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Landors 2014 trends forecast

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2uI8 Landor Aaaociatea.
All righta reaerved.
Landor Associates ia the worlda preeminent
brand conaulting rm, apecializing in creative
atrategy, deaign, innovation, and naming.
Landor ia part ol wrr, one ol the largeat global
communicationa aervicea companiea. viait ua
at Landor.com.
llluatrationa by Junko Vaegawa, Senior Leaigner,
Caaaia Jhe, Leaign lntern, woo Chung, Leaigner,
and Stjepan llich, Leaign lntern, all ol the San
lranciaco oce ol Landor Aaaociatea.
I Landor Aaaociatea
Trevor Wade ia director ol digital
marketing lor Landor Aaaociatea
and editor ol Landora trenda lorecaat.
Trends in technology by Jaaon 8ice
Trends in airlines by Peter Knapp
Trends in pharmaceuticals in China
by Peter Vack
Trends in luxury by Lulu Raghavan
Trends in Russia by Lmma 8eckmann
Trends in automobiles by Luc Speiaaer
Trends in packaging by Jeaaie Lettler
Trends in nancial services by Vich 8ergeaen
Trends in South Africa by Karen Attyah
Pow are branda adapting to the new normal`
we aaked our experta to ahare their thoughta
on what zo haa in atore. oull nd our
lorecaat lor nine key aectora in the pagea that
lollowand weve alao compiled a liat ol o
more general developmenta that youll want to
keep an eye on.
ln every induatry and geographic area we aee
branda making the leap into a tranaparent,
digitally aavvy, aocially conacioua marketplace
where conaumera have a atronger voice than
ever belore. 8ut even in our tuned-in, touch-
acreen-happy world, the lundamentala atill
apply. Jo connect emotionally with cuatomera,
branda muat remain true to what they atand lor.
Read our predictiona lor zo here or download
them lrom the i8ookatore.
Landors 2014
trends forecast
2 Landora 2uI8 trenda lorecaat
8 Landor Aaaociatea
Jason Bice ia aenior manager ol
verbal branding in the San lranciaco
oce ol Landor Aaaociatea.
and more are becoming realitieaand protable
onea at that. Jhe market lor wearable and mobile
health-device technology waa worth $z billion in
zo and ia projected to reach $ billion by zo.
8randa to watch right now are Avery Lenniaon
(Vetria wearable Senaor), Ai0 Clothing (amart
textilea), Jhimble 8ioelectronica (amart bandagea),
and Lephyr Jechnology (8ioParneaa).
And while the luture certainly looka bright, ita
important to remember that wearable devicea
are, by nature, connected to the cloudwhich
createa privacy iaauea that become particularly
tricky in conjunction with health data. 8ut lor
now, therea atill more excitement than trepidation
around todaya aonwear. Jhe burgeoning area
ol digital health meana countleaa marketing and
partnerahip opportunitiea lor both eatabliahed
branda and amaller diaruptoraand that could
mean a healthier luture lor all ol ua. 0r a lully
lunctioning 8atauit. lll take either.
Wearable health. 0oogle 0laaa. like- luel8and.
Jhe Pebble. 0nce conned to the realm ol aci-,
wearable technology ia not only a reality lor
todaya conaumer, ita gearing up to be the next
gold ruah in tech.
Jhe peraonal wellneaa and tneaa category haa
already taken o. Capitalizing on the adage ll
you cant meaaure it, you cant manage it, the
aocially aavvy litbit 0ne and the inaanely elegant
Viat Shine help people create, track, and achieve
their activity and weight management goala in
waya that were previoualy the domain ol coatly
peraonal trainera.
8ut tneaa and activity trackera only acratch the
aurlace ol whata poaaible. Aa aocial media, appa,
and phyaical devicea become ever more connected,
a new layer ol individual data ia being added to
peoplea livea that didnt exiat even ve yeara ago.
Jhia ia good newa lor litbit and like- luel8and
wearera atriving to loae aix pounda or go lrom
couch potato to ,K runner in a month, but ita
apectacular newa lor the health care induatry.
Jhe implicationa lor preventive care are enormoua,
and the eld ia growing by leapa and bounda. At
the zoz Conaumer and Llectronica Show, z bootha
ahowcaaed wearable health devicea. 8y zo,, that
number had more than tripled.
Aa the coat ol data-meaauring aenaora lalla and
electronic componenta ahrink, new doora open lor
lorm, lunction, and application ol wearable tech.
A circuit tattoo that delivera real-time data to
phyaiciana` J-ahirta that meaaure body tempera-
ture and vital aigna` Smart bandagea that aend
electric currenta to chronic pain apota` All theae
Trends in technology
by Jason Bice
4 Landora 2uI8 trenda lorecaat
5 Landor Aaaociatea
Peter Knapp ia global creative
ocer, baaed in the London oce
ol Landor Aaaociatea.
National carriers
lational branding waa once the bedrock ol
traditional carriera. Poaitive aaaociationa ol country
and aalety were layered over the airline brand,
coupled with cuatomer-oriented beneta auch
aa punctuality or impeccable aervice.
8ut today, when a large part ol the cuatomer journey
ia online or automated, national characteriatica are
dicult to identily. LaayJet now deacribea itaell aa
the airline lor Lurope, atripping away all hinta ol ita
8ritiah origin. ll LaayJet and Jet8lue are atateleaa
carriera, what are the implicationa lor national
airlinea` ll the nationala reapond with upgraded
producta, what doea that mean lor tcca`
Advice to carriers
Jhe advice we oer ia: Lvolve. ln a competitive
market where cuatomer expectationa grow higher
every day, conatantly rene your oer to enaure
relevance and dierence.
lational branda need to radically reconaider the
relevance ol their branda in new world marketing.
tcca need to treat their branda aa drivera
ol prelerence rather than aimple logoa.
All airlinea will benet lrom locuaing on lace-to-
lace tranaactionanow one ol the moat critical
touchpointa lor expreaaing human valuea and
dierentiating the brand experience.
Paa the enlant terrible ol the airline induatry, the
atreet punk, aka the low coat carrier (tcc), nally
grown up`
tcca democratized air travel by creating a viable
model with aimple principlea: one type ol plane,
economy claaa only, aecond-tier deatinationa, no
allocated aeata, no lree lood, no lrequent yer
programa, no airport loungea. Jhia lormat rocked
the induatry when it rat came on the acene, but
ia it now ao accepted that theae cheap and cheerlul
yboya are becoming part ol the inatitution they
once challenged`
Evolution of the punk
0nce aet up, moat tcca dont apend on anything
but the baaica, to them, a brand ia no more than
a logo to atick on a plane. 8ut in a market where
pricea are comparable, brand ia a critical component
ol cuatomer choice.
LaayJet and Jet8lue are once again bucking the
trend and challenging the very principlea they
helped eatabliah. Jheae two aucceaalul, innovative
tcca have inveated heavily in brand and aervicea
to enaure they maintain relevance and make their
dierence evident. 8oth now oer buaineaa claaa
producta, aeat aaaignmenta, and loyalty beneta.
tcca uaed to be lamoua lor poor aervice, yet theae
two airlinea are being leted lor their ecient delivery.
Aa LaayJet and Jet8lue jockey lor middle ground
in their reapective territoriea, thia new hybrid
model could require legacy carriera and tcca
to rethink their game plana. lta a tough market,
and without change, the luture could be bleak lor
leaa innovative airlinea.
Trends in airlines
by Peter Knapp
Landora 2uI8 trenda lorecaat
/ Landor Aaaociatea
Peter Mack ia marketing director lor
Landor Aaaociatea in 0reater China.
expoaed juat when the government waa caating
about lor a auitable example to hold up to the
Chineae buaineaa community.
ln thia environment, the principlea ol branding
become more important than ever. Lening the
relevance, dierencea, and broader aocial purpoae
lor a pharmaceutical company ia both dicult
and extraordinarily valuable. A company like zian
Janaaen that actively worka to incorporate theae
concepta at every level ol ita organization ia more
aucceaalul at attracting talent, engaging with
audiencea, and delivering on promiaea made.
Packaging deaigned with the uaer in mind rather
than the convenience ol the production line will
have quicker uptake, better diatribution, and
atronger preaence.
0ur advice to 8ig Pharma companiea, beleaguered
aa they may be, ia that now ia the time to redene
and rearm what your brand atanda lor and how
your valuea ahould caacade through your aalea and
marketing communicationa.
lew categoriea have been ao bueted by the
trenda ol the twenty-rat century aa pharmaceuti-
calaand nowhere more than in China. Pere,
pharma aita at the interaection ol vaat demographic
change (an aging population with , million more
men than women), unprecedented economic
growth (a ,,o percent increaae in per capita income
over the laat zo yeara) with aaaociated rich man
diaeaaea and medical expectationa, and an
unheard-ol patent tranaition. 8etween zoz and
zo hundreda ol pharmaceuticala will loae their
protected atatua, reaulting in aome $,, billion
in aalea at riak aa buyera turn to generic druga.
Add the Chineae governmenta claaaication ol
pharmaceuticala aa a national aecurity priority
(allowing aignicant regulatory interlerence),
aubaidiea to a hoat ol manulacturera, and ongoing
aupport lor traditional Chineae medicine.
lta eaay to aee why 8ig Pharma haa devoted
ao much energy to cracking the code ol doing
buaineaa in China. 8y and large ita approach haa
been cautioua and accommodating. Johnaon 8
Johnaon haa leveraged ita relationahip with zian
Pharmaceuticala into the aucceaalul zian Janaaen
partnerahip, Pzer continuea to evolve ita connec-
tion with Lhejiang Piaun Pharmaceuticala. ln each
caae, the marriage givea the weatern partner a aeat
at the generica manulacturing table, aomething that
might have been anathema , yeara ago.
Lven ao, the aituation can be dangeroua. when
csk gave incentivea to doctora and hoapital ata
to encourage them to preacribe ita producta, it
probably aaw the practice aa atandard lor China.
8ut buaineaa aa uaual can change laat here, and
csk had the mialortune to have ita ethical error
Trends in pharmaceuticals in China
by Peter Mack
8 Landora 2uI8 trenda lorecaat
9 Landor Aaaociatea
Maximizing digital and social media
opportunities
ln zo we will aee a big ruah to digitalize. lnapired
by trailblazera like 8urberry, luxury branda will be
looking to revitalize their digital atrategiea to
connect with the new generation ol tech-aavvy
conaumera. Chriatiea aecure platlorm lor iPhone
bidding, Armania Jweet Jalka, lendia Peplum
People video by Karl Lagerleld, and 8urberrya
catalogue on Pintereat are juat a lew examplea ol
recent digital loraya undertaken by luxury branda.
Lulu Raghavan ia managing
director ol the Vumbai oce
ol Landor Aaaociatea.
Trends in luxury
by Lulu Raghavan
lta a bold new world out there. Jhe luxury branda
that will experience the greateat aucceaa thia
coming year will be thoae that employ aophiaticated
conaumer aegmentation techniquea, inveat in
experience-enhancing technology, and exploit
digital and aocial media to connect with cuatomera.
Dening luxury
Luxury ia in major ux and will continue to be
ao in zo. Jhe word luxury haa dierent ahadea ol
meaning in every language, and that meaning haa
been atretched almoat beyond recognition in aome
caaea. la luxury about the higheat quality gooda
produced by excellent cranamanahip, aordable
to only a lew` 0r ia it more democratic` la it about
apending the moat you can to acquire a poaaeaaion,
or ia it the ability to indulge in time, ailence, and
apace` A badge to aignal atatua, or the queat lor
aomething more peraonally meaninglul` lo aingle
denition aeema to encompaaa thia broad eld, with
luxury meaning dierent thinga to dierent people.
Integration of technology
Luxury branda will turn more and more to technol-
ogy to create engaging experiencea lor conaumera.
lnterbranda 8eat 0lobal 8randa zo, ranking
ahowa that luxury branda honoring their heritage
while purauing the lateat technology have the
greateat edge. Jhe atudy citea Vercedea-8enz lor
ita percent increaae in brand value attributable
to ita embrace ol green technologiea. 8urberry too
haa reaped the beneta ol ita tech initiativea auch
aa the ,-L holographic runway. Louia vuittona Von
Vonogram allowa cuatomera to add initiala to
their baga, a trend toward maaa cuatomization
enabled by technology.
Iu Landora 2uI8 trenda lorecaat
II Landor Aaaociatea
laahion. Ruaaian playera remain marginal in theae
areaa, but are atarting to challenge weatern
hegemony over branded apparel. lnternational
leadera ahould keep a cloae eye on atyle trenda in
Ruaaia.
Serving the masses
Sell-aervice optiona will continue to pop up every-
where, with leading nancial branda like Sberbank
even oering automated, paaaport-veried loana.
Cuatomer aervice will remain paramount to conaum-
era, expertiae and politeneaa are cited in reaearch aa
lar more important than apeed or independence. ln
Ruaaia, technological advancea are no replacement
lor well-trained peraonnel.
Brand Russia at the Olympic Games
Jhe winter 0lympic 0amea in Sochi will provide
Ruaaia with the rat major opportunity to ahow o
ita poat-Soviet glory, and Sochia national partner
and aupplier branda will be on the world atage.
Conaumer-lacing branda auch aa 8altika beer and
Aeroot can expect to benet moat lrom a apike
in global intereat lor all thinga Ruaaian.
with a patriotic domeatic audience awept along on
a wave ol national pride, branda would be wiae to
go native thia year. Leapite increaaing calla lor
international aponaora to condemn Ruaaiaa human
righta record, Sochi will prove a pivotal moment lor
ita aliated branda, and lor Ruaaia itaell.
Matthew Kissane, strategy director in Landor Moscow,
contributed to this piece.
Aa Ruaaiaa march toward market maturity continuea,
branding will catch up with weatern norma and beat
practicea. Leaign will become aimpler and leaa luaay,
branding will be underatood more holiatically, and
greater attention will be paid to aervice and
cuatomer experience.
Homegrown domination
According to Landora market reaearch, Ruaaian
conaumera have a atrong prelerence lor homegrown
branda in major laat-moving conaumer gooda
categoriea auch aa groceriea, anacka, aon drinka,
dairy, and apirita (particularly vodka). Jhia haa led
the premium aupermarket chain Azbuka vkuaa and
other eatabliahed retailera to expand their private
label oera. lnternational contendera ahould
conaider inveating in Ruaaia-oriented branda, which
are already poaitioned to celebrate local origina.
Lomeatic branda will alao dominate aervice
categoriea auch aa telecom and broadband.
lnternational branda have traditionally ahied
away lrom thia area becauae ol the conaiderable
bureaucracy involved. Jech-aavvy Ruaaian compa-
niea like ota will be aetting a new atandard
in the aphere ol 0 connectivity, but they will
need to locua on brand building to avoid
becoming commoditized.
Style and status
lnternational branda continue to outrank domeatica
on key metrica auch aa quality, value, innovation,
and preatige. Jhia leavea them atrongeat in
atatua-driven categoriea where purchaaea are
inlrequent, auch aa cara, electronic equipment, and
Trends in Russia
by Emma Beckmann
Emma Beckmann ia country director ol
Ruaaia, baaed in the Voacow oce ol
Landor Aaaociatea.
I2 Landora 2uI8 trenda lorecaat
I8 Landor Aaaociatea
Green and performance: Friends again
Car manulacturera have accepted and embraced
green technology, aa proven by the launch ol cara
auch aa the e|w i aeriea and Joyotaa rtv: rv green
suv. Automotive leadera aeem to be managing the
electric revolution atep-by-atep, waiting lor both the
market and technology to mature enough to juatily
coata. Jhe reaaon ia aimple: 8randa have determined
that what conaumera moat deaire in green cara ia
breathtaking tech- or deaign-driven perlormance,
and perlormance development takea time.
Alternatives to ownership
Car ownerahip ia no longer the only viable way
to get around. Jhe occaaional driverlikely to be
urban and agileluela alternative mobility aolutiona.
Automotive branda are now expanding into the
territory ol car rental, either by developing their own
renting optiona (Vu by Peugeot) or by connecting car
ownera with thoae in need ol tranaport (Vulticity by
Citroen), allowing uaera to awitch aeamleaaly
between modea ol tranaportation.
0ntil now, perlormance and comlort have been the
two key drivera in the automotive market. 8ut today
a multimodal, tech-dependent way ol lile ia changing
the way people conaume cara, and automobile
branda are reaponding with a aurge ol inventiveneaa
and creativity. Leaigned technology will aoon
aurpaaa perlormance and comlort to become the
true driver in thia category.
Jodaya automotive technology ia being developed
jointly with aonware and application deaignera,
amartphone manulacturera, and lnternet companiea.
Carmakera and their partnera are locuaing on
multimodal lileatylea, uaage, lunctionality, and
alternate tranaportation aolutiona. Jherea an
exciting ride ahead aa auto branda get a new
eld to play in and new lrienda to play with.
Tech-charged cars for hyperliving
Citroena C Cactua illuatratea the locua on
creating the ideal driving experience, characterized
by multitaaking and overlapping activitiea. way
beyond gadgetization, the Cactua ia both playlul and
convenient, with a touchacreen on the daahboard
controlling muaic, crs, air-conditioning, and more.
luturiatic` lot really. web ,.o (meaning lnternet-
connected) and aell-driving cara were at the heart ol
thia yeara lranklurt Auto Show, and preaent atrong
advantagea in the arenaa ol aalety, environmental
lriendlineaa, and productive uae ol downtime
behind the wheeltraditional challengea lor the
automotive aector. A driver atuck in trac can now
place a Skype call, make travel reaervationa, or work
on a apreadaheet rather than luming at delaya.
Trends in automobiles
by Luc Speisser
Luc Speisser ia managing director ol
the Paria oce ol Landor Aaaociatea.
I4 Landora 2uI8 trenda lorecaat
I5 Landor Aaaociatea
Trends in packaging
by Jessie Zettler
Jessie Zettler ia aaaociate deaign
director in the Cincinnati oce
ol Landor Aaaociatea.
Jrenda in packaging are demonatrating alow but
ateady innovation that keepa cuatomera engaged
and excited. 0reen packaging in particular ia coming
ol age, evolving to add perka well beyond eciency
and waate reduction.
Plant-based choices
8ioreaina and plant-baaed packaging will continue
coming to market in zo. ln addition to aimply
replacing plaatica with theae materiala, manulactur-
era are nding innovative uaea lor biological
packaging to give conaumera extra product beneta.
Jhe potato atarch and paper container lrom veuve
Clicquot ia not only oo percent biodegradable
and recyclable, it alao inaulatea the bottle, keeping
it cool lor up to two houra. Vany branda have
zero-waate optiona in the worka, auch aa edible
rice paper lood wrappera and packaging that
waahea away in water.
Second life
Packaging with dual uaea reaonatea with the
environmentally conacioua and the budget conacioua
alike by reducing waate and giving the cuatomer two
producta in one. A Lutch company aella lightbulba
whoae packaging can turn into a lampahade. Lu, the
lrench biacuit brand, haa introduced a box that
becomea a childa toy when relolded.
Pure and simple
Cuatomera today want to know where their lood
comea lrom and what ingredienta go into it. Jo meet
thia demand, lood branda are rolling out packaging
that communicatea aimplicity, purity, and natural
origina. 8eautilully photographed, lreah-looking
ingredienta are gracing packagea on nearly every
grocery ahell.
Jargeta Simply 8alanced private label uaea a circle
graphic paired with appealing lood photography on
a eld ol turquoiae. Pillaburya Simply line ia clothed
in a white package with no-nonaenae typography
and product imagery.
latural huea and unbleached papera combined with
popa ol vibrant color are being uaed to ahow avor
variety, aa with Jriacuita bright accenta reminiacent
ol colora uaed in laahion and home decor.
Beauty to go
ln zo well aee on-the-go packaging move into the
beauty category. Sample aizea not only t perlectly
in a travel bag or purae, but are a great inducement
to try a new luxury item.
Sephora ia taking advantage ol the latter opportu-
nity by including trial-aize producta with purchaaea.
0ering aamplea at checkout ia a amart targeting
movewith lreebiea given only to thoae who have
already ahown an intereat in high-end beauty.
Celebrity co-branding
Vore and more branda are adding cachet to their
linea through the name recognition ol artiata and
deaignera. Jarget ia well known lor partnering with
major laahion deaignera including Phillip Lim,
Alexander Vc0ueen, and Jaaon wu. Sephora
recently collaborated with Pantone and Lianey,
Jarden Conaumer Solutiona (parent to 0ater and
Sunbeam branda) enliated lrench 8ull to deaign a
line ol amall appliancea. Commemorative Andy
warhol deaigna have appeared on Perrier, lara, and
Campbella aoup packaging thia year.
I Landora 2uI8 trenda lorecaat
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Trends in nancial services
by Mich Bergesen
Mich Bergesen ia global director
ol nancial aector branding, baaed
in the lew ork oce ol Landor
Aaaociatea.
live yeara into the tepid recovery lrom the nancial
criaia, the biggeat banka are bigger than ever,
beneting lrom continued intervention by the
lederal Reaerve and other central banka. Powever,
their longer-term challenge ia how to adapt to the
dramatic ahin to aimpler rolea aa lacilitatora ol
ataple nancial tranaactiona.
Pow will nancial branda thrive in thia new normal`
Retail banka continue their long road to rebuilding
conaumer relationahipa, atriving to deliver value
through technology, more tranaparent product
oera, and attentive aervice. lnveatment banka
have aimilarly moved toward lower-margin
corporate banking that calla lor more authentic
day-to-day connection with clienta.
Jhia aearch lor authenticity ia the dominant
theme lor zo.
Aligning messaging and delivery
Striving to overcome lingering diatruat, nancial
rma are ying their aga prominently on Vain
Street, preaenting ataple aervicea in more
conatructive waya. 8rand reaearch ahowa that
while truat ia table atakea in other aectora, it
remaina a atrong dierentiator in nancial aervicea.
Lxpect to aee more conaumer advocacy-avored
campaigna auch aa wella largoa Together well go
far, Schwaba Talk to Chuck, and Chief Life Ocer
lrom Lincoln linancial.
Jougher regulatora and memoriea ol paat overprom-
iaea encourage a modeat prole, ao dont expect to
aee elitiat Live richly or diaingenuoua You and us
meaaagea. Jhe lexicon ol lormerly poaitive phraaea
that have become tabooa continuea to grow,
particularly in the areaa ol trading and inveatment.
Financial innovation, high-frequency trading, and
information edge have joined pejorativea lrom the
mortgage meltdown that include structured products,
CDOs, and Ninja loans.
Smart branda will chooae their worda carelully,
avoiding auperlativea or perlormance promiaea
they cannot deliver. Condent branda can atand
out by making aenaibly bold claima they are able
to back up.
Streamlining 2 and 2 experiences
linancial rma are atarting to treat individual
and corporate clienta aimilarly, giving branda
an opportunity to tell an integrated atory acroaa
channela and modea. Look lor conaiatent interlacea
and authentic experiencea that encompaaa every
audience and interaction. Jhe proleaaional expertiae
typical ol corporate platlorma will become atandard
in conaumer accounta, and the highly interactive
experiencea typical ol conaumer platlorma will
become atandard lor corporate clienta.
Building more visible investment brands
Jhe brighteat apot in nancial aervicea will continue
to be wealth and aaaet management. Vargina are
high and buaineaa ia atrong, but thia ia a category
where branda have traditionally been rather
underatated. Competition ia increaaing and the
apace ia becoming crowded, yet only a lew are
making clear, bold claima auch aa 8lackRocka
Investing for a new world and Pimcoa Your global
investment authority. Jhe remaining array ol lunda
uae aimilar language to deacribe themaelvea. Aa
rma continue expanding their aaaet claaaea and
lund typea, and new legialation eaaea reatrictiona on
branded inveator communication, expect to aee
atronger, more aophiaticated meaaaging conveying
each rma diatinctive value propoaition.
I8 Landora 2uI8 trenda lorecaat
I9 Landor Aaaociatea
Trends in South Africa
by Karen Attyah
Karen Attyah ia atrategy director
in the Cape Jown oce ol Landor
Aaaociatea.
The good business journey
South Alrican branda have begun embracing brand
purpoae by incorporating it into every aapect ol
their buaineaaea. Purpoae ia no longer limited to
a aingle iaaue like auatainability or aocial inveat-
ment, inatead, branda are working to impact
multiple categoriea at once.
Succeaalul initiativea do good on many levela:
delivering producta and aervicea that aupport
buaineaa aapirationa, achieving environmental
auatainability, building atrong communitiea, and
inveating in innovation.
woolwortha in South Alrica ia leading the way in
brand purpoae. Jhe company haa lundamentally
changed ita buaineaa approach to prioritize ita
commitment to aocial tranalormation and
auatainable energy, water, larming, and ahing.
lt haa decreaaed energy conaumption by almoat
z; percent aince zoo and waa named one ol the
developing worlda auatainability championa.
High loyalty, high reward
Sluggiah growth in South Alrica haa len moat
conaumera highly conacioua ol their walleta.
8randa have reaponded by oering reward
programa, a relatively new atrategy lor the country.
Jhe inaurance company Liacovery haa introduced
an innovative program called vitality, the rat ol
ita kind in South Alrica, that rewarda cuatomera
aa they act to improve their health.
Powerlul partnerahipa make it workvitality
membera get aignicant diacounta to gyma and
caah back on healthy lood at Pick n Pay or
woolwortha. Pealthy behaviora, in turn, earn
pointa lor membera, who then receive diacounta
on their inaurance billa. 0p next lor the brand ia
Liacovery Lrivea vitalitydrive, which rewarda aale
driving with petrol diacounta.
Alrican branda looking to build aucceaalul reward
programa will reach out to powerlul, inapiring
partnera, uae innovative toola to make participation
eaaier, and provide immediate rewarda.
Growth elsewhere
South Alricaa lagging growth and polarized claaa
atructure have led aome large branda to move
beyond the countrya bordera to capture growth
in Laat and weat Alrica. 0ther international branda
are bypaaaing South Alrica altogether to inveat
in ligeria, Kenya, or 0hana.
Jhe keya to aucceaalul expanaion on the Alrican
continent will be:
Consistent, high-quality supply and
distribution. Shoprite had a rat-mover
advantage, but alao aecured a leaderahip
poaition by developing local aupply chaina
that deliver quality and conaiatency.
Products tailored to regional markets. ln
Kenya, Chineae car branda are oering producta
optimized lor the area, auch aa larger petrol
enginea lor the long diatancea traveled by lorriea.
Adoption of alternate payment systems.
Jhe haberdaahery Suitaupply now allowa Kenyan
conaumera to pay with m-Peaa, a mobile payment
ayatem extremely popular in the developing world.
www.landor.com
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