1. Marketing Best Practice In China Greg Paull @R3WW

2. who are we? GLOBAL MARKETING CONSULTANCY BEIJING, SINGAPORE, SHANGHAI, US EFFECTIVENESS with efficiency LONG TERM RELATIONSHIPS 2

3. What do we do? IMPROVING MARKETING EFFICIENCY AND EFFECTIVENESS RETURN ON INVESTMENT AGENCY REMUNERATION AGENCY RELATIONSHIPS RETURN ON MEDIA RETURN ON ASSETS 3 AGENCY REVIEW

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5. By The Book 5 1.Innovation 2. Hyper Competition 3. Marketing for Growth 4. People Daily 5. Digital China 6. Agency Marriages 7. 2030 China CMO

6. 6 Innovation

7. 7 WHEN ASKED TO NAME INNOVATIVE FIRMS, CHINESE FIRMS SCORED LOWER THAN INTERNATIONAL ONES

8. Pricing Innovation 8 The Chinese mobile phone called Xiaomi (), is very successful. If you look to R&D thought leadership in western culture, they would say Xiaomi is not innovative theyll say its a copied machine. But Chinese people will consider it to be an innovation. Chinese consumers ask, why can Apple produce this product at only 4,000 RMB when this player can produce it at 2,000 RMB? Lawrence He Philips

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11. Fast Cycles Work at China Speed R&D Race Constant Innovation Price is Right Look for Real Value 11 Innovation Learnings

12. 12 Hyper-Competition

13. 13 40 MILLION

14. Competition I always tell my multinational friends that while you are spending days in a conference room talking about mission statements, your local competitors are already out there selling to your customers 14 Paul Cheng Esprit

15. VS 15 VS Price Competition

16. We think that nowadays, Chinese consumers want to buy the real thing. But the day that counterfeiters stop copying you, the brand may be in trouble- if youre not being copied, there is something wrong with your brand 16 Jens Meyer adidas Shanzhai

17. Global vs local New types of competitors Quality New types of demands Media New types of content 17 Competition Learnings

18. 18 Marketing For Growth

19. Top 100 85% 19 Next 300 10% The 1.3b mouths?

20. 20 China is like Europe

21. 21 The needs of consumers from different tiers of cities are usually different.. For high incomes, we shoot for high levels of penetration and repeated purchases. So in this segment we think about whom we are targeting and the population in place. Tony Zhang Ferrero Growth

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23. New partners Pepsi, J&J, Nestle, others New channels KC, adidas, Taobao New needs Shift from Price to Value 23 Growth Learnings

24. 24 People Daily

25. I would say the China talent market is the most challenging market around the world, considering the turnover rate. There are many opportunities. In China, you can increase headcount every year because business is growing, but the challenge lies in maintaining talent. 25 Gary Xie Kimberly Clark People Daily

26. 2010 6,000,000 26 1975 100,000 2000 1,000,000 40,000,000 Scary Stats University Graduates

27. Scary Stats Job Satisfaction WOULD YOU LIKE TO CHANGE YOUR CURRENT JOB OR INDUSTRY?

28. Our mission is to develop business leaders, not just advertising or new product experts. So thats always a unique competitive advantage that we create. We rotate our people to give opportunities to work on different challenging assignments. 28 June Bu JNJ People Daily

29. Build on brands Leverage the company Build on talent Overseas training, trips Build on warmth From 4-2-1 to a team 29 People Learnings

30. 30 Digital China

31. 31 The book is full of them.

32. 32 The book is full of them.

33. 33 2013 Q1 Weibo & SNS Base N=1533, 2012 Q4 Base N=1518, 2012 Q3 Base N=1488, 2012 Q2 Base N= 1504, 2012 Q1 Base N=1449, 2011 Q4 Base N=1422, 2011 Q3 Base N=1261, 2011 Q2 Base N=1106 Samsung moves up to lead online activities participation 5.2% 4.5% 3.8% 5.9% 8.3% 7.9% 4.5% 3.8% 0% 2% 4% 6% 8% 10% 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 Coca-Cola Samsung Apple Nike Lenovo

34. 2013 Q1 En-Spire Index VS Cross Media Spend 34 En-Spire Index Media Spend (Dec 16, 2012- Mar 15, 2013 RMB m) Source: CTR, Media Type: TV, Radio, Newspaper, Magazine, Outdoor, Subway 0 20 40 60 80 100 120 140 0 500 1000 1500 2000 2500 3000 3500

35. Me-Commerce $3b on 11-11 Segment Nike, Samsung, other s Track End to End Measurement 35 Digital Learnings

36. 36 AGENCY MARRIAGES

37. 37 178,000 choices

38. 38 Agencies Marie Han Silloway Starbucks We actually bring our agency partners every month to visit our stores. We believe this is the best way to engage our agency partners in our business model to understand our business and our consumers.

39. 39 China Digital Agencies you SHOULD know

40. Concubines? Look to the leaders Creative? Cut through clutter Collaboration? Push all to Partner 40 Agency Learnings

41. 41 China CMO 2030

42. 42 Everywhere COMMERCE SHOPPING WHENEVER WHEREVER WITH WHATEVER

43. 43 THE WIDE open web From connections to contextual relevance

44. 44 LOYALTY PAYS

45. The INTERNET of things Bridging worlds and enhancing awareness

46. Summary NOT NOW Hardly Ready Hyper-Competition 46

47. Summary NOT NOW Hardly Ready Hyper-Competition Fighting Locals Finding Locals 47

48. Summary NOT NOW Hardly Ready Hyper-Competition Fighting Locals Finding Locals Missing Talent Motivating Talent 48

49. Summary NOT NOW Hardly Ready Hyper-Competition Fighting Locals Finding Locals Missing Talent Motivating Talent Almost Digital Omni-Digital 49

50. Summary NOT NOW Hardly Ready Hyper-Competition Fighting Locals Finding Locals Missing Talent Motivating Talent Almost Digital Omni-Digital Emerging Globally Essential Globally 50

51. Summary NOT NOW Hardly Ready Hyper-Competition Fighting Locals Finding Locals Missing Talent Motivating Talent Almost Digital Omni-Digital Emerging Globally Essential Globally 51

52. Thank YOU! @R3WW @R3CHINA www.r3ww.com www.chinacmobook.com