Live Communication 2.0

Uniplan LiveTrends® 2007

Live Communication 2.0
In cooperation with the
HHL-Leipzig Graduate School
of Management

Uniplan LiveTrends 2007


Germany’s marketing managers on the trends and developments of pro-
fessional and international orientation of Live Communication - results
of a survey of 422 companies conducted by Uniplan and the Marketing
Management faculty of the HHL-Leipzig Graduate School of Management.

Contents

Preamble ...................................................................................5

Facts and figures of the study ..........................................................
6

1. Strategic orientation of international
brand communication ................................................................7
Act globally - win locally

2. Planning international live communication .....................................8
Live communication requires clear agreements

3. Strategic management of live communication ..................................9
Live communication portfolios must be better managed

4. Measures to increase efficiency of
live communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10
Impact of brand and strategic planning increases

5. Agency model of the future .......................................................11
Multitude of agency models shapes the market

6. Requirements of live communication in the future ..........................12
Integration becomes obligatory

7. Attractiveness of countries for
international trade fair participations ...........................................13
China and Eastern Europe offer the largest growth potentials

8. Statement by Prof. Kirchgeorg:
competitiveness of Germany as a trade fair location .........................14
German trade fair companies need to catch up in terms
of customer orientation and service quality

9. Summary of Live Trends ...........................................................15

1 0. Contact and editorial details ......................................................17

The authors

Prof. Manfred Kirchgeorg (48) studied business and management economics at the Westfälische Wilhelms-
Universität Münster and had an academic position at the Institute for Marketing in Münster from 1985 to
1989. After he was conferred a doctorate he became a senior lecturer and a habilitation candidate in Münster.
He took up numerous teaching posts and research assignments at different universities in Germany and
abroad, before he joined the HHL-Leipzig Graduate School of Management in 1998. As holder of the mar-
keting management chair, the focus of his research is on integrated brand development, market research
and media and trade fair management. Professor Kirchgeorg is a member of several managerial associations
and federations.

Evelyn Kästner (25) studied communication studies, psychology and cultural history at the Friedrich-Schiller-
Universität Jena. During her studies she gathered diverse practical experience in the areas of PR and
marketing communications. Since May 2006 she has worked with Prof. Manfred Kirchgeorg as a scientific
assistant on research in live communication.

Christian Brühe (45) studied business and management economics at the University of Cologne. After
graduation, he began his career as a consultant at Roland Berger Strategy Consultants in Düsseldorf. In
August 1990, Christian Brühe joined the Uniplan executive board. Together with Prof. Manfred Kirchgeorg,
he founded the first research centre for live communication in Germany in 2004. Today, Uniplan has
500 employees and locations in Europe and Asia and is one of the leading agencies for live communication.

Dagobert Hartmann (42) studied business and management economics at the University of Cologne. After
completing his degree he worked for seven years as the Strategic Planning Director at Grey Worldwide.
He is now the Director of Consulting and Research at Uniplan. The strategy consultant and brand expert
advises customers of Uniplan on all matters concerning strategic brand management, integrated communi-
cation and live communication management. He has so far supported more than 70 brands from different
industries in consulting projects. Hartmann is a member of numerous professional associations.

Preamble

Dear readers,

The German economy is showing growth once more. The Germans’ desire to consume has been awakened
and Germany is proud to be a world leader in exports. The Football World Cup has created a new image
for the country and brought the live communication sector a special boom after a period of consolidation.
It is reason enough to ask how live communication will develop in the future.

Traditionally the live communication sector follows a very strong “orientation towards implementation”.
However, within just a few years it has developed into a serious marketing tool. For this reason, the
requirements of marketing practitioners in this discipline are continually increasing. According to the core
statement of this year‘s study, this still relatively new sector will make a huge step forward in terms of
professionalisation. Live communication will in future be more strategic, more networked and above all
more international. A new era is ahead of us: Live Communication 2.0.

The most important driver of this development is globalisation. For most German companies, the home
markets are saturated and growth is only possible on international markets. If trade fairs and events have
mainly been planned in isolation up until now, according to the main outcome of the study, the future will
depend on increasing the international orientation of live communication and strategically managing it as
a portfolio. This means finding the right balance: as much standardisation as possible, as much differen-
tiation as necessary. This is because country-specific requirements particularly need to be given special
consideration in direct customer communication.

This study, “Uniplan LiveTrends 2007”, shows the huge move towards professionalism that the sector will
experience in future through globalisation. The study has been conducted for the fourth time in succession
by Uniplan in conjunction with the Marketing Management faculty of the HHL-Leipzig Graduate School
of Management. 422 decision-makers from nine sectors were asked about national and international use
of live communication for this representative study.

The study shows how German companies can adapt to the coming changes. It also reveals that in future
the marketing managers who will be successful will mainly be those who use the opportunities of globa-
lisation and recognise live communication as a strategic instrument with a sustainable impact. This once
again highlights the huge significance of international communication and the associated and necessary
professionalisation of the sector: Live Communication 2.0.

We hope you enjoy it.

The authors

Survey design

Facts and figures of the study

This is the fourth time that Uniplan has carried out the “Uniplan LiveTrends” study in conjunction with
the Marketing Management faculty of the HHL-Leipzig Graduate School of Management.

The marketing and communication managers at 422 leading companies from nine key sectors provided
information. This includes:

•Automotive •High-tech/Telecommunications

•Fashion/Lifestyle •Industry
•Finance •Suppliers
•Food •Tourism

•Health
In the summer of 2006, “explorare - Institute for Market Research” carried out 30-minute phone interviews
for the study. Overall, marketing decision-makers from the 1,000 best performing large and medium-sized
companies in Germany were asked in writing to take part. At 40 % an exceptionally high participation
rate was achieved.

Groups and large businesses with a turnover of over 1 billion euros account for 39.1% in the study. Medium-
sized businesses with a turnover of up to 250 million euros account for 39.4 % of the companies surveyed.
With regard to the line of business, at 47.8 % almost half of the companies surveyed are in the B2B area.
While 17.6 % only move within B2C markets, 34.6 % are active in both the B2B and B2C area. 83.8 % of
the companies surveyed are based in Germany.

The surprise was that 84.1 % of companies said they had international operations. This is a much higher
figure than originally thought and proves that even medium-sized businesses are increasingly going inter-
national. In view of the comprehensive survey sample, the study provides interesting benchmark informa-
tion for various sectors as well as for large and medium-sized businesses.

1. Strategic orientation of international brand communication


Global campaigns for global customers are the exception. In reality, markets with various customer require-
ments dominate. The right balance between worldwide standardisation and local adaptation is being the
principle of success for global brand communication.

In a TV commercial a man on his knees begs for a price reduction, which he then gets. The campaign works
all over the world, with the exception of China. This is because this type of humble gesture is not at all
appropriate in the “land of smiles”. This is one example of many, but it clarifies the dilemma about inter-
7
national communication. The persistent desire for a globally standardized presence opposes the compul-
sory requirement for local and cultural adaptations.

Uniplan LiveTrends 2007 shows how differently managers solve this conflict of objectives. A third of
those questioned insist on country-specific formats. Standardised global campaigns are actually the
exception. The majority of companies, however, follow a mixed strategy. The motto is, as much standar-
disation as possible, as much local adaptation as necessary. Through binding outline concepts or the
formation of homogeneous country clusters they secure cost benefits and at the same time establish an
international brand identity. “Glocalisation” is thus the principle of success in brand communication.

But can this principle be transferred to live communication? Trade fairs and events rely a lot more on the
direct and emotional interaction between man and the brand than in classical communication. As is known,
the requirements of personal communication differ dramatically depending on the cultural group. Live
Communication 2.0 must therefore deal with cultural characteristics and country-specific requirements
when planning its activities.

Global brand campaigns are the exception

» What is the general orientation of international communication activities in your company or business area? «

Differentiated country-specific Standardised worldwide
communication concepts 35,69 communication concept
15,27

Communication concepts for country clusters International framework concepts
with high similarities with country-specific differentiation
23,31 25,73

Standardised globally Mix Customised locally

Figures in per cent, nmax = 400 Basis: preferred communication concept Source: UNIPLAN, 2006

2. Planning international live communication


International live communication requires adjusting the requirements of the headquarters to those of the
country markets. The headquarters will thus have less and less control in future. Rather it will develop into
a service centre for country markets and support these with intelligent tool kits and services.

Successful live communication fulfils two tasks: it is both the communication and the sales platform. What
appears to the company to be an advantage at first glance turns out to be a tangible conflict of objectives
between marketing and sales. If central marketing follows branding aspects, sales and contacts generated
are of primary importance to sales organisations on-site. It is essential for successful live communication
to perfectly master control of these various interests.

LiveTrends therefore asked how companies plan their international live communication. The result: the
planning of strategically important leading fairs and corporate events is generally reserved for the head-
quarters. Regional trade fairs focusing on sales typically support country branches. As in brand commu-
nication, the overwhelming majority of companies has a mixture of central and local responsibility.

How can collaboration between the headquarters and a branch function satisfactorily for both sides? With
Live Communication 2.0 the marketing headquarters are the service centres. They offer their “customers”
a variety of services as a basis for their country-specific live presence. Alongside live communication
manuals and best practice cases, this also includes tool kits for trade fairs and events. Transparency of the
entire international portfolio is a mandatory requirement for the implementation thereof.

Headquarters has planning authority for leading fairs and corporate events

» Are your international trade fairs and events planned centrally by the headquarters or locally at country level? «
International leading fairs 51,6 29,3 19,1
participations

National or international fairs
Trade fair

26,7 48,3 25,0

Regional fairs 22,1 33,8 44,1

Corporate events 36,4 42,1 21,5
(for multiplicators)
Events

Public events 27,2 45,6 27,2
(for end consumers)
Internal events 25,7 34,5 39,8
(for employees)

Global through headquarters Mix Local through branches

Figures in per cent, nmax = 422 Basis: scale of 10, global = Box 1–2, mix = Box 3–8, local = Box 9–10 Source: UNIPLAN, 2006

3. Strategic management of live communication


tapping. Events have established themselves in Germany as a frequently used live communication tool,
although their potential as an international communications tool is far from exhausted.

Whether leading fairs, trader events or executive conferences, the range of live communication is huge.
9
Trade fairs pave the way towards globalisation and thus an established platform for international market

In many companies the worldwide portfolio covers an average of over 100 trade fairs and events per year,
and in large companies this figure may even be over 150. Events take place almost every other day. How-
ever, most companies do not know the exact number of trade fairs and events.

Recording all worldwide activities sounds easier than it is. This is because live communication has “many
fathers”. Nearly all corporate areas and sales regions orientate their trade fairs and events nationally and
internationally. Isolated planning of this kind is, however, less efficient. Those wishing to use efficiency
potentials must start with the planning stage. In the trade fair sector, many companies already have a
great deal of experience and have started to plan their worldwide trade fairs systematically according to
categories A, B and C in good time. The events which are often locally orientated have the greatest need
to catch up. The tobacco and spirits sector demonstrates how these can be internationalised. Here events
are consolidated under one joint idea and then marketed as a global roadshow.

Conclusion: In Live Communication 2.0, the call for an ideal live communication portfolio is getting louder.
Companies are faced with the challenge of giving events which have up until now been planned separate-
ly an international orientation and managing them in an integrated manner. Only then can measures be
implemented to increase efficiency.

Portfolio hides enormous efficiency potential

» Please estimate in how many events/trade fairs you have participated in Germany
and abroad in your company or business area.«

Average number of events
in Germany abroad
International leading fairs 3,0 3,8
participations

National or international fairs
Trade fair

5,7 7,1

Regional fairs 11,6 5,5

Corporate events 14,6 9,4
(for multiplicators)
Events

Public events 25,6 8,9
(for end consumers)
Internal events 4,9 5,0
(for employees)

Figures in per cent, nmax = 328 Source: UNIPLAN, 2006

4. Measures to increase efficiency of live communication


Live communication is still under pressure to be efficient. The main need for action is in the introduction of
corporate identity guidelines for trade fairs and events, the strategic management of the live communication
portfolio and the qualification of employees.

On average companies spend 25-35 % of their marketing budgets on trade fairs and events. Live commu-
nication decisions have often been based on updating values of the past or a well-founded gut feeling
and were thus still a long way from a professional, effective management.

Against this background, LiveTrends discussed specific ways in which the efficiency of live communica-
tion can be increased worldwide with the marketing decision-makers. The introduction of corporate iden-
tity guidelines was mentioned first. In connection with this, the managers spoke of increased harmoniza-
tion of trade fairs and events. And furthermore? Alongside brands, the impact of strategy was of primary
importance. The companies surveyed wanted more strategic control of worldwide events. With increasing
globalisation, another point has become virulent: that of people. The marketing managers recognised this
and are demanding further qualification.

If you look at the challenges coming up, the issue of agency models for Live Communication 2.0 must also
be raised. Over a third of those asked believed it was necessary to collaborate with international agencies
for trade fairs and events. As leading agencies, they manage the worldwide orientation and implementation
of all live communication activities. However, as shown in the following chapter, the market for trade fair
and event agencies generally remains diverse.

Corporate guidelines simplify collaboration

» Which measures are necessary to increase the efficiency of your international live communication activities
for your company or your business area? «

Introduction of internationally binding corporate 81,5
identity guidelines for trade fairs and events
Internationally orientated planning and selection 62,7
of live communication activities
Increased transparency of the international 60,9
event portfolio
Qualification of employees e.g. through globally 43,9
orientated training programmes
Collaboration with an international leading agency 35,5
for the trade fairs and events area


5. Agency model of the future


The agency landscape of the future remains diverse. On the one hand, customers are searching for pure
implementation agencies. On the other hand, the desire for professional live communication consultation
and long-term agency partnerships is growing.

Integrated support for the customer – and not only for a project but as a fixed partnership over several
years – this is what every live communication agency views as a perfect customer. The reality is somewhat
different, however. The agency landscape of today as well as tomorrow is as heterogeneous as the working
methods of its customers. In principle two polar agency models emerge: special agencies for trade fair and
event services and full service agencies with a lead function.

What differentiates the two? The special agencies essentially provide technical trade fair and event services.
They are thus the ideal partners for customers who are looking for an individual project-related implemen-
tation service. The full service agencies, on the other hand, design the entire value-added chain: from con-
sultation to design and implementation to monitoring success. In a similar way to classical advertising, they
take over the lead function in live communication. They are particularly interesting for customers who want
to combine brand and strategy consultation with high quality implementation. There is also a need for new
agency formats which focus on the central core competences such as project management, strategic con-
sulting or creative design.

The in-house communications strategy continues to make the decision on the choice of the suitable agency
partner, even in Live Communication 2.0. If you want to use live communication as a strategic tool for
sustainable communication then you should consider a long-term partnership. For agencies this means
paying more attention to your own service portfolio and branding than before.

Special and full service agencies characterise the agency landscape

» What will be the agency models of the future in the area of live communication? «
Specialised implementation agencies for 64,1
trade fair or event services
Full service agencies with a lead function 49,0
for live communication
Creative agencies 46,5

Project agencies to coordinate trade fair 30,8
and event service providers
Consulting agencies for strategic consulting 14,1
for live communication

Figures in per cent, nmax = 404 Basis: top two box on scale of 5 Source: UNIPLAN, 2006

6. Requirements of live communication in future


Companies have recognised the potential of live communication. Through tactical combination with other
tools a new, more effective live communication mix will form. Trade fairs and events will thus become the
nucleus of below-the-line communication.

A generational change is imminent in live communication. Whereas “old school” was primarily charac-
terised by a high implementation skill, a new type of manager will develop in Live Communication 2.0.
He will combine implementation skills with know-how in brand management and communication strate-
gy. This new generation of marketing managers is very aware of the effectiveness and importance of
live communication in the marketing mix.

In an intermedia comparison, live communication scores highly in the soft factors such as contact quality
and sustainable impact like no other tool. But its true power is only revealed in combination with other
tools. Thus customer contacts for a trade fair event can be further exploited through collaboration with
cooperation partners or targeted CRM measures. Professional public relations or Internet communication
increase the range of events. Live communication will thus become the central catalyser for sales and
media activities.

If Live Communication 2.0 never supersedes classical communication, the trend will be towards “live
campaigning”. This moves away from a purely selective use of trade fairs and events to campaign plan-
ning which is integrated in terms of scheduling and content, as has been the norm for years in the area
of classical communication.

Integration increases the impact of trade fairs and events

» Which trends in the area of live communication affect your company or business areas? «
Live communication activities with 60,1
cooperation partners
Interaction between live communication 59,3
activities and CRM measures
Extension of the range of live communication 56,4
activities through PR measures
Event series planned around each other 35,8
instead of individual activities
Reorientation of the trade fair 26,2
and event programme
Leading trade fairs and brand events as a 24,4
starting point for marketing communication

Figures in per cent, nmax = 391 Basis: top two box on a scale of 4 Source: UNIPLAN, 2006

7. Attractiveness of countries for international trade fair participations


In the saturated local markets, customer loyalty and securing the market position are the key. On the inter-
national markets the focus is on initiating and maintaining customer contacts. Trade fairs in particular are
the ideal tool for tapping into difficult foreign markets.

“Going east” is the best way to describe the results of LiveTrends 2007 regarding trade fair activities. Over
half the managers surveyed thought that China and Eastern Europe have the greatest growth opportuni-
ties before 2010, followed by the Russian Federation states, South-East Asia and India. The attractiveness
3
of North and South America and of the Arabic countries was rated lower.

Germany is still the number one trade fair country. The results also show that trade fairs mirror the econo-
mic situation. Around two-thirds of international leading fairs are held in Germany. However, with the
economic and political developments of the last few decades, the trade fair map has also changed. The
transition from a planned to a market economy in Central and Eastern Europe has brought about growth
in the trade fair sector, the economic boom in Asia has accordingly resulted in a trade fair boom.

The German trade fair companies have developed their own scenario for Live Communication 2.0. They
have recognised the signs of globalisation in good time and currently play a leading role in the interna-
tional trade fair landscape. Their challenges are to secure home markets and tap into new foreign markets
at the same time. To achieve this objective they are developing a global presence concept for their leading
trade fairs. Not only the trade fair organisers, but also the exhibitors and visitors will benefit from this.

German exhibitors see most potential in the East

» What growth rates do you expect in the next five years for the following countries as regards your trade fair activities? «
60

50 54,3 55,6

40
40,3
37,6
30
32,3
20 24,6
21,1
10 14,5

0
South Arabic North India South-East Russian Eastern European China
America countries America Asia Federation countries


8. Statement by Prof. Kirchgeorg: competitive position of Germany as a trade fair location

German trade fair companies need to catch up in terms of customer
orientation and service quality

According to the people surveyed, the deficits of German trade fairs lie in the high trade fair costs, a lack
of proximity to the customer and a lack of trade fair organisation. As a trade fair location, Germany must
improve its service quality and customer proximity so that German trade fairs continue to play a leading
role in international competition.

Trade fairs continue to grow. Those with an international character in particular are registering increasing
numbers of both exhibitors and visitors. This is reason enough to ask about the future of the competitive
position of Germany as a trade fair location. A quarter of all companies still declared they were entirely
satisfied with German trade fairs.

However, three-quarters of those questioned consider there to be major deficits. Marketing decision-
makers complained mainly about increasing costs for renting space, additional services and hotel bookings.
Thus the price/performance ratio of the trade fair and Germany as a trade fair location is being tested. In
addition, complaints were made about the service and organisation skills of trade fair companies and the
increasing fragmentation of the trade fair landscape in Germany. From the exhibitor’s point of view, signifi-
cant problems were found in the customer and service orientation of technical staff in the larger trade fair
companies. Lack of flexibility when booking trade fairs and fixed regulations were also criticised.

Service quality and customer proximity are becoming important success factors for trade fair companies
in an international comparison. In association with exhibitors and visitors, a dramatic need to catch up
was obvious with respect to customer loyalty management. Only by mastering all these challenges will
German trade fairs continue positive growth in future.

Price, service and customer proximity promoted to success factors

» What most disturbs exhibitors at trade fairs in Germany?«
Costs Costs too high (rental of space, 33,6
additional costs, etc.)
Organisation Little service-orientation, lack 26,0
of flexibility, fixed regulations
Target group Wrong exhibitors and visitors, 12,5
dropping visitor numbers
Infrastructure Unsatisfactory hall situation 12,0
(location, height, size, etc.)
Positioning Fragmentation of market, 11,8
lack of internationalisation
Communication Poor communication with 7,1
exhibitors and visitors

Figures in per cent, nmax = 308 (open entry) Source: UNIPLAN, 2006

9. Summary of LiveTrends


Live communication has established itself as a serious tool in the marketing mix. However, this comparatively
new sector has some serious catching up to do as regards professional brand and communications know-how.
Live communication is also less internationalised compared with classical advertising. The following seven
LiveTrends show how Live Communication 2.0 is making a step forward in terms of professionalisation in
brand communication and how companies can make trade fairs and events more global.

LiveTrend 1
“Glocalisation” is becoming the principle of success in brand communication. Global brands need a stan-
dardised identity and must consider country-specific requirements at the same time. Live communication
therefore goes by the motto: as much standardisation as possible, as much differentiation as necessary.
Central and country markets must coordinate perfectly for this.

LiveTrend 2
Live communication is both a communication and sales platform at the same time. Successful live com-
munication must coordinate brand demands of the headquarters with the sales interests of the country
markets. The headquarters becomes a service centre and supports the country markets with intelligent
tool kits and services so that this can be as smooth as possible.

LiveTrend 3
The companies surveyed organise an average of over 100 trade fairs and events nationally and abroad
each year. However, in most cases there is too little transparency of the entire event portfolio. Thus the
companies face the challenge of increasing the international orientation of events which have up to now
been planned individually and managing them in an integrated manner.

LiveTrend 4
Live communication is still under pressure to be efficient. The main need for action is in the introduction
of a brand-relevant presence at trade fairs and events, in the strategic management of the global events
portfolio and in the qualification of employees with brand and live communication know-how.

LiveTrend 5
The future agency landscape will polarise further in future. For many customers the desire for long-term
agency partnerships and professional live communication consulting is growing. Alongside the traditional
implementation agencies, more and more leading agency models will therefore establish themselves in the
market, as is customary in classical advertising.

LiveTrend 6
Companies have recognised the potential of live communication. Through tactical combination with other
tools, such as public relations or CRM, range of coverage and customer contacts are being increased. This
is forming a new, more effective live communication mix. Trade fairs and events are thus increasingly
becoming the nucleus of below-the-line communication.

LiveTrend 7
Companies consider the most important growth potentials in trade fairs to be in China, Eastern Europe
and the Russian Federation. For German trade fair companies this means a double challenge: they must
secure home markets and tap into new foreign markets at the same time. To achieve this objective they
are developing a global presence concept for their leading trade fairs.

Statement
German trade fair companies need to catch up in terms
of customer orientation and service quality
A quarter of those surveyed are satisfied with German trade fairs. However, three-quarters consider there
to be major deficits. These can be found in the high trade fair costs, lack of customer proximity and lack of
organisational skills. For this reason, Germany as a trade fair location must improve its service quality and
customer proximity so that German trade fairs can continue to keep customers and maintain their leading
role in international competition.

10. Contact and editorial details Copyright:

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uniplan@uniplan.com Disclaimer:
www.uniplan.com
All information was carefully researched and
compiled. No responsibility can be taken for com-
..............................................
pleteness and correctness of the information.

Marketing Management Faculty
HHL-Leipzig Graduate School
of Management
Jahnallee 59
04109 Leipzig
Germany

T +49(0)341.9851-680
F +49(0)341.9851-684

www.hhl.de

..............................................

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