9 Key Trends - webinar - Feb 15 2018.pptx

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1. Unlocking the Future with 9 key trends GfK Consumer Life | Roper Reports ® Client Briefing Thursday, February 15, 2018 Audio Conference Information:   Dial-In Number(s): U.S. & Canada Toll-Free: 800.781.2123 Access Code: 5462184 Click here for a list of global toll-free numbers: https://conf.cfer.com/?sp_id=599&comp_id=401758&an=8007812123&ac=5462184&startview=GOS&login=true

2. TrendKey provides a toolkit of trend narratives, consumer expressions, keywords, data-driven insights and market manifestations to fuel strategic thinking for future market planning Each of the 9 trends in the latest iteration of TrendKey has been identified through analysis of GfK Consumer Life global data , as well as observations of the global marketplace Recognizing trends is just the beginning. After that come all kinds of questions: How big is the trend? Which consumers is it affecting most? What effects does it have on the kind of products or services I should launch? It is these questions that TrendKey is designed to address Introduction

3. From 12 trends to 9 From this… …to this

4. “I want things my way , including the things I buy because they reflect who I am .” All about me Legacy trends What : This trend incorporates the desire for indulgence captured in the old Satisfaction trend and reflecting individuality through appearance/purchases as seen in Identity, plus appreciating tailor-made products Why : Technology is driving the ability for consumers to increasingly fulfill their needs on their own terms, but this can also manifest itself in maintaining a deep emotional connection with customers So what : A “one-size-fits-all” approach will no longer cut it with consumers

5. Keywords All about me | The narrative “ Yes, I like to pamper myself. It’s not that I’m so vain, though. I’m not obsessed with my appearance, and I’m not saying that everything revolves around me. It’s more that I like to take care of myself, and I expect the things I do and buy to help me accomplish that. I can even be a loyal customer if I’m treated right.”

6. Temperature regulation for both sides of the bed https ://www.theverge.com/circuitbreaker/2017/6/20/15843106/smartduvet-breeze-temperature-control-self-making-bed-kickstarter-indiegogo All about me | Marketplace manifestation Here’s a solution for that age-old argument about whether to have the windows open or closed, blankets on or off the bed. SmartDuvet , the company that first launched a self-making bed on Kickstarter, is now offering a second edition that lets two people adjust to their preferred temperatures on their side of the bed.

7. “I prefer to do things the easy way.” Frictionless living What : The concepts captured in the two legacy trends have always been closely related, and now they are becoming increasingly intertwined, especially when related to technology Why : Technology can help streamline life, but it can also add complexity and stress So what : It is no longer sufficient for a product or service offering to be available 24/7; it must also be intuitive and in no way disrupt the flow of a life that is already busy and complex enough Legacy trends

8. Keywords Frictionless living | Insight & k eywords “Easy does it is my mantra. Life is complicated enough; we don’t have to make it harder for ourselves. I am looking for efficient and effortless ways to get things done, not for challenges to overcome. If you keep your offer simple and straightforward, I might pay attention.”

9. Experimenting with ways to streamline the customer experience https://www.boston.com/news/food/2018/01/16/dunkin-donuts-quincy-concept-store Frictionless living | Marketing manifestation “ We want to be a place — and we call it a frictionless experience — where you can order however you want, you can pay however you want, and you can get your food however you want,” says Dave Hoffman, president of Dunkin’ Donuts in the US and Canada. For example, a newly opened concept store has two drive-through lanes: one for traditional drive-through orders and one for mobile pre-orders placed using an app.

10. “The world is a scary place, and I need reassurance .” Seeking safety What : The need for safety and security continues to be ubiquitous and universal, as befitting a concept that sits at the foundation of the Maslow hierarchy of needs Why : If anything, the sources of potential threat and worry are growing, encompassing not just basic food safety (largely but not exclusively found in Developing markets) but also terrorism, cyber-crime and more So what : Consumers welcome reassurance that what they are buying offers security, or, at the very least, isn’t dangerous Legacy trends

11. Keywords Seeking safety | Insight & k eywords “The world is a dangerous place on many levels, and I am stressed for many reasons. This doesn’t mean I am hiding out, though. I get out and about as much as the next person, and I have plenty of interests in life and plans for the future. Help me find ways to conquer the fear so I can pursue the Good Life I want.”

12. Sterilizing surfaces we constantly touch https://www.theverge.com/2017/7/17/15981010/lg-escaltor-sterilizer-uv-led-clearwin Seeking safety | Marketplace manifestation The LG Handrail Sanitizer is a device that attaches to escalator handrails for continuous disinfection. It uses “ultraviolet germicidal irradiation” to prevent the spread of germs and diseases. It has already been approved for use in South Korea and the European Union.

13. “Being truly well means taking care of body, mind and soul.” Sense of wellbeing What : This is the only trend to have been carried over unchanged from the previous framework. This reflects the importance of wellbeing as a fundamental facet of people’s lives Why : Consumers everywhere struggle to meet their health and wellbeing goals, both physical and emotional, in the face of busy, stressed and increasingly sedentary lives, with the temptation of unhealthy food never far away So what : People need products and services to help, but they also need support and encouragement Legacy trend

14. Keywords Sense of w ellbeing | Insight & keywords “I take a holistic approach to living well. This involves being proactive, seeking balance, and being open to different ways of doing things. Sometimes this means being attentive to my appearance (looking good = feeling good); sometimes it means pursuing physical health; and sometimes it means nurturing the soul.”

15. Startup launches gym pods across China www.misspao.com Sense of w ellbeing | Marketplace manifestation There’s now another way to keep fit in China. Misspao has launched the ‘pod gym’, a mini-gym just large enough for one. The initial launch has been such a success that the company plans to install 1,000 of the pods across the streets of China by the end of the year. Although the gyms are very compact, there’s enough space for a treadmill, screen (for music, TV or movies), an air purifier and a range of portable fitness accessories.

16. “I want to be an informed consumer and make an effort to stay up to date .” In the k now What : We previously observed that thanks to social media and product reviews, We’re All Influencers Now. That is to say, we can all broadcast an opinion, but consumers still need to separate trustworthy voices from the crowd Why : Along with the greater freedom and wealth of choice consumers have in many product and service categories comes a sometimes bewildering range of options, information and opinions So what : There is an increasing savviness and discernment displayed by consumers when it comes to seeking out the best value and quality Legacy trends

17. Keywords “I am willing to put the time and effort in to make solid and informed purchase decisions and am not looking for the easy way out. I value others’ opinions and am willing to share mine, too. I am not blindly brand-loyal, but I won’t make changes at the drop of a hat, either – these things take time.” In the know | Insight & keywords

18. Taking the guesswork out of wine www.myoeno.com In the know | Marketplace manifestation Called MyOeno , this pocket scanner analyzes wines and sends all the information to the user’s smartphone. The scanner, which is designed to be dipped into a glass of wine, uses visible and near-visible spectrum analysis to examine the wine. The device can identify characteristics such as strength, tannins, acidity, and aging. Users can also take a picture of a label and ask MyOeno to check whether the wine is likely to match their tastes.

19. “Being connected to other people is paramount , however it happens.” Belonging What : Of all 9 trends in the new framework, belonging is the “newest” concept, with no direct equivalent in the old list of 12 Why : While in some ways society is becoming more individualistic and “All About Me”, there is a corresponding need (or counter trend) to feel a belonging to a group with shared interests or experiences So what : These groups or communities no longer need to be geographic, but can be defined by shared interests or values; something that is highlighted by socio-political divisions in societies

20. Keywords “I value relationships with other people and rely on them. I also feel a sense of social responsibility. B ut I need to be connected on my own terms; sometimes this means unplugging from tech. I have a materialistic side, too, and am not averse to having a ‘relationship’ with brands.” Belonging | Insight & keywords

21. Sports bring people together https://mysuperbowlad.tostitos.com/ Belonging | Marketplace manifestation Major sports events may be one of the last bastions of real-time viewing, an experience that people want to share. T he 2018 line-up includes a winter Olympics and summer World Cup. These events provide all kinds of marketing opportunities. In the US, the annual Super Bowl game is often anticipated as much for its advertising as for the game itself. Tostito’s “Super Bowl ads for all” promotion allowed people to join the fun of the 2018 game by creating a personalized “commercial” that could be shared on social media or via email as an invitation to Super Bowl parties they were hosting.

22. “I expect the things I buy to serve my needs , and I have high standards .” Discerning consumption What : That consumers are becoming ever-more demanding is not new. It was an integral part of our old Satisfaction trend Why : What is new is that a range of expectations are converging, meaning it’s important not only to be above reproach on the basics, but also to offer an appealing all-round bundle of benefits at a great price and be attuned to the beliefs, values and ideals of consumers So what : Even a small and insignificant regular purchase can suddenly have its ethical standards called into question, and shared instantly via social media Legacy trends

23. Keywords “I am something of a fussy shopper . As long as you serve my needs and appeal to my beliefs, I will be loyal, but if you disappoint, I will be gone in a heartbeat . I am also cautious and would rather see other people try new things before I do, so don’t look to me to be your guinea pig.” Discerning consumption | Insight & keywords

24. Leveraging the power of heritage and quality https://darntough.com/ Discerning consumption | Marketplace manifestation Darn Tough socks offer quality, heritage, and provenance for outdoor enthusiasts. “ For almost 40 years our family has been knitting socks in Northfield, Vermont. We know how to make socks. It’s what we do. We’re dedicated to creating the world’s best socks, and prove it by standing behind them.”

25. “We all need to do more for the planet .” Eco-conscience What : It’s now a given that brands and companies must be environmentally responsible . There are also many who experience feelings of guilt when doing something that’s not environmentally friendly, and who may adjust their preferences to assuage these feelings Why : What this trend now captures, however, are those dedicated consumers who go out of their way to make sacrifices for the good of the planet, and who we see to be at the vanguard of the next phase of environmental consciousness So what: There are more ways than ever to please, but also to irk, eco-conscious consumers Legacy trend

26. Keywords “I am really worried about the health of our planet. I do what I can, but it never seems like enough. It takes everyone’s combined efforts, from governments to companies to individuals. Let’s all chip in and help each other do the right thing to keep our world healthy.” Eco-conscience | Insight & keywords

27. Building green into everything a company does https://www.apple.com/environment/ Eco-conscience | Marketplace manifestation Apple has a host of green initiatives, some of which are internal to corporate operations and others that support consumers’ personal environmental efforts. For example, 100% of the electricity powering data centers is generated using renewable sources and virtually all paper packaging is recycled or sustainably sourced. The Apple Renew program encourages recycling of old or used Apple devices.

28. “Life is an amazing experience, and I want to make the most of it.” Experience above a ll What : It is almost a truism today to say that consumers are increasingly focused on the experiential, and this can manifest itself in numerous ways Why : Experience can now mean a rejection of the material in favor of experiences, or it can mean a desire for sensory stimulation in an increasingly virtual world. Or it can just reflect a desire for novelty and fun in even everyday items So what : It’s important to think about all the ways consumers can experience your product or service Legacy t rend

29. Keywords “I crave experiences of all kinds that appeal to all of my senses . I’m interested in many different things and have a big-picture view of how life should be lived, especially when it comes to doing rather than having. I’m adventurous, too, and always on the lookout for something new and fun.” Experience above all | Insight & keywords

30. When art and nature combine https://www.ayersrockresort.com.au/events/detail/field-of-light-uluru Experience above all | Marketplace manifestation The enormous Field of Light installation by Bruce Munro at Australia’s famous landmark Uluru (aka Ayers Rock) opened in 2016 and has been extended through 2020. Tourists can experience the 50,000 solar-powered glass-sphere-topped stems in a host of ways, from camel-back to helicopter.

31. Workshopping these trends is a great way to stress test your strategic innovation, NPD and marketing strategies to ensure they are attuned to key consumer needs. Making the most of TrendKey … Fueling your innovation pipeline with concepts that address key consumer trends helps ensure that you are providing “bundles of benefits” that address their needs. Creating a bespoke trend framework for your business, or updating one you have already, can really help to give your future strategy a sense of focus.

32. If you would like more information on this webinar or have questions about where your consumer is heading and what that means for your business, please contact your GfK Consumer Life representative or email us at [email protected] PowerPoint and MP4 versions of this webinar are available on the Consumer Life client portal, https:// gfkconnect.gfk.com