Posts in Emerging brands

How to Manage Your Future Success at Retail

February 14th, 2020 Posted by brand marketing, Brand preference, brand strategy, CMO, consumer behavior, Consumer insight, Emerging brands, shopper behavior 0 comments on “How to Manage Your Future Success at Retail”

The Vital Role of Velocity in the Growth of Emerging Brands

Every new, emerging food and beverage brand is a leap of faith for the founders. It’s also a leap of faith for the retailers who put those new products on the shelf. For this reason, a near universal yardstick is used to determine if the product is a winner and thus a longer-term player, or if it’s a bust and headed towards delisting. That unalterable path to traction and success, or lack thereof, is velocity.

Velocity in simple terms is the repeat purchase data that shows what happens following the initial run-up on trial after a product is launched at retail. The question retailers are attempting to answer: are purchases escalating as users come back again and again while new users continue to enter the top of the sales funnel?

For most new successful brands, a heavy category user audience has resonated to the product and fuels the outcome. Getting to this sweet spot isn’t luck of the draw or guaranteed once the product is on shelf.

There are two primary drivers of velocity:

  1. Memorability – the consumer remembers your brand name and seeks it out
  2. Effectively answering the “why” – every successful food or beverage has a primary ”why” that draws fans in time after time. The “why” can be defined as the primary dietary objective or problem that the product solves.

Both of these drivers are marketing challenges. Yet far too often, we find founders and investors preoccupied with the finer points of securing distribution gains (meeting with distributors and retail buyers), ingredient sourcing and manufacture (getting the product out the door) and financial management of both.

It may appear that the ability to scale the business is best served by adding more retail accounts or driving more traffic to the web site. While in fact, if velocity is not successfully managed, and the memorability and the “why” go unattended, greater risk is injected into the business.

Number one error going in

In the very early going before any brand equity exists, product experience is the primary reason why early adopters come back. Simply said, the promise is fulfilled in the eating and drinking experience. The product taste is a home-run and the expectations on healthier, higher-quality choice are delivered.

This means that in the early periods before any retail scale is achieved, it is vital to seek input and review from the product’s best users to determine if any tweaks need to be made to the recipe, texture or flavor profile. If the product is optimal then added distribution makes sense.

However far too often there’s a false sense of security embedded in the initial product experience win. This may prompt the brand’s owners to mistakenly believe once on shelf the product will sell itself. “If you build it, they will come” is a precarious trail to navigate because other key ingredients in managing velocity goals go unaddressed.

Bandwidth can be a challenge here because there’s already so much on the plate for founders in the day-to-day struggle to get the product made and off to distributors or retail outlets. More often than not, we find that business owners are not expert marketers and can at times assume that marketing consists only of social channel posts or sending out press releases. There’s much more to it than that.

How to manage velocity

Memorability is required to get consumers coming back again and again. This puts greater pressure on the web site, packaging and consumer-facing communication to bring the brand front and center in the context of the consumer’s needs and wants.

However, it is right here where the most frequent fundamental errors are made. Most emerging brands cast the story upside down. They believe the story should be about themselves and their product attributes and benefits. When that happens, the story is embedded with a disconnect right out of the gate, because it casts the brand as the hero.

Every consumer, every day wakes up believing they are the hero of their life story. When the brand presents itself as a hero, it competes with the consumer for that role and people walk on by in search of a guide to help them solve their needs. The construction of the story is paramount, with the consumer as hero and the brand operating as the expert guide and coach on their journey.

The story is about them, the consumer, and their wants, needs, concerns, aspirations, desires and challenges. The consumer needs to find themselves in the story you are telling. Then and only then will they engage and listen.

This is the path to relevance, an essential ingredient in effective marketing strategy.

For the most part new, emerging businesses are b-to-b players, devoting most of their time, energy and communication to investor, trade and distributor audiences. So, it’s no surprise the skill sets in consumer-facing outreach may not be fully developed. The story creation is a top priority and is best done by experienced, creative marketing brains who have the skill sets to build it, and then move the story in earned, owned and (later) paid media channels.

This leads us to the second key element of velocity – the “why”

There’s a key message that needs to be addressed in all forms of outreach from package to outbound communication. What is the primary dietary need or want your product solves that keeps people coming back? Insight research is vital here to determine what the “why” is. Is it weight management? Is it energy? Is it an indulgent reward? Nearly every food and beverage category has a heavy user audience whose purchase frequency is a vital component to achieving velocity objectives. Interviewing these heavy users to get your arms around the “why” is vital to managing velocity because the answer should become a focus of your messaging and hammered everywhere.

People are interesting creatures – we all are – and we never tax our brains if the message is too complicated or dense. Far too often new brands turn their packages into a Heinz 57 variety of claims and benefits in the hopes that one of the many bullets will register. However, consumers will not invest the time and energy to wade through all of that to find something – anything – meaningful to them.

Instead they move on.

Simple, clear, concise messaging is incredibly important especially in a retail setting where the consumer may allocate only a second or two of brain time before they walk past. This explains the importance of the “why” and how it becomes a core area of messaging focus in an effort to simplify what’s being conveyed.

The role of emotion

Another key insight – people are not analytical, fact-based decision-making machines. We are led by the heart over the head. It is the feeling people have in the presence of your brand that impacts whether they are drawn closer or repelled.

Emotional storytelling is important because it respects what we know about people and how they operate. The emotional stories of improvement or change experienced by users can be a vital component of bringing this insight to life. Authentic, real stories are more powerful than the old “that’s why we” tropes of traditional, self-promotional advertising.

“Trusted” is the desired result – and that is best earned through honesty, transparency and a brand voice that is human and real, not ad-like.

Video is an excellent medium for emotional storytelling because words, pictures and music can be combined to achieve that effect. Unscripted testimonials can be valuable here because they’re authentic, relate-able, and honest.

Intentional message design

Words matter. Dialing in emotion, the “why” and a more human, conversational voice are important when creating consumer-facing outreach. It’s harder than it looks and must be done with intention.

When memorability and the “why” are correctly brought to life, velocity outcomes can be managed in earnest. When you know that your heavy users have found themselves and their needs in this incredibly exciting brand and its mission – and are responding as hoped – real velocity management has begun. The scale will come.

We can help you build the right story.

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

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Enjoy Life prospers

Can emerging food brands prosper inside the big mother ship?

November 25th, 2019 Posted by brand marketing, change, CMO, Emerging brands, Food Trend, Growth, Healthy Living, Insight 0 comments on “Can emerging food brands prosper inside the big mother ship?”

Enjoy Life proves the case for unicorn in the herd

Enjoy Life Foods enjoys the enviable position of being intentionally unique and differentiated by virtue of the market it serves. Have you noticed the skyrocketing increases in the number of people with various forms of food allergy? My oldest daughter is one and many families these days have someone in their circle with a digestive rejection problem.

Of note, some experts believe the rapid ascent of allergen free foods is due to compromised immune systems, in part to blame from the cultural and technological shifts that help assure children will be exposed less and less to bacterial and viral hazards. It is contact with these microscopic threats that puts the immune system activity into higher gear. Use it or lose it?

Enjoy Life offers 86 SKUs of products created and designed to give allergy sufferers a shot at snack and sweets bliss with unconventional (entirely) clean recipe solutions. They are crafted with a staggeringly high intolerance for anything in the product creation process that could introduce an allergen somewhere along the path. Such is their franchise and commitment to becoming a trusted solution for people with food allergies.

Enjoy Life is an acquired brand of Mondelez, the spinoff of the Kraft Foods break-up that resulted in today’s Kraft Heinz packaged foods behemoth alongside the snack and sweets oriented and equally hefty Mondelez International operation. In either case we’re talking about big food.

Joel Warady, who leads the Enjoy Life team and has been on board there since its early days, is a bit of an iconoclast in the belly of the Mondolez whale, but it works and works well. Perhaps Enjoy Life offers a model for success to the innovation-challenged legacy packaged foods industry looking to stem the tide of fractional annual growth or share losses. Of late, many legacy CPGs are seeking the cachet of high quality, mission-oriented food brands by investing in or acquiring the fledgling company’s rapidly scaling share and market presence. The food world has turned upside down ever since the barriers to entry evaporated for independent food start-ups.

“Acquiring companies like Mondolez have learned, and sometimes the hard way, that it’s best to let these emerging businesses continue under their current management teams and without a lot of interference,” said Warady. “The challenge is figuring out how and where to help, usually with R&D and distribution support or providing ingredient sourcing efficiencies and pipeline scale.”

Warady believes Enjoy Life has been a success story because key strategic decisions are largely left in their own hands. “We’ve had some embedded executives from Mondolez along the way, but for the most part we operate as we did before the acquisition only with more resources at our disposal,” he said.

Legacy food companies like Kraft and Mondolez have greater challenges on the product innovation front due to their size, and cultural habits that work to wring out risk. It’s a point of view that has caused them to routinely favor line extensions over disruptive, unproven and yet demonstrably higher quality food ideas that are popping up everywhere.

Now, the magic and heat index in food innovation is coming mainly from entrepreneurs with a vision for solving a neglected corner of the market like Enjoy Life. Other successful ideas offer a preparation or ingredient twist that inspires a new category such as Beyond Meat that imitate the texture, flavor and mouthfeel of genuine animal-based meat. These plant-based proteins are more widely targeted to those whose values supports the overall mission (whether clean eating, regional sourcing, minimized carbon footprint, etc.) – not just aimed narrowly at serving Vegan interests.

Enjoy Life was designed from day one to be a difference maker in the lives of people suffering from allergies. It helps when you solve a real problem that has existed for some time but neglected as a niche business and ignored by companies that at one time believed if the volume isn’t a billion dollars within 15 months of launch, it isn’t worth pursuing.

Ingredients for Success

Warady offers some guidance for founders and acquirers alike:

  1. For founders, it’s important to know that food safety and sourcing standards – a pillar of strength for large CPG companies – is often lacking with start-ups and can be deal killers once a strategic investor starts to poke around. Thus for founders, it’s important to have consultants scour every corner of the supply chain ahead of a strategic conversation to help clarify areas of opportunity and deal points.

 

  1. For acquirers, it’s vital to recognize the secret sauce for emerging brands is often held in their story that combines mission and values often with a more artisanal product solution that completely redefines what quality means. Best to let them operate independently to help support and retain the trust they’ve earned.

 

  1. Because the path to market is completely different, emerging businesses can be extraordinary places to test new ideas and limited-edition products, while learning best practices. The old recipe of big TV advertising budgets mixed with quarterly price promotions isn’t resonating like it used to, and is antithetical to the more conversational, user experience-oriented world of emerging food and beverage.

Importantly, emerging food brands like Enjoy Life come to market embedded with deeper meaning and a higher purpose that transcends the more transactional genre of volume, velocity and profit.

Not that growth and profit aren’t equally important to the success of new food businesses, but these soul-driven companies recognize the path to riches is paved in reciprocity and relevance to the consumer’s interest in shared values.

Bottom line: the recipe for success inside big food is to allow the acquired businesses to retain the very lifeblood that makes them successful. Their sheer disruptiveness and uniqueness must be honored and fueled while maintaining the often higher quality sourcing commitments on which their recipes are based.

It is the user experience that sits at the foundation of early success for emerging brands – before there’s much of anything to talk about in brand equity. That said, smaller resource- constrained businesses will benefit greatly from a benevolent investor or owner that fills strategic gaps and helps nurture the business, providing expertise or capital where it can make a difference between a base hit and a grand slam home run.

Joel Warady and the Enjoy Life team sit as a worthy example of how remarkable innovation can prosper inside a much larger organization, continuing to dance to the beat of its own drum while offering a roadmap to the future of the food business.

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.

Think Beyond: Lessons in Disruption from Beyond Meat

November 18th, 2019 Posted by Brand preference, brand strategy, change, CMO, Consumer insight, Emerging brands, Emotional relevance, Growth, Healthy lifestyle, Integrated Communications 0 comments on “Think Beyond: Lessons in Disruption from Beyond Meat”

Guidance on how to hit the food brand home run

Poised to create and capture the next wave in center-of-plate meal preferences, Beyond Meat is scaling at break-neck speed in both grocery and foodservice channels, throwing off sparks of insight to all emerging food brands who will listen about the new path to relevance and glory.

At Chicago’s recent Good Food Financing conference produced by the venerable Jim Slama of Family Farmed and Good Food Accelerator, keynote speaker Seth Goldman held the audience of embryonic food brand founders and equity investment executives in rapt attention while delivering a data driven highlights reel of business home run after home run. The score sheet demonstrated in dramatic fashion how Beyond Meat’s team is leading the nascent meatless meat invasion, while disrupting conventions and traditions of the legacy animal-based proteins industry.

Within Goldman’s engaging recap of refrigerated beef patty without the beef, was a significant revelation to all of the strategic leaps Beyond Meat achieved. “Animals are really four-legged bio-processors of plant materials, converting the ingredients to meat,” he said. Thus, meat in truth actually comes from plants, and Beyond has amazingly reverse engineered the components of meat structure to imitate and recreate the same bite and flavor characteristics of the animal variety.

Said Goldman: “Our goal is to enable consumers to eat what they love.” Right there was respect for what consumers want, and a vault from making vegetarian meat for vegetarians to making plant-based meat for meat lovers. The foundations of this strategic narrative are critical and inform how the entire Beyond story unfolded. Within his story is a living example of what separates ‘just another one’ from a meaningful innovation that influences consumer behavior and informs the future of food.

It worked because this plant-based juggernaut fully delivered on its promise to replicate the animal meat taste and texture eating experience. “Traditional veggie burgers look to us like a plot by the meat industry to make sure plant-based versions aren’t a threat because, let’s face it, they don’t taste very good – and I’m a vegetarian,” Goldman reports.

Meanwhile the plant-based category table is set for dinner:

Trend lines seem clear that plant-based anything is on the way up, as consumers “flex” their preferences and look for what they believe are healthier alternatives that are friendlier to the environment but which also deliver fully on taste experiences consumers crave.

According to IPSOS, 54 percent of consumers say they’re trying to consume fewer animal-based foods and eat more plant-based options. What’s going on here? Shifting values mixed with health and wellness is what’s going on. SPIN Scan data reveals that refrigerated plant-based meat is up 37 percent year on year to $212 million in sales.

No surprise, it is outpacing animal meat sales. Within the $270 billion US meat category, plant-based share is under 1 percent. The upside is significant and bodes well for Beyond as first mover and brand perception leader in the space.

Mintel’s 2018 “Better for you Eating Trends” study provides evidence of why it’s best to strike when the macro trends are working in your favor. In their national survey, Mintel found across all four primary age segments, consumers said they agree with the following statements:

  • Plant-based protein is healthy – yes for 74 to 80%
  • Plant-based foods are better for the environment – yes for 47 to 63%
  • Plant-based functional claims are trustworthy – yes for 35 to 56%
  • Plant based foods are better for you than animal options – yes for 42 to 50%

Dollar sales for plant-based meat in the aggregate, frozen or fresh, is $801 million and rising rapidly.

By the way, this form of market-opportunity-assessment matters for the business plan!

Emergent Guidance on the Path to Victory

Surveying the adjacent exhibit hall of new, emerging food and beverage brands, Beyond stood as the “A” lister in a field of hopefuls who bare their heart and soul daily in product concepts that authentically align with higher quality, more artisanal and healthier food solutions now fueling the renaissance in Good Food. The acid test, however, is can they redefine the categories they’re playing in or will they plateau among a collection of similar offerings with similar stories and similar preparations.

The secrets to outsized success continue to follow six repeating themes:

  1. Think Differently Going In

It would have been logical and expected for Beyond – founded by Ethan Brown, a vegetarian – to exist in service of that ethos and segment, working to create a better product for this devoted marketplace. But the mental leap to create a product for meat lovers caused the entire R&D development process to rally around a specific standard of performance and outcome with a moonshot at a VERY big market. Vegetarians are roughly 5% of the population and have remained anchored at that level for some time.

The goal to build an analog to meat inspired the revolution unfolding before us.

  1. Disrupt the Space You’re Entering

Beyond Meat defied the conventions and expectations of its veg foundation, opting to swing for the meat department case fence. Beyond could have easily been a frozen product in the vegetarian section freezer case. Instead they pushed and cajoled retailers to merchandize their products alongside animal meat, and in doing so, not only accentuate the perception that this was a legit option to a beef product, but also meet the meat shoppers where they shop.

Entrepreneurs would be well advised to look for extreme disruption, major departures, unconventional solutions, big moves on the perception chess board that constitute uniqueness.

Legacy food brands often suffer from a recurring illness we refer to as line extension-itis. Read as, adjustments, incremental improvements to an existing idea that don’t ultimately reframe the category.

Relatively minor improvements to ingredient strategies, recipes, preparation techniques or story may not be enough to inspire the kind of attention and magic that leads to new category creation, the zenith of best-in-class marketing opportunity.

  1. Focus on Taste Satisfaction

Formulation can be a fickle friend. While hitting benchmarks on nutritional label improvements and better-for-you metrics, taste sometimes gets marginalized. I will never forget my first bite of a Beyond Burger at the Chicago Restaurant Show, in a backwater booth buried in the better for you zone, where curiosity got me up to the table. And then – Holy Cow – I swore it was a ‘burger burger,’ not a veggie burger. Relentless search of optimal marriage between culinary and taste considerations with healthier is paramount. Taste wins every time.

  1. Place the Right Bets

Most people believe that plant-based anything is healthier, but Beyond wisely did not elect to make nutritionals a predominant part of their go-to-market game plan. For the simple reason, that pound for pound a Beyond Burger isn’t necessarily a traditional nutrition label winner. Yes there’s no cholesterol, but…

Instead Beyond wisely pursued a values-based messaging platform weighed against the environmental tax exacted by raising animals who compete for natural resources. Beyond Meat tells us their product creation process (compared to animals) consumes or produces:

79% less water

93% less land

90% fewer greenhouse gases

46% less energy

  1. Tell Your Story, everywhere your customer or stakeholder can be found

If Seth isn’t a walking, talking personification of this point, I don’t know what is. Goldman the Ambassador of Beyond is everywhere, bringing the remarkable news of the company’s outsized performance to any and all who will listen.

These business and media audiences are chocked full of content creators and reporting types like me who turn around and do what I’m doing here.

We extol emerging brand companies — be careful not to  short sheet the brand building process early on. Yes, cash is at a premium and yes, resources are limited, but the “if we build it they will come” mentality is a recipe for small ball. All marketing is strategic storytelling. You have to invest here and sooner rather than later.

It takes experienced hands to shape and inform the consumer-ready brand story efficiently and with great impact – thus, why Emergent exists. We’re good at this, but then again, we’ve been doing it to great effect across multiple categories and honed our communications techniques and strategies.

  1. Relentlessly Innovate

Goldman will tell you the Beyond Burger today is different, and better, than the Beyond product was when they first got traction. He claims the company has 70 scientists at their Manhattan Project campus in California, working around the clock to improve their taste, recipe and nutritionals – and to innovate new products like the recent Dunkin ‘Beyond Sausage Sandwich’ for the hand-held breakfast crowd. Don’t rest on your laurels, don’t stop working to make it better and to search for the next meaningful adjacency where the product concept can go to solve yet another problem or capture another market opportunity.

Be careful, however, to avoid extending your brand in areas too far afield of your core equity where the proposition dilutes rather than builds on what consumers believe is your expertise.

While the barriers to entry have fallen away for emerging food and beverage ideas, and yes everyone knows it won’t be easy, there are key ingredients in here that spell the difference from modest growth to something that looks like Beyond Meat.

Our Offer…

So we make this offer: let us come in and conduct an audit, no cost, of your current platform, product concept, supply chain, and business opportunities. We’ll provide an assessment and make some recommendations and if you agree, perhaps we can partner on a future path to business transformation.

You have nothing to lose and everything to gain. Let me know.

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.

Importance of Brand Building to the Future of Emerging Food and Beverage Businesses

October 24th, 2019 Posted by brand marketing, brand strategy, change, CMO, consumer behavior, Consumer insight, Emerging brands, Emotional relevance, Higher Purpose 0 comments on “Importance of Brand Building to the Future of Emerging Food and Beverage Businesses”

Early priority trap – singular devotion to sales

In our interactions with emerging food and beverage brands we take note of a consistent condition between virtually all nascent businesses: a single-minded focus on sales. Certainly it makes sense especially in the earlier stages of development that founders/owners are preoccupied with securing the next account and building the pipeline.

It’s not unusual for us to see lean teams with limited bandwidths deployed in a recurring cycle of production to distribution to account selling activity. Marketing in these cases is often light on strategy – and reduced to a few tactics in the form of social media posts, periodic press releases and an occasional third-party influencer/blogger outreach.

Today we make the case for starting early to invest in brand building. In the end entrepreneurs may believe they are on earth to sell their better mousetrap, and more of it, until an exit strategy is achieved. In fact, what should also be going on here is purposeful development of the one asset that holds the valuation multiples and burnishes the customer relationship, your brand.

Why This is Important Now

People are emotional creatures who (backed by reams of scientific evidence on behavior) do NOT make fact based, rational decisions on the brands they prefer and that matter to them. The story you should be telling must be specifically packaged and presented to begin sewing the emotional fabric and connectivity to your brand and its deeper meaning. Brand purpose is not a nice to have, it’s a must have.

Simply stated: you are not selling a product but rather a feeling people have in the presence of your product. Here we’ll lay out the pathway to greater success and scale based on a more enlightened view of what’s required to make the leap to sound marketing.

Primacy of Product Experience

First, we should acknowledge that in the early stages the magic in generating trial is the very experience people have with your product. This is where the higher quality ingredients, the artisanal recipes, the more authentic production of a better tasting food or beverage gets noticed. Your brand, a virtual unknown, secures traction because it delivers on its promise of a higher quality, better for you, great taste experience.

More than at any other time in the history of food and beverage, the consumer is primed for the innovative, the new, the better-quality version of many iconic categories from chips and crackers to ice cream. Bone broth instead of soup stock. Heart healthy snack bars. Artisan peanut butter. Upscale and functional teas. Heirloom produce. Small batch you name it… the list is long and getting longer of new players summoning the efficacy of healthier ingredients and better preparations on a clean label.

Yet while the product is indeed the marketing at the front door for emerging brands, the attention to strategic brand building shouldn’t be viewed as a ‘we’ll get to it someday’ part of the operating plan. Again, for emphasis here, brand cultivation is an investment in establishing relevance and connecting with consumers who are most likely to try your brand, rather than a result of how many press releases are pushed out the door.

The Rule of Sameness

In virtually every edition of the Food Navigator newsletter you’ll find new products in launch phase. The sheer ubiquity and volume of new ideas making their way to grocery shelves or direct-to-consumer platforms is astounding. Higher quality retail outlets like Whole Foods are shopped by ‘what’s new’ hunter gatherers on the prowl for great ideas, ready to plunk down the higher price for a shot at a better product experience – at least once. I know, I’m one of them.

But the go-to-market recipe employed by more than a few reinforces a condition that exists in far too many product categories – the Rule of Sameness. Emerging brands often observe the conventions in the category they do business in and, intentionally or not, replicate behaviors that are common to the business segment. Some great decisions are made in innovative packaging but for the most part players tend to look similar on shelf. Tactics are similar. Pricing is similar. Color schemes and messaging are similar. When RX Bar decided to put “No Bull___t” on the front of their bar package, that may have done more for advancement of the business than anything else. Not that expletive is a precursor to greatness. It was just unexpected (see disruption below) and an outlier move.

Perhaps the best category on earth to observe this phenomenon of sameness would be pet food, where it runs rampant. So much so that you can interchange messaging between many brands and it would still fit. Protein percentage is now the reference standard of pet food quality.

Disruption is a Requirement

The word disruption sounds a little scary, but the principle applies here. In essence it means to zig when everyone else zags. Uniqueness and differentiation are vital components of a strong strategy and are particularly meaningful when the marketing budget looks eerily similar to your take home pay rather than something approximating the gross national product of Belize.

When every dollar invested needs to work like ten, the requirements of sound strategy comes to the front quickly. The story you tell, how it’s told, to whom, how it’s packaged and presented all matter in attempting to engage an emotional creature. Emotive language?

More often than not emerging brands lean too far into a self-reverential form of messaging that conveys ‘it’s all about me, not you’ when in fact it is all about them (consumers), all the time. How does your brand become a guide, coach and enabler of the lifestyle interests and concerns of your core user?

It is when we bathe ourselves in the customer’s lifestyle needs and aspirations that we can find the path to relevance, connection and also engagement on a modest budget. You have an uncommon product so don’t be common.

Standing out is a prerequisite because things tend to run together at retail, especially at the shelf where snap judgments are made daily. Words matter. Context is important. Emotion is key. Relevance is the bottom line that leads to success.

How do you do that? That’s why Emergent exists.

Absence of a Fully Baked Mission

We have ample evidence that consumers care about sustainable farming, about transparency, about ingredient integrity, contributing to the greater good and offering something consumers can believe in beyond the transaction.

Yet even in the midst of popular culture’s insistence that most new food brands come to the table with an embedded mission, more often than not, we find it isn’t fully baked, and in some cases tacked on like a ‘new and improved’ package violator. Successful brands today come to market with a soul. This may explain why it’s increasingly difficult for legacy brands to pivot because finding a soul is hard to do.

If the approach to building business is purely transactional, then even the messaging around a belief or mission rings hollow because consumers are marvelously adept at seeing and separating assertions from reality.

A higher purpose has to inform everything the company does from sourcing to production and how you got to market. Actions speak louder than words and offering the consumer something to believe in, matched by authentic behavior is the road to trust. Trust by the way sits at the foundation of every successful business now — and is increasingly hard to come by given the barrage of misdeeds, misrepresentations, selfishness and fractures of truth people see almost everyday.

This is why we’ve designed a specific program to help bring greater texture and definition to what higher purpose is and how it should show up in what the brand is about.

Your Brand and Emotional Connectivity

Belief, mission, purpose, essential truths and lifestyle relevance all combine as the alchemy for brand building in an age when the size of your ad budget isn’t linked to the depth of your brand franchise.

That said, it requires attention and intention to put brand building strategies into the mix early. The result is better traction, improved engagement and a quicker ascent with a story that resonates.

Convinced? We would be happy to share more of these insights, just drop me a line.

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 Impact of Higher Quality Experiences on the Future of Food

September 24th, 2019 Posted by brand marketing, Brand preference, brand strategy, branded content, consumer behavior, Consumer insight, Culinary inspiration, Culinary lifestyle, Emerging brands, Emotional relevance, food experiences, food retail strategy, Food service, Healthy lifestyle, shopper behavior 0 comments on “The Impact of Higher Quality Experiences on the Future of Food”

Once you’ve tasted an heirloom tomato you can’t go back…

For most of my adult life I have experienced a love/not love relationship with fresh tomato. The routine, ubiquitous beefsteak variety a frequent guest star that decorates the roof of a hamburger with some color. The pink flesh offers a hard, mealy somewhat bland flavor. In a salad the standard tomato as hero can be even more pronounced in its meh-ness. We hear it travels well through distribution channels and offers some shelf life. Yay.

Along comes the heirloom tomato with its erratic colors, crags, lumps and fissures to completely upend everything you think you understand about a tomato, punching your taste buds with luxurious flavor, acidity and tenderness that elevates anything it swims with. More expensive to be sure and worth every penny. Once you know this you can’t retreat to the beefsteak.

  • So it is with the continued culinary-ization of America: as higher quality food experiences forever elevate the palate and expectation of nearly everyone who eats, the baseline standard of what people want is changing with it.

Thus why strategic planning needs to address this development because as the old but very real saying goes, “times are changing and if you don’t change with them, you’re in trouble.”

What happens when the consumer is at the center of strategic planning?

If it is vital for the collective futures of food retail and food CPG companies to put the consumer at the epicenter of planning and work backwards from there, then we’re going to pay attention to cultural and behavioral shifts. The goal to sync strategies and capitalize on those insights. It is definitely not business as usual these days because the pace of change has accelerated so significantly in the last five years.

Seven observations on the changes now upon us.

The quality bar keeps rising. The impact of chefs-as-media-heroes, cooking shows, elevated corner bar food, transformation of legacy food categories with reimagined higher quality versions, and the advancement of culinary experiences at restaurants – all blend together in a perfect recipe for moving taste and quality expectations upward.

  1. Once you’ve experienced the added value of a pan reduction sauce to transform a flavor- challenged piece of chicken, you want the sauce every time.
  2. Home delivered meal kits operate as boxed culinary academies, teaching consumers about roasting techniques for vegetables, layering flavors and saucing.
  3. Higher quality ingredients and preparations now reflect the new intersection of indulgent taste and healthier. Healthy now redefined not as calorie math but the use of better quality fresh, real food ingredients, less processed and with a clean label as evidence of same.
  4. Weekends are now calendared opportunities for scratch home-cooking exploration, experiments and food adventure. Which grocery stores observe this phenomenon and move to inspire ideas, ingredient solutions, menus and culinary guidance? …More meatloaf?
  5. Maybe we’re still selling boxes, cans and bags off shelves at velocity and so there’s no time to match merchandising to the elevation of food experiences in America? Can you afford not to when disintermediating options are emerging all over the food business landscape?
  6. Restaurants are trial generators for new global flavors, cuisine exploration and realization of unique cooking techniques. Outsourced meals aren’t just about convenience on a busy night, it’s also part of the food culture milieu that’s stoking the fire of culinary excitement.
  7. Where’s the Chef de Cuisine now? He or she is a home chef operating in the kitchen looking to create, innovate and experiment with standard menus and dishes now getting an elevated makeover with layered flavors, sauces and artisanal quality ingredients.

The headline: could it be that the American home kitchen is not that far behind the restaurant kitchen, save a few thousand BTUs from the stove burner, as a place to produce distinctive flavor experiences? The answer to this query is yes. How are retailers and CPG innovators working to recognize and service this consumer? Small niche you say!? Not so fast…

In a recent report from the Hartman Group we find evidence in Compass data:

  • 39% of restaurant sourced eating occasions are efforts to lean in on the culinary skill and experience going on in the professional kitchen. Remember the quality of restaurant food keeps going up, and while doing so challenges some chain foodservice operators who are trapped in cost structures and business models that make it difficult to profitably move up.
  • 29% of at home eating occasions use cooking sauces, flavor aids, Deli prepared items, alongside higher quality produce, meat and seafood intended to replicate the restaurant experience at home.

Food culture changes are an undeniable juggernaut impacting where the ball is moving and challenging everyone to determine if they’re keeping pace with it or languishing behind.

Emergent’s guidance:

  1. Consumers want the unique, higher quality flavor experiences they find at restaurants, repurposed for them in food retail available products. Hence the emerging brand phenomena now roiling legacy CPG market shares. Consumers yearn for the surprise and delight of more innovative packaged and prepared foods.
  2. On the other side, food retail is ideally situated to sponsor artisanal exploration in cheese, baked goods, alternate proteins and cooking ingredients. Yet many find it difficult to get beyond the traditional infrastructure to position themselves in the culinary chair alongside shoppers who want more relevance and food experience in their shopping trip…and their shopping cart.

While so much preoccupation now exists with installing e-commerce platforms and digitizing the management and flow of inventory, we should not lose sight of what the consumer longs for and how we can enhance food relevance and adventure for them.

Your products and store could be a culinary Field of Dreams!

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.

 

 

 

 

 

 

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