Experiential Marketing A Presentation to Strategic Management Class

Ashesi University College – 22nd March 2011

design & execute brand experiences

Discussion Agenda Introduction & Exp Overview Why Experiential marketing

Thinking Experiential

Creating an Experience

Case Studies and Video

Questions .

2 design & execute brand experiences

expagency

We bring brands to life

About Introduction Approach Capabilities Leadership Team Locations

Exp is an experiential ideas agency. We design and execute measurable Sixth SenseTM experiences. We bring brands to life.

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2011

design & execute brand experiences

expagency

“Nothing becomes real until it is experienced” About Introduction Approach Capabilities Leadership Team Locations

About Introduction Approach Capabilities Leadership Team Locations

1982  First Company launched in South Africa

1991  Companies consolidated into Group Africa Marketing. 1992  Expansion into the Rest of Africa 2001  The principal companies in Africa merge to form Exp 2005  Sponsorship Agency becomes part of the Group 2009  Acquired by MARC GROUP 4

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design & execute brand experiences

expagency

A truly Pan African Agency

About Introduction Approach Capabilities Leadership Team Locations

South Africa

(Johannesburg and Cape Town)

West Africa

Nigeria and Ghana

French West Africa

Senegal, Cameroon and Gabon

East, Central & Southern Kenya, Uganda, Tanzania, Malawi, Zambia and Mozambique 5

2011

design & execute brand experiences

expagency

“Nothing becomes real until it is experienced”

80,000

 The number of brand experiences delivered by Exp in 2009.

2,000

 The number of flexible staff working for Exp across Africa.

450

 The number of staff permanently employed by Exp.

29

 The number of years we have been operating.

17

 The number of countries we operate in.

5

 The number of awards we won in 2008.

1 6

 The position of importance of our clients. 2011

design & execute brand experiences

expagency

We Bring Brands to Life

About Introduction Approach Capabilities Leadership Team Locations

What we do.  Design and execute brand experiences through sponsorship & brand activation.  Design and execute behavior change strategies through social marketing and corporate social investment.

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design & execute brand experiences

expagency

“Nothing ever becomes real until it is experienced.”

About Introduction Approach Capabilities Leadership Team Locations

 Sponsorship

Strategy, Consulting, Leveraging and Sports Events.

 Brand Activation

Strategy, Brand Campaigns, Events and Launches.

 Special Events

Conferences, Music Events, Festivals and Pan-African Campaigns.

 Social Marketing / CSI Strategy, Behaviour Change Campaigns and Events

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design & execute brand experiences

expagency

Our Team

‘Our team reflects an understanding of the consumer as individual, where the brand connects through personalized experiences. We are a fun agency with an inspired team to liberate brands. We ensure that the brand objectives are translated through the strategy into measurable tactical brand experiences.

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2011

design & execute brand experiences

expagency

“Nothing becomes real until it is experienced”

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2011

design & execute brand experiences

What Is Experiential Marketing

design & execute brand experiences

Experiential Thought

‘I hear and I forget

I see and I remember I experience and I understand.’ Confucius 450BC

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design & execute brand experiences

How EXP defines it….

Experiential Marketing is live, one-on-one interaction that allows consumers to create an emotional connection with the brand. Experiential Engagement is about identifying the emotional triggers a consumer has with a brand, then leveraging them personally

design & execute brand experiences

What is experiential marketing

“Experiential marketing uses brand relevant experiences to engage key audiences while creating a forum where these audiences interact with a brand. It involves high levels of

interactivity and sensory impact and seeks to elicit an emotional response among the target through a more personal level of engagement than other media.” Wikipedia Encyclopedia

design & execute brand experiences

The Marketing Challenge Advertising / Communication

“A Brand is a complex symbol. It is the intangible sum of a product's attributes, its name, packaging, and price, its history, reputation, and the way it's advertised. A Brand is also defined by consumers' impressions of the people who use it, as well as their own experience.” David Ogilvy

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design & execute brand experiences

What is Experiential Marketing You don’t necessarily connect through advertising….

You

appeal through advertising.

Connections are made through exp.eriential. It is used as a rifle, and not as a shotgun

design & execute brand experiences

The Differentiator

Passive Push Quantity Buy Impressions Grab Attention Talk to Customers

Communicate Values & Benefits www.expagency.biz

Active Pull

Quality Create Experiences Give Attention Listen Build Relationships design & execute brand experiences

Marketers need to create breakthrough connections

 A breakthrough connection is authentic, meaningful and engages both heart and mind  A breakthrough connection generates insight, action and advocacy  Experiential marketing creates breakthrough connections that lead more quickly to

insight, action and advocacy

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design & execute brand experiences

The connection- consumer In order to successfully Activate my Demand you have to embrace and understand my……

Passion Life Interest Always changing trends

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design & execute brand experiences

Why Experiential Marketing

Active Creates a special bond… the dynamism that constantly moves brand-in-mind to brandPull in-hand… and ultimately to BRAND IN HEART!

Quality Create Experiences Give Attention Listen Build Relationships www.expagency.biz

design & execute brand experiences

Why Experiential Marketing

• Because it inspires Advocacy and WOM • It builds a relationship between Brand and Consumer brain-behavior.

design & execute brand experiences

Advocacy is a valuable marketing channel

don’t believe that companies tell the truth in advertisements

Talk Track™, Fay Group, 2006 Source:Source: Talk Track™, Keller FayKeller Group, 2006 www.expagency.biz

design & execute brand experiences

Advocacy is a valuable marketing channel Experiential Engagement = Advocacy is the ratio of positive to negative word-of-mouth Mostly Negative 9% Mostly Positive 62%

Source: Talk Track™, Keller Fay Group, 2006 www.expagency.biz

Mixed 16%

Neutral 13% design & execute brand experiences

Advocacy is a valuable marketing channel

Experiential Engagement = Advocacy of conversations have an impact on the likelihood to buy a brand Consider or Try it 24% Buy it 37%

Avoid it 9%

Source: Talk Track™, Keller Fay Group, 2006 www.expagency.iz

No specific recommendation made 30% design & execute brand experiences

Why Experiential Marketing

 Advocacy—inspiring people to market on your behalf—is a valuable marketing channel  Experiential engagement inspires advocacy  Advocacy can be measured

design & execute brand experiences

Amplifying a Brand’s Presence A recent study by the Jack Morton Group in America shows that Experiential Marketing: 1. “Is best suited to motivate a target audience to action.”  “Not taking the place of traditional media in building Brand awareness, but is more effective in inciting fast response.” 2. “Reinforces one of the most critical and often elusive marketing imperatives: Brand integration.”  “Consumers overwhelmingly indicate that experiential marketing enhances the impact of other marketing messages.”  “Almost 9/10 agree that participating in a live consumer experience makes them more receptive to a product’s advertising the next time they see it.” 3. “Enhances Brand perception.”  More than 53% of consumers said that experiencing a brand through a live event was extremely influential on their perception of the Brand  Among Generation Y consumers, this percentage increases to 61%.

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design & execute brand experiences

Why Experiential Marketing  A recent study in the UK shows:  61% of consumers say there are so many ads that they “no longer take notice”.

 89% of consumers want to try something before they buy something73% of consumers know more about a brand after engaging with it in an experiential campaign.  91 % say an experiential campaign would encourage them to buy a product they would not

normally purchase.

Source: ID, London www.expagency.biz

design & execute brand experiences

Brand Experience Integration The more senses the communication uses, the more effective the exp.erience will be.

To Look

Traditional Media

To Hear To Touch

Exp.eriential Branding

To Smell To Taste

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design & execute brand experiences

Brand Experience Integration Unlocking the door to learning and knowledge

The Theory :

Sensory Integration

 The Brain is made up of millions of nerves (5,000,000) that are designed to transmit electric messages through the body.  Networking & connecting process is the basis of learning and thought.  Sensory information is derived from the environment and is used to plan and organize behavior.

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design & execute brand experiences

Brand Experience Integration Unlocking the door to learning and knowledge

Sensory Integration The Theory :

 Experiences are delivered to the body via the skin, tongue, ears, eyes and nose.  Our brains have been programmed by our experiences to listen to certain sensory messages, and to shut out others.

www.expagency.biz

design & execute brand experiences

Brand Experience Integration Unlocking the door to learning and knowledge

Sensory Integration The Theory :  “As adults we can to a large extent control what sensory information we take in simply by controlling our environment to the best of our ability.”  Depending on the depth of emotion of the experience, they are being stored in either the long term memory bank, or the short.

www.expagency.biz

design & execute brand experiences

Experiential engagement inspires advocacy People Generally Remember

Media Channel

10% of what they read

Read

20% of what they hear

Hear View Image

30% of what they see

See Visual

Newspapers, Radio, Magazines, Email,

TV Advertising, Video Programs

Watch video 50% of what they hear and see 70% of what they say and write 90% of what they do

Watch Demo Participate in hands on workshops Design collaborative lessons Simulate, Model or Experience a Lesson

Internet

Experiential

Design/Perform/Participate in a Song or Presentation Participate in True Immersion

Source: Talk Track™, Keller Fay Group, 2006 www.expagency.biz

design & execute brand experiences

How? Because We Know……….

“80% of our life is Emotion and only 20% intellect” “We can change the way consumers think, but how they feel is something deeper and stronger, and it's something that's inside them. How they think is on the outside, how they feel is on the inside, so that's what we need to understand.”

Thoughts lead to feelings, Feelings lead to action, Action leads to results

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design & execute brand experiences

Marlboro does not sell cigarettes but adventure.

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design & execute brand experiences

Harley does not sell motorcycles but an experience.

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design & execute brand experiences

Nike does not sell sporting goods but emotions.

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design & execute brand experiences

Intel does not sell chips but power.

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design & execute brand experiences

DHL does not sell transport services but speed and efficiency.

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design & execute brand experiences

MTN does not sell telecommunications, but keeping in touch

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design & execute brand experiences

Nandos does not sell chicken but an appetite for life 40 .

design & execute brand experiences

Creating an Experience

design & execute brand experiences

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design & execute brand experiences

Brand Experience Integration

The opportunity is about making maximum use of the 5 senses in communicating key messages to a selected target audience…

www.expagency.biz

design & execute brand experiences

Brand Experience Integration

Igniting their passion with the power of a Big Idea.

www.expagency.biz

design & execute brand experiences

Brand Experience Integration

An idea that connects your brand with the consumer at just the right point, in just the right way, at the exact right moment.

www.expagency.biz

design & execute brand experiences

Case Studies and Videos

www.expagency.biz

design & execute brand experiences

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design & execute brand experiences

Absorption

Education

Entertainment I experience the brand in an enjoyable way.

Tell/show me something about the brand I didn’t know before.

Passive

Active

Environment

Escapism

The brand comes to me.

The brand gave me something new / different to do.

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Experiential Sweetspot Where environment, entertainment and education drive action

Immersion design & execute brand experiences