Be Afraid Of The Marketing Gospel

1. BE AFRAID OF THE MARKETING GOSPEL By Nigel Rahimpour, Planning Director

2. FOREWORD This Presenta=on Dispels Today's Popular, But Baseless Marke=ng Myths And Provides A Path Forward To Brand Salience And Growth Supported By Marke=ng Science.

3. MARKETING GURUS HAVE BEEN SAYING FOR YEARS: “People want to interact with brands” “People want to join brands” “People seek rela6onships with brands”

4. HOWEVER, A RECENT FORRESTER STUDY SUGGESTS: Source: Forrester Q1 2014 US Top 50 Brands Social WebTrack “People don’t engage with branded social content very o;en”

5. % OF BRAND FANS INTERACTING WITH BRAND POSTS: FACEBOOK TWITTER 0.7% 0.3% Source: Forrester Q1 2014 US Top 50 Brands Social WebTrack

6. AGAIN, THESE ARE NOT RANDOM PEOPLE, BUT SO-‐CALLED BRAND FANS

7. = % of Facebook fans who interact with posts of the brand they are fans of THE DISMAL INTERACTION RATES ARE CONFIRMED BY THE EHRENBERG INSTITUTE 0.5% Source: Facebook fans: A fan for life? Karen Nelson – Field and Jennifer Taylor

8. PASSION BRANDS DON’T FARE MUCH BETTER Source: Facebook fans: A fan for life? Karen Nelson – Field and Jennifer Taylor Even Facebook fans don’t talk much about Facebook

9. PART OF THE PROBLEM IS THAT MARKETING TREATS SOCIAL CHANNELS LIKE PAID MEDIA

10. This app shows you how to turn a Corona Upside Down to make the PERFECT beer. A LOT OF WHAT IS CREATED DOESN’T MAP BACK TO REAL LIFE

11. “Almost every app built for a brand on Facebook has NO usage. Heavy, immersive experiences are NOT how people engage and interact with brands.” Paul Adams, Facebook’s Ex-‐Global Head Of Brand Design

12. Source: Google PEOPLE HAVE BIGGER INTERESTS THAN BRANDS The World’s Top 10 Searches Do Not Include A Single Brand

13. Source: Meaningful Brands, Havas Media Group IN EUROPE AND THE US, PEOPLE WOULD NOT CARE IF 92% OF BRANDS DISAPPEARED

14. 77% OF CONSUMERS ADMIT THEY HAVE NO RELATIONSHIP WITH A BRAND Source: Corporate Execu=ve Board

15. 77% OF CONSUMERS ADMIT THEY HAVE NO RELATIONSHIP WITH A BRAND “MOST OF US GO THROUGH LIFE FINDING IT HARD ENOUGH TO HAVE GOOD RELATIONSHIPS WITH THE REAL PEOPLE IN OUR LIFE, LET ALONE ALL THE BRANDS WE BUY.” Bruce McColl, chief marke=ng oﬃcer of Mars

16. Source: Byron Sharp “How Brands Grow” BRAND LOYALTY TENDS TO BE POLYGAMOUS “Buyers typically have a number of brands they rou6nely buy”

17. HALF THE PEOPLE WHO DESCRIBED THEMSELVES AS BRAND LOYAL WERE NOT LOYAL A YEAR LATER Source: NPD Group

18. Source: Byron Sharp “How Brands Grow” TNS UK 72% OF PEPSI USERS ALSO BUY COKE

19. Source: TNS UK 72% OF PEPSI USERS ALSO BUY COKE Source: Byron Sharp “How Brands Grow” TNS UK 37% OF HÄAGEN DAZS CUSTOMERS ALSO BUY CARTE D’OR

20. WHAT WE LEARN ARE THREE THINGS: 1.  Deep brand engagement is not a mass-‐market occurrence, but an occupa=on of the few. 2.  Heavy, =me-‐intensive brand experiences have liile in common with the way people want to use brands. 3.  Simply assuming that people want to engage with brands is a recipe for failure.

21. ACCEPTING THAT PEOPLE DON’T CARE MUCH ABOUT BRANDS MIGHT SERVE US BETTER!

22. IT WILL RAISE THE CREATIVE BAR

23. AS THESE BRANDS HAVE DONE

24. THEY SHOT FOR FAME

25. SINCE CAMPAIGNS THAT TARGET FAME ACHIEVE LARGER BUSINESS EFFECTS % repor9ng very large eﬀects on: Sales Market share Proﬁt Penetra=on Loyalty Price sensi=vity Campaigns aiming to build brand fame 55% (+) 40 (++) 28% 35% 16% (+) 6% Campaigns aiming to build brand awareness 51% 34% 22% 31% 8% (-‐) 4% Source: Marke=ng in the era of accountability, 2008

26. THEY TOOK INTEREST IN WHAT PEOPLE ARE INTERESTED IN… (As opposed to the other way around)

27. DEVELOPED HIGHLY EMOTIVE CONTENT, (As opposed to highly func=onal) Source: Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing”

28. BECAUSE CREATIVE THAT ELICITS HIGH AROUSAL EMOTIONS GAINS TWICE AS MUCH SHARING Source: Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing”

29. THEY MADE IT EASY TO INTERACT WITH… (As opposed to heavy & complicated)

30. AS MOST PEOPLE’S PARTICIPATION IS “EASY” (i.e. sharing photos, checking news, watching video) Source: BBC Online Spring Brieﬁng May 2012 Friends, family & photos TV, Entertainment, Lifestyle

31. THEY GAVE IT STRONG PAID MEDIA SUPPORT (As opposed to hoping it will be discovered)

32. BECAUSE CONTENT VIEWED BY FEW PEOPLE CAN’T BE SHARED BY MANY

33. AFTER ALL, 90% OF VIEWERS DON’T SHARE Source: Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing”

34. Source: Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing” HITTING THE RIGHT TARGET IS ESSENTIAL

35. 20 16 12 8 4 0 1 2 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Percentage of Coke buyers buying Coke X =mes in the U.S. Number of purchases Source: Nielsen USA from Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing” LIGHT BUYERS MATTER FOR BRAND GROWTH Light Buyers’ impact on sales

36. 50 38 25 13 0 1 2 3 4 5 6 . . . . . 12 . . . . . . . . . . . Percentage of Kellogg’s Special K buyers buying Kellogg’s Special K X =mes in the U.K. Number of purchases THIS IS PROVEN ACROSS CATEGORIES Source: Kantar WorldPanel UK from Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing” Light Buyers’ impact on sales

37. 12.500 9.375 6.250 3.125 0 1 2 3 4 5 6 7 8 9 Number (millions) of Pantene buyers buying Pantene X =mes in the U.S. Number of purchases EVEN FOR HAIR CARE -‐ -‐ -‐ -‐ -‐ -‐ Source: John Dawes Panel Data provided by Mar=n Weigel Canalside Light Buyers’ impact on sales

38. Source: Karen Nelson-‐Field “Viral Marke=ng – The Science Of Sharing” LIGHT BUYERS ARE LESS LIKELY TO BE FOUND ON BRAND SITES, WHICH HEAVY BUYERS DOMINATE

39. THIS IS WHY SUCCESSFUL BRANDS ADVERTISE BEYOND OWNED CHANNELS

40. IN CREATIVELY POPULIST WAYS…

41. WITH THE GOAL OF BUILDING NEW AND REINFORCING OLD MEMORY STRUCTURES…

42. IT’S ALL PART OF A BIGGER PLAN TO DRIVE MENTAL AVAILABILITY, WHICH IS KEY TO GROWING MARKET SHARE

43. THIS IS DONE THROUGH STRONG INCREASES IN PENETRATION, NOT LOYALTY Source: Byron Sharp “How Brands Grow”, TNS UK Detergent Brands Market Share % Annual Market Penetra9on % Purchase Frequency (Avg.) Persil 22 41 3.9 Ariel 14 26 3.9 Bold 10 19 3.8 Daz 9 17 3.7 Surf 8 17 3.4 Average 3.7 Purchase frequency does not vary much between the top and boiom brand. But penetra=on does, which is what drives market share! Purchase frequency doesn’t vary much Penetra=on varies a lot

44. Source: Byron Sharp “How Brands Grow”, TNS UK, Nielsen USA AS SEEN ACROSS CATEGORIES I.E. SHAMPOO U.S. Purchase frequency does not vary much between the top and boiom brand. But penetra=on does, which is what drives market share! Shampoo Brands Market Share % Annual Market Penetra9on % Purchase Frequency (Avg) Suave Naturals 12 19 2.0 Pantene Pro-‐V 10 16 1.9 Alberto VO5 6 11 1.6 Garnier Fruc=s 5 9 1.7 Dove 4 8 1.5 Finesse 1 2 1.4 Average 1.7 Purchase frequency doesn’t vary much Penetra=on varies a lot

45. Source: Byron Sharp “How Brands Grow”, TNS UK, Nielsen USA …AND COUNTRIES : I.E. SHAMPOO U.K. Purchase frequency does not vary much between the top and boiom brand. But penetra=on does, which is what drives market share! Shampoo Brands Market Share % Annual Market Penetra9on % Purchase Frequency (Avg) Head & Shoulders 11 13 2.3 Pantene 9 11 2.3 Herbal Essences 5 8 1.8 L’Oreal Elvive 5 8 1.9 Dove 5 9 1.6 Sunsilk 5 8 1.7 Vosene 2 3 1.7 Average 1.9 Purchase frequency doesn’t vary much Penetra=on varies a lot

46. BOTTOM LINE: YOUR BRAND’S HEALTH DEPENDS ON LOTS OF PEOPLE WHO DON’T KNOW YOU WELL, DON’T THINK OF YOU MUCH AND DON’T BUY YOU OFTEN, IF AT ALL. Mar6n Weigel

47. REACHING ALL BUYERS IS VITAL. TO INCREASE AND MAINTAIN BRAND GROWTH, LIGHT & NON-‐BUYERS MATTER, NOT JUST LOYALS. SHOOT FOR FAME AND USE HIGHLY EMOTIVE CONTENT BASED ON PEOPLE’S INTERESTS, THAT IS EASY TO INTERACT WITH, BACKED BY A STRONG MEDIA-‐BUY AND DISTRIBUTED FAR BEYOND BRAND COMMUNITIES.

48. Nigel Rahimpour Planning Director Nigel.Rahimpour@gmail.com THANK YOU!