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
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