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10 Questions with Ivo Laurin


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July 30th, 2008 issue

JAN PŘEROVSKÝ/THE PRAGUE POST
Laurin says word-of-mouth, or WOM, marketing lets a product speak for itself through consumer use.
The Laurin File



Job title: Founder, Outbreak Media
Age: 32
Nationality: Czech
Previous position: Brand manager at Pivovary Staropramen
Education: University of Economics in Prague
With the information age in full swing, marketers are finding it increasingly difficult to reach customers through run-of-the-mill methods like TV commercials. Thirsty for new and sophisticated marketing concepts, local companies are shifting their attention to Outbreak, the first word-of-mouth marketing agency in the Czech Republic. One year after initiating successful projects for clients Stock Plzeň and Staropramen, Outbreak co-founder Ivo Laurin talks to The Prague Post about evangelist marketing, the most discussed local brands and why it pays to be an expert shot drinker.
? Can you explain the main concepts of word-of-mouth marketing?  
Word-of-mouth [WOM] is a naturally occurring phenomenon — it is not some modern hit. Essentially, it is the act of passing on information about a brand or product from consumer to consumer. In their effort to create reasons for people to talk about certain brands or products, marketers in countries such as the United States have learned how to work with WOM and given this concept a name. WOM marketing has three basic pillars. The first, which includes viral marketing, operates online and usually spreads ideas through attachments or URLs in e-mails. The second pillar happens offline, and is about creating topics that are then spread from person to person. If successful, this method can warp into the third branch, in which the topic doesn’t just receive exposure among the target group, but also among larger population groups and the media.
? What strategies do companies use to spread WOM about their products?
The techniques run the gamut. Aside from viral marketing, there is evangelist marketing, in which the marketer identifies the “leaders” in a certain product category and tries to work with them. They present these trendsetters with an opportunity to test out the product or participate in its development. WOM is not about launching a campaign during a specific time period, investing some money into it and letting it end. It’s more about planting that WOM trigger into the product itself. There is also product seeding, which operates on a higher level than the concept of randomly handing out samples at the supermarket. You distribute the product among consumers who are somehow engaged in and demonstrate an interest in that particular type of product. A certain theory alleges that trendsetters make up 10 percent of any given population, but I think it’s a bit more complex than that. Most of us are considered experts in one area or product.
? What led you to introduce this concept on the Czech market?
My colleague Dan Farkaš and I spent 11 years working in marketing communications. At one point, we realized that we were reading the same books and blogs, that we are becoming interested in something that is already happening abroad, namely in America. Eventually, we decided to found a company focused exclusively on WOM marketing. We have been at it for a year and a half.
? What WOM strategies work best here?
When we first founded Outbreak, we were very interested in the viral marketing strategy. But, after attending the global WOM summit last year, we changed our focus to evangelist programs — targeting people who influence their social surroundings in a specific category. You identify these people and create programs that allow them to influence the brand, or provide them with information they will spread around. This is the area we aim to focus on, because the competition in viral marketing is already fairly significant here.
? In your experience, how does the WOM marketing concept work for local companies?
We were recently able to test out the evangelist marketing concept for Stock Plzeň after this client introduced a new product — Fernet Stock 8000. We organized a series of events throughout the country called mix camps, and invited previously selected bartenders and young people from bars and clubs — people considered experts in drinking shots. These individuals got the chance to create rituals and cocktail combinations that were suitable for this drink. It wasn’t about telling these people how to drink Fernet Stock 8000, but about letting them invent it themselves. This was the first step in our long-term collaboration with these trendsetters. Now, after the mix camps ended, we are moving on to a wider distribution model. Those who participated in the mix camps are now distributing the drinks in their bars and inviting customers to take shots with their favorite ingredients, such as chili peppers and gummy bears.
? Are local businesses attracted to this concept?
There is high interest, for various reasons. Most marketers realize that the influence of classic media channels is declining. Our lifestyles are more active now than they were 15 years ago. Instead of spending our free time in front of the TV, we’re going out, running away from classical media and making ourselves harder to reach. This is especially true for the younger target group, which is capable of chatting online while watching TV, sending text messages and listening to music. Marketers understand this, and are looking for new ways to reach these people. At the same time, many clients see WOM as something new and sexy. Both large providers and small companies seek us out. Right now, we are working on deals with a GSM provider and providing consulting services to a hairdresser, among other things. It’s quite versatile.
? Does WOM work for all types of products?
We often have to turn down assignments, either because the category is completely low-interest or the product isn’t superlative in any way. With WOM, it is extremely important to work with a product that exceeds — or at least meets — consumer expectations. Otherwise, the WOM activity can turn against the brand. People will tell each other if the product does not work.
? Are there any ethical concerns?
Even WOM has its dirt. One of the techniques I’ve observed here is the use of fake identities during online product discussions. For example, someone posing as a housewife will participate in a forum and start pushing a certain product. These activities damage the WOM concept, which works best when it is completely transparent.
? What are some of the most discussed brands in the Czech Republic?
When we conducted our survey in 2007, the most discussed brand was Telefónica O2, followed by the other major mobile providers. In the case of O2, people discussed the quality of the services the company was offering. Among the most negatively discussed were banks and financiers. Kofola and Vodafone had lots of discussion about their advertising executions. It doesn’t only concern banks — when it comes to face-to-face service, there’s still a lot to be done.
? Have you observed any trends that are specific to Czech consumers?
Classical advertising channels such as TV or radio commercials still play a large role here, as they do in the rest of Europe. However, the level of trust in those channels is significantly lower here and in other post-communist states than it is elsewhere. For 40 years, any official information delivered by the media had to be taken with a grain of salt. Then, after 1989, people got very excited about commercials. It was something entirely new. Suddenly, there were all these amazing foreign brands and colorful clips. Before, all we had were ads for apples and canned fruit. At first, people loved it, but now they have sobered up.
Want your manager to answer our 10 Questions? Contact Markéta Hulpachová at mhulpachova@praguepost.com


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