1. ISSUES THAT WILL
20
AFFECT CORPORATE
COMMUNICATIONS AND PUBLIC
AFFAIRS STRATEGIES IN ASIA
PACIFIC
DAVID BRAIN, PRESIDENT & CEO,
EDELMAN ASIA PACIFIC, MIDDLE EAST & AFRICA
WRIGLEY CONFERENCE, FEBRUARY 2014, DELHI

2. CURRENT EDELMAN & MARS WORLD
U.S.
MARS PETCARE (BANFIELD, NATURAL
CHOICE, GREENIES AND NUTRO CORPORATE
AFFAIRS)
WRIGLEY ORAL HEALTHCARE PROGRAM
WRIGLEY GLOBAL CORPORATE
CHINA
MARS GOVERNMENT AFFAIRS/PUBLIC AFFAIRS
MARS AND WRIGLEY CORPORATE
MARS PETCARE
WRIGLEY EXTRA ORAL HEALTHCARE PROGRAM
& DOUBLEMINT
MARS CHOCOLATE
IRELAND
MARS CHOCOLATE
MARS PETCARE
MARS FOOD
WRIGLEY ORAL HEALTHCARE
PROGRAM
SWEDEN
WRIGLEY BRANDS &
ORAL CARE “DOING
GOOD” PILOT
RUSSIA
MARS CORPORATE
JAPAN
ROYAL CANIN
UNITED KINGDOM
WRIGLEY ORAL HEALTHCARE PROGRAM
WRIGLEY PROJECT NEW GENERATION
MIDDLE EAST &
NORTH AFRICA
WRIGLEY ORAL HEALTHCARE
SOUTH AFRICA PROGRAM & EXTRA BRAND
WRIGLEY ORAL HEALTHCARE
PROGRAM
AUSTRALIA
MARS PETCARE
MARS FOOD
MARS CHOCOLATE
HONG KONG
WRIGLEY BRAND
WRIGLEY CORPORATE
CZECH REPUBLIC
WRIGLEY BRAND
MARS CHOCOLATE

3. #1
ECONOMIC GROWTH
HAS GONE FROM A
RANGE OF
=2 -G1O0V%ERN TMOEN T0S- 6(E%LECTED OR NOT)
UNDER PRESSURE TO SHOW THEY ARE
PERFORMING WHICH CAN MAKE THEM
UNPREDICTABLE TOWARDS BUSINESS AND
BRANDS, ESPECIALLY ‘FOREIGN’ ONES
= MORE IMPORTANT THAN EVER TO SHOW
WIDER ECONOMIC, SOCIAL AND
ENVIRONMENTAL CONTRIBUTION

4. #2
HOWEVER, ECONOMIES ARE
STILL GROWING AND AP HAS
MORE PEOPLE STILL
ENTERING THE ‘MIDDLE
CLASS’ THAN ALL OTHER
REGIONS COMBINED

5. THREE QUARTERS OF GLOBAL GROWTH FOR THE NEXT 15
YEARS WILL COME FROM EMERGING MARKETS
…AND AS A RESULT, EMERGING MARKETS WILL
REPRESENT WELL OVER HALF OF GLOBAL GDP BY
2025
NEARLY THREE-QUARTERS OF GDP GROWTH
WILL COME FROM EMERGING MARKETS…
SHARE OF GDP GROWTH, 2010-25
100% = $50.2 TRILLION USD RER1
TOTAL GDP
$, TRILLION
113
DEVELOPED
ECONOMIES
26
74
EMERGING
ECONOMIES
60 EMERGING
63
23
53 DEVELOPED
40
2010 2025
1 REAL EXCHANGE RATE (RER) FOR 2007 IS THE MARKET EXCHANGE RATE. RER FOR 2025 WAS PREDICTED FROM DIFFERENCES IN THE PER CAPITA GDP GROWTH
RATES OF COUNTRIES RELATIVE TO THE US
SOURCE: MCKINSEY GLOBAL INSTITUTE MCKINSEY & COMPANY

6. WORLD POPULATION
BILLIONS
THE GLOBAL CONSUMING CLASS
WILL SEE RAPID GROWTH IN THE
NEXT DECADE RESULTING IN AN
ENORMOUS CONSUMPTION BOOM
5.2
CONSUMING
7.9
6.8
2.4 4.2
WORLD CONSUMPTION1
$ TRILLIONS
64.0
22.0
OTHER 38.0
1.2
CLASS
NON
CONSUMING 4.0
CLASS
4.4
3.7
EMERGING
MARKETS
CHINA
OTHER
DEVELOPED
MARKETS
UNITED
STATES
10.0
2.0
15.0
11.0
8.0
19.0
15.0
1990 2010 2025 2010 2025
1 CONSUMPTION INCLUDES FMCG AND NON FMCG CATEGORIES
SOURCE: MCKINSEY GLOBAL INSTITUTE MCKINSEY & COMPANY

7. #2
HOWEVER, ECONOMIES ARE
STILL GROWING AND AP HAS
MORE PEOPLE STILL
ENTERING THE ‘MIDDLE
CLASS’ THAN ALL OTHER
REGIONS COMBINED
= HUGE APPETITE FOR PRODUCTS AND BRANDS
THAT MARK PERSONAL PROGRESSION AND
SIGNIFY SELF WORTH
= TRUST IN COMPANIES THAT OFFER DECENT
CAREERS AND PROPER PARTNERSHIP
= HQ WILL LOOK TO APAC FOR GROWTH AND TO
PA/COMMS TO PROMOTE AND PROTECT

8. #3
FROM TIER ONE TO
TIER TWO, THREE,
FOUR AND FIVE

9. 9
CHINA URBAN CLUSTER LANDSCAPE

10. NEARLY 60% GLOBAL GDP GROWTH - $30 TRILLION - WILL COME FROM 600 CITIES
GLOBAL GDP GROWTH 2010-25
10
EMERGING 440
DEVELOPED 160
OTHER EMERGING
OTHER DEVELOPED
GLOBAL GDP, 2010
PERCENT CONTRIBUTION
100
18
36
18
28
PERCENT CONTRIBUTION
100
47
17
27
9
MCKINSEY & COMPANY

11. #3
FROM TIER ONE TO
TIER TWO, THREE,
FOUR AND FIVE
= AS WEALTH SPREADS, COMMUNICATIONS
AND MARKETING HAS TO FOLLOW IT TO
NEWER AND SMALLER CITIES AND REGIONS
= REGIONAL ISSUES/STAKEHOLDERS DIFFERENT
AND NEED DIFFERENT PROGRAMMING AND COMS
STRUCTURES AND RESOURCES

12. #4
THE RISE OF INEQUALITY
…BETWEEN RICH AND POOR, URBAN AND
RURAL, EDUCATED AND UNEDUCATED,
CONNECTED AND UNCONNECTED IS
PUTTING PRESSURE ON GOVERNMENTS,
CULTURES, BUSINESSES AND BRANDS TO
BE SEEN TO BE FAIRER AND MORE
INCLUSIVE, AND NOW BETWEEN
TRUSTERS AND MISTRUSTERS!
= INCREASINGLY IMPORTANT TO CONTRIBUTE
ON SOCIAL MOBILITY / SOCIAL INCLUSION

13. #5
THE RISE OF PLURALITY
EVEN IN ONE PARTY STATES, SOCIAL
MEDIA HAS SPARKED AN EXPLOSION
IN SELF EXPRESSION AND ACTIVISM
THAT CAN FOCUS VERY QUICKLY ON
POLITICS, BUSINESS OR BRANDS IN
BOTH A NEGATIVE AND POSITIVE WAY
(BOTH ONLINE AND OFFLINE)

15. #5
THE RISE OF PLURALITY
EVEN IN ONE PARTY STATES, SOCIAL
MEDIA HAS SPARKED AN EXPLOSION
IN SELF EXPRESSION AND ACTIVISM
THAT CAN FOCUS VERY QUICKLY ON
POLITICS, BUSINESS OR BRANDS IN
BOTH A NEGATIVE AND POSITIVE WAY
(BOTH ONLINE AND OFFLINE)
= INCREASINGLY IMPORTANT, AS IN WEST,
NOT TO BE DRAWN INTO POLARISING
ISSUE(*)

16. #6
…AND YET, IN MANY
MARKETS BUSINESS MUCH
MORE TRUSTED THAN
GOVERNMENT SO BUSINESS
NEEDS TO LEAD DEBATE

17. 50%
GLOBAL GAP OF 14 PERCENTAGE POINTS BETWEEN TRUST IN BUSINESS AND
GOVERNMENT
TRUST IN BUSINESS VS. GOVERNMENT
BUSINESS
GOVERNMENT
Q11-14. [BUSINESS IN GENERAL & GOVERNMENT IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is
right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-
country global total.
17
HIGHER TRUST
IN GOVERNMENT
HIGHER TRUST IN BUSINESS
20+ PT. HIGHER TRUST IN BUSINESS
58%
63%
73%
70%
58%
82%
45%
79%
45%
58%
38%
41%
45%
72%
56%
62%
43%
53%
57%
49%
59%
77%
43%
71%
54%
39%
82%
51%
44%
17%
28%
34%
23%
53%
19%
53%
24%
37%
18%
21%
27%
54%
42%
51%
32%
45%
49%
45%
56%
76%
43%
75%
60%
45%
88%
63%

18. #7
MORE THAN EVER,
REGULATORY ISSUES ARE
REVENUE AND PROFIT ISSUES

19. REGULATORY ISSUES MEANS SIGNIFICANT VALUE AT STAKE ACROSS INDUSTRIES
19
ESTIMATED SHARE OF EBITDA AT STAKE
PERCENT
CONSUMER 20-25
BANKS 50-60
ADVANCED INDUSTRIES 50-60
HEALTH CARE 25-30
TELECOM 40-50
TRANSPORT 45-55
ENERGY 35-45
RESOURCES 30-40
SAFETY CONCERNS AND REGULATION, TAXATION,
LICENSE TO TRADE REGULATION
CAPITAL REQUIREMENTS, SYSTEMIC REGULATION (‘TOO
BIG TO FAIL’), CONSUMER PROTECTION
GOVERNMENT SUBSIDIES, RENEWABLE REGULATION,
CARBON EMISSION REGULATION
MARKET ACCESS, GENERICS REGULATION, SUBSIDIES
AND REIMBURSEMENT, REPUTATION
TARIFF REGULATION, ACCESS TO INFRASTRUCTURE, FIBER
DEPLOYMENT, LICENSING, SPECTRUM
PRICING REGULATION, LIBERALIZATION OF SECTOR
TARIFF REGULATION, RENEWABLE SUBSIDIES,
INTERCONNECTION
STAKEHOLDER ENGAGEMENT FOR ACCESS RIGHTS,
REPUTATION RISKS
MCKINSEY & COMPANY

20. A CALL FOR GREATER REGULATION ACROSS ALL SECTORS
GOVERNMENT REGULATION OF BUSINESS AND SECTORS - CHINA
20
57%
51% 52%
84%
19% 19% 21%
Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right
amount? (Not Enough, Too much) Informed Publics. Q262. When it comes to government regulation of the financial services industry, do you think that your
government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q263. When it comes to government regulation of
the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics. Q264.
When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right
amount? (Not Enough, Too much) Informed Publics
3%
Government Regulation of
Business
Government Regulation of
Financial Services Industry
Government Regulation of the
Energy Industry
Government Regulation of the
Food & Beverage Industry
Not Enough Too Much

21. #7
MORE THAN EVER,
REGULATORY ISSUES ARE
REVENUE AND PROFIT ISSUES
= DOES YOUR BUSINESS UNDERSTAND
THIS?
= ARE YOU RESOURCED SUFFICIENTLY?

22. #8
FOOD QUALITY AND FOOD
SAFETY ARE ‘ELECTRIC RAIL’
TOPICS IN MANY MARKETS
= WHICH DRIVES A FIERCE GOVERNMENT
AND SOCIAL SPOTLIGHT AND REACTION TO
ANY FOREIGN FIRM HELD RESPONSIBLE

23. #9
RISE OF OBESITY
ASIANS ARE GETTING FATTER AND HEART
ATTACKS AND DIABETES ARE INCREASING
(ESPECIALLY AMONGST CHILDREN) WITH
THE ATTENDANT NEED FOR BRANDS TO BE
SEEN TO EDUCATE AND INFORM
= ARE WE DOING ENOUGH?
= IS IT IN LINE/IN ASSOCIATION WITH
GOVERNMENT APPROACHES?

24. #10
ENVIRONMENTAL ISSUES
ARE NOW MUCH, MUCH
MORE IMPORTANT
SMOG, CONTAMINATED WATER,
RADIATION, WOOD SMOKE, LITTER,
DEFORESTATION AND EROSION HAVE
GONE FROM BEING ACADEMIC SUBJECTS
TO ISSUES THAT MAKE LOTS OF PEOPLE
VERY ANGRY
= ENVIRONMENTAL ACTION AND COMMUNICATION
WILL BECOME A LICENSE TO OPERATE ISSUE IN
MANY MARKETS

25. #11
ATTACKS ON ‘FOREIGN’ FIRMS
AND BRANDS ARE ON THE
I…NACSR GERAOSWET H( ?S)L OWS AND
PRESSURE TO PROTECT AND
PROMOTE LOCAL CHAMPIONS
AND LOCAL INTERESTS GROWS
= WE ARE MISSION CRITICAL IN AP

26. #12
ASEAN, APEC AND
THE NEW TRADE BLOCKS

27. Trans-Pacific Partnership
(TPP)
(12 Nations)
• Australia
• Brunei
• Canada
• Chile
• Japan
• Malaysia
• Mexico
• New Zealand
• Peru
• Singapore
• US
• Vietnam
Regional Comprehensive
Economic Partnership (RCEP)
(16 Nations)
• Australia
• China
• India
• Japan
• South Korea
• New Zealand
• (PLUS THE ASEAN 10)
• Brunei Darussalam
• Cambodia
• Indonesia
• Laos
• Malaysia
• Myanmar
• Philippines
• Singapore
• Thailand
• Vietnam
“WE’VE GONE FROM 5
FREE TRADE
AGREEMENTS IN THE
REGION TO 75 AND
ANOTHER 82 BEING
NEGOTIATED.” –
SINGAPOREAN PRIME MINISTER LEE
HSIEN LOONG, ON BUREAUCRACY OF
FREE TRADE (FTA) AGREEMENTS IN
THE ASIA REGION.

28. #12
ASEAN, APEC AND
THE NEW TRADE BLOCKS
= WATCH SPECIFIC AGENDAS AND BE AWARE
THAT THE BUREAUCRATS HAVE MORE FORUMS
TO COMPARE NOTES/POLICIES ON YOU AND
YOUR ISSUES
= YOU MUST BE JOINED UP

29. #13
THIS IS THE AGE OF 24/7,
ALWAYS ON CORPORATE
COMMS
ASIA IS THE WORLD’S MOST ENGAGED
ONLINE REGION AND THE INTERNET
HAS BECOME AN AVENUE OF
COMMUNICATION, COMMUNITY, SELF
EXPRESSION AND ENTERTAINMENT
FAR BEYOND THE EXPERIENCE IN THE
‘WEST’ (AND MOBILE IS BECOMING THE
ON-RAMP)

31. 31

32. THIS IS THE AGE OF 24/7,
ALWAYS ON CORPORATE
COMMS
#13
ASIA IS THE WORLD’S MOST ENGAGED
ONLINE REGION AND THE INTERNET HAS
BECOME AN AVENUE OF COMMUNICATION,
COMMUNITY, SELF EXPRESSION AND
ENTERTAINMENT FAR BEYOND THE
EXPERIENCE IN THE ‘WEST’ (AND MOBILE IS
=B EGCEOT MININ TGO TUHCEH OWNIT-HR AYMOPU)R INNER NERD,
OR HIRE ONE
= YOU OR YOUR AGENCY MUST HAVE 24/7
LISTENING AND ANALYTICS AND A
RESPONSIVE CULTURE
= HUGE OPPORTUNITY TO BOTH PROMOTE
AND PROTECT REPUTATION WITH
STAKEHOLDERS

33. #14
GOOGLE (BAIDU, ETC.) IS NOT A
SEARCH ENGINE; IT’S A
CORPORATE REPUTATION
MANAGEMENT SYSTEM
= YOU SHOULD MONITOR KEY WORD SEARCH
TRENDS WEEKLY
= YOU SHOULD MANAGE YOUR FRONT PAGE
THROUGH AD-WORDS BUYS AND HIGH SOCIAL
MEDIA ACTIVITY
= YOU SHOULD TASK YOUR TEAMS/AGENCIES WITH
BRAND AND CATEGORY SEARCH OBJECTIVES
= CONTENT IS KING

34. #15
COMMUNICATIONS IS
MOVING FROM THE
PURELY TEXTUAL AND
RATIONAL TO THE
VISUAL AND EMOTIONAL

35. PHOTO BY// YINGUO ON FLICKR
“IN 2011, VIDEO COMPRISED THE
MAJORITY OF CONSUMER INTERNET
TRAFFIC FOR THE FIRST TIME, MAKING
UP 53% OF ALL UPLOADS AND
DOWNLOADS. BY 2015, CURRENT
VIDEO TRAFFIC WILL MORE THAN
QUADRUPLE, AND THE WEB WILL BE
TWO-THIRDS VIDEO.”
- CISCO

36. UNDERSTAND HOW CONTENT
INFLUENCES SEARCH
60%
40%
20%
0%
BLOGS
MAPS
NEWS
BOOKS
SHOPPING
IMAGES
VIDEO
(SEARCH METRICS)

37. AVERAGE URBAN DAILY COMMUTE IS
ONE HOUR
= IMPORTANCE OF MOBILE
37

38. #16
TRADITIONAL MEDIA IN
AP STILL MASSIVELY
POWERFUL AND
INFLUENTIAL, BUT LESS
‘TRADITIONAL’ THAN IT
WAS
= NEW OPPORTUNITIES FOR SPONSORSHIPS
AND ‘NATIVE’ JOURNALISM
= ONLINE THIRST FOR PIX, VIDEO AND INFO-GRAPHIC
= NEW ‘SPONSORED LINK’ TECHNOLOGIES LIKE
OUTBRAIN CAN MAKE YOUR BEST COVERAGE LAST
MONTHS

39. 39

40. #17
MEDIA IS CONVERGING
IN AP AS IT IS
EVERYWHERE ELSE

41. A NEW MEDIA ECOSYSTEM
TRADITIONAL HYBRID
OWNED SOCIAL

42. OF WEIBO TWEETS
LINK TO CONTENT
OF TWEETS IN KOREA LINK TO
CONTENT. MOST RT:
1
OF TWEETS IN SINGAPORE LINK TO
CONTENT. MOST RT:
5
OF TWEETS IN INDIA LINK TO
CONTENT. MOST RT:

43. #17
MEDIA IS CONVERGING
IN AP AS IT IS
EVERYWHERE ELSE
= TRADITIONAL, SOCIAL, HYBRID AND OWNED
MEDIA STRATEGY AND EXECUTION NEEDS TO BE
INTEGRATED AND MANAGED WITH CONTENT,
SEARCH AND NOW PAID AT THE CORE

44. #18
THE INTEGRATION
OF EVERYTHING

45. PHOTO BY//COTTONCOTTON ON FLICKR
#19
THE RISE OF
SKEPTICISM

46. #20
AP REMAINS THE
OPTIMISTIC REGION
TRUST IN GOVERNMENT, MEDIA AND
BUSINESS REMAINS HIGH AND MOST MIDDLE
CLASS PEOPLE ARE OPTIMISTIC (COMPARED
TO THOSE IN THE ‘WEST’) AND BELIEVE
THEIR LIVES ARE GETTING BETTER AND
THAT THEIR CHILDREN WILL HAVE MORE
OPPORTUNITIES THAN THEY DID AND THEY
WANT THE BRANDS AND LIFESTYLES THAT
MARK THEIR PROGRESS AND ACHIEVEMENT

47. THE TRUST INDEX: SLIGHT DECLINE IN TRUST OVER THE PAST YEAR WITH STRONG
REGIONAL VARIATIONS; MAJOR DECLINES IN POLAND, U.S. & MEXICO
GLOBAL 54
UAE 79
China 79
Singapore 73
Indonesia 72
India 69
Malaysia 65
Canada 60
Netherlands 60
Mexico 59
Hong Kong 59
Australia 58
Brazil 57
Germany 57
Argentina 53
U.K. 52
Sweden 51
S. Korea 51
S. Africa 50
U.S. 49
France 46
Japan 44
Italy 43
Turkey 41
Spain 39
Ireland 39
Russia 37
Poland 35
GLOBAL 57
China 80
Singapore 76
India 71
Mexico 68
Hong Kong 67
UAE 66
Malaysia 64
Canada 62
Indonesia 62
U.S. 59
Netherlands 59
Brazil 55
Germany 55
France 54
Sweden 54
U.K. 53
Italy 51
Australia 50
Poland 48
S. Korea 47
Ireland 46
Argentina 45
Spain 42
Turkey 42
Japan 41
Russia 36
Trust Index is an average of a country’s trust in the four institutions of government, business, media and NGOs.
20-country global total (does not include Argentina, Hong Kong, Malaysia, Singapore, South Africa, Turkey, UAE).
47
BIG TRUST
INCREASES FROM
2013
UAE +13 pts.
Indonesia +10 pts.
Australia + 8 pts.
Argentina + 8 pts.
2013 2014
BIG TRUST
DECREASES FROM
2013
Poland -13 pts.
U.S. -10 pts.
Mexico -9 pts.
DISTRUSTERS NEUTRAL TRUSTERS

48. THE ONLY COMMON THING BETWEEN
DEVELOPING ECONOMIES IS SPEED OF
CHANGE AND EXISTENCE OF A BRIDGE
GENERATION
CHANGE IN DEVELOPED ECONOMIES HAS BEEN
INCREMENTAL, BUT ACROSS AP WE HAVE SEEN BILLIONS
GO FROM POVERTY TO MIDDLE CLASS IN ONE
GENERATION AND THIS CHANGES EVERYTHING
= WE SHOULDN’T FORGET
= WE SHOULDN’T LET HQ FORGET EITHER

50. THANK YOU