Posts tagged "Change management"

Enjoy Life prospers

Can emerging food brands prosper inside the big mother ship?

November 25th, 2019 Posted by brand marketing, change, CMO, Emerging brands, Food Trend, Growth, Healthy Living, Insight 0 comments on “Can emerging food brands prosper inside the big mother ship?”

Enjoy Life proves the case for unicorn in the herd

Enjoy Life Foods enjoys the enviable position of being intentionally unique and differentiated by virtue of the market it serves. Have you noticed the skyrocketing increases in the number of people with various forms of food allergy? My oldest daughter is one and many families these days have someone in their circle with a digestive rejection problem.

Of note, some experts believe the rapid ascent of allergen free foods is due to compromised immune systems, in part to blame from the cultural and technological shifts that help assure children will be exposed less and less to bacterial and viral hazards. It is contact with these microscopic threats that puts the immune system activity into higher gear. Use it or lose it?

Enjoy Life offers 86 SKUs of products created and designed to give allergy sufferers a shot at snack and sweets bliss with unconventional (entirely) clean recipe solutions. They are crafted with a staggeringly high intolerance for anything in the product creation process that could introduce an allergen somewhere along the path. Such is their franchise and commitment to becoming a trusted solution for people with food allergies.

Enjoy Life is an acquired brand of Mondelez, the spinoff of the Kraft Foods break-up that resulted in today’s Kraft Heinz packaged foods behemoth alongside the snack and sweets oriented and equally hefty Mondelez International operation. In either case we’re talking about big food.

Joel Warady, who leads the Enjoy Life team and has been on board there since its early days, is a bit of an iconoclast in the belly of the Mondolez whale, but it works and works well. Perhaps Enjoy Life offers a model for success to the innovation-challenged legacy packaged foods industry looking to stem the tide of fractional annual growth or share losses. Of late, many legacy CPGs are seeking the cachet of high quality, mission-oriented food brands by investing in or acquiring the fledgling company’s rapidly scaling share and market presence. The food world has turned upside down ever since the barriers to entry evaporated for independent food start-ups.

“Acquiring companies like Mondolez have learned, and sometimes the hard way, that it’s best to let these emerging businesses continue under their current management teams and without a lot of interference,” said Warady. “The challenge is figuring out how and where to help, usually with R&D and distribution support or providing ingredient sourcing efficiencies and pipeline scale.”

Warady believes Enjoy Life has been a success story because key strategic decisions are largely left in their own hands. “We’ve had some embedded executives from Mondolez along the way, but for the most part we operate as we did before the acquisition only with more resources at our disposal,” he said.

Legacy food companies like Kraft and Mondolez have greater challenges on the product innovation front due to their size, and cultural habits that work to wring out risk. It’s a point of view that has caused them to routinely favor line extensions over disruptive, unproven and yet demonstrably higher quality food ideas that are popping up everywhere.

Now, the magic and heat index in food innovation is coming mainly from entrepreneurs with a vision for solving a neglected corner of the market like Enjoy Life. Other successful ideas offer a preparation or ingredient twist that inspires a new category such as Beyond Meat that imitate the texture, flavor and mouthfeel of genuine animal-based meat. These plant-based proteins are more widely targeted to those whose values supports the overall mission (whether clean eating, regional sourcing, minimized carbon footprint, etc.) – not just aimed narrowly at serving Vegan interests.

Enjoy Life was designed from day one to be a difference maker in the lives of people suffering from allergies. It helps when you solve a real problem that has existed for some time but neglected as a niche business and ignored by companies that at one time believed if the volume isn’t a billion dollars within 15 months of launch, it isn’t worth pursuing.

Ingredients for Success

Warady offers some guidance for founders and acquirers alike:

  1. For founders, it’s important to know that food safety and sourcing standards – a pillar of strength for large CPG companies – is often lacking with start-ups and can be deal killers once a strategic investor starts to poke around. Thus for founders, it’s important to have consultants scour every corner of the supply chain ahead of a strategic conversation to help clarify areas of opportunity and deal points.

 

  1. For acquirers, it’s vital to recognize the secret sauce for emerging brands is often held in their story that combines mission and values often with a more artisanal product solution that completely redefines what quality means. Best to let them operate independently to help support and retain the trust they’ve earned.

 

  1. Because the path to market is completely different, emerging businesses can be extraordinary places to test new ideas and limited-edition products, while learning best practices. The old recipe of big TV advertising budgets mixed with quarterly price promotions isn’t resonating like it used to, and is antithetical to the more conversational, user experience-oriented world of emerging food and beverage.

Importantly, emerging food brands like Enjoy Life come to market embedded with deeper meaning and a higher purpose that transcends the more transactional genre of volume, velocity and profit.

Not that growth and profit aren’t equally important to the success of new food businesses, but these soul-driven companies recognize the path to riches is paved in reciprocity and relevance to the consumer’s interest in shared values.

Bottom line: the recipe for success inside big food is to allow the acquired businesses to retain the very lifeblood that makes them successful. Their sheer disruptiveness and uniqueness must be honored and fueled while maintaining the often higher quality sourcing commitments on which their recipes are based.

It is the user experience that sits at the foundation of early success for emerging brands – before there’s much of anything to talk about in brand equity. That said, smaller resource- constrained businesses will benefit greatly from a benevolent investor or owner that fills strategic gaps and helps nurture the business, providing expertise or capital where it can make a difference between a base hit and a grand slam home run.

Joel Warady and the Enjoy Life team sit as a worthy example of how remarkable innovation can prosper inside a much larger organization, continuing to dance to the beat of its own drum while offering a roadmap to the future of the food business.

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

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

The New 5 P’s of CPG Marketing

October 30th, 2019 Posted by Agency Services, brand marketing, change, CMO, Consumer insight, Growth, Higher Purpose, Marketing Strategy, storytelling, Transformation 0 comments on “The New 5 P’s of CPG Marketing”

Planning shifts to a set of consumer-savvy principles

During the old command, control and persuasion era of brand building, the common ground for planning coalesced around the legacy 5 P’s of marketing: product, price, promotion, place and people. Brands took charge of their destiny and managed their future progress mostly with increased advertising spending.

Now, things have dramatically changed.  Technology has:

  • Shifted control of brand engagement to consumers
  • Massively disrupted and reshaped food culture and preferences
  • Knocked down the barriers to entry for new food and beverage ideas
  • Enabled these ideas to rapidly find a market and scale
  • Allowed the small and artisanal to gain traction, and redefine what quality expectation is
  • Empowered people to share experiences and influence the trajectory of business
  • Changed the face of brand communication, now about relevance and deeper meaning
  • Exposed the inauthentic and triggered the move to greater transparency
  • Informed the growth of online communities and the role of credible influence to build trust

Perhaps the most salient example of transformation yet is the landmark 2017 Deloitte and FMI study revealing the disruption of the old taste, price and convenience purchase behavior yardsticks for food and beverage products. These legacy drivers are now eclipsed by a new set of criteria including health and wellness, transparency, visibility to the supply chain and food safety.

The primary conclusion from all of this – is the rise of consumer-centric planning based on recognition that future growth is shaped by a brand’s ability to create and hold alignment with the needs, interests, desires and concerns of their core users. For the most part, the original 5 P’s were inwardly focused on the company’s products and self-directed decisions. Now the move to consumer control requires a more enlightened view of strategic plans founded on up-close customer insight.

Here are the new 5 P’s of marketing planning:

Engagement has moved beyond the product to include other important areas of value and meaning to people.

  1. Purpose

Purchases are now symbolic of what consumers want the world to believe they think is important. Thus shared values have surfaced as a core tenet in brand preference and the consumer’s willingness to engage rather than avoid marketing outreach. Purpose isn’t philanthropy. Consumers want to attach themselves to brands that carry deeper meaning and intentionally build their business around a higher purpose that rises above transactions – focused on authentically improving the consumer’s life and the world around us.

  1. Pride

People want to be inspired by use of the brand. Purchases are not secured through analytical arguments and fact-based selling of yore. Today’ consumers arrive at their decisions from the heart not the head, based on a feeling they have in the presence of the brand. Inspiration, aspiration, desire, impact and purpose form the recipe for baking the emotional attachment people have with the brands that matter to them.

  1. Partnership

If brands now exist to improve the lives of their users and become an enabler of their aspirations, then this less self-centered approach automatically requires a measure of authentic partnership between the players. How do genuine partners operate? Reciprocity today is an important component in how brands and consumers interact with each other. As a true lifestyle partner, brands can operate as coaches and guides on the path to a healthier, happier life that people aspire to lead.

  1. Protection

Brand relationships must be built on a foundation of belief and trust. These qualities now are earned through experience and verified by sources and voices people trust. Consumers want to feel secure in the knowledge that favored brands will always have their best interests and safety at heart, and will not put them at risk either through degradations of standards or processes that put the company’s self-interest above their own.

  1. Personalization

We are awash in data about the preferences and interests of users. Brands know more about consumer preference than ever before, ushering in a new era of customization. Product offers can be tailored to the consumer’s specific needs and interests. How this condition manifests will be a key component in strategic planning in the years ahead. People will come to expect that brands understand who they are, what they care about and will deliver products that meet those needs.

Bernadette Jiwa, one of our most literate and erudite marketing minds, has an uncanny ability to distill transformative change into its most fundamental elements. Here’s how she recently expressed the relationship between brands and consumers:

“Most marketing makes the company the hero.

Most companies go to great lengths to prove that their product is better.

Most marketers’ main aim is to close the sale.

The most effective marketing makes the customer the hero.

Beloved brands show people who they can become in the presence of their product. 

The best marketers give people something to believe in, not just something to buy.”

Increasingly brand relationships are taking on the characteristics of human friendships where honesty, openness and trust are paramount. The great news in all of this is the potential reward of curating tribes of believers who “join” the brand not as buyers but as fans and followers.

Most exciting is the depth and breadth of “voice” brands can earn by moving from source of product to resource and partner. We’re no longer dependent on the artifice of paid cinematic style advertainment to encounter, inform and converse with our best customers. Instead, we now have the freedom to engage with them genuinely…authentically…you know, like people.

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

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

 

 

 

 

 

 

 

Emergent Answers the Healthy Living Chasm

October 30th, 2017 Posted by brand marketing, brand strategy, consumer behavior, Consumer insight, Emergent Column, Food Trend, Growth 0 comments on “Emergent Answers the Healthy Living Chasm”

Bridging the divide during historic change in food and beverage…

When we launched Emergent, it was based on an overwhelming body of research and marketplace evidence that food and beverage brands are in a state of transformation and thus, in need of new, fresh, refined and more relevant business-building solutions.

Of all the issues creating change, from the demand for transparency and clean labels and fresh foods — healthier lifestyle is the dominant driver that is impacting the consumer’s desire for improvement in the food and beverages they prefer.

Cultural shift makes healthier all-inclusive

Historically, the food industry’s approach to ‘healthier’ was an addition-by-subtraction model based on removing so-called bad ingredients like sugar, calories, sodium and fat; AKA the ‘diet foods’ business. For consumers, though, this often meant sacrificing taste and eating satisfaction. Which they did. For years. This was bound to be problematic because it existed in conflict with the embedded human desire for great taste and indulgent food experiences. Guilt only goes so far.

However, pervasive changes in global food culture caused the concept of healthier to shift. The good-for-you proposition began to look more like addition by addition. Healthy was restaged to focus on real, fresh, authentic, higher quality, less processed foods – more so than food science wizardry. Healthy became inclusive, lifestyle oriented and user friendly.

  • The root cause of change: consumers connected the dots between the quality of what they put in their bodies, with how that fuels what they’re able to do, and hence, their ultimate happiness and wellness.

As consumers became more engaged in higher quality food choices, it resulted in the widespread premiumization of many food and beverage categories. At the same time, media consumption habits shifted to social and digital channels controlled by consumers rather than brands.

We believe an agency devoted to mining this insight and bringing fresh thinking to the table is needed to offer meaningful guidance in the midst of this sea change.

New implications to the food system are reshuffling the industry:

  • Large cap CPG brands have experienced share and volume declines in core legacy categories. Consumers are moving away from anything perceived as highly processed or made from ingredients they don’t understand.
  • New emerging brands built on higher quality, fresh and real food ingredient solutions have grabbed the spotlight to reinvent everything from frozen meals to grain-based snacks.
  • Food retail shopping behaviors have shown a significant shift to the perimeter of the store as consumers increasingly look for fresh, real food products over center store packaged options. They’re also increasingly shopping more frequently for meal solutions over pantry stock-ups.
  • Meal kit solutions have taken share in food, by virtue of offering menu solutions derived from high quality fresh ingredients, married to easy preparation steps. Convenience meets culinary inspiration and taste satisfaction.

Time for transformation

We know that new, emerging, purposeful brands are gaining traction and attention in kitchens across America. So we visibly witness the dawn of a true food renaissance taking place around us.

  1. People are coming back to the kitchen, looking to exercise their creativity and control over preparations, freshness and quality of ingredients.
  2. We’ve entered a period where transparency, health and wellness, safety and authenticity drive purchases more so than the legacy stalwarts of price and convenience.
  3. We know the founder’s backstory and commitment to a real mission beyond the product itself is a critical component of the new brand marketing playbook.

We‘ve operationalized our understanding of what these changes mean and how to create traction in a fast-changing business environment.

Emergent’s value proposition

We’ve developed a proprietary planning model that reflects this understanding; one that demands a new approach to how brand relationships with consumers are formed, and thus, how effective brand communications should be created.

  • We are experts in this space; our services are aligned with answering these challenges.
  • We help legacy brands challenge conventional strategies and re-stage to optimize today’s conditions and help new brands accelerate their growth. We understand the consumer and how they think, how they behave and how they consume information.

If your marketing communications plans look exactly the same as last year’s, the time may be right for fresh thinking. We exist to help brands and businesses navigate and grow in the midst of transformative changes in purchase behavior. We can help you take the leap to increased relevance and alignment with this new marketing paradigm.

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.

 

IT’S THE GARAGE EXPERIENCE IN YOUR HEAD

May 8th, 2014 Posted by Growth, Insight, Navigation, Transformation, Uncategorized 0 comments on “IT’S THE GARAGE EXPERIENCE IN YOUR HEAD”
Vintage Garage Door Covered With Rust And Chipped Paint

Big ideas spring from living the “garage” experience…

Secrets to innovation lie in aspiration combined with consumer empathy!

By Bob Wheatley

You’ve heard the stories: Google, Apple, H-P and other silicon icons and business category disruptors all started in a garage. So will the NEXT great leap — perhaps the ability to teleport yourself anywhere instantly, solve America’s obesity crisis or build engines that run on oxygen — be birthed and incubated in a garage? That’s apparently where innovation and the next generation’s leading transformational brainstorm and company will be invented, right?

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YOUR BRAND STORY MAKES OR BREAKS THE FUTURE – AND IT’S MORE THAN A STORY

April 24th, 2014 Posted by brand marketing, Healthy Living, Insight, Navigation 0 comments on “YOUR BRAND STORY MAKES OR BREAKS THE FUTURE – AND IT’S MORE THAN A STORY”
boat sails through the graveyard of sunken boats

Navigating the sea change in consumer preferences

 

Company behavior builds or detracts from the story you need to tell

By Bob Wheatley

Today we hear again at Food Navigator that legacy soft drink businesses are in decline. A cultural shift has already occurred and it is changing how the game is played for growth. Either you are authentically “in league” with the consumer’s passion for healthy living and their need for control in their lives around it, or you risk outright rejection despite whatever equity you believe has been retained and accumulated over time.

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A Conversation about Change: From Traditional to Healthful

June 7th, 2013 Posted by Emergent Column 0 comments on “A Conversation about Change: From Traditional to Healthful”

Peekinsidelogo 

Welcome to a new feature at the What’s Good For You, America blog – a recurring column that will give you an inside look at the key players, opinions, views and news of what’s going on at Emergent. A Peek in the Conference Room begins with a story about change — specifically the challenges of making a meaningful transformation, and thoughts from two of Emergent’s Healthy Living Advisors team.

Frankly, there are a million reasons not to.  “The System’s too large.  Our tastes are too iconic. We’ll never get consensus internally.  And even if we did, the business pressures just won’t allow this kind of transition.  Or investment.  Or training.  Or headcount…”

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