Posts in Retail brand building

Pet brand sameness works against brand engagement

How to Disrupt the Sea of Sameness

September 16th, 2020 Posted by brand marketing, brand messaging, Brand preference, brand strategy, branded content, CMO, consumer behavior, Consumer insight, Content Marketing, Emerging brands, Emotional relevance, engagement, Healthy Living, Higher Purpose, Pet food, Pet food marketing, Retail brand building, retail brand relevance 0 comments on “How to Disrupt the Sea of Sameness”

Similar brand strategies lead to undifferentiated communication

Nowhere do we find the unrelenting challenge of sameness operating in full relief more often than the pet food business. No matter what product or retail category you are in, the requirement for message uniqueness and differentiation has never been higher. Here’s how to disrupt the pattern of sameness that follows brands around like a virus.

The good news: The pet food industry is expanding, fueled in part by the dramatic growth of pet owning households, now forecasted to reach 71 million in the U.S. by the close of 2020. Despite economic climate challenges, runaway joblessness and the vagaries of changing shopping behaviors spawned by the pandemic, pet business trends continue on an upward trajectory. The pandemic has served as a catalyst for elevating the pet value proposition. We need our furry companions now more than ever.

The tougher news: Yet despite this picture of continued potential prosperity that floats all premium pet brand boats, the competitive players seem to be held captive in a repetitive messaging loop that confronts pet parents trying to navigate the store aisles. Everywhere their eyes scan, the sea of storytelling sameness stares back, defeating opportunities to connect on an emotional level.

  • What marketing medicine is required to get pet brands to stop and reconsider the path to engagement? To step beyond, above and outside their tendency to reinforce similar tropes about formulation integrity, while intractably married to the protein percentage wars, and accented by assertions of nutritional superiority or human grade ingredient quality.

Everyone believes they make the best food. Indeed, many brands now have upgraded the quality of their ingredient sourcing and formulation techniques, to offer truly nutritionally- dense solutions. But does the pet parent make decisions on the cold analysis of facts and figures? The answer is no they don’t.

Here’s what we know:

  • People run in the opposite direction, away from complicated brain taxing messaging that would require them to study and consider elaborate details of pet nutrition.
  • Human beings are feeling creatures who think and not thinking creatures who feel. It is heart- over-head, always.
  • Trust is an issue in pet food driven in part by the elaborate claims of human quality food ingredients magically encapsulated in a small brown nugget known as kibble. It looks industrial to start with.

The quite natural conclusion of most pet marketing plans is focusing inwardly on all the reasons why brand X pet food is better than brands Y or Z. The incredible efforts undertaken by companies to make a high-quality product IS the story, correct?

The challenging outcome of this thinking is a recipe for similar statements and claims that operate in conflict with the fundamental requirement for brand uniqueness and differentiation. Hence the sea of sameness.

How to break the cycle of sameness.

What does the pet parent care about? Their pet. The incredible emotional bond that sits between them is unshakeable and demonstrable and visceral and real. What is pet food? It is the instrument of expressing love and care for their pet’s wellbeing and healthy longevity. Why? Because they have connected the dots between the quality of what they themselves eat and their quality of life, a point of view that translates over in a nano-second to their beliefs about pet wellness.

We know it’s really tough to refocus marketing on the pet parent and their lifestyle aspirations ahead of what’s going on in the formulation, the manufacturing and the supply of high-quality food ingredients. Yet the enemy in here is the very sameness this encourages.

  • When you can walk through the store aisles and literally transfer packaging statements from one brand to the next one over, and it remains essentially valid, you know the playing field is going to be murky for the consumer. Maybe even confusing.

Breaking the cycle requires putting pet parents at the center of planning and working backwards from there. It is the focus on them, their lives, interests and relationship with their pet where all the alchemy of marketing magic happens.

Great marketing isn’t logical and linear. It is better when the plan embraces the idea that humans are emotional and often irrational, driven by whims and the perceived wisdom of crowds.

Love in a bowl.

That’s right, love. You aren’t selling pet food or de-boned chicken or 38% protein. You are selling the means to express the great love people have for their pet. Emotional communication occurs when storytelling and images and focus are on the pet parent ahead of the product. Holding up a mirror on what they believe: “I’m spending more on pet food because I care deeply about the health and wellbeing of my four-legged family member.”

So celebrate the bond, the moments of happiness, the relationship, the companionship, the emotional connections and experiences of a life lived alongside furry children. In this way the pet parent immediately becomes the hero of brand storytelling, and in doing so the communication achieves its goal of being wanted and engaging.

Talk about the stories of your customer’s pet lifestyle experiences, triumph over health challenges, and the miraculous emotional connections people have received during one of the most uncertain periods in human history. When your marketing voice is a reflection of real world experiences and the value pet parents experience with their pets, your brand becomes a partner with them on their journey to a more fulfilling life with their pet companion.

  • This is how brand relationships are formed and fed. All of a sudden it matters less to  communication effectiveness when protein percentages vary slightly brand to brand. You are no longer chained to specsmanship. You have successfully disrupted the sea of sameness.

Should this kind of thinking inspire you to consider fresh ideas and approaches, please use this link and let’s start a conversation.

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.

Consumers work to avoid risk in all of their purchase decisions

Marketing Effectiveness Depends on Respect for Human Behavior

August 20th, 2020 Posted by brand advocacy, brand marketing, brand messaging, Brand preference, brand strategy, consumer behavior, Consumer insight, Content Marketing, Emotional relevance, engagement, Higher Purpose, Human behavior, Marketing Strategy, Retail brand building, Social media, Transparency 0 comments on “Marketing Effectiveness Depends on Respect for Human Behavior”

Three ways to overcome marketing’s biggest challenge: risk avoidance

For many years marketing communication was not sufficiently informed by behavioral psychology and a deep understanding of how humans prefer one product or retailer over another. Brand campaigns were hit and miss, sometimes landing on the right note or idea and in other instances failing to create any real engagement. Do you know with 100 percent confidence if your brand communication is wired properly for human effectiveness? Read on.

What lies at the foundation of disconnects and misfires?

Rory Sutherland, Vice Chairman of my former employer Ogilvy & Mather said it best in his precedent-setting book on the subject, Alchemy: “It is thinking without thinking that we are thinking.” Every human is hardwired to dodge perceived risk. Our purchase behaviors are 100 percent driven by trying to avoid making a bad decision. As Sutherland describes so accurately, “a 1 percent chance of nightmare dwarfs a 99 percent chance of a 5 percent gain.”

And perhaps most important, it is the sub-conscious side of the human brain that informs these decisions and actions, not the rational and learning side that is frankly, lazy, and defaults to the far smarter area of the brain that is operating at greater capacity below our conscious awareness.

More than a few brand minders think marketing effectiveness is resolved by providing logical, fact-based evidence and arguments for why a product or service is the best choice. It is, afterall, a convenient way to answer the company desire to self-promote new innovations and technologies.  Yet again, humanity steps in to deny those assumptions for the very reason people are not analytical, fact-driven decision-making machines. Complicated messaging that taxes the consumer brain remains an unwitting invitation to tuning out entirely. This kind of outreach is directed to the learning area of our mind that reflexively seeks to avoid burning mental calories and, thus, simply ignores it.

  • Imagine for a moment if you could fully dial in the psychological keys to engagement and position your marketing communication correctly to respect what we now know about how people behave and will continue to behave until the end of time.

So powerful is the motivation to avoid unpleasant surprises that people resort to a variety of risk-mitigating behaviors on the path to purchase.

The Power of Uncertainty

At this point you may observe in stark relief why it is so important to access the knowledge and skills of strategic and creative craftspeople to build your brand story. Ironically the logical, rational argument is often the least effective. Powerful communication does not always follow the linear path of a + b = c. While Emergent might describe itself as a marketing communications firm, in reality we are Behavioral Messaging Architects.

  • Wine tastes better when poured from a heavier bottle.
  • Pain relievers are more effective when people believe they are expensive.
  • Anything in scarce supply immediately becomes more desirable.

We live in an uncertain world. At any given time there is limited trustworthy information available to people. Yet consumers crave the illusion of certainty and so are uniquely drawn to signals of honest intent. This works effectively because it lowers the chance of a purchase decision being disappointing.

Humans are famous for claiming to be rational thinkers when in reality their actions and decisions are influenced through perceptions, emotional cues, and visual signals of trust and integrity. In our daily vigil to avoid unpleasant surprises people resort to cues that help resolve their requirement for certainty.

  • The real function of earned media strategy is risk mitigation. When products are vetted in credible examination by third-parties, people believe the claims are verified through an independent source. Not so much the words as the source, context and environment in which the words appear.
  • Even more important is social proof and word of mouth for the very reason that people believe other people before they accept the assertions and claims made by a business. More on this later.
  • Wisdom of crowds is simply that. If a product is perceived to be popular and used satisfactorily by many then likely it won’t be terrible.

Why has transparency surged as a viable path to better brand relationships? Because at its core, the act of being transparent is a demonstrable, visible move to embrace honesty and thus remove risk. Transparency has real leverage attached to it because it helps solve the uncertainty faced by consumers each and every day.

We did this to great effect for Champion Petfoods (makers of Orijen and ACANA brands), creating the pet food industry’s first Transparency Council as a platform to build independent assessments of truth and honesty about how Champion made their pet food and sourced their ingredients. Important here was the symbolism and trust signal created by the Council’s very existence and a regular calendar of content produced that leaned heavily into validating through observation what Champion promises. It was a bold move at the right time.

Overcoming DNA-embedded risk avoidance

If risk perception stands between your brand and its future growth prospects, it only makes sense to work hard at mitigating it. It’s important to note here that rational arguments aren’t going to succeed. Signals of honest intent and credible voices however can be enormously effective.

Let’s begin by unwrapping the two secrets to effective messaging:

First, people do not buy things, they purchase meaning and context. What are you giving them that imbues your brand with a higher purpose and thus a purchase takes on greater meaning as a visible symbol of their values and beliefs?

Second, the hero of your storytelling isn’t the brand. It is the consumer; their wants, needs, passions, concerns and desires, with the brand positioned as coach and expert advisor on their life journey. Don’t compete with the consumer for the hero role! Said another way, talk about them more than yourself.

Three ways to overcome risk

1. Perhaps most important is understanding the end goal is cultivating trustworthiness. How can your company and brand humanize itself and mirror the very best qualities people look for in those they implicitly trust?

Those qualities include:

Empathy

Care

Responsiveness

Unselfishness

Openness

Truthfulness

Being strong enough to admit mistakes

Actions speak much louder than words, so the question here is how does the company operationalize and behave in a manner that respects these principles and assures they are held in high regard by employees.

2. Enlisting the voices of outside, independent, objective observers and experts to validate your promises and claims. This may sound like an analytical approach, but the devil is in the details of how this is done. The symbolism of allowing others to report is a significant move. What is reported on matters – your responsiveness, humanity, caring, truth-telling and unselfish acts are far more persuasive than your technology, recipe, formulation and production prowess.

Embedding a higher purpose in how the company operates and its reason for being will go a long way to informing this approach fully and successfully. You can read about Harnessing the Power of Purpose in greater detail here.

3.  Social proof and user-generated content (UGC) are the twin social media strategies that work to take risk out and replace it with believable evidence of performance and satisfaction. Trust in brands and corporations have been in decline for years.

This is why social channel strategy and encouraging user-generated content is so vital on the path to risk abatement. The honest, unscripted accounts of experiences and outcomes from real people are testament to what you want others to believe about the benefits of using your product or shopping your store.

When Emergent goes to work on creating a messaging platform for a client brand, we focus on purpose, cause, context, deeper meaning, emotion and effect. We look for visual signals that flag honest intent for the very reason we know these characteristics and words are more powerful than fact-based stories.

It is difficult to accept that humans are not rational and logical players in your marketplace. However, once this is understood and embraced, a whole new world of repeatable effectiveness is ushered into the marketing plan for the very reason it is built on real respect for the human we wish to serve.

If you would like to discuss in greater detail how this applies to your brand or store, use this link and let’s start a conversation.

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.

Raley's food retail innovation in Truckee, CA

Imagine a Grocery Store Built on Higher Purpose

August 13th, 2020 Posted by brand marketing, brand strategy, Consumer insight, Culinary lifestyle, food experiences, food retail strategy, Healthy lifestyle, Healthy Living, Higher Purpose, Marketing Strategy, Retail brand building, retail brand relevance, shopper experience, Supermarket strategy 0 comments on “Imagine a Grocery Store Built on Higher Purpose”

Food Retail Innovation Now in Truckee, CA

Raley’s, the family-owned Sacramento-based supermarket company, recently launched a new grocery store concept they envision as a model of how food retail should evolve to build consumer relevance. Located in picturesque Truckee, California, just outside Lake Tahoe, the trading area is populated with families devoted to an active, outdoor lifestyle.

Raley’s designed the store concept with Truckee’s active families in mind – visualizing a supermarket focused entirely on healthy living. The Raley’s O-N-E Market banner (Organics, Nutrition, Education) is a four-walled, 36,000 square foot better-for-you food discovery zone. Designed for people who understand there may be a direct link between what you eat and the quality of your life, the concept mirrors their desire to seek out better choices, explore a more mindful selection of products, and learn about improved nutrition. Remarkably, it is a food store that embodies owner Michael Teel’s higher purpose mantra to “change the way the world eats one plate at a time.”

“We have been on a journey for health and wellness, and Raley’s O-N-E Market is the next step in our company’s transformation,” said Chelsea Minor, Raley’s Corporate Director of Public Affairs. “Raley’s O-N-E Market offers a highly-curated assortment of products that are organic where possible, wholesome, minimally processed, sustainably sourced and offers a stage for nutrition education. We want consumers to understand why these products were selected for our shelves and why they are better options for them and the community,” she said.

Who is really in charge, merchant or customer?

For the most part grocery stores operate in reverse from consumer lifestyle insight.  The shopping design and experience is most often built from the merchant’s business model intended to move boxes, cans and bags off shelves at velocity. Thus, in many ways, grocery stores are entirely recognize-able banner to banner with merchandise schemes and traffic flow patterns that follow a commoditized approach to assortment and shopping experience.

Which begs the question: what if a store format is re-imagined as a reflection of the lifestyle interests of its core customers, instead of the other way around? “The biggest differentiator is our product mix. We emphasize foods ‘free from’ artificial ingredients, colors, high fructose corn syrup, hydrogenated fats and oils and more. We source organic where possible – in produce over 60% of the department is organic to meet consistently high standards for health, nutrition and sustainability,” reports Minor.

As evidence of that commitment Minor says shoppers will not find any conventional soft drink products inside the store. Indeed, sugar awareness is a priority at Raley’s O-N-E Market. Any cereal containing more than 25% of its total calories from added sugar per serving is identified with a ‘Higher in Added Sugar’ shelf tag. Other categories getting the sugar evaluation include Ready-to-Drink (RTD) beverages, pasta sauces, baby food, protein bars and condiments like BBQ sauce and ketchup.

To help consumers make better decisions while shopping, digital screens in the front of the store rotate messages by department providing information on healthier choices. Foodservice areas use window clings and the menu board to help convey this useful information. Better-for-you guidance is also provided in price rails at the shelf to help shoppers make informed purchase decisions.

Retailer as life partner on journey to healthier lifestyle

Raley’s believes the consumer should be equipped to shop with better information and guidance. In an effort to help them realize their healthy living ambitions, the product options they’ll encounter already lean heavily in that direction. In the high traffic meat department, attributes such as organic or anti-biotic free are flagged within an assortment that’s already curated with healthier and higher quality choices in mind.

To help fulfill the Education mission, the Truckee Raley’s O-N-E Market is their first store to have a registered dietitian on-site to interact and coach consumers. Scott Brown, Raley’s first in-store registered dietitian nutritionist (RDN), is there to conduct nutrition tours, provide one-on-one healthy living consults and answer customer questions. Raley’s customer loyalty platform also gets a twist in Truckee: the “Something Extra Health” program offers biometric screenings, classes and in the future will feature vendor presentations.

“Shoppers these days want to know more and are faced with an increasingly confusing environment around navigating claims like ’natural‘ and ’plant based,’” said Minor. “We feel we have a responsibility to help explain and clarify what best practices look like in making food choices. Our role as retailer is to help them on their healthy living journey by operating as guide and coach.”

The future of food retail?

Most satisfying in our conversations with Minor and others at Raley’s was their sense of commitment and passion about what ”changing the way the world eats one plate at a time” truly means and how that plays out when you’re inside the front door. The position Raley’s O-N-E Market takes is active not passive, expressing leadership rather than go figure it out for yourself.

No one is going to beat Amazon on friction-free e-commerce, or Walmart on lower price. We have ample evidence that the middle market in grocery retail is a tough place to do business when the value proposition is based on location (getting weaker to defend) or all-things-to-all-people assortment (not a real strength anymore).

We believe the platform of highly differentiated and focused concept – especially in the Health & Wellness space – gives consumers an experience and another reason to shop brick and mortar. This is critical to food retail success and means leaning in fully to a commitment that places the customer at the center of strategic planning.

This insight must be informed by a crystal-clear higher purpose that translates into on-the-ground strategic decisions which defines and manifests in every aspect of store operation.

Human beings are emotional creatures. People are not fact-based analytical decision-making machines. We know the human sub-conscious plays a far more important role in helping guide actions and decisions than the cognitive side, yet most retailers operate on the “rational” channel.

When it’s heart-over-head, the grocery store shopping experience is enhanced by strategies that acknowledge our deep love affair with food, interesting culinary experiences and the prevailing desire for a healthy lifestyle.

  • Disney knows how to create the magic in their kingdom. Imagine a food store with the same heart and passion for food experience and how that could play out in a store setting.

Raley’s recognizes the growing importance of grocery foodservice experiences especially at a time when going to restaurants is less desirable. Yet the magic of environment and ambiance are no less important here than at the corner bistro. “Raley’s O-N-E Market includes McKinney Loft – a tribute to Steve McKinney, skier, mountaineer and local icon. The loft features plenty of seating, a beer and wine bar, bar bites, and an outdoor fireplace and large TV screens,” explains Minor.

At the crux of Raley’s likely success with Raley’s O-N-E Market is its higher purpose. This is harder to define correctly and to optimize fully. For that reason, Emergent has built a four-step plan to guide higher purpose development. You can download a copy here.

If would like to discuss this in the context of your business and its future, please use this link to start a conversation.

For more food trends, consumer insight and communications strategy follow us on Twitter @EmergentLiving.

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. Previously Bob was Founder and CEO of Wheatley & Timmons; Founder and President of Wheatley Blair; President Ogilvy & Mather PR Chicago; President and COO Ogilvy & Mather West. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

Coronavirus Call to Action for CPG and Retail

March 13th, 2020 Posted by Agency Services, CMO, consumer behavior, e-commerce, Emotional relevance, food retail strategy, Human behavior, Insight, Retail brand building, Social media, Supermarket strategy, Validation 1 comment on “Coronavirus Call to Action for CPG and Retail”

Your next moves to retain trust and reputation

Right now, your consumers are worried, bewildered, concerned and uncertain about what shoes might drop next. They are being sent home from the office, schools are shutting, sports and entertainment events are gone, Spring break vacations are upended, and the future impacts of the pandemic are hard to predict.

We know you equally have concerns and are working hard to address any uncertainties. We’re with you and know your heart is in the right place.

This is a significant moment on the continuum where brand trust and reputation can be secured or injured. What you do next will matter, and it’s important to note that communication may be one of the most important assets at your disposal.

  • Honest, transparent messaging breeds trust and feeds patience, while silence will fuel uncertainty and dilute confidence.

Number one: communicate early and often

This is not the time to be quiet. If you make or sell a consumable product, especially food, beverages or pet food, people are worried about what comes next. Here’s what they want to know, right now.

For CPG

  1. Is there anything going on in your supply chain that will negatively impact the availability of your products? You may not have all the answers but it’s better to communicate current status than to stay silent. What you don’t know you state as such.
  2. What’s happening in your manufacturing, whether that be your own facilities or co-packers, with respect to employee activity, plant hygiene, and mitigation plans should people be sent home?
  3. What are your standards, methods, procedures on maintaining vigilance over ingredient integrity and safety, and testing for same through the product creation process?
  4. How can they get your products and services online? We know that feels like a ‘water is wet’ type question but it’s important and should be addressed in these conditions.

For retailers

  1. Are you able you keep customers apprised of out-of-stocks and shelf replenishment schedules?
  2. Can your pharmacy experts set aside scheduled time for by-phone consultations or online Q&A’s?
  3. Are you signaling home delivery wait times when capacity is stretched?
  4. What are your food handling an on-premise hygiene policies and procedures to help avoid any contamination?

The message matters

Your voice in this moment will impact the outcome. It’s important to avoid corporate speak, industry jargon and complex, “inside baseball” forms of messaging that only an employee can unravel.

A human, approachable voice including information that is presented with clarity and transparency will resonate with those you wish to reach. People routinely ignore dense, complex, analytical-style messages. Simple is better.

This is not the time for grand standing, self-promotional and brand-anthem style outreach that attempts to pass over the reality of what’s happening. Instead, empathy and care for the health and wellbeing of your users should ring through everything you release or post.

Next steps

  • Publish updates and trust-enhancing content at your web site and in your social channels on a weekly basis. More often if you have new news to share.
  • Keep it simple and straightforward.
  • Encourage dialogue and conversation at your social sites to invite questions from fans and followers.
  • As the situation changes, keep your stakeholders informed.
  • Be generous of spirit and look for “surprise and delight” opportunities and stories for users and channel customers. Celebrate helpfulness, acts of kindness, and ‘we’re all in this together’ kinds of inspirational unity.

Navigation leads to reputation

Your efforts to be accessible, approachable and honest here will lead to respect and confidence among the stakeholders that matter to the future of your business. Both internal and external audiences will benefit greatly from your efforts to keep them apprised of what’s going on.

As always should you need help navigating these uncharted waters, we’re here to support you with guidance, messaging, copy, media and anything else you might need.

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.

GroceryShop Returns

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

Perhaps the most important convention in the food industry

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

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

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

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

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

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

 The Future of the Food Business

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

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

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

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

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

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

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

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies. Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact Bob@Emergent-Comm.com and follow on Twitter @BobWheatley.

 

 

 

 

 

 

Digital commerce redirects the future of retail

June 27th, 2019 Posted by CMO, consumer behavior, Consumer insight, Digital marketing, e-commerce, food retail strategy, Retail brand building, retail brand relevance 0 comments on “Digital commerce redirects the future of retail”

Profile of refined strategy for brick and mortar

In today’s consumer-driven marketplace, staying ahead of food and lifestyle cultural swings, shopping behaviors and the significant sea changes they create, are the most important considerations to marketing strategy effectiveness. Failure to recognize and address these ongoing shifts can negatively impact brand relevance with core consumers.

Case in point:  increased traction of e-commerce occurring in most product categories consumers’ value is causing a domino effect that will drive the future of successful retail strategy. Consumers are pushing harder on their preference for retail uniqueness, differentiation and memorable experiences. In the first of our two-part series we will look at implications of digital commerce to retail, and in part 2 we’ll peel the onion on what’s coming for CPG brands.

Home is where the heart, wallet and shopping reside

As consumer friction declines in e-commerce purchases and fulfillment, the inevitable move to online-ordering convenience will continue to grab share momentum. This trend is starting to amass a variety of ancillary impacts, such as consumer preference for the exceptional retail experience over the mundane. When the very definition of convenience to satiate needs transfersfromregional zones toarmchairs and screens in the family room, retail businesses are now being challenged  to adjust their optics and embrace new cultural (read consumer) priorities sooner rather than later.

  • This is an inevitable transition. In a recent report from Federal Express, the granddaddy of quick delivery is projecting e-commerce growth will double the number of packages shipped to 100 million per dayby 2026.

The point-and-click ease of fulfilling product ‘wants’ creates a companion outcome: less and less venturing out from the four walls of the residence. More in-home purchase and consumption of everything. More online comparison shopping. More emphasis on consulting consumer reviews. Along with this at-home shopping revolution is a declining tolerance for the routine hassles of destination shopping and the time requirements to drive, park and walk. How far will people be willing to go for a shopping experience that has nothing special to offer — what’s really going to pull them from that point-and-click simplicity?

Experience with the endless shelf of digital commerce will adjust expectations of ‘want it now’ and cause people to be less forgiving of retail out-of-stocks and more limited assortments. With it, the added value premium on exceptional in-store experiences goes up as anything that feels commodity-like will yield to the ease of electronic ordering.

Trends ahead and the emergence of micro-trading areas –

Consider the long-term impacts of the decline in car ownership (once a defining metaphor for personal financial success and independence), alongside the emergence of driverless delivery vehicles and drones. Distance-confining legs, scooters and bikes are increasingly common modes of urban transportation. Witness the explosion of online restaurant and ghost- kitchen prepared food delivery that jumps squarely on the never-have-to-leave-home bandwagon.

As retail shopping becomes increasingly commoditized, there is a growing consumer thirst for scarce and transcendent experiences, more personalization and meaningful relationships with retail banners that matter. This may play against the vanilla, conventional character of some chain store concepts that can feel derivative, common and maybe even a bit boring.

By definition, the chain model depends on consistency and mechanization to achieve operating efficiencies and the ability to replicate at scale. Is it possible to rethink the business paradigm to allow for different designs, footprints and merchandise collections more attuned to the community they serve?

As convenience gets a makeover, with it comes a premium on re-casting what a trading area looks like to smaller circles of proximity. Alongside this condition we observe the continued idealization of the “small town” as a colloquial, romantic reference point for aspirational lifestyles. In urban areas this puts an increasing premium on reflecting neighborhood character and shopping within walking distance.

In Chicago, a fair example of this is Andersonville, a northside city neighborhood known for its Clark Street shopping district packed with unique collectible stores, fashion boutiques, local restaurants – all walk-able within a three-block core. Stands to reason this ‘go smaller’ development favors shopping experiences that mirror the lifestyle characteristics and populace of the neighborhood.

For retail we see five implications for planning strategy:

  1. Increased pressure on the viability of destination shopping centers, as convenience is recast within shorter distances from home.
  2. The rise of smaller footprint store designs that align with neighborhood shopping areas.
  3. Emergence of retail concepts based on lifestyle experience more so than the traditional array of shelves and merchandise. Instead the attractions are ideas, emotion and guidance rather than pushing merch off fixtures (a twist on omni-channel commerce strategies).
  4. Recognition that the future is with those who work to build bonds and relationships beyond just stocking inventory at a price.
  • Expect to see a host of novel ideas develop in service of more relevant lifestyle associations such as on-line dating brand Bumble and their wine bar café concept and Taco Bell’s new hotel.
  1. The bifurcation of omni-channel strategies to embrace exceptional experience that reside inside the retail store front while volume objectives are delivered online. How will this symbiotic hand-off work between high touch retail and digital convenience? Only the seamless survive.

Speaking of smaller footprint concepts, if people are increasingly food shopping for meals and menus more so than stock-ups, does it make sense to force them to search for 7 to 12 items in an 80,000 square foot maze? Can food shopping be made more fun and less of a navigational chore by specializing in what’s for dinner?

ALDI, a darling of grocery hard discount, recently announced an expanded test of their new “Local” store concept in the United Kingdom. The 6,000 square foot stores operate with 300 fewer SKUs than the normal ALDI. Proof that hard discount does not mean absence of insight, relevance and creativity.

Larger trend: ‘Extremeification’ of retail in America

Robinhood, the investment platform for non-one-percenters, recently reported examples of the growing bookends of success between the higher and lower ends of the retail spectrum — while the middle falls away. Restoration Hardware (RH) continues its relentless march towards further upscaling its retail roots. After recently posting a 7% gain in sales, RH stock shot up 25% on the related news of its new chic catalog concepts RH Beach House and RH Ski House. As well LVMH (Louis Vuitton Moet Hennessy) and Dollar General are celebrating record highs at the same time in their share prices.

Yoga pant purveyor Lululemon reports Spring quarter revenue of $782 million vs. its period forecast of $755 million, despite increased competition in its category. Last quarter profits hit a record $97 million. Hard discount and heavenly experience collectively show how disparate propositions that lean in heavily on their mission and ethos are advancing.

You have to stand for something — and go all in (go low or go high). In fact that’s really the message here. The future of retail belongs to the innovators who go deep on uniqueness and memorable experiences — which by definition requires focusing the concept and target audience appeal to a specific need and cohort. All things to all people is often a recipe for ambivalence.

Find your core, narrow your appeal, optimize your mission and go for it.

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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.

 

 

 

 

 

 

 

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