Gf K Group Gf K Roper The Global

Gf. K Group Gf. K Roper The Global Leisure Trend © Copyright Gf. K NOP 2006. Proprietary and Confidential June 13 th 2006

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 1 What are Trends and how/why do we measure them? 2 The 3 rd Age of Globalisation 3 Global Leisure Trends 4 Trends in CEE and Czech Republic 5 Looking to the Future? 6 Changing Lives – Some WE Examples © Copyright Gf. K NOP 2006. Proprietary and Confidential

Gf. K Group Gf. K Roper 1 The Global Leisure Trend June 13 th 2006 What are Trends? How & why do we measure them? © Copyright Gf. K NOP 2006. Proprietary and Confidential

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 There is a difference between a trend a fad § § § A fad is short-term, often unpredictable and difficult for marketers to latch onto unless they are in at the beginning: § Diets (Atkins, GI) § Latest bestseller, hot band, hit movie § Fashion trends – skirt lengths, this season’s colours, etc A trend is a genuine, longer-term shift in behaviour patterns, attitudes or underlying values that can be used as the basis for product development and marketing communication: § The rise of the individual § Cynical consumers relying more on word of mouth At Gf. K we are concerned with trends not fads 4

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Introducing Roper Reports Worldwide: The only truly global consumer lifestyle trends study 5 Ø 25 representative countries across 5 continents per wave (30 prior to 2006) Ø 30, 000+ respondents per wave Ø Consumers 13+ years of age Ø 1, 000 - 1500 in-home, face-toface, 1 -hour interviews per country Ø Representative sampling, projectable to 1 billion consumers covering a majority of global consumer expenditure. Ø 9 waves since 1997 with over 275, 000 respondents in database v Consumer Mood v Food, Eating & Health v Personal Values v Finance v Leisure & Lifestyles v Media v Social Trends v Automotive v Global brands v Technology v Influence v Demographics

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Understanding Trends is a foundation for offering the right products and services 6 Market Segmentation and Identification of Market Opportunities - Strategic U & A Brand Positioning Concept Generation/ Building Concept Screening And Evaluation Product Engineering Consumer Trends Insights Packaging Measurement Performance Market Test (Sales Forecast) Marketing Mix-Optim. Pre Test of Advertising Pricing

Gf. K Group Gf. K Roper 2 The Global Leisure Trend The 3 rd Age of Globalisation © Copyright Gf. K NOP 2006. Proprietary and Confidential June 13 th 2006

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Globalization Has Had Three Stages Stage One: Go Global Stage Two: Think Global, Act Local Stage Three: Individual consumers Starting point: 1980 s Starting point: 1990 s Starting point: 2000 s Get your products in front of the world’s consumers and they will buy them Adapt your products to local markets and they will buy them Beware of stronger local competition AND watch for them coming to play in your backyard! In this era, the philosophy of global businesses was: Western Monologue In this era, the philosophy of global businesses was: “Translated” Western Monologue In this era, the philosophy of global businesses should be: Evolving Dialogue 8

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 What does this mean for Europe? 9 § § § MAP SOURCE: BBC Online Rising mobility around Europe: § Physical mobility as workers migrate in search of (betterpaid) jobs § Cultural mobility (or openness to new ideas and habits) § CEE as tourist venues Clearly this means that some citizens of CEE countries will look to WE countries for ideas on new lifestyles and products BUT: This will begin to be a 2 -way process

Gf. K Group Gf. K Roper 3 The Global Leisure Trend June 13 th 2006 Global Leisure Trends © Copyright Gf. K NOP 2006. Proprietary and Confidential

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Values Map: Four quadrants 11 People Fun Pleasure Enjoying life Leisure Power Tradition

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Convergence in Values Valuing Leisure Up Almost Everywhere % who say value is extremely important/very important 12 Total Global 27%, + 3 points since 1999 Leisure: Putting emphasis on free time Up 10+ points Up 6 -9 points Up by 5 points or less Stable or Down Trend: 13 -65 year-olds

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Media, Technology & Leisure Trends Spending Time with Significant Other on the Rise 13 Mean hours per week spend at various activities *trend based on 13 -65 year olds

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Media, Technology & Leisure Trends Watching Television on Decline 14 Mean hours per week spent at various activities PICTURE SOURCE: www. americanroyalarts. com *trend based on 13 -65 year olds

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Media, Technology & Leisure Trends Blurring the Lines - Home is Where You Are § § § 15 Consumers use technology everywhere And most technology is portable It’s not necessarily about one device for all things… …But being able to do the things I want in multiple places, across devices Home Console Portable Gaming System Cell Phone Home Stereo TV By Satellite Online Playing Games Online Cell Phone PC In The Car Home TV In The Car Portable Device Listening to Music Cell Phone In The Car Video i. Pod/PSP Watching TV Portable TV

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Media, Technology & Leisure Trends Blurring the Lines for Music Why? From fixed (home) 41% own a stereo* 27% listen to music over 41% are interested in Music (ranks 1 st of 35)* 22% say music is the most entertaining (ranks 2 nd in a list of 27)* the Internet (of Internet users) 24% have a car audio system 12. 7 hours per week listening to radio 30% have a portable music player 16% have a digital portable music player 12% listen to music on their cell phone (of cell phone users) *RRW 2004 To Fluid (on the go) 16

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Media, Technology & Leisure Trends TV = Convergence in the Home? 17 16% have a video camera 8% have a digital video camera 19% have a digital still camera 40% have a DVD Player/Recorder 16% have Satellite TV 53% have Cable 52% have a VCR* 24% have a video game console 1% have DVR* 2% connect to the Internet* 5% have HDTV* 3% connect to a PC *From RRW 04 9% connected to a home theater or stereo system*

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Penetration of Cell Phones and Internet More than Double in 6 Years 18 SOURCE: RRW 05

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Global Media, Technology & Leisure Trends Majority Now Use Broadband! And, as a result, do more and spend more time on the Internet % of home Internet users who use… Broadband has exceeded narrowband *2005, based on consumers 13 -65 only BB users spend almost 2 hours more (10. 2 vs. 8. 4) using the Internet/PC each week (non-work related) …. BUT SPEND LESS TIME with traditional media Broadband = DSL/ISDN, T 1, LAN, Cable or Satellite modem in 2003 -2004, (2001 -2002 does not include T 1 or LAN) Base: used Internet at home in past 30 days 19

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 However, the predominant attitude to technology is pragmatic rather than excited 20 SOURCE: RRW 05

Gf. K Group Gf. K Roper 4 The Global Leisure Trend How does CEE (& Czech Republic) compare? © Copyright Gf. K NOP 2006. Proprietary and Confidential June 13 th 2006

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Valuescope: Countries and Personal Values Fun People Sweden U. K. Spain Japan Germany Czech Republic France Australia Canada Italy Mexico Hungary USA Poland Russia Taiwan Barock, Prague, Argentina Different markets have their values centred around different characteristics Brazil Venezuela China Hong Korea Kong Turkey South Africa Thailand Philippines Indonesia India Power Egypt Saudi Arabia Tradition 22

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 How To Read Value. Scans 23 Keep in mind which values are represented in which quadrants (values don’t appear on actual scans). Japan - 2005 Color spectrum goes from low/cool (blue) to average/neutral (white) to high/hot (red). If values were equally distributed among all respondents, the entire chart would be white. General interpretation of this example: Japanese consumers focus more on social and creative values, with a notable fun leaning. 100 = expected penetration

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Valuescope: Values around Central & Eastern Europe 24 Fun People Czech Rep Hungary People Fun Power People Power Tradition Turkey Fun People Fun Power Tradition Poland Power Tradition People Russia Power Tradition

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 It is clear that Czechs are placing more and more value on Fun 25 1999 2002 2005 Zanzi. Bar, Prague,

Source; RRW 05 Hong Kong Japan Korea Taiwan The Global Leisure Trend Russia Germany Czech Republic China Italy Turkey France Hungary Philippines Spain Poland Argentina Venezuela Thailand South Africa Indonesia Saudi Arabia Gf. K Roper Brazil Sweden Mexico U. K. Canada India Egypt USA Australia Gf. K Group June 13 th 2006 Happiness Is Not the Same All Over 26 Very happy Satisfied Disappointed/unhappy

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Free Time/Leisure Time is a key part of the good life for Czechs (and Hungarians) When you think of the good life - the life you'd like to have, which of these things are part of that good life as far as you personally are concerned? Source; RRW 05 27

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Central & Eastern Europeans work average hours 28 Mean number of hours per week spend working on a paid job (based on those who are employed) Source; RRW 06

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Beer and wine consumption higher in CEE countries than globally and rising. 29 % Consumed alcohol type in the past week Source; RRW 99, RRW 05

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Czechs, Russians enjoy socialising with friends 30 Hours per week spent socialising with friends

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Fusion in Tastes Most Enjoy Experimenting with New Foods – including CEE % who enjoy experimenting with new foods Global Average: 64%, +13 points since 1997 31

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Hedonism on the Rise Developing Asia & Central Europe Lead Rise in Less Willingness to Give up Taste for Fewer Calories 32 % not willing to give up taste for fewer calories +4 +2 +3 +9 Russia +11 +2 +8

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Europeans Least Excited About Technology and Central/Eastern Europeans in Particular 33 Tech Scared Tech Uncertain Tech Pragmatic Tech Excited

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Czechs lag WE in terms of owning entertainment-related tech items (but not mobile phones) 34 % owning

Gf. K Group Gf. K Roper 5 The Global Leisure Trend Looking to the

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 CEE Consumers Are Becoming More and More Similar to Those in WE 36 § § In addition, the CEE consumer experience is becoming more and more indistinguishable. § § In terms of personal values, life goals and basic attitudes to life, consumers in CEE are becoming more and more like their counterparts in WE. The basic differentiator between WE and CEE remains economic conditions and standards of living. We expect this lifestyle convergence to continue and (economic conditions permitting) to accelerate Zlote Tarasy, due to open 2006 Mc. Donalds, Prague

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Technology Enables Documentation of Your Life: Life Caching e. g. Nokia Lifeblog 38 § § Consumers are collecting, storing and displaying their entire lives, for personal use, or friends and family, even the entire world to peruse. Human beings (fuelled by a need for self-worth, validation, control, vanity, even immortality) love to collect and store possessions, memories, experiences, in order to create personal histories, mementoes of their lives, or just to keep track for practical reasons Sense. Cam is a badge-sized wearable camera that captures up to 2000 VGA images per day into 128 Mbyte FLASH memory. Sources: 1. http: //www. trendwatching. com/trends/LIFE_CACHING. htm 2. http: //europe. nokia. com/nokia/0, 1522, , 00. html? orig=/lifeblog/ 3. http: //research. microsoft. com/sendev/project_sensecam. aspx 4. http: //research. microsoft. com/barc/Media. Presence/My. Life. Bits. aspx My. Life. Bits is a lifetime store of everything – photos, SMS, emails, etc

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Foodphones Where online trainers meet life caching and diet 39 Step 1 § Register with diet service and enter your biometric information Step 2 § § Take photos of everything you eat with your cameraphone and upload them to your account Once a week, get personalised feedback from dietician who advises on how to modify eating habits http: //www. nutrax. com http: //www. myfoodphone. com

Gf. K Group Gf. K Roper The Global Leisure Trend June 13 th 2006 Teledildonics 40 § § You and your partner don’t need to be together to have a good time! Teledildonics = sexual encounters via a web interface with a virtual partner http: //www. sinulator. com