telos media-works-holistic marketing in china
TRANSCRIPT
Expand. Renew. Grow.!
Holistic Marketing in China
J. Alfonso A. de Dios Telos Media Works, Ltd
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Expand. Renew. Grow.!
China: A Journey of Complexity and Scale
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Diverse, growing markets
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56 ethnic groups
33 provinces
1 million villages
600 cities
1.3 billion people
55 million middle-class HHs
292 languages
State-capitalist economy
150m live below poverty line 22 million urban poor
10% GDP growth past 30 years
500 million live on less than $2/day
$7,000 per-capita GDP
25% annual retail sales growth
world’s largest food producer world’s largest pork producer and consumer
largest steel producer; 95% of rare earth
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Multiple brands, evolving consumers
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1,500+ Skin Care products 2,000+ Hair Care products
$140 million in brand counterfeit value
Over 130,000 brands
40% annual growth of disposable diapers
SOEs have most valuable brands
57% of rural Chinese have never brushed their teeth
US$8 billion beauty market
90% of urban women spend 10% on make-up
48% penetration of sanitary napkins
350m middle class
25% annual retail sales growth
45% believe higher prices mean better quality brands
25% annual retail sales growth 10% control 45% of China’s wealth
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Complex media environment
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4,000+ TV Channels National, Provincial, City
300 TV channels in Guangdong
9,000 magazine titles 2,000 newspapers
2,000+ CATV operators
2,900 radio stations 54,000 cinemas
538 million internet users
$62Bn ad spend
Highly regulated
10,000+ Media Brokers
20,000+ Media Agencies
1.1Bn mobile phone accounts
100,000+ Ad Agencies
State-owned Media
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Marketing success is about expansion, renewal, growth
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5 Principles
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Be consumer-‐‑centric, brand-‐‑focused and results-‐‑driven
Build superior products and create relevant brands
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Building Brands for the Chinese Consumer
• Create brand offerings that are grounded in deep consumer understanding
• Leverage strong, aspirational equities in building long-term relationships
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Brand experiences for the Chinese consumer Tier Up: complex regimen counseling
Tier Down: Wash Habits Tier Down: “Kitchen Logic”
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“Preserve the core and
stimulate progress” Strong fundamentals and an innovation mindset
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• Strengthening the fundamentals can drive short
and long-term brand growth
• Leverage a strong core in enabling value creation and innovation
Fix-‐‑and-‐‑Innovate
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P&G: Fixing costs created value
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2002 2003 2004 2005
TV CPM
GRPs
SOV
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…and enabled innovation
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Data should enable, not disable Don’t be enslaved by data and measurement
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Data to enable, not disable
• Challenge the status quo and create information
and measurement solutions as needed
• Humanize your data to create deeper measurement relevance
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Creating measurement and data “solutions” to connect with our consumer
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Her Insights… How to connect With her…
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Build and Orchestrate Collaborations Leverage partnerships in maximizing ideas
and enhancing capabilities
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“Connect and Develop”
• Source innovation ideas, opportunities and best practices from external partners
• Leverage external partners as an extension of your organization, enhancing operational capability and capacity
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Building an ecosystem of partners
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Create a culture that thrives on operational excellence
Build the organization and the business
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Operate with excellence
• Anchor your operations on purpose, values and principles
• Set BHAGs – Big, Hairy, Audacious Goals
• Create value everyday and operate an innovation-enterprise
• Command from the ivory tower but work in the trenches
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Client and Agency ‘Line-‐‑of-‐‑One’
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Our 5 Principles
• Be consumer-centric, brand-focused, results-driven
• “Preserve the core and stimulate progress”
• Data should enable, not disable
• Build and orchestrate collaborations
• Create a culture of operational excellence
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Principles at work for Pampers: The purpose-‐‑driven diaper
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Baby Stages of Development WHO: “Achievement Mom”
WHAT: Shared Baby Experiences
HOW: Holistic Communications Prime Prospecting : Insights
1. Mom Bonding 2. Information Lusting 3. Personal Conversation
Customized TV - Branded Content - Home Shopping
Digital/Print Channels - Digital Communities
Experience Channels - Shopper Marketing - Direct-to-Consumer
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Key Initiative Success Metrics
• Effective long-term connection with the ‘Achievement Mom’ (Prime Prospect)
• +20% vs. sales goal (in 3 months)
• +24% shipment increase in Shanghai; 3X faster vs. other markets
• TV Home/On-Line Shopping: Identified a new retail channel in partnership with SMG
• China Pampers Marketing Spending ROI at $1.45 (#2 in company; #2 after North America)
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