Posts in Growth

Alert: Buying Patterns in Full Shift

March 17th, 2020 Posted by change, consumer behavior, Consumer insight, Digital ordering, e-commerce, grocery e-commerce, Growth, Higher Purpose, Insight, Social media, Supermarket strategy 0 comments on “Alert: Buying Patterns in Full Shift”

Marketing now with meaning and empathy

According to Marketing Dive and research from DISQO, online search and purchase behavior has increased 59 percent in the last week, led by cleaning supplies and health aids, while massive sales bumps are occurring also around shelf-stable food and beverage products. The extraordinary conditions reveal signs of an emerging new phase, ‘Quarantine or Restricted Living’ preparation as consumers hunker down at home for the long haul.

On Monday, Amazon announced hiring of 100,000 new positions to help them keep up with the surge in online transactions and added pressures on their delivery infrastructure. Meanwhile restaurant companies are in full pivot mode, making new moves to answer the need for curated family meals available through pick-up and delivery.

  • One restaurant in Chicago, Prairie Grass Café, has opened a hotline service called From Our Kitchen to Yours, in an effort to help home cooks with guidance and advice on cooking and meal preparation. Meanwhile Weber Grill is creating Family Grill Packs, available through DoorDash delivery or takeout.

E-commerce transactions are likely to increase dramatically in the coming weeks, as people increasingly stay put, under guidance from the Center for Disease Control and state/local governments and departments of health. Emergent forecasts these behavioral moves will likely represent a lasting change that will usher in a new era of online food shopping and meal acquisition from a variety of sources. Removing friction from online search, menu-building, transactions and delivery will be vital as this story unfolds.

Marketing in the midst of uncertainty

It is important that brands approach marketing by leaning in with empathy and deeper meaning, working to be useful and helpful in this unprecedented environment. The question marketing teams should be asking: how can we help families cope with the stresses they are facing, the lifestyle upheaval of home-bound living, and the requirement of cooking and preparing virtually every meal?

This is the opportunity to be a partner and valued voice, helping consumers with these challenges rather than focusing on product feature/benefit selling. Before you is an opportunity to build lasting relationships that positions the brand with higher purpose, as a more human and approachable, trusted guide and resource.

Positive indicators

Businesses in food, beverage, pet, cleaning, health aids, and home-related categories are likely to prosper in the current situation, along with e-commerce platforms and delivery services.

We will get through this together. Brands will emerge on the other side as more enlightened, authentic and trustworthy businesses truly making a difference in customers’ lives.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

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.

Marketing Strategy: Different Beats Best

March 11th, 2020 Posted by brand strategy, change, CMO, Growth, Higher Purpose, Marketing Strategy, Transformation 0 comments on “Marketing Strategy: Different Beats Best”

Category creation is the path to sustainable growth

Emergent has extolled the virtue of category creation as a path to sustainable growth for some time. In essence, we routinely look for ways to dial a client’s brand positioning to the right or left far enough that a new category of one is created.

For the most part we find that food, beverage and lifestyle brands, however, prefer to focus on being better than the competition, or even the best – which is better attired in a nice new suit.

Better is an alluring idea. Brands almost naturally feel drawn to say faster, cheaper, easier, more of this and less of that.

The problem with better is it casts the business in a comparison-anchored fight that never goes away. It gives strength to the competition by keeping them in the conversation and requires routine return visits to make sure the specs are always optimal. In fact, the specs become the defining narrative of the business, a more analytical style of communication that lacks emotional resonance.

A form of polite mudslinging goes on continually as the better or best mantra is applied and justified through ranking of achievements and advantages. Marketers may think that users care most about better, but that’s only because they haven’t given them something different to believe in. At least not yet. 

Are brands merely a list of features and benefits?

  • The primary difference between being brand led versus sales driven begins with recognizing that a strong brand always goes to market with a point of view. The best brands have an opinion that is expressed early and often, and a vision of what the future looks like. Strong brands offer a way forward for their users and help them understand what before and after looks like.

Your brand is ultimately a belief system. In today’s redefined world now founded on substance and authenticity rather than gloss and prestige, belief is the new benefit.

Another way to look at this is the power and importance of different. Superior will lose out to different every time. Emergent’s goal as expert guide is to help marketers define what different looks like and then map how to own it.

Balance sheet challenges aside, the Casper mattress category creation story isn’t really founded on offering a better mattress. They’ve been successful by marketing a point of view and beliefs around better sleep. Their principles and values led to creating a new category and channel for mattress sales that overcame the inability to trial (lay down on) a mattress before purchase.

Your strategic thinking time is best invested looking for powerful ways to be different rather than better or best. Here are four examples of how different can be brought to life.

  1. Create a new category everyone else is blind to

You can choose to play ball outside with competitors, watching their moves and looking for advantages in formulation or superiority in other areas of the category value proposition that people expect. Or you can create a new playing field that’s your very own.

Legacy beauty brands have forever looked at their role as something magical you apply to achieve their definition of beauty. It is created on the surface, on the outside of the user. New more purposeful emerging brands see it differently. They believe beauty comes from inside and operates with a wider lens around wellness. Beauty is achieved through respect for and balance of the mind, body and spirit. This is rich territory to carve a new voice, to change the value proposition and to be different.

Different is easier to remember and gets traction more quickly than better, which always requires some brain taxing analysis to do the math of superiority.

  1. Create a lifestyle brand

Lifestyle brands recognize the role they can play as enablers of consumer passions, and their ability to inspire users to a better quality of life. Lifestyle brands literally insert themselves into important life moments for consumers. These are life events and experiences that mirror the brand’s guiding beliefs and reason for being, which is nearly always attached to a deeper meaning than just the product itself.

Yeti is a super-premium cooler brand that is heavily invested in lifestyle positioning.  The brand is a study in active participation and storytelling around life moments that matter. Its methodology has been expressed on more than one occasion as celebrating “freedom of the human soul in nature.”

Sure, they could devote their marketing energy to technical descriptions and specmanship around the product design. Instead their focus is on the special moments of human relationship bonding on a river at dawn while fly fishing. Is this a prestige sale? $350 or more for a cooler is a leap in price point. No. It is a cult favorite among construction workers because the brand identifies so fully with a life worth living.

  1. Change focus and the conversation

Many brands ill-advisedly devote their marketing plans and tools to revealing themselves to the customer. When you talk continuously about your accolades and advantages, you are expressing who and what you are.

However, brand led businesses on the other hand show their difference by expressing who the customer is and can be. The nuance is showing them how your brand beliefs will change them and improve their lives.

When you talk about yourself, you position the brand as the hero of the story you’re telling. That is upside down and puts the brand in competition with the consumer for the hero role. Users should be the hero of all brand storytelling, with the brand positioned as expert guide, there to help them on the journey and solve problems.

Hotel companies are famous for talking about themselves, the facilities and amenities. The similarity between hotel web sites is striking, as if there were one design firm knocking them off along a cookie-cutter pattern of feature lists. The game to settle who is better or best is played against a backdrop of great-looking pools, spas and culinary offerings.

Then along comes Airbnb. This brand rose above the fray by being different in every way. Here Airbnb inspires a dramatically different picture of what travel is. While hotel companies try to beat the competition with amenities, spacious rooms and gardens, Airbnb turned the industry inside out by being different.

The magic lies in how you travel and what you experience when you’re there. It’s a decidedly human story that builds on the personal adventure you create rather than property specs.

  1. Change the reality

Different can come to life when a brand reframes the long-accepted reality and creates the ‘Oh my God we’ve been doing it wrong all this time’ moment.

Step One Foods in Minneapolis is an early player on this front, pioneering a new category entitled Food-as-Medicine. (Disclosure: Emergent has done some project work with this company). Step One was started by a Cardiologist, Dr. Elizbeth Klodas, who hails from a long line of family bakers.

Dr. Klodas empathetically aligned herself with patients suffering from high cholesterol and the prospect of future heart disease. Dr. Klodas wanted to find a way to improve and change her patients’ lives, not just medicate. Cholesterol lowering drugs, by the way, are the most prescribed medications in America. As is always the case, drug therapies come with side-effects which can be debilitating in their own right.

Dr. Klodas looked at the linkage between food, diet and disease and embarked on a journey to create a food-based solution. Remarkably, she found an effective recipe using real food ingredients in proper proportions to create a line of packaged foods including bars, smoothie mix, oatmeal cereal and other assorted products.

Step One became the first packaged foods company to participate in a double-blind clinical trial of the products, that effectively proved consuming the foods (no other changes to lifestyle required) met or exceeded the cholesterol lowering outcomes achieved by drug therapies, but without the side effects.

Step One has created an ‘OMG we’ve been doing it wrong moment,’ reframing what we know and understand about the role that food can play in addressing disease.

  1. Different is a reframing reality. It is a paradigm shift and as such it flies against the natural tendency to fall into better, best or both.
  2. Different and its cousin new category creation, are pathways to sustainable growth that end the connection to competitive comparison while achieving true separation and distinction.

The question marketers should be asking: can I help make people care about something different that what they prioritize now? The answer is yes, this can be done. Owning different will change the conversation with consumers and usher in an era of brand leadership.

Can we help you identify your path to brand-led strength?  Let’s talk.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

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.

Curbing the Pandemic of Brand Narcissism

December 22nd, 2019 Posted by brand marketing, brand strategy, change, consumer behavior, Consumer insight, Emotional relevance, Growth, Higher Purpose, Human behavior, Insight, storytelling, Transformation 0 comments on “Curbing the Pandemic of Brand Narcissism”

Most brand messaging misses the mark because it’s upside down.

Far too many brands and businesses are inadvertently ignoring the fundamentals of successful communication. Engagement is elusive and budgets are wasted because brand stories are either ignored or actively avoided. The misfire happens because the basic principles of how consumers respond to communication relevant to them isn’t embedded in how the brand goes to market.

Every great, powerful and engaging story needs a hero, a problem to solve, a guide, a struggle and a transformative outcome. But most of the time brands make themselves the hero of the story, focused on myopic selling of product features and benefits. Right there the disconnect occurs because consumers aren’t listening any longer to self-serving forms of brand outreach.

Brand narcissism is alive and well…

It’s a pandemic. Far too many businesses believe the marketing strategy needs to be about themselves. Conventional logic states the challenge is clearly, succinctly stating the product attributes in a persuasive (where creative weighs in) way. There was a time pre-Internet when brands controlled the flow of communication and this form of outreach was the norm.

In the digital era consumers have gained absolute control over the brand/user relationship and their ability to avoid “selling” is unassailable. All it takes is a few hours of commercial interruption on TV and you are witness to the pandemic of brand narcissism that reigns over the airwaves on a daily basis. The explosion of streaming platforms that are devoid of commercial side trips is testimony to the relief consumers want from the constant drip of 30-second selling.

The secret to going from upside down to right side up

But there’s hope, and light, and resolution ahead. Together we can end the tyranny of brand narcissism and gain the eyes, ears and devotion of consumers who embrace the brands they care about and actively “join” the brand as members of a growing, engaged community.

Who is the hero of the brand story? It’s not the brand, it’s the consumer. When the brand puts the consumer at the center of strategy creation and works backwards from there, the door is opened to a potential connection. It is the consumer’s needs, pain points, problems, concerns, wants, desires and aspirations that matter most. The story begins with them and in that moment of insight we find the most important opportunity for improved brand communication and outcomes: relevance – to the consumer and their life’s journey that we are working to improve.

What is the brand’s role in the story? Every winning, successful cinematic story follows a similar path – the brand is the guide, the expert, the wizard who helps the hero learn and understand the path to transformation. Luke Skywalker had Yoda. Frodo had Gandalf. The brand is an inspiring coach in a storytelling dynamic that begins with understanding and empathy for the consumer’s interests and struggle for improvement.

Food and beverage the living example

What is it consumers are looking for from what they eat and drink? You may think it’s 25 percent less sodium or plant-based ingredients. People have connected the dots between the quality of what they ingest and the quality of their lives. What they care about is their health and wellness; the connection that has to their energy, performances and longevity.

We are all human beings and in that irrefutable condition, who desire the experience of great taste and the warmth of social interaction around the dinner table with friends and families. For some, the love of food runs deep in the kitchen where creativity, experimentation and learning are unleashed, while delivering the product of that skill as an expression of love for others in the family who will enjoy the feast they’ve prepared.

Functionally some foods may also be tools to improve exercise regimens, sports activity, assist sleep, promote brain function or the like. But it isn’t the chemistry they care about. It’s the ambitions they have for personal change and improvement. Are we talking about their journey, conflicts and desires? Is the brand a guide and coach along the way?

This works when the brand realizes the path to greatness and transformative growth is fueled by actually, actively working to improve the lives of customers. This requires a less transactional view of the relationship.

The role of higher purpose

At a recent gathering of new and emerging brands at a conference in Chicago connecting potential investors with founders, a dozen companies made their pitch to an audience of potential check writers and influencers. I was surprised that only one out of the dozen presenters talked about a higher purpose for their brand and business.

It may be popular these days to say that the vast collection of new food brands now coming to a shelf near you all begin with a mission to support sustainable agriculture, lower the carbon foot print, hydrate those around the globe without access to potable water, but we find that many have not optimized or fully discovered the higher purpose they need to embrace.

Why does this matter? Because consumers want to align themselves with brands that share similar values. People are on the hunt for deeper meaning and care, deeply, about the role beyond commerce that brands play in making the world a better place. This cannot be bolted on to the marketing plan; it needs to come from a deeper space and with greater significance that informs every decision the business makes.

The impact on brand storytelling and traction is dramatic. People want to be a part of something greater than themselves. When the brand has a real mission, there’s a reason to join the community of followers that transcends the high-quality recipe made with natural, organic ingredients.

This is harder than it looks

You can’t dial up higher purpose from central casting. You can’t simply alter the tone of your communication without understanding the consumer’s real wants and wishes. At Emergent, we employ a message mapping process designed to capture this insight and intentionally design the brand story around the connection between consumer as hero and brand as guide.

It can be hard to stop the train of brand narcissism because it feels somewhat natural to be inwardly focused. After all most businesses are organized around the herculean efforts to create a terrific product.

However, the benefits of moving to an enlightened model with the consumer at the center are significant and bring assurance that the investments made in outbound communication will indeed engage and be received.

After all, brands want confidence that the investments in marketing are optimal and perform as desired. That confidence will be realized when the outreach plan understands the vital role of reciprocity in the relationship with consumers who graciously grant their most precious asset: scarce time and attention.

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.

Learn the Five Anchors of Authenticity

December 11th, 2019 Posted by brand marketing, Brand preference, brand strategy, CMO, consumer behavior, Consumer insight, Emotional relevance, Growth, Higher Purpose, storytelling, Transparency, Validation 0 comments on “Learn the Five Anchors of Authenticity”

A required course on the path to business growth

Yes, the word authenticity may have reached cliché status given its pervasive use as a shorthand explanation of what drives best practices today in brand building. However, truth is, sea changes in consumer culture and resulting purchase behaviors foretell how vital authenticity is to create meaningful relationships between brands and their users.

  • Yet too many companies fail to make authenticity a core platform in their marketing plans, missing the opportunity for real engagement and connection they require to advance the business.

Like moving away from highly processed cheese food (fake) in favor of real natural cheese (genuine), authenticity has much to do with the yearning for belief, higher quality and a better, more meaningful and relate-able story.

This age of authenticity is fueled by a fundamental rule: consumer-centric thinking and planning is a prerequisite. In practice, this means that an organization’s –

Every decision

Every strategy

Every tactic

Every investment

must build from a continuous study and acutely deep understanding of the consumer’s needs, wants and aspirations. The consumer should sit at the heart of the business. All strategic moves emanate from insight about their concerns and interests.

“Customer first” is a long-standing axiom of the retail industry, but as obvious as it may sound, most companies live in a perpetual state of brand narcissism. Company operational and marketing behaviors reveal it’s actually all about “us” – our product features, our benefits, our new formulas, our processes sitting in service of company business objectives.

  • Today however, success springs from becoming an enabler, partner and guide on the consumer’s journey, seeking alignment with their needs and becoming a helpful resource as they work to create a better and more meaningful life.

In the absence of this sensibility, it’s no wonder that engagement with traditional marketing – that’s more often a one-way selling monologue  – is rejected by consumers as irrelevant to them at best – annoying to them at worst.

Authenticity and curating a trusted consumer relationship

The core essence of what authentic means always springs from a less commercial and transactional view of the relationship between seller and buyer. There is a latent suspicion among most people that old-school marketing is really selling, and selling is a form of self-serving persuasion. Buyer beware.

The irony of all this is how human beings are wired to respond to messages. When the consumer is the hero of your story and the brand serves as guide to an improved life, engagement can be achieved. In the absence of this, messaging is primarily noise and ignored.

Thus, if an organization’s objective is assurance their marketing investments will secure traction and work in service of the brand’s growth, it is vital that authenticity is embraced and embedded into how the brand operates and communicates.

The future success of the business depends on it.

Here are the five anchors of authenticity that help drive consumer engagement and brand growth:

  1. Truth

Consumers are faced daily with evidence of misleading information, headlines heralding lapses in judgement and integrity; and stories of businesses operating in their own self-interest at the expense of consumer trust and confidence. An example: recently The Honest Company was outed on their absence of honesty over chemical ingredients they vowed would never be present in their products. Lawsuits have already begun. Consumers demand the truth and truth is neither conditional nor can it be diluted or violated without serious consequences.

  1. Transparency

Truth’s big sister, transparency is how trust is earned. When the curtain is raised and the door is opened to outside scrutiny of all aspects of the product creation process, the opportunity is there to engender trust. “Come see for yourselves that our words do not ring hollow, and that we indeed deliver on the promises we make. Go on, take a look – we have nothing to hide.” In the absence of trust people look for evidence they can believe in.

  1. Relevance

Who is the hero of the story told in your marketing? It’s not the brand. The customer must be the hero; their aspirations, wants and needs take precedence. When consumers see themselves in the story, they pay attention. Everything else is static. Relevance is the acid test of authenticity. It is the center of a less selfish view of the brand/user relationship. The story is always about them, and the brand’s role is Yoda (the expert guide) to Luke Skywalker.

  1. Directness

Consumers can smell traditional marketing a mile away. When the conversation is one-sided and filled with self-promotion and hyperbole, the opportunity for a frank and direct conversation is lost. Consumers run in the opposite direction because the story is no longer about them. Directness is an attribute of a trusted guide and resource. A real conversation set on how the brand solves the problems people face is direct and honest and open.

  1. Validation

In the end, consumers want to believe – but belief must be earned before trust is achieved. People no longer accept assertions and claims at face value. They look for validation of what a brand conveys from sources they respect and perceive to be honest and unbiased. This is the power of social proof and why the voices of real people talking about their experiences with the brand are so powerful. People believe their peers and outside experts before they believe what the brand itself is saying.

Have you noticed a consistent theme in here?

Trust is required for any relationship to exist and it’s hard to earn and easy to lose. The future of marketing is less about entertainment, persuasion and artifice and more about conversation and openness. The goal of every brand is to be an accepted partner on the journey to an improved, happier and healthier life.

When the brand is authentic and honest, we open the door to reciprocity. It just makes sense to put the consumer at the center of strategic planning. Once there, this insight and understanding fuels effective strategy and helps brands avoid wasting money on marketing that doesn’t connect.

Emergent has a defined process to build messaging based on these principles: an approach that eliminates guesswork and serves to draw the consumer in because they are always at the center of the story.

Can we help you build the right story? Let us know if you’d like to learn more about our unique approach to effective messaging.

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.

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.

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