No one wants to be the next Kodak. A company that was the indisputable leader in its field until the future arrived and it refused to adapt. It stood as an example of exactly what not to do in business, and while many companies still stubbornly refuse to plan for their own obsolescence, many others have taken the lesson to the heart.

Instagram, for example. When Vine’s share of the social media market began to grow, Instagram fought back by adding its own video feature. And now, as Snapchat’s popularity reaches a peak with an estimated 100M daily users, 65% of whom actively post content, Instagram has adopted its rival’s key feature with Instagram Stories.

Which, on the surface of things, makes unquestionable sense. A free social media app’s revenue relies on being able to serve ads to its user-base, meaning that constant engagement with the app is imperative. Any barriers to that interaction must be removed. According to Kevin Systrom, Instagram’s co-founder and CEO, the Instagram feed was treated with a certain reverence that ran counter to regular active engagement. This led to the trend of the ‘Finstagram’: secondary accounts that are created — usually by young women — to act as a more intimate space in which to share more regularly, and with less concern for presentation.

In short, Instagram Stories was created because Systrom and his team needed to circumvent some of the unwritten rules that caused users to post so infrequently. So a function that borrows so heavily from the laissez-faire inclinations of Snapchat allows users to — in the words of Systrom,

“…experiment with a bunch of different creativity in this new format…If Instagram is built around highlights, we’re filling in the space in between…We’re capturing all the world’s moments, not just the best ones.”

Which might just be the problem. On the one hand it addresses an issue: That of a decreasing number of average posts per user. But on the other, it may solve this problem at the expense of Instagram’s core appeal. This is an app that rose to prominence because its users could rely on it to provide beautiful, perfectly curated images from professional and amateur creative minds alike. This is an app that, with the help of numerous filters, allows anyone with a smartphone to feel like — and maybe even become — an artist, a photographer, a model. There is something highly aspirational about the app.

Stories, though only one feature, could be the beginning of a slippery slope. It could mark a shift towards Instagram becoming a constant stream of banal content. In the long-term, this could alienate Instagram’s core users.

But all of this is very much conjecture. It’s worth noting that this is hardly the first time the product has seen a fundamental shift in its features. It was originally called Burbn and was predominantly a location check-in app, but after observing the way its users interacted with the service, the team noticed something interesting. People weren’t using the check-in, but they were utilising the photo-sharing function. And so that became the foundation upon which Instagram as we know it was built. So perhaps this latest change will merely be a reflection of that initial shift.

At the end of the day, people are fickle, and love for a social media app can very quickly turn to disdain and then indifference. Bebo has long since been relegated to a forgotten corner of the internet. Myspace’s failure to capitalise on the strength of its music function, led it down a similar path, even with the much-publicised backing of super star Justin Timberlake. Even now, the two pillars of modern social media are suffering: Facebook is still dealing with a reported great youth migration, and Twitter’s growth has stalled, sending a ripple of panic through investors. And many of the new kids on the block, such as Ello, and Medium are contending with their own troubles.

With all this in mind, we’re left with a simple question. Is it better to adapt, in an attempt to attract the widest possible user-base? Or should the emphasis be placed on developing the things that saw you rise to prominence in the first place?

I guess we’ll just have to wait to see how this story turns out.

Two weeks of Cannes are over – an extremely great, exciting but also exhausting time. Strenuous for the brain and the creative muscle. 25 judges from 25 countries. 25 completely different minds with different views, with statements, inflammatory speeches and discussions; simply fantastic.

My conclusion from the area “Direct”: there weren’t any radical, major trends, but there certainly was a “hidden trend”, namely Gender Equality. This issue is becoming more and more important. No matter whether female, male, transgender or homosexual – every person has the same rights.

This is recognised not only by the NGOs but also more and more Super-Brands are showing a clear stance and taking a stand.
A great example is Doritos:

My other highlights

Snapchat, WhatsApp, mail and Facebook … That all trends in communications bring a work that Grand Prix shows that our voice is our most original communications organ, proving “The Swedish Number”:

And yes, breast cancer prevention can be fun. A lot of fun even:

My personal favourite is Case OPT-Outside of REI: it’s incomprehensible when an outdoor retailer abolishes its strongest sales day of the year and thus triggers a whole movement. And with a clear message: do not go shopping – go outside on Black Friday. Enjoy your life, your loved ones and nature. Great great great!

Until next year!!

Carole Harib, CMO Sky Consulting and speaker at Serviceplan International Roadshow France (8 June 2016 – 2 pm // House of Communication in Munich) gives as a guest author an insight into her daily consulting practice with a topic that is close to her heart.

Naturalness or a return to a brand’s roots

As the sun sets on hyperconsumption in a world characterized by a fast pace of life and urbanisation, the need to reconnect with nature is becoming increasingly pressing and a major societal issue. The attitude displayed today by consumers with regard to beauty and cosmetics brands systematically addresses the question of naturalness.

Consumers are drawn to naturalness for several reasons: a desire to avoid aggressive ingredients, a quest for harmlessness (Defence), nutrients, a focus on the driving force of life (Health), and the urge to reveal and enhance this driving force of life via the effectiveness of natural products (Beauty).

Two types of arguments emerge as a result:

  • A first principle which consists in seeking out the driving force of life at its very source (Mother Nature): incorporating and enabling the virtues of the ingredient pass into the body (i.e. I am what I eat, my skin is what I give to it), the end result being beauty and health (consequence of the principle and satisfaction arising from respecting it)
  • A second principle based on the quest for beauty first and foremost (e. I am what I look like, only the result counts): action, repair, remedying a deficiency, and an attitude which implies that health is inherent to results which can be seen (confidence more than health)

These two different registers reveal two paradigms, each revolving around a coherent system of beliefs and representations.:

  • The paradigm of natural nature or complete naturalness (Mother Nature) encompasses everything that is universal and natural as well as essence itself. A “dogmatic” paradigm stemming from faith in a holistic belief, possibly with an underlying hint of guilt, and the concept of having been led astray, and not respecting the dogma.
  • The paradigm of cultural nature and efficiency which encompasses the desired effect, specificity, the “for oneself” factor, beauty, proof, and even science. A “pragmatic” paradigm stemming from faith in a belief that is confirmed, certified, proven, although tinged with the risk of potential disappointment and fallibility.

The complete naturalness paradigm is firmly rooted in a “I Must” stance and efficient naturalness in a “I Need” stance. If the first paradigm, consumer attitudes reveal a level of moral involvement which is more psychological than behavioural, whereas the second is more closely intertwined with the notions of justification and motivation. However, both work together to establish a conviction which combines image of the self and benefit for the self.

Individuals are multifaceted, and even more so today in a context of financial downturn, stress and intense competition. Cosmetics brands thus need to provide reassurance (naturalness) and be convincing (efficiency / proof). It is possible to consider a purchase based on conviction without reassurance, but the opposite seems much more difficult (reassurance without conviction?).

Beyond these broad principles, the promise of naturalness in cosmetics embraces a wide range of territories exploited by brands striving to claim and play this card: harmlessness/safety (nothing nasty, green ingredients…), origins, “sourcing”, selection of ingredients (correlated with an authentic and rare aspect), bio-ethics (affirmation of a societal commitment), biomimetics (combination of science and nature, synergy and symbiosis of active principles with the skin), pharmacopeia, herbalism (therapeutic cosmetics via plants), inspiration sought from ancestral beauty rituals (discovery and benefits in terms of harmony and wellbeing), sensorial nature (experiential benefit of nature), and minimalist nature (simplicity, soberness…) …

Cosmetic brands display five main approaches to nature:

  • “Botanical” approach: respect for the integrity of the ingredient (paradigm of complete naturalness/Mother Nature, mythological approach revolving around the power of nature)
  • Ethical approach: absence of harmful ingredients or a focus on ancestral traditions
  • Technical approach: technological nature enriched with distillates obtained by refining
  • Ethnic approach: nature associated with traditions inherent to other cultures
  • Health approach: therapeutic powers of nature

Although mass market brands or brands with a longstanding commitment to naturalness have been able to lay claim to the fact that naturalness is an integral part of their DNA or have succeeded in incorporating this claim, luxury brands have not yet undergone a “natural” revolution. For the first time, luxury brands have shown signs of a decline on the cosmetics market relative to more “natural oriented” brands, triggering a wave of purchases of natural brands by luxury groups well aware of the potential of naturalness.

This is a real challenge for luxury brands…

How can a luxury brand simultaneously claim the benefits of pleasure, a belief in abundance (no limits) and the benefits of naturalness and/or responsibility without risking accusations of lacking legitimacy and credibility, or even of manipulative temptation?

How can the equation be solved when two worlds are steeped in antagonistic semantics?

In view of the fact that societal, economic, political, and environmental crises have put in question certain values which once structured the purchase of luxury products (ostentation, possession, impulsiveness, costliness…), the trend towards naturalness and sustainable development could be an opportunity for luxury brands to promote what makes the essence of luxury itself.

But how should they embrace naturalness? Which angle should they adopt? Is there a naturalness specific to luxury? Will they take their commitment one step further than the relationship to products or consumers so as to adopt a strong societal approach?

Naturalness is well on the way to becoming one of the main trends in the years to come. Will it be a must for luxury brands too?

“Iconic brands” are always regarded as the original. They are in the position to claim something for themselves, be it a colour, shape, or logo. The stronger and more unique the brand characteristic codes are, the better the chances are to assert oneself in strong global competition. Coke has at its disposal a unique bottle shape, distinctive lettering and a colour – therefore, everyone who chooses Coke should enjoy this brand experience.

The Coke-colour-sense is not silver, not green, not black. It is simply red. To fail to unequivocally reserve the colour now would be foolish and risky. Competition in the beverage area has significantly increased in recent years.

There is a large risk of losing ground in brand communication by means of sub-brands and thus completely different colour codes. Therefore, it is fitting to place everything on a clear brand image and to promote one brand and one image.

Marketing funds can be bundled and instead of communication for many individual variants, the brand essence can be centrally supported. Communication is becoming ever greater and, in the case of the so-called Love Brands, is now shifting away from product communication towards image communication. Given this, what colour should the brand have? Red? The discussions in the individual marketing departments can be vividly imagined.

A brand needs a unique colour. Nivea followed the same principle several years ago with its brand management. The brand name was placed in a blue circle: the manifestation of the blue container and thus the visual brand essence. And if this is feasible for a product line of hundreds of individual cosmetic items, then it should be child’s play for a brand with few sub-ranges.

Coke’s move is neither particularly brave nor provocative; it is the logical move of value-oriented brand management. Thus, it lays the right foundation for the future, because the more digital brand communication becomes, a clear and, in this case, single-coloured brand image is required.

First published in German by Werben & Verkaufen

In front of me the plate is crawling with life. The recipe is simple: Take an octopus, chop it into pieces and serve with sesame seeds. My colleagues smile and tell me: “You need the yellow sauce for that.”

***

A couple of days ago I started my first journey to Asia. First to our office in Beijing to help with work for a client, do internal workshops and a presentation at the One Show China, then directly onto our office in Seoul to do the same presentations, workshops and work on a project for a different client.

Beijing never stopped surprising me. The city is full of smog, but it turns out they all ride electric scooters. When you think of China, you think of tea, but the coffee there is really great. I ordered a “Cajun Chicken Sandwich” but got a Baguette with spicy egg salad. In all three cases not at all what I expected, but really great! So my first impression of Asia was that everything is surprising and different. At the same time, it felt like it’s all the same.
Our cultures are very different. Actions that are normal at home can turn out to be something different in another culture: Blowing your nose in a public place is impolite. So is shaking the hand of the wrong person first. What seems like an incidental encounter with the boss of your client should be considered an honor.

But as different as our cultures are, as similar are the challenges for brands trying to sell their products and agencies trying to help them.
Chinese Advertising-Godfather Peter Soh used completely different words, but said the same at a densely packed Britain-themed after-party in Beijing, as Branding Icon Tommy Li on the Design Heritage stage in Seoul: History, opinions, technology – it all comes second. We need to tell the right story.
Pixar-Legend Dr. Alvy Ray Smith talked passionately about how the speed of computers are making animation so lifelike that we cannot tell it apart from reality. But as much as we can make it look like an actor, we still have no clue about how to get the computer to do what the actor does.
That is true for advertising, too. We can teach people how to develop the right ideas, but to tell the good ones from the bad ones is about emotional intelligence. We need people with the right kind of heart and a good part of intuition. And we need to help them fight for their ideas even though it is not always easy to fight for a feeling.

***

The tentacles stick to the inside of my mouth as I chew the life out of the rubbery arm. It is still alive and fighting while it slowly releases a delicate flavor that mixes with the sesame dip. “This is a new kind of feeling” I think and smile back at my colleagues.

Be honest – would you believe an entrepreneur who boasted to you: “We know our customers better than ever, thanks to digitalization and the Internet! You have given us a customer data paradise, which reveals customer demands which we can promptly meet. We make our customers happy – and they reward us with their purchasing power and undivided loyalty.”

That sounds good, doesn’t it? But let’s face it: not many entrepreneurs could say that so far. Most are currently experiencing quite the opposite: customer loyalty is in decline – they are turning away, are suspicious and “ad-phobic”. 44 percent of all manufacturers’ brands – and the number is increasing – are losing more than 30 percent of their regular customers per year.

What is going wrong? To get an answer, it helps to change perspective. Consider the situation from the perspective of consumers. According to global studies, they are disappointed. In the US, for example, more than four out of five consumers (84 percent!) are frustrated because companies fail to deliver what they promise. It doesn’t look much better in Germany: where only 30 percent still trust brands and their messages.

This almost chronic mistrust is pure poison in a time when consumers have more freedom of choice than ever. They decide when and where they shop. They decide when and where they consume which media. If they are disappointed, they are quickly gone – because a better offer seems to be waiting only a few clicks away. Buying obeys a nervous, complicated rhythm nowadays. Consumers have long mastered this, but a lot of brands and retailers have not.

Instead of the hoped for nearness, the advertising industry is experiencing alienation. It is as if they don’t know consumers better through digitalization and the Internet, but in fact are losing sight of them. For entrepreneurial success this is a disastrous development. What can be done? One thing is clear; previously reliable solutions won’t help here, and neither will advertising power nor wily technical finesse. We need a fresh start.

Consumers today are self-confident and demanding; they know their power. Accordingly, they wish to be treated as partners – not as someone you can talk into taking something. This means that companies need to see them as partners, and grant them more influence. In consequence, this means that companies must put consumer needs at the centre of their actions.

Customer Centricity is the name given to this in the USA. The product is no longer the starting point of all marketing activities, but the consumers and their life phases. They are the starting point of all activity, all production, brand management and marketing. The sequence has been reversed.

Business models such as Airbnb and Uber show the way. Consumers needs have to be at the very beginning of product development. These models demonstrate that not only products and services are critical to success, but, increasingly, intangibles such as connectivity and information – elements which connect consumers and businesses in new and valuable ways.

To inspire consumers, the marketing of the future has to create worlds of experience in which engrossing customer experiences ensure long lasting customer relationships. Flight companies then sell travel events, not tickets. And car makers offer mobility experiences, not just automobiles. The product? It’s only part of a larger picture.

If companies want to build their future through customer centricity, they have to go through numerous change processes. The digital transformation, which currently pervades companies, can be an ideal starting point. For marketing this change means, among other things:

1. Away from the “14-to-49-years-mentality”…

…towards micro-segmentation and personalisation

Because consumers move in the new consumer media world individually, media planning with rough-edged categories like “14 to 49” can no longer achieve a lot. In future the focus won’t be on target groups, socio-geographic data and ranges, but the stages of life, needs, experiences of each individual consumer. For the media planning for this personalization, we need more than ever to focus on methods such as micro-segmentation.

This personalisation will also determine customer-base growth and maintenance. It will be more about the quality and depth of the individual contacts and less about quantity. This trend is already clearly visible in the Social Web. It used to be like a contest about getting as many followers as possible, but because such contacts have proved to be worthless, now careful personalized effort is made to get fewer, high-quality contacts. Only if customers are satisfied, do they become multipliers.

2. Away from the channel perspective…

…towards customer journey accompaniment

Nowadays, consumers use more channels, contact points and marketing resources for their purchases than ever before. The customer journey is now many times more complex than even ten years ago. Online or offline? It doesn’t matter, any mixture is okay. Studies show that few companies have concerned themselves with the customer journeys of their customers. Which type of customer can be inspired and how? If interested, how can they get further information and from where? Which channels are usually used to take the final buying decision? The need for this knowledge is urgent and will have a strong impact on the structures and processes of marketing.

When companies want to explore and accompany the customer journey, they must be clear on one point: it doesn’t end with the purchase! Sometimes it only really gets going then, with public relations, and with “Internet of Things” products – which have an estimated market value by 2025 of up to eleven trillion Dollar. Such goods are constantly updated and need to be cared for long term. Companies are therefore well advised to increase their marketing budget for the replacement phase.

3. The way from the advertising message…

…to relevant content offers

Exaggerated advertising promises no longer match present purchasing behaviour, because consumers believe nothing without checking. Up to 90 percent of product research is made before visiting a store. Therefore, companies need to develop ideas on how they can support potential customers at an early stage with information and persuasive arguments.

It is no wonder that the development of content strategy and content marketing is currently among the most important communication tasks. One of the now numerous examples is L’Oreal. The group said goodbye to its “Shelf & Sell-principle” and instead accompanied the contact points of the customer journey with smart content marketing – for example with the app “Make Up Genius”, which allows consumers to try different make up for their faces. Mail order experts, Otto Versand, inspired their customers and employees with five blogs.

We are only at the beginning, content marketing and storytelling will evolve with great force. But we need to explore in more detail which channels can be used for particular purposes – and what content is helpful there. The “this is a donut” example clearly shows how much content has to be adapted to the channel:

4. Away from selfish data analysis…

…towards the use of media for customer satisfaction

In future it won’t be about hoarding data for advertising purposes. Instead, companies should consider how they can use the information to shape their business model, improve their products – and ultimately to make their customers happy. That is the real power of Big Data. Its intelligent use can be absolutely decisive.

The problem: companies need high data quality. But, according to a study from the UK, around 50 percent of consumers give intentionally false information because they are suspicious. They only give useful data to companies they trust. These consumers need the assurance that their information will not be misused, but only used for their personal advantage – in the form of a surprising and exactly fitting offers. This trust is hard to earn, no question. But it is the basis for a company’s success.

That’s the power of customer centricity – and it brings with it highly sophisticated tasks for Marketing, it is becoming increasingly responsible for a company’s success. Almost half of German CEOs will therefore need to invest more in it over the next three years.

Marketing deserves this powerful position, but only if drops outdated mechanisms and tactics – and instead has the courage to venture into a new beginning. Consumers will be grateful. And that wholehearted statement at the beginning of the article – “We make our customers happy – and they reward us for it with their purchasing power and undivided loyalty” – comes within reach.

The article was published on capital.de (in German).

These days, few of us regard the profession of event management as an unusual one. Typically, the profession is thought to be limited to rather a narrow range of tasks related to developing and carrying out festivals for companies and individuals. However, my over 10 years of industry experience suggest that the profession itself is largely underestimated in Russia.

This underestimation is a result of a massive tangle of notions that has formed in the course of the extensive changes in the country’s economy. I am going to try to unravel this tangle to reveal the potential of the events industry and the profession.

Event producer vs. event manager

Some may think that there is hardly any difference between the two professions. Many would say, no matter what you call it – it will still mean the same. Yet consider this: the name of a profession makes all the difference. Firstly, it is important in terms of the identity of the professional, and, secondly, in terms of forming a clear and thorough understanding of the tasks assigned to the said professional.

This is why I suggest we look into the essence of the words ‘producer’ and ‘manager’ to define the main differences. According to the Russian Wikipedia, a producer is a professional directly involved in the production of a project, overseeing the financial, administrative, technical, creative and legal aspects of the activity and regulating the policy in the course of a project. According to the same source, a manager is a director, executive, or a specialist in administration. A manager is a business official who is part of the company’s middle or senior executive staff. The determinant attribute of a manager is that he or she has subordinates.

This actually means that the word ‘producer’ is used to describe wider areas of activity (a film producer, a music producer, an event producer), unlike the word ‘manager’ which suggests being in control of, organizing and regulating business processes and a company’s operations. To sum it up, a producer has a scope of tasks that is rather different from that of a manager, despite the fact that by default they are both efficiency-oriented.

The global market practice clearly demonstrates that the event manager is often excluded from the executive personnel and does not always have subordinates, though a manager, no doubt, takes over some of the project leader’s functions in the course of the project and controls processes and people.

“During my many years in the agency business I’ve realized that what I’ve been doing is not project management, it is project production. My task is not just to create and organize a project, it is rather to properly present it to the target audience, to build effective communication, to come up with a marketing project that will be interesting and relevant for the end user,” says Viktoria Shakhova, Louder’s leading event producer.

This is why Louder believes it is both clearer and more correct to refer to the profession as ‘event producer’. Incidentally, this is exactly what it is called in Europe.

How to become an event producer?

This is the question of the day in the industry. The thing is, there is no place in Russia where you can get an official degree in event production. There are related areas, such as brand management, management in show business, public events management, PR, marketing, etc. However, none of these areas reflects the entire essence and potential of the events market development.

Meanwhile, the viability of an industry is supported through specialized education. By the way, the absence of such education creates considerable staffing problems in the Russian market. Say, if we take Europe, the average age of an event producer will be around 35, compared to 25 in Russia. A Russian event manager is in fact a self-taught person: we all learn the trade mainly through trial and error, using as much knowledge as we have managed to accumulate working on our previous projects.

Another problem is lack of understanding of the profession’s potential. Many people are unaware that ‘producer’ spells unlimited opportunities for professional growth, a variety of related areas of expertise that always require gaining further knowledge, a vivid life full of extensive social networking and meeting interesting people, as well as an unlimited potential for financial accomplishment. Typically, the people employed in this area in Russia are likely to burn out before they turn 30.

Few people understand that today’s events industry includes not only public events (such as private events, city events, charity projects), but also event marketing (by which we mean brand-oriented events: HR events, MICE, B2B and B2C events). Meanwhile, to organize such an event you need to have all kinds of knowledge. The first block of events requires knowledge of basic processes related to the management of celebratory events, knowledge of psychology and people’s taste preferences, while the second block requires knowledge in marketing communications, brand management, PR and other areas of marketing.

It would be nice if a leading Russian university established an education programme so you can get a degree as an event producer. It would contribute to the formation of the fundamental market principles and promote the civilized development of the events industry. However, at this point you can learn the basics of trade only by getting a job at a major agency. And move up through the ranks to become a successful producer, gaining experience from senior producers, creatives and strategists.

It’s never too late to become an event producer. I believe, the profession comes easier to females who have a degree in law or economics, and to males who have a military or engineering education. These kinds of education encourage systems thinking, which is also quite an asset for a producer.

The future of event production

Today, an event producer or an event manager is rather a trouble shooter, a gofer of sorts, who uses the web to find whatever is required. I mean, this is the superficial judgement prevailing on the market at large. In reality, a professional event producer does much more than he or she seems to be doing. This person is always prepared to account for the project deliverables both to the client and to himself or herself. This person can select adequate subcontractors, develop a strategy using integrated approach, implement a project, and identify the KPIs and so on.

For an event producer, an event is the main effective instrument that he or she uses to inspire people, involve them in the process, offer them an opportunity to use their potential, educate, entertain, and get across the values of a brand, a person or even a whole city. The entire history demonstrates that events have been the main means of communication between people uniting them in the name of a certain cause or idea. This is why you can no longer underestimate the events industry potential.

You have to start with yourself. Which is exactly what I did. I regard my profession as significant and important. It not only creates value in terms of the brand’s commercial objectives, it also contributes to self-realization of individuals, helps discover new names and makes way for talent. Encourage personal development, find your identity, and love what you do. An event producer is a great profession and a state of mind. Let the sky be your limit, and together we’ll surely make a difference in the industry!