An introduction to The Behavioural Architects China for
An introduction to The Behavioural Architects China for SHELL Sept 13 th 2017
London, Oxford, Shanghai, Sydney Global insight, research and consultancy Using the latest thinking from the behavioural sciences to help companies better understand influence consumer behaviour Reinvigorating traditional research methodologies alongside pioneering new approaches 1
We are an award winning agency We challenge ourselves to find new ways to unlock behavioural insight and drive action The MRS judges said: “We were impressed by The Behavioural Architects’ ability to communicate a difficult subject in such an engaging and compelling way. It has built a strong business model centred on a specialist area that it is passionate about, and its client testimonials show it has made behavioural economics accessible and actionable. With its strong financials and focus on challenging the norm, The Behavioural Architects stood out as a clear winner. ” 2
TBA global presence and cross-country experience London North America UK & Europe Asia Shanghai Africa Latin America Australasia Sydney 3
Global Team – Expertise from diverse areas (strategy, research, trend, planning) Oxford Intelligence Hub • • Global Chairman WPP Trend Agency TFC Global founder of TBA LONDON CHINA Research & Trends Branding & strategy MD WPP Trend Agency The Futures Company London Brand & strategy China, Europe and Middle East Business consultancy Research MD BCG Boston Previous WPP Qualitative research leader SYDNEY Research & Trends Planning Previous WPP trend research leader Planning Director Ogilvy Sydney 4
Unlocking the power of Behavioural Science!
Behavioural Economics is … A scientific model of human behaviour which acknowledges and embraces the inherent biases and distortions that characterise human judgment and decision making 6
What Behavioural Economics tells us about human behaviour 2. We have different modes of thinking – System One (intuitive, emotional) and System Two (more effortful, deliberate, reasoned) 1. Much of what influences our behaviour is subconscious / below the surface 4. We are subject to a mass of cognitive biases, such as loss aversion, scarcity bias, the herd instinct… 3. We are hugely influenced by the context around us and use anchors, shortcuts and rules of thumb to navigate this context and make decisions 7
How BE guides our approach
BE inspired intelligence, models & methodologies Behavioural models inform and structure our approach Context Model Behavioural Journey Habit Loop Methodologies and tools that deliver inspiring behavioural insight and action 10
1. Context Model: Interrogating consumer context The critical importance of context: where, when & how to look for insight Situational drivers of behaviour in-store, online etc. Brand cues & short cuts shaping consumer behaviour Triggers Barriers Target Consumer Behavioural Journey Behavioural influences in home / other consumption contexts Macro societal trends shaping social norms & behaviour 11
2. Behavioural Journey Model A powerful model to think about existing behaviour and how to challenge it Exploring: actions • thoughts • feelings • triggers • barriers Target Audience Behavioural Journey Behavioural Inflection Points A structure to identify opportunities for brands to connect with and influence behaviour 12
3. Habit Model BE gives us a powerful model to help deconstruct habits: ‘The Habit Loop’ Tells brain to go into automatic mode and which habit to use Individual carries out a behaviour Repeating the behaviour gradually builds up an automatic habit loop They experience a reward and the brain considers whether this loop is worth remembering Understanding this neurological loop can reveal how to create / reinforce habits 13
Our offer TBA Behavioural Analytical Tools: Behavioural Hypotheses Client Application: Consumer Insight TBA Core Intelligence: Global Behavioural Pulse Contextual Mapping Innovation Behavioural Journey Unlocking Habits Brand Strategy Communication Development Behavioural Experts Network 14 Management & Dissemination
Our Primary Clients 15
Recent challenges we have helped our clients with… BRAND POSITIONING RELAUNCH CATEGORY CONVERSION China Lubricant Relaunch strategy Using the Habit Loop model MARKET RELAUNCH CATEGORY INNOVATION Strategic Insight: Emerging Trends and Changing Market
BRAND RELAUNCH STRATEGY Our Challenge China lubricant market is dominated by three international brands. Our client, an international brand, plans to relaunch to overcome the challenge of low brand profile and penetration in fast growing China market. Research was required to fully understand the Lubricant Market Context and Lubricant Decision Journey to help inform business strategy on the optimum target and B 2 C channel for market relaunch and brand communication strategy 17
BRAND RELAUNCH STRATEGY (LUBE) Integrated Methodology… DESKTOP RESEARCH (define market scope, target audience) CAR OWNER QUALITATIVE (Lube consumer decision journey) TRADE QUALITATIVE Workshop Owner & Mechanics (Lube trade context and channel variables) STAKEHOLDER WORKSHOP QUANTIFY (validate B 2 C strategy and trade opportunity, brand, marketing) Integrated analysis to map out brand re-launch strategy including key consumer cohorts, key touch points, communication messages and trade partnership opportunity 18
BRAND RELAUNCH STRATEGY (LUBE) Key Insights and Impact • TRADING UP: consumers select or nudged into higher grade lube (i. e. MNC brands) • Lube Journey shift to CONSUMER-LED (vs. trade-led) and EXPERIENCE-LED (vs. product-led) • BRAND-led is key to consumer lube change decision: short cut to quality, trust and authenticity. • 5 consumer cohorts identified - 2 recommended as optimum (brand switching, lube spend, openness) • Specific tiers and gender dynamic identified and recommended to support brand relaunch strategy. • Potential 020 digital opportunity long-term, but less volume. Bigger volume opportunity identified within traditional trade (e. g. fast emerging ‘Quick Lube’) 19
Recent challenges we have helped our clients with… BRAND POSITIONING RELAUNCH CATEGORY CONVERSION China Lubricant Relaunch strategy Using the Habit Loop model MARKET RELAUNCH CATEGORY INNOVATION Strategic Insight: Emerging Trends and Changing Market
CATEGORY CONVERSION Our Challenge To disrupt the deep rooted habit and convert Hand Dish-wash users to Kitchen spray cleaner for surfaces 21
CATEGORY CONVERSION Our Approach Knowledge Rewind (from past research/business data) Hypothesis Development to identify potential disconnections in the marketing mix and knowledge gap in consumer research Research Design & Execution Habit deep dive/Self Ethno Kitchen cleaning journey Habit disruption Product placement Ethnography/ In-home interviews Interactive Debrief Workshop with internal stakeholders 22
INSIGHTS FROM RESEARCH BUSINESS IMPLICATIONS • Refreshing insights into consumer motivation to category/brand conversion Target Consumer Granular understanding of consumer Habit Loop provided refreshing insight into: • Engagement – brand product cues inspired consumer to engage with a new brand • Reward – how product experience can transform a labouring journey to a rewarding experience of self and family • Repeat – how a positive cycle is created by reinforcing the ‘personal reward’ through product and communication • Four insights territories identified/ developed • Implications to communication and retail activation • TBA led follow-up concept development, concepts were screened, optimized and put into market potential test. 23
CATEGORY CONVERSION VIDEO (1) • CIF – omitted due to large file size 24
CATEGORY CONVERSION VIDEO (2) • CIF – omitted due to large file size 25
Recent challenges we have helped our clients with… BRAND POSITIONING RELAUNCH CATEGORY CONVERSION China Lubricant Relaunch strategy Using the Habit Loop model MARKET RELAUNCH CATEGORY INNOVATION Strategic Insight: Emerging Trends and Changing Market
MARKET RELAUNCH Extensive knowledge and experience working with international players entering / establishing themselves among strong local players – along with top locally grown digital pioneers Success of Amazon International faces grave challenge in China’s uniquely competitive e-market. To drive new momentum, Amazon launched Cross-Border platform 海外� in 2015, amid the thriving landscape with local giants 天猫，京�，网易考拉 … Challenge of the project was to: 1) Drive Amazon differentiation in a consumer relevant way while staying true to the brand 2) Longer term to build Amazon Brand Imperial in cross-border e-Commerce and create more emotional and behavioural traction to drive sales Research Design Consumer pre-task cross-boarder e shopping journey Behavioural disruption Consumer FGD (4 cities) Local and global debrief completed in May. Follow up work in pipeline.
Recent challenges we have helped our clients with… BRAND POSITIONING RELAUNCH CATEGORY CONVERSION China Lubricant Relaunch strategy Using the Habit Loop model MARKET RELAUNCH CATEGORY INNOVATION Strategic Insight: Emerging Trends and Changing Market
CATEGORY INNOVATION Our Challenge Carbonated category has reached a cross road in China. The project challenge is to inform the business 1) if there is a category way out; 2) dimensionalize the opportunity 29
CATEGORY INNOVATION Our Approach Identify the category love through Digital Self Ethnography Explore When and What of the category makes people still ‘linger’ (instead of turning their back on the apparent ‘evil’) Experiment Box: Through playful experiment, to reveal how and what gives permission to the category Co-creation Workshop: Articulate key dimensions of the future innovation opportunity 30
KEY OUTPUT AND IMPACT • Reframe the ‘evil of carbonation’ through category love and make it meaningful by connecting with consumer aspiration • Land the opportunity on key strategic dimensions to consistently deliver to the opportunity • An innovation guardrail to guide all pipeline innovation. 31
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