Posts in Supermarket strategy

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

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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.

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

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.

 

 

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

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

Retail kit growth could impact restaurant business…

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

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

Millennial preference for home cooked meals

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

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

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

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

Boxed food adventures

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

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

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

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

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

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

Food-enthusiastic supermarket?

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

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

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

What’s next for foodservice?

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

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

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

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

This may be the most exciting time ever to be in the food business!

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

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

 

 

 

 

 

AMAZON GO OPENS TO PUBLIC; RETAIL TRANSFORMATION BEGINS

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

Emergent announces retail transformation services

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

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

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

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

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

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

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

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

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

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

We’re here to help.

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

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

 

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.

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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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