Consumer & Media Trends 2017

Consumer & Media Trends 2017

Core Strategy Division

Introduction

Ireland finds itself caught between two seismic global changes.

Brexit and the Trump presidency will progress, but their impact is impossible to predict. We’re being hit by two storms: one economic, one political.

The economic fallout from the UK leaving the EU and the US’s dealings with Europe and the world are impossible to predict.

Introduction

We can expect to see shifts in consumer action.

Alongside this, the dynamics that gave birth to Brexit and Trump sit against a backdrop of mistrust in traditional organisations.

The outcomes of these are uncertain, and so uncertainty will be the theme of 2017.

Yet we are already seeing a vibrancy and fervour as we begin to question and seek out alternatives.

We think there are three major trends worth keeping an eye on in 2017:

• Noise-cancelling consumers• The rise of direct selling• The evolution of money

1.

Noise-cancelling consumers


No one needs your brand, unless your brand can fulfill a need, a want, or a desire. This is the defining reality of 21st century marketing.

A Core Media tracking study suggests that the average Irish person is exposed around 370 ads a day, and that figure is rising. Amid so much noise, it is becoming increasingly difficult for advertising to cut through.


This presents advertisers with a choice. They can buy their way through the din, or stand-out by meeting a need, a want or a desire.

That need can be met with communications or with product development, but it must be based on genuine consumer insight, and must be delivered in an emotionally powerful way.

We have identified three ways brands can cut through the clutter.

• Creative technology• New occasions• Culture as a channel

Creative technology

In 2013, their CEO Jeff Bezos announced that Amazon Prime Air would deliver parcels directly to customers by drone within 30 minutes.

While the reality is still years away, the initiative helped Amazon cut through the clutter by talking about their cutting edge technology, in turn, generated mountains of earned media and creating a new, compelling way to talk about the brand as the best way to shop.

New occasions

Danish brand, Marabou, were experiencing flagging sales due to changing consumer attitudes and a new sugar tax. They realised people needed an occasion to justify eating chocolate. In response, they created new packaging imprinted with 6,000 different ways to say sorry, achieving huge social media engagement. The campaign resulted in a 24% uplift in sales of Marabou.

Culture as a channel

In 2009, healthier attitudes to food meant Snickers was losing market share and they needed to pursue brand ‘fame’ as a way out of this. Built on the insight, ‘you’re not you when you’re hungry’, they built a creative platform to build powerful cultural resonance. By creating comedic scenes with much-loved stars of yesteryear, they tapped into the cultural zeitgeist, achieving ‘cultural equity’ and sales growth.

So what?Cutting through clutter means meeting consumers’ needs & wants in unexpected ways

This means creating your own ‘cultural real-estate’ that resonates with consumers with the deliberate intent of becoming a meaningful part of their lives and social relationships.

Check out our Slideshare for more.

2.

The rise of direct-selling


How we buy our goods is evolving. In 2017, will see more direct to consumer selling and delivery. Three big changes will drive this.

Firstly, there is huge growth in the digital marketplace. People can browse, evaluate and buy via computer, phone, and even TV. They no longer need a store as a shop window for goods.


Secondly, growth in the development and flexibility of the delivery sector means companies like Amazon, Parcel Motel, An Post are making it easier for people to receive delivered goods more frequently.

Thirdly, flexible working hours and an increased ability to work from home makes delivery more practical for grocery shopping. It also facilitates newer subscription models for regularly used goods.

We look at some brands doing this exceptionally well.

Warby Parker

Disruptive eyewear brand provides a mail-order opticians offering affordable, fashionable prescription eyewear. Their insight was in understanding the barriers to people buying glasses online. By posting out five free pairs of glasses to try on, paying for eye testing, and creating a simple and attractive purchase experience, they proved opticians don’t have to be brick and mortar.

Bonobos

This male apparel retailer, began life entirely online, but they realised their digital-native brand needed a physical presence. Bonobos has created a network of ‘Guideshops’ where customers can try on Bonobos’ products, get the right fit, and experience the brand, but they must still order online. Bonobos is blurring online and offline, and redefining what a shop is.

MyMilkman.ie

Through MyMilkman.ie, Glanbia applied the Dollar Shave Club philosophy to the dairy category. Effectively your traditional milkman re-booted, MyMilkman.ie provides a simple platform to enable people to manage their milk delivery service from any device. Like Dollar Shave Club, Glanbia bypasses their competition by entirely owning their sales channel, in turn removing the need for consumers to consider buying any other milk brand.

So what?Adopting direct-selling early is becoming a powerful strategic advantageRetail spaces are evolving and blurring. Whether at home, online or in a retail space, it is becoming more important to provide different ways to pay.

This can be a tactical or strategic way to block or bypass competitors. More importantly, it is a way to appeal to Millennials and Generation-Z who increasingly expect brands to understand their needs and to provide them with unique, meaningful and tangible solutions.


3.

The evolution of money accelerates

The evolution of money

In 2017, two major milestones will be reached.

With the launch of Android Pay late last year and Apple Pay this March, 2017 will be Ireland’s year of the mobile wallet.

On top of this, the eldest members of Generation-Z will turn 21, marking the coming of age of Ireland’s newest and most enigmatic generation.

The evolution of money

While Millennials have been the focus of marketers for some time, Generation-Z are the true digital natives and far more open to doing things differently than their predecessors.

And marketers get used to the idea of the omni-channel shopper, Gen-Z expect to to move seamlessly across online and offline environments and payment channels.

Engaging new audiences & occasions

We will start seeing a merging of media channels and payment channels as interactions between consumers and brands become even richer.

Starbuck’s Mobile Wallet

Starbucks’ mobile wallet integrates the ability to pay with a smartphone with instantly redeemable MyStarbucks Rewards and extra features and benefits like pre-ordering coffees for collection. By creating an owned payment channel and virtual currency, the Starbucks’ mobile wallet has proved to be an incredibly powerful branding tool and new kind of payment/media channel.

McDonald’s Coinoffers

Blending virtual currencies with gamification techniques is becoming important way to connect with younger audiences. In Denmark, McDonald’s created its own gamified currency, Coins, which young, cash-strapped customers would earn by competing against friends and then redeem at McDonald’s outlets, increasing overall customer frequency and spend among this hard-to-reach audience.

Amazon Dash

It has been estimated that there will be 21 billion connected devices worldwide by 2025. With the advance of the so-called ‘internet of things’, it seems technology can now convert anything into a payment trigger. Connected to the internet, Amazon’s Dash button lets consumers order shopping items literally at the push of a button. Apart from providing utility for consumers, these new payment mechanisms provide brands with a new kind of sales channel.

Nike+ Bid Your Sweat

Taking this a step further, some brands are combining both virtual currencies and gamification techniques. With fitness and health tracking a rapidly growing trend – European sales of Fitbit devices are growing 46% annually – in Mexico, Nike+ let fans use their health app data – their ‘sweat’ – as currency to bid on exclusive Nike products, and becoming a kind of media channel driving brand engagement.

So what?Marketers will need to start preparing now.

Irish consumers have proven themselves to be rapid adopters of new technologies in the past – as with Facebook and contactless cards, adoption can be slow at first, but takes off rapidly once a tipping point is reached.

2017 will be the year marketers and retailers must start looking seriously at Generation-Z and this hidden tipping point or risk losing out.


Interested in learning more?

Contact us.

Thomas Geoghegan

Shane Doyle

Andy Pierce

16 Sir John Rogerson's QuayDublin 2, Ireland

Tel : +353 1 649 6316

Email: [email protected]

Consumer & Media Trends 2017

Marketing

Transcript of Consumer & Media Trends 2017