Consumer Trends

Subject: Seminar In Marketing

Syed Muhammad Zubair Azam
0921179
10/17/2009

A collection of macro trends that are shaping the life styles of youth over the couple of years
 Table of Contents
Topic Page

Globalization 1

Localization 1

Digitization 2

Fragmentation 2

1. Forever young/ gen gap blur/ peter pan 2

2. Authorship / p2p / six degrees / passion Groups 3

3. wellness / simplicity / slowdown 4

4. Heritage / Retro / roots / back to go forwards 5

5. mobility / field trip travel/ experiential journeys 5

6. Content Management / data storage / documentation / librarian 6

7. Culture blending / fusion / Expatriatism 6

8. Genuineness / reality / true colors / transparent 7

9. Crisis management / immortality / fatalism 7

10. Self-enhancement / learning is fun / hobby classes 8

11. From bigness to smallness / intimate experiences / Comfort 9

12. Mix n match / cut n paste / customization 9

13. Luxury twisted / bling goes suave / what you do / fashion understand 10

14. Indie spirit / underdog / raw energy / realness 11

 Consumer Trends
This Thought provoking assignment and its report focuses on the key drivers of changes in
consumer life styles, their spending patterns and the ways companies are shaping up their
decisions by implementing customer-driven strategies. We will start our discussion by
exploring different key drivers/factors which are accelerating these changes in consumer
Behavior and are playing dynamic role in bringing these trends.

Globalization

“World is getting Global”. “World is a global village”, we, all, are listening and using such sort of
phrases and quotations in our daily life. But what globalization is all about? What is the
difference between globalization and Internationalization?

Globalization is frequently confused with internationalization. But in fact both are very distinct
concepts. Inter-nationalization refers to something between the different nations or economies
of this world. It refers to the increasing importance of international trade, international
relations, treaties, alliances, etc. but the main unit (Nation) remains the same and distinct.
While on the other hand, Globalization refers to the economic integration of different
economies of the world into one global economy. It is being characterized mainly by free trade
and free capital mobility, but also by easy or uncontrolled migration. It is the effective erasure
of national boundaries for economic purposes.

Globalization is being accelerated by a lot of forces like increasing awareness among people
because of fastest media vehicles and thus reaches, Internet networking and increasing focus
on cyber world. Now every thing and everyone is being highlighted, even small events like a
small sports event in University of Mexico. This has made competition among companies more
intense which is resulting in more educated consumers. And as consumers are getting more
knowledgeable, they are analyzing scenarios and thus trying to differentiate themselves in
different ways. Consumers are observing lifestyles in different countries and thus some are
trying to change them, while others are the followers and so, they are bringing different
consumer lifestyle trends on a very broader level.

Localization

Localization refers to the concept of How nations are becoming more conscious and confident
about their individual identities. And thus companies after analyzing this approach are coming
up with solutions which are more Local customer’s target oriented. The best example is Google.
Google is customizing its search engine according to each co untries local languages. And it is
available in every country’s national language. Another approach can be exemplified bt
McDonald’s. McDonald is offering same culture, environment and setting in every country but
they are offering either customized products or changed packages depending on their local
customer needs and wants. HSBC has opted a slogan “Your Local Bank” which is another very
good example of Glocal Strategy.

Digitization

Six degrees is a concept that every single individual in a network is attached to at least 6 other
persons and each person is attached to 6 more individuals and so on. Digitization refers to the
impacts of increasing technology that has enabled customers to build very strong networks in
market space. Technological tools like broadband, Bluetooth, Wi-Fi, peer-to-peer technology,
online broadcasting and online data sharing, live streaming, live cams and home multimedia
theaters have enabled people to get connected more frequently and with ease.

So people are now more confident about technology and thus are making use of it. A lot of
cyber communities have been developed where people are discussing their issues, are sharing
their content and are even finalizing business deals.

Fragmentation

Now people are more confident about their culture and are eager to explore the other cultures
as well. They are now making a fusion of different cultural values. They are making musical
blends like created by COKE Studio in Pakistan, bringing HIP HOP, Break dance, Locking popping
culture in India and Pakistan. Same is true with other industries like Textile industry, fashion
industry and even education industry where sociology and anthropology is being taught with
more and growing interest on socialization and networking.

Companies are also opting the strategies to cope with these changes as well as to foster this
change process. They are now bringing a blend of fashions to different societies.

14 Consumer Trends
A concept is Stronger than a Fact (Charlotte P. Gillman)

These trends were once considered concepts that these could happen in the coming eras but
they are now Realities like a bright Sunny Day. If the concept is not there, the fact can never be
explored. If the problem is not determined, Learning will stop. So let’s discuss each with a focus
on Pakistan’s market.

1. Forever young/ gen gap blur/ peter pan

This trend is all about reducing generation gap between parents and children, between elders
and youngsters. Peter Pan is an American animated feature developed by Walt Disney. The
theme of this animated feature was “The boy who wouldn’t grow up”. This trend focuses on
being young forever, or acting like a child and thus enjoying the adventures of youth. This trend
is being characterized by a wave of video games for all ages, like Mafia Wars, GTA vice city,
Commandos, IGI, need for speed, and Farmville etc. Casual trendy dresses, forever young and
amusing cartoon shows like tom & Jerry are also closing this generation gap. It focuses that
parents should now act like friends with their children.

COCA COLA advertisements featuring a lot of people of different ages saying “BBrrrrrrrr” , while
this ad is being played with both in family background, among friends, in a lot of different
people belonging to rural and urban areas. Meezan oil advertisement where a female girl is
throwing plates on the dining table while grandpa is catching them and singing with children.
Ads of DJouse in the start, focused on reducing this gender gap while promoting the image of
forever young life. A brand new advertisement of NIDO (MA MA!!) is showing mother-child
relationship and visualizing mother as a friend and thus problem solver. Surf Excel
advertisement featuring a child helping other elders while a mother playing football, a father
helping the child in cycling are all focusing on reducing this gender gap by showing a friends-like
behavior.

2. Authorship / p2p / six degrees / passion Groups

Six degrees is a phenomenon of getting connected with 6 people through one virtual friend
while being connected with 6 others through another friend. And Thus the network continues
to expand. The new wave of building virtual societies, communities with peer-2-peer free file
sharing has opened up a very distinctive, interesting, yet controllable. Online diaries are there,
online clubs are there to get socialize with the individuals of same interests and passions.

LinkedIn, Tagged, Facebook, and orkut are very famous communities to get connected with
others to become more socialized. Companies like telenor, Warid telecom and Indigo are
facilitating their customers by offering free online accounts as well as offering connectivity with
these communities through sms subscriptions. Mobilink is helping graduated to find jobs via
sms alerts. They have developed an alliance with www.rozee.pk in order to get latest updates
regarding available employment opportunities.

Companies are now earning by developing networks of online members. Gold Mine
International is a very famous company which is making money by inviting new members while
offering them to make money by inviting further groups of friends and in this way, they have
developed a very distinct sort of network. It is one of the best examples of making money
through Six Degrees of separation.
 Glow, a new brand by Warid Telecom, is registering their subscribers to http://glow.pk and
messaging them their username and passwords. Subscribers don’t have to do anything to get
started.

3. wellness / simplicity / slowdown

The shift to wellness has been triggered by increasing concerns about health. Consumers are,
now, more conscious about their health and their life style. They are demanding more
simplicity in their lives. The pace of growth should get slowdown. They are demanding Balance
of Life.

Nestle ads are focusing on this simplicity trend of life. For example, in their advertisements , a
small girl is handing a bottle of Nestle Water to her pregnant mother while they are standing at
a beach. The same is true with Nescafe’. I watched a Nestle Every Day milk advertisement that
got pasted in my Memory and I can still recall every component of this ad. It was perfectly
representing the originality of emotions, and simplicity of life while targeting almost every
segment of their market.
Aquafina ads are more or less targeting consumers with the same approach. Other companies
like olpers milk has been showing a very detailed advertisement in the month of Ramadan. It
showed culture of every province and major cities of the country and very simple people using
their product in Sehri and Aftari. This ad was such a simple and attractive one that children
loved, youngsters got fascinated and elders were proud. OMORE’ advertisements are showing
very connected families which are getting happy because of very simple and small events. They
are sharing their happiness with others in their family as well as their neighbors.

4. Heritage / Retro / roots / back to go forwards

An interest in the history, cultural values, local lifestyles and prestigious heritage has always
triggered different people to get inspired, and to bring something new derived from the
existing. For example, a blend of POP, Folk and classic is being used in movies, theatres, drama
serials etc. Coke Studio was such a fantastic effort to relocate the heritage and get a fusion of
different musical tastes. This trend was just Awesome, a real touching experience. And the
music it has produced…. Fantastic, having magical effects.

Companies like Bonanza and BATA have focused on customers growing interests and curiosity
in their cultures as well as other cultures. Bonanza is showing ads with models wearing
different cultural dresses and travelling different rural areas of Pakistan. And in the they are
gathered at a desert to represent this coming fusion/mix of cultures. Another perception can be
derived that BONANZA is not very costly and is for every part of Pakistan. BATA’s new brand
weinbrenner is also showing a Mexican sort of casual trend shoes for the consumers evoking a
feeling of adventure.

5. mobility / field trip travel/ experiential journeys

As consumers are getting aware of other cultural norms, they are no longer restricted to
waiting for holidays at the end of year. They are now mobile, like outgoing from one city to
another, from one country to another. But they are still connected with their businesses, with
their offices via technological tools. Companies are also offering solutions to their needs. Every
industry is trying to come up with solutions. Travelling companies are trying to offer better
quality at cheaper prices. Hotels are making their services more and more better. Techno-
related companies are providing solutions like handset with location finders, Maps and place
locators.

Nokia, Blackberry, iMate, Samsung and Apple are offering PDAs and handsets with facilities
like maps, place finder, location locators etc which are capturing the needs of consumers.
Channels like National Geographic and Discovery have been and are still producing
documentaries about different cultures and country’s biographies to get people more
interested in exploring and adventuring. These all are basically heading us towards a global
culture.

Tapal has introduced Tapal Instea, an instant tea, for on-the-go people, offering 3 in 1 feature.
It is a perfect solution for on the go people but ads is pointing out Politicians and cricketers.

6. Content Management / data storage / documentation / librarian

The past years have presented great flexibility in the usage and storage of data. Now as every
thing is being digitalized, companies are relying more on technological tools. E-mailing loops are
now generated for getting more efficiency. Consumers have every thing in their memory cards,
or small handy Storage devices which are Bluetooth enabled. And they can read, edit and
update whatever content they have. There is no need to carry a briefcase now. Every thing is
formal, documented but in digital form.

Universitie are offering digital libraries to download books and you can read them in your
mobile phones or PDAs. Now Libraries have online networking and thus you can get every book
or whatever you want from that network. In simple words, a new trend of individual Libraries
has evolved.

Now companies are coming up with innovative features. Nokia N-series, Nokia E-series,
Blackberry, Samsung are offering products directly matching consumer’s needs. I watched an
amazing Rolling Laptop 3D animation a few days before. The link is as follows:

Link: http://www.facebook.com/video/video.php?v=103176206364292&ref=nf

Now companies are distinguishing their products by incorporating more competitive features.

7. Culture blending / fusion / Expatriatism

Increase in globalization has reduced a lot of barriers , while human migration in quest of a
better life style is increasing day by day. This has resulted in the form of a collaboration culture
where individuals from different nations and cultural backgrounds are playing an important
role. American society is now a blend of different cultures because of Hispanic Americans,
Indians, Africans, Chinese and a lot of other prominent nations.

Now a lot of restaurants are offering Chinese, Italian, fast food and Village traditional dishes.
DAWN News has recently started its working in USA with the slogan of “Understand the
Difference”. Companies are establishing their factories in developing countries to attain
economies of scale. Thus they are exporting expertise from their own country to other
developing countries just like china with Pakistan. This has accelerated the pace of cultural
fusion and expatriatism.

Majority of Ufone ads are endorsing the concept of people who want to get connected to their
relatives in other countries. Coke is showing advertisements which are actually Global ones but
with local concerns. PTCL’S EVO AD is also a pretty colorful and multi-cultural presentation.
Gillette’s Mach 3 Turbo is doing celebrity endorsement with Roger Federer, Tiger Woods,
Shoaib Malik, Rahul Dravid and this ad is a perfect example of global strategy with local
preferences.

8. Genuineness / reality / true colors / transparent

As consumers are getting more and more educated, they no longer get inspired or motivated by
celebrities. They are focusing more on attributes and benefits that products are providing. They
want every thing to be transparent and demand reality based advertisement without any
deceptive tactics. In other words, they are demanding the companies to inform them about the
ingredients of the products, their back procedures. This quest for realness has also impacted
the design world. Now, Marketers are more focused on components of Packaging, content to
be emphasized in Positioning and advertisements.

Head & Shoulders has been positioning their product with this approach. Their ad with Talat
Hussain and egham research centre has been a quite success. In the end, for reality and
transparency in their product features is highlighted by Certification. SAFI, produced by
Hamdard Laboratories, is clearly motivating people to use and check their product, their slogan
is “Practicle kar k dekho”. Telenor has targeted rural areas from the start of their career in
Pakistan. And thus they have been developing advertisement for the rural areas. Gillette has
advertised their Mach turbo with Tigerwoods. Tigerwoods training sessions are being
highlighted. Mitchells, shezan, Knorr, Dawn are all working with the same approach.

9. Crisis management / immortality / fatalism

Fatalism is the view that we are powerless to do anything other than what we actually do. So as
natural disasters can not be controlled, but human beings can have some precautionary
measures to be protected. Another approach or thinking has leaded the world towards more
adventures and thrillers. Companies like Toyota, Honda and other automobile companies as
well as Motor Bike companies are considering consumers precautionary as well as thriller
nature. They are displaying advertisements that show s ave journey with better road grip.
Cement companies are developing advertisements that focus on stronger homes.

2nd type of approach is being followed by sprite 3G, DEW etc. and is targeting consumers who
are more thriller and adventurous loving. A lot of Games have been developed in which
consumers are being trained to solve crisis. BURNING BUSHES is one of the games that is being
used to train Fire men. FarmVille is another online Game that is build to promote the concept
of Green Marketing. Gamers are doing farming and thus producing fruits and vegetables and
earning money.

On the other side, Grand Theft Auto is a game totally based on immortality. Gamers are
stealing cars, weapons and other disastrous tools and thus killing common men, policemen and
destroying everything. Mafia Wars is one of the mot common games being played at Facebook
and its nothing but to get a position of Godfather in Criminal world.

Brands need to reduce these trends and they should help and educate consumers in getting this
world more and more peaceful and beautiful. “Blind” and “be cool” are games that encourage
human rights and discourage Racism & discrimination.

10. Self-enhancement / learning is fun / hobby classes

The pace of growth is at its huge potential. A lot of consumers are feeling obscure and stressed.
Its companies responsibility to educate consumers, to entertain them and they can adopt ways
of mutual benefit.

NESVITA "Women of Strength" is a very distinctive initiative. The slogan is “Khud pe Yaqeen”.
Companies need to position their brands in consumers mind through info-tainment. Nestle’ is
empowering women about their rights.

Cartoon Characters like Commander SafeGuard, and campeigns like lifeBuoy’s “agar ek
building k bache badal sakte hein tou Pakistan kun Nai” are doing great. They are positioning
themselves in consumers mind and earning profits while relieving stress and educating children
at the same time.
 11. From bigness to smallness / intimate experiences / Comfort

Every company in this world wants a very good relationship with the customers. And to do so,
they are getting closer to the customer, more intimate with the customers. Consumers, all over
the world, want intimacy, simplicity, better quality, superiority and comfort. They are preferring
brands who are offering matches to their requirements.

HSBS “world’s Local Bank” is a leader in the banking sector all over the world but it is acting
like a small, regional bank for every citizen of each country. They are using global strategies
with local preferences. Bank Alfalah is evoking a feeling of intimacy through advertisements
where an employee is giving attention and cheering with a small child. Allied Bank’s new
advertisements through which they are try to re-position a new Brand image in consumers
mind. There slogans include “when we think ‘change’ we think ‘BIG’ ”.

Each and every company is working to create distinctive emoti ons in consumer’s mind. Now is
the era of Emotional branding. Companies like PTCL (Re-establishing its image), Wateen, Wi-Fi
Tribe aare all using the power of emotions.

12. Mix n match / cut n paste / customization

The world is now getting transformed. People are no longer getting influenced by one role
model; in fact they are being influenced by many. HIP HOP music, once, brought trend of
wearing baggy Jeans and open shirts. But now they are becoming sophisticated. Now celebrities
are not being endorsed, instead their style is. Shahrukh’s ads with Tagline “Welcome to the
Acedemy of Style” is inspiring people to go for more sophisticated style . Nokia N-series is a
going for perfect category marketing. Nokia E-Series is focusing on Business men and some
other youngsters.
Telenor’s Holistic marketing campaign is also expected to be a great success. Their Tagline “I
enjoy same coffee and the same privilege as my boss does” and “Equal we are, Equally We
work” are good examples of Holistic Marketing. Amir Adnan is offering such a great variety in
Shalwar Qameez, Business suiting and most important part is that he is offering tribal culture in
his collections except from Business dressing. The same is true with Junaid Jamsheid’s, Maria
B, Shahid Afridi collections.

13. Luxury twisted / bling goes suave / what you do / fashion understand

As people are getting more style and sophistication oriented, instead of just following others,
they are making their own decisions about their spending and life style pattern. Consumers are
turning away from bling bling like fashion to bit sophisticated fashion. For example, on eid
occasions in Pakistan, girls are wearing dresses with more combination of colors but with less
‘Karrai’, men are more intended to wear kurta shalwaar with a bit ‘Karrai only aroung collar’.
But style and fashion change as the era changes. But the main characteristic of this trend is
sophistication with unique style.

Consumers are getting more selective about their image and how to build it. They are deciding
what to wear, what style to adopt, what sort of fabric to use and how much should be the
spending? Companies like Indigo, Telenor are now coming with models wearing very nice and
sophisticated dress. Even, if they are targeting youngsters or pre-paid consumers, they are
going with the model wearing Dress suit and stylish neckties, female models with simple yet
desirable extravagance. They are presenting Luxury items in a completely new and unique
package.
 14. Indie spirit / underdog / raw energy / realness

Every thing is becoming too fast. Music has shifted to pop culture. Coke studio has come up
with a unique blend of classical, pop, and folk culture and people love it. Movies are being
made on HIP HOP dance again (Step-UP, stomp the Yard, etc). Pepsi, Coke, Bournevitae, all are
focusing on Raw energy. Dew is inspiring people to believe on thriller like realities.

Telecommunication companies are endorsing famous Musicians and pop singers like Atif Aslam,
Ali Azmat, Ali Zafar who are performing live in a concert. This is because people, now, want to
see every thing in detail and Live. They want Performers to use raw energy. Pepsi famous Ad
with waseem akram and its tagline “Dewano ko nai Ijazat Pyaas bujany ki.” And “Badal Do
Zamana” glow is targeting and positioning their image for the youngsters who love to be
unique in energy and style. “Welcome to the world unlike any other: YOURS.”. Energile’s new
campaign for its juice focuses on “bus jeet” and “Jeet K sath”. They all are getting people to be
more real and just Win situation. On the other side, “Tapal Instea” is getting people to realize
that every thing is not perfect like “Not every politician has all” and “Not every team always
win” but Tapal Instea does.