Change Agent april 2004 hollywood ending

CHANGE AGENTTHE MARKET RESEARCH MAGAZINE THAT IS DRIVING CHANGE IN GLOBAL BUSINESS – PREMIERE ISSUE / APRIL 2004

TEST SCREENINGTAKES OVER THE DIRECTOR’S SEAT

ASIAN FOOD FIGHTHEATS UP 10WHEN DOES UNCOOL BECOME COOL? 29LAND ROVER NAVIGATESTHE HISPANIC MARKET 14

HOLLYWOODENDING

APRIL 2004 CHANGE I AGENT 3

THE 800-POUND GORILLA

EDITOR’S NOTE

MICHAEL M. CLEMENTS MANAGING EDITOR

I t’s an age-old question: when does independence cease to be independent? Michelangelo – and in fact some of the world’s most highly regarded artists – have benefited through the generosity of sponsors. Should paintings in the Sistine Chapel be regarded as any less because of this? Certainly not. On the other side of the coin,

many creations that claim to be independent – be they magazines, films or sculptures – have filters they must run through. It’s not always cut and dry.

Independence is a question we also face at Change Agent – under admittedly much less pressure than the Pope placed on Mr. Michelangelo. Started with the backing of global market research company Synovate, Change Agent could have easily become a mere catalogue of successful case studies, self-congratulations and company PR. But where would that lead us? Probably into your dustbin, I imagine. So, I’m taking the 800-pound gorilla out of the living room and introducing it to all our readers… Hi. This is Change Agent – a magazine about market research started by Synovate.

Even our writers had some questions about this. Kevin R. Downey, who penned our cover story, asked me carefully: “What if some of my interviews paint market research in a negative light?” My answer was simple: good. Only with objectivity and journalistic integrity will the magazine succeed.

We want Change Agent to be a tool for your business success. We like to think we’ve achieved this is in our premiere issue. Kevin’s piece on the importance of focus groups in Hollywood is an eye opener, which fundamentally expresses what our magazine is all about – showing how market research is a key driver for businesses today. Other articles such as Land Rover’s use of market research to attract Hispanic car buyers in the U.S.A., and how charities are turning to CRM to increase donations, also highlight the practical importance of market research. Whereas Chris Kyme’s op-ed “When Does Uncool, Become Cool?” is a lesson any business should consider.

Simply put, Change Agent is about exploring, as objectively as possible, the many facets of market research and highlighting what it means to clients and agencies alike… with as few as possible fig leaves painted in along the way. ▲

Respectfully,

Have a great idea for CHANGEIAGENT? Contact us and tell us what you’re thinking!

THE MARKET RESEARCH MAGAZINETHAT DRIVES CHANGE IN GLOBAL BUSINESS

EDITORIAL TEAM

“Change Agent” is published by Motiv8 Publishing Ltd. on behalf of Synovate Ltd. All rights reserved. This publication may not be sold. No part of this publication may be other-wise reproduced, adapted, performed in public or transmitted in any form by any process without the prior authorization of Synovate Ltd. ©Synovate Ltd., 2004.

EDITORIAL OFFICE 2106 Causeway Bay Plaza II, 463 Lockhart Road, Causeway Bay, Hong Kong Tel (+852) 2892 1322 Fax (+852) 2893 0320 www.m8publishing.com SUBSCRIBE: www.synovate.com/changeagent FEEDBACK: Michael Clements [email protected] Tel (+852) 2836 8977 ADVERTISING Chris Baker [email protected] Tel (+852) 2836 8910

PUBLISHING AND BUSINESS TEAMS

ALICIA KAN Publisher [email protected] BJORN FJELDDAHL Publisher [email protected]

CHRIS BAKER Advertising Director [email protected]

ALIENA LAI Circulation Manager

CONTRIBUTORS

ADRIAN CHEDORE Global CEO, Synovate VICTORIA DAVIDSON Marketing Manager, Synovate

KEVIN DOWNEY Writer / reporter Los Angeles, U.S.A.

HOLLY EDMUNDS Managing Partner RS Consulting, U.S.A. CHRIS KYME Partner, Bang! Hong Kong

DAVID WONG Writer / reporter Hong Kong

CHANGE AGENT

ALICIA KAN Founding Editor

MICHAEL M. CLEMENTS Managing Editor

EMILIO RIVERA Design Director

RAYMOND Editor PHATHANAVIRANGOON

PAUL SMITH Senior Writer

ENDING

ESSENTIALLY. . .TEST SCREENING TAKES OVER THE DIRECTOR’S SEAT.

16ALTERED STATES

Ever wonder howyour favourite movie

was supposed to end?

19

HOLLYWOOD

10FOOD FIGHT France and Australia

battle for a bigger slice of the Asia Pacific pie.

EDITOR’S NOTE 3 TREND AGENT 6 FIELD REPORT 8 CASE FILES 14 CLIENT SIDE 26 LITERARY AGENT 28 OPEN MIND 29 FIGURATIVELY SPEAKING 34 TALES FROM THE FIELD 35

CHARITABLE OFFENSE The days of nickel and dimeing it are over for non-profi t groups. Their new

benefactor? Hybrid CRM programmes.

24

MISSION REPORT It’s a jungle out there...

just ask any researcher in the fi eld.

35

. . .IN THIS ISSUE

“WHAT’S IN A COLOUR? PLENTY, PARTICULARLY WHEN IT COMES TO THE IMAGE OF YOUR BRAND AND PRODUCT. KNOW YOUR MARKET, RESEARCH THEIR COLOUR RESPONSES, SOLICIT FEEDBACK AND MAKE CHANGES IF NEEDED.”

WHEN RESEARCH GOES AWRY...

AGENT

6 CHANGE I AGENT APRIL 2004

Ever wonder what researchers talk about at conferences,

but too busy to attend? No problem, our agents go for you.

Here were two hot topics at the recent Market Research Society

conference in London:1. The marketing industry, including market research,

must come to terms with the fact that people today are both

knowledgeable and cynical about its techniques. It should learn

from Marxism, give up its obsession with the search for profit

and concentrate instead on “serving consumers.”

2. Companies are now judged like politicians and, like them,

need to try continually to secure popular approval, partly through

frequent opinion research. ▲

CONFERENCE DOSSIER

TREND THE LATEST TIPS, TOOLS AND MARKET RESEARCH INTEL

OUR AGENTS GO DEEP INTO THE FIELD, SO YOU DON’T HAVE TO. . .

Unlike the flowery praise that many industries heap on themselves at conventions, attendees at the recent World Advertising Research Center’s Pre-Testing Advertising conference were asked to discern whether or not ad pre-testing has kept pace with new thinking on the way consumers interact with adverts. The crux of the argument was that pre-testing’s current foci – awareness, impact and recall – are based on the outdated “hierarchy of effects” model of advertising, which states that people interact with advertising using a “think-feel-do” process.

Some delegates voiced that ad-testing should instead assess how advertising impacts the “brand-person relationship”. Meaning, measurement should not only focus on whether an advert grabs the audience’s attention, but also how it changes perceptions and feelings towards a brand as well as whether it evolves a brand’s name. “The new emphasis on advertising is to modify consumer’s feelings towards brands, and pre-testing’s job is to measure that,” said Add+Impact Chairman Spike Cramphorn. ▲

SPECIAL ASSIGNMENT: PRE-TESTING BECOMES PASSÉ


Offshoring will significantly boost UK economic growth, according to a report by a market research company, which bases its own business almost entirely on offshoring. ▲

COUNTER INTELLIGENCE

LIGHTER SIDE

Hong Kong has been ranked the No. 1 city in the world for completely meaningless surveys, a completely meaningless survey has found. The SAR scored 107 points, followed by the United States (7), Britain (2) and Antarctica (1).

Scientists who had not seen the study described the findings as “hugely significant in an insignificant sort of way”. In another survey, Hong Kong people were found to have the highest IQ levels in the world. The study, carried out by students as a means of keeping them from taking drugs, drinking alchohol or smoking cigarettes (tick one), included questions such as: Are you stupid? Do you wear shoes? Is Hong Kong nice (tick one)? Are giraffes tall? “A good intelligence test should gauge how intelligent people are,” explained an expert, for no particular reason. ▲ Spike Magazine, 2004

WELL, WHADDYA KNOW?

OFF THE WIRE

UK online job seekers are becoming increasingly senior.

Ethnic and religious majorities in 34 countries feelless safe than ten years ago.

Comprehensive tests revealed no important discrepancies between online and CATI (computer-aided

telephone interviewing) data.

Research quality is the most important issue for media researchin 2004, reveals a UK poll of Media Research Group members.

Many financial institutions throughout the world are still not taking corporate social responsibility seriously.

Without innovation, tracking (continuous monitoring of public awareness and perceptions of advertising

and brands) will become cost-ineffective.

SURVIVAL Clients need relatively simple, nonstrategic, market research information. Such data is often used to support a particular point of view or as a basic benchmark of performance – and it is often resented within the company. Choice factors for choosing a research vendor are price and delivery time. Preferred suppliers tend to be local companies with a focus on data collection.

SUPPORTIVE Clients are more concerned over their immediate competitive environment and look to market research to give them a competitive advantage, or at least to ensure that they are not left behind. Preferred sup-pliers tend to be well established local companies or the local branches of multinationals. Price and delivery are still key, but the reputation of the supplier’s brand provides reassurance that you know what you will be getting.

AUTONOMY A client research department is charged with getting a deeper understanding of the market by collating and adding insight to data gathered. Clients will typically use a roster of companies for this purpose – badge brands associated with particular types of MR, boutiques and local consultants can all contribute. Some will have preferred supplier status, but the relationship tends to be one of client-supplier rather than true partnership.

INTER-DEPENDENCE The agency now shares the responsibility of creating briefs rather than simply responding to RFPs. They assist in ensuring that research is fully communicated and used within the client organisation. They commit to dedicated account teams who are as passionate about the company’s success as the client themselves – indeed their remuneration is linked to this success.

Like personal relationships, those of the client-agency nature must evolve. Synovate CEO Adrian Chedore recently outlined such an evolution during a presentation at the ESOMAR Cross-Industry Global Forum in Miami. ▲

MOVE OVER MASLOW,THERE’S A NEW HIERARCHY IN TOWN

© 1998 Randy Glasbergen


TREND AGENT

AGENT FIELD REPORT

Operation Overwhelm

Mission: Attract shoppers in the image-overloaded land

of the supermarket

Data: 70% of all buying decisions are made at the point

of sale

Usual suspects: Pepsi-Cola Co, Allied Domecq, Cadbury

Schweppes and supermarkets like Target and Kroger

Agent’s report: Even the weariest, most distracted

shopper will have a difficult time ignoring some of in-

store marketing’s newest gadgets like talking floor ads and

audio commercials that trigger when customers step on a

designated spot. Pepsi’s Mountain Dew was one of the first

brands to use motion-activated devices.

Budgets previously earmarked for traditional advertising

are increasingly migrating into co-marketing funds for

retailer-specific national promotions often backed by spot TV

commercials. The bottom line is that in-store displays matter

more than ever, and every inch has to count for more, both

for the marketer and the retailer. ▲

Operation Queer Dollar for

the Straight Company

Mission: Chase the Pink Dollar

Data: It’s estimated that the annual value of the gay and

lesbian market is US$515 billion; 21% of gay and lesbian

households have income greater than US$100,000 per year;

and 28% have income greater than US$50,000 per year.

Usual suspects: AT&T, Allstate, American Express,

Anheuser Busch, British Airways, Calvin Klein, Levi Strauss,

Starbucks, Philip Morris, IBM and Subaru.

Agent’s report: All the above companies have announced

their commitment to the pink dollar by using creative that

either explicitly endorsed the gay cause or pandered to the

homosexual community.

YOUR MISSION? TO INCREASE THE VALUE

OF YOUR COMPANY FOR SHAREHOLDERS

YOUR WEAPON? MARKET RESEARCH...

“The pink dollar offers significantly higher ROIs than

other traditional groups,” noted Dr Stuart Koe, CEO of

Fridae, an Asian gay and lesbian network. “Not only

will marketers be targeting a high-yield group of

potential customers, they also have the potential

of nurturing an extremely loyal group of future

consumers.” ▲

Operation Get Me Gucci

Mission: Designer digs for women without the

designer price

Data: Pam Danziger, President of Unity

Marketing, says that “When men get

stressed, they go to bars, and women go

shopping”. The company’s research also

shows that American women buy for

emotional satisfaction, especially during an

economic slowdown.

Usual suspects: Costco and Wal-Mart

Agent’s report: Premium priced brand

names are surviving despite a sluggish

economy. However, these brand names are

more likely bought at neighborhood stores on

the way home from work than at Rodeo Drive.

Stores like Costco have realised this and began

to specialise in luxury products at minimum

prices. The result? American women are bragging

how they picked up their latest designer product

cheaply on their way home from work. ▲


RE: Blending Creativity and ResearchThe question of whether or not research stifles creativity is an often visited topic of debate – but it doesn’t have to be. Although somewhat biased, here are three simple tips that researchers feel allow clients to get the most out of their creative endeavours: 1. Allow as much involvement as researchers feel is necessary in the creative development process;2. Give the opportunity to research creative concepts at an early stage; 3. Give a sufficient time in the timelines for research to take place and for the results of the research to be digested and acted upon.

YOUR MISSION? TO INCREASE THE VALUE

OF YOUR COMPANY FOR SHAREHOLDERS

YOUR WEAPON? MARKET RESEARCH...

COLOUR OF MONEYWhat’s in a colour? Plenty, particularly when it comes to the image of your brand and product. Where does your brand stand in the colour chart?

1. KNOW YOUR MARKETAre they young? Old? High income? Low income? Male or female? African American or European American? You’ll need to speak their colour language to build a relationship.

2. MARKET RESEARCHIf you are serious about maximising your profits, research your target market’s colour responses. Solicit feedback and make changes if needed.

3. WATCH THE CARMAKERSCar manufacturers spend millions on colour research so you don’t have to. Lexus appears to be especially sensitive to colour.

4. SAFE COLOURSUnless you’re dealing with a strong brand, stick with safe colours. Purple and yellow will never have the positive responses of blue, beige or green.

“The pink dollar offers significantly higher ROIs than

other traditional groups,” noted Dr Stuart Koe, CEO of

Fridae, an Asian gay and lesbian network. “Not only

will marketers be targeting a high-yield group of

potential customers, they also have the potential

of nurturing an extremely loyal group of future

consumers.” ▲

Operation Get Me Gucci

Mission: Designer digs for women without the

designer price

Data: Pam Danziger, President of Unity

Marketing, says that “When men get

stressed, they go to bars, and women go

shopping”. The company’s research also

shows that American women buy for

emotional satisfaction, especially during an

economic slowdown.

Usual suspects: Costco and Wal-Mart

Agent’s report: Premium priced brand

names are surviving despite a sluggish

economy. However, these brand names are

more likely bought at neighborhood stores on

the way home from work than at Rodeo Drive.

Stores like Costco have realised this and began

to specialise in luxury products at minimum

prices. The result? American women are bragging

how they picked up their latest designer product

cheaply on their way home from work. ▲

FOOD FIGHTCHANGE FEATURE


FRANCE AND AUSTRALIAARE BATTLING IT OUTFOR A BIGGER SLICE

OF THE ASIA PACIFIC PIE BY DAVID WONG


e start in France, where, while aware of Asia Pacific’s immense long-term potential, the region only represents about 10% of the country’s total exports. Out of the US$40

billion worth of French agribusiness exports, only US$1.9 billion worth of food products finds its way to Asian dinner-tables. Literally, peanuts.

However, when it comes to beverages, the French are recognised as the undisputed champions of quality alcoholic products. Wines, champagne and cognac represent 60% of the Gallic nation’s total food exports to the Asia Pacific region.

In addition, an international admiration and respect for the culture of French cuisine ensures a number of high-end French restaurants in cities all over the world. With timeless history and elegance on its side, French cuisine has become synonymous with gourmet food and fine wine.

On the other side of the plate, the

Wnewcomer – Australia. In a matter of years, the country has gained substantial ground in market share across Asia. With the help of intelligent and aggressive marketing and enthusiastic government support, Australian foods are ending up on a lot of Asian palates – and we’re not just talking meat and potatoes.

Australia has outgrown its role as a sole supplier of meat, grain and related commodities. So much so that in 2002, processed food exports grew by 25%, surging ahead of unprocessed food growth, which lagged at 12%.

In contrast to France’s aura of old-world sophistication and elegance, Australia represents new-world pragmatism and resourcefulness with a green and clean attitude. Slowly but surely, exporters Down Under are locking their sights on key Asian targets such as Japan, Thailand, Singapore and Hong Kong.

SOMETHING TO CHEW ONAt a recent media launch for South

East Asia FHA 2004, representatives from

Austrade Singapore, a division of the Australian Trade Commission, outlined Australia’s place as a key supplier in the food and beverage market in Asia Pacific’s resilient economy.

“A rapidly growing interest in 24-hour convenience shopping, functional foods and supplements and an emerging coffee-drinking culture is sweeping through South East Asia,” explains F&B Senior Business Development Manager Toh Guek Hong. “The economy is opening up, and big retailers are coming, if they aren’t already here.”

In Singapore, Australia is the overall second largest supplier of food and drink, with the Lion City gobbling up US$380 million of imported food. It also leads market share in meat and dairy products, steadily staying in the 27-30% range.

With an arsenal of powerful brands, a modernised industry and strict environmental protocols to back them up, the Australian government is keenly offering its support to native exporters. In addition, a host of multilateral trade pacts have kept taxes and red tape low.

THE TWO SIDES ARE HUNGRY. . . HUNGRY FOR AGRI-BUSINESS. BOTH FRANCE AND AUSTRALIA ARE BRINGING ALL THEIR CARDS TO THE TABLE TO SEE WHO CAN CONQUER THE EAST. BUT IN HISTORY, DISTANCE AND METHOD, IT’S LIKE COMPARING APPLES AND ORANGES.

“A RAPIDLY GROWING INTEREST IN 24-HOUR CONVENIENCE SHOPPING, FUNCTIONAL FOODS

AND SUPPLEMENTS AND AN EMERGING COFFEE-DRINKING CULTURE IS SWEEPING THROUGH

SOUTH EAST ASIA.”


CHANGE FEATURE

Geographic proximity is also on Australia’s side – fresh products, for example, can be shipped almost overnight. But it’s not just physicality that is strengthening ties between the country and the region – cultural migration is also playing a part.

“Australia has a diverse Asian community base, which helps to pass on a more everyday understanding of their food culture to non-Asian Australians,” says Synovate Business Consulting Director Damien Duhamel, who recently published an article on the growing rivalry between French and Australian food interests.

“Dishes like gado gado and dim sum are very familiar to locals, and this allows more room for adaptation when it comes

to entering the Asian market.” France, however, doesn’t seem to have the same plans to make such an invasion.

Instead, it is content to focus on the U.S.A. and European markets. Prohibitive tax rates and relatively apathetic government support means that in many ways, exporting into Asia is more trouble than it’s worth, especially for smaller exporters.

This, and France’s long history in the food trade, are holding it back. Systems that worked in the past haven’t been adjusted to the needs of emerging new markets.

“The old, traditional systems aren’t friendly to French exporters, who want to venture into Asia,” says Duhamel.

“There are a lot of restrictions, health

regulations and administrative hurdles that make it very difficult.”

It seems Australia has discovered the right recipe for success in Asia.

GRAPES OF WRATH

While the food battle might be lukewarm, the battle being waged from the vineyards and wineries of the two nations is overheating. Australia is now the third largest wine exporter in the world and has successfully rattled France’s absolute supremacy in the wine market across Asia Pacific.

Friendly to the casual drinker, Australian wine labels are easy to understand and more accessible, compared to complex French wine

FRANCE’S STRENGTHS4 Internationally renowned cuisine, plenitude of French restaurants

and chefs across Asia... image sells

4 Tradition is key selling point

4 Large domestic market and experience

4 Large food MNCs and powerful brands across

most food segments

4 Powerful retailers present in Asia

4 Second largest worldwide food exporter

4 Local diversity is key to diverse and specific export market

needs; knowledge and adaptation help

4 Technical innovation carves niches

4 Green and clean image

4 Proximity to key markets

4 Multi and bi-lateral trade pacts to boost sales

4 Powerful wine distributors

4 Efficient and streamlined supply chain

4 Strong government assistance to exporters

AUSTRALIA’S STRENGTHS


regions and origins. Thanks to affordable prices and strategic targeted marketing, Australian wines have become recognised as a reliable choice for a nice glass of wine.

“New wine drinkers drink a lot of Australian wine,” states Patrick Delafuente, Managing Director of Hong Kong-based alcohol and wine-importers Links Concept. “They like it because it’s easy to drink, easy

to buy and it guarantees a nice drop.”With the backing of large-scale

companies like Beringer Blass, Southcorp and Orlando Wyndham spearheading massive marketing budgets to attract new and experienced drinkers alike, Australia is well armed and positioned to thrive in Asia.

Nevertheless, France reigns supreme worldwide. As the home of high-end wine, even the most amateur connoisseurs will eventually be drawn to the French labels. As tastes become more attuned, interested wine-drinkers will seek out whatever wine is perceived to be the best, and France’s formidable image is not easily challenged.

For the most part, France has been able to rely on its bulletproof reputation to fend off the aggressive moves that Australian suppliers have been making with well-focused marketing strategies and implementations.

According to Sherine Yung of Singapore-based Caldbeck Wines & Spirits, the lull in

French marketing activity will end soon enough.

“Promotion of French wines has been a little flat for a long time,” she says. “But they are trying to change their traditional mindset. Among the small old wineries, younger outfits are adopting new strategies and looking to attractively package themselves in a more contemporary way.”

“Wine isn’t such a new thing in Asia anymore,” tells Delafuente. “People are generally more knowledgeable about wines, and the Asian market still tends to lean towards French labels for their top wines.”

Whether it’s the case that the palates of wine-buffs are really becoming more sophisticated – or they merely want to appear more clued-in – is difficult to say for sure. But the fact remains that image sells, and for the time being, it’s just classier to drink French wine.

Clearly, each side is content to hold onto their prospective lucrative pieces of the Asian agribusiness market – France remains dominant in beverages, while Australia is a clear winner, for now, in food. But as competition heats up in the region, expect each country to continue to look for ways to bite into the other’s share of the pie. ▲

“THE OLD, TRADITIONAL SYSTEMS AREN’T FRIENDLY TO FRENCH EXPORTERS, WHO WANT TO VENTURE INTO ASIA.”

CASE FILES


HOLA!

LAND ROVER!CARMAKER JOURNEYS INTO THE HISPANIC MARKETBY PAUL SMITH

ot only have hardy, go-anywhere Land Rover vehicles explored some of the most remote and inhospitable places on the planet, they have penetrated global

markets in a way few car brands can match. In continuous production since 1948, Land Rovers today are sold in more than 180 markets around the world.

So omnipresent are they, it is estimated that for 40% of the people of the world, the very first vehicle they laid eyes on was a Land Rover.

Land Rover branded vehicles also have a dedicated following where it counts the most – in the United States, where it is renowned as a luxury import. In late 2003, a spike in sales to Hispanic drivers in the U.S. prompted Land Rover to take a closer look at the Hispanic market.

The Hispanic sector is certainly important to U.S. car marketers as it represents the nation’s largest minority group with an annual population growth rate of 1.5 million. When it comes to car ownership, they are comparable to the general population with about two automobiles per household. Partially acculturated Hispanics represent the largest group of car buyers.

Land Rover enlisted the aid of Synovate to develop a study that would shed some light on the purchase decision dynamics of Hispanic luxury vehicle buyers.

The study centred around in-depth interviews with more than 900 self-identified Hispanic drivers across the U.S.. Subjects had all recently purchased a new vehicle, or expressed an intention to purchase. The interviews were conducted in the subject’s choice of Spanish or English.

Further goals of the study included exploring attitudes and perceptions of Hispanic luxury automobile owners and the process behind the new automobile purchase. The research sought to determine the part Hispanic social networks play in the

IN 2003, A SPIKE IN LAND ROVER SALES TO HISPANIC DRIVERS IN THE U.S. PROMPTED THE U.K. CARMAKER TO TAKE A CLOSER LOOK AT THIS GROWING CONSUMER SEGMENT. WHAT THEY FOUND LAID THE FOUNDATION FOR A MARKETING EXPEDITION DOWN THE ROAD LESS TRAVELED.


N

THE TYPICAL U.S. HISPANIC LUXURY CAR BUYER SAYS...

4I seek variety

4I like to take risks

4I don’t mind standing out from the crowd

4Price is less important to me

4I like to challenge the capabilities

of my car

4My car expresses my unique personality

4I take great pride in my vehicle

purchase process as well as the importance of peer opinion. The study also aimed to quantify the importance and impact of the Spanish language and targeted media on the purchase decision.

THE RESULTS WERE QUITE REVEALINGLarry Rosinski, Marketing Manager

of Land Rover, reveals, “we learned there were attitudinal elements that Hispanic consumers shared that were consistent with our brand image, and there was alignment between some of the things they felt and some of the things we stand for.”

“For example, a lot of Hispanic consumers tended to index highly on statements like, ‘a sense of adventure is important in my life’ and ‘freedom is an important element of my mindset’. These are exactly the elements that Land Rover also stands for.”

The study identified clear differences between the shopping habits of Hispanics and mainstream U.S. consumers. Hispanics regard shopping as a family event and tend to shop together in larger groups than the general population. Shopping decisions are more consensual – 56% of respondents reported the auto purchase decision was made jointly by two or more people. This suggests that marketers need to influence a wider social network and develop an appeal that reaches more family members.

Land Rover have wasted no time applying their findings. Showrooms are being revamped to include play areas for children and offer more attractions to family groups. Despite the fact that respondents at the highest level of the market considered English language communications sufficient, a clear need to attract the less acculturated purchase decision influencers has resulted in Land Rover paying more attention to Spanish language marketing materials. ▲

“WE LEARNED THERE WERE ATTITUDINAL ELEMENTS THAT HISPANIC CONSUMERS SHARED THAT WERE CONSISTENT WITH OUR BRAND IMAGE, AND THERE WAS ALIGNMENT BETWEEN SOME OF THE THINGS THEY FELT AND SOME OF THE THINGS WE STAND FOR.”

THE TYPICAL U.S. HISPANIC LUXURY CAR BUYER...4Lives in a large metropolitan area

4Lives in a larger household (average 3.5 people vs. national average of 2.6)

4Is partially acculturated

4Likes European and Japanese cars

4Seeks a higher degree of customisation

4Associates driving with freedom

LAND ROVER!


n the darkness of the cold movie theatre outside Los Angeles, on a stretch of desert where the heat ripples in the distance, dozens of chatty teenagers are settling into their plush chairs, hands

reaching for popcorn and soda.The movie is about to start. But

for this group of 300 fresh-faced kids there will be no movie trailers to watch or disembodied voices extolling the virtues of silence.

For that matter, there won’t be the familiar credit and title sequence to kick off the movie, either.

INo, for these kids, all recruited by

officious looking adults toting clipboards on the street, this is not a carefree evening at the local multiplex. Instead, it is a workday of sorts. Their pay? A free movie. Their job? To tell movie directors, producers and movie studio heads what’s good about their unreleased movie and what stinks about it.

As part of what’s called pre-release in-theatre testing, or test screening, these moviegoers and thousands of others across the United States are key decision-makers in determining what 90% of major studio releases look like when they hit theatres.

Even more important, by expressing their likes and dislikes, these people will help set the tone of the marketing strategy used to promote the movie and determine how many millions of dollars will be used to do it.

“Because this is an art and a commerce, people want to see whether their intentions are being delivered on the screen,” says Karen Hermelin, Managing Director for MarketCast, a leading audience testing company.

“Unless they have real people who aren’t themselves watching it, they can’t know.”

HOLLYWOODENDINGTEST SCREENINGS PUT FILM TO THE TESTBY KEVIN DOWNEY

“FIRST OF ALL, WE LOVED ‘LADY WITH A FAN’. PICASSO: THANK YOU. PEOPLE SEEM TO BE VERY EXCITED BY THE PAINTING, AND THE TEST SCORES HAVE BEEN GREAT.”

– Steve Martin, The New Yorker

COVER STORY


HOLLYWOOD


THE RULE OF THUMB IS IF MORE THAN 80% OF THE TEST AUDIENCE SAY SOMETHING IS GOOD, WELL, THEN IT’S GOOD.

While the movie is on, the creative team behind the movie, along with the studio’s marketing team and a handful of researchers, sit in the back of the theatre. They listen for responses from the group, including laughs when there should be laughs; gasps when there should be gasps; and, with luck, very little of the squirming so familiar to everyone who has sat through a bomb.

After the movie is over, the people who watched it will fill out a one-page questionnaire, answering questions such as, “How would you describe the film when talking to your friends?” Or, “To whom would you recommend this movie?” The questions are almost always the same, although a few are specific to the movie being tested.

Nearly two dozen people will then be pulled from the audience to get together for a focus group. There they’ll talk about the movie with researchers from market research companies. The researchers then compile the findings and present them the next day to the filmmakers and studio executives, some of whom don’t want to know what the audience had to say.

The rule of thumb is if more than 80% of the test audience say something is good, well, then it’s good.

If not, the Hollywood post-production machine gets to work on reshaping the movie. Audience testing is used to determine many things, but whether or not the movie will become a blockbuster isn’t typically one of them.

More often, the test screenings are used to figure out who the audience for the movie will be and, more important, which parts of the film need to be tweaked, rethought, re-shot, or, in worst case scenarios, radically overhauled.

When changes are made, most often it is to the movie’s ending. A rough estimate is that half of all tested movies are re-shot and about half the changes are made to the ending. The reason for that, say directors, is that endings are usually the most difficult scene to get right. And the ending can be critical to a movie’s success, since it’s likely to leave an impression on moviegoers.

“You can certainly diagnose what your problems are,” says David Madden, Executive Vice President at Twentieth Century Fox and

producer of “Against the Ropes,” “Runaway Bride” and other movies.

“But if you go into a focus group with 20 people and someone says, ‘Oh, you should cut out that character,’ and then the studio says, ‘Well, look, that person says you should cut out that character.’ That’s where it becomes a dangerous weapon. It’s nerve-wracking.”

Nerve-wracking because these people pulled off the street will help decide if a creative team, often having spent years on a project, has done a good job or a lousy job. Beyond that they will help studios figure out how much financial support they will give a movie.

“Based on those previews they map out a marketing campaign and assign a budget to it,” says one audience research executive.

“If you have a $100 million movie, you’re going to have a big marketing budget. If you have a $30 million movie, you’re going to have a small budget. But if you have a $100 million movie that tests poorly you may have a very small budget.”

It’s no surprise that audience testing does have its detractors. Hollywood is filled with tales of directors storming out

COVER STORY

DESPITE RUMOURS TO THE CONTRARY, HOWEVER, HOLLYWOOD’S CREDO IS NOT, OR AT LEAST ISN’T ALWAYS, “CREATIVITY BE DAMNED; WE WANT MONEY.”


of test screenings and others, adamant that stiffs off the street shouldn’t mess with their vision, refuse to put their name on a post-test, edited version of their movie.

Kevin Reynolds from the 1991 Kevin Costner movie, “Robin Hood: Prince of Thieves,” for instance, was famously no where to be found when Warner Bros. called in movie doctor Stuart Baird to do a massive edit job on what ultimately became a hit movie.

Audience testing is a part of the Hollywood system few moviegoers know about. But it is also one that virtually every filmmaker and studio executive is quite familiar with.

MAKING THE FINAL CUTDespite rumours to the contrary,

however, Hollywood’s credo is not, or at least isn’t always, “Creativity be damned; we want money.” Still, with millions of dollars on the line, creativity can take a backseat when it comes to ensuring a movie reaches its greatest box office potential. In short, investors want their money back.

The only thing a cuddly alien wanted to do was “phone home,” and get home. In the original version, good old “E.T.” ended up dead. Not after test audiences protested. The world’s most famous interplanetary citizen made it home.

ALTERED STATES: BEFORE AND AFTER THE TEST SCREEN

E.T. – THE EXTRA-TERRESTRIAL (UNIVERSAL, 1982)

Tom Cruise got to show off his karate moves as Agent Ethan Hunt in this sequel, itself a remake of a TV show. Not only did Cruise deliver the chops, but so too did movie editor Stuart Baird. Test audiences didn’t even get to see the original mess. As executive producer, Cruise brought in Baird after director John Woo fumbled with the footage.

MISSION: IMPOSSIBLE 2 (PARAMOUNT, 2000)

Originally called “Diversion,” this classic movie has Glenn Close obsessively chasing after her one-night-stand, played by Michael Douglas. Before test audiences got their say, Close’s character ended all the madness by killing herself. The audience was hungry for revenge, so instead Douglas’ on-screen wife, Anne Archer, put Close out of her misery.

FATAL ATTRACTION (PARAMOUNT, 1987)

If producer John Hughes’ original vision had made it to screen, Molly Ringwald – who sported some rad fashions – would’ve ended up with Ducky the geek (Jon Cryer), instead of Blaine (Andrew McCarthy), the preppy hunk. Teenage girls in the test screenings were outraged. So much for Hughes’ message movie. Post-test, Molly ran off with the handsome prep.

PRETTY IN PINK (PARAMOUNT, 1986)

Perhaps the most legendary of the movie edit jobs following a test screening was the reworking of Julia Roberts’ big break, “Pretty Woman,” in which she played a prostitute (with a heart of gold, naturally). Richard Gere would have left Roberts had test audiences not made it clear that he needed to come back and get his girl.

PRETTY WOMAN(BUENA VISTA, 1990)


COVER STORY

“IF I SAY TO A DISTRIBUTOR THAT EVERY GIRL BETWEEN 15 AND 17 WILL LIKE MY MOVIE, IT MEANS NOTHING. BUT IF I SHOW A REPORT THAT 85% SAY THE MOVIE IS GREAT, THAT IS USEFUL DATA.”

To ensure they get it, many of the movies that achieve blockbuster status get whacked following an audience test.

Among the most well known movies to be reworked is “E.T.,” the top-grossing movie of the 1980s. Before audience testing, the tearjerker was to have the extra-terrestrial dying instead of, as in post-test, flying off to his home planet.

In “Pretty Woman,” Richard Gere’s rich guy was to walk away from Julia Robert’s prostitute, rather than come back and get her.

And in “Fatal Attraction,” test audiences hissed when Glenn Close’s nut job killed herself. The focus group folks must have been pleased to find out later on, of course, that Anne Archer, playing the spurned wife to Michael Douglas’s lousy husband, pummelled Close’s character.

Dramas are considered more difficult to test, as are violent films, while comedies are relatively easy.

“Comedies tend to be previewed more than other kinds of movies because you can look at the timing of how jokes are playing,” says Madden.

“Maybe you need a little bit more air between this joke and the next joke. Or, in

order for a joke to get a laugh you may need to extend a piece. It’s very helpful because you’re getting audible responses.”

To hear proponents of audience testing talk about it – and even most people opposed to it concede there is some benefit to listening to audiences – is to hear about a Hollywood practice that often means the difference between a well received movie and one that prompts movie studios to look for fresh talent.

“What’s amazing to me is how I now look at tracking, test results, focus groups, with feverish passion,” says Marcus Nispel, director of the 2003 remake “Texas Chainsaw Massacre,” as told to Greg Solman of Adweek magazine.

“Before, you question everything, you think it all doesn’t matter. Focus groups? What do people really know? Now that the movie is getting 95% approval ratings, it completely validates that focus groups are geniuses.”

The beauty of audience testing is that it’s a security measure. Not uncommon on Broadway, where for decades it’s been standard practice for plays to work out the kinks in front of audiences far from New York City. It’s also not uncommon

for musical acts to perform before a cosy group of beer-guzzlers well before risking a fortune on a tour.

Audience testing is not uncommon in Hollywood, either. Far from it. In fact, audience testing may sound like a recent reaction to Corporate Hollywood, where escalating movie budgets are matched only by escalating pressures to turn a profit. But it has been in full swing for more than two decades. There was even a bit of audience testing going on in the pioneering days of the 1930s and 1940s.

While test screenings can help a big studio avoid sinking itself with a big-budget fiasco, it can also help the little guy.

“It is a very good tool for talking to distributors,” says Bruno Pischiutta, President and CEO of Toronto Pictures and director of the independent release “…? …Maybe…,” which is debuting in Los Angeles this April.

“If I say to a distributor that every girl between 15 and 17 will like my movie, it means nothing. But if I show a report that 85% say the movie is great, that is useful data.”

THE DOWNSIDEYet, while audience testing is great

and wonderful, there is naturally a downside. Several, actually.

Of course, there is the issue of imposing the public’s two cents on the creative process.

The battle for creative control has always had its place in Hollywood, as it should, and that will always be the case. A few of the newer problems with audience testing are more ominous.

One research executive says it’s not uncommon these days to have studio chiefs persuade research companies to get results from the test audience that they want. The idea is to release a version of the movie they want and not necessarily the one writers and directors have laboured on for years.

A far more pervasive problem is the issue of having unsavoury people infiltrate audience tests, only for the purpose of posting reviews of unreleased movies on websites like Aint-It-Cool-News.com.

More troublesome, is the fact that pirates are in their midst. Research company eMarketer estimates that the movie industry loses about US$3

billion in revenue from people copying and distributing movies online. That’s chump change compared to what the music and software companies are losing. But movie piracy is a growing problem. More than one out of four college students admitted to downloading movies or swapping them on file-sharing programs, according to a 2003 survey.

That has put a bug in the ointment for the movie studios and audience testing companies. Almost all researchers have at least one story about a person in a test screening who filmed the movie as it was being shown.

The movie studios and research companies naturally do their best to weed out these characters. But most also admit there is little that can be done to stop it.

“Sometimes you have them sign legal forms that say they legally agree that they will not do something like that,” says MarketCast’s Hermelin.

“If it’s really a concern, you make announcements; you do what you can.”

That helps explain, in part, why audience testing today is unchanged from what it was 20 years ago. Groups

of people are recruited, sit in a theatre, say their piece and a few spew out verbal gems in a focus group. Rarely does any of this happen online. That’s too risky and it is too difficult to select a representative audience.

“Another thing that makes change difficult is that you have 20 years of normative data,” says James Medick, CEO and Founder of the MRCGroup Research Institute in Las Vegas.

“They can even go back and compare the results to a movie from the 1940s. So if a comedy is expected to rate at a certain level, they know whether they have a breakthrough or a mediocre movie, based on the normative data.”

One emerging change in audience testing is that it’s becoming commonplace around the world.

“You can be part of the test if you live in Kansas, you can be part of the test if you live in Los Angeles and you can be part of the test if you live in London,” says Hermelin. “[International testing] is not as common as it is here. But, both for American product that’s being distributed abroad or local product, it’s happening more and more often.” ▲

“BEFORE, YOU QUESTION EVERYTHING, YOU THINK IT ALL DOESN’T MATTER. FOCUS GROUPS? WHAT DO PEOPLE REALLY KNOW? NOW THAT THE MOVIE IS GETTING 95% APPROVAL RATINGS, IT COMPLETELY VALIDATES THAT FOCUS GROUPS ARE GENIUSES.”


CHANGE FEATURE


CHARITABLEOFFENSE

THE DAYS OF NICKEL AND DIMEING IT ARE OVER FOR

NON-PROFIT ORGANISATIONS –THEIR NEW BENEFACTORS?

HYBRID CRM PROGRAMMESBY DAVID WONG


oronto-based charity Foster Parents Plan (FPP) is part of the International Organisation Plan, a humanitarian, child-centred development group working with families and their communities to offer

support to children in need around the world. Non-political, and with no religious affiliations, child sponsorship is the foundation of the organisation.

Leonard Howe, Director of Sponsor Relations at Foster Parents Plan is the man in charge of keeping track of the attitudes and behaviour of the organisation’s donors with respect to sponsorship donations – funding they rely on 100%.

T“Without donations the charity

wouldn’t exist,” explains Howe. “The charitable dollar is our only dollar, and we face the same challenges as any business in the current economy.”

Although FPP has earned a well-deserved reputation as both a trustworthy and well-organised charity, they faced a growing problem – on a steady yearly basis and without any clear reason, the organisation was losing sponsors. As less sponsors mean less donations, FPP found its lifeline slowly fading away, and Howe needed to figure out why.

RESEARCH TO THE RESCUEIn spite of existing research initiatives

and a detailed sponsor database, Howe

felt that their understanding of sponsor attitudes lacked the depth to accurately measure the wide range of people that make donations. With varying levels of sponsorship commitment on offer, Howe wanted to make sure that different people were appropriately handled.

“Some secure sponsors are content to make donations regularly without changing their level of involvement, while other donors would like to help more and give more,” Howe explains. “We have over 100,000 sponsors.”

It’s a question as old as business itself – once a customer gives you some money, how do you get them to do it again and keep doing it in the future? Charities first thought they had found the answer in customer

A LITTLE OLD GRANNY STOPS AND GIVES A HOMELESS PERSON CHANGE WHILE A BUSINESSMAN DEMANDS 10 CENTS CHANGE FROM A TAXI DRIVER – THERE’S NO WAY TO ACCOUNT FOR HOW PEOPLE SPEND THEIR MONEY. OR IS THERE?

“THE CHARITABLE DOLLAR IS OUR ONLY DOLLAR, AND WE FACE THE SAME CHALLENGES AS ANY

BUSINESS IN THE CURRENT ECONOMY.”


CHANGE FEATURE

“BY SEGMENTING OUR DATABASE, WE’VE GAINED A BETTER VIEW OF OUR SPONSORS’ DEGREE OF COMMITMENT. IT’S PROVIDED US WITH AN AXIS OF DONORS WHO ARE MORE OR LESS LIKELY TO INCREASE THEIR SPONSORSHIP INVOLVEMENT.”

relationship management (CRM). With a database of detailed customer

information in hand, CRM aims to provide guidance in how to deal with widely varying consumer bases and the consequent variations of suiting each of their needs. But the programmes aren’t a panacea. They make keen observations on customer behaviour, but have almost no ability to explain it.

It was this feeling of frustration that led Leonard Howe and Synovate to pioneer a better way to keep track of their invaluable sponsors.

“Necessity is the mother of invention. Previous methods just aren’t very accurate, and although lots of measurements are in place, the data doesn’t give much constructive help,” says Howe.

Synovate suggested a new method of segmenting the FPP databases based on survey-derived attitudinal data, and

using that material in combination with behavioural data tracked and held in their existing database. However, in order to be useful, the segments needed to be homogenous and distinct, as well as stable, predictive and actionable.

“We wanted to segment our database in ways that are meaningful, and the consulting marketplace hadn’t offered anything new in a long time. But Synovate had a fresh approach.”

HYBRID CRMWorking under the premise that all

CRM programmes can and should rely on a marriage of survey-based data and database behavioural measures, the team aimed to combat CRM’s traditional weaknesses by combining the two sources, in the hopes that it would shed light on some much-needed actionable marketing ability.


First, Howe initiated a two-pronged attack that began with a mass culling within the FPP database – uncommitted sponsors were identified and completely removed from all direct marketing activity.

The second part of the strategy was pure CRM – fix and improve relationships with individual sponsors before any attempt to ask for additional contributions. Call centres across the charity lit up with a modified mission. Armed with an array of tailored scriptings and dialogues – their agenda was to carry out a newly designed set of sponsor relations operations that would lure in those with an interest in getting more involved, without scaring away the people who are happy with things the way they are.

CHURNING OUT RESULTSThe ultimate goal from the outset

was to slow down the momentum at

which the churn rate was increasing each year. Time, unfortunately, wasn’t necessarily on their side. Work on the project began in 2000 during a gloomy economic decline where, if anything, you would expect churn to continue to rise rather than fall. Aggravated by an overall decrease in casual consumerism and charity spending, the downturn had seen the loss rate fall to 12.5% each year.

In spite of all the odds, the finely-tuned CRM programme weathered the storm, and after a frenzy of meticulous investigation into how different people think, act and spend on charitable donations, Howe and the research team finally found what they had been looking for – answers.

By the time the database segmentation algorithm was updated and the research and analysis were repeated, the loss rate had dropped to 7.5%, with no identifiable

cause other than the segmentation and the new communication approach. This has resulted in yearly savings measured in the millions.

By the end of 2001 and for each subsequent year since, the churn rate has continued to decline, and it currently stands at its lowest rate since 1990. This translates to a reduction of 3,100 lost sponsors whose contributions total roughly US$1.1 million. For any charity this is an extremely significant amount of money, and their investment in research was paid back more than eleven-fold.

Says Howe, “by segmenting our database, we’ve gained a better view of our sponsors’ degree of commitment. It’s provided us with an axis of donors who are more or less likely to increase their sponsorship involvement, so that regardless of the channel, the sponsor receives the right consultation.” ▲

CRM was originally intended to help manage business relationships and pave the way for successful marketing. It has traditionally been the domain of banks and credit card companies, not community charities. But Foster Parents Plan has turned it into a way to make sure that sponsors around the world are doing all they can to help the people who need it most.

“WE WANTED TO SEGMENT OUR DATABASE IN WAYS THAT ARE MEANINGFUL, AND THE CONSULTING MARKETPLACE

HADN’T OFFERED ANYTHING NEW IN A LONG TIME. BUT SYNOVATE HAD A FRESH APPROACH.”

WHY CUSTOMER RELATIONSHIP MANAGEMENT?

CLIENT SIDE


vendor, and the specifications related to your target. RFPs should include:

● A brief background of the study ● Primary objectives, specifications

and timing● Specific contact and response

information ● Required deliverables

ETHICAL CONSIDERATIONSConsider the following items when

dealing with a market research supplier: First, be forthcoming – approach your vendor relationship with professionalism and trust, and by all means, ask your vendor to fill out a confidentiality disclosure form. Be genuine – don’t ask a research supplier to draft a proposal that you do not seriously plan to consider. Negotiate pricing professionally and honestly and meet your deadlines.

DON’T OVER-MANAGEThe point in hiring an outside

vendor for a research project is to tap into that firm’s expertise. Therefore, it makes little sense to demand that potential vendors conduct a study the same way as an internal project.

SELECTING A

OUTSOURCING HAS PROVED A VALUABLE RESOURCE IN MANY INDUSTRIES FOR DELIVERING ON SHORT-TERM, SPECIALISED PROJECTS WITHOUT STRETCHING INTERNAL STAFF TO THE BREAKING POINT – MARKET RESEARCH IS CERTAINLY NO EXCEPTION

Even companies with internal research staff frequently need to use outside experts to get answers. But hiring the wrong outsourced

research firm can be as disastrous as hiring the wrong employee – and often more expensive. With some planning and advanced work, however, hiring an outside vendor for certain projects both makes for better research and better business. Here are some tips.

GETTING STARTEDEven before you send the details of

your study out to potential vendors, set some initial guidelines. The suppliers should be familiar, either from previous professional contacts or through referrals; able to provide one main point of contact; willing to stick to the budget and willing to disagree. And remember, unless your project is one that is ongoing, such as customer satisfaction or advertising tracking, have several vendors submit bids.

WRITING AN EFFECTIVE RFPA written request allows fewer

opportunities for misunderstandings about study objectives, your expectations of the

MARKET RESEARCH SUPPLIERBY HOLLY EDMUNDS


Holly Edmunds is Managing Partner of RS Consulting USA, LLC. Prior to joining the RS team, Ms. Edmunds was Market Research Manager for Xerox Engineering Systems and a Primary Research Specialist for Hewlett-Packard.

This article has been edited with the permission of www.marketingpower.com and Holly Edmunds.

PRESENTATIONSIn some instances, you should

consider having the vendors present their proposals to you and your team. Those situations include when:

● You are undecided between one or more vendors

● The project is detailed and requires expertise both in terms of research methods and in terms of your industry

● The project includes several regions or is global in scope

● One or more of the firms bidding on a high-profile, large-budget project has not worked with you before

EVALUATING VENDOR PROPOSALSEvaluating proposals is a two-step

process. First is an objective appraisal of whether the vendor can meet the project’s requirements. The second is more subjective – can you work with them? While the rating scale is simple, the list of items to rate is detailed:

● Timeliness of vendor’s response to RFP

● Experience of the project team ● Appropriateness of methodology/

sampling plan ● Past experience with vendor● Past industry experience of vendor ● Cost and proposed timelines● Vendor’s proposed plan for vendor/

client communications ● How well was the methodology/

sampling plan explained

“THE POINT IN HIRING AN OUTSIDE VENDOR FOR A RESEARCH PROJECT IS TO TAP INTO THAT FIRM’S EXPERTISE.”

● Do you understand what the vendor is proposing to do

BE AWARE OF SUBJECTIVITYOnce you’ve narrowed the field

to those that meet the technical requirements, start sorting through the subjective issues.

For example, past positive experiences with a specific vendor may outweigh many of the items you rate, but be careful not to let a previous friendship or business relationship hold too much sway.

Also ask: did you have problems working with one of the vendors through the proposal process? If the communications problems were a simple personality conflict, see if someone else on your staff had a better experience. If not, go with a different vendor.

Finally, before formally making a decision, make sure you’ve done all the internal paperwork to get the project started.

DON’T BE OVERWHELMEDSelecting a research supplier may

seem like a daunting task, especially to the uninitiated. The process, the amount of issues both subjective and contractual – there is much to be considered. But, ultimately it is simply a matter of applying common sense. Think of it as interviewing a prospective employee. Ask yourself, what are your expectations and how well does the supplier seem capable of meeting them? ▲

LITERARY AGENT


AUTHOR: Patrick M. Lencioni, The Table Group

IN SUM: Meetings – why we hate them, why we shouldn’t, and how to make them great

REVIEW:The thought of meetings makes most business people miserable (In fact, I’m

writing this in a meeting now). But they’re a critical and unavoidable part of what we do. Through fictional narrative, modelling, and practical suggestions, Lencioni shows how to turn meetings from painful and tedious, to productive, compelling and even energising. A quick, engrossing book that explores the keys to holding meetings that improve the morale, effectiveness, and bottom line of an organisation.

AS AN AGENT OF CHANGE:

HELLO KITTYA SMALL CAT TAKES OVER THE WORLD

AUTHOR: Ken Belson and Brian Bremner

IN SUM: Explore how Sanrio, the company behind Hello Kitty, turned a cute cartoon cat into a multi-billion dollar global commodity

REVIEW:You’re sick of Hello Kitty, but can count at least two things that show her likeness from where you’re sitting now… admit it. Part branding guide and part biography, Belson and Bremmer get witty and in-depth to show that with the right idea, branding everything in sight isn’t such a bad idea after all. The real business lesson here, however, is in the strategy of licensing.


HOW CANON GOT ITS FLASH BACKA BLUE CHIP FINDS ITS SOUL

AUTHOR: Nikkei

IN SUM: A look at how Canon remained competitive worldwide and kept growing despite a tough global economy

REVIEWCanon is by far and away the biggest innovator in copier and photographic technology in the world today. This, part case study/

part love-in for revered Canon President Fujio Mitarai, tells why. Nothing fancy here, but a good case study on the importance of focusing on your core business and sticking to what you do best.


TESTOSTERONE INC.WHEN CEOs BECOME ROCK-STARS

AUTHOR: Christopher M. Byron

IN SUM: A classic story of men in business during the greatest bull market in capitalist history and how everyone – from the press to investors – bought into the power trip

REVIEW:This is Chris Byron doing what he does best -– tackling controversial topics in an entertaining fashion that virtually all readers from all walks of life find engaging. A little bit business, a little bit cultural history and pop psychology, and a little bit dishy. Testosterone Inc. offers something for everyone from Business Week to the National Enquirer, from Drudge to O’Reilly. ▲


BOOK RATING Read later

Read now Wait for vacation

Read soon Don’t bother

DEATH BY MEETINGHOW TO AVOID THE DREADED TIMEWARP OF MEETINGS

WHENDOESUNCOOL CO

OL?

OPEN MIND

he U.K.… early 1980s… Levis is a brand in the doldrums. Having had enjoyed a favourable position for decades, it’s now outdated;

washed-up (and I’m not talking stone, that comes later). In sum, the brand just simply isn’t cool anymore. Fast forward a couple of years and the silk worm has turned – the Levis brand is enjoying a resurgence and is the name in denim. Uncool, cool again. But how?

In short, with some very smart thinking. Levis had appointed the newly formed London creative shop, Bartle Bogle Hegarty, as its advertising agency. The BBH approach was to, as they called it, “zig” when everyone else “zagged”. They turned a negative into a positive. Levis, the outdated, uncool jeans your parents grew up in, became Levis 501s: The original jeans. Re-launched on the back of some stylish TV commercials featuring 50’s fantasy Americana, James Dean look-alikes and soul tunes, the brand quickly appealed to young trendsetters.

TThere was more than taglines and

catchy music at work here though. Strategists behind the campaign had observed that U.K. style gurus were steering a new movement based on retro cool. The Face, at the time a very influential style magazine, had been quite instrumental in exposing the rockabilly and buffalo “hard times” themes emerging in the aftermath of new-romanticism. Levis very neatly climbed aboard and rode into a new era by the seat of its pants.

Unfortunately, Levis is the exception and not the rule. There are countless examples of brands getting it wrong and attempting to manipulate trends with youth-oriented campaigns based around what they perceive is cool. (The current McDonald’s global push being the latest?)

Who decides when uncool should become cool again? It’s often a form of social evolution. The young become tired of current trends (usually when they get a whiff of commercial interest) and seek to create new ones. Sometimes it’s triggered by fashion designers or it’s something born on the streets. Look at how hip-hop culture has influenced any number of looks, and how brands have been astute enough to click and adapt accordingly – Nike, Adidas,

Burberry being some obvious examples. There’s even a whole new generation of cognac drinker in the U.S.A. thanks to constant references to “the nac” in hip-hop circles. You think Moet-Hennessey would have listened to me two years ago if I told them to place ads in inner-city neighborhoods instead of Fortune magazine? They might now…

Fact is, it’s very difficult, almost impossible, for brands to invent cool and lead fashion. Typically, advertisers attempt and fail to wear their less than sincere strategies on their sleeves, while countless others jump on the bandwagon after it’s too late. Nonetheless, sometimes with careful research and insights you can get a whiff of upcoming trends and adapt to ride them – and that’s where, every so often, advertisers get it right.

Personally, I’m still waiting to pull out my Member’s Only jacket. You laugh, but in a few years, you’ll be doing the same… unless of course, they decide to advertise it. ▲

“FACT IS, IT’S VERY DIFFICULT, ALMOST

IMPOSSIBLE, FOR BRANDS TO INVENT COOL

AND LEAD FASHION.”

WHY DID LEVIS GO FROM ‘IN’ TO ‘OUT’... TO ‘IN’ AGAIN?

Chris Kyme, is ex-Regional Creative Director with advertising agency FCB Hong Kong and Singapore’s “Ad Man of the Year 2001”. He is currently head of ‘Bang!’ a Hong Kong-based creative hotshop.

BECOMEAPRIL 2004 CHANGE I AGENT 29

FIGURATIVELY SPEAKING


This study was conducted through Synovate Global Omnibus.

If you’d like more information about this and other studies, please email [email protected].

SPORT?ARE YOU A GOOD

COMPETITION, PARTICIPATION, CONFLICT AND SICK DAYS – A STUDY FINDS THAT’S WHAT SPORT IS ALL ABOUT

of all respondents said their favourite televised sport was soccer – good news for marketers seeking access to large global television audiences. Unsurprisingly, soccer scored big everywhere except North America and India.

of Russians who have recently attended live sporting events say that no one dares to change the channel away from their favourite sports at home. The Chinese are close behind with 69% and then India, with 67%.

37%of American respondents cheer for American Football – no wonder a Superbowl spot is so expensive. The sport came up as the world’s third most popular televised sport, marginally more so than baseball.

of Indians surveyed said cricket was their favourite televised sport. Pepsi appears to have recognised this too as nearly half (49%) of Indian respondents volunteered Pepsi when asked to mention which brand comes to mind as a sports sponsor. Coca-Cola only achieved 13% recognition. Score one for Pepsi.

31%of Chinese sports fans buy clothing and equipment brands used by their favourite athlete. This goes a long way towards explaining Adidas’ efforts to dam the flood of fake

David Beckham jerseys.

76%of French admitted they had become embroiled in a heated argument over the performance of their favourite teams or athletes. The Canadians are the most relaxed -– only 24% ever lose their cool over sport.

24%of Indian respondents confessed to taking bogus sport-inspired sick days. Russians are similarly sneaky with 16% reporting in sick during the big game. Germans were the most reliable with only 4% taking a sport sick day.

93%

24%

74%


TALES FROM THE FIELD

MISSION REPORTIT’S AN URBAN JUNGLE OUT THERE. . . JUST ASK ANY RESEARCHER IN THE FIELDCHAIR-RAISING EXPERIENCE

A client spends thousands of pounds carefully constructing a new product display prior to a nation-wide launch. On the morning of the first day of interviewing, a disabled customer loses control of his wheel chair and ploughs into the display. The research is delayed a week.

EXPLOSIVE RESULTSWhen dispatching products from the U.K. to Ireland for an aerosol product test,

researchers were unable to retrieve them from the airport as it was feared it was a bomb. The test went undone.

SEAT OF THE PANTSA well-known manufacturer of jeans wishes to

conduct a product test comparing prototypes with existing products on the market. Unfortunately an over zealous employee removes all the labels from the existing product due to a misunderstanding.

As the survey is being conducted in several countries, replacement products have to be sourced Europe-wide – around 150 products to the exact size, colour and design of those with the labels removed. After running frantically around Milan looking for and purchasing most of the jeans needed, an opportunist cab driver takes off with the product as soon as the researcher and jean company exec step out of the car.

NO NEED TO TELL-HERA researcher is conducting a mystery client service test at

several branches of a well-known bank. Her mission is to enter each bank and detail the quality of service she received using a list of set requests. The researcher, however, is unfortunate enough to be present during a bank robbery. She and the others are unharmed, but the police

have other ideas. After examining footage from several bank locations, the researcher’s behaviour of visiting each branch quickly puts her on the suspect list.

PAPA RESEARCHA young woman comes to the door with a toddler in her arms and the sound of a screaming young baby

in the background. She agrees to be interviewed, but asks if the researcher can watch her children

whilst she finishes making dinner. Some 50 minutes later, the researcher has his 15-minute

interview, coupled with toddler dribble and spaghetti stains on a once favourite Ted Baker shirt.

Change Agent april 2004 hollywood ending

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