Airlines

poised to build deeper relationships with consumers

via mobile technology and social networks

United States
In the US the airline industry
is down 41% from last year

Factors contributing to the

distressed industry include a
slowing economy, high fuel
and ticketing, old and less
efficient aircraft and low
demand.

Asia Pacific
APAC carriers are expected to
be the most profitable due to
rapid economic expansion
from China and India.

Dubai has aggressive plans to

host the largest airport in the
world.
Airlines
poised to build deeper relationships with consumers
via mobile technology and social networks

Continuing Trends
Rising Fuel Prices
Demanding Customers
Going Green
Digital Platforms
Automotive slower growth, but renewed vigor and innovative technologies

High and Low Performers Competitive Pressure

BMW tops the list with 13.2%
return
German companies were also
profitable with 9.9% return
Far behind, American companies
averaged 6.1% and the Japanese
attained an average of 2.8%
Market trends will favor
automakers such as GM,
Volkswagen and Hyundai
Japanese automakers will try to
regain lost market share
Predatory pricing will escalate

Slower Growth in 2012

European automotive economy is
expected to shrink by about 2%.

Many projections suggest low

single digit growth rates for the
US and China.
Automotive slower growth, but renewed vigor and innovative technologies

Technology and Mobility

lightweight construction and
innovative alloys
reduced fuel consumption
in-car assistant systems
parking assistance
blind spot avoidance
land-departure warnings
efficient mobility
performance will be influenced
by digital media.
Business Services The year of the business service brand

“Making good on the Strategic Rationale of the Deal”

“Outsource Anything”

“Capability if the new capability”

“IP Advantage”

“The Rise of brand voice”

 Redefining the value proposition
Consumer Packaged Goods for CPG brands

“shoppers now strive to balance

features and benefits against
transparent pricing, enabling
them to feel that their brand
purchases are value-based
choices”
new spin on brand value
“today’s consumers want brands
that not only understand and
meet their needs, bet also
validate their purchase decisions”

revolutionized consumer
experience
online retailers can sell a
virtually limitless array; a global
shift is taking place in the minds
of consumers

consumers question brand

actions and value
“how are my favorite brands
conducting themselves in the
marketplace? where are they
sourcing raw materials? How
socially and environmentally
responsible are they?
Digital helping consumers make everyday choices in the face of big data
“content and product overload
burden the consumer and
paralyze the act of decision-
making, and devalue the produc
t.”
aggregators reduce decision
burden, but limit choices
aggregators reduce data overload
by using behavioral tracking and
relational sorting. Google
narrows our searches based on
popularity.
brands benefit by informing
consumer choice
the need for brands, curators,
editors and trendsetters to inform
and expose choice to the
customer is crucial.
“their value will be welcomed for
lessening the burden of decision-
making and simplifying our
lives.”

aggregators pose another threat

by driving down value and
cutting out the brand or producer
altogether.
Energy Progress and positive change on the horizon
“year-end predictions provide an shared responsibility toward
opportunity to consider the global energy policy
resourcefulness of human
ingenuity to make positive “a crucial element in finding
change a reality.” effective and equitable means to
reduce GHGs while fostering
economic and political stability”
a future deal and a new
fund
the united nations climate change
conference’s goal is to invest
$100B per year to help poor
countries combat the impact of
climate change. this creates an
incentive for energy innovation.
Fast Developing Markets
“the eurozone crisis has finally
worked its way into even the
largest fast developing markets
around the world, bringing with
it telltale signs of slower growth”
“slowdown”
china is slowing quickly, as well
as brazil that is expected to finish
2011 with growth of only 3.2%.
the crisis in Europe was the main
factor for these reviews.
similar situations are playing out
in india, south africa, and other
traditional fast-developing
markets around the world.
should we call them just “developing
markets” now?
reorganization
“reduced growth can give these
countries the chance to
reorganize and make necessary
infrastructure adjustments...
consumers from emerging
classes in fast developing
markets are targeting their
spending power toward items at
the top of their wish lists... brand
name becomes the most
important driver of choice.”
Financial Services a world of challenges sets an uncertain stage

“increased regulation across all

markets is making it harder for
banks to generate profits and
extend sufficient credit into the
system. the ongoing eurozone
crisis is adding tremendous stress
to the financial system.”

loss of trust
the public still blames banks for
taking the world to the brink of
economic meltdown--and the
financial sector has not been able
to rebound.
People want to see that banks
have a positive impact on the
economy. In order to overcome
this loss of trust, banks have to
prove that they are “adding value
to society.”
Food and Beverage selling optimism and accessibility will drive growth

“brands will seek growth in innovative brand extensions

differentiation through the
coming year by projecting a create new opportunities
sense of optimism and purpose in “mcdonalds, starbucks, and other
mature markets while major chains will continue to
simultaneously focusing on innovate by developing new
gaining distribution in FDMs” reasons to visit.. this is an
olympic year and the london
games should prove to be a new
optimism must be coupled high-water mark for integrated
marketing and brand building.”
with a sense of purpose
optimism must include consumer
in the dialogue and ultimately
allow them to participate in
something fulfilling. F&B
marketers use social media and
other media strategies to drive
strong connections with existing
loyalists and new users.. while
demonstrating social
responsibility.
Healthcare will healthcare be the new “green”?

evolving models for brands

and products is healthcare the new “green”?
organizations are now realizing “another trend is the accelerated
that, in leveraging their corporate rate at which companies that
brands, they not only improve once offered only consumer
efficiencies, but also succeed in brands are jumping into the
differentiating their product healthcare space.. these
brands. expansions are emerging as an
important new trend when it
comes to corporate image and
increasing role of medical citizenship.”
diagnostics, devices and
technologies
companies are transforming
diseases - making them more
manageable. players are also
rethinking the role that brand
plays in building relationships
with key consumers.
Hospitality a shift toward value

“the hospitality industry will

continue to move forward fighting homogeneity
cautiously in 2012, focusing on
pockets of growth and making “travelers are putting hotel brands under
measured investments to the microscope, demanding
reinforce guest loyalty and exceptionally proactive service.. travel
enhance differentiation.” to and within china is booming and in
the long-term chinese consumers will
become an increasingly important
segment of the hotel market.
flight to value
from choosing to drive than fly,
saving the weekend for
celebration worthy events, or
cutting corners to meet higher
budgets, value for money is
essential at all price points. for
hoteliers, this means higher guest
expectations.
“hotels are increasing their
emphasis on empowering guests
and giving them control and
personalization in the process.”
Luxury from the economy of luxury to the luxury of economy

“the challenge for luxury brands

will be to prove that they can be luxury defines downturns
resilient in relation to
macroeconomic crashes and the “a true luxury brand - one whose offer is
swings of economic cycles.” really about undying currencies such as
heritage and excellence - may well be
the treasury bond of tomorrow’s
competitive world, yielding the
varying roles for western financial multiples and business
and FDMs continuity that represent the real luxury
europe might be considered the of today’s economy.”
flagship region for these brands,
but not necessarily a
moneymaking one in the short
term
FDMs may provide access and
availability to new customer
segments, driving growth and
performance.
Media consumers win in 2012

“consumers are becoming more

comfortable relying on who wins?
information that is not branded
except by a user’s name or “the consumer wins all around: new
Twitter handle.” opportunities to make money through
user-generated content, more choice in
“recent years have seen an devices and content, and lower prices
incredible proliferation of for those devices and content.”
devices and apps designed for
consumers to experience content
at home, at work, or on the go.”
“as companies clamor for
content, they are eager to build a
network of consumer reporters
around the world to provide a
firsthand look, this means that
consumers will find themselves
in a position to make money by
providing this content.”
Retail it’s about the brand, not about the store
is the concept of “store”
obsolete? “the single most important thing a
now that consumers can shop the retailer can do, even in the era or global
world anytime from anywhere, retailing, is focus on the people and the
the expectation of having every merchandise. great retail brands will
need instantly satisfied is sky- activate consumer engagement
high. opportunities to fit customers’ wants and
needs.”
rethinking size
now, consumers desire for easier
shopping, inviting environments,
and closer locations - not to
mention the impact of
multichannel shopping - is
changing the shape of the store.

backlash and balance

apps have garnered a lot of
attention, but despite all their
promotion, a few retailers
succeeded in developing truly
useful offerings that engage
consumers on an ongoing basis.
Technology tech marches on, led by the consumer

cloud fatigue goodbye, productivity

more and more companies are hello, experience
looking to offload IT systems
form their balance sheets, both at “in 2012, expect to see people seeking
the enterprise level and out tech that delivers compelling
individual user level experiences, not just features and
functionality.”
one word” security
adopting stricter, more-
encompassing security policies
will become a key initiative for
IT departments. living int he
cloud will be tempered by the
fear that comes from keeping
valuable information
Telecommunications more of the same?

“despite the life changing impact

of what telecoms make possible, evolving customer relations
customers are increasingly
ambivalent or unhappy with their “in 2012, some telecoms will begin to
providers. act upon the opportunity to reframe the
customer relationship in ways that drive
both demand and loyalty. overall, one
increasing competition and can most likely expect more of the same
this year. Question is: will any telecom
alliances break from the pack and raise the bar for
an onslaught of competition is the whole industry?”
coming from non-telecom
business combination.
Microsoft, Skype and Nokia, for
example, are undoubtedly setting
themselves us as new ways for
people to connect.
the Google/Motorola partnership
will further propel Google’s
ability to drive new categories of
demand