Posts in e-commerce

Friends of the Future Delivers On Its Premise

September 23rd, 2019 Posted by Agency Services, CMO, Digital marketing, digital tools, e-commerce, food retail strategy, grocery e-commerce, Supermarket strategy 0 comments on “Friends of the Future Delivers On Its Premise”

The hot ticket networking experience at Groceryshop

In a food industry now preoccupied with algorithms and digital platforms, it’s remarkable when reminded that personal, human connections still inform the beginning of most successful business relationships.

Nowhere was that shown in greater relief than on Monday night at the recent Groceryshop convention. An “A” list of food retail executives gathered at the sold-out Friends of the Future reception to network with key industry players – many of whom are working feverishly to help solve the transformational changes now unfolding in the food and beverage world.

  • Groceryshop has firmly established itself as the leading food industry conference centered on the digital race to answer upheaval in how families select and shop for food. No surprise much of the conference agenda in 2019 showcased emerging technologies in e-commerce, food delivery, digital marketing, supply chain management and robotics.

Yet the Friends event served as a potent reminder that business, whether between advisers and suppliers in the food business, or with consumers themselves, is driven by the high-touch resonance of conversations between people.

“Friends is exactly that, an opportunity to truly connect on a personal level and get better acquainted. It’s in the moment when we talk and look each other in the eye that we find common ground, mutual interest, and most of all trust,” said Bill Kies, President of Kies Consulting and executive producer of the Friends of the Future event.

In its second season, Friends of the Future promised an informal atmosphere of exceptional food and beverage as grist to facilitate relationship building between food retail business leaders and decision makers. No other agenda except sharing experiences and ideas.

The event’s top sponsors including Accenture, Nielsen, Inmar and Shipt, helped press the call to action, with 250 executives gathering at The Venetian’s Yardbird restaurant, closed down to accommodate the crowd. Nearly 40 food retail companies were represented, evidence of an industry in transition while facing the rise of e-commerce challenges and new competition from the ascending restaurant food delivery business. Other event sponsors included Planalytics, ShopperKit, Label Insight, FlyBuy and the Food Marketing Institute.

“It was an amazing evening,” Kies reported, “friendships were initiated, and solutions explored among retailers looking to navigate an increasingly complex business environment.” Kies promised a return for Goceryshop in 2020 with an added dimension: the event will expand to include CPG food executives alongside the legacy list of food retail leaders.

For more information contact Bill Kies – bill@kiesconsulting.com

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.

GroceryShop Returns

August 29th, 2019 Posted by brand strategy, branded content, e-commerce, Emerging brands, food retail strategy, Food Trend, grocery e-commerce, Retail brand building, shopper experience, Supermarket strategy 0 comments on “GroceryShop Returns”

Perhaps the most important convention in the food industry

From September 15 to 18 the food industry convenes in Las Vegas at the Venetian Hotel for the second edition of GroceryShop, Anil Aggarwal’s novel answer to a lingering gap in the meetings realm for food business and related technology companies.

Unlike most industry meetings focused on presenting a vast ocean of booths where company sales and marketing staff feature their latest products and services, GroceryShop is more focused on the sea changes, business model disruption and consumer shifts impacting one of the nation’s most important and robust industries.

E-commerce and digitization of the food business has buffeted the value propositions of traditional supermarkets, supported the emergence of new, higher quality food brands with mission-oriented story to tell, and witnessed the rapid rise of e-commerce channel shopping as consumers increasingly acquire food from the comfort of their dining room table.

Packaged food marketers and retailers alike have sought to better understand how to manage the transformational changes occurring around them. Mr. Aggarwal stepped in with a conference concept long on content and insight presentations more so than a straight buyer-meets-seller proposition.

GrocceryShop’s rapid rise can be attributed to creatively answering the thirst for guidance and direction in a rapidly changing business environment. Unlike the food business conventions of yesteryear where global food corporations such as Nestle and Mondelez held court with retail buyers, GroceryShop connects the likes of Google and Facebook to the conversation on how consumers will operate in a digitally-enabled world and what trends in fresh and prepared food will get traction at retail outlets.

GroceryShop presentations examine new technologies in supply chain management, while brand marketing discussions look towards the shift from traditional ad media and promotions to engagement based on relevance to healthy living and lifestyle aspirations, fed by digital forms of outreach and social media.

 The Future of the Food Business

The content forward approach Mr. Aggarwal has landed on serves as inspiration and best practice showcase to retail and CPG executives alike on how to remain relevant and inject deeper meaning into their brand and banner propositions.

The food business is in a state of rapid transition as consumers increasingly shop for menus rather than stock ups and the rise of super-convenient restaurant delivery makes out-sourcing dinner a viable last-minute option on a busy weeknight. Food has never been more competitive as quality choices are within arms-length from virtually anywhere.

  • According to Accenture, the 80 million or so Millennials, now in their prime spending years, wield roughly $600 billion in annual spending power. For the grocery industry that ladders up to about $2,300 per year on average spending at food retail. According to a recent national survey by Sweet Earth Foods, this cohort will try at least 46 new foods each year, helping drive the emergence of new food and beverage brands now gaining additional in-store real estate at supermarkets.

Meantime the grocery industry is reacting to the significant moves by Amazon into their territory through Whole Foods and its own Prime delivery, by bolting on outside e-commerce ordering and delivery solutions from Shipt and Instacart.

So much change and so quickly for a retail business that for many years was fueled by selling boxes, cans and bags off shelves at high velocity and razor-thin margins. Now the perimeter fresh departments hold the magic and in-store groceraunts are popping up to satisfy the inevitable last-minute rush to answer the pounding question, what’s for dinner?

All of this helps explain why GrcoeryShop has traveled so far so fast as business model disruption impacts Big Food and small grocery chains alike. If you haven’t thought about where you need to be this September, might be good to check it out: http://www.groceryshop.com

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.

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

You are now selling sand in the desert…

February 22nd, 2019 Posted by brand marketing, Brand preference, brand strategy, consumer behavior, Consumer insight, e-commerce, Healthy lifestyle, Higher Purpose, shopper behavior, storytelling 0 comments on “You are now selling sand in the desert…”

Navigating the Impact of Infinite Choice

If ever there were a time when sound, informed strategy mattered to the success and outcomes of food, beverage and lifestyle marketing this would be it. Like it or not we’ve entered the era of nearly infinite consumer choices in a media environment of almost countless channels. This requires a new marketing formula.

Thinking at scale today takes on a completely different meaning when consumers are presented with so many options within a click to buy environment. Thus, how should you design for success when you’re ultimately selling sand in the desert? We will answer that question here.

Left to its natural course, food marketing tends to gravitate towards the vanilla middle – an effort to appeal to the broadest possible audience – and in working to address everyone, you end up mattering to no one. When the options are legion this can quickly turn marketing and communication investments into a moonshot without navigation – the hit (or more often miss) driven by luck more than intention.

At various times we’ve written about the importance of putting consumers at the center of strategic planning. Now, we further qualify that statement by saying – in order for a strategic marketing plan to be measurably effective, putting consumers at the center of planning is table stakes. And determining who that consumer is will require even tougher decisions to prune and refocus the definition of the cohort you wish to serve. Why? Because the 80/20 rule is in full force as the vast majority of volume and profit will come from a smaller segment of committed advocates – assuming you’ve planned for relevance to a community of potential believers.

This is the most compelling argument ever for – different

Let’s start with a foundational understanding that the brand must be perceived as special, unique, useful and valuable before there’s any shot at being memorable. No one has the time or mental bandwidth any longer to assess the vast array of options in any given product category. So how do you resolve the reality of inexhaustible choice?

You must start with the intended core user and work backwards. Seth Godin made a cogent observation in his recent book “This is Marketing” when he described the effort behind what may be the most powerful TV commercial ever made – Apple’s “1984” spot for the launch of the Macintosh. The spot aired during the most watched American sports program on earth, the Super Bowl. The majority of viewers would not have understood or probably cared about what Apple was trying to convey in its dark Orwellian mini-movie.

The lesson: it didn’t have to register with everyone to be successful. Godin observed the spot only needed to touch a million savvy creators and early adopters who picked up that Apple was up to something revolutionary. The rest of the viewers didn’t matter, and indeed the rest is history given Apple’s ascent to brand superstardom. Whatever the brand, the audience of committed advocates will always remain relatively small.

It is with the small and devoted cohort where effort and outreach needs to be directed. And those investments should come from a concerted endeavor to push hard at the edges of what’s unique and different in your brand proposition. Here’s the question we often evaluate with clients: how can positioning, audience, product formulation, and the character of the brand, be dialed sufficiently to the right or left so that we’re able to create a new category – one that our client can own?

Who is it for and why?

To dial in your position successfully you then have to know who it’s for and why. It follows if you want to have meaningful relationships with consumers, then imbue your brand with greater meaning. But for whom?

That’s a big question that requires some rigor to answer correctly. Who is going to quickly respond and be drawn like a magnet to your product proposition? Once defined, all eyes and energy must be directed to fully understanding their hopes, dreams, needs and aspirations. Your marketing strategy is then fine-tuned to align with that insight, opening the door for the brand to become an enabler of their wants and needs – in a voice that’s relevant to them – becoming a reflection of their wants and how they’d like the world to perceive their beliefs and priorities.

This is important because purchases now are largely symbolic representations of what people want others to know about what they believe in and think.

The hard truth about marketing

Of note, we’re doing business in an environment overflowing with self-assured claims, assertions and hype. Here’s the difficult pill to swallow: people don’t believe any of it. The counterintuitive basis of effective marketing today is to not look, talk and walk like marketing.

That said, there is a reflexive habit in strategic planning to navel gaze. To focus on the craft of what’s been created, formulated or built. Here at Emergent we totally understand that spirit and where it comes from, after all most brands are justifiably proud of the considerable effort they invest in technology, quality and improvement. But this also sets the table for potential marketing disconnect.

You are not selling a food or beverage

In the same vein as pet food is sold to humans and not to dogs or cats, it isn’t the product that people are buying. What you are actually marketing are feelings, connection, desire, happiness and status. Not stuff, not items, not things in boxes or bags. Not chips or salsa or soup. People are buying a feeling and expression of their status and belief system.

So then, what’s the path to creating a marketing plan with this insight embedded all the way through? It will require all of the hands on the marketing tiller to be empathetic anthropologists of what the biggest brand fans are about.

Here are some areas to focus on strategically:

  • What your audience wants, not what you want to tell them
  • What they believe
  • What they need
  • What they aspire to
  • What story would emotionally resonate with them

The more you invest in seeking to understand, the more likely you are to land on the big idea (one that immediately influences the behavior of the business) and create a voice for the brand that is engaging and is shared. When you seek to improve the lives of your best customers, you earn permission for a relationship with them and the marketing you create comes across less like a transactional maneuver.

If you think this way, it will flow downstream to impact how the business operates. We already know that what the brand does is more powerful than what it says, so there’s an opportunity built into the recipe for authenticity.

Brand trust continues to decline, so the game plan must be to build it, earn it, cultivate it. The reason transparency has ascended to ever higher importance is precisely because people don’t accept anything on face value. Claims and assertions are exactly that. When you verify, validate and reveal the product creation story by letting consumers all the way in, it fosters belief and trust.

10 components of successful marketing  –

  1. You must push for positioning that’s truly unique, different and helps create a new category
  2. Refocus and narrow your audience definition to the smaller community of ardent fans
  3. Devote your insight research to this audience and discover how the brand sits in service of their lifestyle needs
  4. Become an enabler of their wants and desires
  5. Recognize you’re not selling a product but an emotional connection
  6. Activate brand experiences because behaviors speak louder than words
  7. Know that being relevant is more important than being superior
  8. Authentic storytelling to this audience is the path to engagement
  9. Trust is everything…you must earn it
  10. Transparency is the precursor to creating trust

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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