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What’s in the news this edition?

  • Alliance RNM: Mitsubishi continues recovery in 2018
  • Volkswagen: Their new BRAND LOGOS
  • Amazon: Sets deadline for CPG brands to overhaul packaging
  • Amazon: Ad business doubles in 2018
  • Facebook and Google: Apple revokes apps
  • Samsung: Galaxy S10, Galaxy Fold launch, and more
  • Tencent: Continues aggressive Investments in Tech
  • BAT: Tech partnership and Formula One sponsorship
  • PMI: Eyes Tech Gadgets for smoke free markets
  • Coca-Cola: Continues innovation streak
  • Danone: Opens vegan factory and celebrates 100 Years of Yogurt
  • Ferrero: Results show +2.1% Organic Growth
  • Nestle: Reports growth in 2018
  • Mars: Royal Canin turns to Cloud tool to manage global supply chain
  • P&G: Acquires ‘This is L.’, a fast growing natural Feminine Care brand

Mitsubishi continues recovery with 18% sales growth in 2018

Mitsubishi Motors recently communicated its 2018 sales figures. The new comer of the Alliance continues recovery with 18% sales growth in the calendar year 2018.

The company sold +1,218 units increasing sales in both Japan and overseas markets.

Japan, Europe and North America all experience double-digit percentage increases but the crown is going to ASEAN which is up 35%, following success of new XPANDER, a large MPV model (up to 7 seats).

Indonesia was the #1 market in 2018 with an outstanding 84% increase. Thailand (+21%), Vietnam (+60%) and Malaysia (+32%) had a great performance as well. ASEAN counted for more than ¼ of the Mitsubishi sales last year.

What it means for Ipsos:

Mitsubishi is the true growth car of the Alliance, especially in the region they were present thanks to Nissan but without any clear leadership: ASEAN (APAC in the Ipsos’ words)

We were recently commissioned for 2 car clinics (Thailand and Australia) and there are plenty of opportunities to support them with booming sales: is the network delivering (Mystery Shopping)? Is the customer experience memorable (CX)? And so on… They had no clear MR policy when they were out of the Alliance and now they are in they are requested to implement a lot of KPIs.

To support them in the MR journey, we have a lot of learnings and best practices to leverage, coming from our long experience with Renault Nissan and our local/global knowledge and capabilities.

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Volkswagen and their new BRAND LOGOS

According to information from the German economy magazine, WirtschaftsWoche (Feb 15th), Volkswagen will fundamentally revise their brand logo. The new emblem shall work without the previous 3D effect, which should be much better on screens. The new VW brand logo is illuminated by light and shall stand for the opening into the new era of digital and electrical future. So far Volkswagen has not confirmed the change of their logo. It still seems to be secret and could be presented later this year. It is reported that the first Battery Electric Vehicle (BEV) to carry the logo will be launched at the end of the year and should be called ID3. The BEV-strategy is enormously important for Volkswagen and the new ID family promises to be icons such as the VW Beetle or the Golf.

VW recently announced that they will launch a new brand, which will target young Chinese first-time buyers. They are planning to launch both a Limousine and two SUVs later this year. Instead of using the VW logo, they will launch the models under the brand name JETTA. So far, the Volkswagen Jetta was a compact car and one of the top selling MODELS with over 15 million cars sold all over the world – also in China were the Jetta is a successfully established name. With the new JETTA VW shall close a gap in China between the established VW lead brand in the upper volume segment and entry-level mobility. VW hopes that their new BRAND JETTA will enable them to expand the market coverage especially in huge Chinese metropolitan areas. However, JETTA will not become the 13th brand within the VW Group. It will be used as a sub-rand of VW Cars in China.

What it means for Ipsos:

We cannot comment on if or how we have been involved in testing new logos. Car Manufacturers normally would test such changes during CLINICs and would explore how consumers would react towards enhanced logos. Understanding the brand architecture of Volkswagen and other car makers is extremely important for us. If new logos will be launched, this will allow us to research across many SL’s – IUU, Clinics, Creative Excellence and Brand Health Tracking or SIA all will deliver great insights.

To support them in the MR journey, we have a lot of learnings and best practices to leverage, coming from our long experience with Renault Nissan and our local/global knowledge and capabilities.

Complexity of Branding within VW

Read more on Logo’s

Read more on Jetta in China

Amazon Sets Deadline For CPG Brands To Overhaul Packaging

CPG brands have been summoned by Amazon to overhaul their product packaging to be greener, sturdier and cheaper to ship. From August 1st, manufacturers with products identified for the packaging improvement program will be charged an additional surcharge on non-compliant items, to the tune of $1.99 per item shipped. Brands that upgrade their packaging to meet the requirements ahead of the deadline will be rewarded with a credit of $1.00 for each item shipped.

“The idea is to reimburse brands for the cost of fixing their packaging says the packaging consulting company Fuseneo. Brands that upgrade their packaging might even make substantial money from the effort before the August deadline, beyond just offsetting the cost of fixing their packaging.

The battle that Amazon was facing, is that brands often supply Amazon with the same inventory that they would put on a retailer shelf. Designing packaging that will stand up in a fast-moving warehouse environment is completely different to designing packaging that is primarily designed to catch a shopper’s eye while displayed on a shelf.

Packaging upgrades are not only being prioritized by large CPG brands though. Fuseneo has started working with a lot of smaller brands who are looking to upgrade their packaging for the tougher demands of ecommerce.

“Amazon’s initiative has shed a light on packaging from smaller sellers to larger CPGs,” says Lindberg. “Brands of all sizes are thinking about more than just how the packaging looks. They’re also considering the right size, the right materials, and hardiness.”

What it means for Ipsos:

Given there is an August 1 deadline connected to this program and the substantial penalties for non-compliance, it should open opportunities for Ipsos in pack testing as our clients make changes to comply with Amazon’s new standards. The $1.00 per product shipped incentive if they meet requirements before the deadline, means our teams could incorporate into their proposals on this initiative that our work would be (partly/fully) self-funded by this incentive.

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Amazon’s ad business doubles to $10B in 2018

Amazon doubled its ad business revenue to $10B in 2018 and is projected to claim 8.8 percent of all digital ad spending in 2019 for the US. Google, by contrast, is expected to lose 1 percentage point of market share according to eMarketer. Of the top five companies in digital advertising, only Amazon and Facebook are expected to grow market share in 2019. The other companies are Microsoft and Verizon (Oath).

In addition to its rapidly growing advertising business Amazon has also increased its own ad spend by 72.5% in 2018 and is now the 5th largest advertiser in the US behind P&G, AT&T, Berkshire Hathaway (Geico), and Comcast.

What it means for Ipsos:

Our media development team has extensive experience helping Google and Facebook promote the advantages of their ad platforms to advertisers and Amazon is now the 3rd largest digital ad platform in the US. This represents a great opportunity for Ipsos to support Amazon in promoting their advertising platform in all the major markets Amazon operates as media buying is often local. Amazon currently has 8.8% of the digital ad spend market in the US compared to 30% for e-commerce companies in China. The upside potential is tremendous for Amazon as advertising has now become its 3rd core business behind AWS cloud and e-commerce.

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Apple revokes apps for Facebook & Google for collecting private data

Apple recently revoked Facebook’s enterprise certificate for its internal non-public apps over concerns on data privacy. Apple also shut down Google’s ability to distribute its internal iOS apps in February as it was also in violation of Apple’s data privacy and app distribution policy.

Apple has a long-running stance on privacy protection. CEO Tim Cook has called consumer privacy a human right and said that the kind of data collecting that companies like Facebook and Google conduct is an invasion of privacy. Cook’s Apple even took the step of blocking social media trackers on third-party websites in its Safari browser. Apple is clearly sticking to its rules and applying them and has sent a clear message to the industry that it isn’t waiting for government regulations to control how tech companies are collecting personal information.

What it means for Ipsos:

The heightened sensitivity about data privacy and growing concerns about government regulation have created an opportunity for Ipsos to help our tech clients navigate this complex landscape as there are merits to both sides of the data privacy debate. Our clients need a deeper and better understanding of data privacy from consumers and policy makers.

Read more – Facebook

Read more – Google

Galaxy S10, Galaxy Fold Launch: and more

Samsung celebrates 10 years of Galaxies with its Galaxy Fold, S10 5G and more.

The Galaxy S10 and foldable phone leakfest is finally over; now that Samsung’s Unpacked event has started, we’ve got all the official details about Samsung’s much-hyped new Galaxy Fold, its raft of Galaxy S10 models, and all the new accessories that go with them. Galaxy Fold

With its new 7.3-inch Infinity Flex display, a 7nm processor, Samsung’s new fast solid-state storage and seamless flow between folded and expanded views, the Galaxy Fold breaks new ground. At $1,980, that applies to its pricing, too.

Galaxy S10 models and accessories

There weren’t a lot of details left unleaked about the phones or accessories, but now we get to see them in action.

The Galaxy S10 5G is coming in Q2 The Galaxy Watch Active and Galaxy Fit make health a priority Galaxy Buds, the Gear Icon X evolved The Galaxy S10’s Instagram Mode Apps get full access to the Galaxy S10’s camera tech

What it means for Ipsos:

With the new launch, Samsung has active marketing programs in place and needs to monitor how effective they are in the local market.

It is important for us to have product knowledge and to keep a very close eye on these marketing activities to catch new business opportunities.

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Tencent Continues its Aggressive Investments in Tech Platform Companies

2018 was a record-breaking year for Tencent with 16 of its portfolio companies going public. Tencent has invested in about 700 companies globally in the past decade, with 122 companies going on to becoming unicorns, or private companies, with a valuation of US$1 billion or more. Its portfolio includes 63 publicly traded companies.

2018 was a record-breaking year for Tencent with 16 of its portfolio companies going public. Tencent has invested in about 700 companies globally in the past decade, with 122 companies going on to becoming unicorns, or private companies, with a valuation of US$1 billion or more. Its portfolio includes 63 publicly traded companies.

What it means for Ipsos:

Tencent has made a big bet on the platform economy and has invested in nearly every aspect of our digital lives including gaming, messaging, e-commerce, payments, fintech, meal delivery, advertising, and cloud services. We have generally observed that tech platform companies significantly increase their research spend once they expand into category adjacencies and new industries, as there is a greater need for insights to understand these new markets. In addition, many of Tencent’s investments are in overseas companies as they seek new growth opportunities outside of China.

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BAT announces Tech Partnership & return to Formula 1 sponsorship

The reduced risk product division of BAT have announced a partnership with McLaren Applied Technologies to share best practice, innovation knowhow and mutual experience in areas like battery technology and advanced materials. At the same time, BAT will sponsor the 2019 car displaying the ‘A Better Tomorrow’ logo. This move follows PMI’s partnership with both Team Ferrari and Ducati in their ‘Mission Winnow’ initiative.

What it means for Ipsos:

This new partnership may have interesting implications for Ipsos as we seek to extend our work in Innovation with BAT and explore new approaches to innovation to help them counteract the technology start-ups (see Juul’s recent valuation being greater than Uber). It is also likely to see a further increase in the focus of innovation for the whole next generation products category.

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Philip Morris Eyes Tech Gadgets for Smoke Free Markets

“Wearable devices are already pushing people to get more exercise, sleep and to eat better”, says PMI chief Andre Calantzopoulos. “The thing that is missing is helping people stop smoking. We have electronics in the new product, so we have an ability to connect with consumers that carry these products 16-17 hours a day.”

It may sound counterintuitive, however if you look deep you can understand the potential the ‘Device lead revolution’ in RRP’s poses to PMI.

The potential to be tied with incentive-based health tracking whilst remaining a tricky issue due to the privacy concerns and also it being associated with tobacco companies also poses lucrative opportunities.

A number of insurers offer customers discounts if they allow their exercise habits to be monitored with wearable fitness trackers and can prove they have an active and healthy lifestyle.

PMI have already started dabbling with the concept of providing lower insurance loading on premiums for adult smokers who convert to their smoke free products.

What it means for Ipsos:

This space of “tobacco meets technology” is fast evolving and headed in a direction where technology will play a pivotal role in the core product offers and the related services. So, our interactions and discussions with key tobacco clients need to reflect this as whilst legally these are still tobacco companies, at least for PMI, their ambition puts them in a different category trajectory.

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Coke Continues Innovation Streak with Orange Vanilla Launch

The Coca-Cola Company announced early February its first flavor extension for the flagship line in 12 years: Orange Vanilla, available in original Coke and Coke Zero Sugar varieties, launching nationwide this February.
The flavor extension is one of several recent innovations for Coke’s core CSD products over the past two years, a streak which started with the rebranding of Coca-Cola Zero as Coke Zero Sugar in 2017. Last year, the company relaunched Diet Coke with new packaging and four new flavors, and most recently in January announced additional Blueberry Acai and Strawberry Guava Diet Coke flavors.

Orange Vanilla is the first new trademark Coca-Cola flavor since Vanilla Coke launched in 2007.

Coca-Cola brand director Kate Carpenter said the move reflects a growing demand for choice and variety among consumer’s and is a component of the company’s transition. People’s taste preferences and lifestyles are changing, so we’re evolving our portfolio to provide authentic beverage experiences to meet those needs.”

The launch comes as Coke explores innovation opportunities in other areas of its beverage portfolio which will include a tighter focus on innovation and will position the unit as an “in-house accelerator” that can quickly grow emerging brands.

“Flavor innovations are a growth driver for Coca-Cola and drive excitement around our brand,” she said. “So while we are currently focused on the launch of Orange Vanilla Coke and Orange Vanilla Coke Zero Sugar, we are open to more new flavors and innovations in the future.”

What it means for Ipsos:

The number of variants that Coca-Cola is willing to launch is opening all kinds of opportunities to evaluate products in a very innovative way. Ipsos has a strong heritage in product testing and we can capitalize this business.

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Danone Opens Largest Vegan Yogurt Factory in the U.S.

The multi-million dollar facility located outside of Pittsburgh is dedicated entirely to plant-based food. The new factory will make products from Danone’s profile, including Vega vegan yogurt and protein powder, Silk yogurt, and So Delicious Dairy Free coconut yogurt and cheese shreds.

“As flexitarian eating patterns continue to evolve and grow in popularity, plant-based food options present an opportunity to bring new choices” said Mariano Lozano, CEO of Danone North America.

“As consumers continue to seek out more dairy-free options, having a facility that meets this standard gives us an opportunity to deliver on their growing demand and high expectations.

Chad Stone called the facility a “priority,” adding: “Many people who enjoy our products look for plant-based options because they are interested in lessening their impact on the environment through diet.”

Danone dived into the plant-based market when it acquired WhiteWave Foods and credited vegan food sales for its revenue spike last April and later revealed that it plans to triple sales in the category by 2025.

Danone will take steps to make the new factory more sustainable, such as reducing electricity consumption by switching to LED lights and minimizing waste and water usage.

What it means for Ipsos:

Danone expects to grow Plant Based / vegan Dairy products exponentially in the next months & years across the globe – be prepared to support with country learning about vegetarianism and engage your clients on their local plans for innovation in that area.

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Danone Decorates the Streets of Paris to Celebrate a Century of Yoghurt

The French multi-national food products corporation Danone turns 100 years and so do their iconic yoghurt pots.

To celebrate the occasion the brand takes on a travel in time and went searching deep in their archives to bring out their very first advertisement prints.

The posters, that were revisited by BETC Paris, were then used to decorate and brighten up the February-grey streets of Paris in a guerilla style outdoor campaign.

What it means for Ipsos:

As Danone celebrates its 100th anniversary globally, let’s proactively investigate our clients’ plans, and see how we can support in preparing, monitoring and analysing their actions and peoples reactions to the event.

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Ferrero Results show +2.1% Organic Growth

Ferrero International S.A. results for the latest 2017-2018 fiscal show a +2.1% organic growth of the turnover to 10,7 billion Euros. Recent acquisitions in Europe and the US are excluded. Sales increased by 3,5% (6,8% at constant rates), driven by Germany, France, Italy, Poland, UK and US. Brands contributing most to Ferrero business are Nutella, Ferrero Rocher, Kinder Joy, Kinder Bueno and Kinder Chocolate. Total investments also grew to 673 million Euros.

Globally, Ferrero has over 31.700 employees, has a direct presence in 55 countries operating in 170 markets and manufactures its products in 25 plants.

As far as we know, the organic growth of global turnover remained below expectations for a second year (+1.5% in the previous fiscal), pushing Ferrero group to accelerate with more acquisitions. Earlier this month, Ferrero placed a first-round bid on Kellogg’s Keebler, Famous Amos and fruit snacks businesses, in a deal that could value the brands at more than $1.5 billion. The sale of Campbell cookie brands in Australia also attracted the attention of the company.

What it means for Ipsos:

On one hand, acquisitions will increase the size of the cake, i.e., will create new opportunities for projects aimed at revamping the new brands, measuring their potential outside the US, testing communications, … On the other hand, Ferrero launched an initiative named “fuel for growth”, i.e., generalized savings to fund acquisitions that will probably extend to research budgets.

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Nestle Reports Growth for 2018

Nestlé reported their annual results – organic growth of 3%, (an increase on the previous year), supported by strong momentum in their two largest markets, US and China. They saw growth in all regions, and particularly in three of the four categories where they have placed more strategic focus – Nutrition and Health Science, Pet Care and Beverages.

Following the sale of US Confectionery brands to Ferrero last year, they are now looking at strategic options for the Herta charcuterie brand, (this will have most impact in Western Europe, particularly France).

What it means for Ipsos:

We cannot expect a relaxation of the pressure on budgets, since they point to “operational efficiencies” as a key driver of their profit margin expansion.

However, a return to higher levels of growth increases the chance of investment, and the advent of the local client organization means that we are well placed to take advantage of local market needs, so long as we stay close to our local Nestlé contacts!

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Mars – Royal Canin turns to Cloud tool to manage global supply chain

Royal Canin, subsidiary of Mars Incorporated, has implemented a cloud solution to help manage its global supply chain according to software provider, FuturMaster. Royal Canin launched the new technology in the US in 2018 and plans to deploy it in more than 20 other markets over the next three years.
FuturMaster tracks and manages product availability, inventory levels and transportation needs. With 3,600 different products and around 2,500 tons of dog and cat food being produced every day in 16 factories worldwide, Royal Canin is able to manage the challenges of supplying its customers around the globe.

“Many of our products, often prescribed by vets, are there to cure ailments through better pet nutrition, so product availability is our obsession to secure the health of the 21 million cats and dogs we feed,” said Pascal Waller, global supply chain director at Royal Canin.

Royal Canin decided to launch the software in response to the growing complexity of the supply chain, a rising demand for specialty pet foods, and a double-digit annual sales growth within the company.

“We’re virtually doubling our capacity, after adding three plants in the last three years, so FuturMaster delivers us the automated supply and demand management capabilities all in one system, so everyone’s in total alignment and sharing the same data.”

What it means for Ipsos:

Royal Canin’s better digitalization of supply chain can help Ipsos in 3 ways:
It enables us to better understand the value chain of our Petcare client, and thus to elevate our business conversations with them. Mars Petcare US also has had key supply issues in 2018 – due to ecommerce the prices of deliveries have exploded, thus Mars Petcare US has lost a big part of their profit!

It is about digitalization, which is currently THE “HOT TOPIC” at Mars. While this is not a “new” hot topic, it is now taking all the attention of Mars, and this can serve as a new “hook” for our conversations about digital.

Lastly, we can help them in their relationships with retailers, we already run trackers for them, this topic can be followed in our trackers or give way to new research projects.

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P&G Acquires ‘This Is L.’, One of the Fastest Growing Feminine Care Brands in the U.S.

P&G announced its acquisition of ‘This Is L.’, to meet growing consumer demands for period products in the naturals segment. Its portfolio primarily includes beautifully designed, high quality tampons, pads, liners and wipes made with organic cotton.

For every L. product purchased, a donation is made to improve product accessibility to girls and women in need in the US and around the world.

L. has taken a unique approach to this program, increasing local access to products by working with partners that provide tools such as pad manufacturing machines, to not only make these products available to those who need them, but also to fuel women’s entrepreneurship.

“Our strong growth has enabled us to stand in solidarity with women in more than 20 countries,” says Talia Frenkel, CEO of This Is L. Pairing our purpose with P&G’s expertise, scale and resources provides an extraordinary opportunity to contribute to a more equitable world.”

This acquisition will grow P&G’s Feminine Care business in the naturals segment and accelerate growth for L. products while continuing to support women and girls together.

What it means for Ipsos:

This acquisition, aligned with P&G’s strategy to use its brands to positively influence the world, represents opportunity for Ipsos to provide guidance on social cause marketing, new product innovation, and deliver more impactful consumer communication.

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