innovation and the earned brand - japan

Innovation and the

Earned Brand

Consumers are embracing innovation

at a faster pace than ever before…

The Earned Brand | Edelman 2015 | pg 2

LINE MUSIC / Apple music / AWA

Innovation of products and technology

Innovation of communication

Innovation of business model and

industry structure

Q349-351. Below are a number of statements. For each, please think about the pace of development and change in business and industry today and select the response that most

accurately represents your opinion. (Not Enough, Too Much) Informed Publics, 27-country global total. (2015 Edelman Trust Barometer)

The pace of development and

change in business and industry today is…


28%

TOO FASTJUST RIGHT

19%

51%

TOO SLOW

And yet many feel the pace of business

innovation is too fast

29%

TOO FASTJUST RIGHT

29%

36%

TOO SLOW


And what can the

rest of us learn

from this?

Why the contradiction?

How are today’s

fastest-growing

brands convincing

consumers to accept

the risks that come

with innovation?

What are

consumers’

real feelings

about innovation?


What is innovation?

A re-imagination of categories,

products, services, operations,

models, design, etc. that create

more value, for the brand and

for consumers

The Earned Brand Methodology

Timing

April – May 2015

Quantitative Online Survey

10 countries: U.S., Mexico,

Brazil, France, Germany, U.K.,

China, Japan, India, Australia

10,000 respondents, nationally

representative of age, gender,

and region based on most

recent country status data

Behavioral Focus Groups

16 millennials in New York and

London

Mobile Diaries

25 millennials, with them on their

mobiles, for 2 weeks, in Brazil,

U.K., India, China and the U.S.


A global survey of

consumer attitudes

toward brand innovation


People believe in the promise of innovation.

Insight 1

Q5P1: Please select the statement from each group that best represents how you feel. (Innovation is just an overused

term, it’s not leading to anything) vs. (Innovation is essential for us today and it’s helping us to progress). Q5P4: Please

select the statement from each group that best represents how you feel. (Innovation is making us more and more like

robots) vs. (Innovation is opening the human spirit) 10-country global total and in Japan.

Percent who agreed with each statement:

Innovation inspires people

92%

innovation opens

the human spirit

innovation is essential

and it’s helping us

to progress

77%

92%

72%


And they believe that business has

the biggest role to find the next big thing

Q15. Where do you think the next big thing will come from?

The next big thing

will come from…


BUSINESS

30%

INDIVIDUALS/PEOPLE

LIKE ME

79%

36%

ACADEMICS/UNIVERSITIES

17%

85%

29%

They believe that brand

innovation should have big

goals with societal impact

Q14. What do you think the role of innovation is for brands today and in the future? (in the future) 10-country global total and in Japan.

to improve society

to push our thinking as a society

69%

66%

63%


agree that brand innovation

needs to impact society(one or more of the following)

in9 10

68%

58%

65%

to let us be one step ahead of other countries

65%

51%

26% 25%

14% 12%

45%

28%

44%50%

19%

37%

Technology Mobile Energy Health care Food and beverage Education

But they believe that innovation should come from

industry sectors beyond technology and mobilePercent who say they see innovation coming from each industry sector today, and who want to see it from each sector tomorrow:

INNOVATION GAP

18 2525

5

INNOVATION TODAY INNOVATION TOMORROW

WANT LESS TOMORROW WANT MORE TOMORROW

45%

34%

20%30%

6% 3%

39%

18%

38%45%

9% 8%

Technology Mobile Energy Healthcare Food and beverage Education

Q65: Thinking more specifically about the innovation in the products and services you use throughout your life, what industries do

you see the most innovation in TODAY? Q66: … what industries do you want to see innovation in TOMORROW? In Japan

18 1553

Healthcare

And they question your motives

66%

70%

65%

69%67%

61%

65% 65%67%

62%

65%

Global Australia U.K. U.S. Japan France Germany Brazil China India Mexico

Q14. What do you think the role of innovation is for brands today and in the future? (today) 10-country global total and in Japan.

Percent who say the role of innovation for brands today is “to make more money for the company”:


consumers believe brands are innovating to make more money for the company

in2 3


Insight 2

Consumer acceptance of brand innovation cannot be bought.

It must be earned.

The stakes:Because of their concerns, they’re not buying

Q27. Thinking about the below, please indicate which of the following you feel is happening in the world today. … IMPACT ON PURCHASING

DECISION 1 = Has no impact on what I buy … 4 = Makes me not want to buy something.

say they will not buy

because of their concerns

Percent who feel that each is happening in the world today, and percent

who say their concerns makes them not want to buy something:


87%

Security

Concerns

Privacy

issuesImpact on

Environment

Being

always on

81%

2 in 3 have privacy concernsPrivacy concerns are especially strong in

Germany, the U.K., the U.S. and Australia.

66%

74%

61%58% 56%

76%

55%

66% 64%

71%75%

Global Australia Brazil China France Germany India Japan Mexico U.K. U.S.

Q22. Thinking about the below, please indicate which of the following you feel is happening in the world today.

Percent who feel that each is happening in the world today –privacy issues:

66%


Privacy issues

“I don’t care if they know I go to the

grocery store—but I don’t want them to

sell information to that grocery store.”

Source: Mobile Diaries

1 in 2 have security concernsSecurity concerns are highest in Japan and the

U.S., and less of an issue in China.

54%

69%

51%

33%

49%44% 44%

75%

41%

64%

71%



Percent who feel that each is happening in the world today –

your security being compromised:


54%

Security

“Some back door issues may leak

personal information, including

personal banking details.”


And the majority have concerns about the impact on the environmentEnvironmental concerns are global, but strongest in Europe and Latin America.

58%61% 62%

52%

62%66%

54% 52%

62%

54%51%




impact on the environment:


58%

Impact onenvironment

“Technology and innovation bring

convenience, but it brings problems,

too. Cars change my life, but too

many cars result in air pollution,

traffic jams and parking problems.”


1 in 2 concerned about having to be always onGermany and Brazil are most concerned; Japan and China are less so.

50%54%

65%

36%

53%

63%

41%

29%

57%

46%

53%




having to be always on:


50%

Beingalways on


Insight 3

While the promise of

innovation inspires,

people first need

to be reassured.

Consumers are twice as likely to want to be

reassured than inspired by a brand

Q35: When a brand tells me about something, I

want it to… “Reassure me of quality,” “Inspire me”


people want to be

REASSURED

in2 3

people want to be

INSPIRED

in1 3

37% 38%64% 65%

We may be innovating,

but we are failing them as marketers

Q20: Thinking about change in the past 5 years, how do you feel the [ … ] industry has evolved in relation to the following

factors: How brands in this sector…(communicate with me) / (listen to me) // (moving in wrong direction)

Percent who feel that brands have changed a lot, and proportion who

feel that this is the right or the wrong direction:


say brands are not moving

in the right direction in how

they communicate

in2 3

They feel like brands are shouting at them

What brands say doesn’t feel real

Q21: Please indicate how much you agree or disagree with the following statements. (I’m getting bored/frustrated by constantly being told I

need to upgrade/update the products I already have.) (Top 2 box). 10-country global total and in Japan.Q8P1: The way magazines, the

internet, advertising, can all enhance photos… (Makes me more inspired than ever before by what I see) vs. (Makes me wonder what is real,

and what I should believe) 10-country global total and in Japan.


57%

because of photo manipulations

in advertisements and online

they don’t know what to believe

are bored/frustrated

by constantly being told

they need to upgrade/update

60%

55%

75%


Insight 4

“I rely on my peers to reassure me. Because their experience is my evidence.”

We’ve always known that peers provide recommendations, but today peers also help convert purchasers

Q41: Thinking about the conversations you have online and offline with friends and other people like you about brands, products and

services you purchase, what impact do they have on you?

The impact of online/offline conversations about

brands with friends and other people like me:

Build inspiration

Push consideration

Moment

of

Truth

16%

17%

25%

27%

29%

37%

44%

45%

They give me a sense of community

They get me

They push me to try new things

They suggest products/services

They make me trust the brand more

They help me overcome concerns

They help me make decisions

They warn me about the risks


8%

3%

16%

19%

18%

25%

45%

47%

Mobile DiariesWhen millennials want to learn about brand

innovation, their go-to channels are peer-to-

peer: Skype, Whatsapp, Facebook and SMS.

Behavioral Focus GroupsBiometric testing showed that peer-to-peer channels

(Twitter, blog posts, word of mouth) had a greater

impact, by a 6 to 1 margin, on changing opinions about

the risks of new innovations than advertisements.


Mobile diaries with 25 millennials in 5 countries. Behavioral focus groups with 8 millennials in New York and 8 millennials in London.

The channels consumers rely on to be reassured are peer-to-peer, rather than brand-to-consumer

Brands win if they power the peer conversation

Percent who agree with each statement:

“Co-create with customers the things that make

them happy” is the philosophy of the Nescafe

Ambassadors program. While we have built a basic

mechanism, we need to continuously evolve by

adding new components. Otherwise customers

will lose interest. We work with the Ambassadors to

evolve the program.”

Nestlé Japan Ltd.

Q36. How much do you agree or disagree with the following statements? 10-country global total

and in Japan.


60%

I trust a brand more if

it encourages me and

and other customers

to review its products

and services

For me to trust a

brand, I need to

know if other people

are happy with it

first.

64%

52%

42%

Reference about Nestle

http://www.asahi-kasei.co.jp/arc/habitus/pdf/habitus-eye_vol_40.pdf


Insight 5

Messaging alone

doesn’t work.

It’s about how your

brand behaves.

Two-thirds of consumers are undecided about innovation. What do they need from brands?

Last mover First mover

8% 15%

Percent of respondents who fall into each

consumer innovation typology:


Methodology: Statistical analysis of consumer groupings based on their attitudes to brand innovation showed that 66% of

consumers are open to innovation—but have concerns that need to be addressed before they will buy. They also have specific

expectations for how brands must behave to address those concerns. Other consumers were either “first movers” (15%), “last

movers” (8%), or resistant to innovation (11%).

66%

Undecided Consumers

What undecided consumers need from brands when it comes to innovation

Reassure me about

my personal concerns

Inspire me by doing

something new and different

Show me how I can

participate in your brand

Reassure me about

my societal concerns


Statistical analysis of consumer groupings based on their

attitudes to brand innovation, and their risk concerns.

Source: mobile diaries, qualitative

groups and quantitative segmentation

The 4 brand behaviors that address consumer needs around innovation:

Have a

Purpose

Inform

and Educate

Make

your Mark

Live your

Character

Reassure me about my

personal concerns

Inspire me by

doing something

new and different

Show me how I

can participate

in your brand

Reassure me about my

societal concerns


Brand Behaviors

Source: mobile diaries, qualitative

groups and quantitative segmentation


The Earned Brand

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 reason for being – one that defines not just the communications, but how the brands behave online, off, and in all contexts.

An expressed set of values informs what products are made, what language is used, how customers are treated, and ultimately the legacy the brand leaves in the communities it serves.

Earned Brands empower conversations among peers.


Innovation and the Earned Brand

People believe

in the promise

of innovation.

Consumer

acceptance of

brand innovation

cannot be bought.

It must be earned.

While the promise

of innovation

inspires, people

first need to

be reassured.

“I rely on my

peers to

reassure me.

Because their

experience is

my evidence.”

Messaging alone

doesn’t work.

It’s about how

your brand

behaves.

1 2 3 4 5

Innovation and the

Earned Brand

Thank you.

innovation and the earned brand - japan

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