1. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 1 GLOBAL TRENDS - HOW TO RESPOND? Marina Bezouglova General Manager | GfK Rus XI Business Forum Top Marketing, April 4-6, 2012, Moscow

2. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 2 Marketing strategy evolution Sales driven Market driven 4 3 2 1 Customer driven Market Driving UNDERSTANDING TRENDS IS A KEY FOR NEW MARKETING STRATEGY “Good companies listen to customers and satisfy their needs. Great companies are creating markets, ones that buyers cannot imagine, shaping their evolution.” (Gregory Carpenter, Kellogg School of Management) Understanding Trends Investigating Consumer in a broader context Exploiting creativity of consumers How to become market driving company?

3. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 3 Digital is changing consumers lives in everything: shopping, communication, gathering information, engaging, interacting. Many business players look at digital as the key to success and implement new business models. People want to be reachable wherever they are. The number of people accessing the internet over their mobile devices is skyrocketing. Web access via mobile devices will exceed desktop web access by 2015. Cloud computing is on the fast track from niche to mass market. Cloud based services are the next step in liberating consumers’ most loved content and service as the device is removed as a barrier to access. UNDERSTANDING TRENDS. MEGA TRENDS TRANSFORMING PEOPLE LIFE AND BUSINESS. Digital Life Mobility Social Network Cloud Computing Social Media has become a cultural phenomenon. Social Networking sites are continuing the communication evolution with more on-line word-of-mouth. Era of co-operation, communication and interaction.

4. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 4 1. DIGITAL LIFE IS AN INTEGRAL PART OF MODERN LIFE Life in the Internet is a new subculture: communication, entertainment, media usage, Skype, e-commerce…

5. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 5 1. DIGITAL LIFE. MANIFESTATION IN RUSSIA: DIGITAL REVOLUTION During the last 12 years the number of Internet users has increased by 25 times!* Monthly audience in Russia (mln) *GfK Rus Omnibus data **The Ministry of economic development Forecast

6. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 6 1. DIGITAL LIFE. FROM WEB 1.0 TO WEB 2.0 IN RUSSIAN SOCIETY. OPPORTUNITY FOR E-COMMERCE. Source: On-line panel GfK, n=1011, September 2009 Source: On-line panel GfK, n=901, January 2011 What for do you use Internet usually?

7. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 7 2. MOBILITY. THE FIXED-LINE HAS LOST TO THE MOBILE TELECOMMUNICATION. The fixed-line phone % of respondents, GfK All Russia Omnibus data, about 20,000 interview per year 2001 20112006 Mobile phone Penetration: +89% for 10 years Penetration: : +18% for 10 years

8. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 8 2. MOBILITY. USE OF PORTABLES DEVICES TO SURF INTERNET IS AS POPULAR AS TRADITIONAL DESKTOP PC Source 2009: On-line panel GfK, n=1011, September 2009 Source 2011: On-line panel GfK, n=901, January 2011 Devices for Internet use 26,3 7,0 20,4 6,2 7,0 13,1 8,3 2,8 2,9 *Average number of hours per week spent surfing in Internet on each device Frequency of usage* On average people use 2.3 devices to surf Internet

9. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 9 2. MOBILITY. A NEW DECADE OF OPPORTUNITIES COMMODITIZING OF FUNCTIONS – MOBILE PHONE app-marketing

10. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 10 “Time spent on social networks surpassed that for e- mail for the first time in February, signaling a paradigm shift in consumer engagement with the Internet.” – The New York Times, 5.18.09 10 © Copyright GfK Custom Research North America 2009. Proprietary and Confidential Move from CONSUMER (web 1.0) to PROSUMER (networked & participatory) 3. SOCIAL NETWORKING IS A PARADIGM SHIFT IN INTERNET USAGE

11. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 11 3. SOCIAL NETWORKING. TODAY, PEOPLE HAVE SO MANY WAYS TO CONNECT WITH FRIENDS, FAMILY Blogs, Wikis & Forums Social Networking Sites 7,5 mln monthly audience in Russia 21 mln monthly audience 16 mln monthly audience

12. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 12 3. SOCIAL NETWORKING. SENSIBLE BELONGING …AN EVOLVING SOCIAL NETWORK APPROACH 51% of Americans use social network websites to stay in touch with family & friends they do not see or talk to regularly* versus… 22% who use them to connect & exchange ideas with others who share their interests and hobbies* *Statements that US consumers 18+ say describe them ‘a lot’ 77% of Gen Y agree that people share far too much private information on social network sites In fact… 56% have cut back on time they spend on these sites because they take too much time and effort As consumers expand their foray into the world of online social networks, they are increasingly tempering their attitudes and behaviors as they look to cut through oceans of information and reliable sources. Trustworthy sources for ideas about what to buy: 49% of global consumers say “family and friends” 12% say online communities

13. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 13 4. CLOUD COMPUTING - CLOUD COMPUTING@HOME hardware is key for using the cloud content Dropbox is a Web-based file hosting service that uses cloud storage to enable users to store and share files and folders with others across the Internet using file synchronization. (Wikipedia)Web-based file hosting service cloud storage usersfile synchronization

14. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 14 Consumer have now unlimited power to share and make informed decisions Our consumers are already ONLINE! Use multiple online sources They feel in control of their purchases They search for the best value proposition What do businesses do to respond (re-actively or pro-actively) to the new reality?

15. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 15 Source: ZenithOptimedia, April 2011 2009201020112012 2013 Internet Outdoor Radio Television Magazines Newspaper 23,0%21,3%20,0%18,7%17,6% 39,1%40,4%40,9%41,5%41,7% 12,8%14,1%15,4%16,8% 18,3% 10,4%9,8%9,3%8,8%8,3% 7,5%7,2%7,1%6,9%6,8% 6,7%6,6%6,7%6,8% Without cinema (constantly at 0,5%) International share of total ad spend by medium (%): Online is growing continuously

16. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 16 MarketObsurvey.dx Source: GfK Service Classification GfK Digital Research Portfolio GfK Digital /.dx Solutions Web Mining / Social Media Monitoring ExposureEffects.dx Website Usability Mobile Research SocioLog.dx (Online Forums & Blogs) Online User Behavior Evaluation of Online Ad Effectiveness

17. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 17 MarketObsurvey.dx On-line user behavior. Online and Offline Purchase Journey

18. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 18 On-line user behavior. How much and where exactly has our target group searched for Information in the Internet?  28 days online  81 online sessions  65 hours online  5,868 Page impressions (PIs)  48 minutes/72 PIs per session  34 relevant* online sessions  10 different relevant* websites/domains  30 minutes per relevant* domain  24 PIs per relevant* domain Total internet usage within the 4 weeks of monitoring 11 visits (44 min) 8 visits (26 min) 8 visits (17 min) 7 visits (10 min) 4 visits (7 min) 3 visits (13 min) 1 visit (3 min)  2 hours  134 Page impressions (PIs)  17 minutes per website/domain  19 PIs per domain MarketObsurvey.dx

19. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 19 On-line user behavior. Which are the main online channels that drive consumers most effectively through the search/purchase process MarketObsurvey.dx Previously visited webpage Email Accounts 8% Search engines 24% Internet shops 6% Email Accounts 7% Internet shops 9% Other pages 29% Other pages 34% Search engines 15% Operators 10% Operators 7% Price compa- rison pages 3% Price compa- rison pages 2% Telecommuni- cation/IT pages 3% Telecommuni- cation/IT pages 3% Forum, blogs, communities 11% General infor- mation pages 12% General infor- mation pages 14% Forum, blogs, communities 5%

20. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 20 Online Ad Effectiveness Typical Campaign & Research Objectives addressed by ExposureEffects.dx ExposureEffects.dx Campaign Objectives Raise awareness of the brand and product/service offering Re-engage the (core) target audience Re-enforce the emotional benefits of the brand Drive penetration and purchase intent Raise awareness of the brand and product/service offering Re-engage the (core) target audience Re-enforce the emotional benefits of the brand Drive penetration and purchase intent Research Objectives Demonstrate the effectiveness of the online campaign in brand building Identify Cross-media synergies of the campaign Measure the reach & incremental reach of different campaign elements Demonstrate the effectiveness of the online campaign in brand building Identify Cross-media synergies of the campaign Measure the reach & incremental reach of different campaign elements Our approach – ExposureEffects.dx Cookie Panel tracking Identify and measure exposed (test) vs. non-exposed (control) groups of respondents in terms of action & brand perception Cookie Panel tracking Identify and measure exposed (test) vs. non-exposed (control) groups of respondents in terms of action & brand perception

21. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 21 Online Ad Effectiveness ExposureEffects.dx – Uplift on Brand Perception ExposureEffects.dx... is used by people who take part in sports or exercise... is great tasting... has a cool image... helps me perform at my best... helps me achieve what I want to out of my sport / exercise... has a strong association with great music 3% 6% 10% Average uplift vs. non-exposed to this medium + Exposed vs Non-Exposed Groups Media channels: TV and Online Image

22. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 22 Online Ad Effectiveness ExposureEffects.dx – Uplift in Brand Favorability & Purchase Intent ExposureEffects.dx Brand Favourability Exposed vs Non-Exposed Favourability Purchase intent Purchase Intent Exposed vs. Non-Exposed + 21% + 12%

23. © GfK Rus 2012 | TOP-Marketing Management | 4-6, April, 2012. | 23 LET’S BE THE LEADERS IN THE NEW DIGITAL WORLD! T +7 495 937 7222 | www.gfk.ru GfK Rus | Ryazansky prospekt 8A | 109428 Moscow | Russia