In the highly challenging economy in which we compete, growth (and even survival) depends on developing a systematic, organizational capability and expert resources to identify growth initiatives and opportunities, and to capitalize on these, ahead of your competitors. It is important to take action to not only get through this economy, but thrive as well.
1. Have a clear strategy. A marketing plan establishes a solid foundation for your sales and marketing planning in this challenging economy, and helps maximize your resources. It validates your target market and competition, clarifies your sales and marketing plans for staff and executives, and ensures your resources and budget are appropriate for your planned marketing activities. Treat growth as a discipline across the entire organization. Companies that treat growth as the responsibility solely of the business development group rarely create meaningful growth. Create Key Performance Indices (KPIs), financial and non-financial metrics used to help your organization define and measure progress toward organizational goals - to assess the present state of the business and to assist in prescribing a course of action. Ensure strategies, budgets, and sales are realistic, and create and implement the resources for all initiatives (consider outsourcing, see below). All sales and marketing efforts, whether they are strategic or tactical, will become much more efficient and effective.
2. Cut your operating costs. Look at every line item, and determine where you can cut costs. Unnecessary infrastructure, no control over business assets, over expansion, hiring "warm bodies," Sacrificing short-term cash flow for long-term growth, are all classic mistakes in tough times. Look at your business as an outsider. What overhead can you reduce, that will allow lower cost and/or improved performance.
3. Outsource. Consider outsourcing areas that are not your businesses core competencies. Let the experts do the work, people potentially highly qualified in specific areas. They will likely be better, faster, more cost-effective, and will be directly accountable to you, day-to-day. Manage your vendors closely with a few effective people. Incent your outsource vendors by creating performance milestones. Manage by performance metrics.
4. Adopt digital & interactive media as predominant mediums for reaching your customers. Mobile and internet will thrive through this economic downturn. They are now mainstream, and easier to target your preferred customers. They are likely cheaper, faster, and will give you almost immediate results. You can measure results in real time, and adjust on-the-fly. No print costs. No postage fees. No delay. Immediate feedback. Portable and wireless. Multiple offers to different target audiences. Marketers are cutting their traditional media budgets and investing more into digital. A whopping 62 percent of marketers said they would be pulling dollars from traditional and placing them in digital. Traditional marketing (print, radio, TV, magazines, billboard, trade show) is still relevant in many areas, and still works. An integrated campaign is still best, if you have the budget.
5. Quality is king. Word-of-mouth is queen. Customer satisfaction Reigns. The lowest cost marketing expense, and the highest return on marketing investment (ROMI) is returning satisfied customers. In a sea of market place customer satisfaction mediocrity, satisfied customers will talk up your products and services, and create positive word-of-mouth to many non-customers, creating new clients. Alternatively, if you are not providing high perceived customer value, you will struggle through down times, and may not survive. Look at your competitors. Test their quality. Make sure you exceed it, especially in customer facing situations. High quality services & deliverables. Employee training, motivation, employee communication, and efficient processes and methodologies throughout your organization are key to customer satisfaction, and repeat business.
6. Meet your “new” customers. Know changes in customer spending profiles. Ensure you study carefully and clearly understand how your target audience segments spending may vary in a tough economy. “Know” who your most profitable customers are. Go after them. Though nearly all consumers (B2B and B2C) are facing economic uncertainty, their responses to economic difficulties differ - but not necessarily along conventional market or demographic lines. Firms must fully embrace the "empowered consumer" and give them the tools to harness their opinions—good and bad. Behavior and attitude will vary according to multiple factors, which may shift regularly based on their perceived needs. Clearly identify Potential Rebounders (currently 33% of consumers) - those likely to loosen up on spending sooner; Status Quo (48%) - those not likely to change from current behavior; and Digging In (19%) - those tightening spending and retreating further. Look to see “how” they are making their decisions, not just who is spending, and who is not, and adjust your growth strategies, messaging, and offers- based on your clients “real” needs. Smart organizations are highly customer-centric and marketing functions are interwoven throughout their operations.
7. Encourage word-of-mouth. This is a large paradigm change for many companies, who have traditionally tried to have a carefully orchestrated forward-facing “image.” The new web has changed all that, and customers can now determine your quality, performance, and value, in a few minutes of online searching on forums, blogs, ratings, and press. “Encourage” dialogue with your target audience. Digital users research before they buy. They ask their friends, and they search exhaustively online. Interact with your customers openly in nothing but a forthright, honest manner. Think about user-contributed product reviews, and the ability to share reviews and comments on your product and services with friends or to anyone interested. Use web 2.0 tools to allow them to engage and participate in your business (surveys, wikis, blogs, content syndication, press releases, and depending on your target audience, sites such as YouTube, MySpace, Facebook, Youmeo, Twitter and Flickr). You will benefit from increased real-time knowledge about how your customers perceive your organization, and you will “engage” your audience in thinking and talking about you, leading to dialogue, increased brand awareness, lead generation, and create sales that your competitors won’t.
8. Incorporate Web 2.0. Think individual relevance. The new 2.0 Internet with its social networking (Blogs, Podcasts, Vidcasts, MySpace, Twitter, Wikipedia, Facebook, LinkedIn) and new media platforms both invite and demand that its participants be engaged, and involved, and active. Think experiential. It provides new technologies and web designs that enhance creativity, secure information sharing, collaboration and functionality of the web. To your customers, Web 2.0 is about relevance, and direct value, what’s in it for me? Old media, like TV especially, just asks that we passively stand around and watch. The more valuable you are with fresh new content and tools that directly benefits your target market, the more engaged and loyal they will be as customers to your brand.
9. Build your Brand. In tough times top-performing companies make absolutely certain that brand is a central organizing principle. Your brand is the platform on which your customers make their buying decision Your brand is the "relationship" between your product and/or service and your consumer. Any time a consumer touches your brand via any medium whether web, computer interface, phone, interpersonal, print, news, word-of-mouth, sales call, or otherwise, – it must consistently and credibly communicate the promises and values your product and/or service can deliver. It’s no coincidence that strong brands, generally are the market leaders, who have a better time in tough economic times. Companies need to fully understand what drives demand on a second-by-second basis, and ensure their brand is closely aligned in all initiatives.
10. Best-in-class creative & messaging. Be the best at messaging and creative in your competitive set. It gives your organization instant credibility. Differentiates from your competitors. Provides clarity, and clear value proposition, based on their real needs. Will also shorten your sales cycle, allow you to recruit better employees and retain them (they generally go to the perceived better companies), and will motivate both customers and employees.
11. Mine your customer Database. Make sure your have a detailed database and use it regularly to connect with your target audience through an effective customer relationship management (CRM) platform. Ensure your marketing initiatives have Web 2.0 incentives for customer data collection capabilities to build accurate profiles of your target audience, and connect with them often, especially in this tough economy. Great content builds databases. Relevant content is key. The new world of always on, networked, social & knowledge needs – provides you multiple opportunities to connect with your target audience, providing constant data collection capabilities to construct an accurate and comprehensive profile of their customer base, & better, real-time decision making for shifting markets and customer behavior.
12. Reach out to your customers frequently. That’s the value of digital. It’s instant, easy, and measurable. Connect to your customers in relevant time, purpose, & and content. Rather than implementing "one-off" promotional campaigns, leverage each activity and vehicle against each other to achieve maximum impact. Integrate a related campaign and offers into your direct mail, advertising, web, and other activities to create a more noticeable impression. Campaigns can be set up in advance, and based on the likely needs of multiple markets. How often is frequent enough? It depends on your market, your offer, your resources, and your business strategies, however there are some guidelines. Once you've prioritized your primary, secondary, and tertiary markets, we recommend you "communicate to" your primary market 2x monthly, your secondary market 1x monthly, and your tertiary markets 1x quarterly.
13. Search. 1,000’s of indviduals, searching for a specific need - daily. Computer. Mobile. Local. National. Global. If you are not found by your target audience on the first (or may be second) page of Google, you don’t exist. Being on the top end of search engine results will translate into sales. Local search is the new realm for local business. People won't make car purchase decisions based on mobile searches, but they will use their PDAs to find the nearest gas station, dry cleaner, oil-change center, plumber, florist, ATM, Pizza, or restaurant for a given ethnic cuisine. Your website must be developed for search, both computer and mobile. Search is complex, time consuming, and changes hourly. Search engine optimization (SEO), paid search campaigns, copywriting, keywords, meta tags, page titles, link building, banner ads, long tail…outsource to an expert.
14. Cash flow. The number one reason that businesses fail is lack of cash. Some of the issues that can bury a business in crisis are: improper management of accounts receivable, lack of adequate record-keeping, no review of financial statements, under-funded growth, no control over business assets, unnecessary infrastructure, having to wait too long for payment for sales, sacrificing short-term cash flow for long-term growth, assuming that because a sales is made cash is available, spending on unnecessary inventory.
15. Integrated, Cross-Media. Convergence. Traditional, digital, and experiential. Integrated campaigns are more effective, potentially more costly, can be more complex to manage well – but can reach broader audiences with messaging adjusted to the platform. Integrated campaigns cohesively integrate content, context, and calls-to-action, across multiple platforms, such as web, mobile, print, TV, sales force, radio (63% of American adults listen to the radio one or more times a day), special offers, strategic partners, trade show, packaging, point-of-sales, etc. During challenging times you “must” reach your target audience, with messages aligned with your critical business needs and KPI’s.
16. Measurement, Analytics & KPI’s. Measure and analyze often against KPI’s. During challenging times it is essential the entire organization to work towards key financial and non-financial metrics. These include 3-6 critical measurable objectives, made up of a direction, KPI, benchmark, target and time frame - used to help a business define and measure progress toward critical organizational goals. KPI’s established in your strategy (See #1) include both offline and online metrics. Website analytics are easy to measure, and include its drivers and conversions, for example, which landing pages work better, and convert to new customers than others. With Web 2.0 analytics you should know how visitors interact with rich Internet applications, online video, RSS feeds, consumer-generated media, and more, helping you identify successful content, channels, partners and campaigns. Experiment. Try new options. Measure. Refine & improve.
17. Leadership. Effective leadership is the number one need of any organization during tough times. Do you have the leadership capabilities needed right now? Are key decisions aligned with the critical needs of the business? Do you have the information needed to make decisions? Are decisions made by committees of individuals who may not have experience in challenging markets or clarity towards the real needs of the business? Too many nay-sayers or confusion? Tough times take strong leadership, and the ability to be disciplined under considerable pressure. If you don’t have the leadership resources, bring in some help.
18. Keep it simple. Now is the time to focus on what you do best. Expansion may not be your best option. Focus on your strategy and KPI’s. “Know” who your most profitable customers are. Go after them, and ignore “window shoppers” in favor of customers you know have a higher likelihood of purchasing. Plan for just-in-time growth. Outsource where you can, and watch your cash flow. Be disciplined. Simplify complexity wherever you can. Stay focused on the core fundamentals.
19. Think. Finally, take time to think. During challenging times, stress and a lack of time, often lead to strategic mistakes that leaders could have avoided. It is recommended that leaders take “one hour” a day away from the constant day-to-day demands of communication, meetings, operations, negotiations, and the weight and strain of business – to “think” about what their organization “needs” during tough times. Keep notes, take time to study strong competitors tactics, review financials, think creatively, visit with mentors one and those you trust, one-on-one without interruption. Chart a course. Document.
The author: Peter Ashworth is CEO and founder of Brilliant Blue, a leading US marketing agency. (www.brilliantblue.com).
An intuitive and seasoned business leader, Peter's 25+ years of strategic business building, entrepreneurship, and branding and design experience – through 3 economic downturns, provides clients with the insight, strategic capabilities, and tools – aligned with the fundamental drivers of business value - that turns market place business challenges into viable growth opportunities.
Thursday, March 5, 2009
Trends Forecast For 2009: From Surviving to Thriving!
"Survival of the Fastest" has been a driving socio-cultural macro trend since 1998. Affecting all levels of western culture, and infiltrating developing countries, Survival of the Fastest is characterized by technology becoming our personal sustenance.
Twenty years ago, we spent $614 billion on food and beverages in this country and $ 2 billion on computers, according to the Bureau of Labor Statistics. That's a ratio of 300 to 1. That ratio is now at parity - we currently spend the same amount of money on technology as we do on our nutritional needs, and as a result, our lives have been transformed.
We've been living at the speed of technology, being ever more productive, linking and connecting, but also disconnecting from our biological rhythms. Processing information at 400X the rate of our Renaissance ancestors, we have adapted to "living fast" over the past decade, though we have generally felt depleted.
The global economic collapse, combined with the decline of America as the world's superpower, has jolted us out of our hyper-tasking stupor - a bottoming out that is compelling us to focus on the things that really matter. And, the election of Barack Obama has imbued countries around the globe with a cautious optimism that is one of the seedlings recently planted for "thriving" in the next decade.
Most consumers have been operating in "recession-mode" since the end of the second quarter, well before the recession was official, because they were already feeling the pain of house payments, gas prices, at the grocery store , and lost jobs. Well before the market crash in October, most people had reduced their use of gas and electricity (67%), cut back on out-of-home entertainment (56%), were spending less on new clothes (55%) and using their cars less often (54%). After covering essential living expenses, Americans are saving whatever is left over, though almost 25% of consumers report having no cash.
These behaviors are seeding the trends for 2009.
"Thriving" - Inspired Micro Trends for 2009
1. Legacy: Making Your Mark
2. Fantasy as Fuel
3. Art: Unleashing the Creative Spirit
4. Home as Heavenly Haven
5. Science: Expansion & Discovery
6. Optimism and Vitality: From 2D to 3D
7. Culture of Mobility
8. Authenticity
9. Fun Frugality
1. Legacy: Making Your Mark
Making your mark through support of important causes, whether it's supporting the discovery of new resources, research to vanquish disease or plantetary support/recovery causes. "Causism" will replace "consumerism" as people of all ages, genders and backgrounds think about their place in the world - their purpose, contribution, personal legacy.
Brand Implications: "cause marketing" will evolve from niche and promotional status to a more central place in brand communications. Sustainability will not be an option; cause affiliations will be more prominent for the next several years. Cause marketing has been primarily female focused, but will evolve to include men, kids, teens...
Examples: Starbucks Affinity Card, Red/Gap/AMEX, LiveStrong/Nike, Campbell Soup/Breast Cancer, Revlon/Breast Cancer
2. Fantasy as Fuel
Fantasy will propel us forward...successfully into the future. A recent study by Harvard University determined that our minds need to wander because daydreaming is actually the brains' normal state, rather than a pointless distraction. Daydreaming and fantasy are the fuel for imagination and imagination is what differentiates us and makes us human. Our fast lives are forcing us to redefine our personal and collective tempos, so fantasy -- spontaneity, creativity and daydreaming - is becoming an antidote to technology.
The ability to imagine and liberate our creativity leads to optimism (vs. apathy). In the long term, fantasy and imaginational wanderings will lead to new discoveries and collective problem solving. Fantasy will ultimately be the cornerstone to a restored economy as new businesses are imagined, then developed that enable us to live non-toxically well into the future.
Brand Implications: Brands that liberate our imaginations and reconnect us with our creativity underscore this trend.
Examples: Disney positioning itself to adults (the Annie Liebowitz campaigns) to liberate the "kid who wonders" inside all of us; Need a few more examples (2) here - any ideas are welcome
3. Art: Unleashing the Creative Spirit
A renewed respect for art is also helping us unleash our creative spirit. Art is giving us new ways to connect to each other beyond the social networking sites, texting, e-mail and other "fast" connections. Artists push issues to challenge and enlighten us, but also to creatively push solutions. Artists are showing us how to reclaim our 'stuff' in compelling, new ways:
Sonic Fabric: Alyce Santoro's voice and music filled fabric is made from reclaimed cassette tapes
Steven Siegel transforms old newspaper, cardboard, plastic and cans into sculpture
Bel-Air Sculpture: French artist Matheiu Lehanneur collaborated with American scientist David Edwards (Harvard) to create a "clean air sculpture" - mini mobile greenhouse that continuously inhales the space- polluted air, forcing it through 3 natural filters (plant leaves, roots, and a humid bath) which purifies it.
Business Implications: The MFA is the new MBA. According to Daniel Pink in A Whole New Mind "an arts degree is the hottest credential in the business world". Only 43% of McKinsey's hires have MBA's versus 61% in 1991.
Brand Examples: Le Meridien is repositioning itself as a lifestyle brand with a focus on art and design. Each hotel has a cultural concierge and room cards with information about cultural events nearby. Key cards are designed by artists around the world and are considered collectible. Le Meridien is also hosting art exhibits and lectures so that "when a person leaves the hotel, they have a feeling that their life has been enhanced and grown".
Designers are the artists if business, creating success through 'applied art' as evidenced by the success of Karim Rashid's Kurv, Kone and Kruz vacuums for Dirt Devil.
4. Home as Heavenly Haven
The harsh realities of the economic downturn are creating a collective need and desire to turn inward and refocus on things that really matter... less focus on "stuff" and more connection with family and self. The doorway of the home is the doorway to familiarity, comfort, joy and connection. The home becomes a heavenly haven through transformational elements that let rooms and spaces serve multiple functions. Much like an iPhone which is a phone, camera, mini-computer, GPS, calculator...rooms need to have multi-functional capability and flexibility built-in as we begin go out less, stay home more.
Implications: Flexible Reinvention: As budgets tighten, the design ethic going forward will be 'less must do more'. A living room must be great for cocktails, but also for the family to gather after dinner for movies, games, reading... so seating and tables must be reconfigurable; bedrooms/dining rooms will serve their primary purpose plus one other function like home office:
- low stools that serve as seating, tables, ottomans and that ROLL (can be moved easily) and are light
- lamps must have several settings (mood, reading), movable/adjustable arms
- sofas that reconfigure (sectionals that can break into chairs/daybeds or transform into loungers or sleepers
- the return of the Murphy bed
- benches that serve as seating or low tables
- dining tables that transform into desks
Sohji screens or movable dividers that instantly transform a space from one thing to another
Hollywood: Needs to leverage this trend and begin packaging movies/tv shows in themed sets (Intrigue; Comics Inspired; Fun Escape) so we can burrow in comfortably. The visual language of these new "flexible furnishings" will be comforting...no harsh lines or abrupt, sharp angles...we want softness, creature comfort, human-friendly forms...nothing hurtful
Brand Examples
Apple TV: ability to have movies, TV series and music all within reach without having to leave home Method: looks great, smells great and detoxes the home gently
FLOR: These carpet tiles are inexpensive, durable, easy to install and fantastic looking. FLOR gives us the ability to change floor coverings often, rejuvenating our environments with color and texture on a more regular basis then ever before.
5. Science: Expansion & Discovery
A renewed respect for science is burgeoning based on our collective need to understand how to perpetuate and expand our place in the universe. We are expanding into inner space and mapping the human genome to discover ways we can live younger longer AND...we are expanding to outer space to discover new resources:
- harvesting the hydrogen from Mars and converting it into water
- mining the inner solar system for water resources
- converting Helium 3 from the moon into alternative fuel ... so we can sustain life here on Earth long into the future. Science expansion is coming from the private sector (in addition to governments) and is becoming "cool" in mainstream culture.
Evidence
NYC Mayor Michael Bloomberg promises $100 million to fund stem cell research to save the lives of millions
Google founders Sergey Brin and Larry Page funding resource exploration on the moon
Brand Implications: Brands need to think beyond the quarterly numbers and keep their eyes on the bigger picture by exploring and discovering alternative life forces that will propel us into the future:
Brand Examples
Cafe Scientifique: Science cafes and pubs are sprouting across the world, providing lively debates about current science topics between scientists and science aficionados
TV channels like Discovery, National Geographic and The Science Channel are experiencing record high ratings, with shows about scientific developments and space exploration:
Ratings for the Discovery Channel are up 16% this year and 11% among the elusive 25-to-54-year-old male
6. Optimism and Vitality: From 2D to 3D
We have spent a decade staring at computer screens, bent over our Blackberries, wired to a headset, and just generally being over- scheduled. Initially making us want to Escape, we now aspire to Engage... in real, genuine, 3-dimensional experiences versus the 2-dimensional, flatness of our virtual lives.
Charisma cannot be experienced online; someone's personal vitality can only be experienced in the "real" world.
It transcends momentary experiences and manifests as a desire for memorable, life affirming, life enhancing experiences... to live "full- out" with vitality!
Implications
Relevant for Boomers who want to "live younger longer!", yet we are seeing evidence of this trend across all age groups. Everyone wants to be their best self and have the energy to engage fully in life.
High impact, fully sensory experiences
Note: After 5 years of the blogosphere (which has lost it's grassroots, individual appeal in favor of mega blogs like the Huffington Post) and the rise of "fast networking" like Twitter and FaceBook, people want to get offline and spend time with real people. FaceBook is being used to connect virtually AND to connect/reconnet people in the real world.
Brand Examples
Ford Mustang: High impact, fully sensorial experiences. "Thrills. Grabs. Exhilarates."
Lipton: Healthy Vitality. Tea can do that.
7. Culture of Mobility
Our early 21st Century lifestyles are fast, portable and global, creating a culture of "modern nomads" who can metaphorically "pitch their tents" almost anywhere as long as they have their gear:
- mobile phone
- laptop
- grooming products
- change of clothes
To thrive, not just survive our gear needs to be multi-functional and also be light, airy, almost weightless... and our environments need to flow free from obstruction, so we can navigate unimpeded. Key attributes:
- Mobility, portability
- Total convenience
- Free flowing
- Light, airy, weightless
- Global
- Multi-functional
- Modern "techno-glyphs"
Implications
Interior designers such as Philippe Stark, Karim Rashid, Marc Newsom and architects such as Rem Koolhaus, Richard Meier and Frank Gehry understand that as the human population increases and security restrictions become tighter throughout the world, we need to create a modern global landscape as free from impediments and "stuff" as possible.
Brand Examples
iPhone: not just a phone; a streamlined "mini-computer" that fits in your pocket
CLEAR: flow through airport security unimpeded
Puma 96 HOURS
EZ-Pass: no stopping to pay tolls
8. Authenticity
This trend has been socio-cultural driver for the past five years and shows no sign of abating. It intersects several aspects of the culture - from the "local" food movement, to human craftsmanship and "real guyness" (no more marketer generated metrosexuals) to heritage brands that have stood the test of time - 'authenticity' reflects our collective desire for "realness" - no hype, no spin, no marketing 'gimmicks'. Particularly when money is tight, people want to believe in the integrity of the brands they buy, even if they pay more for quality and buy less "stuff".
Brand Implications: Heritage brands are hailed by all generations of consumers as authentic because they have stood the test of time. Leveraging this historical pedigree in a modern, relevant context will be key in the next year.
Brand Examples
Coca-Cola Designer Series: Leveraging the visual equities of this classic brand in a new context to capture a new audience. Only distributed at select clubs/lounges throughout the globe; iconic bottle shape used as a 'canvas' for contemporary artists (this example also intersects with the "Art" trend)
Burberry: Leverages iconic Burberry plaid and logo across a rejuvenated, relevant product line.
Levi's/Damien Hirst: Leveraging the equities of this iconic, heritage brand in tandem with a controversial, real artist for a limited line of Damien Hirst inspired T's and jeans (also intersects with the "Art" trend)
Gillette: A brand passed from one generation to the other; known by guys throughout the globe as the true razor brand because of it's longevity and constant innovation. Gillette's shaving innovations become the category standards.
9. Fun Frugality
This new era of austerity is forcing almost everyone at every economic level to budget. This forced frugality can be fun frugality, however, and many consumers are approaching the 'belt tightening' in an optimistic and creative manner.
Reading What We Have: Instead of impulse buys and paperback sprees, creating "reading contests or groups" at home to read what's there first. Most people admite...there' a lot there that has been forgotten about! (Also intersects with the Home as Heavenly Haven trend).
Public Spaces: Enjoying public spaces like parks, free concerts, art and science museums (nominal fee)
Repair vs. Replace: Repairing becomes a creative endeavor - restoring old furniture, learning how to rewire a lamp or slipcover an old chair
Get Out the Sewing Machine or Knitting Needles: Creating your own clothes, kids clothes, throws, pillows or gifts is another form of personal expression and creativity (intersects with Home as Heavenly Haven and Art trends)
Thrift Stores: Akin to scavenger hunts for the best finds
Coupons: making couponing fun...creating ways in which it can be organized... in books, envelopes, folders...by category, person in the family...getting the whole family engaged in it...becomes fun rather than a chore!
Home made crafts/arts/gifts: This can also involve the whole family and can include everything from baking cookies as gifts, creating your own holiday decorations, DIY home accessorizing
Target, Daffy's, BlueFly, e-bay: shopping at mass merchandisers or discounters that have a sense of style and fun or even finding bargains at online auctions like e-bay.
Twenty years ago, we spent $614 billion on food and beverages in this country and $ 2 billion on computers, according to the Bureau of Labor Statistics. That's a ratio of 300 to 1. That ratio is now at parity - we currently spend the same amount of money on technology as we do on our nutritional needs, and as a result, our lives have been transformed.
We've been living at the speed of technology, being ever more productive, linking and connecting, but also disconnecting from our biological rhythms. Processing information at 400X the rate of our Renaissance ancestors, we have adapted to "living fast" over the past decade, though we have generally felt depleted.
The global economic collapse, combined with the decline of America as the world's superpower, has jolted us out of our hyper-tasking stupor - a bottoming out that is compelling us to focus on the things that really matter. And, the election of Barack Obama has imbued countries around the globe with a cautious optimism that is one of the seedlings recently planted for "thriving" in the next decade.
Most consumers have been operating in "recession-mode" since the end of the second quarter, well before the recession was official, because they were already feeling the pain of house payments, gas prices, at the grocery store , and lost jobs. Well before the market crash in October, most people had reduced their use of gas and electricity (67%), cut back on out-of-home entertainment (56%), were spending less on new clothes (55%) and using their cars less often (54%). After covering essential living expenses, Americans are saving whatever is left over, though almost 25% of consumers report having no cash.
These behaviors are seeding the trends for 2009.
"Thriving" - Inspired Micro Trends for 2009
1. Legacy: Making Your Mark
2. Fantasy as Fuel
3. Art: Unleashing the Creative Spirit
4. Home as Heavenly Haven
5. Science: Expansion & Discovery
6. Optimism and Vitality: From 2D to 3D
7. Culture of Mobility
8. Authenticity
9. Fun Frugality
1. Legacy: Making Your Mark
Making your mark through support of important causes, whether it's supporting the discovery of new resources, research to vanquish disease or plantetary support/recovery causes. "Causism" will replace "consumerism" as people of all ages, genders and backgrounds think about their place in the world - their purpose, contribution, personal legacy.
Brand Implications: "cause marketing" will evolve from niche and promotional status to a more central place in brand communications. Sustainability will not be an option; cause affiliations will be more prominent for the next several years. Cause marketing has been primarily female focused, but will evolve to include men, kids, teens...
Examples: Starbucks Affinity Card, Red/Gap/AMEX, LiveStrong/Nike, Campbell Soup/Breast Cancer, Revlon/Breast Cancer
2. Fantasy as Fuel
Fantasy will propel us forward...successfully into the future. A recent study by Harvard University determined that our minds need to wander because daydreaming is actually the brains' normal state, rather than a pointless distraction. Daydreaming and fantasy are the fuel for imagination and imagination is what differentiates us and makes us human. Our fast lives are forcing us to redefine our personal and collective tempos, so fantasy -- spontaneity, creativity and daydreaming - is becoming an antidote to technology.
The ability to imagine and liberate our creativity leads to optimism (vs. apathy). In the long term, fantasy and imaginational wanderings will lead to new discoveries and collective problem solving. Fantasy will ultimately be the cornerstone to a restored economy as new businesses are imagined, then developed that enable us to live non-toxically well into the future.
Brand Implications: Brands that liberate our imaginations and reconnect us with our creativity underscore this trend.
Examples: Disney positioning itself to adults (the Annie Liebowitz campaigns) to liberate the "kid who wonders" inside all of us; Need a few more examples (2) here - any ideas are welcome
3. Art: Unleashing the Creative Spirit
A renewed respect for art is also helping us unleash our creative spirit. Art is giving us new ways to connect to each other beyond the social networking sites, texting, e-mail and other "fast" connections. Artists push issues to challenge and enlighten us, but also to creatively push solutions. Artists are showing us how to reclaim our 'stuff' in compelling, new ways:
Sonic Fabric: Alyce Santoro's voice and music filled fabric is made from reclaimed cassette tapes
Steven Siegel transforms old newspaper, cardboard, plastic and cans into sculpture
Bel-Air Sculpture: French artist Matheiu Lehanneur collaborated with American scientist David Edwards (Harvard) to create a "clean air sculpture" - mini mobile greenhouse that continuously inhales the space- polluted air, forcing it through 3 natural filters (plant leaves, roots, and a humid bath) which purifies it.
Business Implications: The MFA is the new MBA. According to Daniel Pink in A Whole New Mind "an arts degree is the hottest credential in the business world". Only 43% of McKinsey's hires have MBA's versus 61% in 1991.
Brand Examples: Le Meridien is repositioning itself as a lifestyle brand with a focus on art and design. Each hotel has a cultural concierge and room cards with information about cultural events nearby. Key cards are designed by artists around the world and are considered collectible. Le Meridien is also hosting art exhibits and lectures so that "when a person leaves the hotel, they have a feeling that their life has been enhanced and grown".
Designers are the artists if business, creating success through 'applied art' as evidenced by the success of Karim Rashid's Kurv, Kone and Kruz vacuums for Dirt Devil.
4. Home as Heavenly Haven
The harsh realities of the economic downturn are creating a collective need and desire to turn inward and refocus on things that really matter... less focus on "stuff" and more connection with family and self. The doorway of the home is the doorway to familiarity, comfort, joy and connection. The home becomes a heavenly haven through transformational elements that let rooms and spaces serve multiple functions. Much like an iPhone which is a phone, camera, mini-computer, GPS, calculator...rooms need to have multi-functional capability and flexibility built-in as we begin go out less, stay home more.
Implications: Flexible Reinvention: As budgets tighten, the design ethic going forward will be 'less must do more'. A living room must be great for cocktails, but also for the family to gather after dinner for movies, games, reading... so seating and tables must be reconfigurable; bedrooms/dining rooms will serve their primary purpose plus one other function like home office:
- low stools that serve as seating, tables, ottomans and that ROLL (can be moved easily) and are light
- lamps must have several settings (mood, reading), movable/adjustable arms
- sofas that reconfigure (sectionals that can break into chairs/daybeds or transform into loungers or sleepers
- the return of the Murphy bed
- benches that serve as seating or low tables
- dining tables that transform into desks
Sohji screens or movable dividers that instantly transform a space from one thing to another
Hollywood: Needs to leverage this trend and begin packaging movies/tv shows in themed sets (Intrigue; Comics Inspired; Fun Escape) so we can burrow in comfortably. The visual language of these new "flexible furnishings" will be comforting...no harsh lines or abrupt, sharp angles...we want softness, creature comfort, human-friendly forms...nothing hurtful
Brand Examples
Apple TV: ability to have movies, TV series and music all within reach without having to leave home Method: looks great, smells great and detoxes the home gently
FLOR: These carpet tiles are inexpensive, durable, easy to install and fantastic looking. FLOR gives us the ability to change floor coverings often, rejuvenating our environments with color and texture on a more regular basis then ever before.
5. Science: Expansion & Discovery
A renewed respect for science is burgeoning based on our collective need to understand how to perpetuate and expand our place in the universe. We are expanding into inner space and mapping the human genome to discover ways we can live younger longer AND...we are expanding to outer space to discover new resources:
- harvesting the hydrogen from Mars and converting it into water
- mining the inner solar system for water resources
- converting Helium 3 from the moon into alternative fuel ... so we can sustain life here on Earth long into the future. Science expansion is coming from the private sector (in addition to governments) and is becoming "cool" in mainstream culture.
Evidence
NYC Mayor Michael Bloomberg promises $100 million to fund stem cell research to save the lives of millions
Google founders Sergey Brin and Larry Page funding resource exploration on the moon
Brand Implications: Brands need to think beyond the quarterly numbers and keep their eyes on the bigger picture by exploring and discovering alternative life forces that will propel us into the future:
Brand Examples
Cafe Scientifique: Science cafes and pubs are sprouting across the world, providing lively debates about current science topics between scientists and science aficionados
TV channels like Discovery, National Geographic and The Science Channel are experiencing record high ratings, with shows about scientific developments and space exploration:
Ratings for the Discovery Channel are up 16% this year and 11% among the elusive 25-to-54-year-old male
6. Optimism and Vitality: From 2D to 3D
We have spent a decade staring at computer screens, bent over our Blackberries, wired to a headset, and just generally being over- scheduled. Initially making us want to Escape, we now aspire to Engage... in real, genuine, 3-dimensional experiences versus the 2-dimensional, flatness of our virtual lives.
Charisma cannot be experienced online; someone's personal vitality can only be experienced in the "real" world.
It transcends momentary experiences and manifests as a desire for memorable, life affirming, life enhancing experiences... to live "full- out" with vitality!
Implications
Relevant for Boomers who want to "live younger longer!", yet we are seeing evidence of this trend across all age groups. Everyone wants to be their best self and have the energy to engage fully in life.
High impact, fully sensory experiences
Note: After 5 years of the blogosphere (which has lost it's grassroots, individual appeal in favor of mega blogs like the Huffington Post) and the rise of "fast networking" like Twitter and FaceBook, people want to get offline and spend time with real people. FaceBook is being used to connect virtually AND to connect/reconnet people in the real world.
Brand Examples
Ford Mustang: High impact, fully sensorial experiences. "Thrills. Grabs. Exhilarates."
Lipton: Healthy Vitality. Tea can do that.
7. Culture of Mobility
Our early 21st Century lifestyles are fast, portable and global, creating a culture of "modern nomads" who can metaphorically "pitch their tents" almost anywhere as long as they have their gear:
- mobile phone
- laptop
- grooming products
- change of clothes
To thrive, not just survive our gear needs to be multi-functional and also be light, airy, almost weightless... and our environments need to flow free from obstruction, so we can navigate unimpeded. Key attributes:
- Mobility, portability
- Total convenience
- Free flowing
- Light, airy, weightless
- Global
- Multi-functional
- Modern "techno-glyphs"
Implications
Interior designers such as Philippe Stark, Karim Rashid, Marc Newsom and architects such as Rem Koolhaus, Richard Meier and Frank Gehry understand that as the human population increases and security restrictions become tighter throughout the world, we need to create a modern global landscape as free from impediments and "stuff" as possible.
Brand Examples
iPhone: not just a phone; a streamlined "mini-computer" that fits in your pocket
CLEAR: flow through airport security unimpeded
Puma 96 HOURS
EZ-Pass: no stopping to pay tolls
8. Authenticity
This trend has been socio-cultural driver for the past five years and shows no sign of abating. It intersects several aspects of the culture - from the "local" food movement, to human craftsmanship and "real guyness" (no more marketer generated metrosexuals) to heritage brands that have stood the test of time - 'authenticity' reflects our collective desire for "realness" - no hype, no spin, no marketing 'gimmicks'. Particularly when money is tight, people want to believe in the integrity of the brands they buy, even if they pay more for quality and buy less "stuff".
Brand Implications: Heritage brands are hailed by all generations of consumers as authentic because they have stood the test of time. Leveraging this historical pedigree in a modern, relevant context will be key in the next year.
Brand Examples
Coca-Cola Designer Series: Leveraging the visual equities of this classic brand in a new context to capture a new audience. Only distributed at select clubs/lounges throughout the globe; iconic bottle shape used as a 'canvas' for contemporary artists (this example also intersects with the "Art" trend)
Burberry: Leverages iconic Burberry plaid and logo across a rejuvenated, relevant product line.
Levi's/Damien Hirst: Leveraging the equities of this iconic, heritage brand in tandem with a controversial, real artist for a limited line of Damien Hirst inspired T's and jeans (also intersects with the "Art" trend)
Gillette: A brand passed from one generation to the other; known by guys throughout the globe as the true razor brand because of it's longevity and constant innovation. Gillette's shaving innovations become the category standards.
9. Fun Frugality
This new era of austerity is forcing almost everyone at every economic level to budget. This forced frugality can be fun frugality, however, and many consumers are approaching the 'belt tightening' in an optimistic and creative manner.
Reading What We Have: Instead of impulse buys and paperback sprees, creating "reading contests or groups" at home to read what's there first. Most people admite...there' a lot there that has been forgotten about! (Also intersects with the Home as Heavenly Haven trend).
Public Spaces: Enjoying public spaces like parks, free concerts, art and science museums (nominal fee)
Repair vs. Replace: Repairing becomes a creative endeavor - restoring old furniture, learning how to rewire a lamp or slipcover an old chair
Get Out the Sewing Machine or Knitting Needles: Creating your own clothes, kids clothes, throws, pillows or gifts is another form of personal expression and creativity (intersects with Home as Heavenly Haven and Art trends)
Thrift Stores: Akin to scavenger hunts for the best finds
Coupons: making couponing fun...creating ways in which it can be organized... in books, envelopes, folders...by category, person in the family...getting the whole family engaged in it...becomes fun rather than a chore!
Home made crafts/arts/gifts: This can also involve the whole family and can include everything from baking cookies as gifts, creating your own holiday decorations, DIY home accessorizing
Target, Daffy's, BlueFly, e-bay: shopping at mass merchandisers or discounters that have a sense of style and fun or even finding bargains at online auctions like e-bay.
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