Dragonfly Issue Two

www.dragonbrands.com

Issue2 A fresh look at the world from the leading independent brand agency group

+ low carbon brands + the Big Idea is dead + creative research + Rob Candelino + phoenix brands

Necessity: the mother of invention Open up to a brave new world

In the fight for audience attention the power to entertain will be king

Smart ideas will get us out of recession

www.dragonbrands.com

Dragon

Contents Top left to bottom right: food for thought, p38; green businesses need brands, p14; will necessity be

02

the mother of invention? p18; r u z-r8ted? The new generation, p32; brave new world, p24; reasons

to be cheerful, p40; get the best from qualitative research - Steve Wells explains how, p16

04-05 Contributors & Welcome

18-23 The mother of invention

36 Vive la différence

We look at the challenges ahead and how to find opportunities in the new economic climate.

The antidote to the downturn could be a new approach to innovation. But how do we balance risk and cost?

How Sainsbury’s Taste the difference continues to thrive.

06-13 Upfront

24-27 Brave new world

You heard it here first. Round-up of the latest marketing news and opinion, featuring: The Big Idea is dead - so what’s next?

Phoenix brands: born in the bust years What’s value for today’s consumer?

Mid Life Women: the new hero consumer Business brands need to get creative What the beautiful game teaches brands

In a fragmented media world, brands need to switch on to the entertainment business.

14 -15 Green needs brands

30-31 Interview

Businesses in the low carbon economy shouldn’t ignore the value of a strong brand.

Rob Candelino of Unilever talks about getting value from innovation.

16-17 Interview

32-35 r u Z-r8ted?

Steve Wells explains how to get the best from creative research.

We’ve seen the future – and it works.

How Gen Z will change the world.

28-29 Value judgement Do value statements really make a difference to the way a brand behaves or have they had their day?

37 New year’s resolutions What should brands do to get fitter for the year ahead?

38-39 Food for thought Some of the sparkiest brand development is coming from Britain’s farmers.

40-41 The perfect ten Great new brand innovations.

42 Look what we found The Dragon team’s favourite discoveries.

43 Contact us Dragon

03

Contents Top left to bottom right: food for thought, p38; green businesses need brands, p14; will necessity be

02

the mother of invention? p18; r u z-r8ted? The new generation, p32; brave new world, p24; reasons

to be cheerful, p40; get the best from qualitative research - Steve Wells explains how, p16

04-05 Contributors & Welcome

18-23 The mother of invention

36 Vive la différence

We look at the challenges ahead and how to find opportunities in the new economic climate.

The antidote to the downturn could be a new approach to innovation. But how do we balance risk and cost?

How Sainsbury’s Taste the difference continues to thrive.

06-13 Upfront

24-27 Brave new world

You heard it here first. Round-up of the latest marketing news and opinion, featuring: The Big Idea is dead - so what’s next?

Phoenix brands: born in the bust years What’s value for today’s consumer?

Mid Life Women: the new hero consumer Business brands need to get creative What the beautiful game teaches brands

In a fragmented media world, brands need to switch on to the entertainment business.

14 -15 Green needs brands

30-31 Interview

Businesses in the low carbon economy shouldn’t ignore the value of a strong brand.

Rob Candelino of Unilever talks about getting value from innovation.

16-17 Interview

32-35 r u Z-r8ted?

Steve Wells explains how to get the best from creative research.

We’ve seen the future – and it works.

How Gen Z will change the world.

28-29 Value judgement Do value statements really make a difference to the way a brand behaves or have they had their day?

37 New year’s resolutions What should brands do to get fitter for the year ahead?

38-39 Food for thought Some of the sparkiest brand development is coming from Britain’s farmers.

40-41 The perfect ten Great new brand innovations.

42 Look what we found The Dragon team’s favourite discoveries.

43 Contact us Dragon

03

Dragonfly would like to shine the spotlight on a few of our contributors

Welcome

con trib utors

— Welcome to the second edition of Dragonfly.

— As Henry Kissinger famously said: “There cannot be a crisis next week. My schedule is already full.” Audacious, yes, but also wise words in tough times – times when we can simply choose to shore up and weather the storm, or invest in riding the wave and making opportunities from adversity.

Mulheres Barbadas Illustrators

Pippa Nordberg Consultant, Dragon

In their own words, our Gen Z

Pippa is a consultant at Dragon

article artists are: “Two bearded

with bags of cross-category

ladies from Brazil who take turns

experience. Before joining us,

drawing until either the canvas is

Pippa was at Vibrandt and jkr,

filled, or the deadline is up. They

working on a number of Unilever

like monsters, icky stuff and

global brands. Pippa enjoys

tender loving.” They’ve filled up

travelling, photography and

the canvas for clients like Nike,

occasionally speaking French...

MTV and Computer Arts.

sometimes all at the same time.

— As we plunge into another year, a year that will doubtless hold many challenges and surprises for us all, we’ve chosen to strike a bold and positive note and remind everyone that, while there are certainly dangers lurking in the current economic volatility, fortune favours the brave.

— This is the time to be alert to opportunities, and ready to seize them: it’s those of us who act decisively, rather than stand and watch what’s happening, who will be the winners in the future.

— So we hope you find the second edition of Dragonfly not only uplifting and inspiring, but also, and perhaps as importantly, useful and constructive in fuelling your own ideas about how to make 2009 a good year, rather than a period simply to be survived.

— Lastly, thanks to those who responded so positively to our first edition and have contributed to this one. We are hungry for feedback from all our readers so we can

04

Teri Van Selm Designer, Dragon

Ben Morris Photographer

Dorothy Mackenzie Chairman, Dragon

Daniel Saul Zeff CEO, Evidently

Teri is one of Dragon’s packaging

Ben is a London- and Paris-based

Dorothy is co-founder and

Daniel trained as a film director,

designers. She started her

fashion and portrait photographer.

Chairman of Dragon in London.

and co-founded Evidently,

career in Sydney where she

His work can be found gracing

She is passionate about brands

an award-winning integrated

studied design for four years,

the pages of magazines such as

and has worked with national

communications agency. Over

followed by a stint at a magazine

Interview, i-D, Black Book, GQ

and international clients

the past decade, Daniel has

publisher called inDesign. She

and Monocle. He has also shot for

throughout her career. Dorothy

helped clients such as Dove,

loves researching all areas of

clients including Nike, Selfridges

is a pioneering thinker on

Google, Axe and Diageo to

design and always has her finger

and Louis Vuitton. When not on

the interaction of brands and

originate visual communications

on the pulse when it comes to

assignment, Ben is an avid surfer

corporate responsibility, in areas

which shape audience perception

inspiration and trends.

and snowboarder.

like sustainability and ethics.

and behaviour.

continue to share thinking, and learn from each other, over the coming months.

Thanks and enjoy, Dragon team dragonfly@dragonbrands.com

Dragon

05

Dragonfly would like to shine the spotlight on a few of our contributors

Welcome

con trib utors

— Welcome to the second edition of Dragonfly.

— As Henry Kissinger famously said: “There cannot be a crisis next week. My schedule is already full.” Audacious, yes, but also wise words in tough times – times when we can simply choose to shore up and weather the storm, or invest in riding the wave and making opportunities from adversity.

Mulheres Barbadas Illustrators

Pippa Nordberg Consultant, Dragon

In their own words, our Gen Z

Pippa is a consultant at Dragon

article artists are: “Two bearded

with bags of cross-category

ladies from Brazil who take turns

experience. Before joining us,

drawing until either the canvas is

Pippa was at Vibrandt and jkr,

filled, or the deadline is up. They

working on a number of Unilever

like monsters, icky stuff and

global brands. Pippa enjoys

tender loving.” They’ve filled up

travelling, photography and

the canvas for clients like Nike,

occasionally speaking French...

MTV and Computer Arts.

sometimes all at the same time.

— As we plunge into another year, a year that will doubtless hold many challenges and surprises for us all, we’ve chosen to strike a bold and positive note and remind everyone that, while there are certainly dangers lurking in the current economic volatility, fortune favours the brave.

— This is the time to be alert to opportunities, and ready to seize them: it’s those of us who act decisively, rather than stand and watch what’s happening, who will be the winners in the future.

— So we hope you find the second edition of Dragonfly not only uplifting and inspiring, but also, and perhaps as importantly, useful and constructive in fuelling your own ideas about how to make 2009 a good year, rather than a period simply to be survived.

— Lastly, thanks to those who responded so positively to our first edition and have contributed to this one. We are hungry for feedback from all our readers so we can

04

Teri Van Selm Designer, Dragon

Ben Morris Photographer

Dorothy Mackenzie Chairman, Dragon

Daniel Saul Zeff CEO, Evidently

Teri is one of Dragon’s packaging

Ben is a London- and Paris-based

Dorothy is co-founder and

Daniel trained as a film director,

designers. She started her

fashion and portrait photographer.

Chairman of Dragon in London.

and co-founded Evidently,

career in Sydney where she

His work can be found gracing

She is passionate about brands

an award-winning integrated

studied design for four years,

the pages of magazines such as

and has worked with national

communications agency. Over

followed by a stint at a magazine

Interview, i-D, Black Book, GQ

and international clients

the past decade, Daniel has

publisher called inDesign. She

and Monocle. He has also shot for

throughout her career. Dorothy

helped clients such as Dove,

loves researching all areas of

clients including Nike, Selfridges

is a pioneering thinker on

Google, Axe and Diageo to

design and always has her finger

and Louis Vuitton. When not on

the interaction of brands and

originate visual communications

on the pulse when it comes to

assignment, Ben is an avid surfer

corporate responsibility, in areas

which shape audience perception

inspiration and trends.

and snowboarder.

like sustainability and ethics.

and behaviour.

continue to share thinking, and learn from each other, over the coming months.

Thanks and enjoy, Dragon team dragonfly@dragonbrands.com

Dragon

05

UPFRONT

UPFRONT

INTERNET

CONSUMER INSIGHT

Are you dating?

Should ‘lifestyle’ brands only hang out together? in transparently ‘good’ minimal white and silver packs? Or Forever and Ever’s chocolates – handmade, pristine, white, handpacked boxes of simple, flower and fruit strewn chocolate bars, where the product, not packaging, does the talking? All far better company, Dragon would suggest, for a truly good company.

Abel & Cole: proof that ethics can be beautiful too

PROMOTIONS

What keeps us brand loyal?

When it comes to the crunch, what does value really mean?

With prices being slashed along with interest rates, you could say consumers have never had it so good. So what are they looking for when they think about ‘value’?

Dragon talked to their panel of European mass-market consumers about their changing shopping habits in the credit crunch. The result: thrifty and savvy; though there are crucial elements of the brand experience they will not compromise on.

Some people are watching what they spend.

40% of consumers are buying more own label.

The main casualties are premium foods, confectionery, snacks, biscuits, waters and ready meals.

They are unforgiving about marketing tricks and jaded with promotions too: what they want is not three-for-two, which can be a false economy, but to see imaginative linked offers across a category.

08

Dragon

Great sensation still counts. Almost 90% said taste or fragrance was the main reason for sticking with favourites like Heinz ketchup, Twinings, Johnson’s Baby and Persil/OMO. And people are hanging onto their desire for the individual and the ethical. Some categories, such as skin products and baby products, are too important to trade down.

Offers that work — The great balanced offer: 65% would be tempted to try the ‘dine out at home’ meal offers as they bring real value, e.g. M&S three courses for £10 — Wise advice: 50% would find a nutritional expert, to help them make healthy and thrifty food shopping choices, a great help — A taste adventure: 43% would value limitededition flavours and fragrances And some that don’t — Money saving tips: 74% of people would not appreciate blogs online with advice and ways to save money — Competitions: 67% would not be influenced by competitions on pack or on website — Good for kids: 75% would not be swayed by educational days out for their family, cooking for schools, or even computers for schools vouchers

Beware the marketer who gets it wrong - MLW take no prisoners and have a long memory. ‘Crunch’ notwithstanding, they’re still putting money with brands that earn their loyalty and they’re old and wise enough to anticipate the green shoots of recovery without compromising quality of life.

Whether full-time mums, empty nesters, newly single or going it alone, strong themes emerged for brand owners from all sectors to sit up and listen to…

Once upon a time, no-one, but no-one, would have confessed to finding love via the internet. Now eHarmony.com claims that 2% of US marriages in 2007 met online.

Online dating is one of the fastest growing industries today. Jupiter research estimated that US$623 million would be spent on online dating in 2008.

So how has the dating game bucked the stigma?

They upped their credibility by extending their credentials – this is now the appliance of relationship science.

They’ve been smart about segmentation. And in a networked, linked-in world, they have successfully harnessed a contemporary promise.

This is the modern way of taking control and putting yourself in touch with those outside your social circle that you might never otherwise meet.

The once guilty secret is out and proud.

The care crunch Most women never stop being mothers.

The care burden simply shifts its focus: the older generation, quasi-dependent kids or those that won’t fly the nest.

Bringing change to the change Historically the ‘elephant in the room’, MLW is up ‘n’ at ya when it comes to The Change. They want an end to negative preconceptions, obtuse language and hours

of online research. They approach this stage of life positively, with a ‘business as usual’ attitude. Significantly, all wished to firstly approach managing menopause naturally - not medically - through diet, supplements, exercise and positive mental attitude.

Mind the Thelma and Louise gap Mid-life can be the new teens – over 25% of Dragon’s sample were both planning and actively travelling. Backpacking, hostelling, going off the beaten track, they defy their kids’ mockery to enjoy a second youth or savour a youth they never had.

The power of ‘no’ Older, wiser, at peace with their age – these ladies have embraced ‘permission to decline’. They’ve dropped universal people-pleasing traits. ‘No’ is no longer a dirty word.

Mrs & Mrs Smith Whether happily married or newly single, the most common life partner is the ‘girlfriend’. From city breaks to new skills, these women are spending more time and cash with like-minded girlfriends. So, are marketers missing a trick targeting the traditional ‘Mr & Mrs’ empty-nester couple?

You must be Ms-taken If there’s one thing that gets MLW’s collective goat, it’s being taken for a ride when there’s no man about. So speak to them like they make the decisions. They make more than ever, cherry picking those of interest and handing over an edited set of duller tasks to their other halves.

New world order For a time of life riddled with stereotypes, MLW are least easy to classify by lifestage.

They could be in multiple life stages simultaneously: restarting education, a carer, newly dating and menopausal.

Photo: Rex

The company you keep must know a new ‘uncompromising’ consumer has moved on from clunky, ugly, organic branding of old?

So Dragon would like to propose some better brand ‘introductions’.

Perhaps Grasshopper Organic’s porridges fresh, humourous and oozing ethics? Or maybe Woodchester Fine Foods – saucy, fruity artisanal treats housed

Dragon’s research explored mid-life women’s needs in life, products and services. Are you ‘MLW’ savvy?

From sad to savvy: the rise and rise of the internet matchmakers

BRAND PARTNERS

Abel & Cole combined wholesome modernity with impeccable values and simple, honest and beautiful branding to grow the category.

But while the sector is nothing without brand values and product integrity, looks matter too, and dairy and meat free brand Dragonfly joining with A&C seems to jar. Dragonfly has integrity, yes, but A&C

The new hero consumer

Strong, resilient, ‘her own woman’ and a success, age notwithstanding - a surprising role model for many of Dragon’s ‘MLWs’

The MLW has proven to be the most fascinating and promising audience – so we ask the question – are mid-life women actually your future hero consumer?

Dragon

09

UPFRONT

UPFRONT

INTERNET

CONSUMER INSIGHT

Are you dating?

Should ‘lifestyle’ brands only hang out together? in transparently ‘good’ minimal white and silver packs? Or Forever and Ever’s chocolates – handmade, pristine, white, handpacked boxes of simple, flower and fruit strewn chocolate bars, where the product, not packaging, does the talking? All far better company, Dragon would suggest, for a truly good company.

Abel & Cole: proof that ethics can be beautiful too

PROMOTIONS

What keeps us brand loyal?

When it comes to the crunch, what does value really mean?

With prices being slashed along with interest rates, you could say consumers have never had it so good. So what are they looking for when they think about ‘value’?

Dragon talked to their panel of European mass-market consumers about their changing shopping habits in the credit crunch. The result: thrifty and savvy; though there are crucial elements of the brand experience they will not compromise on.

Some people are watching what they spend.

40% of consumers are buying more own label.

The main casualties are premium foods, confectionery, snacks, biscuits, waters and ready meals.

They are unforgiving about marketing tricks and jaded with promotions too: what they want is not three-for-two, which can be a false economy, but to see imaginative linked offers across a category.

08

Dragon

Great sensation still counts. Almost 90% said taste or fragrance was the main reason for sticking with favourites like Heinz ketchup, Twinings, Johnson’s Baby and Persil/OMO. And people are hanging onto their desire for the individual and the ethical. Some categories, such as skin products and baby products, are too important to trade down.

Offers that work — The great balanced offer: 65% would be tempted to try the ‘dine out at home’ meal offers as they bring real value, e.g. M&S three courses for £10 — Wise advice: 50% would find a nutritional expert, to help them make healthy and thrifty food shopping choices, a great help — A taste adventure: 43% would value limitededition flavours and fragrances And some that don’t — Money saving tips: 74% of people would not appreciate blogs online with advice and ways to save money — Competitions: 67% would not be influenced by competitions on pack or on website — Good for kids: 75% would not be swayed by educational days out for their family, cooking for schools, or even computers for schools vouchers

Beware the marketer who gets it wrong - MLW take no prisoners and have a long memory. ‘Crunch’ notwithstanding, they’re still putting money with brands that earn their loyalty and they’re old and wise enough to anticipate the green shoots of recovery without compromising quality of life.

Whether full-time mums, empty nesters, newly single or going it alone, strong themes emerged for brand owners from all sectors to sit up and listen to…

Once upon a time, no-one, but no-one, would have confessed to finding love via the internet. Now eHarmony.com claims that 2% of US marriages in 2007 met online.

Online dating is one of the fastest growing industries today. Jupiter research estimated that US$623 million would be spent on online dating in 2008.

So how has the dating game bucked the stigma?

They upped their credibility by extending their credentials – this is now the appliance of relationship science.

They’ve been smart about segmentation. And in a networked, linked-in world, they have successfully harnessed a contemporary promise.

This is the modern way of taking control and putting yourself in touch with those outside your social circle that you might never otherwise meet.

The once guilty secret is out and proud.

The care crunch Most women never stop being mothers.

The care burden simply shifts its focus: the older generation, quasi-dependent kids or those that won’t fly the nest.

Bringing change to the change Historically the ‘elephant in the room’, MLW is up ‘n’ at ya when it comes to The Change. They want an end to negative preconceptions, obtuse language and hours

of online research. They approach this stage of life positively, with a ‘business as usual’ attitude. Significantly, all wished to firstly approach managing menopause naturally - not medically - through diet, supplements, exercise and positive mental attitude.

Mind the Thelma and Louise gap Mid-life can be the new teens – over 25% of Dragon’s sample were both planning and actively travelling. Backpacking, hostelling, going off the beaten track, they defy their kids’ mockery to enjoy a second youth or savour a youth they never had.

The power of ‘no’ Older, wiser, at peace with their age – these ladies have embraced ‘permission to decline’. They’ve dropped universal people-pleasing traits. ‘No’ is no longer a dirty word.

Mrs & Mrs Smith Whether happily married or newly single, the most common life partner is the ‘girlfriend’. From city breaks to new skills, these women are spending more time and cash with like-minded girlfriends. So, are marketers missing a trick targeting the traditional ‘Mr & Mrs’ empty-nester couple?

You must be Ms-taken If there’s one thing that gets MLW’s collective goat, it’s being taken for a ride when there’s no man about. So speak to them like they make the decisions. They make more than ever, cherry picking those of interest and handing over an edited set of duller tasks to their other halves.

New world order For a time of life riddled with stereotypes, MLW are least easy to classify by lifestage.

They could be in multiple life stages simultaneously: restarting education, a carer, newly dating and menopausal.

Photo: Rex

The company you keep must know a new ‘uncompromising’ consumer has moved on from clunky, ugly, organic branding of old?

So Dragon would like to propose some better brand ‘introductions’.

Perhaps Grasshopper Organic’s porridges fresh, humourous and oozing ethics? Or maybe Woodchester Fine Foods – saucy, fruity artisanal treats housed

Dragon’s research explored mid-life women’s needs in life, products and services. Are you ‘MLW’ savvy?

From sad to savvy: the rise and rise of the internet matchmakers

BRAND PARTNERS

Abel & Cole combined wholesome modernity with impeccable values and simple, honest and beautiful branding to grow the category.

But while the sector is nothing without brand values and product integrity, looks matter too, and dairy and meat free brand Dragonfly joining with A&C seems to jar. Dragonfly has integrity, yes, but A&C

The new hero consumer

Strong, resilient, ‘her own woman’ and a success, age notwithstanding - a surprising role model for many of Dragon’s ‘MLWs’

The MLW has proven to be the most fascinating and promising audience – so we ask the question – are mid-life women actually your future hero consumer?

Dragon

09

Written by Nina Cooper

UPFRONT

UPFRONT

Get with the programme While most fmcg brands labour constantly to maintain the attention and loyalty of the people who might buy their wares, by comparison, some might claim that business-to-business brand owners are less vigorous in their approach to engaging their customers. This should not lead anyone to the conclusion that opportunities for B2B brands to express their creativity are limited. Dragon’s experience proves they can show their fmcg counterparts a clean pair of heel if they have the will.

But many business customers still see generic B2B communications even though they are exposed in their daily lives to sophisticated fmcg approaches that hook into a compelling insight. Some B2B brands still think it’s more about selling than about marketing and that any communication is good communication.

The stars not withstanding, they fail to realise that bland and predictable presentation will, at best, be a waste of time and effort, and, at worst, reflect badly on the business it represents. As always, the medium is part of the message.

10

Dragon

Customers of B2B brands often think of themselves as more rational and less emotionally driven than those buying cars, and watches, and fragrances. But why are B2B brands so strangely reluctant when it comes to looking hard at their strengths and the core of the benefit they offer, to create a story with some magic and some motivation?

There are some honourable exceptions.

IBM Consulting uses real life scenarios to show how they can add value directly to their bottom line. General Electric offers us ‘imagination at work’ and shows us a wholly consistent face around the world.

Fedex, with its subliminal arrow device within its logo, communicates speed and efficiency throughout. It’s a brand that has practically got to the point of entering the vernacular as a verb.

So this is a rallying cry to every B2B brand. Your audiences are being conditioned as consumers by the brands they experience inside and outside work, and so may be judging you harshly by comparison. Can you be really sure that

you are presenting your business in its best possible light, and clearly spelling out what makes you a better choice than your competitors? Creating a sharp proposition that magnifies your brand superiority and will support relevant, interesting stories to tell to customers is an important first step.

Segmenting customers, addressing their needs as ‘people in business’, not ‘business people’, and getting powerful insights into their working life so that they see and feel credible, relevant, meaningful benefits is another.

Creating a new language, visual and verbal, ignoring the sector norms, would at least make the business world a brighter, more energising, thoughtprovoking place - which is surely what business should be all about?

But above all, we shouldn’t forget that just as many of us find a way to express ourselves as individuals through the brand choices we make, so as ‘people in business’, the same rules apply. Although, in many respects, the proof of the pudding is in the eating – so a continual good customer experience is what will finally count – taking a creative approach to how you communicate and show yourself to current and prospective customers will keep you top of mind and on top of the competitive pile.

Engaging a customer community Staying relevant to customers when business models are changing and markets are volatile is what has brand owners sleeping with their Blackberries. For an organisation like SWIFT, relevance is no easy concept.

SWIFT is a memberowned co-operative with over 8,000 customers worldwide. It acts as a service provider to the financial industry and works collaboratively with stakeholders to define standards and shape market practices.

THE VOICE OF THE SWIFT COMMUNITY - NOVEMBER 2008

The financial crisis and SWIFT Shock-proof Pg. 23 Risk Management Expecting the unexpected Pg. 28 Operations Back office in the front fro line Pg. 32 P

Financiall Shock kwav aves ess Regulating in a crisis pg.16

Artwork: Dragon team

To get the better of dwindling attention spans, business brands need to get smarter with their communications

CASE STUDY

Yet the organisation has set itself the challenge of not just being relevant, but offering simplicity for its customers and community in a market Byzantine in the complexity of its segments and needs.

As CEO Lazaro Campos was frank enough to admit to the financial industry forum Sibos in Boston in 2007: “No-one wants a PhD in SWIFT. They - you - just want a seamless operation‌ Beautiful simplicity.â€?

All of this has had real implications for the way it works, the products and services it provides and the way it communicates.

Formed by and for the financial industry in 1973, SWIFT provides the technology platform and the products and services to allow the financial world to exchange information securely. But it also acts as a lively and, sometimes, critical community, bringing together customer members to define standards and create solutions to mutual problems.

Dragon’s involvement in helping deliver SWIFT’s commitment to relevance and simplicity has been in taking a hard look at its brand and how it communicates.

The guiding principle has been to retain the best of its brand heritage, but create intelligent simplicity throughout. Brand architecture has been evolved and streamlined.

Beyond simplicity, the programme has aimed to refresh the value of its role as a community - capturing the idea that the individual insights of SWIFT, and its community of customer experts, generate a collective power.

Finally, the brand development has been about actively encouraging the involvement of the SWIFT community and providing inspiration through the introduction of a fresh communication style.

Regulating in a CRISIS Sir Howard Davies is director of the London School of Economics and Political Science. Prior to his current appointment, he chaired the Financial Services Authority (FSA), the UK’s single ďŹ nancial regulator since 1998.

Sir Howard Davies, London School of Economics

H

oward Davies had previously served for two years as deputy governor of the Bank of England after three years as director general of the Confederation of British Industry. From 1987 to 1992 he was controller of the Audit Commission. From 1982 to 1987 he worked for McKinsey & Company in London and during 1985-

1986 was seconded to the Treasury as special advisor to the Chancellor of the Exchequer. His second book “Global Financial Regulation: The Essential Guideâ€? co-authored with David Green was published in March 2008. He spoke to Dialogue about the implications of the recent ďŹ nancial turmoil both for regulation of the ďŹ nancial services industry and for prospects of regulatory cooperation.

16 Dialogue November 2008

So what has it all meant for SWIFT so far?

The core idea - ‘individual insights, collective brilliance’ - has provided a very straightforward test for new ideas and communication.

The new architecture has established a foundation for clearly branding SWIFT’s products and services and the activities that are related to its role in bringing the customer community together.

The SWIFT mark itself, has been updated, building on its heritage. Significant changes have been introduced in the surrounding visual style to

1 To what extent are regulators in the current crisis dealing with the same problems? They may be in the same place, but they didn’t all get there in the same way. For example, there was no house price bubble in Germany.

I think they are dealing with somewhat different problems, but actually they were more different at the beginning of the crisis then they are now. At the beginning of the crisis, the German banks’ problem with mortgages was only their exposure to US mortgages. Their own mortgages weren’t the problem. Domestic mortgages in Germany are still not a huge issue.

But of course they’re all dealing with liquidity problems and they’re all dealing with falling stock markets and rises in corporate bond defaults. So the crisis is becoming more general then it was.

Q. Would it be unfair to say that the crisis resulting from the lack of interbank lending is because the banks know what they’ve got on their own books and they suspect that their counterparts have got similarly unmeasurable or unmeasured exposures?

Dialogue November 2008

17

create clarity, reflect impact and provide space for bold analysis and insight.

The new style has been implemented through website, Report and Accounts, customer magazines and the SWIFT presence at the global industry forum, Sibos, that it facilitates each year.

The whole gives a powerful new presence for an organisation at the heart of a financial industry in change.

Dragon

11

Written by Nina Cooper

UPFRONT

UPFRONT

Get with the programme While most fmcg brands labour constantly to maintain the attention and loyalty of the people who might buy their wares, by comparison, some might claim that business-to-business brand owners are less vigorous in their approach to engaging their customers. This should not lead anyone to the conclusion that opportunities for B2B brands to express their creativity are limited. Dragon’s experience proves they can show their fmcg counterparts a clean pair of heel if they have the will.

But many business customers still see generic B2B communications even though they are exposed in their daily lives to sophisticated fmcg approaches that hook into a compelling insight. Some B2B brands still think it’s more about selling than about marketing and that any communication is good communication.

The stars not withstanding, they fail to realise that bland and predictable presentation will, at best, be a waste of time and effort, and, at worst, reflect badly on the business it represents. As always, the medium is part of the message.

10

Dragon

Customers of B2B brands often think of themselves as more rational and less emotionally driven than those buying cars, and watches, and fragrances. But why are B2B brands so strangely reluctant when it comes to looking hard at their strengths and the core of the benefit they offer, to create a story with some magic and some motivation?

There are some honourable exceptions.

IBM Consulting uses real life scenarios to show how they can add value directly to their bottom line. General Electric offers us ‘imagination at work’ and shows us a wholly consistent face around the world.

Fedex, with its subliminal arrow device within its logo, communicates speed and efficiency throughout. It’s a brand that has practically got to the point of entering the vernacular as a verb.

So this is a rallying cry to every B2B brand. Your audiences are being conditioned as consumers by the brands they experience inside and outside work, and so may be judging you harshly by comparison. Can you be really sure that

you are presenting your business in its best possible light, and clearly spelling out what makes you a better choice than your competitors? Creating a sharp proposition that magnifies your brand superiority and will support relevant, interesting stories to tell to customers is an important first step.

Segmenting customers, addressing their needs as ‘people in business’, not ‘business people’, and getting powerful insights into their working life so that they see and feel credible, relevant, meaningful benefits is another.

Creating a new language, visual and verbal, ignoring the sector norms, would at least make the business world a brighter, more energising, thoughtprovoking place - which is surely what business should be all about?

But above all, we shouldn’t forget that just as many of us find a way to express ourselves as individuals through the brand choices we make, so as ‘people in business’, the same rules apply. Although, in many respects, the proof of the pudding is in the eating – so a continual good customer experience is what will finally count – taking a creative approach to how you communicate and show yourself to current and prospective customers will keep you top of mind and on top of the competitive pile.

Engaging a customer community Staying relevant to customers when business models are changing and markets are volatile is what has brand owners sleeping with their Blackberries. For an organisation like SWIFT, relevance is no easy concept.

SWIFT is a memberowned co-operative with over 8,000 customers worldwide. It acts as a service provider to the financial industry and works collaboratively with stakeholders to define standards and shape market practices.

THE VOICE OF THE SWIFT COMMUNITY - NOVEMBER 2008

The financial crisis and SWIFT Shock-proof Pg. 23 Risk Management Expecting the unexpected Pg. 28 Operations Back office in the front fro line Pg. 32 P

Financiall Shock kwav aves ess Regulating in a crisis pg.16

Artwork: Dragon team

To get the better of dwindling attention spans, business brands need to get smarter with their communications

CASE STUDY

Yet the organisation has set itself the challenge of not just being relevant, but offering simplicity for its customers and community in a market Byzantine in the complexity of its segments and needs.

As CEO Lazaro Campos was frank enough to admit to the financial industry forum Sibos in Boston in 2007: “No-one wants a PhD in SWIFT. They - you - just want a seamless operation‌ Beautiful simplicity.â€?

All of this has had real implications for the way it works, the products and services it provides and the way it communicates.

Formed by and for the financial industry in 1973, SWIFT provides the technology platform and the products and services to allow the financial world to exchange information securely. But it also acts as a lively and, sometimes, critical community, bringing together customer members to define standards and create solutions to mutual problems.

Dragon’s involvement in helping deliver SWIFT’s commitment to relevance and simplicity has been in taking a hard look at its brand and how it communicates.

The guiding principle has been to retain the best of its brand heritage, but create intelligent simplicity throughout. Brand architecture has been evolved and streamlined.

Beyond simplicity, the programme has aimed to refresh the value of its role as a community - capturing the idea that the individual insights of SWIFT, and its community of customer experts, generate a collective power.

Finally, the brand development has been about actively encouraging the involvement of the SWIFT community and providing inspiration through the introduction of a fresh communication style.

Regulating in a CRISIS Sir Howard Davies is director of the London School of Economics and Political Science. Prior to his current appointment, he chaired the Financial Services Authority (FSA), the UK’s single ďŹ nancial regulator since 1998.

Sir Howard Davies, London School of Economics

H

oward Davies had previously served for two years as deputy governor of the Bank of England after three years as director general of the Confederation of British Industry. From 1987 to 1992 he was controller of the Audit Commission. From 1982 to 1987 he worked for McKinsey & Company in London and during 1985-

1986 was seconded to the Treasury as special advisor to the Chancellor of the Exchequer. His second book “Global Financial Regulation: The Essential Guideâ€? co-authored with David Green was published in March 2008. He spoke to Dialogue about the implications of the recent ďŹ nancial turmoil both for regulation of the ďŹ nancial services industry and for prospects of regulatory cooperation.

16 Dialogue November 2008

So what has it all meant for SWIFT so far?

The core idea - ‘individual insights, collective brilliance’ - has provided a very straightforward test for new ideas and communication.

The new architecture has established a foundation for clearly branding SWIFT’s products and services and the activities that are related to its role in bringing the customer community together.

The SWIFT mark itself, has been updated, building on its heritage. Significant changes have been introduced in the surrounding visual style to

1 To what extent are regulators in the current crisis dealing with the same problems? They may be in the same place, but they didn’t all get there in the same way. For example, there was no house price bubble in Germany.

I think they are dealing with somewhat different problems, but actually they were more different at the beginning of the crisis then they are now. At the beginning of the crisis, the German banks’ problem with mortgages was only their exposure to US mortgages. Their own mortgages weren’t the problem. Domestic mortgages in Germany are still not a huge issue.

But of course they’re all dealing with liquidity problems and they’re all dealing with falling stock markets and rises in corporate bond defaults. So the crisis is becoming more general then it was.

Q. Would it be unfair to say that the crisis resulting from the lack of interbank lending is because the banks know what they’ve got on their own books and they suspect that their counterparts have got similarly unmeasurable or unmeasured exposures?

Dialogue November 2008

17

create clarity, reflect impact and provide space for bold analysis and insight.

The new style has been implemented through website, Report and Accounts, customer magazines and the SWIFT presence at the global industry forum, Sibos, that it facilitates each year.

The whole gives a powerful new presence for an organisation at the heart of a financial industry in change.

Dragon

11

UPFRONT

UPFRONT

MANAGEMENT

United we stand

When Roy of the Rovers isn’t going to get his boots and blast in that winning goal, what can we learn from the beautiful game that can help us through in business?

When times get tight, there’s often a sharper focus for managers and their teams to make a difference. The pressure is on and it’s time to perform.

Everyone needs to prove his or her worth. There can’t be any passengers.

There can be few environments that are higher pressure than the Premier League. Managers and players come and go, fans rejoice and despair, fortunes rise and fall. But aside from skill on the pitch, what is it that makes a side perform week in and week out?

The great managers know that a key part of their magic is to make players believe that they can win – even if the formbook is saying otherwise.

How else could Harry Redknapp inject new life into Spurs so soon after his arrival? How else can Sir Alex

12

Dragon

Ferguson keep turning in results time after time?

Powerful brands have a similar magnetic aura that breeds inner confidence. Using your brand to inspire your employees might seem like an obvious statement. But finding organisations which really know how to connect with employees and make them feel an integral part of what’s going on isn’t as easy as you might think.

As employees, we want to have confidence in the organisations we work for and the managers at the helm. This does not and should not mean an unquestioning blindness to commercial realities or even arrogance (there are real lessons to be learned from Lehman Brothers, too).

But sharing confidence about goals and plans for the months ahead, encouraging involvement and ideas, not a ‘heads down’ siege mentality, sets the adrenalin flowing and bolsters belief in the future.

So more than ever it’s a time to value team working – and to promote it throughout your organisation. David Beckham was a star player not just because he practised more and worked harder than his peers but because he valued his team mates and always acknowledged that he needed them as much as they needed him. He knew and still knows the power of humility.

Taking the footie analogy a step further we also need to be reminded to keep our heads up - to keep an eye out for opportunities, and to be bold about seizing them. Make these people role models around your organisation and use them to inspire and encourage their colleagues.

It’s a time, too for frankness – though, in this, we would say, maybe not of the Alex Ferguson, football boot-wielding variety. But tough times sometimes bring out defensiveness in internal communication that leaves employees struggling to define a direction or even understand the message. We all need to get over our reticence, tell it like it is and tell people what they can do to help in a way that they can act on. People always like to know where they stand.

Strong cultures are forged in adversity. If nothing else, the current climate presents an opportunity to build a powerful team spirit, from the ‘workers’ up, with a sense of ‘being in this together’ and shaping our own destiny. Leave a vacuum and it’s likely to be filled with negative energy. But if everyone’s interests are directed towards a few clear priorities and individuals are valued for their contribution to common objectives, the risks are lower. Get this right and it will be gold dust in tough times and beyond.

SUSTAINABILITY

Radical response Meeting stretching targets calls for real, imaginative thinking

Sustainable flooring from InterfaceFLOR

Meeting sustainability targets needs radical thinking. The UK recently upgraded its CO2 goals to an 80% reduction. Plus the UN wants to halve numbers of people living on under a dollar a day. This calls for sustainable innovation.

In food, Danone has teamed up with Nobel Prize winner Muhammad Yunus’ Grameen Group to make a nutritious yoghurt for Bangladesh. Retailing at under 10¢ per serving, it gives 30% of the minimum daily requirement of iron and key nutrients. Made from local milk, in small, eco-friendly factories, with low-tech, labour-intensive

distribution (foot and rickshaw), it is sold via local networks and packed in biodegradable pots.

In home, InterfaceFLOR’s FairWorks range integrates a Sustainable Livelihoods business model and Social Innovation projects in India to make sustainable, natural fibre flooring.

In technology, Philips Lighting announced a radical plan to phase out incandescent lamps over 10 years, which at the time accounted for 90% of sales.

This move has spurred the development of new lighting technologies, which in more ways than one have ‘cleaned up’.

BUT SERIOUSLY...

Dragon

13

UPFRONT

UPFRONT

MANAGEMENT

United we stand

When Roy of the Rovers isn’t going to get his boots and blast in that winning goal, what can we learn from the beautiful game that can help us through in business?

When times get tight, there’s often a sharper focus for managers and their teams to make a difference. The pressure is on and it’s time to perform.

Everyone needs to prove his or her worth. There can’t be any passengers.

There can be few environments that are higher pressure than the Premier League. Managers and players come and go, fans rejoice and despair, fortunes rise and fall. But aside from skill on the pitch, what is it that makes a side perform week in and week out?

The great managers know that a key part of their magic is to make players believe that they can win – even if the formbook is saying otherwise.

How else could Harry Redknapp inject new life into Spurs so soon after his arrival? How else can Sir Alex

12

Dragon

Ferguson keep turning in results time after time?

Powerful brands have a similar magnetic aura that breeds inner confidence. Using your brand to inspire your employees might seem like an obvious statement. But finding organisations which really know how to connect with employees and make them feel an integral part of what’s going on isn’t as easy as you might think.

As employees, we want to have confidence in the organisations we work for and the managers at the helm. This does not and should not mean an unquestioning blindness to commercial realities or even arrogance (there are real lessons to be learned from Lehman Brothers, too).

But sharing confidence about goals and plans for the months ahead, encouraging involvement and ideas, not a ‘heads down’ siege mentality, sets the adrenalin flowing and bolsters belief in the future.

So more than ever it’s a time to value team working – and to promote it throughout your organisation. David Beckham was a star player not just because he practised more and worked harder than his peers but because he valued his team mates and always acknowledged that he needed them as much as they needed him. He knew and still knows the power of humility.

Taking the footie analogy a step further we also need to be reminded to keep our heads up - to keep an eye out for opportunities, and to be bold about seizing them. Make these people role models around your organisation and use them to inspire and encourage their colleagues.

It’s a time, too for frankness – though, in this, we would say, maybe not of the Alex Ferguson, football boot-wielding variety. But tough times sometimes bring out defensiveness in internal communication that leaves employees struggling to define a direction or even understand the message. We all need to get over our reticence, tell it like it is and tell people what they can do to help in a way that they can act on. People always like to know where they stand.

Strong cultures are forged in adversity. If nothing else, the current climate presents an opportunity to build a powerful team spirit, from the ‘workers’ up, with a sense of ‘being in this together’ and shaping our own destiny. Leave a vacuum and it’s likely to be filled with negative energy. But if everyone’s interests are directed towards a few clear priorities and individuals are valued for their contribution to common objectives, the risks are lower. Get this right and it will be gold dust in tough times and beyond.

SUSTAINABILITY

Radical response Meeting stretching targets calls for real, imaginative thinking

Sustainable flooring from InterfaceFLOR

Meeting sustainability targets needs radical thinking. The UK recently upgraded its CO2 goals to an 80% reduction. Plus the UN wants to halve numbers of people living on under a dollar a day. This calls for sustainable innovation.

In food, Danone has teamed up with Nobel Prize winner Muhammad Yunus’ Grameen Group to make a nutritious yoghurt for Bangladesh. Retailing at under 10¢ per serving, it gives 30% of the minimum daily requirement of iron and key nutrients. Made from local milk, in small, eco-friendly factories, with low-tech, labour-intensive

distribution (foot and rickshaw), it is sold via local networks and packed in biodegradable pots.

In home, InterfaceFLOR’s FairWorks range integrates a Sustainable Livelihoods business model and Social Innovation projects in India to make sustainable, natural fibre flooring.

In technology, Philips Lighting announced a radical plan to phase out incandescent lamps over 10 years, which at the time accounted for 90% of sales.

This move has spurred the development of new lighting technologies, which in more ways than one have ‘cleaned up’.

BUT SERIOUSLY...

Dragon

13

Written by Dorothy Mackenzie

FEATURE

FEATURE Solar panels transform the Nevada Desert

GREEN NEEDS BRANDS We are on the brink of a new industrial revolution. The development of the clean-technology, low carbon economy will be as important and dramatic as the growth of the digital economy. The incoming US administration is committed to massive investments and incentives to promote renewable energy and all forms of clean, low carbon technologies. The Group of Eight leading industrialised countries have agreed to cut their carbon emissions by 50% by 2050, promising large investments in clean energy technology.

This is one area of the economy predicted to grow strongly despite the recession, and although share prices in the sector have fallen as in every other sector, investors see long-term potential and eagerly seek out the more promising candidates.

New companies, new joint ventures, new services and propositions are emerging. Most are trying to attract investment, and the signs are that everyone - from governments to venture capitalists - will be willing to invest, but competition for funds will be fierce. Over the next few years

14

Dragon

we are likely to see all of these new industrial sectors transformed from myriad small companies and startups to a handful of major players who are likely to become household names. We will see a big shakeout, with those companies with the right technology, the right products but increasingly, the right brand and design, coming to the fore. We can already begin to spot the potential successes among companies promoting to the end customer – SunPower in the USA, Solar Century in the UK. While the focus has so far been on technology, it is worth thinking about what one of the world’s shrewdest investors considers important when he is evaluating a potential acquisition. Warren Buffet is quoted as saying that traditionally the first criterion is a strong balance sheet. But he put this in third place. In second place was a good management team. Top was ‘brand’. Even in hard times brand is the key to long-term growth.

A well defined brand vision, and a strong ability to translate this into well-designed products and brand identity could significantly increase the chances of success in this sector, both in attracting funding in the

Photo: iStock

Low carbon technology is looking more and more like the dot.com boom. It needs strong brands, not just clever technology

first place and then in growing a successful business.

But brand isn’t just a catchy name, a nice logo and some attractive marketing materials. It means defining a compelling story that expresses the organisation’s vision and proposition – something that is easy to understand for those inside and outside the organisation. It means being clear about what sets the organisation or the product/service apart from competitors; having a clear way of doing things that ensures all behaviour and communications reinforce the same coherent messages, to build trust and confidence. Finally it means a strong, consistent way of expressing the brand through its look, feel, tone of voice and through the communication channels most appropriate. This is as important for B2B companies as it is for B2C companies.

Those that get it right will be the star brands of the future – and we have already seen in the dot.com boom how effectively Google, Amazon and others have used their clear, engaging brands to build market success.

New companies in the low carbon technology and services

sector should be placing brand at the heart of their thinking to inspire employees, attract the best recruits, convince investors that they have a compelling story and show customers and end consumers that they are here to stay. Some of the new ‘clean, green, low carbon economy’ players will be organisations from the ‘old economy’. They will need to reinterpret and reframe their brand, and think carefully about how it should be expressed, to ensure that it reflects the future, not the past.

The green economy represents an optimistic, exciting future, a new source of wealth and wellbeing, a new source of inspiration for design aesthetics and communication concepts. Companies must capture this vitality and positivity to transform economies and lifestyles with urgency, helping people switch quickly to new ways of thinking, new forms of behaviour – both in industrial areas but also in everyday life.

Compelling, engaging branding, design and communication will play a crucial role in encouraging change – helping to excite people rather than being apprehensive about the changes ahead.

Dragon

15

Written by Dorothy Mackenzie

FEATURE

FEATURE Solar panels transform the Nevada Desert

GREEN NEEDS BRANDS We are on the brink of a new industrial revolution. The development of the clean-technology, low carbon economy will be as important and dramatic as the growth of the digital economy. The incoming US administration is committed to massive investments and incentives to promote renewable energy and all forms of clean, low carbon technologies. The Group of Eight leading industrialised countries have agreed to cut their carbon emissions by 50% by 2050, promising large investments in clean energy technology.

This is one area of the economy predicted to grow strongly despite the recession, and although share prices in the sector have fallen as in every other sector, investors see long-term potential and eagerly seek out the more promising candidates.

New companies, new joint ventures, new services and propositions are emerging. Most are trying to attract investment, and the signs are that everyone - from governments to venture capitalists - will be willing to invest, but competition for funds will be fierce. Over the next few years

14

Dragon

we are likely to see all of these new industrial sectors transformed from myriad small companies and startups to a handful of major players who are likely to become household names. We will see a big shakeout, with those companies with the right technology, the right products but increasingly, the right brand and design, coming to the fore. We can already begin to spot the potential successes among companies promoting to the end customer – SunPower in the USA, Solar Century in the UK. While the focus has so far been on technology, it is worth thinking about what one of the world’s shrewdest investors considers important when he is evaluating a potential acquisition. Warren Buffet is quoted as saying that traditionally the first criterion is a strong balance sheet. But he put this in third place. In second place was a good management team. Top was ‘brand’. Even in hard times brand is the key to long-term growth.

A well defined brand vision, and a strong ability to translate this into well-designed products and brand identity could significantly increase the chances of success in this sector, both in attracting funding in the

Photo: iStock

Low carbon technology is looking more and more like the dot.com boom. It needs strong brands, not just clever technology

first place and then in growing a successful business.

But brand isn’t just a catchy name, a nice logo and some attractive marketing materials. It means defining a compelling story that expresses the organisation’s vision and proposition – something that is easy to understand for those inside and outside the organisation. It means being clear about what sets the organisation or the product/service apart from competitors; having a clear way of doing things that ensures all behaviour and communications reinforce the same coherent messages, to build trust and confidence. Finally it means a strong, consistent way of expressing the brand through its look, feel, tone of voice and through the communication channels most appropriate. This is as important for B2B companies as it is for B2C companies.

Those that get it right will be the star brands of the future – and we have already seen in the dot.com boom how effectively Google, Amazon and others have used their clear, engaging brands to build market success.

New companies in the low carbon technology and services

sector should be placing brand at the heart of their thinking to inspire employees, attract the best recruits, convince investors that they have a compelling story and show customers and end consumers that they are here to stay. Some of the new ‘clean, green, low carbon economy’ players will be organisations from the ‘old economy’. They will need to reinterpret and reframe their brand, and think carefully about how it should be expressed, to ensure that it reflects the future, not the past.

The green economy represents an optimistic, exciting future, a new source of wealth and wellbeing, a new source of inspiration for design aesthetics and communication concepts. Companies must capture this vitality and positivity to transform economies and lifestyles with urgency, helping people switch quickly to new ways of thinking, new forms of behaviour – both in industrial areas but also in everyday life.

Compelling, engaging branding, design and communication will play a crucial role in encouraging change – helping to excite people rather than being apprehensive about the changes ahead.

Dragon

15

Written by Chris Cleaver Photography by Ben Morris

INTERVIEW

INTERVIEW

LOOK, LISTEN, AND LEARN

Stephen Wells has long been in the vanguard of the qualitative research industry, and is famous for his creative approach to research, placing consumers and brand owners in a dynamic juxtaposition. Dragonfly talks to him about the role research should be playing in developing creative ideas.

Today it’s all about insights rather than research…

People talk about insights as if they were facts – something that has a subjective or objective reality. An insight is an act of discovery – finding a connection between a deeply felt emotional need and a truth about the brand or idea you are working with. The research process has become very process oriented – very mechanistic – and in many instances over complicated.

So do we create the space and time required to find the true ‘insights’ that fuel creativity?

If we can encourage everyone to get away from thinking of research as a hurdle to be negotiated and more as a means of getting inside people’s minds then 'yes’. We all work under unnatural time pressures. At its worst, people want to prejudge how a workshop or how a piece of research will come out before it’s happened – understandable as they’ve a process to obey and stakeholders to manage. But this is more about testing things rather than listening 16

to what people are saying and then applying that understanding to fit to the ideas that are being evolved and shaped.

Some creatives would say that research crushes rather than builds creativity...

I sympathise, and you can see why. We’ve lost sight of the simple notion of research being used to develop ideas and contribute to, rather than comment on, creative output. Research should be a creative process in its own right. Good researchers are really curious about and passionately interested in ideas. They need to have more permission to employ their craft in a more subtle way and inspire others particularly creatives.

So are we talking about streamlining and simplifying?

In many cases, you only need to do a couple of groups to kick off, but it’s vital to have everyone present and actively involved. I prefer to work with very embryonic stimulus and to use respondents creatively – start off with the basic statement of the

idea – a visualizer in the room perhaps - maybe some indications of what the idea might look like, not a fait accompli. People need to feel that they have a contribution to make.

Some of the most successful creative projects I’ve worked on have been where there has been very little stimulus or where we have used spoken words as much as visuals. I am a strong believer in storytelling.

Storytelling involves people and makes them really listen to what’s being conveyed and so really understand.

Do people listen enough?

It’s the most misunderstood skill – I feel so passionate about this – energy is being sucked out of people spending hours a day on keyboards and looking at monitors and responding to things - mostly they are just hosing down the fires of what is happening. They are forgetting how to listen.

You can only really dig into feelings by listening. This is a

different skill from the researcher who is merely ‘testing’ something. To really listen to people is to affirm them – to make them feel able and happy to contribute – that allows us as researchers to detect the feelings behind what they are expressing… and from this to understand what is true now and what is yet to be discovered about your brand. If you listen to people they will take you to new places that you’ve not been before.

So one final piece of advice?

Keep it simple. Avoid gizmos. Don’t be afraid to go back to basics. Use your creative skills to help people imagine for themselves and use story telling as much as visual stimulus to help express your ideas. When it comes to debriefs, don’t insist on ‘a deck’ unless of course your intention is to leave everyone feeling shot through with bullet points by the end. Aside from the looks of alarm initially from some people when there is no laptop or data projector, everyone might find it an edifying experience.

17

Written by Chris Cleaver Photography by Ben Morris

INTERVIEW

INTERVIEW

LOOK, LISTEN, AND LEARN

Stephen Wells has long been in the vanguard of the qualitative research industry, and is famous for his creative approach to research, placing consumers and brand owners in a dynamic juxtaposition. Dragonfly talks to him about the role research should be playing in developing creative ideas.

Today it’s all about insights rather than research…

People talk about insights as if they were facts – something that has a subjective or objective reality. An insight is an act of discovery – finding a connection between a deeply felt emotional need and a truth about the brand or idea you are working with. The research process has become very process oriented – very mechanistic – and in many instances over complicated.

So do we create the space and time required to find the true ‘insights’ that fuel creativity?

If we can encourage everyone to get away from thinking of research as a hurdle to be negotiated and more as a means of getting inside people’s minds then 'yes’. We all work under unnatural time pressures. At its worst, people want to prejudge how a workshop or how a piece of research will come out before it’s happened – understandable as they’ve a process to obey and stakeholders to manage. But this is more about testing things rather than listening 16

to what people are saying and then applying that understanding to fit to the ideas that are being evolved and shaped.

Some creatives would say that research crushes rather than builds creativity...

I sympathise, and you can see why. We’ve lost sight of the simple notion of research being used to develop ideas and contribute to, rather than comment on, creative output. Research should be a creative process in its own right. Good researchers are really curious about and passionately interested in ideas. They need to have more permission to employ their craft in a more subtle way and inspire others particularly creatives.

So are we talking about streamlining and simplifying?

In many cases, you only need to do a couple of groups to kick off, but it’s vital to have everyone present and actively involved. I prefer to work with very embryonic stimulus and to use respondents creatively – start off with the basic statement of the

idea – a visualizer in the room perhaps - maybe some indications of what the idea might look like, not a fait accompli. People need to feel that they have a contribution to make.

Some of the most successful creative projects I’ve worked on have been where there has been very little stimulus or where we have used spoken words as much as visuals. I am a strong believer in storytelling.

Storytelling involves people and makes them really listen to what’s being conveyed and so really understand.

Do people listen enough?

It’s the most misunderstood skill – I feel so passionate about this – energy is being sucked out of people spending hours a day on keyboards and looking at monitors and responding to things - mostly they are just hosing down the fires of what is happening. They are forgetting how to listen.

You can only really dig into feelings by listening. This is a

different skill from the researcher who is merely ‘testing’ something. To really listen to people is to affirm them – to make them feel able and happy to contribute – that allows us as researchers to detect the feelings behind what they are expressing… and from this to understand what is true now and what is yet to be discovered about your brand. If you listen to people they will take you to new places that you’ve not been before.

So one final piece of advice?

Keep it simple. Avoid gizmos. Don’t be afraid to go back to basics. Use your creative skills to help people imagine for themselves and use story telling as much as visual stimulus to help express your ideas. When it comes to debriefs, don’t insist on ‘a deck’ unless of course your intention is to leave everyone feeling shot through with bullet points by the end. Aside from the looks of alarm initially from some people when there is no laptop or data projector, everyone might find it an edifying experience.

17

Written by Chris Cleaver Illustration by James Joyce

FEATURE

FEATURE

Will necessity be the mother of invention?

The answer to getting businesses and consumers to start spending could lie not in deep discounting, but a new approach to innovation. What are the new rules for a new time?

In life there’s basically two types of person – the half empty and the half full. You might think that the current recessionary climate would challenge even the fullest half-full person.

However, despite the dire warnings of doom and gloom that the press seem to favour, there are some of us who think that this might provide opportunities for those with the imagination and drive to seize them. Many feel that we shouldn’t allow this recession to go to waste – that we need not to be caught like rabbits in its headlights.

So it’s hardly a surprise that we are beginning to hear the claim that we might find a surer way

18

Dragon

than spending our way out of this recession – and that is to innovate our way out. Indeed it’s unlikely that people will encourage spend again without innovation.

There’s no doubt that getting worried customers to get their hands out of their pockets and part with scarce cash is going to be a challenge for everyone during 2009, particularly in an environment where credit is hard to find, and financial providers, previously so friendly and helpful, have largely raised the drawbridge.

The question is what else will change, and are we at a tipping point at which the straight line

growth graph will become a thing of the past?

Dragonfly has heard it through the grapevine that some are putting the brakes on some innovation programmes, choosing to delay launches and spending until the recession abates. But no-one can really call what 2009 will look like. This will quickly become a self-fulfilling prophecy if something isn’t done to break the spell and make us think that there is a way through…

Or if not through, around.

However it seems to be universally agreed that an unmet need, be that a consumer or customer need, will always find a response from

Dragon

19

Written by Chris Cleaver Illustration by James Joyce

FEATURE

FEATURE

Will necessity be the mother of invention?

The answer to getting businesses and consumers to start spending could lie not in deep discounting, but a new approach to innovation. What are the new rules for a new time?

In life there’s basically two types of person – the half empty and the half full. You might think that the current recessionary climate would challenge even the fullest half-full person.

However, despite the dire warnings of doom and gloom that the press seem to favour, there are some of us who think that this might provide opportunities for those with the imagination and drive to seize them. Many feel that we shouldn’t allow this recession to go to waste – that we need not to be caught like rabbits in its headlights.

So it’s hardly a surprise that we are beginning to hear the claim that we might find a surer way

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than spending our way out of this recession – and that is to innovate our way out. Indeed it’s unlikely that people will encourage spend again without innovation.

There’s no doubt that getting worried customers to get their hands out of their pockets and part with scarce cash is going to be a challenge for everyone during 2009, particularly in an environment where credit is hard to find, and financial providers, previously so friendly and helpful, have largely raised the drawbridge.

The question is what else will change, and are we at a tipping point at which the straight line

growth graph will become a thing of the past?

Dragonfly has heard it through the grapevine that some are putting the brakes on some innovation programmes, choosing to delay launches and spending until the recession abates. But no-one can really call what 2009 will look like. This will quickly become a self-fulfilling prophecy if something isn’t done to break the spell and make us think that there is a way through…

Or if not through, around.

However it seems to be universally agreed that an unmet need, be that a consumer or customer need, will always find a response from

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FEATURE

FEATURE

WE MIGHT BE ABLE TO SPEND OUR WAY BACK TO THE PRESENT, BUT WE CAN ONLY INNOVATE OURSELVES INTO A BETTER FUTURE a willing supplier or brand owner. Looking for unmet needs and uncovering deep insights will become more and more important if we are to find the new products and services that will kick start the buying (and so innovation) cycle more broadly.

So with our half full-head on, let’s think of these delays as more of a case of keeping one’s powder dry than going into a full blown retreat.

A fresh business model One of the key differences this time around is the emerging belief that, whatever happens, things won’t go back to how they were before the current financial meltdown began. In part, this will be driven by a need to be more prudent financially. Neither individuals nor businesses will have as much spare cash as we’ve been used to, nor the same confidence about the future as they once had.

But more fundamentally some of us are beginning to think that a new partnership needs to emerge around which fresh and original business models may emerge and where we find permanent solutions to the more fundamental issues we all face. We might be able to spend our way back to the present, but we can only innovate ourselves into a better future.

There’s been a great deal of coverage in the press about how the discounters are doing well – as shoppers catapult themselves eagerly into Lidl and Primark in the hope of getting some just-as-good for less. Businesses, generally, also look to reduce costs, with many outsourcing their production and operations to lower cost-base geographies, and finding ways of stripping out

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cost from their business.

So when we talk about innovation, and promise to our clients the salvation that innovation will bring, we have to mean it on two levels – if we are to move from where we are now to a new and better place.

On one level, we should not forget to talk about innovation in its accepted and original sense – that of finding exciting and relevant new ideas to stimulate and delight our customers whoever they are, and make them choose our products or services over a competitor’s. So creating new products and services that better meet needs, and dynamic communications through visual identities, packaging, and other media that magnetize users to our brands are all aspects of the brand mix to which structured innovative thinking should be continually applied.

A new concept of value Just adding value becomes problematic as what constitutes value changes, and along with the original and new in what we offer, fresh approaches to business are also required.

As David Atkinson, General Manager Spreads and Beverages, of Premier Foods told Dragonfly: “It’s not about different types of innovation.

Innovation is all about understanding and then

surpassing consumer expectation. The challenge at the moment is that consumer needs are changing faster than ever before. You lose your job so you change your purchasing habits overnight. The question is how can we as brand owners accelerate the innovation cycle to reflect these changes faster?

It’s fair to say that innovation has been stuck in a cycle of premiumisation – to justify a higher spend to recover higher costs but at the product and marketing support and retailer margin levels. It’s a finite cycle and the recession has focused people on what really constitutes value.

I think everyone is going to have to look again at their core offering.”

Catherine Namey, Senior New Product Development Manager at Virgin Trains echoes these sentiments: “Innovation is all about the successful exploitation of new ideas, and is just as relevant today as when times are good. What has changed is that the new ideas need to reflect the changing mindset.

In a stronger economy, innovation has perhaps focused more on acquiring new customers through the implementation of new ideas, but in this climate innovation needs to be used as a tool to project the current customer base.”

Peter Gandolfi, founder of Gandolfi Consulting agrees:

Dragon

21

FEATURE

FEATURE

WE MIGHT BE ABLE TO SPEND OUR WAY BACK TO THE PRESENT, BUT WE CAN ONLY INNOVATE OURSELVES INTO A BETTER FUTURE a willing supplier or brand owner. Looking for unmet needs and uncovering deep insights will become more and more important if we are to find the new products and services that will kick start the buying (and so innovation) cycle more broadly.

So with our half full-head on, let’s think of these delays as more of a case of keeping one’s powder dry than going into a full blown retreat.

A fresh business model One of the key differences this time around is the emerging belief that, whatever happens, things won’t go back to how they were before the current financial meltdown began. In part, this will be driven by a need to be more prudent financially. Neither individuals nor businesses will have as much spare cash as we’ve been used to, nor the same confidence about the future as they once had.

But more fundamentally some of us are beginning to think that a new partnership needs to emerge around which fresh and original business models may emerge and where we find permanent solutions to the more fundamental issues we all face. We might be able to spend our way back to the present, but we can only innovate ourselves into a better future.

There’s been a great deal of coverage in the press about how the discounters are doing well – as shoppers catapult themselves eagerly into Lidl and Primark in the hope of getting some just-as-good for less. Businesses, generally, also look to reduce costs, with many outsourcing their production and operations to lower cost-base geographies, and finding ways of stripping out

20

Dragon

cost from their business.

So when we talk about innovation, and promise to our clients the salvation that innovation will bring, we have to mean it on two levels – if we are to move from where we are now to a new and better place.

On one level, we should not forget to talk about innovation in its accepted and original sense – that of finding exciting and relevant new ideas to stimulate and delight our customers whoever they are, and make them choose our products or services over a competitor’s. So creating new products and services that better meet needs, and dynamic communications through visual identities, packaging, and other media that magnetize users to our brands are all aspects of the brand mix to which structured innovative thinking should be continually applied.

A new concept of value Just adding value becomes problematic as what constitutes value changes, and along with the original and new in what we offer, fresh approaches to business are also required.

As David Atkinson, General Manager Spreads and Beverages, of Premier Foods told Dragonfly: “It’s not about different types of innovation.

Innovation is all about understanding and then

surpassing consumer expectation. The challenge at the moment is that consumer needs are changing faster than ever before. You lose your job so you change your purchasing habits overnight. The question is how can we as brand owners accelerate the innovation cycle to reflect these changes faster?

It’s fair to say that innovation has been stuck in a cycle of premiumisation – to justify a higher spend to recover higher costs but at the product and marketing support and retailer margin levels. It’s a finite cycle and the recession has focused people on what really constitutes value.

I think everyone is going to have to look again at their core offering.”

Catherine Namey, Senior New Product Development Manager at Virgin Trains echoes these sentiments: “Innovation is all about the successful exploitation of new ideas, and is just as relevant today as when times are good. What has changed is that the new ideas need to reflect the changing mindset.

In a stronger economy, innovation has perhaps focused more on acquiring new customers through the implementation of new ideas, but in this climate innovation needs to be used as a tool to project the current customer base.”

Peter Gandolfi, founder of Gandolfi Consulting agrees:

Dragon

21

FEATURE

FEATURE

“The recession will lead to innovation that will pave the way for a brighter, more efficient future.

Survival and innovation will therefore exist side by side. Customers don’t ‘look’ for innovation.

The basis of good innovation is that the customer doesn’t foresee or expect it. Leading brands ‘surprise’ customers through innovation.”

Speed to market So it would seem that innovation isn’t off the agenda but how businesses focus their imagination and inventive capacities will change to enable businesses to cope with market conditions and reflect the realities of their customers’ lives, and the pressures they themselves are under.

However, while all agree that the surest way to innovate is to look for an unmet need, there is contingent requirement for businesses not to take undue risk and to ensure that there is a good return on the investment. This highlights the role that having a strong brand plays in providing the headspace within a market to enable innovation, and also to insulate it against competitive intrusion.

This reference to the cycle of innovation speeding up is echoed by Arun Prabhu, Head of Future Creations at Arla Foods: “The way we used to do innovation will have to change because of the power of the retailer they will just copy you at a product level as quickly as you can turn around. Brands have to connect with users at a more fundamental level - connect at the level of faith and belief. This is what allows Apple to move effortlessly from computers to music players to phones. They get copied by other brands - so now LG and Nokia all have touch-screens - but there’s something about the Apple brand that people buy into.”

Catherine Namey thinks in a similar way: “The external environment is changing so quickly that any innovation programme needs to understand these dynamics. For example, consumer research carried out at the start of a long innovation process may not offer relevant insights at the end of this process. There will be

a pressure to bring ideas to market a lot faster than a couple of years ago.”

Redefining value There is also agreement that a greater degree of transparency accompanied by a redefinition of what constitutes ‘value’ may be a lasting effect of this recession. Getting more for less could be a hard habit to break once embedded and certainly driving up prices without offering additional value won’t be an available strategy going forward.

Arun Prabhu agrees: “If this was just a recession by itself, I think people would go back to how it was before - but we are actually in the middle of a much bigger evolution where people are questioning the need for material goods and looking for additional value.

The growth in discounters has been accelerated, but began before the recession hit. People are questioning what they are getting from brands now. In food people are questioning how much they pay - trading across rather than down to own brand. On sales revenue alone, Tesco’s own brand is probably one of the biggest brands in the country. And we now have Finest as a premium brand - premium own label a few years ago would have been an oxymoron.”

Sally Shire, Group Brand Development Director at Aviva echoes these sentiments: “We need to understand what customers will ‘value’ in this current climate - that is to say what will help them make the most of their available resources and achieve ‘peace of mind’.

“I believe customers will judge ‘value’ not just in terms of ‘getting a good deal‘ on price but will be

looking for things on which they can depend - so the challenge of innovation is finding ways of meeting these dual needs in whatever market we operate.”

Dawn Patten, Payer Engagement Manager of AstraZeneca reflects a similar view: “Value-based pricing only really works if the purchaser values the innovation. Where the Pharma industry’s definition of value is at odds with purchaser expectation, then downward pressure on prices is occurring – or innovative pricing options are coming into play such as ‘outcomes guarantee’ or ‘response/rebate’ type approaches to try to bridge the gap.”

Soinnovationmustberegardedasanintegral part of building and strengthening your brand or business reputation and the bond of loyalty between customers and the businesses.

Generally the response from financial services companies has been lamentable and there is a blizzard of conflicting coverage which leaves even the more financially clued up of us wondering if it’s better to default on a loan in order to get some support or keep paying and

WE ARE IN THE MIDDLE OF A MUCH BIGGER EVOLUTION: PEOPLE ARE QUESTIONING THE NEED FOR MATERIAL GOODS AND LOOKING FOR VALUE 22

Dragon

risk having our payment levels driven up.

Again it may be that transparency is what is required – to help us understand that there is a direct link between risk and cost – and that the Micawber approach to financial management is probably basically sound.

Butperhapsthebiggestinnovationchallenge that any brand will face is how to manage a current business model through a period where we may be encouraged to consume less or at least to consume differently. It’s here that perhaps the

most radical form of innovation is required – to help us take a step away from conventional norms to new ways of thinking and acting.

Alongside more evolutionary innovation which is expected from all great brands, a continual improvement programme if you like, there is a need for brands to take a leadership role. By innovating themselves, they allow us to make the fundamental changes that we will need to make in our lives if we aren’t to find ourselves back at the beginning when this

particular economic cycle is over.

If we accept the argument that today brands and the businesses behind them are the main change agents in this world, then it follows that it is brands, not governments, that should be leading the way with innovative approaches to how they themselves operate. In doing so, they can encourage us to make some of the fundamental changes that everyone, be they an individual or a business leader, will need to make, if we are to reach a more sustainable future.

Dragon

23

FEATURE

FEATURE

“The recession will lead to innovation that will pave the way for a brighter, more efficient future.

Survival and innovation will therefore exist side by side. Customers don’t ‘look’ for innovation.

The basis of good innovation is that the customer doesn’t foresee or expect it. Leading brands ‘surprise’ customers through innovation.”

Speed to market So it would seem that innovation isn’t off the agenda but how businesses focus their imagination and inventive capacities will change to enable businesses to cope with market conditions and reflect the realities of their customers’ lives, and the pressures they themselves are under.

However, while all agree that the surest way to innovate is to look for an unmet need, there is contingent requirement for businesses not to take undue risk and to ensure that there is a good return on the investment. This highlights the role that having a strong brand plays in providing the headspace within a market to enable innovation, and also to insulate it against competitive intrusion.

This reference to the cycle of innovation speeding up is echoed by Arun Prabhu, Head of Future Creations at Arla Foods: “The way we used to do innovation will have to change because of the power of the retailer they will just copy you at a product level as quickly as you can turn around. Brands have to connect with users at a more fundamental level - connect at the level of faith and belief. This is what allows Apple to move effortlessly from computers to music players to phones. They get copied by other brands - so now LG and Nokia all have touch-screens - but there’s something about the Apple brand that people buy into.”

Catherine Namey thinks in a similar way: “The external environment is changing so quickly that any innovation programme needs to understand these dynamics. For example, consumer research carried out at the start of a long innovation process may not offer relevant insights at the end of this process. There will be

a pressure to bring ideas to market a lot faster than a couple of years ago.”

Redefining value There is also agreement that a greater degree of transparency accompanied by a redefinition of what constitutes ‘value’ may be a lasting effect of this recession. Getting more for less could be a hard habit to break once embedded and certainly driving up prices without offering additional value won’t be an available strategy going forward.

Arun Prabhu agrees: “If this was just a recession by itself, I think people would go back to how it was before - but we are actually in the middle of a much bigger evolution where people are questioning the need for material goods and looking for additional value.

The growth in discounters has been accelerated, but began before the recession hit. People are questioning what they are getting from brands now. In food people are questioning how much they pay - trading across rather than down to own brand. On sales revenue alone, Tesco’s own brand is probably one of the biggest brands in the country. And we now have Finest as a premium brand - premium own label a few years ago would have been an oxymoron.”

Sally Shire, Group Brand Development Director at Aviva echoes these sentiments: “We need to understand what customers will ‘value’ in this current climate - that is to say what will help them make the most of their available resources and achieve ‘peace of mind’.

“I believe customers will judge ‘value’ not just in terms of ‘getting a good deal‘ on price but will be

looking for things on which they can depend - so the challenge of innovation is finding ways of meeting these dual needs in whatever market we operate.”

Dawn Patten, Payer Engagement Manager of AstraZeneca reflects a similar view: “Value-based pricing only really works if the purchaser values the innovation. Where the Pharma industry’s definition of value is at odds with purchaser expectation, then downward pressure on prices is occurring – or innovative pricing options are coming into play such as ‘outcomes guarantee’ or ‘response/rebate’ type approaches to try to bridge the gap.”

Soinnovationmustberegardedasanintegral part of building and strengthening your brand or business reputation and the bond of loyalty between customers and the businesses.

Generally the response from financial services companies has been lamentable and there is a blizzard of conflicting coverage which leaves even the more financially clued up of us wondering if it’s better to default on a loan in order to get some support or keep paying and

WE ARE IN THE MIDDLE OF A MUCH BIGGER EVOLUTION: PEOPLE ARE QUESTIONING THE NEED FOR MATERIAL GOODS AND LOOKING FOR VALUE 22

Dragon

risk having our payment levels driven up.

Again it may be that transparency is what is required – to help us understand that there is a direct link between risk and cost – and that the Micawber approach to financial management is probably basically sound.

Butperhapsthebiggestinnovationchallenge that any brand will face is how to manage a current business model through a period where we may be encouraged to consume less or at least to consume differently. It’s here that perhaps the

most radical form of innovation is required – to help us take a step away from conventional norms to new ways of thinking and acting.

Alongside more evolutionary innovation which is expected from all great brands, a continual improvement programme if you like, there is a need for brands to take a leadership role. By innovating themselves, they allow us to make the fundamental changes that we will need to make in our lives if we aren’t to find ourselves back at the beginning when this

particular economic cycle is over.

If we accept the argument that today brands and the businesses behind them are the main change agents in this world, then it follows that it is brands, not governments, that should be leading the way with innovative approaches to how they themselves operate. In doing so, they can encourage us to make some of the fundamental changes that everyone, be they an individual or a business leader, will need to make, if we are to reach a more sustainable future.

Dragon

23

Written by Daniel Saul Zeff

FEATURE

FEATURE

BRAVE NEW WORLD

In the fight for audience attention, brands must be on a mission to entertain These are taxing times for brand custodians.

A confluence of media has created a cacophony of uncertainty. Much has been written about the vaunted fall of the thirty-second spot with the rise of ‘New Media.’ But now even ‘New Media’ has become passé. We’ve moved on from the Television era, through the Internet age and into a more complex time when content is king and medium is almost an irrelevance.

This meeting of mobile, internet, video and on-demand (to name but a few) has rocked the certainty with which we touch our consumers’ hearts and win over their wallets. In the fight for our consumers’ attention, we need to engage them with branded content that’s unmissable: Inescapably Branded Entertainment.

But first, some context. Think of the social contract that consumers have so readily torn up with the advent of bit-torrent and Sky+.

This long-standing unwritten agreement was based on an exchange of time: consumers gave up precious moments in their day and, in turn, networks gave entertainment for free.

That model has been shattered by a distinct and unstoppable phenomenon: the transfer of power from broadcaster to consumer.

This circumstance has prompted at least three new consumer behaviours. Consider my mother, whom no-one could ever credit with surfing the cusp of the technology wave, but who has, to her credit, mastered Sky+ with a dexterity equal to any. The first behaviour is detaching the broadcast time from consumption: thanks to ‘Series Record,’ my mother can rely on her box to do the heavy lifting. The second behaviour is best described as ‘Pause Playing.’ My mother, on the occasion that she does intend to watch a piece of live entertainment, has taken to pausing the first fifteen minutes or so, in order to skip through the ad breaks when they arrive.

Finally, my mother has discovered iPlayer and on-demand, subtracting any concept of time or space from the provision of entertainment.

Move down the generations and the story is pulled into sharp focus, where not just the

experience, but the very manner of experience has irrevocably shifted. Watch any 14-year-old consumer enjoying television and you’ll notice an oddity in their behaviour - they don’t actually watch television. They’re experts in parallel consumption: watching broadcast TV, internet and mobile whilst flicking through magazines, updating Facebook status and stealing music via bit-torrent. Consumers, for all intents and purposes, have gone rogue.

So things look pretty gloomy for brands.

We know the rise of the VCR, Sky, TiVO, VOD and bit-torrent has progressively eroded live viewership. For example, in 2004, the cost to reach an audience of 25 million in the USA for a 30 second segment during Lost was $250,000.

Today, Lost’s broadcast audience has almost halved, yet that price tag has barely changed.

So the correlation between time and audience has been shot. And as a result, we’re no longer able to get a reliable share of attention through half-minute moments. We need to look for a life after 30. To quote Simon Clift (CMO, Unilever) “…for 50 or 60 odd years our business model has been shifting 40 billion euros worth of soap and soup using 3 billion euros of - largely - television advertising. And that model, if not exactly shattered, is certainly cracked.”

Fortunately, we find ourselves in the midst of a generational shift, a revolutionary period

THE MODEL HAS BEEN SHATTERED

BY AN UNSTOPPABLE PHENOMENON Axe Vice Naughty to Nice Program: the brand is woven into the entertainment idea’s DNA

24

25

Written by Daniel Saul Zeff

FEATURE

FEATURE

BRAVE NEW WORLD

In the fight for audience attention, brands must be on a mission to entertain These are taxing times for brand custodians.

A confluence of media has created a cacophony of uncertainty. Much has been written about the vaunted fall of the thirty-second spot with the rise of ‘New Media.’ But now even ‘New Media’ has become passé. We’ve moved on from the Television era, through the Internet age and into a more complex time when content is king and medium is almost an irrelevance.

This meeting of mobile, internet, video and on-demand (to name but a few) has rocked the certainty with which we touch our consumers’ hearts and win over their wallets. In the fight for our consumers’ attention, we need to engage them with branded content that’s unmissable: Inescapably Branded Entertainment.

But first, some context. Think of the social contract that consumers have so readily torn up with the advent of bit-torrent and Sky+.

This long-standing unwritten agreement was based on an exchange of time: consumers gave up precious moments in their day and, in turn, networks gave entertainment for free.

That model has been shattered by a distinct and unstoppable phenomenon: the transfer of power from broadcaster to consumer.

This circumstance has prompted at least three new consumer behaviours. Consider my mother, whom no-one could ever credit with surfing the cusp of the technology wave, but who has, to her credit, mastered Sky+ with a dexterity equal to any. The first behaviour is detaching the broadcast time from consumption: thanks to ‘Series Record,’ my mother can rely on her box to do the heavy lifting. The second behaviour is best described as ‘Pause Playing.’ My mother, on the occasion that she does intend to watch a piece of live entertainment, has taken to pausing the first fifteen minutes or so, in order to skip through the ad breaks when they arrive.

Finally, my mother has discovered iPlayer and on-demand, subtracting any concept of time or space from the provision of entertainment.

Move down the generations and the story is pulled into sharp focus, where not just the

experience, but the very manner of experience has irrevocably shifted. Watch any 14-year-old consumer enjoying television and you’ll notice an oddity in their behaviour - they don’t actually watch television. They’re experts in parallel consumption: watching broadcast TV, internet and mobile whilst flicking through magazines, updating Facebook status and stealing music via bit-torrent. Consumers, for all intents and purposes, have gone rogue.

So things look pretty gloomy for brands.

We know the rise of the VCR, Sky, TiVO, VOD and bit-torrent has progressively eroded live viewership. For example, in 2004, the cost to reach an audience of 25 million in the USA for a 30 second segment during Lost was $250,000.

Today, Lost’s broadcast audience has almost halved, yet that price tag has barely changed.

So the correlation between time and audience has been shot. And as a result, we’re no longer able to get a reliable share of attention through half-minute moments. We need to look for a life after 30. To quote Simon Clift (CMO, Unilever) “…for 50 or 60 odd years our business model has been shifting 40 billion euros worth of soap and soup using 3 billion euros of - largely - television advertising. And that model, if not exactly shattered, is certainly cracked.”

Fortunately, we find ourselves in the midst of a generational shift, a revolutionary period

THE MODEL HAS BEEN SHATTERED

BY AN UNSTOPPABLE PHENOMENON Axe Vice Naughty to Nice Program: the brand is woven into the entertainment idea’s DNA

24

25

FEATURE

FEATURE

in which new channels and new forms of advertising are being invented as we speak.

We need a mechanism to mobilise all this media.

A key tool within this new media mix is the concept we’ve coined to help brands get a deeper, more effective sense of how to define and use branded entertainment to engage with consumers: Inescapably Branded Entertainment (IBE). Isn’t it marvellous? Okay let’s dig deeper.

Entertainment in itself is a slippery construct.

Newsnight is entertainment, if you think about it... and there’s the problem. We class entertainment as the media we choose to experience. This can be anything from a TV series, a detective novel... all the way along to a sonnet: they’re all experiences to which we choose to devote our time (except for the sonnet which, as we can all agree, is just annoying).

Within IBE, brand and entertainment exist in a truly symbiotic relationship, informing and feeding off each other. Remember Top Gun? Part financed and developed by the US Navy, it was no coincidence that audiences streamed into the naval recruitment booths (strategically placed in cinema foyers) just after the film’s release. Top Gun is our idol, but brands like Axe (with their Gamekillers on MTV), and Sears (whose tools shape the foundations of Extreme Makeover Home Edition) act as a beacon for brands to follow.

But creating and delivering IBE presents a tough brief. These are our five rules: Rule 1: Practice IBE So,let’sbeclear:IBEisn’tsimplysponsorship, nor is it product placement, or some abstract notion of brand integration.

The creation of a truly big IBE idea occurs when both parents (brand and entertainment) are present at conception, and seamlessly integrate. Here’s a time-tested example: consider DeBeers’ 70-year relationship with the film industry. Back in the 1930s, DeBeers strove to boost sales and profile by giving their jewellery to Hollywood starlets who could showcase it in their movies. In no time, diamonds became an enduring symbol of love and commitment and our traditions were changed forever.

Axe’s ‘documercials’ examine schemes to rehabilitate wayward women misbehaving under the influence of Axe Vice. This successfully reinforces the brand and is sought out by consumers

26

Rule 2: Entertainment is everything Entertainment is everything. Branded entertainment has to be sought out, talked about and treasured by audiences. We want IBE to be coveted to the extent that consumers want to steal it: if it passes the bit torrent test (the brand message is unmissable even when all logos and stings are ripped out, and the audience watches it on fast forward), it’s a true embodiment of the ideal.

Rule 3: Familiarity breeds contentment The lifeblood of traditionally great advertising is innovative creative. But the formula for entertainment works in reverse. Consider Countdown, that bastion of 80s television: its format has remained relatively unchanged over the course of some 30 years, and yet its audience has consistently and reliably remained loyal.

It’s the very familiarity of scenarios that allow audiences to invest their time and loyalty. Through IBE, brands have the opportunity to create long-term, reliable, creative platforms through which to communicate their brand messages.

Imagine for a moment if, instead of inventing a coffee shop called ‘Central Perk’ for Friends, its creators had partnered with Starbucks and embedded the Starbucks behaviour within the Friends entertainment platform. Oh wait, actually, on reflection, Starbucks were rather successful in communicating their third place anyway, but you get the point.

Rule 4: Hedge your bets Entertainment is fraught with difficulties. The only way of overcoming the vagaries of consumer preferenceisthroughexpert,balancedandcareful portfolio management. Put simply, when it comes to entertainment, you’ve got to hedge your bets.

Our preference is for brands to pursue multiple entertainment platforms, at a fast pace with a low cost model, to rapidly implement ideas and test in-market. Ultimately, the consumer decides the entertainment that will touch hearts and move minds. If you’re thinking it’s possible to test ideas in the safety and security of a lab or a test screening, you’re wrong. Even blockbuster movies fall foul of radiant test audiences (stuffed with free popcorn, note), only to find that in-market consumers avoid their release with the dexterity of, well... a very dextrous thing. So hedge your bets, pursue multiple IBE ideas at low cost in your pilot stage, and you stand a chance of achieving some success.

Rule 5: Behavioural activation It’s all very well coming up with a fabulous piece of IBE. But how do we then translate audience attention to more cha-chings at the check-out? We believe that IBE must integrate a mechanism to shift behaviour. This is the hardest part of the process, and should soar well beyond using codes on the side of the pack for redemption. It’s one of the most exciting ways of imbuing the consumer with IBE. Our conclusion: The rules are changing IBE is as much an ambition as it is a reality.

The opportunity it creates will result in brands truly owning and exploiting long-term entertainment platforms to deliver their brand messages.

And of course, we all think we’re really clever, brilliant brand minds innovating, but in that, we’re misguided.Reflectbackoverahundredyears,and it’s abruptly revealed that Lord Leverhulme (just two years after the advent of film) in fact invented IBE through his collaboration with the Lumière brothers. The resultant spectacle ticks all the boxes for Sunlight Soap. And it reminds us to be humble when faced with challenges in our quest to create the next great piece of entertainment for our consumers whose appetites grow more discerning by the nanosecond.

IT PASSES THE BIT-TORRENT TEST IF THE BRAND MESSAGE IS UNMISSABLE EVEN WHEN ALL THE LOGOS AND STINGS ARE RIPPED OUT Dragon

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FEATURE

in which new channels and new forms of advertising are being invented as we speak.

We need a mechanism to mobilise all this media.

A key tool within this new media mix is the concept we’ve coined to help brands get a deeper, more effective sense of how to define and use branded entertainment to engage with consumers: Inescapably Branded Entertainment (IBE). Isn’t it marvellous? Okay let’s dig deeper.

Entertainment in itself is a slippery construct.

Newsnight is entertainment, if you think about it... and there’s the problem. We class entertainment as the media we choose to experience. This can be anything from a TV series, a detective novel... all the way along to a sonnet: they’re all experiences to which we choose to devote our time (except for the sonnet which, as we can all agree, is just annoying).

Within IBE, brand and entertainment exist in a truly symbiotic relationship, informing and feeding off each other. Remember Top Gun? Part financed and developed by the US Navy, it was no coincidence that audiences streamed into the naval recruitment booths (strategically placed in cinema foyers) just after the film’s release. Top Gun is our idol, but brands like Axe (with their Gamekillers on MTV), and Sears (whose tools shape the foundations of Extreme Makeover Home Edition) act as a beacon for brands to follow.

But creating and delivering IBE presents a tough brief. These are our five rules: Rule 1: Practice IBE So,let’sbeclear:IBEisn’tsimplysponsorship, nor is it product placement, or some abstract notion of brand integration.

The creation of a truly big IBE idea occurs when both parents (brand and entertainment) are present at conception, and seamlessly integrate. Here’s a time-tested example: consider DeBeers’ 70-year relationship with the film industry. Back in the 1930s, DeBeers strove to boost sales and profile by giving their jewellery to Hollywood starlets who could showcase it in their movies. In no time, diamonds became an enduring symbol of love and commitment and our traditions were changed forever.

Axe’s ‘documercials’ examine schemes to rehabilitate wayward women misbehaving under the influence of Axe Vice. This successfully reinforces the brand and is sought out by consumers

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Rule 2: Entertainment is everything Entertainment is everything. Branded entertainment has to be sought out, talked about and treasured by audiences. We want IBE to be coveted to the extent that consumers want to steal it: if it passes the bit torrent test (the brand message is unmissable even when all logos and stings are ripped out, and the audience watches it on fast forward), it’s a true embodiment of the ideal.

Rule 3: Familiarity breeds contentment The lifeblood of traditionally great advertising is innovative creative. But the formula for entertainment works in reverse. Consider Countdown, that bastion of 80s television: its format has remained relatively unchanged over the course of some 30 years, and yet its audience has consistently and reliably remained loyal.

It’s the very familiarity of scenarios that allow audiences to invest their time and loyalty. Through IBE, brands have the opportunity to create long-term, reliable, creative platforms through which to communicate their brand messages.

Imagine for a moment if, instead of inventing a coffee shop called ‘Central Perk’ for Friends, its creators had partnered with Starbucks and embedded the Starbucks behaviour within the Friends entertainment platform. Oh wait, actually, on reflection, Starbucks were rather successful in communicating their third place anyway, but you get the point.

Rule 4: Hedge your bets Entertainment is fraught with difficulties. The only way of overcoming the vagaries of consumer preferenceisthroughexpert,balancedandcareful portfolio management. Put simply, when it comes to entertainment, you’ve got to hedge your bets.

Our preference is for brands to pursue multiple entertainment platforms, at a fast pace with a low cost model, to rapidly implement ideas and test in-market. Ultimately, the consumer decides the entertainment that will touch hearts and move minds. If you’re thinking it’s possible to test ideas in the safety and security of a lab or a test screening, you’re wrong. Even blockbuster movies fall foul of radiant test audiences (stuffed with free popcorn, note), only to find that in-market consumers avoid their release with the dexterity of, well... a very dextrous thing. So hedge your bets, pursue multiple IBE ideas at low cost in your pilot stage, and you stand a chance of achieving some success.

Rule 5: Behavioural activation It’s all very well coming up with a fabulous piece of IBE. But how do we then translate audience attention to more cha-chings at the check-out? We believe that IBE must integrate a mechanism to shift behaviour. This is the hardest part of the process, and should soar well beyond using codes on the side of the pack for redemption. It’s one of the most exciting ways of imbuing the consumer with IBE. Our conclusion: The rules are changing IBE is as much an ambition as it is a reality.

The opportunity it creates will result in brands truly owning and exploiting long-term entertainment platforms to deliver their brand messages.

And of course, we all think we’re really clever, brilliant brand minds innovating, but in that, we’re misguided.Reflectbackoverahundredyears,and it’s abruptly revealed that Lord Leverhulme (just two years after the advent of film) in fact invented IBE through his collaboration with the Lumière brothers. The resultant spectacle ticks all the boxes for Sunlight Soap. And it reminds us to be humble when faced with challenges in our quest to create the next great piece of entertainment for our consumers whose appetites grow more discerning by the nanosecond.

IT PASSES THE BIT-TORRENT TEST IF THE BRAND MESSAGE IS UNMISSABLE EVEN WHEN ALL THE LOGOS AND STINGS ARE RIPPED OUT Dragon

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VALUE OF VALUES * WHAT IS THE

Written by Kate Waddell Photography by Ben Morris

INTERVIEW

INTERVIEW

NEW TIMES, NEW RULES

Rob Candelino has worked with some of the world’s best known and best loved brands during his twelve years at Unilever, gaining invaluable global as well as local market experience in the USA and his native Canada. In his current role as Global Brand Director for Surf, he is responsible for helping lead the brand’s strategy, positioning, innovation and financial delivery. Here he talks to Dragonfly about the rules for innovation in today’s climate.

Is there a new definition needed for what innovation is in 2009?

No, I don’t think so.

Innovation, at its core, is about improving quality, efficiency or value for the consumer. Those are the fundamental principles of innovation, which hold true in any economic climate - boom or bust.

Has innovation disappeared from the business agenda to be replaced by a survival instinct?

Actually I believe the truly best-in-class organisations will leverage innovation even more in this recession. If necessity is truly the mother of invention, then we should expect to see even more innovation in the coming months as companies face even stronger headwinds.

Again, this refers to the strongest and smartest companies. The ones that don’t use all their weapons, especially innovation, probably won’t make it out the back end of this crisis.

14 30

Dragon

Has the type of innovation, we as customers look for, changed ?

I believe consumers will scrutinize the value they derive from each innovation much more.

New products in consumer staple categories generally come with a higher price tag for the user. With fewer pounds to spend consumers will now be even less likely to try something new and more expensive. The behaviour is generally for that individual to trade down to cheaper products so we need to make very clear to a consumer that there is tremendous value for him/her in buying our innovation.

Will the dynamism that an innovative culture brings become a key criteria for judging the health of a business - for example for shareholders and investors as well as current and future talent?

Yes, typically the most innovative companies are the ones who are most revered and rewarded - by shareholders and consumers as well as their peers. Apple and Nike are obviously the cliché examples most people cite. Tesco and Innocent would be ones in this country that spring to mind. However I think it’s very interesting to note what’s happened in the auto industry. Look what the 500 has done for Fiat.

The Prius for Toyota.

Those innovations have simultaneously transformed their companies and their industries. Of course it’s easy to talk about the successes. I don’t think shareholders would be too happy investing in an innovative company if the innovations they create don’t make any money or sense.

Will businesses need to be prepared to take more risks in how they innovate, including shortening process?

All innovation has an element of risk. I don’t think less testing is necessarily the answer to mitigate that.

Sometimes real innovation requires loads of testing to get it absolutely right. For example, I for one want to know that Airbus has extensively tested the A380 before I get on board. I think it’s easy (but wrong) to suggest that all great innovation is simply the brainchild of some marketing genius and we shouldn’t subject that thinking to a proper testing program. The real answer, not surprisingly, is to do the right type of testing, in the right amount, depending on the scale and ambition of the innovation itself.

Dragon

15 31

Written by Kate Waddell Photography by Ben Morris

INTERVIEW

INTERVIEW

NEW TIMES, NEW RULES

Rob Candelino has worked with some of the world’s best known and best loved brands during his twelve years at Unilever, gaining invaluable global as well as local market experience in the USA and his native Canada. In his current role as Global Brand Director for Surf, he is responsible for helping lead the brand’s strategy, positioning, innovation and financial delivery. Here he talks to Dragonfly about the rules for innovation in today’s climate.

Is there a new definition needed for what innovation is in 2009?

No, I don’t think so.

Innovation, at its core, is about improving quality, efficiency or value for the consumer. Those are the fundamental principles of innovation, which hold true in any economic climate - boom or bust.

Has innovation disappeared from the business agenda to be replaced by a survival instinct?

Actually I believe the truly best-in-class organisations will leverage innovation even more in this recession. If necessity is truly the mother of invention, then we should expect to see even more innovation in the coming months as companies face even stronger headwinds.

Again, this refers to the strongest and smartest companies. The ones that don’t use all their weapons, especially innovation, probably won’t make it out the back end of this crisis.

14 30

Dragon

Has the type of innovation, we as customers look for, changed ?

I believe consumers will scrutinize the value they derive from each innovation much more.

New products in consumer staple categories generally come with a higher price tag for the user. With fewer pounds to spend consumers will now be even less likely to try something new and more expensive. The behaviour is generally for that individual to trade down to cheaper products so we need to make very clear to a consumer that there is tremendous value for him/her in buying our innovation.

Will the dynamism that an innovative culture brings become a key criteria for judging the health of a business - for example for shareholders and investors as well as current and future talent?

Yes, typically the most innovative companies are the ones who are most revered and rewarded - by shareholders and consumers as well as their peers. Apple and Nike are obviously the cliché examples most people cite. Tesco and Innocent would be ones in this country that spring to mind. However I think it’s very interesting to note what’s happened in the auto industry. Look what the 500 has done for Fiat.

The Prius for Toyota.

Those innovations have simultaneously transformed their companies and their industries. Of course it’s easy to talk about the successes. I don’t think shareholders would be too happy investing in an innovative company if the innovations they create don’t make any money or sense.

Will businesses need to be prepared to take more risks in how they innovate, including shortening process?

All innovation has an element of risk. I don’t think less testing is necessarily the answer to mitigate that.

Sometimes real innovation requires loads of testing to get it absolutely right. For example, I for one want to know that Airbus has extensively tested the A380 before I get on board. I think it’s easy (but wrong) to suggest that all great innovation is simply the brainchild of some marketing genius and we shouldn’t subject that thinking to a proper testing program. The real answer, not surprisingly, is to do the right type of testing, in the right amount, depending on the scale and ambition of the innovation itself.

Dragon

15 31

There’s a tricky little bunch heading for employment in a few years’ time. If you thought Gen Y was demanding, wait until you get a load of these You have to agree, it’s a tricky place to start: the end. Generation Z: a generation of contrasts.

Born into the end of the alphabet, on the cusp of the 21st century. What will this juxtaposition mean for our terminally named generation?

As they say, to understand where you’re headed you have to look at where you’ve been – and for Gen Z, that means looking back into the

mists of their parents’ and grandparents’ times.

(And for the over 44s reading this, all of you Generation Jonesers are cast out into the wilderness of great-grandparenthood).

So, Gen Z, children of Gen X (1967-1977), and cousins to Gen Y (1978-1994) – what are your roots, your beginnings? Not overly auspicious it would first appear. Your parents have been

There’s a tricky little bunch heading for employment in a few years’ time. If you thought Gen Y was demanding, wait until you get a load of these You have to agree, it’s a tricky place to start: the end. Generation Z: a generation of contrasts.

Born into the end of the alphabet, on the cusp of the 21st century. What will this juxtaposition mean for our terminally named generation?

As they say, to understand where you’re headed you have to look at where you’ve been – and for Gen Z, that means looking back into the

mists of their parents’ and grandparents’ times.

(And for the over 44s reading this, all of you Generation Jonesers are cast out into the wilderness of great-grandparenthood).

So, Gen Z, children of Gen X (1967-1977), and cousins to Gen Y (1978-1994) – what are your roots, your beginnings? Not overly auspicious it would first appear. Your parents have been

BORN TO PEOPLE WHO ARE CYNICAL, HARD-EDGED, AND DISILLUSIONED WITH THE WORLD

described as “insular, unambitious, underpaid, middle-class children who stand for nothing and are resigned to their obscurity” (Mark Jones, 2008). Not, maybe, the best place to start.

Well, it means you’re born to people who are themselves cynical, hard-edged, no strangers to the phenomenon of the McJob (Coupland, Generation X) and disillusioned with the world. And what of your closer cousins, the Generation Y-ers? Depending on where you’re sitting, it gets worse – or better. For all you brand-owners, Generation Y-ers are a dream – conspicuous consumers, materially motivated and image-obsessed. However, as an employer, the flip side of those qualities is a workforce that is self-obsessed and self-absorbed, motivated only by their own personal desires and ambitions.

From this heady mix emerges Gen Z (1995–2000). Also known as Generation Now, Generation @ or Generation C: for click, for community and for content. So, in other words, the connected generation – permanently wired, hooked up, tuned in.

In another way, they’re a curiously disconnected, nomadic tribe: friendships are virtual, social networking doesn’t have to involve physically meeting another human being, and time and space are no longer the final frontiers - the tendrils of the web make a mockery of time zones and oceanic divides.

These children are growing up with entirely different frames of reference from those born just five or 10 years before them. Conceptions of time, of distance, of possibilities are radically altered for our Z-ers. We could look at them as Generation I: interactive, immediate, information-hungry.ButhowaboutIforinvolved?

It’s far too easy to imagine that the digital era is creating a generation of isolated youths, shut in their rooms, i-Pod plugged firmly into their ears, lost in a virtual world with no real connections.

But is that true? Let’s think for a moment about the real world they have been born into.

A world of terrorism – of fear, of fragmentation and of misunderstanding. A world of unsustainable conspicuous consumption. A world of boom and then, all too quickly, bust for the new economic super-powers. A world where the gap between developed and developing grows ever wider.

And while this could tempt them to shut down, to close themselves off from all the negativity and uncertainty, it’s quite simply impossible. Being perma-connected means you cannot escape information – be it good or bad.

And so how will this play forward?

Those born into Gen Z are facing a quicker erosion of childhood than any other generation before them. Gone is the childish innocence and the cushioning from the harsh realities of adulthood.

They are growing up in the face of global warming (when polled recently, a group of

American children’s biggest fear was a lack of clean water – bogeymen and the dark just don’t cut it anymore) of economic uncertainty, of parents whose large corporation employers have absolutely no qualms about making them redundant when profits are no longer going through the ceiling.

They are savvy, switched on and clued up, and are increasingly self-reliant: shaped both by their immediate environment – they are likely to have both parents in employment, with probably no more than one sibling and with a scattered, fragmented notion of family, so they have a much smaller support network to rely on – and by their wider surroundings – gone is the belief that if you work hard all your life, a job, pension and healthcare is assured.

So they know that whatever path they forge in life, they will be almost solely responsible for forging it. Which, in turn, is making them hyper-aware of the benefits of education and qualifications. This generation will be entering, stage right, the world of work just as exiting, stage left, is our increasingly ageing population. There will be a shortage of skills, of qualified employees and so the global labour market will be wide open to them – if they are properly equipped to enter it.

They will enter the world of education earlier than generations before them, and leave it later, with more qualifications in more niche areas than ever before. And let’s examine the kind of education they will be receiving. It will be one that is far more technical and interactive in its approach, but also one where the notion of getting a formal appraisal or marked reports just once every term is laughable. They will receive and expect continuous feedback and assessment – ways in which to build and improve their performance as they go.

So, what does all this mean for those who are shaping the employment market this generation will be entering in around 2013?

Firstly, they will expect choice. They will come to you from a position of strength – it will be an employees’ market for them. Just as their childhood and teenage years will have been marked by instantaneous access to a wide variety of stimuli (think the end of three subject specialisms at 16 – and the increase in the US or International Baccalaureate style examinations), they will not expect their jobs to limit them to just one activity or one narrow area of specialism. Choice will be a buzz word: right from how they structure their working day to how they define their career. Will employees of the future breakdown the conventional barriers of one specialist field? Will we still have marketing, finance and HR experts, or groups who are able to work ably and comfortably with multi-disciplinary skills?

They may well have shorter attention spans – not because of a decline in educational standards, simply because of a change in the

Written by Pippa Nordberg Illustration by Mulheres Barbadas

IT’S IMPOSSIBLE TO KEEP A SECRET FROM A GENERATION THAT CAN HACK INTO THE PENTAGON way they will learn. This will change the way work is approached – week long conferences?

Three hour-long video conferences? Forget it.

We will be shorter, snappier, more bite-sized in our approach (is that the distant sound of champagne corks popping?)

Geographic location won’t be a barrier to how teams are formed in the workplace. Our Z-ers will expect to work with the best mix of qualified peers for the most rewarding experience, regardless of where in the world they happen to be based. Employers will need to be much more flexible in terms of their approach: in how they structure their workforce and what they offer them.

They will neither demonstrate loyalty to, nor demand loyalty from, their employers. And so to hang on to the best talent, employers will have to find ways in which to maximise career development. A big part of this will be about offering the most comprehensive and advanced form of in-situ learning and improvement. Annual 360 degree reviews will be unimaginable.

Stimulation will also come in the form of fluidity and flexibility. If this is the generation that has grown up with boundless choice coupled with more of a social conscience, they

will not only want their employer organisations to demonstrate social responsibility, but they may well expect to be given opportunities both within and outside work to make a personal contribution: sabbaticals, weekly flexi-time, the structuring of teams to incorporate skill sharing, knowledge transfers and best practice learnings with not-for-profit organisations to name but a few.

And what will this mean they will come to expect from the brands they buy? Potentially, much the same. It would be an understatement to say that their relationship with brands will be much more interactive.

But what does this mean in real terms?

A much greater degree of transparency for one – hidden nasties and shady practices will rapidly become a thing of the past. Not only will it be impossible to keep these a secret from a generation that can hack into the Pentagon, but it will simply be an unimaginable way of acting for tomorrow’s consumers.

If we go back to the notion of involvement and community, they will want the brands they take into their lives to have a greater degree of

relevance and meaning to them – and they will want them to occupy a more holistic space in their worlds.

And if we think about our increasingly global citizens, will brands that have different offerings and manifestations based simply on geographic location become a thing of the past? Why would our consumers not expect brands to identify groups of like-minded individuals and offer them choices and products, as well as ways of connecting, wherever they are in the world?

You only have to look at the groups today’s Gen Z-ers are forming on networking sites such as Facebook to see this as a real possibility.

Was ‘Obama for President’ only joined by those with the right to vote in the US elections? Or by those from around the world who shared his ambitions and aspirations, regardless of practical considerations?

To sum up, our Generation Z-ers should be a positive force in the world, and in the workplace, but only if we can evolve to satisfy their needs and ambitions. We need to stop seeing them as isolated ‘yoof’, and start seeing them as involved, information-hungry, conscientious consumers – of both our brands and our businesses.

So, r u Z-rdy?

BORN TO PEOPLE WHO ARE CYNICAL, HARD-EDGED, AND DISILLUSIONED WITH THE WORLD

described as “insular, unambitious, underpaid, middle-class children who stand for nothing and are resigned to their obscurity” (Mark Jones, 2008). Not, maybe, the best place to start.

Well, it means you’re born to people who are themselves cynical, hard-edged, no strangers to the phenomenon of the McJob (Coupland, Generation X) and disillusioned with the world. And what of your closer cousins, the Generation Y-ers? Depending on where you’re sitting, it gets worse – or better. For all you brand-owners, Generation Y-ers are a dream – conspicuous consumers, materially motivated and image-obsessed. However, as an employer, the flip side of those qualities is a workforce that is self-obsessed and self-absorbed, motivated only by their own personal desires and ambitions.

From this heady mix emerges Gen Z (1995–2000). Also known as Generation Now, Generation @ or Generation C: for click, for community and for content. So, in other words, the connected generation – permanently wired, hooked up, tuned in.

In another way, they’re a curiously disconnected, nomadic tribe: friendships are virtual, social networking doesn’t have to involve physically meeting another human being, and time and space are no longer the final frontiers - the tendrils of the web make a mockery of time zones and oceanic divides.

These children are growing up with entirely different frames of reference from those born just five or 10 years before them. Conceptions of time, of distance, of possibilities are radically altered for our Z-ers. We could look at them as Generation I: interactive, immediate, information-hungry.ButhowaboutIforinvolved?

It’s far too easy to imagine that the digital era is creating a generation of isolated youths, shut in their rooms, i-Pod plugged firmly into their ears, lost in a virtual world with no real connections.

But is that true? Let’s think for a moment about the real world they have been born into.

A world of terrorism – of fear, of fragmentation and of misunderstanding. A world of unsustainable conspicuous consumption. A world of boom and then, all too quickly, bust for the new economic super-powers. A world where the gap between developed and developing grows ever wider.

And while this could tempt them to shut down, to close themselves off from all the negativity and uncertainty, it’s quite simply impossible. Being perma-connected means you cannot escape information – be it good or bad.

And so how will this play forward?

Those born into Gen Z are facing a quicker erosion of childhood than any other generation before them. Gone is the childish innocence and the cushioning from the harsh realities of adulthood.

They are growing up in the face of global warming (when polled recently, a group of

American children’s biggest fear was a lack of clean water – bogeymen and the dark just don’t cut it anymore) of economic uncertainty, of parents whose large corporation employers have absolutely no qualms about making them redundant when profits are no longer going through the ceiling.

They are savvy, switched on and clued up, and are increasingly self-reliant: shaped both by their immediate environment – they are likely to have both parents in employment, with probably no more than one sibling and with a scattered, fragmented notion of family, so they have a much smaller support network to rely on – and by their wider surroundings – gone is the belief that if you work hard all your life, a job, pension and healthcare is assured.

So they know that whatever path they forge in life, they will be almost solely responsible for forging it. Which, in turn, is making them hyper-aware of the benefits of education and qualifications. This generation will be entering, stage right, the world of work just as exiting, stage left, is our increasingly ageing population. There will be a shortage of skills, of qualified employees and so the global labour market will be wide open to them – if they are properly equipped to enter it.

They will enter the world of education earlier than generations before them, and leave it later, with more qualifications in more niche areas than ever before. And let’s examine the kind of education they will be receiving. It will be one that is far more technical and interactive in its approach, but also one where the notion of getting a formal appraisal or marked reports just once every term is laughable. They will receive and expect continuous feedback and assessment – ways in which to build and improve their performance as they go.

So, what does all this mean for those who are shaping the employment market this generation will be entering in around 2013?

Firstly, they will expect choice. They will come to you from a position of strength – it will be an employees’ market for them. Just as their childhood and teenage years will have been marked by instantaneous access to a wide variety of stimuli (think the end of three subject specialisms at 16 – and the increase in the US or International Baccalaureate style examinations), they will not expect their jobs to limit them to just one activity or one narrow area of specialism. Choice will be a buzz word: right from how they structure their working day to how they define their career. Will employees of the future breakdown the conventional barriers of one specialist field? Will we still have marketing, finance and HR experts, or groups who are able to work ably and comfortably with multi-disciplinary skills?

They may well have shorter attention spans – not because of a decline in educational standards, simply because of a change in the

Written by Pippa Nordberg Illustration by Mulheres Barbadas

IT’S IMPOSSIBLE TO KEEP A SECRET FROM A GENERATION THAT CAN HACK INTO THE PENTAGON way they will learn. This will change the way work is approached – week long conferences?

Three hour-long video conferences? Forget it.

We will be shorter, snappier, more bite-sized in our approach (is that the distant sound of champagne corks popping?)

Geographic location won’t be a barrier to how teams are formed in the workplace. Our Z-ers will expect to work with the best mix of qualified peers for the most rewarding experience, regardless of where in the world they happen to be based. Employers will need to be much more flexible in terms of their approach: in how they structure their workforce and what they offer them.

They will neither demonstrate loyalty to, nor demand loyalty from, their employers. And so to hang on to the best talent, employers will have to find ways in which to maximise career development. A big part of this will be about offering the most comprehensive and advanced form of in-situ learning and improvement. Annual 360 degree reviews will be unimaginable.

Stimulation will also come in the form of fluidity and flexibility. If this is the generation that has grown up with boundless choice coupled with more of a social conscience, they

will not only want their employer organisations to demonstrate social responsibility, but they may well expect to be given opportunities both within and outside work to make a personal contribution: sabbaticals, weekly flexi-time, the structuring of teams to incorporate skill sharing, knowledge transfers and best practice learnings with not-for-profit organisations to name but a few.

And what will this mean they will come to expect from the brands they buy? Potentially, much the same. It would be an understatement to say that their relationship with brands will be much more interactive.

But what does this mean in real terms?

A much greater degree of transparency for one – hidden nasties and shady practices will rapidly become a thing of the past. Not only will it be impossible to keep these a secret from a generation that can hack into the Pentagon, but it will simply be an unimaginable way of acting for tomorrow’s consumers.

If we go back to the notion of involvement and community, they will want the brands they take into their lives to have a greater degree of

relevance and meaning to them – and they will want them to occupy a more holistic space in their worlds.

And if we think about our increasingly global citizens, will brands that have different offerings and manifestations based simply on geographic location become a thing of the past? Why would our consumers not expect brands to identify groups of like-minded individuals and offer them choices and products, as well as ways of connecting, wherever they are in the world?

You only have to look at the groups today’s Gen Z-ers are forming on networking sites such as Facebook to see this as a real possibility.

Was ‘Obama for President’ only joined by those with the right to vote in the US elections? Or by those from around the world who shared his ambitions and aspirations, regardless of practical considerations?

To sum up, our Generation Z-ers should be a positive force in the world, and in the workplace, but only if we can evolve to satisfy their needs and ambitions. We need to stop seeing them as isolated ‘yoof’, and start seeing them as involved, information-hungry, conscientious consumers – of both our brands and our businesses.

So, r u Z-rdy?

INSPIRATION

INSPIRATION

FOOD FOR THOUGHT

Some of the best brand developments are coming from Britain’s farmers

It’s said that inspiration can come from anywhere, but recently Radio 4’s Farming Today unveiled some inspiring examples of new entrepreneurialism. But these aren’t callow youths proffering social networking sites or a new form of eco-travel, but good old British farmers and fishermen who are finding fresh profit potential in chaotic, credit-crunched times. In the words of the BBC Food Programme’s Sheila Dillon: “They are a model for the future.”

So, if you’re looking for ‘moo’ business inspiration (apologies), look no further than the fields and farms of Britain…

Adam’s Fish & Chips on the Isles of Scilly sell only lobster and pollack fished in local waters, complemented by chips made from potatoes fertilized with Scilly seaweed – a deliciously winning formula

38

Dragon

Made with love by Mey Selections, whose ingredients come from within 100 miles of the Castle of Mey

that is both plentiful and renewable.

Taymill Farm Shop’s team handmake their own ice creams and sorbets from Kentish soft fruits and locally-produced milk and now boast 40 amazing “natural and dreamily indulgent” flavours which are already sold in London’s top hotels and food stores.

Mey Selections sources all its major ingredients from within 100 miles of the Castle of Mey, as part of an initiative to help keep local farms sustainable.

And finally, The Merchant Farmer has blazed a trail in the market by cultivating fruits, seeds and spices to create sumptuous fruit chutneys and a fiery range of mustards with inspiring names like Wealden Hop, Hot Blonde and French Ooh La La. Tasty propositions indeed.

Dragon

39

INSPIRATION

INSPIRATION

FOOD FOR THOUGHT

Some of the best brand developments are coming from Britain’s farmers

It’s said that inspiration can come from anywhere, but recently Radio 4’s Farming Today unveiled some inspiring examples of new entrepreneurialism. But these aren’t callow youths proffering social networking sites or a new form of eco-travel, but good old British farmers and fishermen who are finding fresh profit potential in chaotic, credit-crunched times. In the words of the BBC Food Programme’s Sheila Dillon: “They are a model for the future.”

So, if you’re looking for ‘moo’ business inspiration (apologies), look no further than the fields and farms of Britain…

Adam’s Fish & Chips on the Isles of Scilly sell only lobster and pollack fished in local waters, complemented by chips made from potatoes fertilized with Scilly seaweed – a deliciously winning formula

38

Dragon

Made with love by Mey Selections, whose ingredients come from within 100 miles of the Castle of Mey

that is both plentiful and renewable.

Taymill Farm Shop’s team handmake their own ice creams and sorbets from Kentish soft fruits and locally-produced milk and now boast 40 amazing “natural and dreamily indulgent” flavours which are already sold in London’s top hotels and food stores.

Mey Selections sources all its major ingredients from within 100 miles of the Castle of Mey, as part of an initiative to help keep local farms sustainable.

And finally, The Merchant Farmer has blazed a trail in the market by cultivating fruits, seeds and spices to create sumptuous fruit chutneys and a fiery range of mustards with inspiring names like Wealden Hop, Hot Blonde and French Ooh La La. Tasty propositions indeed.

Dragon

39

cool INSPIRATION

INSPIRATION

The perfect ten

Hot ‘n’ happening, hip ‘n’ here, or in other words...

5

7

5

4

6

6. BAGS ‘N’ RAGS OF STYLE With this seat you’ll be sitting comfortably on 15 bags of rags but also have the option to pander to your eco-conscience by recycling your own discarded clothes within the design. www.droog.com

1. GET MORE BUZZ FOR YOUR HONEY Delight in delicious honey then plant a seedling in the jar and help attract and sustain the UK honey bee. www.thepartners.co.uk

1

2. TAKE A WALK ON THE REAL SIDE Soundwalk.com is for people who don’t normally ‘do’ audio tours, allowing them to enjoy the sights and stories from the streets from the mouths of the neighbours who live there. Gritty and real.

2

40

Dragon

3. PSYCHOBABBLE OR CYCLEBUBBLES? Here’s a way to be ‘green’ as you ride. A simple bubble blowing mechanism attached to the back wheel disperses seeds within bubbles that then scatters fresh green life about the city.

8. PALATE PLEASING PARTNERSHIPS If salt & vinegar is quite frankly dull, then Foodpairing has the answer, offering taste-bud-tingling ideas of ways to pair everyday foods and raise your culinary game. www.foodpairing.be

4. MULTI-STOREY CHILLING FOR THE FLATSHARE GENERATION Could this be an end to fridge raiding and food badging? The Electrolux Flat Share fridge packs four fridges into the space of one. Genius. www.electrolux.co.uk

9. BUT WHO DO YOU REALLY THINK YOU ARE? The National Geographic Society’s ‘Genographic Project’ invites people to take part in a huge exploration of our collective origins - find out who you really are and where you come from at www.nationalgeographic.com/genographic

5. WANT TO REKINDLE TRANSATLANTIC FRIENDSHIPS? Then let’s lobby for a return of the Telectroscope - an optical device that let Londoners see through the earth to New York. www.tiscali.co.uk/telectroscope

Photo: Gerard van Hees

3

7. A SNAP AT THE PRICE The Blackbird, Fly Camera is a limited edition reflex camera that shoots square images on smaller 35mm film. Cool retro and cheaper to develop prints.

10. BECOME A WORK OF ART Fancy creating unique art with your own DNA? Simply send off the supplied swab and My DNA will do the rest for you. www.my-dna.com

8

9 10

Dragon

41

cool INSPIRATION

INSPIRATION

The perfect ten

Hot ‘n’ happening, hip ‘n’ here, or in other words...

5

7

5

4

6

6. BAGS ‘N’ RAGS OF STYLE With this seat you’ll be sitting comfortably on 15 bags of rags but also have the option to pander to your eco-conscience by recycling your own discarded clothes within the design. www.droog.com

1. GET MORE BUZZ FOR YOUR HONEY Delight in delicious honey then plant a seedling in the jar and help attract and sustain the UK honey bee. www.thepartners.co.uk

1

2. TAKE A WALK ON THE REAL SIDE Soundwalk.com is for people who don’t normally ‘do’ audio tours, allowing them to enjoy the sights and stories from the streets from the mouths of the neighbours who live there. Gritty and real.

2

40

Dragon

3. PSYCHOBABBLE OR CYCLEBUBBLES? Here’s a way to be ‘green’ as you ride. A simple bubble blowing mechanism attached to the back wheel disperses seeds within bubbles that then scatters fresh green life about the city.

8. PALATE PLEASING PARTNERSHIPS If salt & vinegar is quite frankly dull, then Foodpairing has the answer, offering taste-bud-tingling ideas of ways to pair everyday foods and raise your culinary game. www.foodpairing.be

4. MULTI-STOREY CHILLING FOR THE FLATSHARE GENERATION Could this be an end to fridge raiding and food badging? The Electrolux Flat Share fridge packs four fridges into the space of one. Genius. www.electrolux.co.uk

9. BUT WHO DO YOU REALLY THINK YOU ARE? The National Geographic Society’s ‘Genographic Project’ invites people to take part in a huge exploration of our collective origins - find out who you really are and where you come from at www.nationalgeographic.com/genographic

5. WANT TO REKINDLE TRANSATLANTIC FRIENDSHIPS? Then let’s lobby for a return of the Telectroscope - an optical device that let Londoners see through the earth to New York. www.tiscali.co.uk/telectroscope

Photo: Gerard van Hees

3

7. A SNAP AT THE PRICE The Blackbird, Fly Camera is a limited edition reflex camera that shoots square images on smaller 35mm film. Cool retro and cheaper to develop prints.

10. BECOME A WORK OF ART Fancy creating unique art with your own DNA? Simply send off the supplied swab and My DNA will do the rest for you. www.my-dna.com

8

9 10

Dragon

41

TO BE CONTINUED…

INSPIRATION

Look what we found!

The brands that are rocking the Dragon team’s world 1

2

3

Amy Cuthbert, receptionist

Tori Brownlow, designer

Michail Kowal, senior designer

ifeelnyc.com goes wittily beyond the ordinary travel website. It gives you recommendations for what to do and see in New York, depending on your mood: choose from energetic, romantic, hungover, broke and more.

T2 is an Australian artisan tea company. They’ve brought the ancient art of tea up-to-date with bold packaging coupled with amazing tea knowledge. www.t2tea.com.au

10 Cane Rum is a great product. Aesthetically its design is arresting. It takes the traditional category cues, throws them up in the air and puts them back together in an unexpected and dynamic way. www.10cane.com

4

5

Dragon

Call us

6

Art Director Christie Ferdinando Managing Editor Kerry O’Connor

Mark Goldsmith, senior designer

Attie Rees, account director

Joe Hale, account director

The ‘Last FM’ website links to your iTunes to synchronize with your most listened to tracks and recommends songs in the genre. You can also see when and where your favourite bands are playing. www.last.fm

Brand Tags is a curious website experiment on brand perception. You type in what you associate with the brand, the site keeps a record and builds up a profile of all the associations. www.brandtags.net/browse.php

Dots Gloves are knit gloves with metal dots on the fingertips that won’t scratch iPhones, iPods or other touch-screen phones or devices. They even look quite cool too. www.dotsgloves.com

7

8

9

Contributing Writers David Beare, Rachel Bevans, Deborah Carter, Mei Cheong, Chris Cleaver, Nina Cooper, Joe Hale, Claire Nuttall, Marcell Redpath, Chris Sherwin and Kate Waddell Photographer Ben Morris Illustrators Andrew Rae, James Joyce and Mulheres Barbadas Creative Director Keshi Bouri Repro and Printing Printed by Boss Print on CarbonNeutral™ Revive Silk 75 (made from 75% Recycled Fibre) paper, using vegetable based inks and biodegradable Cellogreen® Laminate. This is fully recyclable.

42

Clare Simpson, senior consultant

Saskia Frewer, client service director

Ulrik Horten, account manager

Spiezia cosmetics have gone from cottage industry to a growing international brand who live their philosophy, using their herbs as part of palliative care in a cancer hospice. www.spieziaorganics.com

The Netherlands’ Le Clochard project lets you help the homeless as you sleep, by buying duvet covers with a cardboard box design - profits go to homeless charities. www.le-clochard.com

For when the marathon training is just too hard to bear, AudioFuel offers exactly what the name suggests – music to match your stride and keep you going. www.audiofuel.co.uk

Dragon

As you can see we have some interesting thoughts on brands; what works, what doesn’t and what should never have been tried in the first place. If you do have a branding challenge that you’d like to discuss or if you’d like us to explore a new issue altogether, give us a call or send us an email.

We’ll give you a fresh perspective, challenge your thinking and probably make you laugh as well.

Dragon 1 Craven Hill, London, W2 3EN T F E @

+44 (0)20 7262 4488 +44 (0)20 7262 6406 dragonfly@dragonbrands.com www.dragonbrands.com

Dragon Rouge Group Dubai Hamburg London New York Paris Warsaw

43

TO BE CONTINUED…

INSPIRATION

Look what we found!

The brands that are rocking the Dragon team’s world 1

2

3

Amy Cuthbert, receptionist

Tori Brownlow, designer

Michail Kowal, senior designer

ifeelnyc.com goes wittily beyond the ordinary travel website. It gives you recommendations for what to do and see in New York, depending on your mood: choose from energetic, romantic, hungover, broke and more.

T2 is an Australian artisan tea company. They’ve brought the ancient art of tea up-to-date with bold packaging coupled with amazing tea knowledge. www.t2tea.com.au

10 Cane Rum is a great product. Aesthetically its design is arresting. It takes the traditional category cues, throws them up in the air and puts them back together in an unexpected and dynamic way. www.10cane.com

4

5

Dragon

Call us

6

Art Director Christie Ferdinando Managing Editor Kerry O’Connor

Mark Goldsmith, senior designer

Attie Rees, account director

Joe Hale, account director

The ‘Last FM’ website links to your iTunes to synchronize with your most listened to tracks and recommends songs in the genre. You can also see when and where your favourite bands are playing. www.last.fm

Brand Tags is a curious website experiment on brand perception. You type in what you associate with the brand, the site keeps a record and builds up a profile of all the associations. www.brandtags.net/browse.php

Dots Gloves are knit gloves with metal dots on the fingertips that won’t scratch iPhones, iPods or other touch-screen phones or devices. They even look quite cool too. www.dotsgloves.com

7

8

9

Contributing Writers David Beare, Rachel Bevans, Deborah Carter, Mei Cheong, Chris Cleaver, Nina Cooper, Joe Hale, Claire Nuttall, Marcell Redpath, Chris Sherwin and Kate Waddell Photographer Ben Morris Illustrators Andrew Rae, James Joyce and Mulheres Barbadas Creative Director Keshi Bouri Repro and Printing Printed by Boss Print on CarbonNeutral™ Revive Silk 75 (made from 75% Recycled Fibre) paper, using vegetable based inks and biodegradable Cellogreen® Laminate. This is fully recyclable.

42

Clare Simpson, senior consultant

Saskia Frewer, client service director

Ulrik Horten, account manager

Spiezia cosmetics have gone from cottage industry to a growing international brand who live their philosophy, using their herbs as part of palliative care in a cancer hospice. www.spieziaorganics.com

The Netherlands’ Le Clochard project lets you help the homeless as you sleep, by buying duvet covers with a cardboard box design - profits go to homeless charities. www.le-clochard.com

For when the marathon training is just too hard to bear, AudioFuel offers exactly what the name suggests – music to match your stride and keep you going. www.audiofuel.co.uk

Dragon

As you can see we have some interesting thoughts on brands; what works, what doesn’t and what should never have been tried in the first place. If you do have a branding challenge that you’d like to discuss or if you’d like us to explore a new issue altogether, give us a call or send us an email.

We’ll give you a fresh perspective, challenge your thinking and probably make you laugh as well.

Dragon 1 Craven Hill, London, W2 3EN T F E @

+44 (0)20 7262 4488 +44 (0)20 7262 6406 dragonfly@dragonbrands.com www.dragonbrands.com

Dragon Rouge Group Dubai Hamburg London New York Paris Warsaw

43

www.dragonbrands.com

Issue2 A fresh look at the world from the leading independent brand agency group

+ low carbon brands + the Big Idea is dead + creative research + Rob Candelino + phoenix brands

Necessity: the mother of invention Open up to a brave new world

In the fight for audience attention the power to entertain will be king

Smart ideas will get us out of recession

www.dragonbrands.com

Dragon