A values shift is reshaping America. The presentation outlines how this is happening. By moving from mindless to mindful consumption we can reinvigorate, business and society for success in the 21st century.
7. AFTER YEARS OF INDULGENCE,
AMERICANS ARE SPENT
10 Source: The Atlantic Copyright John Gerzema/Young & Rubicam
8. AMERICAN’S HOMES NO LONGER
PERSONAL LINES OF CREDIT
13 Source:Us Department of Housing and Labor, 2009 Copyright John Gerzema/Young & Rubicam
9. HOUSING VALUES CONTINUE TO DECLINE
ACROSS THE U.S.
12 Source: “Irrational Exuberance”, 2nd edition, 2006, by Robert J. Schiller Copyright John Gerzema/Young & Rubicam
10. THIS PERIOD MARKED BY MOST JOB LOSSES, WEAKEST
RECOVERY
16 Source: Change in Nonfarm Pay rolls, Reported Monthly, Bureau of Labor Statistics, U.S Dept of Labor Copyright John Gerzema/Young & Rubicam
12. DEALING WITH THE STRESS
OF THE CURRENT ECONOMY
3 Source: Comscore Copyright John Gerzema/Young & Rubicam
13. MASLOW UPENDED
20
07
20
09
19 Source: American Progress.org February 2009 Copyright John Gerzema/Young & Rubicam
14. MOVING FROM MINDLESS TO
MINDFUL CONSUMPTION
PRODUCER OF QUALITY RATHER
THAN CONSUMER OF QUANTITY
32
39 Copyright John Gerzema/Young & Rubicam
39
15. WE EXAMINED 15 YEARS
OF DATA FROM BRANDASSET
VALUATOR®
WORLD’S LARGEST 40,000 BRANDS QUARTERLY U.S.
DATABASE OF PANEL OF 15,000+
BRANDS 215 STUDIES RESPONDENTS
OVER 500,00 ACROSS 44 72 DIFFERENT
CONSUMERS COUNTRIES BRAND METRICS
15
16. THE NEW RULES OF
‘POST-CRISIS CONSUMERISM’
NEW CULTURAL VALUES
NEW CONSUMER BEHAVIORS
NEW MANAGEMENT PRINCIPLES
49 Copyright John Gerzema/Young & Rubicam
17. POST-CRISIS CONSUMERISM
RULE #1
CULTURAL VALUE = LIQUID LIFE
CONSUMER STRATEGY = DÉCLASSÉ
CONSUMPTION
MANAGEMENT = DOLLARS AND
PRINCIPLE SENSE
56 Copyright John Gerzema/Young & Rubicam
18. DÉCLASSÉ CONSUMPTION CULTURAL VALUE=LIQUID LIFE
CONSUMER BEHAVIOR = DÉCLASSÉ CONSUMPTION
MANAGEMENT PRINCIPLE= DOLLARS AND SENSE
18 Copyright John Gerzema/Young & Rubicam
26. DOLLARS AND SENSE CULTURAL VALUE=LIQUID LIFE
CONSUMER BEHAVIOR = DÉCLASSÉ CONSUMPTION
MANAGEMENT PRINCIPLE= DOLLARS AND SENSE
26 Copyright John Gerzema/Young & Rubicam
32. POST-CRISIS CONSUMERISM
RULE #2
CULTURAL VALUE = ETHICS AND
FAIR PLAY
CONSUMER STRATEGY = EMPATHY AND
RESPECT
MANAGEMENT = VALUE AND
PRINCIPLE VALUES
32 Copyright John Gerzema/Young & Rubicam
33. EMPATHY AND RESPECT CULTURAL VALUE = ETHICS AND FAIR PLAY
CONSUMER BEHAVIOR = R-E-S-P-E-C-T
MANAGEMENT PRINCIPLE = VALUE AND VALUES
54 Copyright John Gerzema/Young & Rubicam
40. VALUE AND VALUES CULTURAL VALUE = ETHICS AND FAIR PLAY
CONSUMER BEHAVIOR = R-E-S-P-E-C-T
MANAGEMENT PRINCIPLE = VALUE AND VALUES
55 Copyright John Gerzema/Young & Rubicam
48. POST-CRISIS CONSUMERISM
RULE #3
CULTURAL VALUE = INDESTRUCTIBLE
SPIRIT
CONSUMER STRATEGY = DURABLE LIVING
MANAGEMENT = BRAND THAT
PRINCIPLE LASTS
50 Copyright John Gerzema/Young & Rubicam
49. DURABLE LIVING CULTURAL VALUE = INDESTRUCTIBLE SPIRIT
CONSUMER BEHAVIOR = DURABLE LIVING
MANAGEMENT PRINCIPLE = BRAND THAT LASTS
51 Copyright John Gerzema/Young & Rubicam
55. BRAND THAT LASTS CULTURAL VALUE = INDESTRUCTIBLE SPIRIT
CONSUMER BEHAVIOR = DURABLE LIVING
MANAGEMENT PRINCIPLE = BRAND THAT LASTS
55 Copyright John Gerzema/Young & Rubicam
63. POST-CRISIS CONSUMERISM
RULE #4
CULTURAL VALUE = RETURN TO THE
FOLD
CONSUMER STRATEGY = COOPERATIVE
CONSUMERISM
MANAGEMENT = COMMUNITY
PRINCIPLE ORGANIZER
59 Copyright John Gerzema/Young & Rubicam
64. COOPERATIVE CULTURAL VALUE = RETURN TO THE FOLD
CONSUMER BEHAVIOR = COOPERATIVE CONSUMERISM
CONSUMERISM
MANAGEMENT PRINCIPLE= COMMUNITY ORGANIZER
64 Copyright John Gerzema/Young & Rubicam
72. COMMUNITY ORGANIZER CULTURAL VALUE = RETURN TO THE FOLD
CONSUMER BEHAVIOR = COOPERATIVE CONSUMERISM
MANAGEMENT PRINCIPLE= COMMUNITY ORGANIZER
72 Copyright John Gerzema/Young & Rubicam
80. THE CHINESE CHARACTER FOR CRISIS
ALSO MEANS OPPORTUNITY
BAD COMPANIES ARE DESTROYED
BY CRISIS. GOOD COMPANIES
SURVIVE THEM. GREAT COMPANIES
ARE IMPROVED BY THEM.”
—ANDY GROVE
65 Copyright John Gerzema/Young & Rubicam
81. RECESSION-PROOF
YOUR BRAND
JOIN THE CONVERSATION AT
THEBRANDBUBBLE.COM
ON FACEBOOK
OR TWITTER
@JOHNGERZEMA
81
Editor's Notes
Dip = Snip: As Economy Drops, Vasectomy Rates Rise
‘Bling’ doesn’t sing (P. Diddy)
Frugality on the runway (Duckie Brown)
Luxury brands are waning
Net a porter and pop up shop
High end haggling in fashion
Interest in flash sales (Woot.com)
Inconspicuous consumption (Gilt Groupe)
Don’t swagger down Fifth avenue
Bargaining is very ‘rock & roll’ (Radiohead)
Recessionistas have taken over
Forensic Budgeting
Lagerfeld “Cheap is an ugly Word”
Haggling is in
Attack a weaker competitor (Campbell’s)
Educate and invest in your customers (Microsoft)
Revamp Promotion Calendars (Frito-Lay)
Attack the incumbent with efficiencies (Miller)
Line extend/Life extend (Tide)
Protect and enhance your assets (Pella)
Mine For Unnecessary Waste (KelloGg)
Change definitions of ownership: (Avelle)
Innovate and cut costs at the same time (Stone Hearth)
Go direct (Toll Brothers)
Make Your Rival Seem Small (Ben & Jerry’s)
Offer certainty (Hyundai)
Offer value beyond price (Kraft Foods)
FED EX Free Resume Day
Seeking brands that support similar beliefs
and causes
Be transparent (Whitehouse.gov)
User revolt and response (Facebook)
ENCOURAGE CONSUMER PROBLEM SOLVIN (LEGO)
CONSUMERS EXPECT YOU TO Don’t stop believing
going grass roots and green (True North)
Cultural shift toward scorning greed
Consumers expect to be reassured during a crisis
Protest against FARC on Facebook NEW
Mom/facebook exchange
Create a special member community (Coke)
Be understanding and helpful (Frito Lay)
Celebrate your target audience (Burger King)
Reward your fan club (Starbucks)
Create green packaging (Dial)
Imagine end user benefits (IKEA)
Success of high quality, low cost private label - (Costco)
Forget the reckless (Amex)
Actively listen and respond (Tropicana)
Frame as an affordable necessity (McDonald’s)
Celebrate Frugality (Alpo)
Educate the next generation (ING)
Be transparent (Whitehouse.gov)
Take a stand (Blackspot)
User revolt and response (Facebook)
Different countries, different values? (Yahoo)
Conscious capitalism (Whole Foods)
Fix pricing inequalities fast (Apple)
Consumers are driving and dining out less
Use of coupons is up 300%
private label up 12%
“Swishing” parties to exchange clothing
Repair for shoes, clothes and cars is up 22%
AMERICANS SPENDING IN ‘return to home’
68% of Americans now carry a library card
Spices being used in lieu of expensive foods
Value recipes growing more popular
Craigslist posting 100% increase in traffic
Twittering Politicians
Michelle Obama is growing food on whitehouse grounds
flexible working
keeping cars longer
The median avg of cars in operation hit a record of 9.4 years in 2007 (RL polk)+ %  of cars taken out of circulation fell to 5.1 % lowest ever, forcing dealers to secure more cars through auctions than ever before; consumers avoid anything OOP
Stretch Mom’s budget (Campbell’s)
Don’t be pointless (Miller)
Fine tune your message (Accenture)
Make green, green (Xerox)
Exploit a weakness (McDonald’s)
Change reference set (Prego)
Help consumer defer purchases (Sears)
think beyond today (data) Extend the life of other purchases (Ziploc)
Offer tangible new benefits (Fidelity)
Reconsider your segmentation (Mr. Clean)
Stand behind your brand (Special K) Trade down to grow (Starbucks)
Take on a misconception (Fiber One)
Change frame of value (Gillette Fusion)
Resurrect a benefit (Continental)
Consumers turn to each other for advice (Yahoo! Finance)
Consumers more trusting in each other than institutions (Prosper)
Helping each other find value by sharing deals, services, and products (Mint)
Financial social networking (Covester)
Consumers creating their own marketplace (Etsy)
TRUST YOUR NEIGHBOR’S REVIEW (YELP)
Keep innovating (Vanguard)
Move to micro-offers (Dell)
Actively listen (Wal-Mart)
Develop mobile shopping assistance (Amazon)
Optimize your SEO (Blendtech)
Elicit continuous customer feedback (Starbucks)
Live your culture through Twitter (Zappos)
Partner to bring virtual promotions (Kroger)
Increased ad spend and strong digital ROI (General Mills)
Giving back to communities (Frosted Flakes)
Extend your brand into social forums (J&J)
Invest in the Individual (Ford)
Leverage your people as trust marks (Wal-Mart)
Create customer transparency and access (Sun)