Social influences: From background to foreground

*“Information is becoming less of a destination that we seek online. Instead we are expecting it to come to us in a social stream.” (Anthony Rotolo, assistant professor in

the School of Social Information at Syracuse University)

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54%Today

Have ever “friend-ed” or “become a fan” of a brand or company on a social networking site (like facebook and Twitter)*

50%Today

Agree “I am greatly annoyed with the amount of advertising and branded pages on social networking sites (like facebook and Twitter”)*

*Among those who visit social networking sites

Millennials 64%

Xers 59%

Boomers 42%

Matures 33%

Millennials 64%

Xers 49%

Boomers 38%

Matures 42%

A ‘push back’ developing?

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THINKING AHEAD

• Expect the imperative to be creating ways that clients are invited into consumers’ conversation about life – without organizing the conversation around brand

• Expect the balance of power to continue shifting in the direction of ‘consumer-mediated’ brand messages

• Plan for new and innovative ways to target social networks – rather than collections of individuals

• Prepare for greater sensitivity to too much connection – and more pushback on perceived brand ‘intrusions’

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DEMANDS ON BRANDS

Brands with soul…• Convey humanity

• Manifest an “organic” goodness

• Never do harm

• Have a face/voice that is real to people

• Have a values core that is steadfast and nurtured

• Stay constant in bad times, as well as good times

Build a bond of faith by helping clients be a brand with soul

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Be a brand with soul

http://en.wikipedia.org/wiki/File:SC_Johnson_Logo.svg

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Thank you!For questions please contact:Mary-Kay HarritySVP/East [email protected]

Amy PleasantAccount [email protected]

mailto:[email protected]



mccann worldgroup 1. presented by: mary-kay harrity 05.06.11 2

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