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Market Entr y Campaigns Recommendations for Sharing Economy Companies


TABLE OF CONTENTS

1. Public Opinion Landscape 2. Sharing Economy Growth Cities: Opportunity and Risk 3. Uber Lessons 4. Principles for Market Entry 5. Campaign Framework 6. About Hudson Pacific

The sharing economy has reached a critical point in its evolution. While public opinion remains favorable to the industry, sharing economy companies are operating under a darkening cloud which has settled over the technology landscape. When it comes to market expansion, the cities that many sharing economies target for growth are hubs for policy innovation and open to new ideas. But they are also bastions of entrenched interests and prepared to push back against new competitors. The best-known sharing economy company, Uber, took a market entry approach which changed the game, for better and worse, for every company which follows in its wake. These points form the backdrop for the Hudson Pacific approach to market entry, which we base on data and our experience managing campaigns. We include a framework which is meant to be the foundation for a plan, and a starting point for conversation. Don’t hesitate to reach out to us with feedback or questions. 2


Public Opinion Landscape

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Darkening skies for tech leaders Not all tech companies are viewed equally – but skepticism toward industry is unlikely to abate

Source: SurveyMonkey polls conducted March 21–23, 2018 and Oct. 23–26, 2017. Chart: Axios

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But there’s also goodwill, which represents an opportunity Most think gig economy jobs are good for people who want flexible work arrangements

Source: Pew Research Center survey, Nov. 24 – Dec. 21, 2015

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Union membership as percentage of US employment

Meanwhile, unions face shrinking membership rolls and weakening public support 25

20

15

10

5

0 1973

1978

1983

1988

1993 Overall

Source: Union Stats

1998

2003

2008

2013

2018

Private Sector 6


These trends suggest unions will have a harder time running public, outside-in campaigns, depending instead on insider inf luence and relationships Unions face shrinking approval and growing disapproval 100

Percent

72% 52%

50

42% 20% 0 1937

1942

1947

1952

1957

1962

1967

Union Approval Source: Gallup

1972

1977

1982

1987

1992

1997

2002

2007

2012

Union Disapproval 7


Sharing Economy Growth Cities: Oppor tunity and Risk

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DC gridlock means cities take the lead on innovation While city leaders tend to be pragmatic, every city has entrenched interests, and many are bastions of organized labor

The Sharing Economy Needs to Be Better Partners With Cities

As Freelancers’ Ranks Grow, New York Moves to See They Get What They’re Due

Airbnb Will Let California Screen Hosts For Racial Bias

Airbnb, Controller Scott Stringer spar over data on rising NYC rents

How Citi Bike Started A Transportation– And Advertising–Revolution

“It’s Wheelmageddon:” San Francisco is Being Overrun By Venture-Backed Scooters

CityLab, February 2018

Fortune, April 2017

Fast Company, June 2017

New York Times, October 2016

New York Daily News, May 2018

Vanity Fair, April 2018

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This helps explain divergent views of leading sharing companies among city government officials How would you describe your city's relationship with sharing economy companies like Uber, Lyft or Airbnb? 51%

33%

4% Very Good

Source: National League of Cities

Good

6%

7%

Neutral

Tenuous

Very Poor 10


Uber Lessons

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Parsing the Uber Playbook

THE GOOD

THE BAD

T H E U G LY

Uber treated every market like a presidential primary. Set a core strategy; adapt it to local conditions; stay nimble. This feature is worth replicating.

A political campaign has a conclusion, but a market entry campaign does not. Uber sought market entry at all costs, neglecting to forge constructive relationships for the long-term.

The zero-sum approach left no reservoir of goodwill among public officials and influencers when new challenges and scandals emerged.

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Principles for Market Entr y

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Use Data Holistically RESEARCH APPLICATIONS

Data has value at every step of a market entry campaign, but especially at the outset

Audience

Message DATADRIVEN STRATEGY

Execution CONTENT

Evaluation

Identify and segment key audiences

Create and test messages

Deliver messages with discipline and focus

Evaluate and refine communications

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Think Outside-in, not Inside-out Play to your strength – and entrenched interests’ weakness Get the public on your side. Employees are by definition invested in your success. And your customers vote, too. Together these groups should form the core of an outside-in market entry strategy. Take a different approach. It will be hard to match your opponents’ inside game. In most cases, they have been at this many years, with deep roots in local politics.

Public

Engaged Public

Customers & Employees

Decision Makers

Define your contributions. Most companies have a clean slate from which to work. Data suggests a favorable climate for sharing economy companies. Take advantage of this dynamic to define your company’s economic and civic contributions, and forge productive relationships. If you don’t define yourselves, others will. Don’t neglect the inside game. You can’t do an end-run around government. Kiss the ring. 15


Emphasize Digital Your people are already there. Sharing economy companies’

support base is by definition digitally savvy. This is an advantage. Press it through an aggressive online organizing effort.

Cost effective. Cutting-edge political campaigns are shifting more resources to digital channels, where you can target with greater precision and at lower cost.

Act before your opponents up their games. Entrenched interests are generally less nimble than insurgents, and their supporters less digitally fluent. Press this advantage while you still have it.

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Campaign Framework

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A Market Entry Campaign Framework The path forward is proactive, not reactive

GOALS. Outline the objectives of the campaign. Craft success metrics and determine short- and long-term wins.

SITUATION ANALYSIS. Chart the competitive landscape, including known strengths (e.g. customer base) and known vulnerabilities (e.g. local labor opposition).

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RESEARCH. Quantify your base of support. Who is persuadable? What messages are most compelling for each audience? Which channels are best for reaching them?

ACTION PLAN. Convert the above analysis into a campaign plan which outlines activities across all channels.

EVALUATE AND REFINE. Measure progress toward goals. Maintain strategy, shift tactics as necessary.

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About Hudson Pacific

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Boutique, Not Big Agency

Our partners do the work. We founded Hudson Pacific because we love doing the work. We take pride in digging in, understanding your challenges and goals, discovering solutions and working with you to deliver on them. We limit our roster of clients so we can offer each our full attention.

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Opinion Experts & Communications Strategists David V. Iannelli

Amber N. Ott

Andrew H. Sullivan

David Iannelli has spent his 30-year career providing research and public affairs counsel to public and private sector leaders. His experience is grounded in the fundamentals of political polling, having spent ten years working with some of the pioneers in the industry, seven of those as part of the bipartisan Hart-Teeter polling team conducting the NBC News/Wall Street Journal Poll. David was president for global research at Research+Data Insights, a research company owned by Hill+Knowlton Strategies.

Drawing upon traditional opinion research methodologies and innovative analytical tools, Amber works with clients to develop effective and efficient strategies for communicating with stakeholders. Amber led multi-national communications research and analytics engagements for Research+Data Insights. She began her career at Public Agenda, a public policy research organization founded by Daniel Yankelovich, the preeminent opinion researcher and social scientist, and former Secretary of State Cyrus Vance.

David is a graduate of Northwestern University, the University of Michigan Gerald R. Ford School of Public Policy and the University of Chicago Booth School of Business.

Amber is a graduate of Vanderbilt University and the George Mason University School of Policy, Government and International Affairs.

Andrew applies his experience in politics, government and advocacy to execute campaigns that advance his clients’ business objectives, blending research, digital and grassroots strategies. Andrew was senior vice president at Hill+Knowlton Strategies, where he specialized in crisis and market entry campaigns. He has also held leadership roles at the Partnership for New York City, the New York City Council, and John Kerry's presidential campaign. In 2017 he served as the general consultant to the campaign of New Orleans Mayor LaToya Cantrell. Andrew is a graduate of Georgetown University and the Harvard Kennedy School. 22


In summary At Hudson Pacific, we take a systematic approach to public affairs, corporate reputation and crisis management. Our approach is built on a foundation of evidence, which we gather through opinion research, behavioral analysis and data analytics. We combine insights into people's beliefs with knowledge of their actions to inform recommendations on strategic communications, reputation management and campaign strategy. When the situation calls for it, we help our clients execute the plans.


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Hudson Pacific Market Entry Campaigns  
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