15
Oct

Growing Too Fast

Posted by: Jonathan Morris in: branding , culture , emerging technology , internet , Media , technology No Comments on Growing Too Fast

The Interbrand 100 is every marketers dream—to build a brand so large and well-known that its recognition spans the entire globe. Corporations spend decades and billions of dollars to build this level of awareness among consumers.

Top brands come from a wide variety of industries, but many of the largest brands are no longer confined to one industry. Apple is no longer a purveyor of niche home PCs, but a major player in the entertainment, publishing, software, and telecommunications industries. Amazon, “the everything store,” truly plays in nearly every retail industry. Conglomerates like General Electric have major footprints in a variety of industries, including aviation, energy, and home appliances.

But massive cross-industry brands aren’t built in a day. They’re built slowly over time and with careful precision. Amazon started with books and built out while Apple spent years in the PC market before moving on to other industries. But what happens if a company unabashedly lays claim to a piece of nearly every consumer industry there is?

Enter WeWork, now called The We Company. You’ve probably heard of WeWork, founded in 2010 focused on buying old corporate offices and turning them into the open-concept dream of millennial startups. Recently, the company filed for an Initial Public Offering only to have to rescind the filing after investors balked at their numbers.

Let’s rewind a little and see how the company got to their public offering meltdown. In 2009 Miguel McKelvey and Adam Neumann formulated the idea for WeWork. Neumann came up with the company’s mission statement—“to elevate the world’s consciousness.” A pretty lofty goal, but along with it came lofty brand ambitions. An initial outline of WeWork’s business model shows the company as an interconnected network supporting consumers’ work, day-to-day services, life essentials, social life, health, travel, and philanthropy. Basically, WeWork wanted to touch every part of an average office worker’s life.

The WeWork idea caught like wildfire. Companies from startups to Fortune 500 started leasing offices all across the globe. But Neumann and McKelvey wouldn’t give up their plan to have a company that encompassed an entire life.

The company launched new ventures to enter every aspect of consumers’ lives. Rise by We, a high-end gym chain; WeGrow, a private school for pre and elementary school; and WeLive, which is basically WeWork for housing. The founders pictured a reality where someone lives in a WeLive apartment, exercises at their Live gym, drops their kid off at a WeGrow school, all before heading into their WeWork office.

But the brand grew faster than the business could. When WeWork filed its IPO its financials were unveiled and scrutinized for the first time publicly. It became apparent that not only did the core business have many issues, but the new ventures meant to capture the non-work hours of people’s lives were hemorrhaging money.

Neumann was forced to step down as CEO and the company’s IPO was withdrawn. Recently, the Wall Street Journal reported the company would “look to sell business outside its core leasing operation.” Investors felt these peripheral businesses were detracting from WeWork’s core business of leasing office space. While WeWork in itself was fine, the company tried to expand beyond its core market too quickly and the projects.

So it seems the We Company, the business poised to take over every waking and non-waking hour of a consumer’s life, will retreat to being an upscale corporate realty company once again.

But this begs marketers to wonder how big can a brand get before it is too big? Building a cross-industry, global brand takes time, skill, and knowledge. Maybe one day an all-encompassing brand like WeWork envisioned will exist. Maybe that company will even be WeWork, but for now, the decades- and centuries-old brands rest safely atop the Interbrand 100.

15
Sep

Segmentation to Support Business Growth

Posted by: Andrew Willard in: knowledge , market research , study No Comments on Segmentation to Support Business Growth

Segmentation research has been a core competency at W5 for two decades with experience spanning industries and audiences. From healthcare consumers to volunteer advocates, from impaired drivers to cloud-computing engineers. While the target audience and vertical may vary, the W5 approach to conducting a solid, actionable segmentation is grounded in a blend of art and science.  

Segmentation research explores target consumer markets based on information beyond demographic characteristics and basic category behaviors. In typical market research studies, response variation can be identified based on demographics such as gender, age, ethnicity, region, and income. However, when examining the market as a whole, this method of analysis does not allow the ability to understand and tailor strategies to address the complexity of consumer segments and their decision-making processes.

Segmentation is a valuable research tool to develop and implement more effective strategies for all phases of the marketing process—from product development through advertising campaign messaging.

“We sought expertise in segmentation. Our client’s needs were somewhat complex, compounded by significant justification/documentation just to get the project off the ground. W5 worked closely and diligently with us, provided technical expertise/support, and your project leaders were available for multiple meetings/consultations. The ultimate study and reports have been well-received by the client and its stakeholders.”

– Senior Vice President, Account Planning, The Tombras Group

For a segmentation to be strategically actionable, members of each segment must think and behave similarly to one another while exhibiting attitudes, psychographics, and behaviors different from members of other segments. Additionally, the segments must be based on stable, real-world criteria, making intuitive sense.

W5’s approach to custom, strategic segmentation arms clients with knowledge to:

  • Determine what consumer segments exist and reveal the relative size of each segment
  • Evaluate the potential economic value of each segment
  • Identify the behaviors, attitudes, needs, and underlying psychographics of each segment and how these differ by segment
  • Inform strategies for reaching and relating to segments of greatest opportunity

Each W5 segmentation is customized and can answer a range of business questions. For our client, Rise Against Hunger, the challenge was to uncover actionable insights that would ultimately drive community engagement and financial support in the fight against world hunger. Presented at The Quirk’s Event New York, check out W5’s joint presentation as our client speaks to W5’s research and how clearly defined audience segments were used to inform marketing strategies.

The Role of Segmentation in the Fight to End World Hunger

If you would like to learn more about W5’s research capabilities, or how we can support segmentation needs at your organization or agency, don’t hesitate to reach out. Happy segmenting! 

12
Sep

NYFW Brand Powers, Activate!

Posted by: Kathy Justice in: advertising , branding , Fashion , Media No Comments on NYFW Brand Powers, Activate!

Every September I dream of bumping into Rachel Zoe on a bustling street in TriBeCa and rubbing elbows with Anna Wintour at a post-catwalk cocktail hour during New York Fashion Week (NYFW). Much to my dismay, I’ve never scored an invite to a runway show and my press credentials have grown dusty and outdated. Even though I can’t quite seem to ever make it to the big event, I remain an admirer from afar.

Aside from the return of the billowy, puffy sleeve trend from 2018, one of my 2019 obsessions has been the steady stream of “brand activation” events, featuring creative and sometimes kooky pop-ups to promote products to key influencers. With social media apps, particularly Instagram, bringing us the NYFW world 24/7, brands are smart to showcase their wares alongside the likes of Rihanna’s Savage X Fenty, Prabal Gurung, and Alice + Olivia.

One thing I find special about NYFW brand activation events is the ability of brands to show their wilder side – it’s an opportunity to break out of traditional marketing structures and apply an artistic edge or humorous take on brand identity. It’s more about pleasure, beauty, and the “story” of a brand than business principles and hard-nosed marketing tactics.

Below are a few “brand activations” from this year’s NYFW that really hit the mark:

  • Cheetos House of Flamin’ Hot – A runway show and beauty bar featuring Cheetos-inspired fashion designs by social media fans and curated by fashion influencers and stylists. Fans can get “Cheetos-fied” with salon services inspired by Cheetos flavors, including “Cheetah Tail Braids” and “Chester’s Ombre Kiss.”
  • Fresh Produce’s theCURVYCon – A three-day event and runway show dedicated to the plus size community. The goal is to unite curve enthusiasts in one space to chat, shop, and embrace body positivity for women of all shapes and walks of life. Fresh Produce, a women and children’s lifestyle clothing brand, sponsored the event.
  • Schicks The Baldest Party Ever – A party to celebrate the chic quality of a shaved head, Schick is inviting BIP’s (Bald Important People) to experience a club all of their own featuring luxury “red carpet” shaving stations, DJ-curated pro-bald dance mixes, and special appearances by bald influencers.

Take a peek at some more NYFW brand activation here. What are some of your favorite brand activations events from this year’s festivities? Share them with the W5 team in the comments.

Snack foods can be high fashion.
Snacks are finding their fashion groove at NYFW 2019.

30
Aug

Inside the Offices of W5

Posted by: Kana Feng in: culture , market research No Comments on Inside the Offices of W5

As the newest member of W5, I wanted to take this opportunity to share some of the things I’ve noticed about daily work life here.

1. The office is pretty quiet.

I used to work in an office with an open floor plan. Someone was walking past me every other minute, and my desk mate’s piles of paper slowly migrated onto my desk everyday. It was a little easier to collaborate, sure. It was definitely easy to get distracted, and it’s not for everyone.

At W5, every partner has their own room and everyone else has a room which they share with one other person at most. Everyone has their own space so that they can get into their own zones and work hard on developing questionnaires and guides, analyzing data, and reporting insights.

  • My Desk (Read: Fortress)
  • The Red Room

There’s construction going on near our building, and the stock market channel is always on in the common space (a.k.a. the red room) but it’s generally quiet – it’s the optimal noise level for W5 employees.

2. That being said, collaboration is key, and it’s happening every day.

In my last position, where I worked remotely as a contractor, I could only (attempt and fail to) collaborate with my cat.

At W5, whether it’s work on a proposal for a qual/quant hybrid study, thinking of answer sets to questionnaires, or finalizing the right amount of words, graphics, and white space in a report, collaboration is at the core of everything we do. Everyone at W5 is thoughtful about their own work and combining these thoughts make everything that much more well thought out and meaningful.

3. Work life and private life are both valued at W5.

I could sense and see the first two points when interviewing and visiting the office. What surprised me most on my first day was when my boss, Andy, came into the office at 6 pm sharp with his bag on his shoulder and keys in hand.

I knew working late was not a norm at W5, but I was mid-email when this happened and it honestly caught me off guard. (Full disclosure, I worked in Japan where overtime was standard and pretty much expected of you.)

Here at W5, everyone leaves the building at (roughly) the same time – right after business hours end at 6 pm. We work thoughtfully and creatively all day, but work/life balance is just as important. Everyone goes home and recharges, so we are ready to provide the same high level of thinking for our clients the next day.

  • John’s Desk
  • Decorated with his Family’s Artwork

Today is my first W5 cookout, and I’m looking forward to spending some more time getting to know my coworkers better while celebrating (mourning?) the unofficial end of summer.

If you’re interested in getting to know W5 better, read more about us here!

27
Aug

America’s New Malls: Have You Been ‘Experienced?’

Posted by: Tom Daly in: advertising , culture No Comments on America’s New Malls: Have You Been ‘Experienced?’

Growing up, the mall was that “third place” where people went to shop, eat, go to the movies, stroll, and just be out and about. Nowadays, we hear of the end of retail as we know it due to mass adoption of online shopping; ‘clicks’ over ‘’bricks.’ Many malls didn’t make it and closed, some still linger, while others are transforming themselves.

Malls successfully transforming themselves are redefining their composition. Taking the place of traditional anchor stores, experiential brands are entering these spaces with entertainment, health and wellness centers, and new types of restaurants more prone to seating than food courts―all tenants that can’t easily be displaced by an online option.

At the same time, bespoke brands are entering malls, something they would never have done in the past. An acute case in point is 3DEN―an urban oasis where one can relax, recharge, and even shower―at the brand new, one million square foot Hudson Yards, arguably the most expensive and fanciest mall in the world, which recently opened in New York City.

Hudson Yards is an interesting retail phenomenon in today’s world. Located in what was some of the dankest land in Manhattan for decades―across from the NYPD Tow Pound, the Subway Yards, and the entrance to the forever-clogged Hudson Tunnel―speculators have dug in their heels to build the world’s swankiest live/work mega-mall in a city where traditional retail is on its last legs, with vacancies aplenty across pricey Manhattan commercial real estate.

While Hudson Yards is largely a real estate project with high-priced condos and apartments for New York’s Masters of the Universe, its mall is critical to its vitality as a nexus “third place” for residents, citizens, and beyond―an incubator for understanding what will, and will not, work in the 2020s. Its discerning clientele will be quick to screen out what isn’t working, and its high stakes will quickly weed out the unsuccessful. Laissez-faire capitalism will provide an unforgiving taskmaster amid its gleaming glass and metal gates.

One interesting theme is dedicating 77,000 square feet of retail space to e-retailers. The thought is that by providing an environment beyond an electronic screen, these brands will have a chance to present themselves to consumers in a new and different manner―with the “e” in e-retailing now standing for “experience.”

Hudson Yards isn’t the only new player in the transformation of today’s American mall experience. Just outside Manhattan sits Hudson Yards suburban cousin, American Dream Meadowlands, in East Rutherford, New Jersey. Owned by the folks who brought us the infamous Mall of America outside of Minneapolis, American Dream also plans to redefine the mall experience, albeit from a less cosmopolitan perspective―keeping with its suburban roots, unlike Hudson Yards, there will be no work or live options, only retail and entertainment.

A Meadowlands complex has been on the drawing board, in various forms, for 25 years. Safe to say, the project has had its ups and downs, but is planned to finally open this fall. And while Hudson Yards will always be its Uptown blueblood cousin, American Dream will simply dwarf Hudson Yards in size―450 retail shops to 100 of Hudson’s; an indoor theme and water park, as well as an indoor ski slope; two mini-golf courses; a bowling alley, aquarium, and rock climbing; the list goes on and on. Did I mention a huge water fountain that turns into a catwalk for retail fashion shows and the occasional American Idol strutting their stuff?

What’s most telling about American Dream is that overall rentable square footage will be 55% to 45% entertainment over retail space, adding up to one mega-gonzo “experience.” This may give American Dream the edge over Hudson Yards when it comes to a full spectrum of offerings―more things for more types of people gives it an opportunity to tweak its model; whereas Hudson Yards is squarely aimed at Manhattan’s millionaires (and those who love them), and just may be a bit ‘too’ cast in one mold, given the shifting sands of the demimonde, i.e., uptown, then downtown, now midtown. But then, Hudson Yards will always have its live and work spaces, the true backbone to the project, whereas American Dream is one big building, shaped like a Star Wars battleship hangar, anchored in the New Jersey wetlands.

Each project is a high-stake bet, doing their best to foster a sense of belonging and participation in the communities they represent. That’s what the mall has always been: an of-the-moment interactive museum of modern consumerism, reflecting the tastes, habits, and practices of those who frequent their spaces. Time changes, yet people still need somewhere to gather, experience, and choose from a bevvy of options, and malls are ideal spaces to provide these needs.

Today’s malls will be less transactional and more experiential. Consumers can buy things anywhere, but as they lead increasingly insulated, regulated lives malls are still a defined physical space in which to provide sensory stimulation and overall experiences.

So, while there will be bumps in the road, the road to happiness is still just around the corner!

21
Aug

SPOTLIGHT: IDENTIFYING AND OVERCOMING BARRIERS TO ENROLLMENT

Posted by: John Capps in: market research , study No Comments on SPOTLIGHT: IDENTIFYING AND OVERCOMING BARRIERS TO ENROLLMENT

As folks return from summer vacations, we wanted to take a moment to share some of the interesting work going on at W5. This case study highlights W5’s role in assisting a post-secondary education institution identify and overcome barriers to enrollment.

CLIENT ASK

A leading provider of post-secondary education was concerned their core audience was no longer reachable through traditional methods that had worked well in the past. With enrollment flat and awareness low, the client needed insight to inform next-generation marketing and communication.

APPROACH

W5 designed a custom approach leveraging both qualitative and quantitative methods to ensure representation across core audiences and emerging enrollee opportunities. W5 conducted focus group research with current students, rejecters, and high school students. The qualitative research explored awareness and perceptions, information preferences and needs, and drivers and barriers to engagement. Simultaneously, W5 conducted a quantitative online survey with key audiences focused on awareness and consideration, media behaviors, path to enrollment, perceptions of schools or programs, and advertising strategies.

RESULTS

Insights informed marketing and communications strategies and the quantitative metrics provided a benchmark for brand awareness and brand health to be tracked in future waves of research. The research provided foundational insights that broadened messaging channels, refined content strategies, and attracted both core and new audiences.

14
Aug

Good Works in the Age of Capitalism

Posted by: Kathy Justice in: Blog , culture , market research 2 Comments on Good Works in the Age of Capitalism

This year I’ve been hanging out with a new crowd, a group of people who are interested in getting to know strangers, loving people for who they are rather than what they buy, and getting rid of excess stuff to make room for deeper connections. It’s been a positive change. Ironically, while these folks have opened their inner circle to me, they sometimes cast a skeptical eye when I share bits of my work experience. In their minds, marketing research is a shady enterprise. They often ask, ‘aren’t you tricking people to buy things?’ Oh, what a pickle. To me, marketing research is deeper than that – it gives me a chance to understand humans, what’s important to them and how they think and behave. Although that answer doesn’t quite satisfy skeptics, I like to take a moment to turn their attention to the good deed done by retailers (some of which I get to take part in!).

With back-to-school around the corner, local kids are really lamenting leaving the pool for the stuffy enclosure of the classroom. Not to mention that long, tedious shopping trip to collect a litany of supplies. But while some suffer from these inconveniences, others face bigger challenges: food insecurity. It’s estimated that more than 12 million kids live in food insecure homes and may not have enough to eat, creating a crisis in their educational growth. Empty bellies result in less focus, causing less retention of knowledge.

One local charity and grocery are working together to fight that. Weaver Street Market, a Chapel Hill and Hillsborough food coop, and Table are working with local shoppers to round up their receipt totals to help feed hungry kids locally. This summer the program helped feed nearly 500 hungry kids over ten weeks of summer, making sure that kids who may rely on reduced price breakfast and lunch at school didn’t go hungry while at home. This fall their backpack program aims to continue getting food into the hands of the neediest kids in my area, providing free after school snacks so hunger is one less obstacle to face. Without the loyalty of shoppers and local volunteers, loyalty built through delivering the products, services, and values shoppers crave, this program could have fallen flat.

So sure, it’s easy to stick a negative label on an industry but sometimes, just sometimes, we should stop to celebrate the good works and partnerships that come from the retailer-customer relationship. Feel free to read here about Weaver Street’s food partnership. 

Do you have a story of good works to share? Please post about it in the comments!

08
Aug

Soda Quest

Posted by: Jonathan Morris in: branding , knowledge , market research No Comments on Soda Quest

If you’ve ever had an “itch” for a Mountain Dew Baja Blast you probably found that craving took you to one place and one place alone: Taco Bell. The popular Mexican fast food chain has an exclusive distribution deal allowing them to be the only restaurant with this exquisite (in my opinion), very special flavor of Mountain Dew.

The brand and flavor of soda served may not seem like an important issue when selecting a restaurant, but for a quick service or fast-casual restaurant where customers often opt to skip alcohol, soda is an easy way to be differentiated from competitors and increase revenues.

For instance, my favorite burger place in Durham offers Puck’s Sodas, a craft soda brand from New Jersey made with cane sugar. People love it; friends that normally wouldn’t touch a soda are going back for refills.

But if you think it’s just artisanal sodas bringing people into restaurants, you’re wrong. Most fast food chains offer a special or unique flavor of soda: Chick-fil-A has its’ heralded lemonade, Wendy’s serves up a proprietary line of carbonated beverages called Dave’s Cream Sodas, McDonald’s ushered in MIX by Sprite Tropic Berry last year, and both Moe’s Southwest Grill and PDQ feature Coca-Cola Freestyle machines with limited edition flavors, infusions, and combinations.

As both a soda lover and a market researcher, I’ve had my eye on these soda offerings and contemplated their value. For the most, part fast food restaurants provide similar offerings: a cheeseburger with all the toppings, a fried chicken sandwich, an amalgamation of Mexican ingredients packaged as the newest promotional item…and the list goes on. But in a world of same vs. same, exclusive soda brands and flavors are a point of differentiation.

Now, including an artisanal beverage in your restaurant’s product portfolio may not be a revolutionary strategy, but it is a small step toward building consumer preference and loyalty in a saturated or mature market.  So the next time you’re having a soda don’t just savor its sweetness and carbonation. Ask yourself, what can be my company or brand’s Baja Blast?  

06
Aug

AdAge Small Agency Conference At-a-Glance

Posted by: Amy Castelda in: advertising , branding , Conference , knowledge , Media , quotes No Comments on AdAge Small Agency Conference At-a-Glance

Last week AdAge hosted the 10th Annual Small Agency Conference, taking it back to where it all began ten years ago, New Orleans. As defined by AdAge, a “small” agency is defined as 150 employees or fewer. But, don’t let the word small fool you. These agencies are landing the biggest brands, pumping millions in revenue, and producing the industry’s most groundbreaking creative and experiential campaigns. The conference offers a platform for peer agencies to come together and discuss advantages and challenges small agencies face, while the Small Agency Awards offers a stage to recognize these game-changer agencies and the work they produce.

In the session Win More by Offering Options, Allen & Gerritsen President, Andrew Graff, discussed how implementing a pricing structure based on options has led to 16 new pieces of business in 2019 alone. Graff continues by calling out the elephant in the room … the idea that we need to move away from hour-based work as a community. He reminds us hours does not equal value and we need to think about scope management, not time management (#ElimateTimeSheets). His advice for implementing a pricing-option strategy at your agency is (1) determine your success metrics, (2) test and learn, (3) communicate what’s not working, and (4) stay committed.

Over the course of two days, attendees were inspired by talks from leaders like PJ Pereira, Founder of Pereira O’Dell, and his perspective on what’s changed in the past ten years since his agency took home the first Small Agency of the Year Award in 2019. Heavy hitter David Droga also graced the stage reflecting on Droga5’s upbringing as a ‘small’ agency and discussed his perspective on the Accenture Interactive deal. We also heard from a powerhouse panel featuring leaders from Circus Maximus, Verb, Third Ear, and Walrus, who addressed the new generation of small shops and how to build a durable agency.

The conference wrapped with the Small Agency Awards where Patrick Kiss, President of BSSP and 2018 Small Agency of the Year, gave a few words of advice to 2019 Small Agency of the Year JohnXHannes and presented a hilarious video. It spoofed Nike’s celebrated “Jogger” ad from 2012’s “Find Your Greatness” campaign, reworking the idea to highlight the noble struggles of small indie shops to “Find Your Smallness.” Find the list of all the 2019 Small Agency Winners here.

As an independent, small research firm, the conference was invigorating and reminds us of the advantages small shops provide clients. In the words of Founder Ryan Kutscher of Circus Maximus, “Small is the sales pitch for us.”

02
Aug

Where we fit: The Gig Economy

Posted by: Ian McDiarmid in: Blog , branding , culture , emerging technology , market research , Uncategorized No Comments on Where we fit: The Gig Economy

In “Where we fit” we explore the shifting role of people in the marketplace. In this post we discuss how assumptions about gig workers can drive decisions that do not represent real workers’ experiences.

The “gig worker” in our imagination

The explosion of the gig economy, from Uber to Door Dash to TaskRabbit, has solidified in people’s minds the idea of a “gig worker”—an intrepid entrepreneur with grit, hustle, and a car. Gig workers love the flexibility of setting their own hours and being their own bosses. Gig workers fit this part-time gig work in on the side—a “side-hustle”—and use their leftover time to pursue their dreams of whatever their real career will turn out to be. We have heard a lot about the gig worker.

The main problem with the “gig worker” concept is that in practice it serves more as a convenient employer category than as an actual lived experience. The statements about “setting your own schedule” or “being your own boss” align almost exactly with the legal conditions required to be classified an “independent contractor,” but they do not match with what many of these workers say they want.

What do gig workers say?

We recently conducted research with workers for a service company that uses the gig model to recruit and place workers in homes. They hypothesized that messaging leaning into the traditional gig economy themes would resonate with their current workers and help attract potential new workers. When we talked to workers, however, we found something very different.

Though we expected to hear about flexibility and independence, instead we heard about the challenges of relying on gig work as stable employment. We heard about unpredictability and insecurity around missing work. We heard about the need to be able to take a paid day off every now and then. We heard about healthcare. In short, we heard about all the benefits offered to “employees” at a traditional “nine to five” that are absent when it comes to “independent contractors.”

A gig is a step towards a career, not away.

Even if gig work is a side hustle for some, for others it is the most accessible way to quickly get an entry-level job. This can be especially true of jobs that demand a high level of professionalism, such as a long-term in-home service. These workers are not interested in flexibility as much as sustainability. They want to see themselves as professionals with skills, not workers with gigs.

Concepts like “gig worker” can provide colorful imagery but cannot be taken for granted when it comes to understanding what real people want and experience. Only by talking to people can we identify and challenge ideas that do not match reality and develop ideas that authentically represent people’s experiences.

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