Navigating the New Marketsphere

Eileen Campbell, Chief Executive Officer, Millward Brown

Jeben Berg, Marketing Programs Creative Innovationist, YouTube

Reinaldo Padua, Assistant Vice President Hispanic Marketing, Coca-Cola

Donna Sturgess, Vice President, Innovation, GlaxoSmithKline Consumer Healthcare

Gordon Wyner, Executive Vice President, Millward Brown

From Segmentation To Consumer Connection

Session Agenda

– Introductions– Snapshot of

emerging consumers:

• Boomers• Millennials• Hispanics

• 40 minutes• 30 minutes

• Q&A • Market View• Overview

• 20 minutes

– Panel moderation with Audience Q&A

Reinaldo Padua, Assistant Vice President Hispanic Marketing, Coca-Cola

Donna Sturgess, Vice President, Innovation, GlaxoSmithKline Consumer Healthcare

Jeben Berg, Marketing Programs Creative Innovationist, YouTube

Eileen Campbell, Chief Executive Officer, Millward Brown

Introductions

On the table…

• Consumer Opportunities – size, spending power, influence– Boomers (20%)

– Hispanics (15%)

– Millennials (20%)

• Challenges the practice of market segmentation– Proliferation of everything

– Good theory, hard to practice

• Marketing resource optimization (more now than ever)– Communications

– Product innovation

– Sales channels

– Organization

• A New Year, New Thinking, New Rules

Boomers: Born 1946-1964

• Redefining retirement • Ageism in advertising• Workforce 'Brain drain'• Silver technology• Aging in place

• Optimism• Self-fulfillment• Inner-directedness• Control

• 77 Million people (25%)• Control more than 70% of our nation's wealth• Estimated spending power of more than $2 trillion• 27% still have children in the home• Less a quarter are retired

• Snapshot • Key Themes

Thought Starters

We wanted to change the world.

• Longevity • Experience-seeking• Civic-mindedness• Idealism

8,630,000 results for boomers

Millennials: Born 1980's & 1990's

• Digital Kids: Smartest

or Not? • Money-dilemma• Boomerang effect• The next "civic"

generation

• Special / Sheltered• Confident• Pressured • Multitasking as a way of life• Optimism

• 79 Million• $200 Billion spending power & growing• 88%: estimated % of household purchases young

adults influence• 15 Hours: Est. time per day spent with media and

communication technology• 45% refer to themselves as non-white

• Snapshot • Key Themes

I want to be able to do

things now. I don't want to

wait.

Sources include: Neil Howe and William Strauss, Outlaw Consulting

• High-expectations• Instant gratification• Spontaneity• Individuality• Civic-minded

526,000 results for millennials

Thought Starters

Hispanics

• Acculturation vs.

Assimilation • English vs. Spanish• New migration• Still an overlooked

market?

• Cultural cohesion • Collectivism• Strong familial ties• High birth rates

• Fastest growing population in the U.S., currently 46

million people• Total Hispanic GDP: $1 Trillion• Will make up 29% of the US population by 2050• 26 years old: Median age of Hispanics• 82% of US Hispanics speak 'some' Spanish at

home

• Snapshot • Key Themes

I don't think I am replacing

my culture, but just learning a new culture.

5,160,000 results for hispanics

• Mobility• Virtuous• Ambitious

Thought Starters

Focus– Explore the

landscape– Classify – Balance the

depth versus breadth

– Find the common ground

Anticipate– What's

Changing?– What's

growing or declining?

– How fast?– What's the

future opportunity?

Expand– Bring back the

human element

– Address the rational and emotional

– Communicate via 5 Senses

Engage – Relevant

content– Relevant

media, touchpoints, and timing

– Enable interactive experiences

Segmentation Connection

From Segmentation To Consumer Connection

Focus– Explore the

landscape– Classify – Balance the

depth versus breadth

– Find the common ground

Anticipate– What's

Changing?– What's

growing or declining?

– How fast?

Expand– Bring back the

human element

– Rational and emotional

– 5 Senses

Engage – Relevant

content– Relevant

media, touchpoints, and timing

– Enable interactive experiences

From Segmentation To Consumer Connection

Segmentation Connection

Focus – Boomer 'Outlook' Segmentation

• Developed by Focalyst, Millward Brown's specialty Boomer practice in October 2008

• Investigated Boomers' mindsets, circumstances, and key trigger events to understand how their response to changing times

• Boomers fell into 3 "outlook" camps

Yesterday Today Tomorrow

Life was better in the 1950's.

We live in exciting times.

Tomorrow will be better than

today.

25% 30% 45%

From Segmentation To Consumer Connection

Focus– Explore the

landscape– Classify – Balance the

depth versus breadth

– Find the common ground

Anticipate– What's

Changing?– What's

growing or declining?

– How fast?

Expand– Bring back the

human element

– Rational and emotional

– 5 Senses

Engage – Relevant

content– Relevant

media, touchpoints, and timing

– Enable interactive experiences

Segmentation Connection

Prioritize• “Dimenzionalize” the Opportunity• Segment the Market• Define Priorities

Reach and Connect• Have the Right Message and the

Right Product, In the Right Place

3 Track Success• Is this making a difference?

2

1

Considerations When Entering Hispanic Market

1PRIORITIZE

“Dimensionalize” the Opportunity

2005 – USM$

DIMENSIONALIZE

Total US Hispanic GDP is about 1 Trillion US$

QUANTIFY

“MULTICULTURAL VIDEO”

1PRIORITIZE

Example: US Multicultural Opportunity

“Dimensionalize” the Opportunity

Segment by Relevant Purchase Predictors

OCCASION BASED SEGMENTATION

One Consumer, Many Products

CONSUMER BASED SEGMENTATION

One Consumer, One Product

1PRIORITIZE

Start Small to Build Strong Foundations

1PRIORITIZE

MARKETS5

MARKETS9

MARKETS15

Start Small to Build Strong Foundations

1PRIORITIZE

Prioritize• “Dimenzionalize” the Opportunity• Segment the Market• Define Priorities

Reach and Connect• Have the Right Message and the

Right Product, In the Right Place

3 Track Success• Is this making a difference?

2

1

Considerations When Entering Hispanic Market

Identify Tensions and Relieve Them

Example: Novelas Program

2REACH & CONNECT

Controls 60% of the volume

IMPORTANCE

Her days are challenging. . . but rewarding

TENSION

Novelas are her escape

CONNECTION

MOM: The Big Picture

2REACH & CONNECT

Prioritize• “Dimenzionalize” the Opportunity• Segment the Market• Define Priorities

Reach and Connect• Have the Right Message and the

Right Product, In the Right Place

3 Track Success• Is this making a difference?

2

1

Considerations When Entering Hispanic Market

3

Triangulate Your Sources of Data

TRACK SUCCESS

A Final Thought About 2009Crises Are Great Times to Build Brands

• Memorable Emotional Situations

• Less Clutter On Media

• Opportunity To Connect

Focus– Explore the

landscape– Classify– Balance the

depth versus breadth

– Find the common ground

Anticipate– What's

Changing?– What's

growing or declining?

– How fast?

Expand– Bring back the

human element

– Rational and emotional

– 5 Senses

Engage – Relevant

content– Relevant

media, touchpoints, and timing

– Enable interactive experiences

From Segmentation To Consumer Connection

Segmentation Connection

Focus– Explore the

landscape– Classify– Balance the

depth versus breadth

– Find the common ground

Anticipate– What's

Changing?– What's

growing or declining?

– How fast?

Expand– Bring back the

human element

– Rational and emotional

– 5 Senses

Engage – Relevant

content– Relevant

media, touchpoints, and timing

– Enable interactive experiences

From Segmentation To Consumer Connection

Segmentation Connection

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