Posts in CMO

Digital commerce redirects the future of retail

June 27th, 2019 Posted by CMO, consumer behavior, Consumer insight, Digital marketing, e-commerce, food retail strategy, Retail brand building, retail brand relevance 0 comments on “Digital commerce redirects the future of retail”

Profile of refined strategy for brick and mortar

In today’s consumer-driven marketplace, staying ahead of food and lifestyle cultural swings, shopping behaviors and the significant sea changes they create, are the most important considerations to marketing strategy effectiveness. Failure to recognize and address these ongoing shifts can negatively impact brand relevance with core consumers.

Case in point:  increased traction of e-commerce occurring in most product categories consumers’ value is causing a domino effect that will drive the future of successful retail strategy. Consumers are pushing harder on their preference for retail uniqueness, differentiation and memorable experiences. In the first of our two-part series we will look at implications of digital commerce to retail, and in part 2 we’ll peel the onion on what’s coming for CPG brands.

Home is where the heart, wallet and shopping reside

As consumer friction declines in e-commerce purchases and fulfillment, the inevitable move to online-ordering convenience will continue to grab share momentum. This trend is starting to amass a variety of ancillary impacts, such as consumer preference for the exceptional retail experience over the mundane. When the very definition of convenience to satiate needs transfersfromregional zones toarmchairs and screens in the family room, retail businesses are now being challenged  to adjust their optics and embrace new cultural (read consumer) priorities sooner rather than later.

  • This is an inevitable transition. In a recent report from Federal Express, the granddaddy of quick delivery is projecting e-commerce growth will double the number of packages shipped to 100 million per dayby 2026.

The point-and-click ease of fulfilling product ‘wants’ creates a companion outcome: less and less venturing out from the four walls of the residence. More in-home purchase and consumption of everything. More online comparison shopping. More emphasis on consulting consumer reviews. Along with this at-home shopping revolution is a declining tolerance for the routine hassles of destination shopping and the time requirements to drive, park and walk. How far will people be willing to go for a shopping experience that has nothing special to offer — what’s really going to pull them from that point-and-click simplicity?

Experience with the endless shelf of digital commerce will adjust expectations of ‘want it now’ and cause people to be less forgiving of retail out-of-stocks and more limited assortments. With it, the added value premium on exceptional in-store experiences goes up as anything that feels commodity-like will yield to the ease of electronic ordering.

Trends ahead and the emergence of micro-trading areas –

Consider the long-term impacts of the decline in car ownership (once a defining metaphor for personal financial success and independence), alongside the emergence of driverless delivery vehicles and drones. Distance-confining legs, scooters and bikes are increasingly common modes of urban transportation. Witness the explosion of online restaurant and ghost- kitchen prepared food delivery that jumps squarely on the never-have-to-leave-home bandwagon.

As retail shopping becomes increasingly commoditized, there is a growing consumer thirst for scarce and transcendent experiences, more personalization and meaningful relationships with retail banners that matter. This may play against the vanilla, conventional character of some chain store concepts that can feel derivative, common and maybe even a bit boring.

By definition, the chain model depends on consistency and mechanization to achieve operating efficiencies and the ability to replicate at scale. Is it possible to rethink the business paradigm to allow for different designs, footprints and merchandise collections more attuned to the community they serve?

As convenience gets a makeover, with it comes a premium on re-casting what a trading area looks like to smaller circles of proximity. Alongside this condition we observe the continued idealization of the “small town” as a colloquial, romantic reference point for aspirational lifestyles. In urban areas this puts an increasing premium on reflecting neighborhood character and shopping within walking distance.

In Chicago, a fair example of this is Andersonville, a northside city neighborhood known for its Clark Street shopping district packed with unique collectible stores, fashion boutiques, local restaurants – all walk-able within a three-block core. Stands to reason this ‘go smaller’ development favors shopping experiences that mirror the lifestyle characteristics and populace of the neighborhood.

For retail we see five implications for planning strategy:

  1. Increased pressure on the viability of destination shopping centers, as convenience is recast within shorter distances from home.
  2. The rise of smaller footprint store designs that align with neighborhood shopping areas.
  3. Emergence of retail concepts based on lifestyle experience more so than the traditional array of shelves and merchandise. Instead the attractions are ideas, emotion and guidance rather than pushing merch off fixtures (a twist on omni-channel commerce strategies).
  4. Recognition that the future is with those who work to build bonds and relationships beyond just stocking inventory at a price.
  • Expect to see a host of novel ideas develop in service of more relevant lifestyle associations such as on-line dating brand Bumble and their wine bar café concept and Taco Bell’s new hotel.
  1. The bifurcation of omni-channel strategies to embrace exceptional experience that reside inside the retail store front while volume objectives are delivered online. How will this symbiotic hand-off work between high touch retail and digital convenience? Only the seamless survive.

Speaking of smaller footprint concepts, if people are increasingly food shopping for meals and menus more so than stock-ups, does it make sense to force them to search for 7 to 12 items in an 80,000 square foot maze? Can food shopping be made more fun and less of a navigational chore by specializing in what’s for dinner?

ALDI, a darling of grocery hard discount, recently announced an expanded test of their new “Local” store concept in the United Kingdom. The 6,000 square foot stores operate with 300 fewer SKUs than the normal ALDI. Proof that hard discount does not mean absence of insight, relevance and creativity.

Larger trend: ‘Extremeification’ of retail in America

Robinhood, the investment platform for non-one-percenters, recently reported examples of the growing bookends of success between the higher and lower ends of the retail spectrum — while the middle falls away. Restoration Hardware (RH) continues its relentless march towards further upscaling its retail roots. After recently posting a 7% gain in sales, RH stock shot up 25% on the related news of its new chic catalog concepts RH Beach House and RH Ski House. As well LVMH (Louis Vuitton Moet Hennessy) and Dollar General are celebrating record highs at the same time in their share prices.

Yoga pant purveyor Lululemon reports Spring quarter revenue of $782 million vs. its period forecast of $755 million, despite increased competition in its category. Last quarter profits hit a record $97 million. Hard discount and heavenly experience collectively show how disparate propositions that lean in heavily on their mission and ethos are advancing.

You have to stand for something — and go all in (go low or go high). In fact that’s really the message here. The future of retail belongs to the innovators who go deep on uniqueness and memorable experiences — which by definition requires focusing the concept and target audience appeal to a specific need and cohort. All things to all people is often a recipe for ambivalence.

Find your core, narrow your appeal, optimize your mission and go for it.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

Don't undercut investments in experienced marketing guidance

The Woeful Challenges of Marketing Inexperience

May 29th, 2019 Posted by brand marketing, brand strategy, CMO, Content Marketing, Digital marketing, Emerging brands, Marketing Strategy 0 comments on “The Woeful Challenges of Marketing Inexperience”

Building an emerging brand when you don’t know what you don’t know

If ever there were a time when new emerging food and beverage ideas have a chance at stardom, the golden age has arrived. Investment capital is flocking to the culturally relevant and unique, while new food ideas and innovations are popping up right and left. While the barriers to entry are lower than ever, the stakes and requirements for sound strategy are accelerating rapidly as more emerging brands compete for share of limited consumer attention and stomach. This, by the way, was the genesis idea underneath creating Emergent, the Healthy Living Agency.

Into the abyss entrepreneurs jump, entering the fray seeking to answer what looks to be a nearly insatiable appetite for new, higher quality, healthier and novel food and drink experiences. At the front door all appears promising in a world yearning for new and better.

Meatless meat, lab grown proteins, dairy milk without the cow, probiotic and prebiotic, keto kits, ancient grain snacks, pea protein-infused everything – and now in the developing pipeline – food-as-medicine. Whew. Yet many of these aspiring enterprises will encounter critical interruptions along the path; challenges to scaling the business that will relegate some to permanent small ball status and others to the heap of failed concepts.

Marketing plays a significant and important role in mitigating the challenges that exist in moving from very early adopters to scale-able mainstream audiences and wider distribution channels. More often than not, however, we encounter the misappropriation of marketing as essentially a social buzz-making proposition. Rather, it should be a disciplined strategic asset built on a foundation of sound consumer insight.

What’s lacking in the emerging brand zeitgeist is this: experienced marketing brains and early strategic, hands-on guidance – thus why Emergent is a partner in the Food Marketing Institute emerging brands “Mentor” program. There, we counsel that marketing is not just sending out a press release, filing content routinely in social channels or retaining an influencer with a foodie follower base. It is a strategic proposition that optimizes the entire go-to-market plan for growth, effectiveness, measurable outcomes and fewer mistakes.

The eight deadly sins of marketing myopia

Here in random order are eight mistakes that can impede growth and hold the emerging brand proposition back from a leading role in the evolving food and beverage industry:

  1. A form of business grade narcissism – business in love with itself to the exclusion of what’s relevant to the consumer’s passions and interests.
  2. Absence, then, of a continuous devotion to seeking consumer insight and putting the customer at the very center of business planning. One thing to say and another to do.
  3. An undernourished mission and higher purpose that should become the driver for everything the brand stands for and its ability to acquire deeper meaning and connection with consumers.
  4. Improper positioning most frequently manifested as no real discernable positioning. This should be created through careful exploration of how best to push uniqueness and differentiation.
  5. Scattered and less relevant messaging that is the outcome of not addressing the first four sins correctly, and the vanity of assuming consumers will resonate simply because it’s there (if you build it, they will come).
  6. And messaging’s twin sister, an absence of sound strategy in trade and consumer facing communication that mirrors their lifestyle aspirations and wants. This directly impacts any opportunity for engagement.
  7. A real show-stopper: a clunky packaging presentation that dilutes impact in any crowded retail setting at a time when consumers long to know more and care about the product creation backstory.
  8. Finally, failing to fully optimize the brand’s opportunity story in the context of real-world competitive advantage and own-able equity with existing and potential investors. Experienced brand and business storytellers know how to skillfully navigate this arena.

There’s simply no margin for error

No one gets a hall pass from doing the strategic heavy-lifting to refine the brand, its meaning, how it’s presented and what is conveyed. Experienced hands are needed for this work. It can be tempting for founders to think they know marketing even when their background, training and experience does not hail from this discipline.

After all, founders understand the product from the ground up, right? Yes – but, experienced marketing players grasp the consumer, the retail environment, and know the tools to refine how the entire concept is served up, and how best to make every communications dollar work like 10.

  • Emergent’s Brand Sustainability Analysis, for example, constitutes the kind of foundational work that creates a strategic anchor for a new brand to maximize its higher purpose, differentiate the concept and imbue the story with greater consumer relevance and deeper meaning.

Yet in many cases, none of this is done as new brands hire a designer for package graphics – call it “marketing” and then call it a day. Evidence of the oh-so-powerful axiom: you don’t know what you don’t know. Some of the more fully funded emerging businesses have witnessed faster acceleration because they understood the long-term importance of engaging the right marketing minds at the start.

For others it seems less of a priority because, again, owners believe they can do it themselves. The honest answer here is no. In varying degrees of involvement from guide to outsourced execution, it is wiser and better to get the marketing experience in the door early for the very reason – you never get a second chance to make a first impression.

The strength created today will, pay dividends for years to come and when you start out on the right foot good things tend to follow. Success is in the eyes of the beholder certainly. That said home runs will always be more satisfying than base hits.

Luck by the way has nothing to do with it. This is hard work that requires enough time in the saddle for those at the marketing helm who can quickly recognize, develop and separate the big ideas from anything less than that.

  • Owners create extraordinary products with a story to tell.
  • Investors invest capital to fuel the effort.
  • Marketers should shape the brand and go-to-market plan, and tell the story.

A word to founders: it’s hard to let go and it is also tempting to assume you can do anything if you put your mind to it. Engaging experienced, professional marketing talent is not a nice to have, it is essential to the future of the business because you won’t achieve jet engine results if you fuel the brand with regular, unleaded expertise.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

2019 and The Future of Food and Beverage Marketing

January 17th, 2019 Posted by Agency Services, brand marketing, brand strategy, CMO, consumer behavior, Consumer insight, food retail strategy, Healthy lifestyle, Healthy Living, Retail brand building, shopper experience, Supermarket strategy, Transparency 0 comments on “2019 and The Future of Food and Beverage Marketing”

Our strategic roadmap for the year ahead…

Today we map the framework for business growth in 2019 anchored strategically to achieve trusted consumer relationships in the year ahead. As we begin this journey, it is important to note the incredibly important work by the Food Marketing Institute compiled in the “Power of Health and Wellbeing in Food Retail” report. In our estimation one of the best analyses FMI has produced in recent times.

This is a forward-thinking review created under the experienced leadership of Susan Borra of the FMI Foundation, and executed with persuasive evidence by David Orgel of David Orgel Consulting, and key data supplied by The Hartman Group. It is also a remarkable summation of what Emergent has been forecasting and publishing in various venues for the last five years about evolutionary changes in the food and beverage industry.

  • What’s ahead is a deeper dive on the strategic priorities, areas of focus for planning, and a healthy helping of relevant consumer insight data.

Thus it is job number one at Emergent: to earnestly pursue insight into the hearts and minds of consumers – their wants, wishes, dreams, aspirations, fears and concerns. It is in this effort to get ‘underneath’ that we more fully grasp how consumer relevance and engagement can be achieved. Make no mistake, it’s more difficult to be seen and heard than at any other time in modern marketing history because the consumer controls the levers of commerce – and talking ‘at them’ is a recipe for disconnect. Thus why relevance matters greatly.

Dear reader, here we will summarize the most important and salient points and data that should be reflected in go-to-market planning for the year ahead. Simply said, this is a great way to kick off the year – offering firm, insight driven strategic guidance on what matters to people and its influential link to their purchase and shopping behaviors.

Armed with this understanding, the path to trust and relationship becomes clearer. As we’ve said many times before, genuine relationship is everything. Consumers are not walking wallets; they are real, living constituents – and to the extent businesses can make a meaningful difference in their lives, the opportunity to earn affection and spending multiplies.

  • Without consumer relevance and resonance, food and beverage brands cannot gain the ear and interest of consumers who have more quality choices, more channel options, more control and power than ever before – power that will quickly mark the winners and losers in the next 12 months and beyond.

The number one opportunity for brand and food retail resonance and business traction: leveraging Health, Wellness and Wellbeing.

Consumers across all age cohorts have fully connected the dots between the quality and types of food and beverage they consume and their overall quality of life. For this reason, the very definition of health and wellbeing has expanded to include a broader array of key lifestyle attributes consumers care about such as emotional health and happiness.

Whereas “healthy” was once more narrowly defined as weight management and calories in and out, today it is about food quality and the origin story behind the food. This interest is fueled by consumer demand for transparency as a new prerequisite for creating lasting, meaningful relationships with the consumers we wish to serve.

Yes that’s serve, and not sell! Transactional thinking can infect the marketing playbook with ill-advised strategies and foster brand behaviors the consumer immediately repels as advancing the company’s commercial interests over their own; selling at them rather than cultivating their trust which precedes any willingness to spend money.

2019 Strategic Building Blocks

Five key areas demand attention in strategic planning. This list provides the basis for a holistic strategy that reflects what consumers truly care about. It goes without saying these five areas allow for a wealth of engagement from content creation to communication activities. Here they are:

  1. Health – Number one is the growing influence of healthier eating on brand choice. Healthy, by the way, is increasingly a quality story not a sacrifice game. Healthy and indulgent are cohabitating.
  2. Nutrition – Consumers are now looking at nutrition density in the foods and beverages they prefer. This tracks closely with the table stakes demand for greater transparency around product ingredients, sourcing and manufacturing. What was once described as a clean label is transforming into clear This is marked by disclosure, clarity, openness, honesty and more guidance not less.
  3. Enjoyment – Taste is fundamental to the human experience. Higher quality food experiences can be found everywhere and the use of fresher, real food ingredients is elevating the taste experiences people crave. Food is to be savored and enjoyed. It is an adventure. There’s a hedonist lurking in everyone in varying degrees.
  4. Discovery – Meal kits might offer an excellent example of how the food industry feeds low-risk culinary experimentation. The growth of new cuisines, tastes, global flavors and use of more exotic ingredients serve to expand the horizons of what consumers want and expect. We all want more choices than meatloaf and fried chicken at the Deli counter.
  5. Connection – Food is a social lubricant. It is a facilitator and player in how we relate to and engage our friends, family and business associates. No surprise here that according to the FMI report, 84% of consumers say it is very or extremely important to have a family meal together at home. People hunger for the connectivity and social discourse around the table. Food is an essential player in our social lives. Great food and great conversation are partners in life’s most memorable moments.

Two Key Strategic Trends in 2019

We stand today at the threshold of a new developing category in food and food retail. Early movers in this space stand to benefit from ‘first with the most’ opportunities that fall from being able to define what this new category is about and what constitutes best practices.

  1. Food As Medicine

This is an evolution and elevation of food and beverage solutions – products that aim to provide direct, measurable benefits to health and wellbeing. We’re not speaking just about weight management, although that is a component. We’re talking about food solutions that are an alternative to drug therapies or as preventatives to needing drug therapies.

In case after case we find that diet plays a role in the onset of disease. So, too, we’re discovering that foods high in fiber, plant sterols, Omega-3s, antioxidants, prebiotic and probiotic ingredients can be ‘dosed’ to achieve specific health benefits – without the often debilitating, unhappy side effects that can accompany medications.

Step One Foods in Minneapolis (disclosure: Step One is an Emergent client) is an excellent example of this emerging trend. Step One’s line of packaged foods including bars, smoothie and pancake mixes, oatmeal cereal and toppers are clinically proven to reduce LDL cholesterol at levels that match or exceed the outcomes from statin drugs.

It’s important to note from FMI’s report that 66% of shoppers already view foods as “medicine for their body.” When asked about food as a contributor to their health, the top five interests in solutions include:

  • Cardio-vascular health – not surprising as heart disease is the number one killer in America, and effective options like Step One speak directly to this need.
  • Weight management – a perennial concern, weight management remains connected to healthy lifestyle and a sense of wellness and wellbeing.
  • Energy – the link between energy and lifestyle satisfaction is palpable. Busy lifestyles and career demands make energy an important priority for people.
  • Brain function – memory and cognition are two areas we can expect more innovations to surface in as people increasingly look for a mental edge.
  • Digestive health – we are only beginning to see the growth in attention paid to inflammation and its role in aging and disease. This will continue to get greater innovation priority.
  1. Mining competitive advantage: Fusion of Transparency and Trust

Earning trust may be the single most important objective in the development of sound, successful marketing plans. This is due in no small part to its pivotal role in securing consumer interest and engagement and the avalanche of evidence that brand trust continues to decline.

Trust precedes any kind of brand/consumer relationship. Demand for transparency is the ante in curating trust. Consumers define transparency as “open, honest, clear and visible.” In short being transparent, providing access and more information about how food and beverages are made and what’s in them.

FMI’s report cited five key areas where consumers are looking for greater disclosure:

  • Ingredients used
  • Origin of ingredients
  • Product creation process
  • Animal welfare
  • Absence of anything artificial like preservatives or chemicals

Emergent guidance: build a suite of communications and content around how you make your products, the stories of suppliers and their work, what happens at your plant, what your standards are on quality, safety and sustainability.

It’s interesting to note, when consumers were asked who their allies are in the quest for healthy living and helpful advice, the top five sources were:

  1. Family
  2. Doctor
  3. Farmers – take note!
  4. Friends
  5. Fitness and health clubs

According to FMI’s report, when it comes to the most respected and trusted voices for guidance on healthy living, those sources include:

  • Registered dietitians
  • Personal healthcare providers
  • Wellness counselors
  • Scientific studies
  • Fitness professionals

Emergent guidance: this insight suggests the efficacy of consumer-generated content, investment in social communities and relevant content, and use of respected third parties to validate what food brands want consumers to know and believe.

Food Retail Opportunities

There will be more competitive shifts and changes for food retail in the year ahead. So how does this play out as retailers seek to re-invent themselves?

In Hartman Group’s “Food Shopping in America” Report, a consumer survey of retail channel preferences showed supermarkets scored well on assortment, products consumers want and preferred brands. But indexed lower than other channels of retail on a good place to browse and shopping enjoyment.

As center store continues to be dis-intermediated by e-commerce, competitive advantage is shifting to favor specialization and in-store experience. FMI’s report lands on two key areas of opportunity that point the way for food retails to enhance relevance and increase traction with shoppers.

The Healthy Living Coach…

Food retail has an important opportunity to answer the consumer’s desire for healthy lifestyle by assuming a stronger role in an area shoppers already think retailers can fill.

Consumers believe food retailers are a potential ally and guide on their journey to a healthier, higher quality life. The retailer can operate as coach through access to expert voices, better and healthier food solutions and providing in-store experiences or classes on healthier cooking and shopping techniques.

Nearly 50% of consumers, according to FMI’s report, say providing healthier food choices is a way to support ‘Eating Well’ which contributes to ‘Living Well.’ When asked what the components of Eating Well include, consumers saw this as an integration of healthy eating and enjoyment.

Specifically, retailers can offer:

  • Nutritious food and beverages
  • Higher quality foods
  • Portion control – eating in moderation
  • Foods with specific benefits (food as medicine)

But perhaps the most important business growth opportunity for 2019 lies in the resurgence of home cooking. According to Hartman Group survey data, 88% of consumers say they eat healthier at home than at restaurants. Home-prepared food carries with it a healthy halo. Knowing how important eating with family at home is to consumers, retailers can answer this call with greater investment in prepared food options from complete menus to meal kits and other prepped ingredients.

What’s important to note here is the enhanced demand for better quality food, unique meal experiences and culinary exploration. Thus retailers need to up there hot bar game from ribs and rotisserie chicken to more interesting, chef forward dishes.

In sum, it’s about activating wellness solutions from produce, to center store to foodservice. Putting adventure and discovery back into food shopping will go a long way to creating advantage and loyalty even as consumers move increasingly to online shopping for everything else.

We have another post coming on omni-channel strategies. Stay tuned…

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

The new marketing paradox: belief over benefit

October 18th, 2018 Posted by brand marketing, brand strategy, CMO, Consumer insight, Emotional relevance, Higher Purpose, storytelling 0 comments on “The new marketing paradox: belief over benefit”

Values even more powerful than product story

Every brand in the food and beverage universe is looking for advantage and traction in a business environment that tends to reward the unique and disruptive. What might be most telling about the shifts in consumer behaviors today, is the emergence of belief, purpose and mission as powerful platforms that connect brands with consumers.

Time to bare your soul

Since the dawn of the modern marketing and communications era, brands have been preoccupied with features and benefits. Said more simply: a laser focus on the product and its attributes. Why not, after all that’s why companies exist, right? To make a superior product and convey all of the inspiration that goes on inside it?

Except that with the rise in technology and the fall of barriers-to-entry in virtually every category have wrung out the ability to truly stand tall and alone on the mountain of superiority. Parity in virtually every category is a thing driven by tech advances that allow nearly everyone to come within shooting distance of each other on recipe, ingredients, formulation, design and related benefits. There are exceptions to this, but not a ton of them.

Sameness is a significant challenge, because despite claims to the contrary smart and adroit, informed consumers see through the marketing haze to understand that pound for pound many brands are interchangeable on the basis of product ingredients and creation alone.

Instead competition has moved now to a battle of beliefs, meaning and higher purpose. Consumers want to know what you stand for, what purpose you bring in concert with the thing you make.

Nike pounds belief and it shakes their category

The campaign around Colin Kaepernick is more Say It than Just Do It. “Believe in something even if it means sacrificing everything,” is the clarion call of our age. Whether or not you side with Kaepernick on his politics, his sacrificial stand on principle serves to put his beliefs squarely on the marketing chin. Nike celebrates the outsized commitment of this fearlessness and resolve. So what does that have to do with running shoes? Everything.

  • Consumers resonate to brands that espouse a point of view and work to enable an overwhelming desire to be part of something that is greater than themselves.

Purpose, meaning and values represent an evolution of marketing best practices — as the message moves closer to honoring the greater good than just the goods themselves.

This doesn’t imply that product communication is gone or will ever evaporate. Rather it means that higher purpose gains a pole position as an essential ingredient in the go-to-market gameplan.

As we’ve said before here at Emergent, if your company were to disappear tomorrow from the face of the earth, what would be missing from the world that people would truly miss? You can’t answer that by saying your investors and shareholders would be unhappy.

Adding value beyond the product

The health and wellness of people is an important thing. It transcends the ordinary trope of marketing as ‘please buy my product’ and places it in the rarefied air of being authentically helpful to people beyond the sale.

Here’s the irony: the degree to which brands can embrace a higher calling and become enablers of lifestyle aspirations, the more successful they will be in earning trust and permission for a consumer relationship.

To do this however, requires a more enlightened point of view about why the business exists and what it’s designed to accomplish. The goal of greater sales growth is served by emphasizing not just the sale but also a package of values that acknowledges people aren’t just walking wallets.

The Path to Higher Purpose

This is not about philanthropy and it is harder than it looks. In fact, hard enough that we have designed an entire process called Brand Sustainability Analysis to help guide a brand towards discovery or refinement of its deeper meaning.

  • Consumer insight becomes a driver to help success breakout for the very simple reason that purpose must be based on a visceral understanding of the consumer’s hopes, dreams, aspirations and concerns.

The goal is to seek alignment with these interests and the brand so it can become an advisor and guide on the pathway consumers want to follow. Health and wellness is one of those important journeys that brands should support.

The Courageous Marketer

The challenge here is the break with tradition. Features and benefit have been a default mechanism grinding the wheels of marketing for eons. We make it, we love what we make, and we sell it. To be sure. However, when trust in brands and business is at an all-time low and engagement is entirely in the hands of consumers, a different approach is required — one that will probably feel counterintuitive at first.

However once discovered and embraced, higher purpose and mission can galvanize an organization to bring focus and clarity to virtually every corner of the operation. Messaging takes on a more useful tone as the organization works to genuinely improve their users’ lives. Storytelling here immediately gets more powerful and impactful because it’s also more relevant.

Marketing no longer looks like marketing. It doesn’t walk, talk and look like a sales pitch. In doing so, trust can be cultivated. These days trust may be the most important attribute your brand can work to own. The beauty here is in the uniqueness and differentiation this path will provide.

It will require courage, but nothing worth doing can be done without it.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

Healthy Living Insight and the Future of Food and Beverage

October 1st, 2018 Posted by Agency Services, Brand preference, branded content, CMO, consumer behavior, Consumer insight, Emergent Column, Healthy lifestyle, Healthy Living 0 comments on “Healthy Living Insight and the Future of Food and Beverage”

Are you aligned on the pathway to true relevance?

What is the most powerful and pervasive condition impacting consumer product category growth across the lifestyle continuum? Effectively answering the consumer’s desire for a healthier lifestyle. This is the driving force that sits underneath Emergent’s agency value proposition and the work we do for our clients.

At the foundation of this transformational shift is an over-arching interest in a higher-quality life. Consumers believe their decisions and actions in this arena will impact personal happiness, safety and wellness.

Healthy living knocks at the front door of relevance to consumer wants and desires. It is a mindful choice made by increasingly mindful consumers across all age cohorts. Nowhere can this be seen in greater relief than food and beverage choices which have morphed in recent years from taste, price and convenience purchase drivers to a more enlightened set of criteria that pays homage to the healthy lifestyle priority.

Transparency, supply chain visibility, clean labels, ingredient quality, fresh and real food preferences are all evidence of momentum behind the consumer’s growing self-awareness. They are in charge of their lives, in control of brand relationships and thus able to exercise choice to reward those brands that are aligned with their personal interests, beliefs and needs.

  • Simply stated, consumers believe that the quality of what they consume impacts the quality of their lives. What people choose to eat manifests in their daily lives as a contribution to health, wellness, career performance, happiness, satisfaction and the ability to achieve life goals.

This is no longer a tertiary issue or a sub-segment of the larger consumer population. It is a swollen river of preference that is washing away the less relevant while rewarding the brands that mirror consumer lifestyle requirements.

How did we get here?

We can trace the origins of this shift back to the early 1990’s when the organic foods market was still emerging, and consumers started to pay attention to a new voice on how food is produced and what the differences are between factory made and farm fresh options. This became transformational when the rBST debate took hold and the organic milk business started to skyrocket as serving organic milk to children became a marker of good parenting skills.

Concurrently, the explosion of digital communication created a shift in the balance of power where anything that can be known will be known, and with it a cultural change. Now consumers want to be informed on where food comes from, how products are produced, thus enhancing the value proposition for higher quality real and fresh foods vs. packaged and highly processed legacy brand mainstays.

You are what you eat

The relationship between what people put in their bodies and how it affects health and wellness goals changed from addition by subtraction – the scientific removal of fat, sugar, sodium and the like, to a different picture of addition by addition.

People now perceive the quality of the food they eat or drink is related to the quality of their lives. This cultural swing resulted in a sea change at food retail, with center store packaged food businesses facing headwinds in share losses and volume declines. Meanwhile, the perimeter departments selling fresh and reimagined, more transparent and relevant versions of packaged stalwarts have skyrocketed.

  • Equity investment in the food space has plunged into the abyss in efforts to help scale the myriad of new, nascent food brands coming to market with quality elevations in virtually every category with a growth pulse.

Meanwhile, home cooking is experiencing a renaissance as consumers shop fresh ingredients and menus that require preparation; looking to feed their appetite for new flavor adventures. Convenience in this new world order translates to enhanced Deli menus and fresh solutions at supermarkets, and the emergence of meal kits to help curate the dinner need with prepped high-quality ingredients and tantalizing recipes.

Relevance and the future of food and beverage marketing

What does it all mean? This is what keeps the C-suite leadership teams in CPG food and beverage companies and food retailers up at night. What was once a brand controlled state in the marketplace, where heavy media spending could spell the difference in achieving quarterly results, has fallen away as consumers own and operate the levers of commerce.

Consumer control requires deft and agile moves by brands to align themselves with their desires, interests and lifestyle goals. The more powerful path in marketing is no longer lined with assertions of product features and benefits. Now the momentum belongs to brands that truly try to help and enable what their users dream to accomplish.

Marketing today is a reciprocity construct where brands earn permission for a relationship by thinking past their own product and trying to make a clear difference in their customers’ lives – be that by activating their creative aspirations in the kitchen, the social experiences around the table, or serving as a functional contributor on their path to healthy living.

Emergent as arbiter of insight and translation to strategy, better communication

This, ladies and gentlemen, is what we do at Emergent. We’ve been ahead of the trend even before healthy lifestyle became a ‘thing’ and remain a voice in the industry on this evolving landscape upheaval.

Our value proposition is bound to the insights we own on consumer interests, needs and the new marketing toolkit required to successfully leverage that understanding for business growth.

By virtue of that, Emergent is purposefully a hybrid of strategic guidance tied to creative communications, smothered in a secret sauce of consumer insight that helps inform our thinking, messaging and go-to-market ideas.

Whether you are a food retailer trying to evolve as conditions around you in e-commerce and consumer preference change, or a food and beverage brand, large or small, trying to optimize and scale the business you’re creating; we can help optimize your core proposition and add value to your efforts to gain the ear of elusive and hard-to-reach consumers.

How can we be helpful to you?

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

 

 

 

 

 

Tipping the Scale on Emerging Brand Growth

July 12th, 2018 Posted by Agency Services, brand marketing, brand strategy, CMO, Consumer insight, Content Marketing, Emerging brands, food retail strategy, Food Trend, Navigation, Transformation 0 comments on “Tipping the Scale on Emerging Brand Growth”

Writing the new rules of successful marketing

Recently Emergent became an active Mentor partner with the Food Marketing Institute’s Emerge platform. FMI, under the leadership of Julie Pryor and Margaret Core, has created Emerge to help nurture the increasingly important population of up and coming food and beverage brands. These growing businesses are gaining attention of the food buying public and occupy an ever more significant proportion of in-store real estate at food retail.

This new world of emerging brands is evidence of a dramatic shift in consumer preferences for food choices with a creation story founded in higher quality, more artisanal and sustainable attributes. These businesses are often married to a higher purpose that transcends commerce; a purpose aimed at improving the food supply, sustainable farming, battling hunger or some other altruistic commitment that imbues the business with greater meaning.

For our part, we enter the FMI Emerge relationship as Mentors – a resource that new and emerging brands most likely would not have access to until later in their development. The goal is to help scale these businesses more rapidly while avoiding some of the mistakes that can occur early in the fundamentals around marketing, packaging, distribution and channel decisions or innovation.

Reengineering of the food and beverage business

The emerging brand growth engine has attracted the interest of private equity investment and large cap CPG looking to participate in this unique, culturally relevant space. Additionally, retailers interested in leveraging this wave must adopt a new set of best practices to help support these new brands that don’t come to the table with deep-pocket promotion and brand-building budgets.

As the pendulum swings towards marketplace reward for the more entrepreneurial food brand business – where everything about their origins and path follows the beat of a different drummer than legacy CPG food brands – NEW marketing rules must also be considered and executed with commitment to maintain the specialness of these businesses.

What remains true for all participants is an interest in scale. But not scale at any cost. Great care must be exercised in building these brands to make successful expansion a reality in a shorter time span. Wrong moves can violate the very principles that sit underneath why these emerging products got traction in the first place.

Application of old-school marketing technique and thinking can interrupt and disrupt the very important reasons why consumers prefer these up and comers. It’s critical that entrepreneurs maintain the artisanal characteristics of their products which is the very reason consumers are attracted to them in their ongoing treasure hunt for new and more interesting, real food experiences.

What’s changed?

To uncover the right formula for growth, it only makes sense to understand the context that makes these businesses relevant and important to the future of the food and beverage business.

Perhaps fundamental here, is the influence of food culture cues on consumer behavior. At one time taste, price and convenience held sway in defining what consumers want. While taste remains an arbiter of anything that ultimately succeeds, other issues command consumer attention and help pull the purchase lever.

Consumers now look for cultural symbols and lifestyle relevance in the food and beverages they buy for the very reason they believe that higher quality choices help them secure a higher quality life.

Here in sum are some few of the evolutionary changes taking place which these new brands are tapping into:

  • People see food differently: higher quality, real and fresh food = higher quality and healthier lifestyle
  • Cultural markers are advancing around health and wellness, clean eating and cleaner labels, shorter ingredient lists, local sourcing, visibility to supply chain, more unique flavor profiles, even fresh versions of previously processed food ideas
  • The pace of innovation and development of new food ideas has made a quantum leap– from concept to beloved at speed — witness Ripple pea milk and Beyond Meat
  • Radical Innovation = new category creation – this is no longer a story built around line extensions of a legacy brand. Wholesale new categories and reinventions of existing ones are becoming the norm
  • Embracing small-is-good – big used to be reliable, trusted and consistent. Now craftsmanship, ingredient integrity and more culinary-inspired solutions hold sway. Smaller often translates as better quality
  • Mission mentality – what used to be understood as philanthropy has changed to represent a core belief imbedded at the onset of product development that then stretches beyond the product. It is most often anchored in a mission aimed at improving the world around us. Food brands with a true soul, if you will

Mentoring new brands

Perhaps most evident in early stages of emerging brand development are resource constraints that make optimal investments in marketing more difficult.

Yet, it also remains true that superior product experience is most vital to initial sales outcomes. The product itself is the marketing in this respect, and relies heavily on the creation story, higher quality components and more unique formulations to gain ground. Nevertheless, scale is a desired outcome for all involved and thus brand marketing will inevitably become a catalyst.

Challenges for new brands trying to scale:

  • Lack of internal seasoned marketing talent
  • Early mistakes and missteps in packaging, pricing, distribution (channel choice)
  • Inability to fully leverage differentiation in crowded product categories
  • Little to no investments in consumer insight that informs, adds relevance to the story and dials in the messaging
  • Loose, patchwork sales infrastructure
  • Supply chain inefficiencies that layer on cost and depress the ability to invest in consumer-facing communication

These conditions make intermediaries like FMI Emerge so important in growth and development. Larger CPGs and equity investors alike would also benefit from making contributions and resource investments in emerging brands that extend beyond sales and distribution infrastructure.

Emergent: The Bridge to Scale

Our agency, Emergent, is focused on these developing brand opportunities because we believe this is the future of the food and beverage industry, and so we have an obligation to support and address the need for scale on a more rapid trajectory.

To do this we help food, beverage and lifestyle brands successfully navigate the sea change from interruption style, talk-at marketing and communications to a more healthy lifestyle relevant and participatory model.

Here are some examples of appropriate guidance we make to emerging brands and CPGs working to help accelerate the pace of growth:

  • Insight research on core user lifestyle, message testing, innovation assessments
  • Wringing out inefficiencies in cost structures (supply chain) to help fund marketing
  • Improved package design and communication; telegraphing from the shelf
  • More strategic, consumer/lifestyle-relevant earned, owned and social communications assets and programs
  • Developing novel trial-generating programs and product demonstrations

In the end, our offer is a team of experienced marketing, communications and operations talent focused on the unique needs of emerging brands. We eat, live and think Emergent. Our goal with FMI Emerge is to help provide this guidance while the industry continues to transform.

Are you ready?

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

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