New Rules For Branding In Emerging Markets: Make Aspiration Accessible

Dipanjan Chatterjee

I spent a few days in India this month, and couldn’t help but be struck by an advertisement for a soft drink that played endlessly on television. Two convertibles pull up alongside each other on what looks like a pristine expressway. Perky members of the opposite sex exchange amorous glances and flirtations ensue. Bottles of the soft drink are cracked open, and predictable mirth ensues. Life is good with sweet lemony soda water.

For the uninitiated who think this is just another soda ad, it may be difficult to gauge how entirely ludicrous this scene is. Roads in urban metros in India are pummeled by a crush of traffic and the cacophony of horns almost at all times. The New York times reported this month that India has surpassed China in air pollution and that about 1.1 million people die prematurely in the country every year from the pollution. Anyone foolish enough to ride in a convertible would be served well by a gas mask. Public mating rituals common to Western cultures are found only in a sliver of society much narrower than the mass market for a soft drink. “Eve Teasing,” a euphemism for public sexual aggression targeted against women, is a major concern.  

So where did reality and depiction of reality part ways? Are these, dare we whisper, Alternative Facts?

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Five Shades Darker? – What The Diageo “Indirect Access” Judgement Really Means For SAP Customers

Duncan Jones

At last, exactly two years later, the long-awaited sequel to my hit, if overly censored, blog post: Five Shades Of Grey (How software buyers and license managers should be compliant without being submissive). The trigger is the SAP vs Diageo verdict, which generated a lot of hysterical blogging and tweeting with dire predictions for SAP customers. IMO most commentators have overlooked the crucial parts of the judgment and therefore significantly overstated the case’s negative implications for SAP customers. I believe the judgement has actually made this grey area slightly more black-and-white. My analysis, subject to the usual IANAL disclaimer, is that the real implications are:

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What Exactly The Heck Are Prescriptive Analytics?

Mike Gualtieri

Prescriptive analyticsPrescriptive analytics is about using data and analytics to improve decisions and therefore the effectiveness of actions. Isn’t that what all analytics should be about? A hearty “yes” to that because, if analytics does not lead to more informed decisions and more effective actions, then why do it at all? Many wrongly and incompletely define prescriptive analytics as the what comes after predictive analytics. Our research indicates that prescriptive analytics is not a specific type of analytics, but rather an umbrella term for many types of analytics that can improve decisions. Think of the term “prescriptive” as the goal of all these analytics — to make more effective decisions — rather than a specific analytical technique. Forrester formally defines prescriptive analytics as:

"Any combination of analytics, math, experiments, simulation, and/or artificial intelligence used to improve the effectiveness of decisions made by humans or by decision logic embedded in applications."

Prescriptive Analytics Inform And Evolve Decision Logic Whether To Act (not not act) And What Action To Take

Prescriptive analytics can be used in two ways:

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What to expect from Mobile World Congress 2017?

Thomas Husson

This is this time of the year again! From next Monday (February 27) and March 2, 2017, Mobile World Congress (MWC) will take place in Barcelona. I attended this event (then 3GSM) for the first time in 2005 and it is fascinating to see how the event has morphed from a B2B telecoms technology trade show to the one of the largest business conference around the globe. This year’s MWC theme is “The Next Element” may look broad but I quite like this idea that mobile is elemental and has become part of our daily lives. By analogy with the previous industrial revolution, mobile is like electricity: once you have access to it, it is a disruptive enabler of adjacent technologies powering more powerful innovation. Mobile is barely entering its teen age years.

Consumers now use mobile as a sixth sense. If the human senses serve as effortless faculties through which we access information on the world around us, then mobile has become the sixth sense. It brings digital to consumers in their daily lives. It has truly become the face of digital.  That’s the main challenge for marketers: since mobile becomes the primary interface between your brand and your customers, you must leverage mobile to accelerate digital transformation and transform the customer experience you deliver. A lot has to happen behind the scenes for marketers to be able to deliver real-time contextual experiences on mobile. That’s why it makes a lot of sense for marketers to spend time in Hall 8.1 where most marketing, advertising and app vendors will be gathered.

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Scifi Version Of AI Is Not Available Yet

Mike Gualtieri

Spark Summit East came to Boston this year and I was there to enjoy it including being interviewed by Dave Vallente and George Gilbert about Apache Spark and AI on The Cube. We talk about the waning of the term "Big Data" , but get quickly into the future of AI and Apache Spark.

Get ready for Business Intelligence market next wave of M&A

Boris Evelson

Business intelligence (BI) is a runaway locomotive that keeps picking up speed in terms of enterprise interest, adoption, and spending levels. The result: Forrester now tracks 73(!) vendors in the segment. Their architectures and user interfaces vary, but they support similar use cases. Forrester started the original research with fewer than 30 vendors in 2014 and ended up with 73 in the current 2017 update. Expect this dynamic to continue for the foreseeable future. Even though the BI market is quite mature from the point of view of the number of players and breadth and depth of their functionality, it is still quite immature regarding business and technology maturity, adoption, and penetration levels in user organizations. Vendors will continue to seize this opportunity — new players will keep springing up, and large vendors will continue to acquire them.No market, even a $16.5 billion market, can support 73 vendors.

Do You Dread, Tolerate, or Embrace Change?

James McQuivey

Last November I sat down with Chevrolet CMO Tim Mahoney on stage at Forrester's Age of the Customer summit. We had a wide-ranging talk about disruption, change, and what Chevy executives are doing to anticipate and deal with that change. I just published a summary that conversation, what I might call Mahoney's top recommendations for CMOs in 2017. In that short summary, I quoted Mahoney and then added what follows:

"Our CEO talks a lot about how in the next five years, it's going to change more than it has in the last 100 years when you think about what's going on with car sharing, ridesharing, autonomous. It's a really interesting time to be in an industry that's over 100 years old. Think about your car: Where is it now? It's parked. Next to your home, it's the second-most important investment people make. It's parked 94% of the time. Many younger people are starting to ask, why do I even need a car?" - Tim Mahoney

General Motors is not alone in this ominous premonition. A full 42% of companies we surveyed recently in the US, Germany, and the UK agree that "in the next five years, my organization will have significantly altered its product and/or services.

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Pricing Strategies For SaaS Providers

Duncan Jones

Most leaders of SaaS providers understand the importance of minimizing Churn and maximizing account enrichment, but few fully appreciate how vital to those goals is a good pricing and licensing strategy. My newly published report Pricing Strategies For Software-As-A-Service  is a must read for any business software company that sells or is thinking of selling via a subscription model. Here is a quick overview for anyone who isn't yet a Forrester client. 

Some industry experts talk about the "magic ratio" of lifetime customer value to acquisition cost. Aligning the price you charge each customer more closely with the value they are likely to receive from your product is vital to increasing the former and reducing the latter. Simplistic pricing undermines lifetime value by undercharging those customers who get the most benefit from your product. Don't think you can fix this error later if you get it wrong at the start - I've seen many start-up vendors limit their growth potential in this way. Flat rate pricing helped them get traction early on, but then when they wanted to accelerate revenue growth they found it impossible to persuade those early adopters to switch to a variable pricing structure. 

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Futurology Episode 4: The Future of The Connected Workplace

Michael Facemire

This post was authored by Claudia Tajima, Researcher at Forrester.

 

On the second part of the forth episode of our Futurology webinar series, Mike Facemire, Julie Ask and James McQuivey convened to discuss the future of the connected workplace. Looking forward, they discussed what change in the workplace will look like and what it will take to get there.

See WEBINAR: Forrester Futurology Episode IV: The Future Of Me (Part 2).

 

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The Data Digest: Super Bowl Ads With Political Messages Spark Strong Emotional Reactions

Kristopher Arcand

The dust is settling after last week’s exciting Super Bowl. Emotions certainly ran high for those watching the game. Here at Forrester, we were also interested in the longer-term sentiment about the ads that aired during the show. So we reached out to consumers again after a week to capture consumers’ reactions to the Super Bowl ads, to ask them which they liked most, and to ask which made a lasting impression.

As my colleague Jim Nail pointed out in a blog post , this year’s ads did not always resonate positively (if at all) with audiences. That said, our ConsumerVoices market research online community members were most likely to mention 84 Lumber, Audi, and Anheuser-Busch/Budweiser as memorable ads that influenced their opinions of the respective companies.

In the case of 84 Lumber’s and Anheuser-Busch’s focus on immigration, sentiment was sharply split. Quite a few consumers were further turned off when 84 Lumber’s CEO declared that the ad was not intended to be pro-immigration, adding more confusion to consumers’ perception of the brand and its values. On the other hand, Audi’s ad addressing gender equality in pay sparked a different controversy. Although Audi is an aspirational luxury brand, the message was seen as bold and received in good faith, producing a more positive sentiment overall.

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