Clear Fall 2015 by Clear

bringing clarity to a complex world

CLEAR | FALL 2015 | VOL 1

WHAT’S NEW WE ARE PROUD TO BE ONE OF THE FOUNDING MEMBERS OF THE JOURNAL OF CULTURAL MARKETING STRATEGY A new bi-annual business journal dedicated to bridging the gap between corporations and academia in cultural marketing research. SUBSCRIBE TO THE JOURNAL HERE: http://www.henrystewartpublications.com/jcms

8. EXPERIENCE

22. CULTURE 02 | CLEAR

14. INNOVATION

CONTENTS CLEAR | FALL 2015 | VOL 1

4 WHO WE ARE

Introduction to our thinking

FEATURES 8 OWN.NEXT.NOW

A quick guide to building a category vision

1 4 BRAVE NEW WORLD

Importance of being brave and bold

22 CULTURE SHOCK

Responding to the demands of a major population change

29 WORKSHOPS

Learn more about our shopper psychology workshop

31 CONTACT INFO

Where and how to find us CLEAR | 03

WE ARE INSIGHT-LED BRAND AND MARKETING STRATEGISTS Clear New York Clear London

Clear Singapore 04 | CLEAR

WE BELIEVE that complexity and change are the greatest barriers to value creation

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UNLOCKING ADVANTAGE WITH CLEAR STRATEGY

06 | CLEAR

Anticipating change by uncovering powerful

INSIGHTS

Captivating consumers with unparalleled

EXPERIENCES

Being brave with

INNOVATION to build products, brands, and businesses that win. CLEAR | 07

RUTH INGRAM DIRECTOR CLEAR NEW YORK

OWN. NEXT. NOW.

Finding the unmet need to grow the category

08 | CLEAR

LOSING CONTROL People love categories that give them something — value in their everyday lives. As categories ebb and flow in their development, some meet our needs better than others. In our Brand Desire study, we define that consumer value as ‘substance’ — delivering great experiences and playing a positive role in people’s lives. When a brand has a substance deficit it will lose demand. But when a whole category has a deficit, it’s a risk or an opportunity, depending on your view. The deficit might come from over-commoditization, a lack of meaningful difference, or a great product delivery but a terrible shopper experience.

BEER

ENERGY

FINANCIAL SERVICES SNACKING

SPORTS APPAREL

OTC HEALTHCARE

PERSONAL CARE

HAND HELD TECHNOLOGY

CATEGORY SUBSTANCE

Either way, it’s disruption waiting to happen…

CATEGORY DISRUPTION VOLATILITY Source: Brand Desire International Study ‘13, average score for top 5 brands per category

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GET FULL VALUE Owning your category’s next now delivers multiple values across your business: Links your business strategy to the brand Creates a long term innovation roadmap Helps guide consumer experience improvements versus competition Builds the foundation of a mutually beneficial relationship with your customers and consumers

O R R TF O O LE L S IO

HOLISTIC CATEGORY VISION

SH ER UE TN L R VA

• Engaging story • Objectives alignment • Proprietary tracking

N O TI E VA I N O L N PE IN PI

• Growth drivers identified • Offer architecture redefined • Category-led growth strategy

E EX XC E EL CU LE TIO N N C E

• • • •

• Natural adjacencies • Future-proofed NPD • Sized opportunities

• Experience relevance • Growth-linked levers • POS/ touchpoint efficacy

SHAPE WHAT’S NEXT Whether that disruption opportunity is a function of rapidly growing shopper expectations, or a symptom of faltering retailer vision, brands in those categories — product or retail models — have never been better placed to win by defining the future. That future, that ‘next,’ will represent the intersection of core category truths and assets — both current and untapped, adjacent opportunities, discontinuities and trends, and a few creative leaps. 10 | CLEAR

NEED TO OWN YOUR NEXT? Five signs you need a new category vision…

1. JOY GAP

2. EMPTY PIPE

3. NEW UX

Do consumers get more from other category experiences than yours?

Is your brand’s success too reliant on its product innovation pipeline?

Is your primary shopper’s environment rapidly changing?

Is the buying experience in-store making the entire category experience bad?

Is your category defined by format, rather than a service or experience?

Is the core mode of interaction with your category shifting?

For instance, specialty pet retailing could learn something from human retail experience, couldn’t it?

For instance, the vitaminmineral supplements sector might need to look way beyond the pill.

For instance, how will countline products and impulse categories survive when we stop checking out at the check out?

4. LAND GRAB Other categories encroaching on your space? Are you struggling to defend shelf space, or stay more front of mind than other categories targeting similar occasions?

5. E-POV For instance, new entrants take on Snacking every week: new formats, benefits, ingredients — and many stealing the flavor profiles of traditional snacks (Why not choose the chocolate granola over the candy bar? The baked chip over the fried?)

Feel like you’re missing a POV on category growth online? Don’t have a holistic strategy that embraces digital activation and integrated engagement?

For instance, why go to the store when 5 pairs of glasses can come to you?

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HOW DO YOU CREATE A CATEGORY VISION? Clear has developed this simple model to navigate categories from a non-directional ‘now’ to an exciting, value-creating ‘next’

CONSUMER / SHOPPER Category Context Barriers & Growth Drivers

ORGANIZATION Operational Areas of Focus Category Capabilities

Category Growth Vision From.. To..

Organization Choices From.. To..

→

STRATEGY FOCUS Drivers Levers Activation Roadmap ACTIVATION PLAN By-brand By-channel Customer sell-In

{ “Our retailer partners aren’t asking us traditional category management questions... they are looking to us for help with category strategy.” –BALA MALLELA Kimberly-Clark Director for Category axnd Shopper Insights

12 | CLEAR

Strategic Growth Driver Criteria Size of prize Synergy across brands Strategic fit

Clear has developed game-changing visions for these categories and more.

PET CARE

ICE CREAM

YOGURT

SNACKING

CHOCOLATE & CONFECTIONERY

ALCOHOLIC BEVERAGES

FINANCIAL SERVICES

INFANT CARE

HEALTH CARE

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TIM SUTTON GLOBAL HEAD OF INNOVATION CLEAR NEW YORK

IT’S A BRAVE NEW WORLD The next big idea can come from anywhere.

TODAY YOU HAVE TO BE BRAVE TO WIN

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EIGHT TRUTHS OF INNOVATION #1 IF YOU AREN’T INNOVATING, YOU CAN’T CONTROL WHERE YOU’RE HEADED You can’t think your way to the future of your category. But, you can create it by testing, learning, and adapting new things with your audience.

#2 BARRIERS ARE CRUMBLING You can no longer count on traditional defensive barriers to keep fast moving competitors out. Big is becoming an impediment, not an advantage.

#3 THERE IS NO WHITE SPACE IN OUR WALLET Every consumer dollar is allocated. So every decision is an ‘instead of’ decision. To win, we have to beat what was ‘good enough’ at one time.

#4 RESONANCE CANNOT BE IMPOSED Consumers alone make associations between products and important aspects of their life. Winning products achieve resonance, they don’t impose it.

#5 YOU CAN’T RESONATE WITHOUT ALIENATING Ideas resonate when they connect powerfully with our deeply held convictions. Connecting deeply with one audience often means alienating another.

#6 PROTOTYPES, NOT POWERPOINT Innovation happens when tinkering collides with the real world, not when people talk about it in a conference room.

#7 YOU CAN’T FOLLOW YOUR WAY TO BOLDNESS If you’re not lonely, you may not be as bold as you think.

#8 BEHIND EVERY BIG INNOVATION FAILURE IS A PLAN THAT LOOKED AWESOME

Plans will almost always be wrong. The winners aren’t the best at planning, they’re the best at adapting. CLEAR | 15

Barclays Pingit. The easiest way to send money using just a mobile number.

Clear helped Barclays reframe the world of credit cards and identified a huge opportunity in mobile peer-to-peer payments and lending.

16 | CLEAR

BRAVE BRANDS ARE WINNING We asked 4,600 US consumers to help us measure the relative bravery for 240 leading brands. INCLUDES:

BOTTOM THIRD

BRAVERY INDEX*

BOTTOM THIRD

BRAVERY INDEX*

BOTTOM THIRD

133

BRAVERY INDEX*

-1.0%

2013-2014 GROWTH

INCLUDES:

4.1% 2013-2014 GROWTH

INCLUDES:

10.7% 2013-2014 GROWTH

SOURCE: 2014 Clear Brand Desire Study *Bravery index is based upon consumer responses around three core areas: How bold is the brand, how active is the brand, and how it resonates with consumers. BOLD: Based on the degree to which consumers see them as ambitious, independent, confident, exciting, outspoken, sexy, imaginative, open-minded. ACTIVE: Based on the degree to which consumers see them as aggressive, modern, ambitious, competitive, assertive, risk taker, carefree, spontaneous. RESONATING: Based on the degree to which consumers say the brand matters to them, they are attracted to it and proud to be seen with it, itâ&#x20AC;&#x2122;s a brand they think of as great, a brand they like to talk about, and brand they would love to use in the future.

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THE BLUEPRINT FOR BRAVERY BRAVEIDEAS WHAT DO WE HAVE TO ANSWER?

• • • •

What is our ‘bold and distinct’? Who do/can we resonate with? What is ‘value’ for them? How can we deliver an unexpected solution to a meaningful pain?

BRAVEIMPACT • • • •

How do we make it real? How will we distribute it? How will we fulfill it? How do we make it make sense economically?

WHAT DO WE START WITH?

THE “IDEA” BRIEF

THE “IMPACT” BRIEF

WHAT IS THE OUTCOME

IDEAS THAT RESONATE

BUSINESSES THAT THRIVE

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SOLVING FOR BOTH IDEAS AND IMPACT IS BUILT INTO EVERYTHING WE DO SLAM DUNK

utilities

foot hold

sure thing

ACCEPTABLE

DOA

mirages

shiny object

HIGH RISK

BRAVEIMPACT

THE INNOVATION GAMEBOARD

DOA

super nova

SO WHAT

GOOD

AMAZING

BRAVEIDEAS

ALLOWING US TO DELIVER SMART IDEAS FASTER SO YOU CAN BE BRAVE ENOUGH TO WIN EXCEPTIONALLY CREATIVE STRESS TESTED COMMERCIALLY SOUND

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Clear helped drive innovation that created relevance for consumers.

20 | CLEAR

A Clear brand strategy and 5 year NPD pipeline for the Durex brand to grow its share of the sexual intimacy market

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STEPHANIE HEROLD ASSOCIATE DIRECTOR, PRACTICE HEAD FOR CULTURAL INSIGHT CLEAR NEW YORK

CULTURE SHOCK

Responding to the demands of a major population change

22 | CLEAR

THE SHOCK Since the US census was published in 2010, businesses across all industries have sought ways to cater successfully to an increasingly multicultural population. Forecasts show that by 2020 the multicultural market will have grown by 34% to 134.8 million people and by 2043 there wonâ&#x20AC;&#x2122;t even be a majority anymore. These are the facts and you might ask so what? Well, if consumers are getting more diverse, so are their shopping baskets. Depending on cultural groups, their levels of acculturation, and the cultural relevancy of the category, products with a strong cultural connection can become very significant in the future. 2018 2013

2000

35.2% 24.5%

1500

34.9%

1000 500

28.3%

46.8%

Black American Asian Multiracial Hispanic Indian

Source: Selig Center of Economic Growth, Terry College of Business, The University of Georgia, June 2013. Pages 14, 16.

THE CURRENT RESPONSE We were curious to find out what marketers currently do to prepare for the years to come, so we surveyed 103 business leaders. Surprisingly, our findings suggest that only 20% of businesses in the US are investing in this change right now. This means that 80% of businesses we interviewed are not reacting yet. This is a huge number given the necessity and opportunity this change represents. What is holding businesses back from reacting? The topic is complex. The conversations are confusing. The market is moving quickly. CLEAR | 23

WHAT DOES IT TAKE TO BECOME PART OF THE 20%? Looking at big businesses that have already started to address this change, there are 3 critical elements that are part of this diversity challenge: business, employees, and consumers.

BUSINESS: WALMART “I’ve come to the conclusion that if you really want to be serious about multicultural, one way to do it is just blow up the multicultural budget. Take the multicultural budget out of a silo and push it out into the business units.” Tony Rogers Senior VP-Brand Marketing & Advertising

EMPLOYEES: FACEBOOK “Facebook released its diversity figures for the first time showing that the world’s largest social network is run by mostly white and Asian men. Facebook admitted that it has a lot of work to do to become more diverse, but said it’s committed to that goal.” Ben Fox Rubin Writer for CNET

CONSUMERS: PEPSICO “We are working hard to find the right products and packages that meet the needs of cross-cultural consumers. Pepsi NEXT is a great example of a product designed with cross-cultural consumers in mind.” Carlos Saavedra Director of Culture Marketing at PepsiCo

24 | CLEAR

THE JOURNEY TO ‘DO’ Behind every business decision and success lies a journey. The journey of addressing the change in diversity across organizations seems to follow 3 steps: engage, transition, and embed. While all 3 steps are important, the most critical point is transition because it marks the tipping point for all 3 elements: business, employees, and consumers.

STAGE 1 ENGAGE STAGE 2 TRANSITION STAGE 3 EMBED

STAGE 1 | ENGAGE

The need for change has been recognized and first steps like setting up small teams or developing culturally relevant internal initiatives have been taken.

STAGE 1 ENGAGE STAGE 2 TRANSITION STAGE 3 EMBED

STAGE 2 | TRANSITION

The initial impact generates momentum and the need to respond to cultural change becomes a serious business need.

STAGE 1 ENGAGE STAGE 2 TRANSITION STAGE 3 EMBED

STAGE 3 | EMBED

The entire organization embraces the change as new principles and approaches are embedded.

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Clear conducted a segmentation study amongst Hispanics and African Americans in the US to understand what matters most in the deodorant category.

“I NEED MY DEODORANT

TO HELP PROTECT ME.” 26 | CLEAR

BUILDING THE RIGHT CULTURAL STRATEGY

The tipping point is where key decisions need to be made, so what is critical to consider and think ahead when planning on taking your organization to that point? There are 3 steps where we feel it is essential to invest in order to win:

1. IDENTIFY

GET A STRATEGY WORKED OUT

•

Create a holistic picture of the market and where it’s heading

•

Identify and evaluate existing processes within the business

•

Define gaps and opportunities, generate stimulus and ideas

Challenge: Who is our multicultural consumer? Help us to understand attitudes and behaviors as well inspire an engaging deliverable that will travel across the business and make an impact. Solution: Clear conducted a global segmentation on personal care with major target groups being Hispanics and AfricanAmerican in the US. Segments were brought to life through immersion sessions and roll out material like engaging booklets and websites.

2. EVOLVE

DEVELOP NEW SKILLS ACROSS THE BUSINESS

•

Identify gaps and opportunities in the business

•

Gather best practice skills and training

•

Tailor to your organization’s unique needs and metrics

3. ACTIVATE

IMPLEMENT INITIATIVES THAT MAKE AN IMPACT

•

Identify areas of impact for internal cultural change

•

Assess opportunities for category leadership

•

Review and build new key performance measures

Challenge: Help us evolve the teams, insights and cultural skills to make sure that we keep our fingers on the pulse of the world our consumers are in. Solution: We ran numerous large scale insight training sessions with global businesses across all categories, equipping teams with insights and cultural sensitivity skills.

Challenge: Help us understand how we can change a category across different cultures. Solution: We rolled out a major category vision across multiple markets for one of our confectionary clients. The impact stretched far beyond business change, leading to industry changing conversations based on understanding the characteristics of specific markets.

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IN OUR NEXT ISSUE → → → →

28 | CLEAR 28 | CLEAR

The Joy Gap in Apparel Shopping Cost of Change Riding the Trend Wave Humanity in Healthcare

WORKSHOP WE COVER THREE INTERESTING PSYCHOLOGY PRINCIPLES:

Anchoring

How and why people anchor themselves in the category (both conceptually and physically in the aisle) and how that influences their purchase behavior.

Framing

How framing messages differently can evoke desired responses by exploiting both risk seeking and risk avoiding moments.

Priming

The ways in which we can leverage context and details in our favor to elicit specific behavior.

This presentation engages respondents to reflect on their own behavior and demonstrates the principles above through impactful storytelling and real-world examples. It is about 45 minutes and is perfect for a lunch and learn type environment.

RhondaH@clear-ideas.com

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30 | CLEAR

We would love to continue the conversation with you, so please get in touch if you have any questions or would like a further discussion.

MIKE WEBER

Managing Director Mike@clear-ideas.com +1 212 361 0014 ext. 7006

AMY FREDRICKSON

Director, Commercial Operations Amy@clear-ideas.com +1 212 361 0014 ext. 7004