project: superbrand (havas worldwide)

R E B O O T: 1 0 T R U T H S R E S H A P I N G C O R P O R A T E B R A N D S

P R O S U M E R R E P O R T # 3

January 2016

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2015 GLOBAL PROSUMER STUDY

28 marketsn=10,131

Australia ● Belgium ● Brazil ● Canada ● China ● Colombia ● Czech Republic ● Estonia ● France ● Germany India ● Ireland ● Italy ● Japan ● Latvia ● Lithuania ● Malaysia ● Mexico ● Netherlands ● Poland ● Portugal

Saudi Arabia ● Singapore ● South Africa ● Spain ● United Arab Emirates ● United Kingdom ● United States

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WHO ARE PROSUMERS?

For more than a decade, Havas Worldwide has been tracking the roughly 15‒20% of consumers who are influencing trends and shaping markets around the globe

Key characteristics:

• Embrace innovation• Constantly seek out information

& experiences• Enthusiastic adopters of new

media & technologies • “Human media” who transport

attitudes & ideas• Marketing savvy and demanding of

brand partners• Highly influential and sought-after for

opinions & recommendations

20% of the 2015 sample qualify as Prosumers

Image: Creative Commons/[email protected]

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THE QUESTIONS WE EXPLORE IN OUR LATEST GLOBAL STUDY

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In this presentation, we uncover 10 overarching truthsthat dictate how the modern corporation is expected to behave

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THINK YOUR FACTORY GATES ARE STRONG ENOUGH TO KEEP YOUR SECRETS SECURELY LOCKED INSIDE?

THINK AGAIN...

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TODAY, BUSINESS HAS BECOME…EVERYBODY’S BUSINESS

Image: Creative Commons/Tim Rich and Lesley [email protected]

I am paying more attention than in the past to the environmental and/or social impact of the products I buy

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PEOPLE ARE ACTIVELY LOOKING FOR INFORMATION ON COMPANIES AND BRANDS

7 in 10PROSUMERS

MAKE IT A POINT TO KNOW MORE ABOUT THE COMPANIES THAT MAKE THE PRODUCTS &

SERVICES THEY USE

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88%OF PROSUMERS BELIEVE IT’S VERY IMPORTANT FOR A COMPANY TO BE

TRANSPARENT

TRANSPARENCY IS NO LONGER OPTIONAL

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CORPORATE SCANDALS NOW TAINT ENTIRE INDUSTRIES

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COUNTRIES WITH WIDESPREAD CORRUPTION HAVE EVEN LESS TOLERANCE FOR SHADY BUSINESS PRACTICES

100%“IT’S IMPORTANT FOR

A COMPANY TO BE TRANSPARENT”

*Prosumers % agreeing strongly/somewhat

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NOW THAT IT’S EASIER THAN EVER FOR CONSUMERS TO GET AT THE TRUTH…

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…COMPANIES ARE COMPETING ON TRANSPARENCY TO SHOW THEY HAVE NOTHING TO HIDE

Chipotle became the first fast‐food chain to tag GMOs and has now banned them entirely

Coca‐Cola opened its doors in Brazil to counter rumors of dead rats in its bottles

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YESTERDAYCONSUMERS BOUGHT

BRANDS WITHOUT THINKING WHO WAS BEHIND THEM

A COMPANY’S BAD BEHAVIOR DIDN’T NECESSARILY TARNISH

THE REPUTATION OF ITS BRANDS

CORPORATE BRAND

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TODAY, THERE ARE ALL SORTS OF WAYS TO INVESTIGATE WHO’S BEHIND THE THINGS YOU BUY…

The Buy Partisan app (US) lets users scan items at retail to find out which political parties the brand’s

owners, board, and employees support

Oxfam’s Behind the Brand Scorecard assesses agricultural sourcing policies of world’s 10 largest food and beverage companies

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…AND TO PUNISH THOSE THAT FALL SHORT

I avoid buying from companies that have a negative social or environmental impact

56/43 52/36 60/41

85/70 87/6380/58

An attitude that’s even more pronounced in emerging markets

Prosumer/Mainstream

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W H Y D O P E O P L E E X P E C T S O M U C H M O R E O F

B U S I N E S S E S TO D AY ?

B E C A U S E T H E Y N O L O N G E R B E L I E V E T H AT

E A R N I N G P R O F I T S F O R S H A R E H O L D E R S I S A

C O M PA N Y ’ S S O L E O B L I G AT I O N

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BUSINESSES ARE NOW REGARDED AS MEMBERS OF THE SOCIAL COMMUNITY—AND ARE EXPECTED TO BEHAVE AS SUCH

Companies have an ethical obligation to operate in a way that does not harm the environment

Companies have a responsibility to do more than just generate profit

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AND THAT’S ADDED QUITE A LOT TO THE MODERN CORP’S “TO DO” LIST

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ABIDING BY THE RULES IS NOT ENOUGH—BUSINESSES MUST EMBRACE A CLEAR SET OF VALUES…

How important is it for a company to uphold strong values?

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…WHILE ALSO EXPRESSING A VISION FOR A BETTER WORLD

How important is it for a company to express a vision of a better world?

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VALUES CAN BE AN EXTRAORDINARY ASSET…

A clear set of values helps companies attract and retain

the best employees

A clear set of values plays an important role in a company’s success

A clear set of values helps a company be more profitable

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…AND A BOOST AT THE CASH REGISTER (ESPECIALLY IN EMERGING MARKETS)

91/78 89/7290/65Prosumer/Mainstream

I am more likely to buy from a company that is doing good things for the world

83/71 92/6591/66Prosumer/Mainstream

I prefer to buy from companies that share my personal values

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CONSUMERS REWARD PURPOSE-DRIVEN

COMPANIES BECAUSE THEY ALLOW CUSTOMERS TO FEEL THEY’RE MAKING A

POSITIVE DIFFERENCEIN THE WORLD

Image: Business Wire/ http://www.businesswire.com/news/home/20120210005068/en/Chipotle‐Air‐“Back‐Start”‐GRAMMY‐Awards

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ALL OVER THE WORLD, WE’VE BEEN SEEING A SHIFT IN CONSUMPTION BEHAVIORS

77%OF PROSUMERS

BELIEVE OVERCONSUMPTION IS PUTTING OUR SOCIETY AT RISK

52%OF PROSUMERS

WOULD HAPPILY LIVE WITHOUT MOST OF THE THINGS THEY OWN

Source: Prosumer Report, “The New Consumer and the Sharing Economy,” 2014

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MINDFUL FRUGALITY HAS BECOME ASPIRATIONAL

68%GLOBALLY

ADMIRE THOSE WHO ARE MAKING AN EFFORT

TO REDUCE THEIR CONSUMPTION49%

GLOBALLYADMIRE THOSE WHO CAN AFFORD TO BUY

WHATEVER THEY WANT

Source: Prosumer Report, “The New Consumer and the Sharing Economy,” 2014

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AND QUALITY IS MORE VALUED THAN LOW PRICES

It is very/somewhat important that a company offer high-quality goods and/or services

It is very/somewhat important that a company offer low prices

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When consumers buy certain products, Calphalon will send their old cookware (any brand) to a recycling center

SMART BRANDS ARE REDUCING THE GUILT OF CONSUMPTION BY OFFERING PRODUCTS THAT ARE LONGER LASTING AND MORE SUSTAINABLE

The Kiddy Comfort Pro car seat adjusts to fit the needs of children from around 9 months to

12 years old In Sweden, Nudie Jeans is turning old jeans into

rugs

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86%PROSUMERS SAY

CHANGE IS A GOOD THING

Image: Advantage Learning/ http://www.prince2.ca/prince2/prince2‐change‐control/

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ONLY 1 IN 5PEOPLE GLOBALLY BELIEVE

GOVERNMENTS/POLITICIANS WILL BE THE GREATEST AGENT OF CHANGE

BUT PEOPLE NO LONGER TRUST GOVERNMENTS TO BRING ABOUT POSITIVE CHANGE

Image: Netflix Original Series ‘House of Cards’

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PEOPLE—AND OUR CONSUMPTION CHOICES—ARE BELIEVED TO OFFER THE BIGGEST CHANCE FOR CHANGE

Which of the following do you believe will be the greatest agent of change?

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BUT PEOPLE CAN’T BRING ABOUT CHANGE ON THEIR OWN…

201235%

OF THE GLOBAL SAMPLE BELIEVED THAT PEOPLE,

EMPOWERED BY SOCIAL MEDIA, WOULD BE THE GREATEST

AGENT OF CHANGE

2015THE PERCENTAGE

FALLS 4 POINTS, TO

31%

Image: The Atlantic/http://cdn.theatlantic.com/static/infocus/moscow1991/AP9103100427.jpg

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THE WORLD’S PROBLEMS ARE SIMPLY TOO BIG AND COMPLEX FOR THE PUBLIC TO SOLVE ALONE

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RESULT: A NEW ROLE FOR BIG BUSINESS

I believe companies have a more important role than governments today in creating a

better future

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DRIVING CHANGE IS NOW SEEN AS AN OBLIGATION OF BIG BUSINESSES

Businesses bear as much responsibility as governments for driving positive social change

How important is it for a company to drive social change?

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AND FAVORED BRANDS ARE EXPECTED TO GET INVOLVED

Image: Creative Commons/Disney|ABC Television [email protected]

I would like my favorite brands/companies to play a bigger role in solving social problems

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PROSUMERS, ESPECIALLY, ARE LOOKING TO BUSINESSES TO ADDRESS SOCIAL WRONGS

How important is it for a company to fight injustice?

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THE GOOD NEWS: “DOING GOOD” IS INCREASINGLY TIED TO “DOING WELL”…

The most successful companies in the future will be those that drive social change

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…AND MORE BRANDS AND CEOS ARE WILLING TO TAKE THE LEAD

Richard Branson, founder, Virgin Group

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IT’S NOT ONLY ABOUT SOLVING GLOBAL ISSUES

Tony Hsieh, CEO, Zappos

I would like my favorite brands/companies to play a bigger role in my local community

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COMMUNITY ACTION CREATES MEANINGFUL CONNECTIONS

Danone creates shared value that benefits the company and its partners

alike. This approach goes beyond simple dialogue to include the “co-creation” of

solutions. This co-creation involves specific projects depending on local

circumstances.

How important is it for a company to improve the communities in which it operates?

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The Let’s Color Project from Dulux Paint brought new life to

gray spaces in Brazil, France, the UK, and India

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PEOPLE ARE NOT LOOKING FOR COMPANIES TO ACT

AS QUASI-GOVERNMENTS

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ON THE CONTRARY, THEY ACTUALLY FEAR THE POWER BIG CORPORATIONS HAVE RECENTLY OBTAINED

It scares me that some big corporations have more power than actual countries

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Corporations + governments should work together to make the

world a better place

Governments + NGOs/nonprofits should work together to make the world

a better place

Corporations + consumers should work together to make the

world a better place

WHAT PEOPLE WANT IS A COLLABORATIVE APPROACH TO PROBLEM-SOLVING

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A NEW EQUATION HAS EMERGED…

=+ +

PEOPLE GOVERNMENTS CORPORATIONS BETTERWORLD

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…WITH PRIVATE-PUBLIC PARTNERSHIPS LEADING THE WAY

Steve Howard, Chief Sustainability Officer, IKEA

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CONSUMERS DON’T CARE ONLY ABOUT WHAT THE COMPANY IS

DOING ON THE OUTSIDE

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76%GLOBALLY BELIEVE

COMPANIES SHOULD BE LEGALLY OBLIGATED TO

PROVIDE A HEALTHY WORK-LIFE BALANCE FOR EMPLOYEES

THEY ALSO WANT TO KNOW HOW A COMPANY TREATS THOSE ON THE INSIDE…

Companies should be obligated to provide a healthy work-life balance for employees

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How important is it for a company’s CEO to do each of the following?

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…BECAUSE WHAT HAPPENS INSIDE DOES NOT STAY INSIDE

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GREAT EMPLOYERS EARN REPUTATIONAL DIVIDENDS

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COMPANIES HAVE TO KNOW THE PARTICULAR ISSUES PEOPLE EXPECT THEM TO SOLVE…

I most value companies that are doing work in the following area

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…WHILE REMEMBERING THAT WHAT PEOPLE WANT IS INFLUENCED BY THEIR GEOPOLITICAL CONTEXT

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*Prosumer/Mainstream

IN CHINA, FOR EXAMPLE, PEOPLE MOST WANT COMPANIES TO “CLEAN” THEIR EXTREMELY POLLUTED CITIES


SUSTAINABILITY /THE ENVIRONMENT

75/64

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WHEREAS IN RECESSION-BATTERED SPAIN & IRELAND, REDUCING POVERTY & INCOME INEQUALITY IS THE #1 CONCERN



POVERTY/INCOME INEQUALITY

47/4449/45

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IN BRAZIL & INDIA, EDUCATION NARROWLY BEAT OUT THE ENVIRONMENT AS THE AREA IN WHICH CONSUMERS MOST WANT COMPANIES TO FOCUS

EDUCATION

29/3637/35

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GETTING CONSUMERS INVOLVED ADDS EVEN MORE VALUE

Google’s Project Sunroof helps homeowners determine whether rooftop solar panels are a financially viable option and, if so, what

size to install

Chinese automaker BYD is introducing battery‐powered buses that can go a full day without charging—giving commuters a more

environmentally friendly way to get to and from work

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A PURPOSE-DRIVEN CEO DEFINES A FIRM’S CORE VALUES

Who/what defines a brand’s core assets (what it is and what it stands for)?

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THE CEO NOW SERVES AS A ROLE MODEL BOTH WITHIN AND OUTSIDETHE COMPANY

How important is it for a company’s CEO to do each of the following?

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A NEW BREED OF CORPORATE ICON

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- ONCE AN ACT OF CHARITY, CONTRIBUTING TO THE COMMON GOOD IS NOW A CORE ATTRIBUTE OF SUCCESSFUL BUSINESSES

- A PURPOSE BEYOND PROFIT PROVIDES A VALUABLE EDGE AT A TIME WHEN ORGANIZATIONS ARE SCRAMBLING TO COMPETE FOR THE VERY BEST TALENT

- DONE RIGHT, A CAREFULLY CHOSEN AND CLEARLY COMMUNICATED CORPORATE PURPOSE WILL ELEVATE THE FORTUNES OF BOTH THE BUSINESS AND ITS INDIVIDUAL BRANDS

A PURPOSE BEYOND PROFIT IS GOOD FOR BUSINESS—AND A RELIABLE PATH TO “SUPERBRAND” STATUS

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THANK YOU

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To find out how Havas Worldwide can help your brand, please contact:Matt WeissGlobal Chief Marketing OfficerT +1 212 886 2043E [email protected]

For media inquiries, please contact:Yvonne BondGlobal Communications DirectorM +1 646 643 8824E [email protected]