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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.

 

 

Nation’s Restaurant Chains Stumble Onto Goldmine

May 15th, 2018 Posted by brand marketing, Culinary inspiration, Digital ordering, Food service, Healthier habits, Healthy lifestyle, Healthy Living, Navigation, Restaurant trends, Retail brand building 0 comments on “Nation’s Restaurant Chains Stumble Onto Goldmine”

Can regulation make it rain?

On Monday, May 7 Federal regulations went into effect requiring any foodservice retail business with 20 or more locations to begin posting nutritional details for food and beverage items on their menus. For most foodservice operators this means a revamp of menu descriptions and the addition of nutrition data sections at their web site and point of order. Typically this features spreadsheet-type lists spraying a blurry, eye chart-worthy inventory of calorie, fat, sugar, cholesterol and sodium stats.

But hidden within the clarion call for more what-you’re-eating disclosure is a potential restaurant business goldmine. At stake is an important regulatory-inspired opportunity for change. Important given foodservice businesses already face increased dining dollar competition from the significant resurgence of home cooked meal popularity. Yes, a home kitchen renaissance is underway, spurred by pervasive consumer interest in healthier foods and a desire to exercise more control over meal preparations, portions, costs and ingredients choices.

  • Studies show consumers believe dining out means agreement to compromise on their healthy eating interests while they navigate a trip down the boulevard of indulgence. A recent report by food industry trends watcher The Hartman Group, revealed consumers increasingly blame restaurants for a stunningly short list of healthier choices and absence of transparency around food – thus why they feel obligated to stow their healthy lifestyle interests at the vestibule of their favorite restaurant.

According to Hartman’s work, when the majority of consumers who already claim eating out is less healthy answer why this is true for them, the top scoring reason ̶ at 41 percent of those surveyed ̶ was a focus on ‘other things’ rather than health and wellness. But maybe it doesn’t have to be this way.

If prevailing food culture shifts point to home-cooked meals as the best and healthiest option for the vast majority of consumers, where does that leave restaurants on the better-for-you lifestyle bandwagon?

Could regulation make it rain?

The regulatory requirements may have issued a super-sized opportunity to reframe the restaurant menu story around a greater variety of healthier menu options. Then advanced with new technology that allows patrons to configure their own more informed, personalized menu choices ahead of arrival or on site with mobile friendly apps.

Reformulation through culinary innovation

But first, is the product itself. Restaurant meals can be made healthier without sacrificing taste by applying some of the more enlightened thinking now fueling the growth of new, emerging packaged food brands that are mounting a supermarket shelf takedown. Novel ingredients, cooking techniques, new forms of sweetening using natural sugars or sauces made with vegetable broths; meat alternatives formulated from nuts or pea protein – a cornucopia of new innovation is circling the food industry with an offer of improved nutritionals while delivering the indulgent flavors and textures of chef-inspired food.

There’s simply no longer any reason why menu items can’t be made healthier while retaining taste. It may add cost per serving but then we’ve also have seen repeatedly seen that consumers are willing to pay more for healthier fare if it can be verified as such – assuming taste is not sacrificed on the alter of improved nutrition numbers.

California Pizza Kitchen (CPK) and MyMenu Tech

San Diego-based digital foodservice player HealthyDiningFinder.com, originally stepped into the restaurant marketplace to curate a search-able database of restaurants offering healthy menu items. More recently, they’ve rolled out their new MyMenu platform at CPK and Mexican cuisine specialist Rubio’s Coastal Grill, an algorithm driven business that offers restaurants a plug-and-play solution to their regulatory obligations, but served in a more user-friendly experience. It also brings a compelling add-on benefit: personal menu customization.

California Pizza Kitchen’s MyMenu pages open the door to new reasons to visit: With a few short clicks using a sliding bar selection tool on desired nutritional limits, the platform automatically sorts menu choices according to these preferences while calling up attractive photos and detailed descriptions of each dish or beverage. It reveals what’s in them and what they impart in terms of nutrition impact (calories, fat, sugar, etc.).

The Rubio’s MyMenu page also offers a pre-set list of menu alternatives created by Healthy Dining’s dietitian experts around lifestyle preferences such as Energy, Fit Lifestyle and Weight Control. Each choice rolls up special menus based on these specific interests.

The tool’s flexibility creates the option to customize a dish with ingredient swap-outs or to build a full meal while each dish and drink selection repopulates the overall impact on nutrition outcomes, so you know immediately how many calories and fat grams are involved.

  • In a soon-to-arrive platform enhancement, Healthy Dining says guests will be able to save selections for future use, and there will be options for purchase on-site, for pick-up or delivery. Then patrons will be able to build and retain their own personal menu for a variety of their favorite eateries using the tool  ̶  all based on individual dietary preferences and healthy dining interests.

Of course, the key here is to actually have healthier choices available, and in doing so, solve the dilemma of perceived nutritional sacrifice that restaurant eating might entail. The goldmine is simple: remove the friction from healthier choice at out-of-home eating by offering more healthy choices.

Then look to software platforms like MyMenu to allow patrons to examine, sort and retain their healthy meal preferences ̶ and with it creating an opportunity to forge foodservice brand preference.

For those restaurants that get this right, it could be an equally compelling do-it-for-me dining offer that rivals the siren song of home cooked healthier meals.

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.

 

 

Farm to table dinner

10 Food Shopper Trends We’re Watching

August 21st, 2017 Posted by consumer behavior, Food Trend, Healthy Living, Insight, Navigation, Retail brand building, shopper behavior, shopper experience 0 comments on “10 Food Shopper Trends We’re Watching”

Fresh is the final frontier…

We believe that consumer insight should inform strategy. So we place a great premium around here on monitoring behaviors and cultural trends in the food business.  Even more so now that food retail is at a crossroads with e-commerce accelerating rapidly to compete for more shopping occasions.

Emergent recently examined a series of reports from the Food Marketing Institute and research company The Hartman Group, profiling shopping trends in the grocery retail business.

We’ve identified 10 developments worth watching as the food retail business continues to transform amid the growth of consumer preference for higher quality, more authentic and real-food products.

1. Of millennials, 43 percent are now shopping online for groceries at least occasionally, up from 28 percent in 2016 – a 15-point climb in one year!

2. Most of this growth is coming from households that shop online routinely, and thus are already comfortable with e-commerce transactions.

3. Important to note millennials are more likely, however, to buy packaged products online rather than fresh and perishable items.

4. Gen-Xers with kids are more likely than other cohorts to actively use grocery store apps.

5. Millennials with kids are more likely to participate in grocery store social networks.

6. Millennials are more concerned about CPG and retailer:

Honesty

Openness about animal welfare

Ingredient sourcing

Social responsibility

They are apt to make judgments on the basis of ethics and sustainability practices.

7. Twenty-three percent of grocery shoppers claim to avoid GMOs, mostly for health related reasons, ‘naturalness’ and a desire to know exactly what’s in a product.

8. Top three reasons consumers prefer locally sourced products:

Fresher –                               72 percent

Support local economy –   65 percent

Better taste –                        54 percent

9. Seventy-six percent of grocery shoppers think a home-cooked meal is healthier than out of home meal options.

10. Households with kids have the highest adoption rates for retailer prepared meal solutions; two out of three households purchase them at least occasionally.

Most impressive is the speed of change we’re observing in the food marketplace, and the need for retailers especially to work smarter. This is done by embedding uniqueness and differentiation in their banner brands, and creating immersive experiences for shoppers in both online and bricks and mortar environments.

For retailers and CPGs still vying for transactions, it’s critical to realize that consumers have changed the rules. Those brands and banners that embrace connecting to shoppers in ways they find more helpful and meaningful will earn the business and their loyalty.

More specifically, the path to consumer engagement is shifting and healthy lifestyle is driving this transformation. Emergent is a specialist in leveraging this insight to grow food businesses. We bring the latest insights and innovative strategies to help food businesses navigate the new consumer landscape.

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 emerging and established 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.

Marketing Launch Button

Part 1: Emergent’s 2016 Marcom Myth Busters

December 16th, 2015 Posted by brand marketing, Insight, Navigation, Retail brand building, retail brand relevance, Transformation 0 comments on “Part 1: Emergent’s 2016 Marcom Myth Busters”

What Clients Often Want…Artists of the Launch.

Emergent’s unique business model casts our client relationships in two principal roles:

  1. Communications, mostly earned, owned and social; and
  2. Brand and business consulting, rethinking the organization’s mission, product and brand strategy.

Every so often these two areas integrate with one client and in those cases we usually find some of the most outstanding work we do and results that can be truly, wonderfully transformational.

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Crimes Against Humanity: Advertising Edition

October 1st, 2015 Posted by digital tools, Human behavior, Insight, Navigation, Uncategorized 0 comments on “Crimes Against Humanity: Advertising Edition”

Ushering in the dawn of passion-based engagement.

online advertising frustration

Fed up with online ad intrusion:
“At least 34% of all U.S. adults use ad blockers.” (Ad Age, 2015)

According to a recent report from the Center for Media Research, people are increasingly –

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