L2 Digital IQ 2012 - Brazil Russia India

Brazil Russia India© L2 2012 L2ThinkTank.com

May 11, 2012

SCOTT GALLOWAYNYU Stern DOuG GuThrieThe George Washington University School of Business

In partnership with:

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2© L2 2012 L2ThinkTank.com

DIGITAL IQ INDEX®:

Brazil Russia India

1. “Europe: Branded Consumer Goods: Luxury Goods,” Goldman Sachs, June 2, 2010.

2. “Global Blue, Autumn 2011 Briefing and ‘The ultra-luxe feel,’” Business Standard, April 6, 2012.

3. “Miami Has a Hearty Oi (Hello) for Free-Spending Brazilians,” New York Times, December 27, 2011.

4. Barclays Equity Research, 2011.

Growing at twice the rate of an already hot global market for prestige goods, luxury sales in Brazil, Russia and India (BRI) are projected to reach a combined $205 billion—20 percent of the global market—by 2025.1

Emerging Markets+ Digital=Growth

Research online/buy in-store … … and abroadThe impact of BRI wealth creation extends far beyond national borders. Punishing luxury import duties and strengthening local currencies boost BRI tourists’ appetites for luxury goods abroad. According to Global Blue, Russian international shoppers were behind 13 percent of global tax-free purchases in

BRI markets boast large populations armed with growing disposable income. Compounding the effects of this sociodemographic transformation is the

rapid adoption of digital technologies en masse, fueling double-digit growth in internet penetration on PCs and mobile devices. These trends are especially strong

among the young affluent, shaping a future where comfort with social and mobile platforms determine a brand’s success or failure in Brazil, Russia and India.

2011, second only to the Chinese.2 Brazilians spend more in the US than any other tourist group ($4,940 per trip), and it is estimated that 8 out of 10 luxury goods seen in Brazil were purchased abroad.3 More arresting, the percentage of European luxury sales coming from tourists is projected to grow from 50

percent today to 60 percent by 2016.4 Geographic silos and opaque attribution increase the likelihood that luxury brands will underestimate the demand they are stoking via strong, local, emerging market digital presence.

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DIGITAL IQ INDEX®:

Brazil Russia India

15 12 7 36 43 842010

2008 2025 2007 2017

2016

INDIA 292.1

6.32.8

BRAZIL15

RUSSIA 16.7

REST OF WORLD

CHINA

BRAZIL 64

RUSSIA74

INDIA57

328

15

473233

410 3

gLoBaL LuxuRy MaRkET 5

USD Billions

wEaLTh gaIns 6

Millions of Households with Overall Income

in Excess of $100,000

gRowTh In onLInE RETaIL 7

USD Billions

5. “Europe: Branded Consumer Goods:

Luxury Goods: A Trillion Dollar Global Industry by 2025?” Goldman Sachs,

June 2, 2010.

6. “Volume 5: Evolving Fortunes,” Barclays

Wealth Insights, May 5, 2008.

7. “The Internet

Economy in the G-20,” BCG, March 19, 2012.







DIGITAL IQ INDEX®:

Brazil Russia India

Clicks for Bricksa brick-and-mortar retail strategy limits growth in BRI markets. High-end real estate opportunities in the major cities, from where much of the demand for luxury has come from to date, are dear. More important, the rising economic tide is projected to distribute wealth across the expansive BRI geographies, making it costly for any brand to pursue

a brick-and-mortar-only retail strategy. Although an estimated 80 percent of Russia’s domestic luxury purchases were made in Moscow in 2010, the capital’s share of GDP is not expected to exceed 10 percent by 2025.8 As additional cities continue to mushroom in these countries (McKinsey & Co. estimates there will be 300 cities with population of

200,000+ across BRI by 2025), operational costs will weigh down ROIC for brands that fight this battle with the last war’s weapons—bricks (vs. clicks). A strong localized site, mobile and social presence can help brands reach wealthy BRI consumers in their home markets and while they are abroad.

8. “Moscow’s Luxury Goods Market Collapses,” Luxury-blogger.com, Data Insight (2011), and McKinsey Global Institute, 2010.

has one Local Brick and Mortar Door for Every:

of luxury sales in Moscow80%

By 2025, there will be 90 “Cities”

of domestic luxury sales occur in são Paulo

70%By 2025, there will be 34 “Cities”

of luxury stores are in Mumbai, Delhi, and Bangalore

75%By 2025, there will be 177 “Cities”

French

3million

Brazilians

41million

Indians

301million

Chinese

27million

Russians

28million

BRICk & MoRTaR PEnETRaTIon

Louis Vuitton Stores per Country







DIGITAL IQ INDEX®:

Brazil Russia India

sCoTT gaLLoway

Founder, L2

Clinical Professor of Marketing,

NYU Stern

Lost in TranslationTo date, the opportunity to establish a local digital presence and engage BRI consumers has been largely ignored by the Digital IQ Index® brands.•Only 22 percent have sites in Portuguese and 27 percent

in Russian.

•Only 21 percent maintain local Facebook pages.

•Paid search is virtually nonexistent: in Russia, only 9 percent

of brands invest in Google.ru, and only two brands are spending

on Russian market leader Yandex.

•Just five percent of brands have a Russian language

mobile presence.

Without investing in a robust localized digital presence, brands

forego sales in both emerging and mature markets.

Emerging Markets IQ = growthour thesis is that success in the world’s fastest-growing prestige markets is inextricably linked to digital competence. This study attempts to quantify

the digital competence of 100 iconic brands and highlight 15

brands with a strong presence in Brazil, Russia and India. Our

aim is to provide a robust tool to diagnose digital strengths and

weaknesses and help managers achieve greater return

on incremental investment.

Like the medium we are assessing, our methodology is dynamic,

and we hope you will reach out to us with comments that

improve our approach, investigation, and findings. You can

reach us at [email protected] and [email protected].

Regards,

Brazil Russia India Video Click to Play

Doug guThRIE

Dean, The George Washington

University School of Business

Founder, Guthrie & Associates





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DIGITAL IQ INDEX®:

Brazil Russia India

aBouT ThE RankIng

• site Technology

• site Load Time

• site Translation

• Content Localization

• Site Search & Navigation

• Product & Promotions

• E-Commerce

• social Media Integration

• Customer Service

• Account & Payment Services

Search, brand presence, and email marketing efforts

• search: Global & Local Traffic, SEM, SEO, Web Authority (Google (all), Yandex (Russia)

• Innovation: Cross-platform Digital Initiatives, Social Programming, and Presence on Additional Social Platforms: LiveJournal, Odnoklassniki (Russia), Instagram, Google+, etc.

• Brand Buzz: Mentions on Social Media platforms (Orkut (Brazil, India), VK, LiveJournal (Russia), Odnoklassniki (Russia)), Monthly Searches (Google (all), Yandex (Russia)), Foursquare Check-ins

• Email: Localization—Language & Content, Frequency, Social Media Integration, Mobile Optimization

Brand presence, community size, content, and engagement on major social media platforms on global and local accounts

• Facebook: "Likes", Growth, Post Frequency, Applications, Responsiveness, Content, Interaction Rate, F-Commerce, BRI-Related Content, Geo-targeting

• Twitter: Followers, Growth, Tweet Frequency, Online Voice, BRI-Related Content

• youTube: SEM, SEO, Views, Number of Uploads, Subscriber Growth, Content, Translation

• Vkontakte (Russia): Community Size, Growth, Post Frequency, Responsiveness, Content, Interaction Rate

• orkut (Brazil, India): Official and Unofficial Community Size and Growth

Compatibility, optimization, and marketing on smartphones, tablets, and other mobile devices

• Mobile site: Compatibility, Translation, Functionality, Transaction

• ios applications (iPhone & iPad): Availability, Translation, Popularity, Functionality

• android & symbian: Availability, Translation, Popularity, Functionality

The Methodology30%

20%

Site20%

30%

Mobile

Social Media Digital Marketing

15% India:

Mobile

25% India:

Effectiveness of brand site

Digital Marketing Brazil & Russia

Brazil, Russia, & India

Brazil, Russia, & India

Brazil & Russia







DIGITAL IQ INDEX®:

Brazil Russia India

Beauty & Cosmetics Fashion hospitality Luxury Retail watches & Jewelry

= BRazIL

= RussIa

= InDIa

BRanDs EVaLuaTED







DIGITAL IQ INDEX®:

Brazil Russia India

sPoTLIghT Brazil

• Western brands only entered in the ‘90s

• Foreign brands remain heavily taxed pRICes 25–80% hIgheR

• Vibrant local brands:

A Protectionist Past

TO p

aRIs

TO mIlan

TO mIamI

Wealthy: Doubling in a Decade

são Paulo

of domestic luxury sales70%

The world’s highest social media penetration

85%

Largest country on Facebook and Twitter

2nd

Of total retail sales projected to be online by 2016

4.5%

Traveling Shoppers

of trips are to Europe

Spend more than anyone else when visiting the U.S.

to the U.S.

(per trip)

29%$4,940

52%

4 out of 5 luxury goods seen in Brazil, were purchased abroad.

Population

Speak some english

Median Age

GDP per Capita

No. of Millionaires

205m (2010)

29

$11,769 (2010)

155,000

24%

hello.

Internet UsersInternet Penetration

39% 79m16%Online Retail Growth, 2010–2016

CagR

to $36 billion

Sources: McKinsey, Global Wealth Report, CIA World Factbook, CNBC, Jomao do Brasil, eMarketer, NYT, Barclays Wealth Insights, IMF






DIGITAL IQ INDEX®:

Brazil Russia IndiaWant to know more about your brand’s ranking? Contact us

DIgITaL IQ ToP 15 Brazil

rANK BrAND DeSCriPTiON

1

• Only brand with full f-commerce capability via dedicated custom tab on Facebook

• Brazilian Facebook page reached 100,000 fan milestone in January with hand cream giveaway, acquiring 40,000 fans in 12 days

• E-commerce site provides payment with Boleto Bancário and payment in installments

2

• Strong local social presence—55,000 followers @sephorabrasil, 193,000 views on YouTube channel, 268,000 likes on Sephora Brasil Facebook

• I Love Beauty Blog • Display ads on F*Hits—Brazil’s leading network

of beauty bloggers

3

• AvonBR has almost 73,000 followers, 55,000+ likes on AVON Brasil Facebook page and 20,000 members on Orkut

• Avon Renew campaign targets Brazilian consumers with dedicated mobile apps, Facebook page and microsite

• Highly rated Adivinhe Minha Idade app solicits user photos and comments and provides product recommendations

4 YouTube channel boasts more than 5 million views, including “Power of Love” video with more than 1 million views alone

5 InterContinental São Paulo maintains a presence on Facebook, Twitter, Orkut, and Foursquare

6 Local leader maintains several communities on multiple social platforms catering to its bevy of brands

7 Transparent local pricing discloses duties and taxes prior to checkout


8 One of the few brands sending Portuguese-language emails; boasts nearly 11,000 followers on @burberry_brazil

9 Portuguese-language e-commerce site; Marriott mobile app provides Brazil-specific customer service

10 Market-dedicated blog is well-promoted on site and social media

11 Makes shopping at Herald Square from São Paulo a reality, providing pricing in Brazilian Reais and international shipping

12 Portuguese-language e-commerce-enabled site

13 Sponsorship of Lollapalooza Brasil generated local fan engagement on Facebook

14

Clinique’s Brazil YouTube channel localizes global content with Portuguese descriptions and subtitles; site offers popular Brazilian payment options: Boleto Bancário and installments

15 E-commerce-enabled Portuguese-language app De Accor lets Brazilian consumers manage their rewards points and book hotels

BrAZiLL’Occitane

Sephora / Sack’s Avon

MelissaInterContinental Hotels & Resorts

NaturaNET-A-PORTER

BurberryJW Marriott

LancômeMacy’s

Westin Hotels & ResortsCalvin Klein

CliniqueSofitel

ruSSiAL’Occitane

Yves Rocher Dolce & Gabbana

Estée LauderClinique

TSUMAvon

NET-A-PORTERInterContinental Hotels & Resorts

Bobbi BrownCartierMacy’s

JumeirahRitz-Carlton

Clarins

iNDiAWestin Hotels & Resorts

ITC Hotel Group Burberry

Macy’sTaj Hotels Resorts and Palaces

InterContinental Hotels & ResortsLe Méridien

NET-A-PORTERL’Occitane

JW MarriottTanishq

Four Seasons Hotels and ResortsKiehl’s

TitanArmani







DIGITAL IQ INDEX®:

Brazil Russia India

sPoTLIghT Russia

• Luxury market cut in half during 2008 crisis

• Several brands had to close shop in 2009 DVF, VIVIenne wesTwOOD, VeRsaCe

• 2011 luxury rebounds on average crude oil prices +23% (vs. 2010)

Luxury Market Tied to Price of Commodities

TO lOnDOn

TO paRIs

Europe’s Largest Internet Market

Moscow

st. Petersburg

only 13% of gDP by 2025

users on local social network VK

hours spent per month on social media

100m+ 9.8

Population

Speak English

Median Age

GDP per Capita

No. of Millionaires

Internet UsersInternet Penetration

138m (2011)

39

44%

$12,993 (2011)

134,000

61m

5%hello.

Traveling Shoppers

35–50%13%

market share for search leader Yandex

60%

24%Online Retail Growth, 2010–2016

CagR

to $43 billion

TO nyC

of domestic luxury sales80%

lower prices for luxury goods when abroad

of global tax-free purchases (second to China)

Sources: Russian census, CIA World Factbook, Source Data Insight, World Internet Stats, BCG, IMF






DIGITAL IQ INDEX®:


DIgITaL IQ ToP 15 Russia

BrAZiLL’Occitane



NaturaNET-A-PORTER

BurberryJW Marriott

LancômeMacy’s


CliniqueSofitel

ruSSiAL’Occitane



TSUMAvon




Clarins






JW MarriottTanishq


TitanArmani


1

• Russia-dedicated Facebook page (11,000+) and Twitter accounts, communities on VK (8,000+) and Odnoklassniki (9,000+) pages and a LiveJournal blog

• E-commerce-enabled Android and iPhone apps available in Russian complement a robust Russian-language e-commerce and mobile site

2 • Purchasing Russian and English brand terms on Google.ru• Virtual Bouquet game promoted on Facebook,

VK and Odnoklassniki

3

• Russian-dedicated social presence on Twitter (2,600) and VK (58,000)

• VK community grew 55 percent, to almost 58,000 followers in March

• Live-streamed Winter 2013 show on Russian sites; posted live updates and behind-the-scenes pictures to its VK page

4

• One of only two brands purchasing ads on Russian search leader Yandex

• One of three brands sending Russian-language emails • “Revitalizing Supreme” campaign hosted on both VK

and Estée Lauder Russia Facebook page

5 “3-Step System” Facebook-integrated campaign drives consumers from social platform to Russian- dedicated website

6 • Facebook page, but no official VK presence• LiveJournal blog features celebrities but fails to link

to e-commerce site

7 Leverages its almost 150,000 followers on VK to push inventory and tap into evangelists


8 Net-A-Porter Live tracks consumer purchases globally including Russia

9 Site features prices in rubles for InterContinental Russia locations

10 “Pretty Powerful” Facebook app attracted 10,000 monthly Russian users

11 Hosts a Russian version of bridal microsite

12 Paid search advertising on Google.ru supports Russian e-commerce

13 Russian-language site, but Russia Facebook page and VK page have less than 100 followers

14 Ritz-Carlton Moscow site features user-generated content and city information

15 Giveaway drove “likes” on fledgling Russian Facebook page







DIGITAL IQ INDEX®:

Brazil Russia India

sPoTLIghT India

• High Luxury Tax: Indians buy abroad in Dubai, Hong Kong, and London

• Limited Real Estate: few “luxury” locations available at affordable places

• Less Choice: perception that local selection not as appealing

• Investment Restrictions: easing but still exisit

Barriers to Growth of Luxury Market

Traveling Shoppers

TO hOng KOng

TO lOnDOn

2nd fastest growing economy

Mumbai

new Delhi

Bangalore

of Indians online engage in social networking

of internet users access solely from mobile phone

59%

of e-commerce comes from mobile device

67%

60%

of wealthy Indians shop for luxury goods abroad

luxury goods were purchased abroad

Sources: McKinsey, Global Wealth Report, CIA World Factbook, CNBC, eMarketer, NYT, Barclays Wealth Insights, IMF

60%3 out of 4

Population

Speak English

Median Age

GDP per Capita

No. of Millionaires

1.2b (2011)

26

$1,388 (2011)

153,000

20%

Internet Users Mobile UsersInternet Penetration Mobile Penetration

10% 39%121m 470m

of domestic luxury stores75%

51%Online Retail Growth, 2010–2016

CagR

to $84 billion

TO DUBaI hello.






DIGITAL IQ INDEX®:


DIgITaL IQ ToP 15 India

BrAZiLL’Occitane



NaturaNET-A-PORTER

BurberryJW Marriott

LancômeMacy’s


CliniqueSofitel

ruSSiAL’Occitane



TSUMAvon




Clarins






JW MarriottTanishq


TitanArmani


1 Facebook and Twitter extend “Heavenly Bed” campaign in India

2 WelcomZest Lounge blog features local points of interest, video blogs from hotel chefs and allows guests to post ratings and reviews

3

Injected its successful “Art of The Trench” campaign with some Indian flair by enlisting images from street photographer Manou; hosted a digital exhibit to celebrate the opening of its seventh store in India

4 Global Facebook page translation allows fans to read posts in Hindi

5 Local leader, live-streamed BRICS Summit 2012 on its Facebook page

6 “Memorable Weekends” Facebook campaign gave away free hotel stays, garnering 9,000 new fans

7 Global Facebook page is “most popular” with New Delhi residents


8 Provides shipping to India and convenient and transparent checkout process

9 Facebook campaign provided consumers in New Delhi, Mumbai and Ludhiana a free hand-cream gift at retail

10 Bombay property Facebook page links to reviews on TripAdvisor

11 Mobile app available for iOS, Android and Symbian simulates the rituals of the traditional Indian festival, Karva Chauth

12 Superior English-language site delivers; publishes prices in local currency

13 #KiehlsMumbai trended for three days, generating buzz for store opening

14 Twitter #WinAWatch contest has netted new followers

15 Ships to India, where it is the third most-searched prestige brand







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Inquiring MindsThe number of organic monthly Google searches in BRI,

which account for five percent of global monthly searches

for Digital IQ Index® brands, serves as a proxy for their

brand equity in these markets. Dominated by luxury

fashion, similar brand preferences can be seen across the

markets, with gold-obsessed India demonstrating a jewelry

bent. In each market, no more than five of the top 10 most

searched brands on Google maintain a translated brand

site. Valentino in Brazil and Tiffany and Prada in India have

yet to open stores in those countries.

Cha

nel

Calvin

Klein

Dior

Loui

s Vu

itton

Armani

Piaget

Valentino

500,

00030

0,00

0

Her

mès

Pra

da

125,000

IND

IA

RUSSIA

BR

AZIL

75,000

200,000

120,000

Chanel

Dior

Calvin K

lein

Louis Vuitton

Prada

Arm

ani

Tiffa

ny &

Co.

Dol

ce &

Gab

bana

Herm

ès

Valen

tinoGucci

Prada

Chanel

Rolex

Tiffany & Co.

TAG HeuerLouis Vuitton

Calvin Klein

Gucci

Armani

Le Méridien

ToP 10 BRI googLE sEaRChED BRanDs

(March 2012)MARKET-SPECIFIC SITE

NO MARKET-SPECIFIC SITE







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

78%

22%

73%

27%

67%

33%

66%

34%

69%

31%

WITHOUTWITH

WITHOUTWITH

Limited LocalizationThe site localization efforts of the Digital IQ Index® brands in

BRI markets are limited. More than half of brands do not host

Portuguese or Russian sites to cater to consumers in Brazil

and Russia, while only about a third support e-commerce in

BRI markets. Local content, product, and pricing info is even

more rare.

% oF BRI-FaCIng sITEs oFFERIng E-CoMMERCE

(April 2012)

% oF BRI-FaCIng sITEs wITh TRansLaTED ConTEnT

(April 2012)







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Catering to Local shoppersWhile the number of online shoppers in BRI markets grows

every day, prestige brands have been slow to upgrade their

e-commerce experiences. McKinsey & Co. reports that 65

percent of Brazilian buyers are dissatisfied with their online

purchase experience, in part because opportunities to share

content and provide reviews are limited.9 Our data indicates

only 24 percent of Digital IQ® brands offer prices in local

currency, and no brands feature live chat in local languages.

9. “Make it social with Brazil’s digital consumer,” McKinsey & Co., March 2012.

sITE FEaTuRE InVEsTMEnT

% of BRI-Facing Sites with Locally-Relevant Features

(April 2012)

20

40

60

80

100

0

25%

100%

Local Language*

24%

83%

Price Available in Local Currency

55%

91%

Store Locatorfor Local Market

47%

57%

Share Productsvia Facebook

22%

28%

Reviews

27%

80%

Local CustomerService Number

0%

18%

Live Chat inLocal Language*

BRAZIL RUSSIA INDIA

* Brazil & Russia Only

UNITED STATES







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Localizing ContentAmong the brands that have localized sites, only a fraction

of them (5–10 percent depending on the BRI market) have

invested in local site content, while only 11 percent have

developed local content on their social media pages.

L’Occitane is one of very few brands to offer local news,

contests and promotions on each of its local sites in Brazil,

Russia, and India.

Product search in Russian

Links to E-commerce (with prices in rubles)

Email sign-up for brand news and updates in Russian

Link to Russian-language brand blog

Links to local Facebook, Twitter, Vkontakte, and odnoklassniki

one click to Russian-language store locator

Local customer service in Russian

Russian site LOccitane.ru

Indian site LOccitane.in

Brazilian site br.LOccitane.com







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

44% 55% 1%

3% 80% 17%

X ≤ 3 SECONDS X > 10 SECONDS3 < X ≥ 10 SECONDS

Global Site 10.59.9

8.39.2

7.5

6.3

2.1

BRI-Dedicated or“International” Site

BRI-Dedicated SiteHosted in Local Market

0 sec 1 2 3 4 5 6 7 8 9 10 11

8.64.3

BRAZILRUSSIAINDIA

8% 48% 44%

1% 59% 40%

Testing PatiencePoor load times for many prestige brands make them virtually

inaccessible from emerging markets. More than 40 of the

global sites take longer than 10 seconds to load from Russia

and India. The average load time for a Digital IQ Index®

brand’s global site (e.g., www.Cartier.com) is 3.7 seconds

when accessed from the US, 7.5 seconds from Brazil, 10.5

seconds from Russia, and 9.9 seconds from India.

Brands that invest in a local (e.g., EsteeLauder.ru) or an

“international” version of their site (e.g., world.BottegaVeneta.

com) lower consumers’ average load time by 17 percent—or

almost 2 seconds for every page visited. The most common

tactic for reducing load times is to limit heavy media elements

that are common on luxury brand sites of the last decade.

A more aggressive way to decrease load times is local hosting.

Observing the sites of local brands, and the few Digital IQ

Index® brands hosting locally, suggests brands can decrease

the load times by an average of 20 percent (Russia) to 70

percent (Brazil).

gLoBaL PagE LoaD TIMEs

% of Brands

(April 2012)

aVERagE LoaD TIMEs FoR BRanD sITEs

accessed from BRI Markets

(April 2012)







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Prohibiting Payment?Credit card penetration in BRI markets is lower than in

mature markets—19 percent in India, 33 percent in Russia

and 57 percent in Brazil.10 Offering payment methods

other than credit cards is not only useful to expand the

addressable market, it also helps overcome trust barriers.

In India, 40 percent to 60 percent of online buyers prefer to

pay cash even if they own a credit card as it allows them to

ensure the goods are legitimate before paying.11 Brazilians

are keen on installment plans, and a growing share (37

percent vs. 31 percent in 2010) of online buyers prefer the

Boleto Bancário payment method.12 Only three international

brands offer this option, while four of the seven local

Brazilian brands measured provided the Boleto Bancário

payment method.

PayMEnT oPTIons

% of BRI-Facing Sites Offering Alternative Forms of Payment

(April 2012)

10. “Growth Markets: Why the BRICs Are So Important,” Experian Marketing Services, May 2011.

11. “Cash on Delivery is Becoming a Bit Hit in India,” SiliconIndia, December 10, 2011.

12. Núcleo de Informação e Coordenação do Ponto BR, June 2011.

Instal

lmen

ts

Cash o

n Deliv

ery

Instal

lmen

ts

Cash o

n Deliv

ery

Boleto

Bancá

rio

Instal

lmen

ts

13%

10%

0%

17%

3%

0% 0% 0%

Cash o

n Deliv

ery

Yand

ex.Mon

ey







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Catering to Travelers Most brands fail to address the BRI consumer traveling to

mature markets. The share of purchases made by tourists

from BRI—and other emerging markets—is both sizable

and growing. Features such as store locators, local

currencies, and wish-list management help consumers

prepare for shopping trips.

aCCoMMoDaTIng TRaVELERs onLInE

Feature Investment Across BRI-Facing Sites

(April 2012)

20

40

60

80

100

0

93% 91%

60%

43%

32%

16%

U.S. Store Locator

Wish-ListManagement

European Store Locator

Prices Available Product Page Linkingto Store Locator

Shareable Store Locator

Vacheron Constantin provides printable, searchable global store locator on its Russian-language site.

Pandora wish-list enables registration through Facebook and is seamlessly integrated with product browsing.





http://www.vacheron-constantin.com

http://www.lancome.com.br



DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

Link to info about international shipping prominently displayed

10% discount offer for U.S. visitors

Macy’s sets the bar when catering to foreigners. The

U.S. behemoth ships to 100+ countries and is the only

brand actively advertising a traveler’s “Savings Card”

(10 percent off). Macy’s also invests in paid search on

Google.ru, touting its international shipping. The result:

Macy’s boasts 55 percent more combined unique BRI

visitors than the second-most-visited brand (Marriott)

and 89 percent more unique visitors than the second-

most-visited retailer (Nordstrom).

one-click to u.s. store locator

Provides prices in local currency (BRL)

Invitation to ship to U.S. address (lower prices)







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

whole > sum of PartsA brand’s ROI is greater when the site is part of an

integrated ecosystem of social media, search and/or

mobile. The percentage of Digital IQ® brands investing

in local social media programs, local paid search, and

local mobile programs fails to hit double digits. Our data

indicates that Brazilians and Russians search 18 percent

more for sites that have been translated. Furthermore,

of brands with translated sites, those that also invest

in a local Facebook page receive 22 percent more

Google searches.

sEaRChEs FoR BRanDs

Average Number of Brand Searches from Brazil and Russia

(March 2012)

10

0

20

30

40

50

Translation Onlyn=37

Translation + Facebookn=11

No Translationn=151

(in th

ousa

nds)

MissedOpportunity

34,257

49,373

22%

18%

40,392

Together, a translated site and market-dedicated Facebook page generate strong interest from local consumers.







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

soCIaL MEDIa sTRaTEgIEs

% of Brands with BRI-Dedicated accounts

(April 2012)

super socialBRI markets are more social than mature markets

are. Russians spend 10 hours a month, or twice the

global average, on social media, Brazil is the second

largest contingent on both Facebook and Twitter.13

India is the third largest country on Facebook. Growth

in social networking usage in BRI markets is outpacing

developed markets.

Still, few prestige brands invest in local social efforts.

Instead, Facebook, YouTube, and Twitter presence(s)

are managed globally. Less than 10 percent of brands

have developed pages on the popular Russian social

networks VK and Odnoklassniki or one-time Brazilian

leader Orkut. Just six prestige brands are leveraging

Facebook’s geo-targeting capability to provide BRI

consumers with local language posts and/or customized

content. On Facebook, the “most popular cities” for

Hublot, TAG Heuer, and MAC Cosmetics were BRI cities,

and only the latter does not maintain a BRI-dedicated

page or geo-target these markets.

Facebook bypassed Orkut as India’s most popular

social network in July 2010, while Brazil, Orkut’s final

stronghold, fell to Facebook in January 2012. Traffic to

Orkut dropped 23 percent in the last three months and

the largest unofficial communities have shrunk by 10

percent since September 2011.

Orkut is losing ground, but local Russian social networks

attract twice the number of visitors as Facebook and six

times as many visitors as Twitter. Ten percent of prestige

brands maintain small yet highly engaged Russia-

dedicated pages on Facebook. Although ten percent

have a dedicated Russian Twitter handle, only

@Burberry_Russia has garnered significant traction.

Seven brands have established a presence on VK.

L’Occitane, the only prestige brand with an Odnoklassniki

page, has more than nine thousand members.

13. “Russia has most engaged social networking audience

worldwide,” comScore, October 20, 2010.

“Geolocation analysis of Twitter accounts,”

Semiocast, January 31, 2012.

socialbakers.com

Facebook

0%

2%

4%

6%

8%

10%

0

5M

10M

15M

20M

25M

30M

35M

40M

0

5M

10M

15M

20M

25M

30M

35M

40M

Twitter YouTube Orkut Facebook

0%

2%

4%

6%

8%

10%

12%

0%

2%

4%

6%

8%

10%

12%

Twitter YouTube VKontakte Odnoklassniki Facebook

0

10M

20M

30M

40M

50M

60M

70M

Twitter YouTube

8%

10%

4%

1%

10%9%

1%

7%

1%

11%

5%

2%

BRI-DEDICATED

REGION SPECIFIC

UNIQUE VISITORS







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

BEsT In TwEET

Top 10 Brazil-Dedicated accounts: Followers

(April 2012)

BEsT In TwEET

Top 5 Russia-Dedicated accounts: Followers

(April 2012)

BEsT In TwEET

Top 6 India-Dedicated accounts: Followers

(April 2012)

@avonbr

@sacks_sephora

@lojamelissa

@naturanet

@sigamelissa

@OSKLEN

@schutzoficial

@adoromaquiagem(Natura)

@lancomeoficial

@Burberry_Brazil

70,00

0

20,00

03,0

002,5

002,0

001,5

001,0

00500

15,00

0

10,00

05,0

000

60,00

0

50,00

0

40,00

0

30,00

0

20,00

0

10,00

00

72,624

53,544

46,175

41,856

38,215

23,014

15,393

14,689

11,503

10,806

@jumeirahrussian 600

@tsum_moscow 925

@Burberry_Russia 20,033

@dolcegabbanaru 2,543

@loccitane_ru 938

@TajMahaMumbai 2,918

@fsmumbai 2,034

@itchotels 1,926

@titanbemore 1,755

@LeMeridien1 1,162

@KiehlsIndia 885INTERNATIONAL BRAND

BRAZILIAN BRAND

INTERNATIONAL BRAND

RUSSIAN BRAND

INTERNATIONAL BRAND

INDIAN BRAND







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

FaCEBook Fan RaCE

Top 10 Brazil-Dedicated accounts

(April 2012)

FaCEBook Fan RaCE

Top 10 India-Dedicated accounts

(April 2012)

Natura Net

Mellisa Oficial

Sephora Brasil

Natura

Schutz

L’Occitane en ProvenceBrasil

Amor em Movimento(Natura)

Natura Ekos

Natura Plant

Avon Brasil

Titan Watches India

I Love Lakme

Tanishq

Lakme Fashion Week

TAG Heuer India

Lakme Salon

ITC Hotels

Lancôme India

Le Méridien New Delhi

L’Occitane en ProvenceIndia

238,247

206,441

167,478

145,697

345,123

109,001

67,002

55,982

55,088

47,647

658,819

412,418

190,234

123,388

89,060

26,004

19,431

14,662

12,962

7,812

INTERNATIONAL BRAND INTERNATIONAL BRAND

BRAZILIAN BRAND INDIAN BRAND







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Bobbi Brown Russia

Yves Rocher Russia

L’Occitane en ProvenceRussia

Lancôme Russia

Clinique Russia

TSUM Department StoreMoscow

Avon Russia

The Ritz-CarltonMoscow

Estée Lauder Russia

InterContinentalMoscow Tverskaya

12,042

11,388

11,158

10,246

6,394

5,030

4,557

3,051

1,250

13,107

Clinique 5,302

L’Occitane 7,691

Dolce & Gabbana 47,517

Estée Lauder 981

FaCEBook Fan RaCE

Top 10 Russia-Dedicated accounts

(April 2012)

VkonkTakE PagEs

number of Followers

(April 2012)

INTERNATIONAL BRAND

RUSSIAN BRAND







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Focus: VKonktake vs. FacebookTen prestige brands have a Russia-dedicated Facebook

page, while seven have taken the plunge on VK. Of these,

Estée Lauder, Clinique, and L’Occitane maintain a page

on both VK and Facebook. VK pages are larger and

growing faster, but register lower engagement rates. The

content on VK brand pages is more focused on events

and campaigns than on Facebook.

sIzE, gRowTh, EngagEMEnT

VK vs. Russia-Dedicated Facebook Pages

(March–April 2012)

0%5% 10% 15% 20% 25% 30% 35% 40% 45%

0.15%

0.20%

0.25%

0.35%

0.30%

0.10%

0.05%

INTE

RA

CTI

ON

RAT

E

GROWTH

8%

38%

Interaction Rate:

0.28%Average Community Size:

5,600

Interaction Rate:

0.16%Average Community size:

8,844

Estée Lauder maintains both a Facebook (3,300 “likes”) and Vk page (1,000 members)





http://www.facebook.com/esteelauderrussia

http://www.facebook.com/esteelauderrussia



DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

Dolce & Gabbana promotes its VK presence across

their site and global Facebook page, boasting the

largest VK community of any prestige brand. The

brand’s VK community is also larger than any of the

Russia-dedicated Facebook pages. Five percent of

traffic to dolcegabbana.com originates from Russia.

D&g Vk posts magazine spreads, celebrities, runway shows, youTube videos, and links to fashion blog Swide

Promotes Vk on global D&g Facebook page

Connecting directly to 45,000+ followers@DolcegabbanaRu tweets links to Vk







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

BrAZiL:

ruSSiA:

iNDiA:

penetration

Largest mobile phone market in Europe. 1.5 devices per person

more mobile phones than

PCs

more connections

than

Lowest smartphone penetration within BRI (28%)

of users access the internet solely through their mobile phones

43%

32%

iPhone

Global Brazil Russia India

iOS

BRAZIL

BRAZIL RUSSIA INDIA

PLATFORM MARKET SHARE

SMARTPHONE PENETRATION

RUSSIA

INDIA

47%

iPad

29%

Android

20%

Symbian

14%

37%

17%

41%

35%

39%

25%46%

9%4%

1%

24% 25%

36%

9%

35% 28% 37%

14%

1%

26%

14%

6%

36%

38%

64%

Mobile, and More MobileMobile may be where the marketing battle is won or lost

in BRI markets, where penetration is slated to reach nearly

70 percent by 2016.14 Many BRI consumers leapfrog PCs,

going from no Internet to mobile Internet.

15

16

17

BRI MoBILE aPP InVEsTMEnT

% Digital IQ Index® Brands

(April 2012)

MoBILE oPTIMIzED sITEs

% Digital IQ Index® Brands

(April 2012)

14. eMarketer, April 2012.

15. “The insider’s guide to mobile Web and marketing in Brazil 2011,” mobithinking, August 2011.

16. “Russia’s Smartphone Penetration Lags Rest of BRIC,” eMarketer, April 19, 2012.

17. On Device Research, December 2010.

NO MOBILE SITE

MOBILE SITE NO COMMERCE

MOBILE COMMERCE SITE

IN RUSSIAN OR PORTUGUESE

Although 61 percent of Digital IQ Index® brands maintain

a mobile-optimized site, only 27 percent are e-commerce

enabled for BRI markets. Moreover, just 5 percent host a

mobile-optimized site available in Russian or Portuguese.







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

no appetite for appsTo date, brands have focused BRI market mobile

investments on the iOS platform. This is out of sync with

Android- and Symbian-led emerging markets. Although

47 percent of brands that have an iPhone app available in

a BRI market iTunes stores, only 54 percent of their apps

have been rated or reviewed in any of these markets.

IPhonE aPPLICaTIon REsPonsE 18

% of BRI apps in iTunes store

(April 2012)

MoBILE shoPPIng PREFEREnCEs By CounTRy

93%

63%

83%

17%

37%

7%

nOT RaTeD OR ReVIeweD



RaTeD OR ReVIeweD

RaTeD OR ReVIeweD

RaTeD OR ReVIeweD

18. “Are you giving your customers what they really, really want?,” Wordpay, April 2012.

InDIa 49% 37%

BRazIl 45% 19%RUssIa 37% 18%

Prefer Mobile site Prefer Mobile app







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

19. “Interconnected World: Shopping and Personal Finance,” Ipsos, April 3, 2012.

20. “Internet Economy G20 Country Profiles,” BCG, March 19, 2012.

sEaRCh MaRkET shaRE

(March 2012)

93%27%

59%14%

7%

19%

81%

BRazIl

OTheR

OTheR

OTheR

InDIa

RUssIa

In Brazil, the beauty retailer Sack’s recently acquired by

Sephora, is buying ads against 17 brands on Google.com.br.

On Google.ru, local retail giant TSUM purchases keywords

against six brands in both English and Russian.

In search of searchIn India, 53 percent of consumers use the web to research

products they wish to buy on- or off-line, while in Brazil 81

percent of online users regularly research and purchase

products (online).19 BCG estimates that BRI consumers

today buy $58 billion worth of products offline that they first

researched online, with Russians comprising over half that.20

Despite the visible importance of search in BRI markets, 30

percent of brands are pursuing paid search strategies on

Google in at least one BRI market. In their absence, local

brands are jumping on the opportunity to buy keywords

at affordable prices:






© L2 2012 L2ThinkTank.com

Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

32

spotlight on Russia Yandex controls 60 percent of the Russian search market.

While Google has made several attempts to gain share,

Yandex maintains the incumbent advantage with Cyrillic

character search superiority, a newly launched English-

only search engine, and a recent partnership with Twitter.

Despite minimal efforts, global brand sites fare

surprisingly well on both Google and Yandex. However,

poor Google SEO—and even poorer Yandex SEO—

complicates the journey to brands’ local sites. In addition,

brands are not optimizing for Russian language keywords

and are failing to purchase brand keywords locally, even

though no more than 20 percent of searches in Russia are

in English.21

On Yandex half of the 30 brands that have a Russia-

dedicated URL do not appear in the top three organic

search results for their English brand name keyword

(versus 26% on Google.ru). Searches for Russian brand

keywords on Yandex fare a little better; however, 43

percent of brand sites still fail to reach the top three.

Google demonstrates similar results for Russian brand

terms at 44 percent.

Only 9 percent of brands are investing (in English) on

Google.ru, while two—Dior and Estée Lauder—are buying

Russian brand term ads on Yandex.

21. “Yandex Tries to Solidify Search Dominance, Keep Google Down in Russia,” searchenginewatch.com, March 8, 2012.

BRanD naME sEaRCh REsuLTs

% of Brands with Russian-Specific URLs

74%

26%50%

43%44%

50%

57%56%

sITe In TOp 3

sITe noT In TOp 3

sITe noT In TOp 3

sITe noT In TOp 3

sITe noT In TOp 3

sITe In TOp 3

sITe In TOp 3

sITe In TOp 3

En

gLI

sh

Ru

ss

Ian







Key Findings

DIGITAL IQ INDEX®:

Brazil Russia India

Empty InboxDespite the rise in the popularity of social media, email

remains the most effective method for driving site traffic

and e-commerce conversion. A recent BCG study asked

consumers in the G20 what online activities they value the

most, and in a majority of countries (including India and

Brazil) email ranked first. (Of note, Russians are the only

ones to rank social networking first).22

While email opt-in is offered on almost all brand sites, more

than a third of the brands never sent a marketing email to

any of the BRI country consumer accounts. Less than 20

percent of welcome emails and only 10 percent of marketing

emails received were in either Portuguese or Russian.

Although more than half of prestige brands capture the

account holder’s country of residence at sign-up, only brands

with a BRI dedicated site provide a segmented, market-

specific email experience.

Seventeen percent sent mobile-optimized emails. This has

serious implications in emerging markets such as India

where 81 percent of Indians with smartphones use them

frequently for accessing emails.23

EMaIL sTRaTEgy

% of Brands

(March–April 2012)

22. “Internet Economy G20 Country Profiles,” BCG, March 19, 2012.

23. “Our Mobile Planet in 2011,” Google/IPSOS/MMA, January 2012.

95%

17%

Email Sign-Up

66%

10%

Sent MarketingEmail

Mobile Optimized

58%

Specify Countryat Sign-Up

70%

16%

AutomaticWelcome Email

% IN LOCAL LANGUAGE







DispersionAlmost half the brands in the Index register as “Feeble”—

demonstrating widespread underinvestment in mobile by

a considerable portion of the prestige sector. The disparity

between the Index leader (164 IQ points) and the Index

laggard (8 IQ points) suggests that this “mobile gap” is

more the result of nonparticipation than subpar perfor-

mance. With a median score of only 76, the majority of

brands are just beginning to make mobile investments,

while a select few early investors are pulling away from the

pack.

DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

Post announcing film launch achieved 4,000+ likes and 1,000+ shares

separate microsite to experience the journey of the panther

Panther Prowess In March, Cartier launched three and a half minute short film

L’Odyssée de Cartier, across television and digital channels

globally. The film, estimated at $5.2 million, features the

legendary Cartier panther on a journey across China, India

and Russia signaling the importance of these markets to

the brand’s marketing strategy. The campaign generated

utilized gated Facebook custom

tab to increase fan base

more than 250,000 new fans on Facebook and 14.8 million

views on YouTube. Cartier extended engagement through

“The Journey of a Panther” edition, an online magazine

showcasing the jewelry and designs from chapters of

L’Odyssée de Cartier. While the brand does not have any

country-specific Facebook presence, the ecosystem of

Cartier sites are available in both Russian and Portuguese.

The film was also shown on television in 12 countries around

the world including South America and 12 percent of online

buzz about the video has been in Portuguese.24

24. Unruly Media, May 2012





http://www.odyssee.cartier.us/



DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

FEBRUARY 2012 MARCH 2012 APRIL 2012

0

3,000

6,000

9,000

12,000

15,000

FEBRUARY 2012 MARCH 2012 APRIL 2012

568,990

10,929

13,803

11,609

588,507 598,621

791,369

1,079,633

CaRTIER youTuBE VIDEo VIEws PER Day

(February 24, 2012–April 7, 2012)

CaRTIER FaCEBook “LIkEs” PER Day

(February 24, 2012–April 7, 2012)

since launch of the campaign, Cartier has gained more

than 250,000 fans

62%

MaRCh 2

L’Odyssée video posted on youTube

MaRCh 2

gated tab launch

MaRCh 5

YouTube video posted on Facebook

L’odyssée de Cartier has generated more than 14 million views

94%





http://www.youtube.com/watch?v=yaBNjTtCxd4












pack.

DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIusInteractive forum enables rate and review of products on sephora site

Play with sephora With more than 200,000 fans on its Brazilian page, Sephora

has the largest BRI-dedicated Facebook page of any Digital

IQ® brand. Sephora, which entered the market in 2010

after an acquisition of local leader Sack’s, utilizes contests

and exclusive promotions on Facebook to engage its local

audience. In a recent promotion held on February 29th,

Sephora Brazil garnered 34,000 new “likes” in just three

days, providing exclusive product for fans.

The Sephora Brasil Facebook page stands apart from its

global counterpart with a focus on customer service. Custom

tab Atendimento provides access to FAQs and custom

searches for users. The local page also leverages the global

Rate and Review functionality, providing fans an opportunity

to provide product feedback.

0

5,000

10,000

15,000

20,000

25,000

FEBRUARY 2012 MARCH 2012

22,422

1,5432,590 3,017

sEPhoRa / saCk’s FaCEBook “LIkEs” PER Day

(February 2, 2012–March 15, 2012)

30% increase in fan base in 3 days following the exclusive offer

Teaser announcing exclusive offer achieved

770 “likes”, 195 comments and 35 shares





http://www.sacks.com.br/site/produto.asp?id=8825

https://www.facebook.com/SephoraBrasil/












pack.

DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

gated custom tab for Clinique 3-step

contest, links to brand site

Custom tab for 3-step competition

3-step success Clinique Russia’s Master of the 3-Step System contest

features educational classes on the 3-step system. Users

that complete the course and enroll friends in the program

earn badges and a chance to win a one-year supply of

Clinique cosmetics. Seamlessly integrated with Facebook

Connect, the campaign has generated a 70 percent increase

in Clinique Russia’s Facebook fan base since the end

of February.

Facebook Connect enables contest registration

Contestants can earn badge and win a year’s

supply of Clinique cosmetics by enlisting

their friends





https://www.facebook.com/CliniqueRussia






DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

The 3-step global campaign has rolled out to Brazil, Russia, and India with local language and e-commerce of the 3-step product campaign

Clinique Global Engagement:

0.01%Clinique Global Fans:

1,756,255

Clinique Russia Engagement:

0.13%Clinique Russia Fans:

10,246

continued

FEB 2012 MARCH 2012 APRIL 20120

50

100

150

200

250

300

350

CLInIQuE RussIa FaCEBook “LIkEs” PER Day

(February 26, 2012–April 12, 2012)

Clinique Russia’s Facebook page grew 70% during the contest window

303

264

aPRIL

Clinique reaches 10,000 “likes”





http://www.clinique.com












pack.

DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

Tag star Power Bollywood star and TAG Heuer Indian market brand

ambassador, Shahrukh Khan greets visitors to the brand’s

welcome page on Facebook. Users that “like” the brand are

treated to a hidden video message welcoming fans. Another

gated tab provides access to local customer service support

including links to live chat. The brand recently leveraged

the announcement of its latest Hollywood celebrity partner,

Cameron Diaz, to grow its Indian Facebook page, challenging

fans to guess her identity as the latest ambassador for

a chance to win a watch. A series of contests and major

announcements like this one generated community growth

of more than 52 percent from mid-March to mid-April.

Local customer service: Gated tab reveals online customer service form, local customer service info and links to live chat

gated tab displays welcome video from TAG

India youTube featuring Tag ambassador & Bollywood star,

shahrukh khan

Contests asking fans to guess or name Tag ambassadors boosted likes





https://www.facebook.com/TAGHeuerIndia














pack.

DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

continued

MARCH 2012 APRIL 20120

1,000

2,000

3,000

4,000

5,000

Tag hEuER InDIa FaCEBook “LIkEs” PER Day

(February 26, 2012–April 12, 2012)

TAG Global Fans:

434,576TAG India Fans:

89,060

MaRCh 7

guess the new ambassador Contest

MaRCh 16

women’s Month Contest

52% increase in “likes” over the contest period

Most Popular City for Tag global is new Delhi, India

















pack.

DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

geo-Targeted MessagingOnly six percent of prestige brands utilize geo-targeted

Facebook posts to connect with BRI consumers. To promote

its sponsorship of Brazil’s Lollapalooza, Calvin Klein coupled

global and geo-targeted messaging on its Facebook wall.

The global Lollapalooza post garnered three times the

interaction rate typically observed on the page. Calvin Klein

followed up with a geo-targeted photo album from the event,

allowing Brazilian users to tag themselves in photos. A Twitter

contest gave away backstage passes.

Promotional items are targeted toward the Brazil

audience on specifics of Lollapalooza linking

additional social channels for the event updates

Global Twitter handle @CalvinKlein hosted a Brazil-targeted twitter

contest awarding a randomly selected follower who retweeted the message 2 backstage passes for Lollapalooza. The contest message was retweeted

almost 1,000 times

geo-targeted album post of the event with photobooth-style pictures enabled festival attendees to tag themselves, achieving 2,612 “likes” and 59 shares





https://www.facebook.com/CalvinKlein





DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

42

FEB 2012 MARCH 1–15 2012

100

200

300

400

500

600 589

FACEBOOK ‘LIKES’PER DAY

Memorable weekendsInterContinental Hotel Group recently held a “Memorable

Weekends” contest on Facebook, geo-targeting patrons

in India, Middle East, and Africa. Conducted from February

to mid-March, the contest encouraged users to upload a

picture of a memorable weekend. User photos that got the

most votes were awarded free nights at Holiday Inn and

InterContinental properties within the respective region. The

global InterContinental Facebook page gained 9,000 fans, a

40 percent increase in fan base from the start of the contest.

India geo-targeted post linking to the Memorable

weekends competition contest site

InTERConTInEnTaL gLoBaL “LIkEs” PER Day

(February 26, 2012–April 12, 2012)







DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

Digital Jewel of IndiaLocal Indian jewelry leader Tanishq tapped into user

generated content for inspiration for Mia, its every day

jewelry collection targeted at professional women. The brand

promoted the “My Expression” campaign across Facebook,

Twitter and a dedicated microsite. In phase one, users

were encouraged to upload ideas and designs across

a variety of media. In phase two, customers voted for their

favorite designs.

Tanishq is no stranger to sophisticated digital campaigns.

In the fall of 2011, Tanishq launched a campaign designed

to educate the Indian audience on diamonds. The multi-

platform campaign generated awareness through television

Votes are being tallied for the lucky winner of

“My Expression” contest

Mia Jewelry line is targeted at younger audience

“My Expression” microsite highlights entrant designs







DIGITAL IQ INDEX®:

Brazil Russia India

FLash oF gEnIus

Missing Diamonds campaign starring classic

Bollywood star amitabh Bachchan. Contest

game page incorporates Facebook for login, and

integrates gaming with the online and physical world

The campaign incorporated TV commercials educating the target audience on the specialty of diamonds

The virtual gaming world is brought to life for participants

selected for the final phase of the

campaign

Facebook documented the adventure of the final contestants solving the puzzle in Bombay

commercials featuring Bollywood icon couple Amitabh and Jaya

Bachchan. Consumers were then invited to an online game

in which they helped Amitabh Bachchan solve the mystery of

who stole Amitabh’s Tanishq diamond necklace—a gift for his

wife. Five winners who solved the mystery in the shortest

period of time were invited to take part in an ground

chase to hunt down the culprit in Mumbai. The winner got

to gift the necklace to Jaya Bachchan.

continued







DIGITAL IQ INDEX®:

Brazil Russia India

sCoTT gaLLoway Clinical Professor of Marketing, nyu stern Founder, L2

Scott is a Clinical Professor at the NYU Stern School of Business, where he teaches brand strategy and digital marketing, and is the founder of L2, a think tank for digital innovation. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer. In 1992, Scott founded Prophet, a brand strategy consultancy that employs more than 250 profes-sionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s Global Leaders of Tomorrow, which recognizes 100 individuals under the age of 40 “whose accomplishments have had impact on a global level.”

Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley.

MauREEn MuLLEn Director of Research & Advisory, L2

Maureen leads L2’s research and advisory practice, where she helped develop the Digital IQ Index®. She has benchmarked the digital marketing, e-commerce, and social media efforts of more than 300 brands across pharma, auto, luxury, specialty retail, beauty, and the public sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed-care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern.

MaTThEw BuRns European operations Lead, L2

Matthew’s career started at then Internet start-up Real Media, where he optimized online campaigns and co-led its pro-consumer privacy initiatives. He then joined Procter & Gamble’s European headquarters, working on insights and strategy, and establishing the global marketing ROI capability for the Prestige division. Prior to joining L2, Matthew worked on strategy and marketing projects at McKinsey & Co., where he led engagements in fields as varied as mining, insurance, packaged goods and media. Matthew has a B.S. in Mathematical Economics and B.A. in Philosophy of Science from Wake Forest University, as well as an M.A. from University of Chicago in International Relations.

R. DanIELLE BaILEy L2

Danielle began her career at The Home Depot, Inc., where she led a variety of internal consulting engagements focused on sup-ply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York Times Company, NBCUniversal, Disney/ABC, Maxim magazine, and Zagat. At L2 she has benchmarked the digital competence of brands spanning the specialty retail, public sector, pharma, wine and spirits, travel, and financial services industries. Danielle has a B.S. in Systems Engineering from the University of Virginia and an M.B.A. from NYU Stern.

haRIsh kRIshnaswaMy L2

Harish began his career in St. Jude Medical where he led R&D efforts for implantable defibrillators and pacemakers. He went on to spearhead six sigma initiatives and manage several internal consulting engagements ranging from supply chain management to product marketing. While attending business school, Harish provided strategic competitive defense solutions for a Fortune 500 pharmaceutical client. Harish has a B.S. in Biomedical Engineering from Johns Hopkins University and an M.B.A. from UC Berkeley.

sTasha RosEn L2

Stasha has experience developing a variety of marketing initiatives, including those in the Public Programs Department at the American Museum of Natural History. She recently received a B.A. in Molecular, Cellular, and Developmental Biology from Yale University. While an undergraduate, she performed research on bacterial RNA degradation and completed her senior thesis on imaging technologies in microbiology.

Doug guThRIE Dean, The George Washington University School of Business; Founder, guthrie & associates

Doug has been an expert in Chinese economic reform formore than decade, a trusted adviser of both multinationals andlocal Chinese companies and a student of China for some 25years. He is the author of Dragon in a Three-Piece Suit: TheEmergence of Capitalism in China, China and Globalization: TheSocial, Economic and Political Transformation of ChineseSociety, and Social Connections in China: Institutions, Culture,and the Changing Nature of Guanxi. He is currently writing

China’s Radical Transformation: Economic Reform, GlobalIntegration, and Political Change in the World’s Largest Nation,which is an in-depth look at how China’s government-drivenform of capitalism has successfully overcome traditional theoriesof development and helped China become the economicand political juggernaut it is today. In addition to these majorworks, Doug has published more than 60 articles on China andhas been an invited speaker on a number of occasions.Management, Leadership, and Corporate Governance areother areas of expertise.

Doug has taught at NYU Stern, Harvard Business School,INSEAD, and the graduate schools of business at StanfordUniversity, Columbia University, and Emory University.He received his B.A. in Chinese literature from the Universityof Chicago and a Ph.D. in organizational sociology from UC Berkeley.

JEssICa BRaga L2

Jessica is an art director, specializing in identity, iconography, event graphics, and invitations. She began her career in fashion, designing textiles and prints at Elie Tahari’s studio, and then focused on the brand aesthetic across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, and an A.A.S. in Illustration from Rochester Institute of Technology.

aaRon BungE L2

Aaron is a graphic designer who specializes in print design, branding and identity, packaging, and web design. His approach is both aesthetic and functional, characterized by clear, intelligent design appropriate to the project at hand. He began his career tailoring projects for the Chinese, Australian, and U.S. markets across multiple design disciplines and in multiple languages. Aaron has a B.F.A. in Graphic Design from Iowa State University.

TEaM

a special thank you to sarah McElwee, Jing yang, and Catherine de Vaire for their data collection efforts.





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