If you want to succeed in the global market, you need a strategy capable of capturing the essence of transformation in growth markets and generating brand velocity. Ogilvy recently launched a report called “Velocity 12”, which measures the speed of growth and change, as well as middle-class growth in terms of income. It also identifies the 12 new growth markets, and extracts consumer behaviour insights. The report features several perspectives that should be considered when forming marketing strategies, including: growth of female participation in the workforce, penetration of technology, and an increase in middle-class Muslim Futurists. (For more detail, please refer to “What Ogilvy’s ‘V12’ means for Japan”.
So how should a multinational company interact with these growth market consumers, in order to become a credible and loved brand? In an era where market structures are transforming at a greater speed than ever, two core marketing principles come to mind: “Brand Behaviour Principles” and “Omnichannel Principles.”
Brand Behaviour Principles
Brand Behaviour Principles reflect a brand that is embraced by society. To achieve this, a brand needs to define the values it wants to impart, and have conversations with consumers in rapidly changing markets. V12 consumers look for brands that do things that matter to them. Brands need to fully embrace the fact that they don’t create themselves; customers have significant impact on how brands are built, and brands cannot abstain from ongoing interaction. Realising this is one thing. Adapting to it requires a shift in thinking and behavior. That shift is called Behaviour Branding. Behavior Branding asks brands to do, not just say.
Omnichannel Principles address critical changes occurring in the V12 markets due to rapid evolution of technology and multiplication of platforms. Brands need to devise strategies to capitalise on opportunities made possible by technology and meet the expectations of consumers. Omnichannel Principles leverage key drivers of velocity, with a focus on mobility, ecommerce and data. Brands should look for “super fans” who expect a role in marketing activities. These “super fans” are highly motivated, deeply engaged in the digital community, and help to build interaction with brands today. Not only do they contribute to sales, but also influence other members within their community, and therefore activate motivations and behaviour that lead to purchase. According to many research reports, there is a stronger influence on consumers when platforms expand and function together.
Lastly, succeeding in the next decade in the V12 will require new skills and a shift of mindset regarding the emerging markets, where the middle-class consumers are key. The rapid growth of middle-class consumers in global society is expected to continue until 2050. At a macro level, the future holds the promise of billions more consumers in the V12 markets of Asia, Africa, and Latin America, who will seek to fulfill their aspirations for a better life, particularly through leveraging technology and connectivity. In such an environment, both traditional and digital companies around the world are trying to transform their business models. Brands must be ready to evolve fast, or lose out in this ever-changing marketplace.
Naoko Ito is planning director at Ogilvy & Mather Japan
This article originally appeared on Campaign Japan: 明日から使える新たな成長市場の攻略法