Presentation given at the Food & Beverage Conference in Athens, November 2008. Based on insights research done in Greece, we present 10 topics to (make you) think about, with a focus on customer centric marketing and innovation. You can download this presentation over at www.slideshare.net/futurelab I am available for speeches and presentations at your event.

1. 10 things to make you think

2. FUTURE LAB We are Futurelab

4. A flexible boutique: 2 partners – 3 support staff – 7 associates – 28 specialists/contributors Athens – Barcelona - Brussels – (Bucharest ) – Johannesburg – Hamburg – Moscow – Kiev - Munich - Shanghai Priviliged Relationships Futurelab Structure

5. Welcome to the Bolshoi FUTURE LAB

7. Crisis

8. Especially Now Times are Tough. WHY BOTHER? Consumer Behaviours During a Recession Changes Source: OgilvyOne, October 2008 Delay Purchases Plan Ahead Service & Rewards Social Circling Save & Splurge Deal Seeking FUTURE LAB

9. FUTURE LAB RESEARCH Case Study: the US market In the last years, US consumers spent approximatively US $1 trillion on food, or almost 10% of the GDP. 1 The pie chart above describes the consumers’ reactions to the current economic situation. With food prices going up (see previous slide), brands are now facing a harsh truth: customers are disloyal.

10. FUTURE LAB RESEARCH Case Study: the US market At the same time, consumer expectations have gone up, as shown in the above Accenture study. Compared to five years ago, 44% of US consumers surveyed have declared that they have higher customer service expectations. 23% have declared that their expectations have gone up since the last year. Furthermore, only 3% of consumers worldwide say that their CS expectations are always met.

11. FUTURE LAB RESEARCH Case Study: the US market With the advent of new media and the ever-increasing awareness channels, US consumers now have increasingly higher expectations, with the CPG sector making no exception. Companies are now finding that issues such as sustainability, wellness and transparency are coming up more and more often. At the same time, the proven lack of effectiveness of traditional marketing methods is raising the stakes even higher. And, to top it all off, studies show that, even though companies are gathering huge amount of data about their customers, only a select few know how to interpret it properly.

12. Unlimited Choice

14. How to make that light shine on you?

15. Your customers are not a database – and not a statistic

16. TRADITIONAL SEGMENTATION “ Look at the numbers” Elsa (Female/urban/mid-income) CASE STUDY: 25-30 year olds 25 29

18. Most Marketers Don’t Really Know ... CHALLENGES/OPPORTUNITIES QUESTION WHEN DID YOU LAST “SPEAK” TO A SHOPPER? WORK IN A STORE? P & G employees will need to get out of the office and talk with customers. India Everyone should do every job in the store at least once in his career. FUTURE LAB

19. Insights into Ideas The Greek Consumer

20. FUTURE LAB RESEARCH Issues and challenges : lack of insight Retailers focus mainly on collecting and tracking data about “purchasing behaviors,” “geographics,” and “demographics.” All in all, Most food retailers know the “what” of their customers—what they buy, purchasing frequency, etc. But few know the “why” .

21. 10 things to make you think

22. 10 Insights to make you think – 10 Questions to ask yourself

24. 76% of consumers don’t believe that companies tell the truth in advertisements Yankelowich,2006

26. FUTURE LAB RESEARCH I&C: Transparency Transparency? You are being watched….

27. FUTURE LAB SAB Miller: making a difference through beer Page 12 Our key priorities Discouraging irresponsible drinking Making more beer but using less water Reducing our energy and carbon footprint Packaging, reuse and recycling Working towards zero-waste operations Building supply chains that reflect our own values and commitment Benefiting communities Contributing to the reduction of HIV/Aids Respecting human rights Transparency in reporting our progress Source : http://www.sabmiller.com/NR/rdonlyres/B5B9E625-8661-47E4-9EB3-783C2D977036/0/SABMiller_SDR_2008.pdf FUTURELAB COMMENT Sustainability, CSR – do good and tell about it, in very straight forward ways. The ‘we employed this many people, and paid this much in taxes, etc” works well. Dont fall into the PR trap, but tell people what you do, and why you do it. CSR

28. Transparency It doesn’t have to be complicated….

29. Are your campaigns truthful? Does the brand experience match the promise? At every touchpoint?

30. Question: How transparent are we in dealing with out customers?

32. Local Food Authenticity

33. Authenticity Your own private sheep…

34. Dole Traceability Authenticity

35. Crop to Cup Traceability Authenticity

36. De Kas As authentic as it gets – self grown food restaurant Authenticity

37. FUTURE LAB Brewtopia - Custom branded beverages Page 28 Since 2002, we've dedicated our tiny minds to customising Beer, Water & Wines online You can now even create your own labels for delivery Worldwide We have no minimum order, no setup charges and 100% money back guarantee on all products. Source : http://www.blowfly.com.au/ FUTURELAB COMMENT How about doing this yourself (in cooperation with a small printer with an entrepreneurial mindset)? Customised labels for parties, at an affordable price. Which 18-year old wouldnt love to have his personal bottles at his graduation or birthday party? How collectable would that make the bottles? A great tool for engagement, collectability, and straight forward sales improvement. Customization

38. Question: How authentic are we ?

39. “ The consumerism here is horrible – too many products, too much waste….”

40. Reduce waste and over-abundance 100 Calorie Packs

41. FUTURE LAB RESEARCH Future trends Reduce waste and over-abundance Mini-packs

42. 100 Calorie Packs

43. The ultimate give-away?

44. Show that you (really) care

45. FUTURE LAB RESEARCH Future trends Functional food brand for pregnant women A French company has developed a new line of food products for pregnant women. Dubbed Luna , the range consists of eight products made with organic ingredients, all aimed at ensuring women get the nutrients they need for a healthy pregnancy. Included are honey & sesame biscuits that are rich in iron, calcium, magnesium, phosphorus and fibre; and a herbal infusion that promotes healthy circulation.

46. FUTURE LAB RESEARCH Future trends Organic fast food - OBurger in Los Angeles Los Angeles-based OBurger is out to show consumers that organic, healthy fast food can be just as convenient as more calorie-clogging fast food options. The 100% organic menu is equally dedicated to the organic and sustainable cause. Besides that, the logistics alone at OBurger are an impressive feat in restaurant innovation. They use non-toxic cleaning supplies and packaging that is recyclable, compostable or biodegradable.

47. Question: How can we (im)prove our green credentials?

48. “ I want you to really listen to me, understand me, engage with me”

50. FUTURE LAB A person like yourself or a peer Edelman Trust Barometer 2006 When forming an opinion of a company, how credible would the information be from … People Still Trust Humans % Academic 62 Doctor or similar 62 Person like yourself/peer 61 Financial Analyst 58 NGO Rep 58 Accountant 53 Lawyer 36 Regular employee 33 CEO 29 Union 19 Entertainer 17 PR person 16 Blogger 15

51. Cosmetic concerns

52. ‘ Help us choose’ Start Listening

53. Listen in – and engage in the conversation!

54. Engage in the conversation!

55. Check yourself out regularly

56. And listen for the nasty bits….

57. And listen for the nasty bits….

58. Open your eyes FUTURE LAB

59. FUTURE LAB RESEARCH Future trends Wine tastings via Twitter Bin Ends , which was started up earlier this year, is now gearing up for its second Twitter Taste Live , which will be held this Thursday—the first one was in July. The project aims to give wine enthusiasts around the globe a chance to join the world's top wine personalities online for tastings via the popular social networking tool Twitter.

60. Question: Are we having a conversation?

61. Find your existing communities

62. 1 year: 100.000 registered customers Now: 2,800,000 registered customers Enable your community Quickbooks – the best example

63. Provide them with the right tools

64. FUTURE LAB RESEARCH Trends: Biocitizens “ Biocitizens” are people who join social networks (online or in person) based on shared health interests. They organize around disease management or chronic conditions; wellness practices like exercise, parenting, or aging; or environmental health concerns. These new collectives are generating, collecting, and sharing information, and they are becoming authorities in their own right. Their influence on the marketplace is increasing: As shoppers, we consult these social networks about healthy purchasing decisions ranging from food to deodorants to cleaning products; as consumers, we leverage them to demand a voice—not just a choice—in the products we are offered. Food retailers need to be aware of the networks operating around them, and alert to opportunities that help shoppers connect to each other.

65. FUTURE LAB RESEARCH Trends: Biocitizens

66. FUTURE LAB RESEARCH Trends: Biocitizens

67. FUTURE LAB RESEARCH Trends: Biocitizens

68. FUTURE LAB RESEARCH Trends: Biocitizens

69. A community site for every café?

70. The largest virtual world on the planet in less than a year April 2007: beta launch June 2007: 3,000,000 users July 2008: 15,000,000 users The ultimate community connect

71. Facebook connect – recycle the community

72. Question: Are we f ish ing where the fish are ?

73. “ It’s all about my parea”

74. Empower the Tribal Leaders

75. Let them do your work

76. Create a movement

77. FUTURE LAB BeerBankroll Others are taking the idea of crowdsouring a step further. Including US based brewery called BeerBankroll , who are experimenting with involving the community to fund and manage their company. How do they do it? The first step is the Crowdfunding . Beerbankroll are recruiting members (50,000 to start with), who will contribute $US 50 to get the project up and running. Once BeerBankroll has raised $100,000, the Crowdmanaging kicks in. The BeerBankroll community will then be involved in actively running the business. Members can submit product ideas and vote on management decisions. They can have a say in everything from the brand name, company logo, product design, product mix, marketing plan, advertising and sponsorship. The company profits are then divided by three: One third is paid to members. One third goes back to the company. One third goes to charity. If the experiment works, BeerBankroll will have an army of 50,000 beer drinking brand evangelists to help them spread the word. Source : http://digitaljury.wordpress.com/2008/07/03/crowdsourcing-for-beer/ FUTURELAB COMMENT We see more and more of these crowd-finance projects – from movies to footballclubs, to, indeed, micro-breweries. While this of course does not work for your direct businessmodel, how about applying these principles to social projects? A joint undertaking by all Amstel drinkers of Greece to raise E250.000 for a social business in Botswana, that then will be managed jointly? An endless stream of PR and engagement with the consumers, and unleashing an army of promoters onto the market. Crowd Finance

78. Question: Do I know what ‘tribes’ I can connect to?

79. “ I just love your products – and I would love to become involved. I actually have some good ideas!”

80. Let them improve your products

81. Let them build their own

82. Let them promote them

83. Or even innovate for you

84. Or even innovate for you

85. Finally, let them create your advertising

86. Finally, let them create your advertising

87. Question: Do we involve our fans enough?

88. “ None of my staff I can really trust – what if I get sick? Who runs the company?”

89. What could you do? Create a support mechanism. Re-engage the wisdom of the retired

91. Question: Do we understand the human issues of our channel partners?

92. And finally…the most important question of all!

93. WHY FUTURE LAB

94. FUTURE LAB “ Today's marketing model is broken. We're applying antiquated thinking and work systems to a new world of possibilities." Jim Stengel, Global Marketing Officer P&G

95. Advertising Myths 1. Frequency is not a driver for action 2. There is no golden rule about OTS

98. Media Consumption Europe – 2006 % of total media consumption time Share of total adspend by medium (global) % 2008 forecast (March 2008) What’s wrong with these numbers?

99. Most influential information sources in purchasing electronic goods? (TOP 3) CMO Council’s Retail Fluency Report, 2005 FUTURE LAB Even more wrong…. Share of total adspend by medium (global) % 2008 forecast (March 2008) Newspaper Coupons 25 Internet 21 Product/Company Information 16 Retailer information 14 Other 14 Magazines 4 TV 4 Radio 3 Source % In-store Sales Associate 49 In-store demonstration 36 Word-of-mouth from family & friends 33

100. More wrong numbers

101. How about this for budget efficiency? £300 vs £40MM

102. Spend my budget on WHAT!?

104. WHY?

105. And most importantly – focus on word of mouth – because Humans trust humans

107. The Power of Recommendation Word-of-mouth is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising Marketing Science Institute, 2006 1967 1983 2001 2007 1955 This is not exactly news....

108. Extremely unlikely Extremely likely NPS™= (Promoters-Detractors)/Total DETRACTORS PROMOTERS PASSIVES Net Promoter Score ™ is a registered trademark of Bain & Company, Satmetrix and Fred Reichheld HOW LIKELY ARE YOU TO RECOMMEND? The Power of Recommendation 0 1 2 3 4 5 6 7 8 9 10

110. This works for almost every industry The Power of Recommendation

112. No, it’s not...

114. Who will be the First Penguin? Where ARE the orcas?

115. Download an extended version of this presentation and a digital handout at: Futurelab.net/FB Read more on our blog at: Blog.futurelab.net

116. The Element of Surprise

117. If you want to know more about how to find true insights in the emotional needs of your target audience, and how to turn these into winning propositions and profit opportunities, give us a buzz Helena Chari [email_address] +30 210 72 60 600 www.tns-global.com TNS ICAP Futurelab Greece FUTURE LAB Futurelab Milton Papadakis [email_address] +30 210 72 60 600 www.futurelab.net Stefan Kolle [email_address] +32 473 888 996 www.futurelab.net About Futurelab