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The JWT AnxietyIndex was launched in February 2003 during the run-up to the war in Iraq. It tracks the level and intensity of consumer anxiety and the drivers of that anxiety. It examines safety and security concerns—the threat of terrorism, potential and current military hostilities, crime—as well as economic worries, such as the cost of health care, the cost of living and job security. The AnxietyIndex is also designed to discover consumer insights that will help marketers formulate strategies during times of high or low anxiety. A quantitative survey was conducted using JWT's SONAR, our proprietary online research tool. We surveyed 253 adults aged 25 and older living in Colombia. The data was collected in January 2010 and was weighted by age and gender.
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ANXIETYINDEXCOLOMBIA
JANUARY 2010
AGENDABackground ..............................................................................................................3
Methodology ............................................................................................................5
Executive Summary ..............................................................................................6
What’s making people anxious today? ........................................................9
A closer look at Colombia ..............................................................................20
The recession’s impact on Colombia vs. other countries ................................21The recession’s impact on lifestyle ................................................................24Media and the recession ................................................................................33Shopping behavior and the recession ............................................................39Looking to the future: The next generation ....................................................42
Brand Opportunities............................................................................................45
2
BACKGROUNDThe JWT AnxietyIndex was launched in February 2003 during the run-upto the war in Iraq.
It tracks the level and intensity of consumer anxiety and the drivers ofthat anxiety. It examines safety and security concerns—the threat ofterrorism, potential and current military hostilities, crime—as well aseconomic worries, such as the cost of health care, the cost of living andjob security.
The AnxietyIndex is also designed to discover consumer insights that willhelp marketers formulate strategies during times of high or low anxiety.
3
4
10
5
0
-5
JWT launched the baseline study for AnxietyIndex in Colombia in 2010.
Following the global economic downturn, forecasts predict a recession for Colombia in 2010.
Source: CIA World Fact Book
2004 2005 2006 2007 2008 2009 2010(est.)
% Change
3.73.6
5.26.8
8.2
2.5
-0.1
Colombia - GDP Percent Change
BACKGROUND (CONT’D.)
METHODOLOGY Quantitative survey conducted by JWT SONARTM, our proprietary onlineresearch tool
Data collected January 2010
1,253 adults aged 25-plus living in Colombia
Data weighted by age and gender
5
EXECUTIVE SUMMARY
6
EXECUTIVE SUMMARYColombia registers a relatively low level of anxiety compared with othercountries JWT has surveyed.
There are two primary drivers of anxiety in Colombia:
Crime: Significant inequality in Colombian society has led to high rates ofurban violence and theft.
Global warming: Water levels of many rivers and lakes have decreased, andsome have disappeared.
7
EXECUTIVE SUMMARYSome highlights of the AnxietyIndex study:
Colombians are most pessimistic when it comes to the cost of gasoline,unemployment and increasing food prices.
As far as specific drivers of anxiety, Colombians are most concerned aboutthe impact of global warming.
To reduce spending, Colombians are spending more time at home, cuttingdown on trips to the cinema and leisure activities.
8
WHAT’S MAKING PEOPLEANXIOUS TODAY?
9
10
Overall anxiety levels in Colombia are relativelylow—among the lowest in the world ...
Overall, given everything that is going on in the world, the country, and your family’s life,how nervous or anxious would you say you currently are?
100
90
80
70
60
50
40
30
20
10
0
% Nervous/Anxious % Not Nervous/Anxious
Japan Russia Saudi ArgentinaMexico UAE India U.S. Spain Brazil U.K. AustraliaColombiaCanada France ChinaArabia
10
90
16
84
18
82
21
79
22
78
22
78
26
74
28
72
30
70
34
66
35
65
41
59
42
58
45
55
58
42
65
35
Brazil: January 2009India, China: April-May 2009
Russia, Spain, Japan: March 2009U.S., U.K., Canada, Australia, France: September 2009
Saudi Arabia, UAE: October 2009Argentina, Colombia, Mexico: January 2010
... and fewer than 1 in 10 say they are “very nervous/anxious.”
Overall, given everything that is going on in the world, the country, and your family’s life,how nervous or anxious would you say you currently are?
50
40
30
20
10
0
% Very Nervous/Anxious
Russia India Saudi UAE Argentina Japan Mexico Brazil U.S. Spain France U.K. Australia CanadaColombia ChinaArabia
3830
28 26 25 25 21 18 16 12 10 9 8 8 7 6
Brazil: January 2009India, China: April-May 2009
Russia, Spain, Japan: March 2009U.S., U.K., Canada, Australia, France: September 2009
Saudi Arabia, UAE: October 2009Argentina, Colombia, Mexico: January 2010
11
ANXIETYINDEX MAP
SAFETY/SECURITY ECONOMIC
SAFETY/SECURITY ECONOMIC
FURTHERFROM
“HOME”
CLOSERTO
“HOME”
FURTHER FROM
“HOME”
CLOSERTO
“HOME”
Political Leadership
State of Economy
Cost of Health Care
Cost of Living Current MilitaryHostilities
Potential MilitaryHostilities
Crime Job Security
Threat ofTerrorism
900
600
300
0
12
Political Leadership
State of Economy
Cost of Health Care
Cost of Living Current MilitaryHostilities
Potential MilitaryHostilities
Crime Job Security
Threat ofTerrorism
1000
900
800
700
600
500
400
300
200
100
0
364
100
98
15570
175
147
143
120
AnxietyIndex: % who are nervous or anxious/% who are not
13
Other than crime, the major drivers of anxiety make Colombians less anxious than
most people around the world.Colombia
Global average
Political Leadership
State of Economy
Cost of Health Care
Cost of Living Current MilitaryHostilities
Potential MilitaryHostilities
Crime Job Security
Threat ofTerrorism
1000
900
800
700
600
500
400
300
200
100
0
364
100
98
15570
175
147
143
120
AnxietyIndex: % who are nervous or anxious/% who are not
14
Even compared with other LATAM markets JWT studied, Colombians are much more at ease.
*Brazil, Argentina, Colombia, Mexico
Colombia
LATAM*average
15
Quality ofProducts Imported
from China
The War in Afghanistan
The Housing Market
The War in Iraq
Gasoline Prices
Unemployment RatesThe Government’sBudget Deficit
The Stock Market
The Stateof the
National Infrastructure
Impact of Global Warming
Safety of the Food Supply
Bank Failures
Food Prices
Natural Disasters
800
600
400
200
0
34
2376852128
132
56139
363
72
101
69
147 33
AnxietyIndex: % who are nervous or anxious/% who are not
On specific drivers of anxiety, Colombians stand outin only one area: concern about global warming ...
Colombia
Global average
16
... and are generally relaxed compared with their LATAM neighbors.
*Brazil, Argentina, Colombia, Mexico
The War in Afghanistan
The Housing Market
The War in Iraq
Gasoline Prices
Unemployment Rates
The Government’sBudget Deficit
The Stock MarketThe State of theNational Infrastructure
Impact of Global Warming
Corruption
Quality ofProducts Imported
from China
Safety of the Food Supply
Bank Failures
Food Prices
Natural Disasters
800
600
400
200
0
34
2376852
128
132
56139
495
363
72
101
69
14733
Colombia
LATAM* average
AnxietyIndex: % who are nervous or anxious/% who are not
And over the next six months, do you expect that each of the following will get better, stay the same or get worse?
% who expect it will get “better” minus % who expect it will get “worse” in the next six months
In general, Colombians are slightly more optimistic than the global average about near-term
prospects of positive change.
17
Safety of the food supply
The housing market
The stock market
Bank failures
Unemployment rates
Gasoline prices
Food prices
The government’s budget deficit
-30-27
-53-34
-40
WORSE BETTER
-3
-4
-35
8
14
211
1
ColombiaGlobal average
More optimistic
More pessimistic
-26-29
18
Colombians are split on the extent to which they’re feeling the effects of the downturn.
1 2 3 4 5 6 7 8 9 10Haven’t Have
impacted impactedme at all me a great
deal
Intensity of Personal Impact from Tough Economic Times
No Impact Great Impact
37 3529
%
On a scale of 1-10, where 1 means tough economic times haven’t impacted me personally at all and 10 means tough economictimes have impacted me personally a great deal, how would you rate yourself?
19
Many feel they fared better than their countrymen.
1 2 3 4 5 6 7 8 9 10Haven’t Have
impacted impactedme at all me a great
deal
Intensity of Impact from Tough Economic Times
No Impact Great Impact
35
%
How would you rate the impact of the recession on your country?
59Impact on me =
Impact on Colombia =Impact on ColombiaImpact on Me
20
A CLOSER LOOK AT COLOMBIA
21
THE RECESSION’SIMPACT ON COLOMBIAVS. OTHER COUNTRIES
Most think Colombia has fared about the same or better in the recession than other
Latin American countries ...
Thinking about the effect of the global economic downturn on your country, do you think your country has been affected more,less, or about the same compared to other Latin American countries?
22
Impact of Recession on Colombia vs. Other Latin American Countries
70
60
50
40
30
20
10
0
7
5043
My country has been My country has been My country has been LESSMORE affected than other affected ABOUT THE SAME affected than other LatinLatin American countries as other Latin American countries American countries
%
... and almost 6 in 10 say Colombia has been lessaffected than “wealthier” countries.
23Thinking about the effect of the global economic downturn on your country, do you think your country has been affected
more, less, or about the same compared to richer countries?
Impact of Recession on Colombia vs. Richer Countries
70
60
50
40
30
20
10
0
1922
My country has been My country has been My country has been LESSMORE affected than affected ABOUT THE SAME affected than
richer countries as richer countries richer countries%
59
24
THE RECESSION’S IMPACT ON LIFESTYLE
Colombians consider ivory-tower politicians,class inequalities, crime and corruption as the primary
social impacts of the recession.
How much do you agree or disagree with each of the following statements?
25
% who agree
Politicians in my country are out of touch withhow the average person is being affected by the
global economic downturn
I worry that the global economic downturn iswidening the economic gap between the rich
and the poor in my country
I’m worried that crime in my neighborhood willincrease as people fall on hard times
Government corruption in my country is as badas it has ever been
My social class is being dealt an unfair blowbecause of this global economic downturn
I have started to notice that the values in mycountry have changed a bit as a result of the
global economic downturn
The economic crisis has brought me closer tomy friends and family
The economic crisis has distanced me from myfriends and family
77
76
75
67
64
57
35
20%
Behavior-wise, people are retrenching to their homes ...
Some people have told us that recently they have made some changes in how they are spending their time.Looking at the list of activities below, are you doing each more often, less often, or
about the same amount as you did before the global economic downturn?
26
Going to concerts/theatre
Going out to the movies
Going out to clubs, bars
Going out to eat
Going out shopping
Going out to parties/events
Spending time at home
4
5145
6
4054
2
6038
7
4350
5
5243
4
5145
46
648
MoreSameLess
Changes in Social Behavior as a Result of the Downturn
%
Going to concerts/theatre
Going out to the movies
Going out to clubs, bars
Going out to eat
Going out shopping
Going out to parties/events
... especially women.
5547
27
% Doing Activity LESS by Gender
4238
6158
4837
6143
4644 Women
Men
Some people have told us that recently they have made some changes in how they are spending their time.Looking at the list of activities below, are you doing each more often, less often, or
about the same amount as you did before the global economic downturn?
%
To cut back on spending
I want to spend more time with my family
There seems to be less going on (parties,concerts, etc.)
Because most of my friends are
I improved my home entertainment/bought newitems for home entertainment
Because of crime in my neighborhood
As one might expect, people are spending more time at home primarily to cut back on spending.
You mentioned that you have been spending more time at home recently.What are the reasons you have been spending more time at home?
74
28
Why People Are Spending MORE Time at Home
45
15
12
12
5
%
Crime is a prime driver of anxiety ...
Now, we’d like to talk to you about crime in your neighborhood.How concerned are you about crime in your neighborhood?
29
60
50
40
30
20
10
0
22
45
25
8
Very Somewhat Not very Not at allconcerned concerned concerned concerned
67
33
How concerned are you about crime in your neighborhood?
%
... and it appears that the downturn may be contributing ...
Thinking about the past year, has your concern about crime in your neighborhood increased, decreased, or stayed the same?
30
%
Increased Stayed the Same Decreased
80
70
60
50
40
30
20
10
0
6
40
54
How has your concern about crime changed over the past year?
80
70
60
50
40
30
20
10
0
... though crime-related anxiety is not impacting the daily lives of many.
Have you changed your routine at all due to your concern about crime in your neighborhood?
3430
Yes No
31
6670
WomenMen
%
Has your routine changed due to concerns about crime?
Not wearing certain pieces of clothing oraccessories so I don’t attract attention
Choosing to shop in different areas/stores
Not going out at night
Going out less often than I used to
Making sure that when I am out, I am not alone
Choosing different methods of transportation
Buying fewer luxury items
Entertaining myself and friends at home so Idon’t have to go out as much
Those who have changed their routine have adopted coping mechanisms impacting various areasof their lives, from shopping in different areas/stores
to showing less bling to going out less often.
And how or what have you changed?
6554
5860
5350
4550
4939
3036
3134
1416
32
Has your routine changed due to concerns about crime?
Among those who have changed their routine due to concerns about crime%
WomenMen
33
MEDIA AND THE RECESSION
As in most markets, people understand the downturn as much as it affects them but don’t
possess an in-depth understanding.
How much would you say you know about the global economic downturn?
34
60
50
40
30
20
10
0
9
59
32
0I know a lot I know a fair I’ve heard of it, I’ve never
about it amount about it but that’s about it heard of it
Knowledge of the Global Economic Downturn
%
Colombians get their news through several sources, primarily TV and the Web ...
About how often, if at all, do you get your current news and information from each of the following?
35
100
90
80
70
60
50
40
30
20
10
0
87
70 65 63
TV Online Radio Newspaper
% of people who use source for news at least once a day
%
... which have been a source of information about the downturn.
Have you watched/read/heard reports about the global economic downturn from your usual news and information sources?
36
100
90
80
70
60
50
40
30
20
10
0
94 90
Yes No
6 10
WomenMen
% of people who saw news about the downturn through their usual news and information sources
%
Most Colombians feel the media has covered thedownturn in the right proportion. If anything, there’s
been a bit more coverage than they’d like.
And do you think the media has been giving reports about the global economic downturn too much, too little,or just enough coverage?
37
%
Too Little Right Amount Too Much
80
70
60
50
40
30
20
10
0
2215
63
Has the media coverage of the downturn been ...?
But nearly half are unaware of predictions that LatinAmerica will enter a recession this year.
Are you aware of the recent reports that Latin America will enter a recession in 2010?
38
%
Yes No
80
70
60
50
40
30
20
10
0
45
55
Awareness of reports that Latin America will enter a recession in 2010
39
SHOPPING BEHAVIORAND THE RECESSION
Paying closer attention to prices while I’m shopping
More actively looking for items on sale
Doing more comparison shopping to make sure I get the best price
Buying only when I am close to running out of something
Buying more store brands/private label brands
Shopping more at discount or less expensive stores
Switching to lower priced brands
Buying smaller amounts of items, more often
I haven’t changed my spending habits as a result of the recession
Using more coupons
Buying more in bulk
In the past year, most people have taken some steps in response to the global downturn—though
these are more passive than active.
Now, we would like to talk to you about your shopping over the past year. Please take a moment and think about how yourspending habits have or have not changed over the past year when it comes to what you buy for your household (i.e., groceries,
supplies, etc.). Which of the following, if any, have you begun to do as a result of the global economic downturn?
68
64
58
52
41
39
30
19
17
15
40
Actions taken as a result of the global downturn
7
%
Defensive recessionary behavior seems yet to have gripped Colombians.
How much do you agree or disagree with each of the following statements?
41
% who agree strongly
I have started to cut back on things I don’t need
I have noticed my friends have cut back in their spending habits
I worry that because of the global economic downturnI won’t be able to keep up the lifestyle I am used to
I worry that because of the global economic downturnI won’t be able to attain the lifestyle I want
I haven’t personally felt the effects of the recessionbut have modified my spending habits just in case
The recession hasn’t really changed what I do in my everyday life
46
28
24
20
18
17
%
LOOKING TO THE FUTURE:THE NEXT GENERATION
42
While only about half of Colombians are generallyanxious, 8 in 10 are anxious about the world theirchildren and their children’s children will inherit ...
Given everything that is going on in the world, the country, and your family’s life, how nervous or anxious would you say you areabout the world your child(ren) or grandchildren will inherit?
43
100
90
80
70
60
50
40
30
20
10
0
58
79
7
29
Anxious about Anxious about Very Anxious Very Anxious aboutthemselves their children/ about themselves their children/
grandchildren grandchildren
% of people anxious about themselves vs. anxious about the future for their children/grandchildren
% Among those who have children
... which tends to manifest in financial concerns.
How much do you agree or disagree with each of the following statements?
44
% agreeing strongly or somewhat
I worry about the effect this economy will have on theability of my child(ren) to find a good job
I worry about my ability to afford the type of educationI’d like for my child(ren)
I worry about my retirement funds and that I maysomeday have to rely on my child(ren) for help
This is a good lesson for my child(ren) about living within your means
I’ve lived through recessions before, and so did myparents—my child(ren) will be just fine
The schools are doing a good job of teaching mychild(ren) about the recession
76
76
71
66
43
34
% Among those who have children
BRAND OPPORTUNITIES
45
BRAND OPPORTUNITIESThe Chinese character for “crisis” contains twocharacters to be read concurrently: danger andopportunity.
More than being seen as a barrier, the crisis isregarded as an opportunity that some companiescan capitalize on.
46
BRAND EXAMPLESBCSC: Helping people to save again
While the global economic crisis has affectedColombia, few brands seem to be trying to reducethe level of anxiety among consumers. A notableexception is Banco Caja Social BCSC (“Your friendlybank”), which has created a product that meetsthe needs of customers in this recession.
Maintaining a savings account in Colombia is expensive, with various feesand charges, so BCSC launched a free account and added incentives forcustomers to meet savings goals. A print ad says: “Let’s celebrate that wecan finally start saving again.”
47
BRAND EXAMPLESSedal: Giving women what they wanted but could not afford
This hair brand developed a promotion forColombian women based on the insight “Ihave no reason to wait until the crisis passesto make and take what I’ve always wanted.”The target was women whose ideal role inlife is to study, work and engage in thehome. Women had to send three Sedal labelsto enter in a weekly drawing; prize moneywas awarded for spending on clothes, tostudy, to travel or to buy housewares.
48
BRAND EXAMPLESCODENSA: Credit for all
The energy supplier in Bogotá, Codensa, decided to venture into thefinancing of appliances, creating Crédito Fácil Codensa (Easy CreditCodensa), a program aimed at low socioeconomic levels. The idea is toimprove quality of life, giving people the opportunity to get things they’vealways wanted but were unable to afford outright, especially not during aneconomic crisis. Participants can pay for more than 120 brands of householdproducts through their Codensa energy bill, in up to 48 installments.
49
THANK YOU
Alexandra SuarezMarket Research Director
JWT Latin America
www.AnxietyIndex.com
Mark TrussDirector of Brand Intelligence
JWT Worldwide
(c) 2010 J. Walter Thompson Company. All Rights Reserved.
Ann M. MackDirector of Trendspotting
JWT Worldwide
