Coca-Cola and the happiness economy

Published by Ceren Coskun - Istanbul on March 12, 2010 in Asia Pacific. 0 Comments Tags: , , .

Over the past 50 years, living standards, life expectancy and material wealth have increased—the only thing that hasn’t is happiness. Numbers from the World Database of Happiness confirm this. During a recession, happiness naturally performs even worse, with consumers experiencing status anxiety more deeply: “Why do others have more than me?”

That’s one of the reasons the happiness economy becomes more important. As a brand that has been leveraging the concept of happiness for years, Coca-Cola has turned out a slew of ads during the downturn that put a creative and inspiring spin on the idea. In one of the latest spots, a university’s Coke machine becomes a “happiness machine,” dispensing everything from sunflowers to pizzas along with a bounty of Cokes.

Nokia refines naming system to help consumers overwhelmed by choice

Published by Patty Orsini - New Jersey on March 11, 2010 in North America. 0 Comments Tags: , , .

As we discussed recently, too many choices can paralyze consumers, creating anxiety and deterring people from making any purchase at all. So Nokia’s new naming convention for its phones is a step in the right direction for a company with a multitude of products.

The phones are grouped into four series by function: N (most advanced), X (social networking), E (business) and C (basic functions). Within each series, phones are assigned numbers from 1 to 9 that signify the range of features available and, hence, cost. So buyers know from the start whether they’re looking at a highly sophisticated device (rated 9) or a stripped-down one (rated 1).

Nokia’s solution—paring down information to its essentials—allows consumers to more easily weigh price range, features and functionality and more quickly determine what they want. This takes some of the anxiety about making the right choice out of the equation, especially at a time when diligent consumers must do a great deal of work to wade through the fine print.

Nokia

Photo Credit: http://www.nokiausa.com/find-products/nseries

Seeking heroes, Japanese look to history

Published by Jordan Price - Tokyo on March 10, 2010 in Asia Pacific. 0 Comments Tags: , , .

history-girls-4Among the Top 10 most popular words/phrases for 2009 in Japan, a list compiled by publisher Jiyu Kokuminsha, was Reki-jo—literally, “history girls.” Young Japanese women are suddenly taken with Japanese history, in particular warlords and famous samurai of the Warring States period (the mid-15th to early 17th centuries). And it doesn’t seem to be just a passing fad.

The history-focused Jidai Shobo bookstore in Tokyo, for example, had predominantly male customers when it opened in 2006, but a news report says that more than half are now women, and 90 percent are in their 20s and 30s. The history magazine Rekishi Kaido has seen its circulation jump to more than 120,000 from 70,000 five years ago, with female readership rising from 15 percent to 40 percent.

This trend seems to be driven in part by young women searching for models of masculinity http://item.rakuten.co.jp/keitai/408-638880/in reaction to the startling rise in asexual, unambitious “herbivore boys” (discussed in a previous post). But deeper than that, it also seems connected to a growing undercurrent of sentiment that the nation has lost its way. The recession has driven faith in government and business leadership to an all-time low and even given rise to more general questioning of various aspects of modern life, pushing many to look for better models from the past. The historical figures being idolized represent lives based on strong principles and convictions, and a greater vision—exactly what’s seen to be missing in political, social and business leadership and modern life.

What this means for brands in Japan is that there’s a void to be filled: a hunger for leadership, passion and vision. More than ever, brands must better define their core principles and values, and fully live by them, so that brands themselves can become respected role models.

Photo Credits: http://item.rakuten.co.jp/, http://books.rakuten.co.jp/rb

RIP BOGOF, hello BOGOFL

Published by Ben Hopkins - London on March 9, 2010 in Europe. 2 Comments Tags: , , , .

tesco-bogofValue deals and incentives proliferated during the downturn as consumers with shrinking budgets increasingly focused on finding deals. This includes “Buy one, get one free,” or BOGOF, offers. But encouraging consumers to get more than they need creates a huge amount of food waste, something the Department for Environment, Food and Rural Affairs in the U.K. is trying to fight. The Times Online reported last year on a government finding that British “households throw away 4.1 million tons of food each year that could have been eaten if it had been managed better.” The cost to the average household is £420 a year.

Tesco has addressed the issue by introducing “Buy one, get one free later” for perishable goods that may spoil before being consumed. This is an ingenious solution that still helps consumers who are cost-conscious and boosts Tesco’s sustainability credentials. Finally, it ties the consumer into repeat shopping in order to redeem offers, increasing brand dependency and footfall.

Photo Credit: http://www.tesco.com/

Anxiety rises in India after Pune blast

Published by Aparna Jain - Kolkata on March 8, 2010 in Asia Pacific. 0 Comments Tags: , , , .

In a post-recession environment, it’s not just the usual car, home and holiday that is worrying the upwardly mobile, urban Indian. It’s also the latest buzz word: terrorism. After the mid-February blast in Pune—a comparatively smaller city with a large student population—terrorism is suddenly back and very close to home. The bombing was a reminder that terrorism could happen on the flight my husband takes, the hotel I stay on a business trip and the bakery where my daughter hangs out. Violence, fear and terror have caught up with a social stratum that until now believed it was untouchable, and the general feeling is that no place is too safe—yet one cannot stop living life.

Reflecting this new unease are the status lines of many Facebookers after the blast:

“I can’t believe it, really … considering we used to travel down that road pretty much all the time.”

“I can’t believe anything like this could happen … not in Pune … I guess I was wrong …”

At a time when consumers are coping with the idea that they have little control over their safety, do brands have a role to play? It seems that brands can help by doing what they do best—helping to buoy spirits by offering optimism and empowering consumers to feel they are back in charge of their destiny. Financial products and health care brands especially have an opportunity to create an environment of security, concern and care that will resonate in today’s anxious times.

metal detector hotels india Pictures, Images and Photos

Le Meridien, India - Metal detectors outside major hotels, restaurants and malls are now common.

Photo Credit:emoticonphoto

Spanish reality show portrays a generation stranded by recession

Published by Ramon Jimenez - Madrid on March 5, 2010 in Europe. 0 Comments Tags: , , , .

In Spain, unemployment—currently at 18.8 percent—is the main public concern, and we aren’t seeing the light at the end of the tunnel yet. This situation has hit one generation more than any other: youngsters who are neither studying nor able to find work. A recent study showed that 15 percent of 16- to 24-year-olds aren’t active. University degrees are no longer a guarantee of a job, and Spanish youth are apathetic and unmotivated. Their parents lack strong arguments to push them forward.

Naturally, a TV channel saw this as an opportunity for a reality show: Eight of these ninis (which stands for “no job, no studies”) live in a house where they’re learning everything from social skills to math, home economics and handy jobs. The results are not too promising so far. The kids don’t seem to be learning much from the experience, and the content aired so far is surely not making parents any less anxious than they already are.

Recall phenomenon hits India, investors and consumers (over)anxious

Published by Pragya Singh and Vishal Sharma on March 4, 2010 in Asia Pacific. 0 Comments Tags: , .

a-star1Leading Indian automaker Maruti Suzuki is the latest entrant in the “Recall Club,” joining distinguished names that include Toyota, Honda, Peugeot Citroen and, more recently, Hyundai. All these brands have recently recalled one or more models in various markets around the world. In India, Maruti Suzuki recalled 100,000 A-Star models, owing to a faulty fuel tank part. Its stock tumbled to a six-month low, and A-star owners are anxiously linking regular car issues like poor mileage and pickup to a possibility of fault with their cars, even if theirs isn’t part of the recall.

While recalls have generally been regarded as a sign of a responsible automaker, this time it’s a little different. Both investors and consumers seem to be overanxious, likely because caution and nervousness (even about short-term losses) is a lingering effect of the recession and also because of the frequency with which some big and highly trusted brands are joining the recall phenomenon.

Given the fragile state of consumer and investor confidence in today’s post-recession world order, brands will need to do worst-case-scenario planning even for actions that look logical and are in the consumer’s interest, and really step up communication efforts to make events like recalls more transparent so as to avoid stirring anxiety and speculation.

Photo Credit: http://www.marutisuzukiastar.com/

The recession handbook: Brand lessons from the great recession

Published by The Editors of AnxietyIndex.com on March 2, 2010 in North America. 1 Comment Tags: , , , .

After a year spent surveying brand and consumer response to the recession through our AnxietyIndex.com, we have released our top 10 brand lessons from the Great Recession.

q4-ai-cover“The Recession Handbook: Brand Lessons from the Great Recession” emerged out of the quantitative and qualitative research that we conducted during the downturn. Over the past year, we have tracked nearly 400 brand responses to consumers’ recession-related anxiety in 27 markets. At the same time, we have quantitatively measured the levels and drivers of consumer anxiety in 13 markets.

Our hope is that this will serve as a primer for future downturns, beyond simply making the case for maintaining or increasing brand spend during a recession. We believe our recommendations will hold up in recessions to come, helping brands better address the challenges that come with economic upheaval.

Our 10 brand lessons from the Great Recession:

1. Find your value voice.
2. Remove the risk from price.
3. Don’t shy away from tackling anxiety head on.
4. Leverage public sentiment.
5. Give consumers more control.
6. Provide a real service for consumers.
7. Inspire rather than empathize with consumers.
8. Return to the core value of hope.
9. Re-imagine how your products are sold.
10. Use the recession to achieve a higher goal.

You can download the report from the Trends and Research section or by clicking here.

In times of stress, perhaps less equals more

Published by Rachel Birnbaum - New York on March 2, 2010 in North America. 0 Comments Tags: , , .

choices1Walmart, Target, CVS and Walgreens are among the major retail chains paring brand-name products from their shelves in favor of private-label brands. This means fewer choices for consumers. Although conventional wisdom has it that people prefer more options, and a recent analysis in the Journal of Consumer Research seems to back this up, a piece in The New York Times challenges this theory. Reporter Alina Tugend questions whether choice overload can create anxiety and “paralyze people or push them into decisions that are against their own interest.”

Tugend describes a study by Columbia University business professor Sheena Iyengar. When a booth in a gourmet supermarket offering samples of jam included six varieties, 30 percent of shoppers who stopped by bought a jam; when the booth offered a much wider 24-flavor selection, only 3 percent actually purchased something. (But while 60 percent of customers stopped by when more flavors were on offer, the six-flavor selection attracted only 40 percent.)

Photo Credit: D’Arcy Norman

Will climate change anxiety lead to apathy?

Published by Mollie Hill - Sydney on March 1, 2010 in Asia Pacific. 0 Comments Tags: , .

newspaper-image5Climate change is a major source of anxiety for Australians, with many believing it will get worse in the near term, as detailed in this AnxietyIndex report. Anxiety arises when a danger cannot be identified or clearly perceived, and the barrage of opinions and conflicting information surrounding the climate change debate is a prime example—witness this recent front page of The Australian.

The article reports the alarming predictions for Australia’s iconic beaches made by Climate Change Minister Penny Wong. But it also reports that beach locals aren’t so sure—they haven’t noticed coastline changes—and that an environmental scientist feels Senator Wong’s comments are an attempt to panic the public.

Regardless of what is fact and what is farce, in a world where climate change is headlined with “threat,” “danger” and “risk”—as well as “false,” “conspiracy” and “hoodwinked”—I’d be anxious if we weren’t reported to be anxious! Which is why the biggest risk is that anxiety escalates to the point where people decide “It is all too hard” and so become apathetic. As one beach local told The Australian: “It’s like the stock market—no one really knows.”

For brands that want to engage consumers with a climate change message, a positive, empowering approach will go further than fear-based or shock tactics.

Photo Credit: The Australian