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. Donâ€™t hesitate to reach out to us with feedback or questions. 2
Public Opinion Landscape
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
But thereâ€™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 â€“ Dec. 21, 2015
Union membership as percentage of US employment
Meanwhile, unions face shrinking membership rolls and weakening public support 25
Source: Union Stats
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
42% 20% 0 1937
Union Approval Source: Gallup
Union Disapproval 7
Sharing Economy Growth Cities: Oppor tunity and Risk
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
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%
4% Very Good
Source: National League of Cities
Very Poor 10
Parsing the Uber Playbook
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.
Principles for Market Entr y
Use Data Holistically RESEARCH APPLICATIONS
Data has value at every step of a market entry campaign, but especially at the outset
Message DATADRIVEN STRATEGY
Identify and segment key audiences
Create and test messages
Deliver messages with discipline and focus
Evaluate and refine communications
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.
Customers & Employees
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 companiesâ€™
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.
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).
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.
About Hudson Pacific
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.
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 clientsâ€™ 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.
hudsonpacific.co email@example.com @HudPac