earned brand 2016: china results deck with …...the earned brand earned brand 2016 china|2 the...

Earned Brand2016China

The Earned Brand

Earned Brand 2016 China| 2

The Earned Brand’s story is not simply told, it is demonstrated and experienced;

and to do that, brands can’t operate with a style guide alone.

The Earned Brand has a world view and a belief system; a purpose and a

reason for being – one that defines not just the communications, but how the

brand behaves online, offline, and in all contexts.

An expressed set of values informs which products are made, which language is

used, how customers are treated, and ultimately the legacy the brand leaves in

the communities it serves.

Managing a brand has never

been more demanding

The pace of change around us is exponential

Previously unmet needs are becoming uncovered leading to disruption

Categories having their conventions completely defied

We are faced with ever more sophisticated and knowledgeable

customers, stakeholders and consumers with increasingly high

expectations

Earned Brand 2016 China| 4

Disruption

Changing online and

offline interaction

New business

models

Changing distribution

and payment channels

Brand now entails so much more than product

Why are you there ?

What do you stand for ?

What’s your higher purpose ?

Who is behind you ?

Does the company ‘walk the talk’ ?

What is the societal good you are doing ?

Do you bring value and satisfaction to my life ?

And your brand’s product

may be about to change

beyond today’s recognition

E.g. When a car is no longer a self-owned mode of transport but a rented,

possibly shared, state-of-the-art computer

Growing

expectations

75% will not buy if a brand fails to meet societal obligations

80% doing good should be part of a brand’s DNA

71%brands can do more to solve societal ills than government

Q17 (Top 4 Box “Agree”), Q20 (Net of 3 items) Earned Brand 2016 China | 7

62%Global

60%

55%

In this context

the relationship we have with our

consumers and customers has never

been more important

The consumer relationship has never

been more important to our business

Buying

Advocating

Defending

We wanted to explore

How strong is the consumer-brand

relationship?

How does a stronger relationship lead to

better businessresults?

How can brands

strengthenthe relationship?

Earned Brand 2016Methodology

A Global Survey

Timing

April 7 – April 25, 2016

13 countries

Online survey in Australia,

Brazil, Canada, China, France,

Germany, India, Japan, Mexico,

The Netherlands, Singapore,

U.K., and U.S.

13,000 respondents

1,000 per country, nationally

representative of age, gender,

and region based on most

recent country census data.

Social listening

In China, Germany, India, the U.K.,

and U.S., we listened to consumer

conversations on social media to

assess the impact of 15

recent cause-related brand

campaigns or actions.

Earned Brand 2016 Global | 11Unless otherwise specified, all data is from the Earned Brand 2016 study. The full text of the questions referenced in the report appear in the

endnotes. Full explanations of the Brand Relationship Index and other analyses performed appear in the methodology section of the Appendix.

18brand categories

Travel

Mobile carriers

Social media

Automobile

Personal care

Beer, wine, and spirits

Luxury goods

Prescription medicines

Credit cards

Utilities

Grocery stores

Retailers

Financial services

Food and beverage

Home energy management

Fashion

OTC medicines

Household products

Edelman

Brand Relationship

Index

Earned Brand 2016 Global | 12

What is your

favorite brand – one you already buy –

in this category?


Edelman

Brand Relationship

Index

Builds trustat every

touchpoint

Makes its

markInvites

sharing,inspires

partnership

Embodies

unique character

Tells a memorable

story

Listens openly,

respondsselectively

Acts with

purpose

How well do you feelthis brand…?

Earned Brand 2016 Global | 14See Appendix for a full explanation of the seven dimensions of the consumer-brand relationship.

Edelman

Brand Relationship

Index

The Edelman Brand Relationship Index

is the average of the

seven dimensions


Builds trustat every

touchpoint

Makes its

mark

Invites

sharing,inspires

partnership

Embodies

uniquecharacter

Listens openly,

respondsselectively

Tells a memorable

story

Acts with

purpose

See Appendix for a full explanation of how the Index was built.

0-100

Edelman

Brand Relationship

Index

A good score but still room to grow

Relationship strength

0 10020 40 60 80


China Average

53

See Appendix for a full explanation of how the Index was built. Earned Brand 2016 China | 16

The consumer-brand relationshipfalls short around the world

39

43

40

3233

30

32

32

53

34

52

39

Canada

U.S.

Mexico

Brazil

Lowest

The NetherlandsU.K.

France

Germany

32

India

China

Singapore

Japan

Australia

Highest

See Appendix for a full explanation of how the Index was built. Earned Brand 2016 Global | 17

The consumer-brand relationship

further growth potential across categories

2016 Edelman Brand Relationship Index by category


59 58 57 57 56 54 54 54 53

53 53 52 52 52 51 50 50 50

Global 43 38 43 41 40 39 39 40 38

Global 39 37 39 36 42 35 33 34 33

The consumer-brand relationship

Earned Brand 2016 China | 19

Generation Gender

See Appendix for a full explanation of how the Index was built.

52 5443 54 54 53 53

2016 Edelman Brand Relationship Index

further growth potential across demographics

Global 38 44 39 32 28 40 36


The five relationship stagesAt five points, the data shows meaningful shifts in

consumer attitudes and behaviors toward brands

Strength of relationship with the

favorite brand they buy in a category

I may buy/use your

product, but I don’t

really put much

thought into it.

I know a little

about you, beyond

your product

I am making an

educated choice.

Given a choice,

I would pick your

brand. I appreciate

what you stand for.

We share common

values and see

the world in a

similar way.

We do things

together and for

each other.

We share a past

and a future.

See Appendix for a full explanation of how the five relationship stages were created.

So far they’re invested, but

commitment is the last mile

53Strength of relationship with the

favorite brand they buy in a category


China Average


38

Global Average

They’re willing to go

further with you

Commitment within reach–for all brand categories

Percent of relationships in category that are committed

Committed

26%

32%

22%

34%

18%

25%

24%

27%

30%

23%

29%

23%

28%

25%

24%

Automobile

Social

media

Mobile

carriersFinancial

services25%

Fashion

Grocery

stores

Credit

cards

TravelPersonal

care

Retailers

Food

and

beverage

24%

Luxury

goods

Beer,

wine, and

spirits Utilities

Prescription

medicines

Home

energy

management

Household

products

OTC

medicines

“Committed” is the last stage on the Earned Brand Relationship Index.

See Appendix for a full explanation of how the five relationship stages were built.Earned Brand 2016 China | 23

22%

17

Global

13

13

12

14

13

13

12 12 12

10 12 10

13 12

10 8

10

Interested Involved Invested CommittedIndifferent

Why earning Commitment matters?

24

0

80

60

40

20

And unlock the

POWER OF PEERS

Strong relationships DRIVE

and PROTECT your BOTTOM LINE

From paying a premium, trying your latest

innovations first to sticking with your brand

even if a competitor is getting better reviews,

or is more innovative, greener, etc.

From pro-actively advocating for your brand, to

liking/rating what your brand is saying on social

media and participating in creating the brand’s

content. From defending your brand if they ever hear

someone criticize it to sticking with you even if

something goes wrong

Stay Loyal

When I buy products in this category,

it has to be this brand

I am happy to share my

personal data with this brand

I will stick with this brand even if a competitor is:

• getting better reviews

• more innovative

• greener

• treats workers better


Strong relationships drive

and protect your bottom line

Buy First

I am one of the first to try the brand’s new products

I am happy to pay more for this

brand’s products and services

Q14, ways in which consumers can support a brand.

Clear majority of buyers

will buy first and stay loyal

Percent of buyers who will

buy first and stay loyal

0

80

60

40

20


The untapped opportunity

Q14 (Top 4 Box, “Describes me”.) Average of items associated with buying first and staying loyal

by relationship level. See Appendix for a full explanation for how the five relationship stages were built. *Low base size for indifferent (n=35)


Global

China


Defend

I defend this brand if I ever

hear someone criticize it

I will stick with this brand even

if something goes wrong

Strong relationships mean

your customers will go to work for you

Advocate

I always recommend this

brand if someone asks

I advocate for this brand even

when I am not asked

I like/rate what the brand

is saying on social media

I participate in creating

the brand’s content

Q14, ways in which consumers can support a brand.

0

80

60

40

20


The untapped opportunity

Q14 (Top 4 Box, “Describes me”.) Average of items associated with advocating and defending

by relationship level. See Appendix for a full explanation for how the five relationship stages were built. *Low base size for indifferent (n=35)


Clear majority of buyers

will advocate for and

defendyour brand

Percent of buyers who will

advocate for and defend

Global

China


The 3 consumerbehaviors that increase the most

from Involvedto Committed

I participate in creating the brand’s content

Owned

+38+34

+31

I am happy to share personal data with this brand

I defend this brand if I ever hear someone criticizing it

Difference between the percent of

Involved consumers who will take an

action and the percent of Committed

consumers who will take the same action

Q14 (Top 4 Box, “Describes me”.) Behaviors that had the greatest percentage point increase from the Involved to the Committed relationship

levels. See Appendix for a full explanation of how the five relationship stages were built. *Low base size for indifferent (n=35)Earned Brand 2016 China | 29

Global

+48+35

+32

Our Communications are at

the heart of driving our

consumer and customer

relationships

Managing our brand

communications has never been

more demanding

We wrestle with the pace of change in our communications

strategies

We must contend with the speed of dissemination of

information

Co-creation and no cessation in the conversations is a given

We know that control, central ownership and containment

all in the past

94% rely on peer sources to

learn about brands

78% rely on peer sources for buying decisions

67%use/would use

ad blockers“I rely on my peers to reassure me.

Because their experience is my evidence.”

- Earned Brand 2015

Q31 (Top 4 Box “Rely on most,” net of 3 items), Q32 (Net of 5 items), Q33 (Net of 3 items) Earned Brand 2016 China | 32

86%Global

71%

58%

The rise of peer to peer

You can’t buycommitment

Television

76% 41%50%

The brand’s website

Blogs

37%

89%regularly use traditional media sources for information about brands


Learning about brands:

earned media mattersPercent who use each media type regularly

Q30 (Regular Usage), (Traditional media callout is a net of 5 items)

Search engines

Shopping/retailwebsites not

owned by brand

57%

Social media sites

83%

The radioMagazinesNews articles

73% 69% 65%

80%

Global

Global 78%

51% 62% 57%49% 56%

33% 37% 37%


Advertising can only get you so far

56% Advertising is primary point of engagement

52%

41%

Paid

Peer

Owned

Percent who have

used each type of

media to engage with

their favorite brand in

the last 90 days

Q15 (Paid is a net of 4 items, Peer is a net of 7 items, and Owned is a net of 6 items) by relationship level.

See Appendix for a full explanation for how the 5 relationship stages were built. *Low base size for indifferent (n=35)Earned Brand 2016 China | 35

Global 43%

Global 35%

Global 34%


Involved consumers surge in their use of peer and owned

56%

52%

41%

Paid

Peer

Owned

Percent who have

used each type of



the last 90 days

60%

Peer conversations more important than paid71%

59%

Paid

Peer

Owned



Global 57%

Global 54%

Global 52%

56%

52%

41%

Paid

Peer

Owned

64%

78%

72%

Paid

Peer

Owned

Paid

73%

Talking aboutand with thebrand matters far more thanadvertising

79%

82%Peer

Owned

60%

71%

59%

Paid

Peer

Owned

CommittedInterested Involved Invested

Percent who have

used each type of



the last 90 days

Conversations are the foundations

of a committed relationship



Indifferent

Global 63%

Global 66%

Global 64%

Global 65%

Global 72%

Global 73%

56%

52%

41%

Paid

Peer

Owned

From Interested to Committed, usage of owned grows the fastest

Percent who have

used each type of



the last 90 days


+17

+30

+38



Paid

73%

79%

82%Peer

Owned

56%

52%

41%

Paid

Peer

Owned

Global 43%

Global 35%

Global 34%

65%

72%

73%

+22

+37

+39

Earningcommitment

Brands falling shorton purpose, trust and

listening

Relationship dimensions

The average strength of each dimension

of the brand relationship

58Embodies

unique

character 51Builds trust at

every touchpoint

51Acts with

purpose

56Invites sharing,

inspires

partnership

54Tells a

memorable

story

54Makes

its

mark

49Listens openly,

responds

selectively

53

Lowest marks

See Appendix for a full explanation of how the Index was built and of the

seven dimensions of the consumer-brand relationship.Earned Brand 2016 China | 40

4433

3934

35

38

42

38

Global

How to strengthen the relationship

through trust

Builds trust at every touchpoint

Top four brand attributes that drive a deeper

relationship around “Builds trust at every touchpoint”

Allow me to

customize or

personalize your

products and

services

Be there for me

at really tough times

in my life

Modeling Q10 “builds trust at every touchpoint” relationship dimension responses using Q13 “what makes a brand special” items.

See Appendix for a full explanation of how the relationship dimensions were scored and a description of the regression analysis.Earned Brand 2016 China | 41

Invite me in

and allow me to play a part

People admire and respect me when I use your

brand


through purpose

Acts with purpose

Top three brand attributes that drive a deeper

relationship around “Acts with purpose”

Care about me

as a person and

make me feel special

Cares about the impact on

my communityInvite me in

and allow me to play a part

Modeling Q7 “acts with purpose” relationship dimension responses using Q13 “what makes a brand special” items.



through listening

Listens openly, responds selectively

Top four brand attributes that drive a deeper

relationship around “Listens openly, responds selectively”

Be there for me at really tough

times in my life

People admire and

respect me when I

use your brand

Connect me to

like-minded people

Invite me in and allow me

to play a part

Modeling Q11 “listens openly” relationship dimension responses using Q13 “what makes a brand special” items.



When brands get it rightSocial listening analysis capturing

consumer responses to various brand campaigns

Builds trust at every touchpoint

Listens openly, responds selectively

Acts with purpose

“ “

Source: Quotes from Sina Weibo.

“SK-II empowers me to be an

independent single woman.

—Nancy He, woman aged 42

Xiaomi‘s products speak to who I am,

and I can even be part of new product

development through its

crowdfunding platform.

— Jose Zhang, IT

I believe I have a promising career

opportunity at Starbucks with the

sufficient trainings they provide.

My customers trust me make the best

coffee they can find in town.

— Mike Chen, a barista working at Starbucks

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