Landor’s 2011 trends forecast

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Landor’s 2011
trends forecast
Market trends and their
impact on brands

Over the past year, we’ve seen our world grow In the all-inclusive spirit of social media, we asked Trevor Wade is director of digital
smaller and more transparent. People are a broad spectrum of Landor’s experts to comment marketing for Landor Associates and
feeling empowered by social media: breaking on what they expect to see next year. Here, then, editor of Landor’s trends forecast.
news on Twitter before it reaches major media are our predictions for 2011 on these timely topics:
outlets, boldly critiquing products and experi-
ences online, trusting word-of-mouth over • The search for purpose
traditional marketing. Demonstrating sustain- • Design
able practices has become the cost of entry for • Social media
businesses and is no longer a differentiator in • Shopping behavior
the marketplace. And the good a company does • Packaging
within and for its community is beginning to • Sustainability
have an impact on its bottom line. • Color direction
• The petroleum industry
In spite of a sobered financial consciousness, people • The energy industry
are ready to be surprised and delighted again — not • Marketing in the Middle East
by the flashy or the fancy, but by authentic brand • Food
stories and personal connections. • The globalization of Asian brands
• Interactive entertainment
As public awareness of marketing, brands, and • Brand management
design continues to grow, those in the business of
selling have to work harder and smarter to earn the
money consumers are spending so carefully. What
will this mean for brands in 2011?

Landor Associates 1
 The search for purpose
by Scott Osman
Scott Osman is global director of
corporate social responsibility in the New
York office of Landor Associates. Scott’s
article “Citizenship branding” is available
on landor.com.
Method has enjoyed great success with
a business model that strives to develop
products using safe, sustainable materials
and responsible manufacturing practices.
2 Landor’s 2011 trends forecast
What can we expect to see in 2011?
Social purpose as a business value is here to stay,
and in 2011 we can expect even more companies
to acknowledge its importance. Brands will work
to identify the ways they can help society. Success
in the marketplace will require that companies be
sustainable, committed, and authentic.
Studies such as Goodpurpose, by Edelman,
and Corporate Purpose Impact 2010 from Burson-
Marsteller indicate overwhelmingly that when
making decisions about what to buy, consumers
now look at how a company operates, where its
products come from and how they are made, and
how it treats its employees. These factors may
not drive every purchase, but more and more they
are impacting the bottom line. This fundamental
shift in consumer behavior is unlikely to reverse.
What are the implications of these trends
for brands?
As more “good” goods enter the market, brands
will have to clearly define their social purpose and
make it central to their business. Many companies
© method
have already aligned their corporate social responsi-
bility practices with their brand management and
communications teams — a big shift in corporate
structure — and we can expect more of this trend.
Once they learn each other’s languages, these
disparate departments will benefit greatly from
sharing ideas and resources. This internal reorgani-
zation will create value for companies at the same
time it supports their social contributions.
Which brands will stand out?
Brands that find a way to express their values and
merge social purpose with brand promise will stand
out. Almost all companies on the Forbes Global 2000
list are currently making significant social contribu-
tions, although they may not be communicating
this to the public. Making these actions known
will be just as important as espousing the values
behind them.
In low-engagement categories, social purpose
provides a golden opportunity to create passionate,
relevant differentiation. Look for purpose-driven
breakout brands to emerge in the financial service,
airline, education, and energy categories. Companies
such as Method have inspired employees and
captured the imagination of consumers with its
naturally derived, biodegradable household cleaners.
Studies show that CEOs are eager for their compa-
nies to have purpose and that employees want to
work for good companies. Now it’s time for middle
managers, those most responsible for implementa-
tion, to climb aboard.
The burning question for 2011
Will middle management recognize and act
on the importance of social purpose?
Trends in design
by Paul Owen
What can we expect to see in 2011?
Innovation, influence marketing, and customer
experience were the business buzzwords of 2010.
Consumers no longer believe the smoke and mirrors
of traditional marketing. Their trust must be earned
on a daily basis. Never before has business collabo-
rated so openly with consumers. We’ve learned that
we can’t be smart, creative, or innovative without
sharing. And the early days of the twenty-first century
have provided an explosion of technological tools
to optimize collaboration.
It’s clear that the rules of brand design are funda-
mentally changing. Success no longer depends
on consistency and adherence to strict brand
guidelines, but on open, flexible, and innovative
experience design that allows for nimble navigation
across changing marketplaces. There’s a new
mantra for design:
Share=design=delight
Sharing leads to ideas. Ideas facilitate design, and
design transforms needs into demand. Design is the
process that realizes the potential in collaboration.
Design provides the divergent exploration of a shared
thought and then the rigorous, convergent focus to
deliver something useful or meaningful—and if it’s
spot on, something absolutely delightful.
What are the implications of these trends?
Design is having a positive effect on business
processes. As more and more companies realize
that their Six Sigma processes aren’t giving them
sought-after results, they are turning to design
thinking to uncover more meaningful solutions.
Corporate responsibility will play a much larger role
as many market-leading brands realign their business
strategies to values over value. With this growing
conscience comes the responsibility for design to
deliver sustainable solutions that focus on the right
balance of ethics, form, and function. Poor design
has ended up in enough landfills.
Online design is dropping flash, splash, and animated
extras. With the rise of mobile connectivity, the power
of functional, light-interface designs that optimize Paul Owen is executive creative director
content navigation will grow on all screen-based in the New York office of Landor Associates.
platforms. Novelty plays, such as invisible logos, Paul’s work has been recognized interna-
user-generated logos, and logos as containers, tionally with design awards including the
have probably had their day, too. D&AD Pencil, PromaxBDA (gold and silver),
One Show (gold), and a special accredita-
Which brands will stand out? tion from the Art Directors Club, New York.
The buzzwords of 2011? Share, design, delight.
Next year, I guarantee, the big brand stories will
be developed around an ethical purpose through
a design-led, collaborative process. Here are four
stories I’m keeping my eye on:
• Redesigned license laws for sharing. Anything
produced under Creative Commons license
will be worth following. For more information:
creativecommons.org
• Simple functional interface design leads, as
proximity networking is set to go commercial ABOVE: New license laws from Creative
in 2011. For example: foursquare.com Commons are changing the way designers
work and share ideas.
• Content is king. The shape of TV will radically
shift next year. Smaller personalized content BELOW: Location-based networking presents
aggregators are the ones to watch. For new opportunities for interface design.
example: devour.com
• Ethical design thinking and business leadership
from “B corporations”—defined as socially
responsible businesses that are required to
consider the interests of societal stakeholders
such as employees, communities, and the
environment. For more information:
bcorporation.net
Awareness of design among the general population
is at an all-time high. We will see increased interaction
between designers and consumers in the coming year.
Tropicana and the Gap are just the beginning. Smart
brands, knowing that design is a major means of
connecting with audiences, will introduce new
elements as adroitly as possible.
— Sean King, design director, corporate
communications
Landor Associates 3
Location-based services will move toward
tailoring suggestions, information, and offers
to a user’s current whereabouts for a highly
personalized and rewarding digital experience.

4 Landor’s 2011 trends forecast

Trends in social media
by Alex Do
What can we expect to see in 2011?
Curated content: In 2011, social network users
will become more discriminating about the content
in their streams. Nonstop content and promotions
from brands can be overwhelming and annoying;
users are starting to hide brand updates, filter
friends, and prioritize content.
Social commerce and group buying: Tapping
friends for recommendations, posting deals on
a network, and following the picks of celebrities can
make shopping easier and more enjoyable. People
are more willing to share purchase information if
there’s something it in for them, such as discounts,
trendsetter status, or the cool factor.
Group buying through sites such as Groupon,
LivingSocial, YouSwoop, and Scoutmob will
continue to thrive in 2011. New players include
Wow, The Knot, and Walmart’s CrowdSaver, set
to offer an 18 percent discount on plasma TVs
when the product gets more than 5,000 “likes.”
Niche markets: In 2010 location-based services
including Foursquare, Gowalla, and Facebook
Places picked up users and garnered a lot of media
attention. But many users tired of checking in
to places without a payoff beyond earning badges
or becoming “mayor.” In 2011 location-based
services will move toward tailoring suggestions,
information, and offers to a user’s current where-
abouts for a highly personalized and rewarding
digital experience.
Xtify’s geo-location technology will allow brands
to target their users with messages and calls to
action specific to where they are and where they’ve
been. Shopkick describes itself as the first mobile
app to reward consumers simply for walking into
a store and scanning product bar codes with their
phones. Best Buy, American Eagle Outfitters,
Sports Authority, and Facebook have already
adopted Shopkick. Other platforms such as
Foodspotting appeal to the foodie niche.
What are the implications of these trends Alex Do is director of digital branding in the
for brands? San Francisco office of Landor Associates.
His article about open-source branding is
Earn a place in the stream. Brands will have to available on landor.com.
earn their way into people’s streams with meaningful
content and, better yet, rewards. If their content
is truly compelling, it’ll get noticed and “liked,”
generating comments and re-tweets. Smart brand
managers will focus on the story line, engaging
customers in relevant dialogue and providing
platforms for customer expression.
Reimagine the storefront. Brands will need to
augment and extend their e-commerce offerings.
More brands and merchants will develop shopping
apps inside existing social platforms. Delta Air
Lines now lets travelers book flights from its
Facebook fan page.
Redesign the mobile experience. More and more
interaction will take place via mobile devices. The
mobile phone design interface needs to accommo-
date this shift. Mobile use of social media alters
how people interact with platforms and the way
that brands engage customers.
Social media provides an enormous opportunity
to craft brand voice and add value by linking brands
to the right people at the right time, with messages
they will want to share.
— Melissa Parsey, senior client manager,
New York office
Expect group-buying sites such as
Groupon (featured above) to become
more popular.
Landor Associates 5
 Trends in shopping behavior
by John Matthews

John Matthews is director of strategy
in the Sydney office of Landor Associates.
His current article, “One playful idea,”
is available on landor.com.
Consumers will seek out ruggedness,
longevity, and old-fashioned materials, such
as those found in Nike’s Air Royal Harris
Tweed sneakers.
We all hope that the global recovery will gain
strength in 2011. Here in Australia, online sales figures recession was that broad blur of “masstige” and
show that strong economies are looking to weaker
ones (in our case, to America) as a fertile source of
bargains. Consumers learned their lesson from the
financial crisis and will proceed with caution. Their
behavior is likely to remain volatile, fluctuating
between bursts of optimism and pessimism.
Green versus lean: Sustainable consumption
was already growing prior to the economic crisis.
But in 2011 we’ll see a slight shift as consumers buy
fewer new products, opting instead for refills and
recycling. Rather than paying a premium for green,
shoppers will demand that all brands become
more ecofriendly.
Real places: Country-of-origin brands are likely
to become a greater force in retail. Origins will
be a big part of food retailing; traceability down
the length of the supply chain will give brands
an opportunity to differentiate. Wherever they
can, brands will connect us to the source.
Real value: The retail sector rocked most by the
“new luxury.” Suddenly, paying premium prices for
average products with flashy logos made consumers
look dumb rather than rich. In 2011 shoppers
will search for ruggedness, longevity, reliability,
and real ingredients. Using old-fashioned materials
in apparel represents value and emotional security
in a very tangible way, as seen in Nike’s Harris
Tweed sneakers.
Real stories: At the same time that shoppers
found their security shaken and their disposable
income decimated, they were also bombarded with
novelty. The movement of brands into digital and
social media generated odd, attention-seeking
strategies that seemed to have little or no link to
what products actually did, such as the Vegemite
variant rechristened iSnack 2.0. (Don’t expect
to find it on shelves today!) Brands must first look
at the functionality that differentiates them, then
express their essence through authentic stories
and ideas that ring true with customers.

The burning question for 2011: Will shoppers return

to their old ways, or will the hangover of recession
create long-term changes in buying behavior?

Expect to see brands trying disruption tactics

to combat “autopilot shopping,” especially for
low-involvement fast-moving consumer goods.
— Fiona Atzler, client director, New York office

More consumers will shift away from traditional

retail toward digital retailing.
— Robin Thompson, brand strategist,
New York office

Although private label brands are gaining popularity

in the U.S., they have not approached the level of
acceptance seen in Europe. In 2011, U.S. retailers
will continue to borrow private label strategies from
progressive retailers from across the pond such
as Tesco and Marks & Spencer.
— Samar Birwadker, senior insights manager,
San Francisco office

6 Landor’s 2011 trends forecast

Trends in packaging
by Wendy Hunt and Anne Reid

In 2011, expect packaging to become more sustain- in areas affected by disaster. In New Orleans Wendy Hunt is client director in the Cincinnati
able, incorporate recent technological advances, following Hurricane Katrina, the Procter & Gamble- office of Landor Associates, working with
and feed into consumers’ desire for their purchases sponsored initiative washed almost 14,000 loads of multiple Procter & Gamble brands.
to serve a greater purpose. laundry for 11,000 families.
Anne Reid is senior director of design
Bells and whistles: Modern consumers are The burning question for 2011 realization in the Cincinnati office of Landor
shopping experts who spend mere seconds making Associates. She has a particular interest
purchase decisions. Especially in supermarkets, The challenge will be finding ways to do more in sustainable packaging.
packaging must work hard to tempt shoppers into with less — reducing waste, using fewer natural
trying new products. Revolutionary technologies resources, and cutting down transport distance— With contributions by
such as thin film and printed batteries can have while using packaging to communicate brand Anna Singh, client manager, Cincinnati office
a phenomenal impact at the first moment of truth, promise and the actions that back it up.
adding light, sound, and movement to packaging.
Sound chips can deliver promotional messages
from store shelves; paper-thin video screens can
demonstrate product use. The first brands to adopt The Tide Loads of Hope program gives
these cutting-edge strategies are sure to make back to the community in an on-brand way
a splash in the crowded marketplace. by providing laundry services to families
affected by disaster.
Reusable: After noticing the product (first moment
of truth) and reading the product label (second),
there is now a third moment of truth for consumers:
reusing packaging. More brands will make this
possible, banking on the cool factor to extend brand
message beyond the life of the product. Burt’s Bees,
whose natural body care line already appeals to
environmentally conscious customers, now provides
reusable carrying cases for its lip balm.

Sustainable: More companies will pledge to lessen

their impact on the environment and look for
innovative ways to do so. Paper Mate recently
introduced biodegradable pens with compostable
outer shells that break down into organic matter
within a year. Following a more traditional route,
Kraft Foods plans to reduce its carbon footprint
in 2011 by decreasing waste from its plants, elimin-
ating 150 million pounds of packaging material,
and cutting CO2 emissions by 25 percent.

Purposeful: To remain relevant in 2011, brands

must stand for something and align their brand
promise with the good they do — and convey
both through their packaging. The Tide Loads
of Hope program and its corresponding limited-
edition detergent give back to the community
in an on-brand way: by providing laundry facilities

Landor Associates 7
 More and more consumers look at facts
and figures about product ingredients and
environmental impact before they buy.

8 Landor’s 2011 trends forecast

Trends in sustainability
by Russ Meyer

What can we expect to see in 2011?
As we continue to emerge from the worst economic
conditions since the Great Depression, consumers
will remain shell-shocked. Perhaps the greatest
advance in sustainability over the last three years
has been the global decline in consumption. When
consumers do buy, they are more thoughtful,
considering not just where and how products are
created, but whether they really need them at all.
I believe this is the beginning of a long-term shift
in purchase behavior, moving from wanton,
willy-nilly buying sprees into a more considered
approach to consumption.
green brands are niche players such as Tom’s of Russ Meyer is chief strategy officer
Maine and Seventh Generation. Landor’s annual of Landor Associates. His article “Five
ImagePower® Green Brands Survey shows that reasons not to have a green brand (and
consumers think of corporate brands such as why those reasons are wrong)” is available
Procter & Gamble, Unilever, Walmart, and General on landor.com.
Electric as more sustainable than their product
brands. The challenge for corporate brands is to find
ways of extending this green halo onto their product
and service brands.
Electric cars are poised for plenty of press attention
in 2011, a significant year for the car market, when
three electric cars will all be available in the United
States: Chevy Volt, Nissan Leaf, and Tesla.

What is the implication of this for brands? The burning question for 2011

Brands have two challenges. The first is to convince How can we achieve a balance between reducing
consumers that their product or service will make consumption of resources and encouraging
a noticeable difference in consumers’ lives and consumers to purchase sustainable products?
that they are worthy of being purchased. They
must make their functional benefits overt and
apparent. Consumers will no longer be willing to
try out sustainable products just for their green-
ness — brands must differentiate themselves
in other ways, too. In these days of cautious
consumerism, products have to prove superior
functionality or risk remaining on the shelf.

The second challenge for sustainable brands is

to be specific about their green claims. Gone are
the days of fuzzy, friendly labels like “natural.”
Since 2005, we’ve seen a major increase in
consumers’ understanding of sustainability. Smart
consumers now look for facts and figures detailing
which chemicals their cleaning products contain,
how much energy is used to create and transport
a piece of furniture, and the true carbon footprint
of a pair of sneakers. If brands can’t provide this
hard data, consumers will turn to sources like the
GoodGuide and other champions of transparency
to learn the truth.

Which brands will stand out?

Despite the ongoing interest in sustainability,

few mainstream consumer brands have smoothly
incorporated this attribute into their brand promise
and image. Clorox Green Works aside, the best-known

Landor Associates 9
 Trends in color direction
by Jack Bredenfoerder

Jack Bredenfoerder is design director in
the Cincinnati office of Landor Associates.
He is internationally recognized as a color
authority and served as president of the
Color Marketing Group in 2007 and 2008.
Color trends are fleeting and ephemeral; color
connections, told through compelling design stories
that speak to the consumer’s heart, mind, and soul,
are the future of color direction.
What can we expect to see in 2011?
Finally, purples will move away from recent
mauve hues and come alive with the influence
of fire. They are like the colors seen deep under
smoldering coals — a bright glimpse at the joy
of the future. Fire will also pull navy into a deep,
royal blue purple.

The color design story for 2011 is an inspiring tale
of fire and passion. The world is in a period of
accelerated change — a fire building across our
globe as we move in a new direction with renewed
energy. Fiery red passion is surfacing as the main
concept that will fuel the colors and design ideas
of 2011.
The coming year will challenge brands to set
themselves on fire with passion. The brands that
come alive with honest, intense warmth and
understanding will succeed in attracting customers
to their tribal fire.

In India, fire is seen as a cleanser and purifier;

it prepares the world for new beginnings. Fire
clears away the clutter and brings the possibility
of a phoenix to rise from its ashes. A single flame
is a symbol of hope; a bonfire is a community
celebration of commitment to achieving new goals.

Fire-inspired reds, oranges, and ambers are the

fireworks of 2011. These hot divas will burst forth
with the power, energy, and passion necessary
to bring fresh excitement.

Lighter golden browns represent the natural

comforting luxuries enjoyed by the fire. Think of
cashmere, almonds, fine scotch, and aged tobacco.

The long-term global blue cycle will continue to

develop. Bright, clean blues still symbolize hope
for a unified planet. But in 2011, the blues will be
more aquatic; their watery presence will balance
the fire colors.

Greens will be layered and reminiscent of the forest

floor after firewood is collected. In this spectrum
of soft hues we find natural, new beginnings.

Charcoal, smoke, and ash will inspire soft

whispers of color. Graphite black will celebrate
the new Nobel Prize-winning compound graphene,
a super-strong but light carbon that is expected
to change the future of humankind.

10 Landor’s 2011 trends forecast

Landor 2011 color direction
Passionate fire
Fire Comforting luxuries

Fire PANTONE® 1788 C

Red hot PANTONE 193 C

Spark PANTONE 213 C

Burn baby burn PANTONE 207 C

Candlelight PANTONE 7402 C

Glow PANTONE 7409 C

© 2010 Landor Associates
Warmth PANTONE 7413 C

Kiss PANTONE 208 C

© 2010 Getty Images

Cuddle PANTONE 222 C

Water planet Forest floor Wine cork PANTONE 7500 C

Camel hair PANTONE 720 C

Tobacco PANTONE 7510 C

Scotch PANTONE 8581 C

Smoked almond PANTONE 724 C

Reflection PANTONE 304 C

Mist PANTONE 535 C

H2 OMG! PANTONE 312 C

Oceanic PANTONE 3135 C

Blue planet PANTONE 653 C

Deepwater PANTONE 654 C

Blue lichen PANTONE 317 C

© 2010 Getty Images

Lamb ears PANTONE 7464 C

© 2010 Landor Associates

New leaf PANTONE 367 C

Sprout PANTONE 7494 C

Smoke and ash Glowing embers Moss PANTONE 7495 C

Frog PANTONE 574 C

White ash PANTONE Warm Gray 1 C

Wisp PANTONE 7542 C

Fire brick PANTONE 7535 C

Smoke cloud PANTONE 7530 C

Organic ash PANTONE 7538 C

Graphene PANTONE 8423 C

Charcoal PANTONE 7545 C

Burnout PANTONE 7547 C

Warm thoughts PANTONE 708 C

Passion PANTONE 232 C

© 2010 Getty Images
Ember PANTONE 241 C

© 2010 Landor Associates Imagination PANTONE 2613 C

Colors by Jack Bredenfoerder Forecast color information provided by Landor. PANTONE® Colors displayed may not
© 2010 Landor Associates match PANTONE-identified standards. Consult current PANTONE Color Publications for
accurate color. Pantone trademarks and copyrights are the property of, and are used with
the written permission of, Pantone LLC. Portions © Pantone LLC, 2010. All rights reserved.

Landor Associates 11
 Trends in the petroleum industry
by Andrew Welch
Andrew Welch is executive director in the
London office of Landor Associates. His
recent article on transforming the customer
experience is available on landor.com.
Heavy machinery removes oil-contaminated
sands following the Macondo disaster.
12 Landor’s 2011 trends forecast
The Macondo well disaster in the Gulf of Mexico
has been well documented, as has the public
outcry in its wake. What remains to be seen is
the impact it will have on oil company operations
in the future.
Rising costs, risks . . . and rewards: Access to oil
reserves remains difficult and treacherous, whether
they’re deep under the ocean bed or in the equally
inaccessible terrains of Russia and the Middle East.
There’s been talk of requiring oil companies to
set up prefunded contingency plans to deal with
potential disasters. Even so, there will still be big
money to be made in Big Oil. Emerging economies
have an insatiable appetite for oil; China’s use
alone is up 20 percent this year.
Eye of the storm: Petroleum companies will
also face unrelenting public scrutiny and renewed
hostility. The debate over Big Oil and the environ-
ment will be joined by other controversial issues
such as governmental affiliations, operating licenses,
corporate culture, transparency, and communication.
Safety first, second, and third: Operational
integrity and safety, always central issues for
petroleum companies, will become the primary
factors in all commercial, operational, and strategic
decisions. In the future, a petroleum company’s
success may be determined less by the conventional
metrics of profit, market share, and capital invest-
ment than by the nontraditional ones of employee
behavior and corporate responsibility.
Reassessing the value of values: Big Oil company
culture, often the amalgam of disparate acquisitions
and inherited operating principles, will find that
lip service to brand values is no longer adequate.
A clear, uncompromising set of standards for action
and accountability will be required both of oil
companies and of the local partners that operate
on their behalf.
Unified but not uniform: Centralized, monolithic
operations may give way to a more agile and locally
relevant approach, unified by a common purpose.
As many natural energy resources are found in
challenging environments, international oil compa-
nies will succeed only by building high-quality,
durable relationships with local governments and
business partners. This will be especially true in
emerging economies where officials are unlikely
to cede control to oil companies’ American or
European headquarters.
Small is beautiful: Going forward, combining local
sensitivity and flexible management with global
know-how and capital will be the preferred operating
model for oil companies. Perhaps in 2011 Big Oil will
begin to think, act, and function more like Smaller Oil.
Trends in the energy industry
by Ian Wood

The consumer energy business is facing a rare
challenge — and opportunity. In order to reduce
carbon output, a number of governments across
the globe are mandating the placement of smart
meters in all households. In the United Kingdom
alone, that amounts to about 20 million homes.
Smart meters, like the non-smart variety, measure
energy usage. But they are also capable of communi-
cating with an energy supplier and with other
household devices. The information is delivered in
real time and can be analyzed in a multitude of ways
that have been impossible until now: usage by day,
season, time, or appliance, making it easier to
diagnose problems within a house and much more.
even more challenging, they will be competing Ian Wood is executive director in the
against some of the most powerful, stretchable London office of Landor Associates. His
brands in the world. article “Don’t chicken out of innovation”
is available on landor.com.
The winner, however, becomes the gatekeeper to
all energy devices in consumers’ homes, and the
prize is massive: constant, free brand communica-
tion and reinforcement.
The burning question for 2011
Will energy companies be so consumed with the
massive undertaking of installing millions of smart
meters that they miss the opportunity to communi-
cate with residents?

The smart meter, with its ability to manage energy

remotely, brings us one step closer to making the
digital home a reality. Google and PayPal globally,
and Sky, O2, and Tesco in the United Kingdom,
envision a residence with a single device or system
that controls heating, lighting, programming,
security, diagnosis, and entertainment. These brands
are competing to own the heart of this new home. O2 is making a bid to own the heart of
the home with its O2 Joggler—you can
Therein lies the threat and opportunity for energy watch videos, check the weather, text
companies: Smart meters have displays that sit on friends, and more.
kitchen countertops or in living rooms. They are the
means by which people will monitor and eventually
control the heating and lighting in their homes. As
a marketer, wouldn’t you love to have access to
a wireless, Internet-enabled, updatable touch screen
to communicate with your customers — and, better
yet, have it paid for by the government?

Right now, energy brands enjoy little equity or

loyalty from consumers. They are best liked when
they aren’t attracting attention. If they want to play
a larger role in the development of the digital home,
they will have to put significant effort into areas
familiar to marketers: relationship building, innova-
tion, customer service, delight and surprise, and
value adding. Not only is this new territory for most
energy brands to navigate, it will be desperately
difficult for them to succeed in wooing customers,
given the low base they start from. To make matters

Landor Associates 13
 Marketing trends in the Middle East
by Aneesh Sharma
Aneesh Sharma is brand strategist in
the Dubai office of Landor Associates.
He writes about brands and marketing
in the Middle East for Landor’s blog.
The Dubai supermarket Aswaaq offers
a sophisticated and extensive variety
of products but has the feel of a local
corner store.
14 Landor’s 2011 trends forecast
Although growth may not be as rapid and unbridled
as in past years, the Middle East, with its half
a billion consumers, is still a thriving market. Great
opportunities lie not only in Saudi Arabia but also
in Syria, Iraq, and North Africa, especially Libya
and Algeria.
What can we expect to see in 2011?
Woman power: Women exercise considerable
economic clout in the Arab world, both as members
of the workforce and as business owners in their
own right. It is estimated that women control more
than 40 percent of the private wealth in Saudi
Arabia, the region’s largest economy. Expect to
see women-owned businesses grow in size and
expand their reach across the Middle East.
Regional pride: Regional brands that couple
cultural relevance with global brand stature, high
quality, and unique product attributes will continue
to thrive. Telecom companies Du in the UAE and
the Kuwait-based Zain, as well as Aramex (the
Jordanian version of FedEx), are giving global
players a run for their money causing them to
reexamine their regional strategies.
What are the implications of these trends
for brands?
Expect more brands to directly address women’s
issues and cater to their needs, particularly in the
health and fitness, financial service, and retail
industries. Mainstream brands will either spin
off women’s divisions or develop completely new
brands managed by and for Middle Eastern women.
Local brands will continue to grow in 2011 and
move into nearby markets that Western brands
consider too risky politically.
Which brands will stand out?
Global brands that have successfully localized
and local brands that exude global confidence
will stand out in the year to come.
France 24: This relatively new kid on the media
block is growing by leaps and bounds in the Middle
East, mainly because of its push to regionalize
content both linguistically and editorially.
Homegrown news sources Al Arabiya and Al
Jazeera will have to watch out.
Air Arabia: The UAE-based budget carrier now
operates three hubs, in Sharjah, Alexandria, and
Casablanca, which connect regional cities to each
other and to destinations in Europe, North Africa,
Central Asia, and the Indian subcontinent.
The burning question for 2011
How will global brands prove their credentials to
Middle Eastern consumers — with new products,
brands, and tactics? Or simply by acquiring
regional companies?
Trends in food
by Kristin James

What can we expect to see in 2011?
The value shift currently under way will mean major
growth in the farm-to-table movement — especially
in the United States where consumers have long
felt unconnected to the source of their food. In
the wake of the financial crisis, people want simple,
authentic experiences, and they want to under-
stand how their choices impact their immediate
communities. It is very satisfying to buy locally
and feel that you know the person who grew your
lettuce or raised your beef.
Food has always been about family and community;
this is even more true today. Look for a surge in
community and urban gardening and for retailers
pushing locally grown products.
The burning question for 2011 Kristin James is senior marketing manager
in the New York office of Landor Associates.
How will quick-service restaurants adapt to She is a graduate of the Institute of Culinary
patrons who are concerned about where and Education’s Pastry and Baking Arts program.
how food is sourced and its impact on the
immediate community?
We will see increased transparency about food
ingredients in the coming year. New York has banned
trans fats in restaurant food and requires chain
restaurants to list calorie counts. Smart food brands
will make this information available everywhere, not
just where it’s mandated by law.
— Sean King, design director, corporate
communications

What are the implications of these trends

for brands?
Walmart’s direct farm program in China is
Brands will have to build in emotional meaning giving millions of people access to quality,
beyond convenience or trend-driven claims. “Value” locally grown food.
no longer means price point, but refers to how
products benefit customers and improve their lives.

Not everyone has access to a good farmers’ market

or garden, but the underlying drivers for authenticity
and connection are something big brands can take
on. Walmart is doubling, and in some cases tripling,
the amount of locally sourced food it sells, and will
be stricter about how that food is grown. Given
Walmart’s size, ubiquity, and pricing, that means
many more people will have access to quality,
locally grown food.

Which brands will stand out?

Brands that connect and feel human will get

noticed. Marketers should understand that people
are still very intimidated by food and cooking, in
spite of (or maybe because of) the unprecedented
amount of information available. The food industry
could learn from new world winemakers, who
have taken a very intellectual industry and found
a way to connect with customers through down-
to-earth brand stories.

Landor Associates 15
 The globalization of Asian brands
by Monica Au and Lulu Raghavan
Monica Au is client managing director in
the Hong Kong office of Landor Associates.
She writes regularly about consumer
insights and branding in China.
Lulu Raghavan is country director in the
Mumbai office of Landor Associates. She
has written many articles including a regular
column for Hotel Management Asia.
With contributions by
Melissa Parsey, senior client manager,
New York office
Tsingtao beer is one of the first globally
recognized Chinese brands.
16 Landor’s 2011 trends forecast
Monica Au on China Meanwhile, many international brands are trying
to adapt to local Chinese markets. As local brands
What can we expect to see in 2011? become more prominent, international brands’
competitive edge — and with it, their justification
Consumers around the world will lower their for demanding premium prices — will further erode.
resistance to Chinese brands. Buying less
expensive products is a smart choice these days, On the road: Looking beyond Japan and Korea,
and the worldwide economic downturn will allow the world will turn to China to provide the next
Chinese brands that offer reasonable quality at great value-added cars. At the 2009 motor show
reasonable prices to expand into global markets. in Shanghai, 20 local brands launched alternative
energy cars that drew considerable attention;
China will also have plenty of opportunity to the government sees this as a major source of
learn from the world’s best business practices, investment for the future. Great Wall Motors is
as international firms continue to bring branding already selling in Australia, Chery is running
knowledge, R&D capabilities, technologies, and on the road in Central and South America, and
global management models with them into “the Geely made headlines when it purchased Ford’s
Middle Kingdom.” China’s vast domestic market Swedish Volvo unit.
will become more sophisticated, providing
a training ground for local brands to experiment The burning question for 2011
and excel in their fields before going global.
How will Chinese brands manage the transition
Made in China: Local brands adopting the look to global markets?
and feel of international giants have had consider-
able success in China, giving them more money
to invest in branding. They also move at lightning
speed, quick to pick up where global competitors
fall short. Brands such as Nike 360 command such
status that it was little surprise to see local sports
brand 361 Degrees enter the market. Mimicking Nike’s
success, 361 Degrees rocketed from a small-scale
local operation to one of the largest sports brands
in the market over the past eight years.
Lulu Raghavan on India
What can we expect to see in 2011?
Mergers and acquisitions: Indian companies
have found that purchasing established interna-
tional brands puts them on the fast track to global
expansion. Tata’s acquisition of Jaguar Land Rover,
Wipro Consumer Care’s purchase of Yardley’s Asian
assets, and Megha Mittal’s takeover of Escada are
all recent examples of successful buyouts. As India
Inc.’s pride and confidence in its performance
increase, expect to see more such acquisitions.
Homegrown appeal: Global interest in Indian
design, craftsmanship, cuisine, and holistic lifestyles
will give homegrown brands a boost. Brands already
established locally, such as Hidesign (leather
accessories), Sula (wine), Ganjam (high-end jewelry),
and Shahnaz Husain (ayurvedic beauty care), will
focus on getting a foothold in European markets
to spearhead international growth.
The “frugal” or “reverse” style of innovation pioneered Tata’s innovative Nano car will change
in India reduces product price to its lowest possible the way thousands of middle-class
level, presenting a real threat to Western companies families in India get around.
with much higher costs. Especially in countries
where per capita income averages far below that
of the United States, this puts goods within reach
of many more local and global consumers.
Tata’s Swach water purifier won the global ICIS
award in 2010 for most innovative product. Tata
Nano, “the people’s car,” will change mobility
patterns for thousands of middle-class families
in the region and beyond, and D.light’s innovative
products provide high-quality, reliable electricity
solutions for the home.
The burning question for 2011
Do Indian companies have the global management
expertise to make their brands profitable in
overseas markets?

Purposeful innovation: The Boston Consulting

Group’s Innovation 2010 study suggests that mature
economies’ once unquestioned dominance in
innovation is fading and India, China, and Brazil
are poised to take over. The number of Indian
companies seen as top innovators is rising while
the number of American companies is declining.
What’s more, Indian brands are additionally showing
the world how social and corporate responsibility
can be deeply embedded in a business approach.

Landor Associates 17
 Trends in interactive entertainment
by Frank Vial
Frank Vial is strategy director in the
San Francisco office of Landor Associates.
Frank writes regularly for Landor’s blog
and his article “A second honeymoon:
Rekindling the romance with the Chinese
consumer” is available on landor.com.
With contributions by
Chris Pike, knowledge sharing applications
developer; Sean King, design director of
corporate communications; and Aaron
Burghard, designer
The new Xbox Kinect bypasses a controller
and uses motion-sensing technology to
make games more active and appealing
to the whole family.
18 Landor’s 2011 trends forecast
Interactive entertainment looks very different today
than it did 10 years ago due to the spiraling cost
of producing games. The industry has gone through
a period of contraction, with a small number of
publishers — Electronic Arts, Activision, and
Ubisoft — bringing development houses on board.
By minimizing risk and maximizing shareholder
value, these companies have also effectively stifled
creativity among blockbuster titles. They expect
to lose money (or earn very little) on the majority
of their releases, but make up for it through huge
margins on sequels to their most popular games.
If a niche title is an unexpected hit, publishers are
quick to turn it into a series.
What can we expect to see in 2011?
Always on: Gaming will become an always-on,
always-connected community. Expect Facebook
to build its gaming capabilities, while gaming
companies create their own social networks.
Digital delivery: Game companies will shift
their delivery from one-time retail transactions
to ongoing digital relationships. Alternative business
models — such as offering games for
free, but selling upgrades, extras, and virtual
goods — will attract new gamers and generate
volume-based revenue.
Virtual possibilities: Expect gaming to become
an immersive, full-sensory experience, moving
from narrow, linear story lines to expansive universes
with infinite possibilities. Platforms will
be made increasingly open source to allow fans to
develop richer gaming worlds. Gesture recognition,
force feedback technology, and augmented reality
games will go mainstream.
Mainstream audience: The definition of “gamer”
will broaden to include both genders and all ages.
Nintendo’s Wii, which encourages active play and
interactivity, opened the door to the family living
room; its handheld DS is marketed primarily as
a teaching toy and boasts a line of tutoring games for
kids. And the Xbox Kinect doesn’t require
a controller at all, using motion-sensing technology
to make games even more active and appeal to
a broader range of interests than ever.
Which brands will stand out?
Category leader Electronic Arts will continue to
push interactive entertainment in sports, fitness,
education, and social gaming.
Disney will use its acquisition of Playdom to push
Disney, ESPN, and potentially Touchstone content
into social gaming. Startup Zynga will continue
to expand its portfolio.
Leading consumer brands such as PepsiCo, and
perhaps even business-to-business brands like
IBM, will explore interactive edutainment as a way
to connect with customers.
The burning question for 2011
How can gaming companies remain profitable
while expanding their audiences and shifting
to a direct-to-consumer business model?
Trends in brand management
by Felix Stöckle

Democratic branding: The rise of social media
has catapulted marketing into an era of total
transparency as Facebook, Twitter, YouTube, and
consumer blogs have made it possible for ordinary
consumers to communicate with millions of people
they have never met. Before the digital era, brand
owners relied on paid advertising to control and
spread their message. Today, digital word of mouth
allows uncontrolled brand communications to go
out to a massive global audience.
Social media conversations focus predominantly
on brand delivery. People use these outlets to
communicate and evaluate their personal experi-
ences — and especially to share stories about
how brands are delivering against their promise.
The bigger the gap between promise and delivery,
the louder their voices will be; and often, the
more sarcastic and cynical in tone. Ultimately,
the customer’s brand experience is what influences
peer impressions.
I hope brand managers realize that they are in Felix Stöckle is managing director in the
charge of the customer experience, rather than Hamburg office of Landor Associates. His
relying on agencies to communicate their positioning. current article, “How social media is
They must find new ways to measure the efficacy of changing the way brands are managed,”
their brand’s experience and to embed great power is available on landor.com.
apps in all functions, from product innovation to
customer service.
— Frank Vial, strategy director, San Francisco office
We can expect to see more playfulness, consumer
creativity, and partner co-programming in brand
management going forward, as well as more system
innovation. The brands that will stand out in 2011 will
be those that inspire and lead us, not just compete.
— Fiona Atzler, client director, New York office

As a result, marketers will need to move away

from brand promise statements and toward brand
experience management, with more attention
given to how the intended experience is delivered,
monitored, and measured. This trend will continue
in 2011, especially as constant communication
through mobile devices becomes the norm. Expect
branding to become more democratized and
increasingly open source.

The open paradigm: A brand manager is now Customer buy-in Employee action
a facilitator who engages with a community of drives business i transforms business
consumers to solicit their input. Successful brand
managers will provide consumers with tools that
encourage feedback, invite collaboration, and offer
possibilities for brand personalization. And they’ll
pay attention to what customers are telling them.

The brands that adapt best to this open paradigm — 

being authentic in the delivery and cocreation of
experiences — will win in the coming year. Those
that don’t will lose first relevance, then credibility,
and eventually sales and market share.

Landor Associates 19
www.landor.com

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