Posts in shopper experience

2019 and The Future of Food and Beverage Marketing

January 17th, 2019 Posted by Agency Services, brand marketing, brand strategy, CMO, consumer behavior, Consumer insight, food retail strategy, Healthy lifestyle, Healthy Living, Retail brand building, shopper experience, Supermarket strategy, Transparency 0 comments on “2019 and The Future of Food and Beverage Marketing”

Our strategic roadmap for the year ahead…

Today we map the framework for business growth in 2019 anchored strategically to achieve trusted consumer relationships in the year ahead. As we begin this journey, it is important to note the incredibly important work by the Food Marketing Institute compiled in the “Power of Health and Wellbeing in Food Retail” report. In our estimation one of the best analyses FMI has produced in recent times.

This is a forward-thinking review created under the experienced leadership of Susan Borra of the FMI Foundation, and executed with persuasive evidence by David Orgel of David Orgel Consulting, and key data supplied by The Hartman Group. It is also a remarkable summation of what Emergent has been forecasting and publishing in various venues for the last five years about evolutionary changes in the food and beverage industry.

  • What’s ahead is a deeper dive on the strategic priorities, areas of focus for planning, and a healthy helping of relevant consumer insight data.

Thus it is job number one at Emergent: to earnestly pursue insight into the hearts and minds of consumers – their wants, wishes, dreams, aspirations, fears and concerns. It is in this effort to get ‘underneath’ that we more fully grasp how consumer relevance and engagement can be achieved. Make no mistake, it’s more difficult to be seen and heard than at any other time in modern marketing history because the consumer controls the levers of commerce – and talking ‘at them’ is a recipe for disconnect. Thus why relevance matters greatly.

Dear reader, here we will summarize the most important and salient points and data that should be reflected in go-to-market planning for the year ahead. Simply said, this is a great way to kick off the year – offering firm, insight driven strategic guidance on what matters to people and its influential link to their purchase and shopping behaviors.

Armed with this understanding, the path to trust and relationship becomes clearer. As we’ve said many times before, genuine relationship is everything. Consumers are not walking wallets; they are real, living constituents – and to the extent businesses can make a meaningful difference in their lives, the opportunity to earn affection and spending multiplies.

  • Without consumer relevance and resonance, food and beverage brands cannot gain the ear and interest of consumers who have more quality choices, more channel options, more control and power than ever before – power that will quickly mark the winners and losers in the next 12 months and beyond.

The number one opportunity for brand and food retail resonance and business traction: leveraging Health, Wellness and Wellbeing.

Consumers across all age cohorts have fully connected the dots between the quality and types of food and beverage they consume and their overall quality of life. For this reason, the very definition of health and wellbeing has expanded to include a broader array of key lifestyle attributes consumers care about such as emotional health and happiness.

Whereas “healthy” was once more narrowly defined as weight management and calories in and out, today it is about food quality and the origin story behind the food. This interest is fueled by consumer demand for transparency as a new prerequisite for creating lasting, meaningful relationships with the consumers we wish to serve.

Yes that’s serve, and not sell! Transactional thinking can infect the marketing playbook with ill-advised strategies and foster brand behaviors the consumer immediately repels as advancing the company’s commercial interests over their own; selling at them rather than cultivating their trust which precedes any willingness to spend money.

2019 Strategic Building Blocks

Five key areas demand attention in strategic planning. This list provides the basis for a holistic strategy that reflects what consumers truly care about. It goes without saying these five areas allow for a wealth of engagement from content creation to communication activities. Here they are:

  1. Health – Number one is the growing influence of healthier eating on brand choice. Healthy, by the way, is increasingly a quality story not a sacrifice game. Healthy and indulgent are cohabitating.
  2. Nutrition – Consumers are now looking at nutrition density in the foods and beverages they prefer. This tracks closely with the table stakes demand for greater transparency around product ingredients, sourcing and manufacturing. What was once described as a clean label is transforming into clear This is marked by disclosure, clarity, openness, honesty and more guidance not less.
  3. Enjoyment – Taste is fundamental to the human experience. Higher quality food experiences can be found everywhere and the use of fresher, real food ingredients is elevating the taste experiences people crave. Food is to be savored and enjoyed. It is an adventure. There’s a hedonist lurking in everyone in varying degrees.
  4. Discovery – Meal kits might offer an excellent example of how the food industry feeds low-risk culinary experimentation. The growth of new cuisines, tastes, global flavors and use of more exotic ingredients serve to expand the horizons of what consumers want and expect. We all want more choices than meatloaf and fried chicken at the Deli counter.
  5. Connection – Food is a social lubricant. It is a facilitator and player in how we relate to and engage our friends, family and business associates. No surprise here that according to the FMI report, 84% of consumers say it is very or extremely important to have a family meal together at home. People hunger for the connectivity and social discourse around the table. Food is an essential player in our social lives. Great food and great conversation are partners in life’s most memorable moments.

Two Key Strategic Trends in 2019

We stand today at the threshold of a new developing category in food and food retail. Early movers in this space stand to benefit from ‘first with the most’ opportunities that fall from being able to define what this new category is about and what constitutes best practices.

  1. Food As Medicine

This is an evolution and elevation of food and beverage solutions – products that aim to provide direct, measurable benefits to health and wellbeing. We’re not speaking just about weight management, although that is a component. We’re talking about food solutions that are an alternative to drug therapies or as preventatives to needing drug therapies.

In case after case we find that diet plays a role in the onset of disease. So, too, we’re discovering that foods high in fiber, plant sterols, Omega-3s, antioxidants, prebiotic and probiotic ingredients can be ‘dosed’ to achieve specific health benefits – without the often debilitating, unhappy side effects that can accompany medications.

Step One Foods in Minneapolis (disclosure: Step One is an Emergent client) is an excellent example of this emerging trend. Step One’s line of packaged foods including bars, smoothie and pancake mixes, oatmeal cereal and toppers are clinically proven to reduce LDL cholesterol at levels that match or exceed the outcomes from statin drugs.

It’s important to note from FMI’s report that 66% of shoppers already view foods as “medicine for their body.” When asked about food as a contributor to their health, the top five interests in solutions include:

  • Cardio-vascular health – not surprising as heart disease is the number one killer in America, and effective options like Step One speak directly to this need.
  • Weight management – a perennial concern, weight management remains connected to healthy lifestyle and a sense of wellness and wellbeing.
  • Energy – the link between energy and lifestyle satisfaction is palpable. Busy lifestyles and career demands make energy an important priority for people.
  • Brain function – memory and cognition are two areas we can expect more innovations to surface in as people increasingly look for a mental edge.
  • Digestive health – we are only beginning to see the growth in attention paid to inflammation and its role in aging and disease. This will continue to get greater innovation priority.
  1. Mining competitive advantage: Fusion of Transparency and Trust

Earning trust may be the single most important objective in the development of sound, successful marketing plans. This is due in no small part to its pivotal role in securing consumer interest and engagement and the avalanche of evidence that brand trust continues to decline.

Trust precedes any kind of brand/consumer relationship. Demand for transparency is the ante in curating trust. Consumers define transparency as “open, honest, clear and visible.” In short being transparent, providing access and more information about how food and beverages are made and what’s in them.

FMI’s report cited five key areas where consumers are looking for greater disclosure:

  • Ingredients used
  • Origin of ingredients
  • Product creation process
  • Animal welfare
  • Absence of anything artificial like preservatives or chemicals

Emergent guidance: build a suite of communications and content around how you make your products, the stories of suppliers and their work, what happens at your plant, what your standards are on quality, safety and sustainability.

It’s interesting to note, when consumers were asked who their allies are in the quest for healthy living and helpful advice, the top five sources were:

  1. Family
  2. Doctor
  3. Farmers – take note!
  4. Friends
  5. Fitness and health clubs

According to FMI’s report, when it comes to the most respected and trusted voices for guidance on healthy living, those sources include:

  • Registered dietitians
  • Personal healthcare providers
  • Wellness counselors
  • Scientific studies
  • Fitness professionals

Emergent guidance: this insight suggests the efficacy of consumer-generated content, investment in social communities and relevant content, and use of respected third parties to validate what food brands want consumers to know and believe.

Food Retail Opportunities

There will be more competitive shifts and changes for food retail in the year ahead. So how does this play out as retailers seek to re-invent themselves?

In Hartman Group’s “Food Shopping in America” Report, a consumer survey of retail channel preferences showed supermarkets scored well on assortment, products consumers want and preferred brands. But indexed lower than other channels of retail on a good place to browse and shopping enjoyment.

As center store continues to be dis-intermediated by e-commerce, competitive advantage is shifting to favor specialization and in-store experience. FMI’s report lands on two key areas of opportunity that point the way for food retails to enhance relevance and increase traction with shoppers.

The Healthy Living Coach…

Food retail has an important opportunity to answer the consumer’s desire for healthy lifestyle by assuming a stronger role in an area shoppers already think retailers can fill.

Consumers believe food retailers are a potential ally and guide on their journey to a healthier, higher quality life. The retailer can operate as coach through access to expert voices, better and healthier food solutions and providing in-store experiences or classes on healthier cooking and shopping techniques.

Nearly 50% of consumers, according to FMI’s report, say providing healthier food choices is a way to support ‘Eating Well’ which contributes to ‘Living Well.’ When asked what the components of Eating Well include, consumers saw this as an integration of healthy eating and enjoyment.

Specifically, retailers can offer:

  • Nutritious food and beverages
  • Higher quality foods
  • Portion control – eating in moderation
  • Foods with specific benefits (food as medicine)

But perhaps the most important business growth opportunity for 2019 lies in the resurgence of home cooking. According to Hartman Group survey data, 88% of consumers say they eat healthier at home than at restaurants. Home-prepared food carries with it a healthy halo. Knowing how important eating with family at home is to consumers, retailers can answer this call with greater investment in prepared food options from complete menus to meal kits and other prepped ingredients.

What’s important to note here is the enhanced demand for better quality food, unique meal experiences and culinary exploration. Thus retailers need to up there hot bar game from ribs and rotisserie chicken to more interesting, chef forward dishes.

In sum, it’s about activating wellness solutions from produce, to center store to foodservice. Putting adventure and discovery back into food shopping will go a long way to creating advantage and loyalty even as consumers move increasingly to online shopping for everything else.

We have another post coming on omni-channel strategies. Stay tuned…

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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.

 

 

 

 

 

 

 

Mining the Marketing Gap: Promises and Expectations Lost

June 11th, 2018 Posted by brand marketing, brand strategy, CMO, consumer behavior, Consumer insight, food experiences, Restaurant trends, shopper experience, Social media 0 comments on “Mining the Marketing Gap: Promises and Expectations Lost”

Actions and experience overtake words…

You see the ad on TV for the casual restaurant chain; beautiful food, luscious, mouth-watering dishes redolent in bright colorful hues with freshly-made steam stunts and sizzle sound effects designed to get that mouth watering. You might eat the screen.

We’re confident the chain brand minders see these displays of gastronomic splendor as adoring portraits of what they want consumers to believe. You can almost taste the flowing, cascading drawn butter. But then…there’s the actual experience. You can also see the disappointment train hurtling towards the taste buds at break-neck speed, when in reality the product itself can’t reasonably fulfill the promise envisioned in the marketing.

Over-cooked proteins running along side the previously freezer-burn state of ingredients comes through in chewy textures and dryness that slams head-on into the saucy, just-ripe, fresh product pictorial. Imagery can be artfully arranged on beautiful plates displayed in the advertising. If everyone could just eat the ad, please!

What’s the price of breaking a promise and expectation?

What is presented as hand crafted comes through as factory made, and in that bright shining moment the aura of disenchantment comes home to roost. Yes you can cynically declare, “sure but what did they expect, it’s a chain restaurant after all, not some high-end white tablecloth place.” Even in the silver service trade the same experiences of historic letdown can be had when chefy epicurean food doesn’t ring true and questions arise about who is really behind the kitchen stove.

Just beyond the restaurant service levels, dining room experience, wait times, order accuracy, cleanliness, friendliness and all-around happiness-inducing procedures, lurks the opportunity to either delight or dissatisfy.

Across the continuum of retail experiences from supermarkets to clothing retailers to department stores, boutiques and beyond, everyday there are moments available to wow and surprise or participate in an epic fail. In today’s digital culture, the reality, broad-daylight moments can be relayed to communities of friends or fans in mere seconds -replete with accompanying photography or video to verify the facts.

True experience is key. The validation of assertions in marketing is so incredibly important, we, at Emergent, have built an entire marketing model around trust creation. We call it Validation Marketing. The price of failure to build trust is just too great. Reputation is everything and reality is the truth serum administered daily by measuring the gap between promise, purpose and actual proof.

The decline of marketing effectiveness has often been laid off to the “interruptive” tactics of forcing people to gulp down sales messages. Now that consumers have control over media, the force-feeding is about gone. Persuasion sits on the garbage pile of old-line mass media ploys – a communications dog that just won’t hunt anymore as consumers click to avoid the onslaught.

However we have another aligned explanation: the wink-wink of imagined expectation vs. authenticity served early and often, has constructed a concrete chasm between brands and their users. You cannot underestimate the fallout, the insidious rust and corrosion that’s heaped on brand/consumer relationships when ‘actual results may vary’ stings the hardest. It happens all too often when what someone thought would occur inside the store or product package gives way to the “the little white lie” that was shaped with cinematic story in the marketing.

Transparency reigns supreme

There have been too many trips to disappointment junction. What we now have is a belief breach in the brand relationship. If the product or store experience doesn’t match the marketing is it wrong to go there in the first place? It might be.

Every brand, every business today lives in a glass house. What can be known will be known digitally, quickly and by ever-larger audiences. So the distance between anticipated outcome and actual experiences must be closed. The trophy in the battle for future growth will go to those marketers who understand the significance of this behavior principle. Sweating the details of how everything works to deliver on expectations is required. What you say, especially do and provide must all match up.

How does an organization assure that the truth is told rather than fiction? If the truth about the product is sub-optimal, fix the product – ditto store experience. By the way, the product and experience IS the marketing.

When transparency is embraced as a marketing principle, the move to ‘reveal all’ changes the paradigm of how plans, programs and communications are built. If you are amply proud of your product and store experience because the real encounter and formula is indeed terrific, then pulling the communications curtain open a bit wider becomes more comfortable, do-able.

  • Trust sits at the core of everything in marketing and in business. Having respect for the consumer’s welfare and intelligence should share equal stature in how strategies are created. Employing trusted sources and voices as part of the marketing mix are vital to helping validate what is promised.

This is the price of admission, now, to a brand relationship. It’s a 360-degree approach to marketing and planning that recognizes how all aspects of what a brand or store or restaurant does and how it performs must be factored into the trust equation.

What delivery on the promise looks like:

  • SweetGreen’s promise of devotion to fresh, real produce ingredients is true and lives in the product experience.
  • Starbuck’s assertion as a third-place of social experience is for the most part, a true thing (some recent behavioral missteps a note-able exception).
  • Apple’s promise of intuitive product experience is for the most part, true.
  • Amazon’s delivery of a friction-less e-commerce shopping environment bears truth daily.

For every true there’s many more that routinely blow the tire between what’s promoted and what happens. The organization’s total commitment to optimal quality and experience is required BEFORE communications are designed.

Communications inspired by transparent outreach and allowing consumers inside the tent, will win out over the portraiture that looks great on the surface, but is hiding something else underneath. The really great athletes in virtually every category of competitive sport achieve their fame and fortunes daily by working, sweating, training, trying and performing. They are driven to do so.

Marketing should fully embrace those same operating principles, energy and work ethic. No disguise needed.

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

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

 

 

 

 

 

 

 

 

AMAZON GO OPENS TO PUBLIC; RETAIL TRANSFORMATION BEGINS

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

Emergent announces retail transformation services

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

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

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

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

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

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

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

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

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

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

We’re here to help.

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

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

 

Brands: Mastering the Sea of White Rectangles

October 17th, 2017 Posted by brand marketing, Brand preference, brand strategy, branded content, consumer behavior, Consumer insight, Digital marketing, Healthy Living, shopper experience 0 comments on “Brands: Mastering the Sea of White Rectangles”

Harnessing the power of humanizing differentiation

When we first started working for Serta® mattress brand, our wonderful client arranged for us to tour the mattress factory. We saw firsthand the great care taken to arrange the inner combinations of coils and surrounding layers of material to create the right balance of comfort and support when sleeping. They were proud of the efforts made to study spine alignment, blood circulation and how pressure points impact the quality of sleep.

Naturally, they wanted to highlight that understanding, material expertise and tech in marketing communication.

For our part, we also invested heavily in studying the purchase experience and shopping environment: the sleep products store where mattresses met the people who will ultimately spend a third of their lives atop their selections.

We were struck by the commoditized conditions at retail; an environment we referred to as the “Sea of White Rectangles.” Brands and models all looked the same, were presented in similar fashion with similar claims regarding what existed below the fancier furniture-like case fabric. Equally, we learned that consumers loathed the experience of bed shopping, and in some cases described it in used-car dealer metaphors.

Together with our client, we fashioned a new roadmap based on what happens on the other side of improved sleep. The emotional benefits and real-world lift related to getting more out of a good night’s rest. The impact that improved sleep has on creativity, work productivity, personal relationships, mental attitude and general happiness. Yes, sleep quality and sleep deprivation hits you in ways you may not even realize.

We worked to cast this in real human terms – real people stories – and how better sleep also improved your day, your happiness and your life. It wasn’t the nighttime rest imagery so typical in the bedding business – it was the next day’s improved experience that truly mattered.

Rather than the coils or support-giving design or temperature-regulating materials, Serta’s brand differentiation was elevated through the tangible, human outcome when sleep quality is markedly improved.

Commoditization can command the business until disrupted

Sameness exists in so many product categories because we’ve come to a place where technologies and formulas are often very near parity. The real distance between one product and another in its category has been narrowed, slimmed down and parsed.

Pet foods are a great example of similar formulations, comparable language, packaging approaches, and claims around nutritional efficacy. The passion, love and relationship with pet parents and pets, and the desire to add value to the quality of their lives (mutually beneficial) is another matter entirely.

And others:

  • Car designs and features within their utility, performance or luxury classes.
  • Mobile phones and their screen tech, cameras and apps.
  • Foods and their labels, ingredients and nutrition.

In virtually every product category you find, the capabilities and technologies are within close proximity to one another. But still companies fall in love with the efforts they make to install quality at every level, to source ingredients with great care, to craft solutions that deliver on taste or user experience. Yes, all of this matters, however, when looking to mine true differentiation

Consideration must be given to humans, and their personal experiences with the product. It’s a vital part of the strategic discussion, often punted in favor of showcasing the latest tech wizardry. That’s great if you’re designing ads *for* the company’s engineers (but even they need a good night’s sleep). Each and every one of us is an emotional being who thinks with their heart first and mind second. As we’ve conveyed before: People are feeling creatures that think, not thinking creatures that feel.

Communication, brand, experience, shopping environment must be viewed through the lens of how people feel; and the changes that can occur in the quality of their lives when your brand gets the opportunity to be involved with them. It’s here where the entire brand proposition will be separated and elevated from everything else competing for share of mind, stomach or wallet.

Casper Casts a Different Story

Meanwhile back in the bedroom, sleep category disruptor Casper came along to reassess every aspect of bed marketing, including the retail sea of white rectangles retail paradigm, by-passing it entirely.

With an eye towards disrupting the current go-to-market model, Casper made changes in product design, e-commerce sales, extensive guarantees, and communication founded on lifestyle help over hype. Casper pushed community building and social conversation rather than the normal efforts to market “at” people.

Casper’s highly topical e-zine, VanWinkle, and investment in social channel engagement are examples of building relevance with their core customer base. They cultivated brand ambassadorship and harnessed incredibly powerful consumer reviews to influence purchase. Casper is humanizing the bed business, and in doing so, came out of left field to capture significant share.

At Emergent our approach to client businesses begins first with an effort to understand category conventions and behaviors. From there we work to enhance uniqueness and differentiation based on blending essential product truths with insight to consumer passions and interests.

Are you ready to take on the battle against sameness?

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.

 

 

 

 

 

 

 

 

 

 

 

 

Shop to eat or eat what you shop?

October 3rd, 2017 Posted by consumer behavior, Consumer insight, Digital marketing, food retail strategy, Food Trend, grocery e-commerce, retail brand relevance, shopper experience, Supermarket strategy 0 comments on “Shop to eat or eat what you shop?”

Here’s the runway for grocery e-commerce expansion

A more European-like view of food preferences and shopping is sweeping the retail landscape as consumers shop for meals rather than pantry stock-ups: more trips, more often with smaller baskets aimed at mealtime solutions. The implications of this behavior shift on retail business models and  e-commerce strategy is no less than transformational.

Online grocery’s convenience bona fides are already well positioned to capture increased share of stock-up shopping trips, focused primarily on shelf stable packaged foods and beverages.

However, new insight on consumer food shopping behavior raises a challenge and opportunity that if addressed successfully, could fuel exponential online growth. You need look no further than the decision around ‘what’s for dinner’ – which today is often resolved in a quick grocery store trip a mere few hours before sitting down to eat.

Perhaps most immediately pressing on the potential escalation of grocery e-commerce is the relationship between this shop-for-meal trend and fast order, delivery or click-and-collect fulfillment. Success here could leverage a significant pain point of escalating frustration embedded in the brick and mortar food shopping experience.

  • Important to note here, Emergent has studied e-commerce extensively and concluded that consumer trust remains a significant near-in barrier to business growth. Shopping online for fresh food requires consumer belief that e-commerce platforms can be depended upon to select, on the consumer’s behalf, the highest quality fresh perishable items like meat, fish and produce.
  • As this trust issue is resolved and consumer confidence takes hold, fresh and perishable sales in e-commerce will rapidly rise, and with it, the economic models of food retail will change forever.

With e-commerce’s historic advantage in online proficiency, industry watchers have noted: “Amazon’s capital and tech-fueled infrastructure is poised to rapidly expand same-day fill-in shopping of perishable food as trust in the e-commerce portal grows.” Hartman Group Executive, Q3 2017

 

Smaller baskets create grocery store shopping friction and e-commerce opportunity

According to IRI, 64 percent of grocery visits are now quick, focused, rapid-shopping trips for a limited basket (IRI, The Omnichannel, September 2016). Yes, we are witnessing in real time a major behavior change as the distance between buying and consuming collapses.

Traditional food retail was never designed with this kind of meal shopping in mind. Navigating a 60,000 square foot store for five to seven items can become annoying. The smaller the shopping basket, the more egregious and noticeable the time commitment is to travel the store footprint in search of a few items. Younger audiences especially are less tolerant of these time inefficiencies.

  • So what does it mean when pantry shopping gives way to just-in-time menu procurement? It puts in motion the conditions leading to a potential surge in online food shopping growth. Online can take the cart navigation discomfort out of the shopping experience.

There is however another consideration…

E-commerce must align with the consumer’s emotional connection to food

First, trust issues around fresh/perishable selection have to be resolved. If e-commerce is to play a substantive role in helping consumers with their dinner plans, more effort is required to recognize and leverage the real passion and care consumers have around fresh food – unlike any other product category offered online.

Virtually every food e-tailer is positioned in similar ways on convenience claims. Therein lies the next challenge: e-commerce constructed to answer transactional simplicity and convenience must not overlook the consumers’ emotion-rich interests around food.

  • It should be noted that meal kit companies do a much better job in the online environment delivering this kind of information and product backstory via content on ingredient sourcing, food experience and culinary adventure.

So for the most part, the online food environment remains a single instrument playing the song of products, prices and a virtual basket to fill. Unfulfilled as of yet, is the food e-commerce platform offering a complete orchestra and symphony of food story and guidance to home cooks hungering for their next meal adventure.

When e-commerce begins to push past the transactional and into the consumer’s relationship with food, magic could happen as the consumer comes to believe that online food shopping, and a differentiated online banner, offers much more than purchase simplicity.

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.

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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 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.

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