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Jan/Feb 2011
  Update
Mass Adapting

          From Instability as A New Norm

              Instability & fear was the norm during the
              onset of the recession as people dealt with
              fluxing emotions & trialled new coping
              behaviours as they navigated their changing
              landscape.
                                                          “Realistically, [I hope
                                                          to] make the best of
                                                          the situation. This is
                                                         our lot and we have to
          To ‘adapting’ Stable Behaviour                     work with it...”
                These adaptive coping mechanisms are
                becoming the status quo & second nature to
                consumers who are more focused on practical
                ways to make the most of their reprioritised
                lifestyles.
                                                Source: MCCPTrendstream™/ Discovery Process/
                                                Consumer Dialogues/ Bord Bia 2011/2012
The Irish consumer is beginning
   to moving on
Opti
mism    7 stages of recession grief...
                                            ADAPTING                                      ACCEPTANCE &
         SHOCK &                     As we enter our 5th year of                              HOPE
          DENIAL                   recession, life becomes a little
                                     calmer & more organised,
                                 "depression" begins to lift slightly
                                 & we begin to look for functional,                     RECON-
                                         realistic solutions                          STRUCTION
                    PAIN &
                     GUILT
                                                                             UPWARD
                               ANGER &                                      ADJUSTING
                              BARGAINING

                                                     DEPRESSION &
                                                      REFLECTION
Pessi
mism
        Late 2007      2008         2009                  2010                2011           2012

                                                                        Source: MCCPTrendstream™/ Discovery Process
From alarm to adapting
                                             Long term savvy
             Happy with less
                                                shopper
        70% of Irish people agree        67% of Irish people agree that;
        that; “Since the recession I     “I would probably spend time
        have learned how many            shopping around for good
        things I can do without and      deals anyway whether or not
        still be happy.”                 my finances get better or
                                         worse”


                                          Home an established
        New money mentality
                                          entertainment arena
        67% of Irish people agree        61% of Irish people agree
        that; “I'll never spend my       that; “I would probably
        money again as freely as I did   socialise with friends at home
        before the recession.”           rather than going out
                                         anyway whether or not my
                                         finances get better or worse”




                                             Source: MCCPTrendstream™/ Bord Bia June 2011 & Jan 2012
Stability gets interrupted
                                                         Drivers of peak & troughs:

                                                         October 2011
     Consumer Sentiment
                                                         •   Ireland gets as far as the quarter final in the
                                                             Rugby World Cup. Ireland qualify for Euro 2012,
                                                             country was in fever pitch. Enthralled in the
                                                             Presidential leader debate (950,000 viewers for
                                                             Frontline debate)
                                                         •   iPhone 4S launched, people queue all night.
                                                         •   School mid-term break, first term of school over
                                                             with, the anticipated pressure is off.

       Fairly stable 6mths followed by                   December 2011
       huge peak & troughs                               •   Budget 2012 information was leaked fuelling fear.
                                                         •   Subsequent increase in DIRT & VAT meant people
                                                             were hit when they saved or spent.
                                                         •   People also worried about increased financial
                                                             Christmas stretch.
                                                         •   Cost of living rose 2.5% in the year 2011.


                                                         January 2012
                                                         •   New Year Optimism takes hold as people look to
                                                             enact news year resolutions & health kicks.
                                                         •   2011 was seen as a year of consolidating &
Source: MCCPTrendstream™/ Discovery Process/ ESRI 2012
                                                             surviving, 2012 holds more hope for consumers as
                                                             they begin to adapt.
Opportunities lie in both
peak & troughs

                                 Consumer Sentiment                   63.7
                                 Savings Index
 59.5             59.4                                                         60.1
          57.9
                                56.3      55.9     55.8       55.3
                                                                                                      56.6       57




                                                                                           49.2


Mar-11   Apr-11    May-11   Jun-11     Jul-11    Aug-11   Sep-11     Oct-11   Nov-11   Dec-11     Jan-12     Feb-12



     There appears to be some correlation between sentiment peaks & increased spend &
     sentiment troughs & reduced spend. Brands must be aware of people’s changing moods
     & subsequent spending patterns to find opportunities in both.

                                                                              Source: MCCPTrendstream™2012/ESRI 2012
So What? Controlled Discretionary
Spending is back on the agenda
• Given that consumers are now entering an era of new found stability in
  how they are coping with the challenges the recession has brought them,
  there is an opportunity for categories/brands that had fallen off the
  consideration list to get back on it.
• However, consumers still need to feel that they are managing their money
  efficiently and that they are ultimately in control.
• Discretionary spending such as holidays or mini-breaks may have been
  suffering over last few years, but could now be back on consideration list
  as consumers become more confident about what they really have to
  spend, e.g. Irish Ferries currently promoting their lowest ever deposit of
  €100 to secure Summer bookings to France. Balance not required until 6
  weeks prior to departure thereby tapping into consumers on-going need
  for control.
• What does this mean for categories such as Cars; Jewellery; Clothing and
  Footwear etc.?
So What? Leverage opportunities
both positive & negative
                Create Positivity & More Relaxed Spending


                     Create                             Promote
                   positive trial                      sharing or
                   experiences                           gifting

       Generate                                                     Highlight
                            Focus on        Justify their
        positive                                                     earned
                          contribution       spending
       mind-sets                                                     reward


           Create schemes                                   Help them take
          that don’t hinder                                 control here &
         savings or feel like        Be the object
                                                                 now
               savings              of their savings




                Abate Negativity & More Restricted Spending
How? Create positivity mind-sets
to motivate spending
                                           Unilever, created the first ever smile-
                                           activated ice cream vending machine
 Transport them into a                     that rewarded the biggest grins with
                                           free ice-creams. People could uploaded
 positive mind-set                         their best beams to Facebook to share
                                           their happiness with friends.



                                           People in bars were invited to
                                           experience the Paulaner Pour, an
                                           authentic Weissbier ritual, creating a
 Create positive trial                     competition that awarded those who
 experiences                               perfected the pour with a limited
                                           edition Paulaner glass.




                                           For every pair of Toms Shoes sold, 1
                                           pair is donated. This one for one model
 Focus on contribution                     adds a feel-good factor to consumer
                                           spending.
 not consumption


Source: MCCPTrendstream™/ WARC 2011/2012
How? Frame spending as a
 positive, guiltless act
                                           De Beers installed a display in Grand Central
                                           station spelling out ‘A Diamond is Forever’
                                           in roses with a glowing diamond shaped full
                                           stop. The roses died over time but the
 Justify their spending                    diamond remained glowing representing
                                           it’s long lasting quality & justifying it’s price




                                           Hershey’s uncovered the insight that ‘Mums
                                           feel guilty buying chocolate for herself & not
 Reframe self spending                     sharing with her family ’. Communications
                                           leveraged this insight & alleviate Mums
 as sharing or gifting                     guilt by showing kids sharing with Mum.




                                            Dublin Does Fridays is an idea centred
 Frame discretionary                        around that time of the week when people
                                            are justified in switching off from ‘work
 spending as earned                         you, to just you’ & in celebrating an
 rewards                                    earned, rewarding experience (i.e. the pub
                                            with friends). MCCP , TBWA, Modern
                                            Green & Cybercom collaborated to deliver
Source: MCCPTrendstream™/ WARC 2011/2012    the idea for the LVA.
How? Give their savings a more
 positive focus
                                            Over 90,000 people have signed up to the ‘Bike to
                                            Work Scheme’. Many inbuilt saving mechanisms
  Create schemes that                       have driven it’s success; fuel/fare saving, health
                                            maintenance/improvement savings (i.e. no gym
  don’t hinder savings or                   fees) & tax savings. But it is the salary sacrifice
  feel like savings                         payment method (i.e. a small monthly payment
                                            made direct from people’s wages) which makes it
                                            feel like a real saving rather than a big expense.

                                           Discover boating – A boating awareness association
                                           knew people weren’t buying boats & giving up on
 Be the object of their                    the dream of ever doing so. Dreaming is the first
 savings                                   step in the boating shopper journey so they need to
                                           keep the dream alive. They did so by giving people
                                           a way to experience boating in a virtual but realistic
                                           way via a social media game..


                                           In recessionary times people enter ‘crisis mode’ &
 Help them take                            their focus is on short term planning. They want to
                                           take a sense of control NOW! The 02 money card &
 control here & now                        the new AIB app are tangible tools that help
                                           people feel empowered & in control.



Source: MCCPTrendstream™/ WARC 2011/2012
While consumer behaviour is moving
on, Irish values are regressing.
Backlash against big




                                         Trust in
        Trust in                                                     Trust in Media
                                        Business
     Government                                                       Global: 38%
                                      Global: 43%
     Global: 35%                                                      Ireland: 52%
                                      Ireland: 53%
     Ireland: 43%




  Ireland’s trust levels increased slightly in 2012 but we still have very low levels
                                of trust in institutions.
                                   BIG = BAD
Drivers of distrust continue
Distrust in Big

       Shift in trust from big institutions to smaller, independent sources is
       due to 2 things:

                 Perceived BETRAYAL                                Inherent BEGRUDGERY




                                                   [The Irish character is]
                                              “fatalistic and pessimistic to the
                                                core”, [they are are skilled at
                   Post Recession Trust           the] “peculiar art of self-      Irish Trust
                                                deprecation”. Lonely Planet
                                                          Guide 2012

Source: MCCPTrendstream™/ Discovery Process
Balance big by acting humble




                                    Big


                                                  Honest           Kind


                                                         Humble           Considerate
                                              Good
                                              Listener
                                                                          Playful
                                                         Helpful


Source: MCCPTrendstream™/ Discovery Process
So What?

• Big brands associated with global/multinationals/power, need
  to make themselves more accessible and personable to Irish
  consumers in order to gain their trust.
• Absolut Fringe Festival
• Kellogg's Field of Dreams
• Red Bull Flugtag
• Coca-Cola Designated Driver
Trust is found in people with similar
values and needs (twinsumers)*
                                                            +23%
                                                        ‘person like                 +23%
                                                        yourself’ as               ‘regular
                                                         a credible               employee’
                                                           source                as a credible
         Online & offline we are                                                    source
    searching for our *twinsumers
     (i.e. independent like minded                               +12% ‘online
       peers with the same needs                                   multiple
    &/or values as me) to provide                                sources’ as a
                                               +9% ‘social
       us with recommendations;                                     trusted
                                               media’ as a
               reviews etc.                      trusted         information
                                              information           source
                                                 source




Source: MCCPTrendstream™/ Edelman 2011/2012
So what?

• Help people find their ‘twinsumer’ within your category by
  making it easy for consumers to connect with like-minded
  consumers.
For More


       Contact us for more information on
   MCCPTrendstream™ bank of trends and the so
    what for your category, customer and brand.
 We would love to discuss the so what's & opportunities with you & your team

                                Please contact:

                   Susan Kelly: 086 7827178, susan@mccp.ie
                   Kay McCarthy: 086 1722612, kay@mccp.ie

                                   www.mccp.ie
                             Twitter: @MCCPIreland
                          Slideshare.net/MCCPIreland

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MCCP Trendstream January-February Update

  • 1. Jan/Feb 2011 Update
  • 2. Mass Adapting From Instability as A New Norm Instability & fear was the norm during the onset of the recession as people dealt with fluxing emotions & trialled new coping behaviours as they navigated their changing landscape. “Realistically, [I hope to] make the best of the situation. This is our lot and we have to To ‘adapting’ Stable Behaviour work with it...” These adaptive coping mechanisms are becoming the status quo & second nature to consumers who are more focused on practical ways to make the most of their reprioritised lifestyles. Source: MCCPTrendstream™/ Discovery Process/ Consumer Dialogues/ Bord Bia 2011/2012
  • 3. The Irish consumer is beginning to moving on Opti mism 7 stages of recession grief... ADAPTING ACCEPTANCE & SHOCK & As we enter our 5th year of HOPE DENIAL recession, life becomes a little calmer & more organised, "depression" begins to lift slightly & we begin to look for functional, RECON- realistic solutions STRUCTION PAIN & GUILT UPWARD ANGER & ADJUSTING BARGAINING DEPRESSION & REFLECTION Pessi mism Late 2007 2008 2009 2010 2011 2012 Source: MCCPTrendstream™/ Discovery Process
  • 4. From alarm to adapting Long term savvy Happy with less shopper 70% of Irish people agree 67% of Irish people agree that; that; “Since the recession I “I would probably spend time have learned how many shopping around for good things I can do without and deals anyway whether or not still be happy.” my finances get better or worse” Home an established New money mentality entertainment arena 67% of Irish people agree 61% of Irish people agree that; “I'll never spend my that; “I would probably money again as freely as I did socialise with friends at home before the recession.” rather than going out anyway whether or not my finances get better or worse” Source: MCCPTrendstream™/ Bord Bia June 2011 & Jan 2012
  • 5. Stability gets interrupted Drivers of peak & troughs: October 2011 Consumer Sentiment • Ireland gets as far as the quarter final in the Rugby World Cup. Ireland qualify for Euro 2012, country was in fever pitch. Enthralled in the Presidential leader debate (950,000 viewers for Frontline debate) • iPhone 4S launched, people queue all night. • School mid-term break, first term of school over with, the anticipated pressure is off. Fairly stable 6mths followed by December 2011 huge peak & troughs • Budget 2012 information was leaked fuelling fear. • Subsequent increase in DIRT & VAT meant people were hit when they saved or spent. • People also worried about increased financial Christmas stretch. • Cost of living rose 2.5% in the year 2011. January 2012 • New Year Optimism takes hold as people look to enact news year resolutions & health kicks. • 2011 was seen as a year of consolidating & Source: MCCPTrendstream™/ Discovery Process/ ESRI 2012 surviving, 2012 holds more hope for consumers as they begin to adapt.
  • 6. Opportunities lie in both peak & troughs Consumer Sentiment 63.7 Savings Index 59.5 59.4 60.1 57.9 56.3 55.9 55.8 55.3 56.6 57 49.2 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 There appears to be some correlation between sentiment peaks & increased spend & sentiment troughs & reduced spend. Brands must be aware of people’s changing moods & subsequent spending patterns to find opportunities in both. Source: MCCPTrendstream™2012/ESRI 2012
  • 7. So What? Controlled Discretionary Spending is back on the agenda • Given that consumers are now entering an era of new found stability in how they are coping with the challenges the recession has brought them, there is an opportunity for categories/brands that had fallen off the consideration list to get back on it. • However, consumers still need to feel that they are managing their money efficiently and that they are ultimately in control. • Discretionary spending such as holidays or mini-breaks may have been suffering over last few years, but could now be back on consideration list as consumers become more confident about what they really have to spend, e.g. Irish Ferries currently promoting their lowest ever deposit of €100 to secure Summer bookings to France. Balance not required until 6 weeks prior to departure thereby tapping into consumers on-going need for control. • What does this mean for categories such as Cars; Jewellery; Clothing and Footwear etc.?
  • 8.
  • 9. So What? Leverage opportunities both positive & negative Create Positivity & More Relaxed Spending Create Promote positive trial sharing or experiences gifting Generate Highlight Focus on Justify their positive earned contribution spending mind-sets reward Create schemes Help them take that don’t hinder control here & savings or feel like Be the object now savings of their savings Abate Negativity & More Restricted Spending
  • 10. How? Create positivity mind-sets to motivate spending Unilever, created the first ever smile- activated ice cream vending machine Transport them into a that rewarded the biggest grins with free ice-creams. People could uploaded positive mind-set their best beams to Facebook to share their happiness with friends. People in bars were invited to experience the Paulaner Pour, an authentic Weissbier ritual, creating a Create positive trial competition that awarded those who experiences perfected the pour with a limited edition Paulaner glass. For every pair of Toms Shoes sold, 1 pair is donated. This one for one model Focus on contribution adds a feel-good factor to consumer spending. not consumption Source: MCCPTrendstream™/ WARC 2011/2012
  • 11. How? Frame spending as a positive, guiltless act De Beers installed a display in Grand Central station spelling out ‘A Diamond is Forever’ in roses with a glowing diamond shaped full stop. The roses died over time but the Justify their spending diamond remained glowing representing it’s long lasting quality & justifying it’s price Hershey’s uncovered the insight that ‘Mums feel guilty buying chocolate for herself & not Reframe self spending sharing with her family ’. Communications leveraged this insight & alleviate Mums as sharing or gifting guilt by showing kids sharing with Mum. Dublin Does Fridays is an idea centred Frame discretionary around that time of the week when people are justified in switching off from ‘work spending as earned you, to just you’ & in celebrating an rewards earned, rewarding experience (i.e. the pub with friends). MCCP , TBWA, Modern Green & Cybercom collaborated to deliver Source: MCCPTrendstream™/ WARC 2011/2012 the idea for the LVA.
  • 12. How? Give their savings a more positive focus Over 90,000 people have signed up to the ‘Bike to Work Scheme’. Many inbuilt saving mechanisms Create schemes that have driven it’s success; fuel/fare saving, health maintenance/improvement savings (i.e. no gym don’t hinder savings or fees) & tax savings. But it is the salary sacrifice feel like savings payment method (i.e. a small monthly payment made direct from people’s wages) which makes it feel like a real saving rather than a big expense. Discover boating – A boating awareness association knew people weren’t buying boats & giving up on Be the object of their the dream of ever doing so. Dreaming is the first savings step in the boating shopper journey so they need to keep the dream alive. They did so by giving people a way to experience boating in a virtual but realistic way via a social media game.. In recessionary times people enter ‘crisis mode’ & Help them take their focus is on short term planning. They want to take a sense of control NOW! The 02 money card & control here & now the new AIB app are tangible tools that help people feel empowered & in control. Source: MCCPTrendstream™/ WARC 2011/2012
  • 13. While consumer behaviour is moving on, Irish values are regressing.
  • 14. Backlash against big Trust in Trust in Trust in Media Business Government Global: 38% Global: 43% Global: 35% Ireland: 52% Ireland: 53% Ireland: 43% Ireland’s trust levels increased slightly in 2012 but we still have very low levels of trust in institutions. BIG = BAD
  • 16. Distrust in Big Shift in trust from big institutions to smaller, independent sources is due to 2 things: Perceived BETRAYAL Inherent BEGRUDGERY [The Irish character is] “fatalistic and pessimistic to the core”, [they are are skilled at Post Recession Trust the] “peculiar art of self- Irish Trust deprecation”. Lonely Planet Guide 2012 Source: MCCPTrendstream™/ Discovery Process
  • 17. Balance big by acting humble Big Honest Kind Humble Considerate Good Listener Playful Helpful Source: MCCPTrendstream™/ Discovery Process
  • 18. So What? • Big brands associated with global/multinationals/power, need to make themselves more accessible and personable to Irish consumers in order to gain their trust. • Absolut Fringe Festival • Kellogg's Field of Dreams • Red Bull Flugtag • Coca-Cola Designated Driver
  • 19. Trust is found in people with similar values and needs (twinsumers)* +23% ‘person like +23% yourself’ as ‘regular a credible employee’ source as a credible Online & offline we are source searching for our *twinsumers (i.e. independent like minded +12% ‘online peers with the same needs multiple &/or values as me) to provide sources’ as a +9% ‘social us with recommendations; trusted media’ as a reviews etc. trusted information information source source Source: MCCPTrendstream™/ Edelman 2011/2012
  • 20. So what? • Help people find their ‘twinsumer’ within your category by making it easy for consumers to connect with like-minded consumers.
  • 21. For More Contact us for more information on MCCPTrendstream™ bank of trends and the so what for your category, customer and brand. We would love to discuss the so what's & opportunities with you & your team Please contact: Susan Kelly: 086 7827178, susan@mccp.ie Kay McCarthy: 086 1722612, kay@mccp.ie www.mccp.ie Twitter: @MCCPIreland Slideshare.net/MCCPIreland