Posts in Food Trend

Food Marketers Seek New Strategies as Consumer Trust Declines

December 11th, 2018 Posted by brand marketing, Brand preference, brand strategy, consumer behavior, Consumer insight, Emerging brands, Food Trend, Transparency 0 comments on “Food Marketers Seek New Strategies as Consumer Trust Declines”

Food and beverage brands must move to new story…

Growing consumer concerns over health and wellness.

Evolving expectations around higher product quality.

Emerging calls for greater transparency and truth in labeling.

General cynicism toward marketing that sells ‘at them’.

In study after study consumers continue to show their lack of trust while demanding more honesty from brands vying for their spending — with rewards going to those brands that ‘get them’.

Some marketers have attempted to force-fit traditional claim and assertion style marketing tactics into digital platforms but with little success. To consumers, it still smells like conventional spin so they work to avoid it entirely.

Other marketers have smartly moved their strategic game plan to focus on building more respectful consumer relationships around alignment with lifestyle interests and aspirations.

  • Yet new information and insight now coming to light suggests, while lifestyle connections remain important, there’s a new sheriff in town governing what breaks through the clutter to secure brand consideration and selection.

In many respects, this revelation makes absolute sense based on our deeper understanding of consumer skepticism and absence of trust combined with their desire for honesty, authenticity and expressions of a true soul coming from brands and businesses they choose to favor.

Seekers of truth and understanding

We’ve come to a place where marketers recognize consumer interests more fully, texturally, as they evaluate new and emerging food brands with a merit-based system. It’s important to note here first, the fundamental requirement for business growth in any category requires an unshakeable bedrock of clear brand differentiation.

Around the unwavering consumer call for standout uniqueness is an equally strong desire for better products that are also better-for-you, and culturally connected to relevant social issues such as sustainable farming, green environmentally-friendly operations and animal welfare. 

The new secret sauce for accelerating food brand growth

In a recent Premium Marketing Strategy report by food industry trend expert The Hartman Group, a survey question was posed: what kind of narrative would likely cause you to select a new premium brand?

The answer wasn’t about better price or taste. Rather, consumers wanted to know more about how the product was made. Followed in close order by a related topic – the source of ingredients used to make the product; in sum, the product creation story.

So what does this mean?

It’s a gigantic red, neon flag waving three feet in front of every marketer. Consumers want to assess the merits of the food or beverage based on how and who created it.

Contained in the details of this product creation backstory is the necessary evidence of quality, healthfulness, and connection to culturally relevant practices and beliefs. Rather than accept assertions on face value, consumers want to peer under the hood, and in doing so, narrow the chance of being influenced by proverbial brand apple-polishing.

  • It’s one thing to claim better-for-you, and it’s entirely another to reveal ingredients, processes, methods and sources that authentically demonstrate healthy and higher quality.

How to be the credible brand storyteller – Show Me!

So you sell hamburgers… where did the beef come from, who raised the cattle and how were they fed and cared for? About the bun and vegetables used, same need. What are your standards of quality and what about the relationships with your suppliers; their carbon footprints? How is the hamburger prepared, what evidence can be provided about food safety, ingredient integrity and freshness?

No matter the category, there’s a transparency story underneath about how you make things, how you source ingredients and what goes on in your kitchens.

This is the information that forms the basis of earning brand trust and evaluation of the brand’s relevance to consumer beliefs and cultural affiliations. Said another way, the product creation story isn’t a nice to do, rather it’s a must do in getting to active consideration.

Worried that this kind of information demand will be difficult due to weaknesses in your creation story? Then, you have a mandate to make improvements. It may be time to recognize that new premium food solutions are growing while many legacy brand businesses are losing share of heart and sales.

The strategic recipe

Armed with this consumer insight, the food and beverage path to marketing best practices begins with creating an inventory of competitively strong product attributes. These attributes will inform the rationale for how the product will credibly deliver on its key benefits.

  1. Important to note this should be cast as unique attributes that help elevate and separate the product from competing brands, and that make the product better at delivering its promised benefits.
  2. Competitively significant attributes are then integrated in storytelling about product creation and ingredient sourcing.
  3. This means elevated, premium production and sourcing criteria outweigh benefits in the hierarchy of successful brand outreach strategies. Thus, it’s important to cite value-added attributes not offered by legacy brands.

As the decline in consumer trust continues to chip away at the authority curve for brands, what moves in to fill the vacuum left when assertions and claims don’t resonate? A new era of food and beverage marketing opens based on a real-world reality-check about what’s inside the product.

Tangible, visible evidence of quality now passes assertions of quality in effectively reaching consumers with the motivating message. What the consumer is really saying: Show Me!

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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.

 

Emergent Announces Emerge Partnership with FMI

July 10th, 2018 Posted by CMO, Emerging brands, Food Trend, Growth, Healthy Living, Navigation, retail brand relevance, Supermarket strategy 0 comments on “Emergent Announces Emerge Partnership with FMI”

Mentoring for the greater good in food and beverage business

Today Emergent formally announces a partnership with the Food Marketing Institute’s new Emerge platform, a forum to help nurture and grow new, developing food brands on their way to potential stardom.

FMI recently created Emerge (love the name!!) as a path to helping its stakeholder base of food retailers and CPG brands, realize growth opportunities presented by investments in developing food and beverage companies. It’s no secret these nascent brands are now gaining shelf space and consumer devotion, often at the expense of legacy brands that at one time dominated the food preferences of American households.

  • At stake for all is helping scale these new enterprises without inadvertently upsetting the proverbial applecart ̶ by violating the product truths and marketing rules that influence their hard-won fan base.

Emergent was established to 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. In keeping with this mission, we have focused also on emerging brands and the distinct differences that govern their go-to-market best practices.

We saw an opportunity through our long-standing alliance with FMI and the evolution now taking place at food retail, to be of greater service and value in helping organizations deal with the seismic changes going on in the industry. We have joined Emerge as a Mentoring partner, there to offer our deep experience and familiarity with how consumers behave and marketplaces evolve, to help these new food ideas gain a faster footing in the race to meaningful volume.

We’ve had the distinct pleasure of meeting and guiding entrepreneurs who are making a difference in their efforts to create a sustainable business while also embracing a higher purpose. This matters to us greatly because we have a mission, too.

Our higher purpose is to influence the health and wellbeing of people by helping improve the food and beverage industry’s efforts to align more closely with preferences for a healthier lifestyle. Our values are their values and vice-versa.

As business people we respect the need for all parties to achieve scale while maintaining the integrity of the original concept and remaining faithful to the principles that guided the creation of the business.

In this, we are Mentors that understand the motivations and desires of those who create these new companies as much as we know intimately the needs of people who buy and consume their products.

For that reason we’re honored to join with FMI in this endeavor to embrace change and be a catalyst for helping the industry adapt. The food industry is unique in its blending of technology and emotion – a perfect alchemy that respects the fact we eat to nourish and experience enjoyment, while recognizing the impact the food system has on the world around us.

Best time ever to be in the food and beverage brand building business!! Thanks FMI for inviting us.

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.

 

 

Mainlining Umami Deliciousness to Secretly Drive Growth

June 24th, 2018 Posted by Consumer insight, Culinary inspiration, Culinary lifestyle, Food and wine, food experiences, Food Trend 0 comments on “Mainlining Umami Deliciousness to Secretly Drive Growth”

Yes, the Secret Sauce IS the Sauce

To our friends in the food and restaurant business: want to know how to get people to, in effect, eat out of your hands morning, noon and night? Turns out delicious and umami are littermates and keys to the culinary kingdom of eating satisfaction, smiles and happiness. These attributes sit knocking at the front door of repeat purchase and visits.

Yes, the path to great taste is regularly paved with umami, the fifth taste sense (friend to sour, sweet, salty, bitter) discovered and minted in Japan around 1908 by chemist Kikunae Ikeda. His work determined glutamic acid lies at the foundation of great taste experiences. Ikeda then set about commercializing this epiphany by designing it in crystalline form as a flavor enhancer ̶ commonly known as MSG.

The so-called Glutamate was a shot across the bow in refining and defining what it is that humans experience and love about deeper, crave-able flavor. This discovery helps explain why there are more burger and pizza chains than any other form of foodservice business. A cheeseburger with tomato and ketchup is an umami flavor bomb. Thus, perhaps, explaining its lasting popularity across both geography and generations. Ditto pizza.

How Umami found me

It was in a Galaxy Far, Far Away – the Pacific Northwest’s city of Seattle, where my journey begins as a junior home chef on a mission to apprentice the culinary arts. I discovered a cookbook titled The Sixty Minute Gourmet, published by the food editor team at the New York Times. It famously promised to impart basic French technique to the Yankee reader in short order.

I made every dish in the book. Perhaps the chief skill gleaned in the process was saucing and caramelizing. And thus I witnessed how reduction sauces, for instance, could be created to take a plain hamburger patty to an absurdly elevated and refined taste experience. It quickly became clear that any protein or vegetable could climb the deliciousness ladder if a compatible savory sauce pooled above or below.

The sheer act of reducing stocks – vegetable, beef, fish or veal – with butter, wine and in some cases (a little bit of) cream was literally a set-up for injecting umami flavor formally described as concentrated savory, brothy and meaty-ness. Relatively neutral tasting chicken could become a culinary tour de force with a proper sauce.

On commoner ground

Umami isn’t just a highbrow culinary concept. The ubiquitous bottle of ketchup also sits high on the umami ladder, and also probably explains why $8.6 billion of the common red condiment is sold every year in America, a per capita spend of $17.85 per person per year, according to Statista. No surprise Heinz owns about $1.4 billion of that lucre. What’s at work here, in addition to the brothy meaty-ness, is flavor intensity, mouth feel and a redolent savory-ness. When savory is combined with a creamy-like carrier that takes up residence on the tongue, magic happens.

  • The intense salty, nutty richness of correctly aged Parmesan cheese provides another umami-bite example; hence why cheese is, in many ways, king of the umami empire. Translating this understanding into business opportunity can be summed in an innovation cornucopia of opportunity.

Condiments, sauces, toppings and marinades can be employed as umami revitalizers, providing transformative power to reinvent otherwise bland and less interesting foods and menu items. Flavor enhancers impart what the senses want in appetizing taste experiences. It can alter the perception of value in the consumer’s passion for food adventures. Such as:

  1. Bone broth instead of stocks due to its inherent richness, mouth-feel and flavor depth.
  2. Soy, Teriyaki, sesame oil and other Asian sauces that drive the experience of a noodle way past its hereditary plain and maybe boring self.
  3. Sauces and proteins are a marriage made in heaven and allow not only for amping the delicious quotient but also bringing global flavors for an adventurous twist.

In short – bowls, pasta dishes, proteins, salads, vegetables and sandwiches can all be elevated by cranking up the umami index.

Quick innovations

Sauces and toppings can be a faster path to reinvention and reengineering packaged foods and dishes. Think of umami as flavor paint that accompanies anything it sits on or near, to bring the glutamic acid punch that sends ordinary to extraordinary.

The novel use of fresh real-food ingredients to form the basis of umami richness adds to the alchemy of creating flavor without resorting to the chemistry set. In the end, it is deliciousness that wins. Umami is the envelope that enrobes common foods in something special. The outcome is business growth because of the surprise and delight it imparts.

I know because here at the Wheatley house, Hamburger Soopreez as we call it is one of the most popular dishes on the family menu due to its umami bath. Thanks for getting us on the road Ikeda-san.

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.

 

Millennials and Meal Kits: Will Dynamic Duo Shine in Supermarkets?

March 15th, 2018 Posted by brand marketing, CMO, Culinary inspiration, Culinary lifestyle, food experiences, food retail strategy, Food service, Food Trend, shopper behavior, Supermarket strategy 0 comments on “Millennials and Meal Kits: Will Dynamic Duo Shine in Supermarkets?”

Retail kit growth could impact restaurant business…

Recently we learned that Walmart is planning to introduce prepared foods and meal kits to their stores nationally. This action is in response to an increased interest among Millennial shoppers for more convenient and higher quality, fresh ingredient meal solutions.

Given Walmart’s massive size, the impact of this move could create more challenges for an already stressed restaurant marketplace and help trigger other supermarket companies to upgrade their own meal kit strategies, compounding the impact. Technomic reports business has slowed for the last two years at the nation’s top 500 restaurants. At casual chains like Olive Garden and Chili’s, growth went from an average 4.7 percent in 2015 to flat in 2017.

Millennial preference for home cooked meals

According to Port Washington, NY-based NPD Group, 83 percent of Millennial consumers report more cooking at home and fewer restaurant visits, while 63 percent of Millennials say they want to cook more.

Concurrently the supermarket business is in the midst of transformation as Millennial shoppers flipped the script, causing a move away from traditional center store packaged foods, to shopping the perimeter departments for fresh, real food options. The fresh trend is seen as evidence of their preference for home prepared meals. Thus, also helping explain why legacy “big food” brands have seen their market shares decline in key packaged food categories over the last 10 years.

  • At the core of this behavior is a central theme: virtually all generation cohorts – from Boomers to Gen Z – have connected the dots between higher quality, real food experiences and desire for a healthier lifestyle.

The interest in cooking at home is an outgrowth of efforts to assert greater control over ingredient quality, preparations and portion sizes along with the ability to better manage household food spending. At Emergent we see another explanation: the consumer’s love affair with food and culinary inspiration continues. The desire to exercise that creative calling in the kitchen is strong as it fulfills the number one driver for food purchase and consumption: healthy lifestyle. Consumers tacitly believe that home cooked food is healthier.

Boxed food adventures

Perhaps one of the most important, embedded features of meal kits is the ability to experiment with new cuisines and flavors at low risk and with ingredients already portioned and in some cases prepped.

When dinner is now often decided at 5 pm the day of consumption, kits are an enticing just-in–time option to solve the meal need, without having to shop a 50,000 square foot store for five to seven items. It’s a form of high quality culinary convenience that meal kit companies like Albertson’s Plated brand often deliver with a backstory and ethos sitting underneath.

Millennials passed Boomers in 2016 to become the largest domestic audience of shoppers, numbering some 75.4 million topping the Boomer generation’s previous lead of 74.9 million mouths. This generation has grown up with global cuisine; the rise of specialty food markets, locally-sourced ingredients, unique restaurant concepts, and even chef-driven bar food.

It’s telling to note that fully 24 percent of the entire Millennial cohort shopped Whole Foods last year even though the chain has only 430 stores – a remarkable statement about their interest in higher quality food options.

As e-commerce gobbles up more transactions for pantry stock-ups, the food retail business will depend increasingly on its ability to curate unique food experiences and fresh ingredient solutions – and that plays right into the hands of grab-and-go kits. What’s not to like, as kits deliver:

  • Curated don’t-have-to-think-about-it menus
  • More convenient scratch cooking solutions
  • Wholesome, higher quality ingredients
  • Easier and quicker prep time
  • Experimentation vehicle for new cuisines, new techniques and personal customization

Food-enthusiastic supermarket?

The meal kit business is symptomatic of larger changes looming ahead in food retail as e-commerce disintermediates the packaged foods category. As a result, supermarkets will be forced to redefine their models once built around selling those packaged products at volume to fuel the balance sheet.

Emergent believes the future of food retail lies in mining culinary inspiration and food experience. Creating the Disneyland effect of “magic” around food adventure and the consumer’s interests in more innovative and interesting food solutions.

Can the food enthusiastic grocery be far behind? The growth of groceraunt concepts will continue to gain ground as food retailers look to leverage their expanding commissary investments for meals to be consumed on site – yet another customer relationship building opportunity! We anticipate more supermarket jobs for classically-trained chefs as a result.

What’s next for foodservice?

Restaurants are entering a new era of innovation competition to more rapidly evolve menu boards and offerings that reflect the cutting edge shifts in tastes, new ingredients and food culture. Restaurants have always been the tip of the spear in new food trends that then trickle down into other channels in the food industry.

Now more than ever the call to action gains momentum for restaurant companies to explore tastes, preparations and ideas to stay ahead as supermarkets improve their fresh food quality, ingredient standards and Deli menus.

It seems to us that restaurant companies also need to explore further the equity in their own brands to potentially create new signature food products that compete in other channels – much as Dunkin Donuts has done with their superb coffee line and Panera with their soups.

  • Millennials’ enthusiasm for food and healthy lifestyle will continue to push grocers to earn their business by providing the quality, selection, and preparation options they want. Restaurants, while innovating on flavor and cuisine, may need to consider expanded channels as enhanced, food-enthusiastic food retailers vie for share of meal occasions.

This may be the most exciting time ever to be in 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.

 

 

 

 

 

AMAZON GO OPENS TO PUBLIC; RETAIL TRANSFORMATION BEGINS

January 21st, 2018 Posted by Consumer insight, Culinary lifestyle, food retail strategy, Food Trend, Marketing Strategy, Retail brand building, retail brand relevance, shopper experience, Supermarket strategy 0 comments on “AMAZON GO OPENS TO PUBLIC; RETAIL TRANSFORMATION BEGINS”

Emergent announces retail transformation services

After a year in beta test, Amazon today opens its new high tech retail concept – Amazon Go — to the Seattle public. With it a new era in food retail begins, one that we believe will be transformational on more than one level.

Undoubtedly most of the coming media feeding frenzy will be focused on Amazon’s Just Walk Out technology, and the computer vision, deep learning algorithms and sensor fusion capability that sits underneath their no-checkout-line innovation. Importantly though, at Emergent we’re watching closely how the store is designed and curated to reflect consumer preferences for higher quality, fresh products for either immediate consumption or at-home meal execution.

Food retail has followed a familiar formula for decades, built around a focus on packaged food and pantry stocking. This has defined the shopping experience for a generation. Amazon Go at 1,800 of retail square feet is more convenience store than grocery. But the entire platform is edited to optimize and leverage shopper interests:

  1. Everything matters — and consumer insight informed merchandise selections are critical to match the consumer’s desire for fresh foods and upgraded snack and meal experiences. Carefully edited choice is a good idea.
  2. An on-premise display kitchen conveys the fresh, culinary inspired fresh preparations people prefer.
  3. An array of four to five rotating meal kits brings grab-and-go to full meal solutions.
  4. Integration of Whole Foods 365 store brand products offers its own, embedded quality cachet to packaged shelves.

Elimination of the check-out immediately removes friction from the shopping experience. So, yes, we believe this leap will be greeted warmly by people who have better things to do than stand in line.

The most important shift from our perspective is the product curation itself. Grocery stores ask the consumer to conform to its business model, to serve its supply chain relationships and its legacy shopping format – which is more about stock-ups in an era when consumers increasingly shop smaller baskets looking for just-in-time fresh ingredient meal solutions.

With Amazon Go we now have a food retail concept that religiously follows what the consumer wants in addition to how they want to shop (more convenience). The future of food retail must be centered on consumer relevance rather than just a mirror of routine retail infrastructure and traditions.

So today Emergent also announces our retail transformation services, intended to help food retail bring the consumer to the center of business and strategic planning. At a time when Amazon once again changes the game to secure a greater share of food shopping, Emergent’s transformation services for food retail address improvements to brand mission and go-to-market strategies.

Why does it matter? As Kevin Coupe wrote in his announcement story in his special edition of Morning News Beat, as Don Quixote’s sidekick Sancho Panza opined, “Whether the stone hits the pitcher, or the pitcher hits the stone, it’s going to be bad for the pitcher.”

Amazon is the stone. You already know who the pitcher is.

We’re here to help.

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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