1. THE NEW REALITIES OF MARKETING FROM DEMAND TO DEMANDING: IPG MAY 2014 INDIA

2. THE PERCENT OF INDIAN CONSUMERS WHO NOW HOLD BRANDS TO A HIGHER PERFORMANCE STANDARD THAN EVER BEFORE 3. ESTIMATED SIZE OF THE GLOBAL MIDDLE CLASS BY 2030. AN INCREASE OF OVER: Source: European Union Institute for Security Studies (2013) 4. Wall Street Journal 7/5/13 The New Middle EVERYWHERE IT HAS EMERGED, A MODERN MIDDLE CLASS CAUSED FERMENT 5. Wall Street Journal 7/5/13 The New Middle MIDDLE CLASS PEOPLE WANT NOT JUST SECURITY FOR THEIR FAMILIES, BUT CHOICES AND OPPORTUNITIES FOR THEMSELVES 6. SPURRED BY NEW TECHNOLOGIES THAT PROVIDE EASIER AND FASTER ACCESS TO MORE AND MORE INFORMATION 7. A NEW DEMAND ON POLITICIANS, ON GOVERNMENTS, ON THEMSELVESAND ON THE PRODUCTS THEY SHOP FOR AND CONSUME. THE NEW REALITY 8. MORE DEMANDING OF THE PRODUCTS THEY CONSIDER (QUALITY YES, BUT MUCH MORE) OF THE WAY MARKETERS DELIVER THEIR INFORMATION OF WHEN MARKETERS DELIVER THEIR INFORMATION OF THE SPECIAL VALUE FROM TODAYS CONSUMER EXPERIENCE OF WHATS NEEDED TO ADVOCATE FOR A BRAND OF THE CHANNELS THAT CAN PROVIDE PRODUCT INFORMATION OF HOW THEY GET TRUSTED INFORMATION OF THEIR OWN PROCESS TO EVALUATE PRODUCTS TODAY 9. AND UNDERNEATH MUCH OF THIS, A GROWING DEMAND FOR TRUST 10. OUR INTERVIEWS US, BRAZIL, CHINA, INDIA ENGLAND AND RUSSIA METHODOLOGY 600+/- ONLINE INTERVIEWS, PER COUNTRY: Men and women Interviewing March 2013 Completed first wave of research in 2009: US, China. 75 0 BOOMERS GEN X GEN Y US BRAZIL CHINA INDIA RUSSIA UK 11. DIA RUSSIA UK ? WHICH COUNTRY? Most values advertising in their product decision making? US, BRAZIL, CHINA, INDIA, RUSSIA & UK 12. DIA RUSSIA UK ? WHICH COUNTRY? Leads in mobile use of product information? US, BRAZIL, CHINA, INDIA, RUSSIA & UK 13. DIA RUSSIA UK ? WHICH COUNTRY? Where people most value product reviews? US, BRAZIL, CHINA, INDIA, RUSSIA & UK 14. WHICH COUNTRY? Where people are least likely to be confused or frustrated by all the product information today? US, BRAZIL, CHINA, INDIA, RUSSIA & UK DIA RUSSIA UK ? 15. DIA RUSSIA UK ? WHICH COUNTRY? Where having great product knowledge has the greatest impact on self-esteem? US, BRAZIL, CHINA, INDIA, RUSSIA & UK 16. DIA RUSSIA UK ? WHICH COUNTRY? Where consumers are most inclined to initiate brand conversations with their friends? US, BRAZIL, CHINA, INDIA, RUSSIA & UK 17. WHAT ARE THESE NEW REALITIES 18. CONTINUED LOW LEVELS OF CONFUSION AND FRUSTRATION FROM US BRAZIL CHINA INDIA RUSSIA UK Frustrated Confused FEELINGS ABOUT AVAILABLE PRODUCT INFORMATION (MEAN RATINGS; 1-10) PRODUCT INFORMATION 3.1 3.2 3.5 3.5 2.5 3.0 3.1 3.7 3.5 2.6 3.2 3.1 Smarter 7.0 6.5 3.7 7.5 6.9 6.0 19. FEELINGS ABOUT INFORMATION (MEAN RATINGS; 1-10) In Control INDIA: INFORMATION PROVIDING 7.0 7.1 2011 2013 LESS CONFUSION Smarter 7.3 Confusion 3.7 Uninformed 5.0 7.5 3.5 4.4 20. % STRONGLY AGREEING but this doesnt mean that more information is necessarily better! More on this later. INFORMATION IS US % BRAZIL CHINA INDIA RUSSIA UK 49 57 56 57 58 63 66 60 55 66 55 60 62 60 66 36 49 40 Information availability has made me more confident in brand choices Increased information has also increased my satisfaction with brands Information is my friend THEIR FRIEND! 21. INDIA: SLIGHT INCREASE IN VALUING PRODUCT INFORMATION 2011 2013 % STRONGLY AGREEING - BRAZIL 55 Information is my friend 54 60Information availability has made me more confident in brand choices 57 57 Increased information has also increased my satisfaction with brand 55 22. I always seek out trusted resources of information on brands % STRONGLY AGREEING US % BRAZIL CHINA INDIA RUSSIA UK 52 67 60 57 63 42 THE VALUE OF TRUST A STRONGER AND STRONGER MARKET FORCE 23. % STRONGLY AGREE WITH THE OLDER INDIAN POPULATION MOST DEMANDING OF 52 57 63 18 - 25 26 - 42 43 - 62 TRUSTED RESOURCES I always seek out trusted resources of information on brands 24. To Find The Most Trusted Information MORE AND MORE More And More Reliance On Tools To Filter, Process And Make Sense Of It All INFORMATION 25. PERSONAL RECOMMENDATIONS ARE MORE IMPORTANT THAN THEY WERE A FEW YEARS AGO CONSUMERS SEEK (DEMANDING!) THE PERCENT AGREEING IS UP IN ALMOST EVERY COUNTRY SURVEYED! TRUSTED, INDEPENDENT INFORMATION FROM PERSONAL SOURCES 26. OTHER OBJECTIVE, TRUSTED SOURCES ALSO TURNING MORE AND MORE TO PRODUCT REVIEWS THE PERCENT STRONGLY AGREEING IS UP IN EVERY COUNTRY SURVEYED! MORE AND MORE IMPORTANT THAN EVER 27. The Power of Friends and Families, and Product Reviews in India Friends and family from whom you sought out opinions Friends and family who volunteered their opinion Research you conducted on the internet Product reviews by experts (such as professionals in magazines, on the web) Product reviews by people like you (such as in publications, on the Web) Advertising by the company (such as TV, print, Internet ads) Observing people use them Personal and Brand pages on Social Media US % BRAZIL CHINA INDIA RUSSIA UK WHAT CHANNELS ARE MOST VALUABLE 56 54 61 55 56 44 43 51 49 47 42 42 51 45 53 52 45 53 50 44 50 58 58 55 63 63 45 51 58 59 62 57 58 44 46 57 60 45 42 39 62 30 14 24 19 19 16 13 28. INDIA: WITH DRAMATIC SHIFTS IN VALUE OF TRUSTED SCREENER CHANNELS Wave 2 Wave 3 53 Product reviews by experts 43 50Product reviews by people like you 35 53 Friends and family 44 29. Social network sites are a good source of word-of mouth information on brand experiences % STRONGLY AGREEING US BRAZIL CHINA INDIA RUSSIA UK 34 46 49 44 42 14 CONSUMERS ALSO DEMANDING MORE HELP FROM SOCIAL MEDIA A SOURCE OF TRUSTED FRIEND OPINION 30. With all the information available today, I am relying more and more on trusted brands % STRONGLY AGREEING US % BRAZIL CHINA INDIA RUSSIA UK 44 52 55 60 53 27 ALL LEADING TO MORE RELIANCE ON TRUSTED BRANDS 31. % STRONGLY AGREEING 40 55 53 41 3257 US BRAZIL CHINA INDIA RUSSIA UK AS A SIGNAL OF NEEDED TRUST, BRAND REPUTAION IS EVEN MORE VALUABLE TODAY Brand names and brand reputation matter more these days than ever before 32. Strong effort to support independent information sources (blogs, price comparison sites, aggregators, opinion leaders) with rich, valuable, honest brand information Do you have a Brand Truth Director or a Chief Content Officer? HOW ARE BRAND LEADERS MEETING THIS NEW BUSINESS CHALLENGE 33. More and more transparency Only 6% of all on-line product complaints are now responded to by manufacturers. The other 94%? Being trusted means you recognize your brands weaknesses, admit failures, correct themand have the conversation. HOW ARE BRAND LEADERS MEETING THIS NEW BUSINESS CHALLENGE 34. And understand that driving brand trust is much more than just providing information via the web. Needs to include: Employee efforts Consistency of product quality Brand image efforts Product sourcing/company values HOW ARE BRAND LEADERS MEETING THIS NEW BUSINESS CHALLENGE 35. THE DRAMATIC EMERGENCE OF BRAND JOY AND SOCIAL CURRENCY FROM BRANDS 36. % VERY STRONGLY AGREEING US % BRAZIL CHINA INDIA RUSSIA UK 44 53 54 50 46 30 52 48 57 54 61 43 46 56 51 53 46 32 50 66 63 57 58 41 The research I do on certain brands adds to my enjoyment of them Its fun to be knowledgeable about certain product categories Finding information on brands is fulfilling I enjoy researching the information for buying decisions WITH THE EXCEPTION OF UK, PRODUCT LEARNING IS A SOURCE OF JOY & FULFILLMENT 37. INDIA LEVELS OF JOY FROM 2011 2013 % VERY STRONGLY AGREEING 57 I enjoy researching the information for buying decisions 54 54Its fun to be knowledgeable about certain product categories 53 50 The research I do on certain brands adds to my enjoyment of them 50 PRODUCT RESEARCH HOLDING STEADY 38. AND ESPECIALLY IN BRAZIL, CHINA, AND INDIA, INCREASINGLY THEY WANT TO TELL ABOUT BRAND KNOWLEDGE AND COMMITMENT % STRONGLY AGREEING US % BRAZIL CHINA INDIA RUSSIA UK I regularly initiate conversations with friends, family, or colleagues about some brands If I feel strongly about a certain brand, or brands, I am an active advocate for them 35 40 53 48 33 20 38 42 50 49 39 25 39. WHAT ELSE IS DRIVING BRAND ADVOCACY? % STRONGLY AGREEING US % BRAZIL CHINA INDIA RUSSIA UK 59 62 50 73 49 58 I like to help people I enjoy being seen as knowledgeable 40 50 39 61 52 31 40. WITH INDIA SHOWING THE HIGHEST LEVEL OF PRIDE IN PRODUCT KNOWLEDGE I take pride in being knowledgeable about the brands I use % STRONGLY AGREEING US % BRAZIL CHINA INDIA RUSSIA UK 46 43 42 51 45 30 41. Pursue advocate communities. In the US, BuzzAgent Telling others about your product in exchange for goods/services. Theyre easily found. (frequent visitors to blogs, social media, company web sites.) Important to establish special programs to feed them the information (and brand excitement) theyre looking for. Reward them. ADVOCATES WORK HARDER FOR YOU HOW TO MAKE BRAND LOVERS AND 42. BUT NOT ALL DECISION MAKERS ARE ALIKE OUR RESEARCH HAS IDENTIFIED 5 SEGMENTS 43. INFORMATION OBSESSED I Research Most Decisions Deeply, And Often Enjoy The Research As Much As The Product Itself 44. Im Not Obsessed With Research, But I Enjoy It. It Makes Me Feel Good When People Ask For My Advice When Theyre Making Those Purchases INFORMATION SELECTIVE 45. I Dont Especially Enjoy Researching, But I Know I Need Information To Make The Right DecisionINFORMATION FUNCTIONAL 46. I Just Want To Make Quick Decisions, So Will Ask Friends What They Think INFORMATION PASSIVES 47. Help. All That Information Just Frustrates Me! INFORMATION HATERS 48. WITH DRAMATIC DIFFERENCE IN HOW THEY VIEW INFORMATION Information Passives Information Obsessed % STRONGLY AGREEING - INDIA 90 Information is my friend 37 90Information availability has made me more confident in brand choices 44 73 Finding information is fulfilling 37 49. 41%31% IN INDIA, THE SEGMENTS INTENSELY INVOLVED IN PRODUCT RESEARCH AND INFORMATION HAS GROWN 20132011 50. Its all about presenting the right information in the right way, at the right time, for each consumer group. It doesnt necessarily mean providing more, or less, information. HOW ARE SUCCESSFUL MARKETERS DEALING WITH THESE SEGMENTS 51. Since each segment has different needs when it comes to consuming product information, marketers today need to help them find the information pathway thats best for them, and then guide them along. BRAND NORTHSTAR BE THE 52. for casual consumers just wanting some information on key benefits FOR EXAMPLE, ON YOUR WEBSITE: Quick summary of your key features and advantage. Focus on primary product benefits/use. ROUTE 1 53. FOR EXAMPLE, ON YOUR WEBSITE: for casual consumers who are more engaged, and wanting deeper production and competitor information Quick summary of your key features and advantage. Focus on primary product benefits/use. ROUTE 2 54. FOR EXAMPLE, ON YOUR WEBSITE: for the information obsessed and selective Deep dive. Deeper presentation of all category players, competitive product specs, consumer reviews, blogs. Deep background on your product story, (history, sourcing, social policies, green program, etc.). ROUTE 3 55. BUT THERES ONE COMMON THING ALL SEGAMENTS ASK FOR, ACTUALLY THEY DEMAND IT 56. Which was most powerful in driving purchases, repeat and recommendations? RECENT SURVEY CONDUCTED BY THE CORPORATE EXECUTIVE BOARD AMONG 7000 CONSUMERS WORLDWIDE Looked at 40 marketing-related variables. 57. DECISION EASE: THE EASE WITH WHICH CONSUMERS CAN GET TRUSTWORTHY INFORMATION ABOUT A PRODUCT. 9% more likely to be repurchased. 115% more likely to be recommended to others! Brands with the top decision simplicity scores were 86% more likely to be purchased (vs. low scoring brands). 58. TODAYS NEW REALITIES 59. The consumer is more demanding than ever before TODAYS NEW REALITY 60. How can we deliver more and more of it to our customers? How do we increase transparency? How do we build stronger brand trust in our brand and our company TODAYS NEW REALITY KEY TO MUCH OF THAT DEMAND IS THE NEED FOR TRUSTED INFORMATION 61. How do we better satisfy their demand for product information and social currency? How do we encourage users to advocate more for us? EMERGING DEMAND FOR SOCIAL CURRENCY AND JOY FROM PRODUCT INFORMATION AND THE FOLLOW ON INTEREST IN ADVOCATING FOR YOUR PRODUCT TODAYS NEW REALITY 62. How can we make the process easier, faster, simpler for our customers and prospects? TODAYS NEW REALITY ALWAYS RECOGNIZE THE IMPORTANCE OF DECISION EASE 63. NOW, MORE THAN EVER... EMBRACE THE NEW REALITIES 64. NOW, MORE THAN EVER... EMBRACE THE NEW REALITIES