Posts tagged "transformation"

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.

 

 

 

 

 

 

 

Importance of Brand Building to the Future of Emerging Food and Beverage Businesses

October 24th, 2019 Posted by brand marketing, brand strategy, change, CMO, consumer behavior, Consumer insight, Emerging brands, Emotional relevance, Higher Purpose 0 comments on “Importance of Brand Building to the Future of Emerging Food and Beverage Businesses”

Early priority trap – singular devotion to sales

In our interactions with emerging food and beverage brands we take note of a consistent condition between virtually all nascent businesses: a single-minded focus on sales. Certainly it makes sense especially in the earlier stages of development that founders/owners are preoccupied with securing the next account and building the pipeline.

It’s not unusual for us to see lean teams with limited bandwidths deployed in a recurring cycle of production to distribution to account selling activity. Marketing in these cases is often light on strategy – and reduced to a few tactics in the form of social media posts, periodic press releases and an occasional third-party influencer/blogger outreach.

Today we make the case for starting early to invest in brand building. In the end entrepreneurs may believe they are on earth to sell their better mousetrap, and more of it, until an exit strategy is achieved. In fact, what should also be going on here is purposeful development of the one asset that holds the valuation multiples and burnishes the customer relationship, your brand.

Why This is Important Now

People are emotional creatures who (backed by reams of scientific evidence on behavior) do NOT make fact based, rational decisions on the brands they prefer and that matter to them. The story you should be telling must be specifically packaged and presented to begin sewing the emotional fabric and connectivity to your brand and its deeper meaning. Brand purpose is not a nice to have, it’s a must have.

Simply stated: you are not selling a product but rather a feeling people have in the presence of your product. Here we’ll lay out the pathway to greater success and scale based on a more enlightened view of what’s required to make the leap to sound marketing.

Primacy of Product Experience

First, we should acknowledge that in the early stages the magic in generating trial is the very experience people have with your product. This is where the higher quality ingredients, the artisanal recipes, the more authentic production of a better tasting food or beverage gets noticed. Your brand, a virtual unknown, secures traction because it delivers on its promise of a higher quality, better for you, great taste experience.

More than at any other time in the history of food and beverage, the consumer is primed for the innovative, the new, the better-quality version of many iconic categories from chips and crackers to ice cream. Bone broth instead of soup stock. Heart healthy snack bars. Artisan peanut butter. Upscale and functional teas. Heirloom produce. Small batch you name it… the list is long and getting longer of new players summoning the efficacy of healthier ingredients and better preparations on a clean label.

Yet while the product is indeed the marketing at the front door for emerging brands, the attention to strategic brand building shouldn’t be viewed as a ‘we’ll get to it someday’ part of the operating plan. Again, for emphasis here, brand cultivation is an investment in establishing relevance and connecting with consumers who are most likely to try your brand, rather than a result of how many press releases are pushed out the door.

The Rule of Sameness

In virtually every edition of the Food Navigator newsletter you’ll find new products in launch phase. The sheer ubiquity and volume of new ideas making their way to grocery shelves or direct-to-consumer platforms is astounding. Higher quality retail outlets like Whole Foods are shopped by ‘what’s new’ hunter gatherers on the prowl for great ideas, ready to plunk down the higher price for a shot at a better product experience – at least once. I know, I’m one of them.

But the go-to-market recipe employed by more than a few reinforces a condition that exists in far too many product categories – the Rule of Sameness. Emerging brands often observe the conventions in the category they do business in and, intentionally or not, replicate behaviors that are common to the business segment. Some great decisions are made in innovative packaging but for the most part players tend to look similar on shelf. Tactics are similar. Pricing is similar. Color schemes and messaging are similar. When RX Bar decided to put “No Bull___t” on the front of their bar package, that may have done more for advancement of the business than anything else. Not that expletive is a precursor to greatness. It was just unexpected (see disruption below) and an outlier move.

Perhaps the best category on earth to observe this phenomenon of sameness would be pet food, where it runs rampant. So much so that you can interchange messaging between many brands and it would still fit. Protein percentage is now the reference standard of pet food quality.

Disruption is a Requirement

The word disruption sounds a little scary, but the principle applies here. In essence it means to zig when everyone else zags. Uniqueness and differentiation are vital components of a strong strategy and are particularly meaningful when the marketing budget looks eerily similar to your take home pay rather than something approximating the gross national product of Belize.

When every dollar invested needs to work like ten, the requirements of sound strategy comes to the front quickly. The story you tell, how it’s told, to whom, how it’s packaged and presented all matter in attempting to engage an emotional creature. Emotive language?

More often than not emerging brands lean too far into a self-reverential form of messaging that conveys ‘it’s all about me, not you’ when in fact it is all about them (consumers), all the time. How does your brand become a guide, coach and enabler of the lifestyle interests and concerns of your core user?

It is when we bathe ourselves in the customer’s lifestyle needs and aspirations that we can find the path to relevance, connection and also engagement on a modest budget. You have an uncommon product so don’t be common.

Standing out is a prerequisite because things tend to run together at retail, especially at the shelf where snap judgments are made daily. Words matter. Context is important. Emotion is key. Relevance is the bottom line that leads to success.

How do you do that? That’s why Emergent exists.

Absence of a Fully Baked Mission

We have ample evidence that consumers care about sustainable farming, about transparency, about ingredient integrity, contributing to the greater good and offering something consumers can believe in beyond the transaction.

Yet even in the midst of popular culture’s insistence that most new food brands come to the table with an embedded mission, more often than not, we find it isn’t fully baked, and in some cases tacked on like a ‘new and improved’ package violator. Successful brands today come to market with a soul. This may explain why it’s increasingly difficult for legacy brands to pivot because finding a soul is hard to do.

If the approach to building business is purely transactional, then even the messaging around a belief or mission rings hollow because consumers are marvelously adept at seeing and separating assertions from reality.

A higher purpose has to inform everything the company does from sourcing to production and how you got to market. Actions speak louder than words and offering the consumer something to believe in, matched by authentic behavior is the road to trust. Trust by the way sits at the foundation of every successful business now — and is increasingly hard to come by given the barrage of misdeeds, misrepresentations, selfishness and fractures of truth people see almost everyday.

This is why we’ve designed a specific program to help bring greater texture and definition to what higher purpose is and how it should show up in what the brand is about.

Your Brand and Emotional Connectivity

Belief, mission, purpose, essential truths and lifestyle relevance all combine as the alchemy for brand building in an age when the size of your ad budget isn’t linked to the depth of your brand franchise.

That said, it requires attention and intention to put brand building strategies into the mix early. The result is better traction, improved engagement and a quicker ascent with a story that resonates.

Convinced? We would be happy to share more of these insights, just drop me a line.

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 Impact of Higher Quality Experiences on the Future of Food

September 24th, 2019 Posted by brand marketing, Brand preference, brand strategy, branded content, consumer behavior, Consumer insight, Culinary inspiration, Culinary lifestyle, Emerging brands, Emotional relevance, food experiences, food retail strategy, Food service, Healthy lifestyle, shopper behavior 0 comments on “The Impact of Higher Quality Experiences on the Future of Food”

Once you’ve tasted an heirloom tomato you can’t go back…

For most of my adult life I have experienced a love/not love relationship with fresh tomato. The routine, ubiquitous beefsteak variety a frequent guest star that decorates the roof of a hamburger with some color. The pink flesh offers a hard, mealy somewhat bland flavor. In a salad the standard tomato as hero can be even more pronounced in its meh-ness. We hear it travels well through distribution channels and offers some shelf life. Yay.

Along comes the heirloom tomato with its erratic colors, crags, lumps and fissures to completely upend everything you think you understand about a tomato, punching your taste buds with luxurious flavor, acidity and tenderness that elevates anything it swims with. More expensive to be sure and worth every penny. Once you know this you can’t retreat to the beefsteak.

  • So it is with the continued culinary-ization of America: as higher quality food experiences forever elevate the palate and expectation of nearly everyone who eats, the baseline standard of what people want is changing with it.

Thus why strategic planning needs to address this development because as the old but very real saying goes, “times are changing and if you don’t change with them, you’re in trouble.”

What happens when the consumer is at the center of strategic planning?

If it is vital for the collective futures of food retail and food CPG companies to put the consumer at the epicenter of planning and work backwards from there, then we’re going to pay attention to cultural and behavioral shifts. The goal to sync strategies and capitalize on those insights. It is definitely not business as usual these days because the pace of change has accelerated so significantly in the last five years.

Seven observations on the changes now upon us.

The quality bar keeps rising. The impact of chefs-as-media-heroes, cooking shows, elevated corner bar food, transformation of legacy food categories with reimagined higher quality versions, and the advancement of culinary experiences at restaurants – all blend together in a perfect recipe for moving taste and quality expectations upward.

  1. Once you’ve experienced the added value of a pan reduction sauce to transform a flavor- challenged piece of chicken, you want the sauce every time.
  2. Home delivered meal kits operate as boxed culinary academies, teaching consumers about roasting techniques for vegetables, layering flavors and saucing.
  3. Higher quality ingredients and preparations now reflect the new intersection of indulgent taste and healthier. Healthy now redefined not as calorie math but the use of better quality fresh, real food ingredients, less processed and with a clean label as evidence of same.
  4. Weekends are now calendared opportunities for scratch home-cooking exploration, experiments and food adventure. Which grocery stores observe this phenomenon and move to inspire ideas, ingredient solutions, menus and culinary guidance? …More meatloaf?
  5. Maybe we’re still selling boxes, cans and bags off shelves at velocity and so there’s no time to match merchandising to the elevation of food experiences in America? Can you afford not to when disintermediating options are emerging all over the food business landscape?
  6. Restaurants are trial generators for new global flavors, cuisine exploration and realization of unique cooking techniques. Outsourced meals aren’t just about convenience on a busy night, it’s also part of the food culture milieu that’s stoking the fire of culinary excitement.
  7. Where’s the Chef de Cuisine now? He or she is a home chef operating in the kitchen looking to create, innovate and experiment with standard menus and dishes now getting an elevated makeover with layered flavors, sauces and artisanal quality ingredients.

The headline: could it be that the American home kitchen is not that far behind the restaurant kitchen, save a few thousand BTUs from the stove burner, as a place to produce distinctive flavor experiences? The answer to this query is yes. How are retailers and CPG innovators working to recognize and service this consumer? Small niche you say!? Not so fast…

In a recent report from the Hartman Group we find evidence in Compass data:

  • 39% of restaurant sourced eating occasions are efforts to lean in on the culinary skill and experience going on in the professional kitchen. Remember the quality of restaurant food keeps going up, and while doing so challenges some chain foodservice operators who are trapped in cost structures and business models that make it difficult to profitably move up.
  • 29% of at home eating occasions use cooking sauces, flavor aids, Deli prepared items, alongside higher quality produce, meat and seafood intended to replicate the restaurant experience at home.

Food culture changes are an undeniable juggernaut impacting where the ball is moving and challenging everyone to determine if they’re keeping pace with it or languishing behind.

Emergent’s guidance:

  1. Consumers want the unique, higher quality flavor experiences they find at restaurants, repurposed for them in food retail available products. Hence the emerging brand phenomena now roiling legacy CPG market shares. Consumers yearn for the surprise and delight of more innovative packaged and prepared foods.
  2. On the other side, food retail is ideally situated to sponsor artisanal exploration in cheese, baked goods, alternate proteins and cooking ingredients. Yet many find it difficult to get beyond the traditional infrastructure to position themselves in the culinary chair alongside shoppers who want more relevance and food experience in their shopping trip…and their shopping cart.

While so much preoccupation now exists with installing e-commerce platforms and digitizing the management and flow of inventory, we should not lose sight of what the consumer longs for and how we can enhance food relevance and adventure for them.

Your products and store could be a culinary Field of Dreams!

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.

GroceryShop Returns

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

Perhaps the most important convention in the food industry

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

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

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

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

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

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

 The Future of the Food Business

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

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

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

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

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

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

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

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

 

 

 

 

 

 

Verification and validation may be the strongest marketing strategies yet

March 6th, 2019 Posted by brand marketing, Brand preference, brand strategy, Emotional relevance, Higher Purpose, Insight, Transformation, Transparency, Uncategorized, Validation 0 comments on “Verification and validation may be the strongest marketing strategies yet”

Transparency advances to gold standard for successful brand building

The value proposition of verified truth and honesty is rapidly turning into the foundation of strong marketing strategy in an era where consumers, starved of trust and belief, impose change on how brand relationships are built.

We’ve lost the signals of credibility.

Some time ago we reported on the impact of digital conditions in the marketplace and instantaneous access to anything you want to know. This manifests as ‘anything that can be known will be known’ – hence every company now resides in a glass house. This is an outcome of pervasive social and digital communication and dramatically increased scrutiny of how brands and businesses operate. Daily we are confronted with outed fraudulent practices, misinformation and less than genuine product representations, mislabeling, omissions, recalls, investigations, misrepresentations of fact, even indictments — all while messaging perceived as self-reverential brand apple-polishing and brimming with marketing hyperbole falls increasingly on deaf ears.

Toss into this milieu, everyone with a device is now a content creator…and not all content creators (or their motives) are created equally. Today’s digital platforms foster an environment where opinions look like news to our always scanning eye. And those who opine may not be professionally trained, held to or bound by time-honored journalistic practices which have protected the word-consuming public. John Kass, columnist at the Chicago Tribune recently lamented the rush-to-support style of reporting in the Jussie Smollett debacle as evidence of how journalism standards remain vital. He urged reporters to revisit the old but wise axiom of “if your mother loves you, check it out.”

Brand trust heads south.

An outcome of fractures in belief and trust is a shift away from marketing’s traditional tactic of attempted ‘persuasion.’ In this environment, when assertion-based claims are deployed it can breed further contempt. People aren’t buying any of it.

The unintended consequence of always on 24/7 availability of everything about everyone is the rapid spread of information chronicling corporate misfires. The steady drumbeat of ‘caught in the act’ misdeeds subtracts from the consumer’s willingness to trust any voice driven by a profit motive.

  1. In a recent global research study of some 350,000 consumers HAVAS advertising found that consumers would not shed a tear if 77% of the world’s brands were to disappear. So much for the millions invested in building brand equity. If the brand becomes a less relevant commodity in the consumer’s eyes, there’s no deeper meaning or relationship there to be had.

 

  1. Further 58% of advertising and promotion for the world’s 1,800 leading brands is seen as irrelevant. If the communication isn’t constructed around what’s important to the consumer, and is more about the brand’s self-reverential promotion, the disconnect is already embedded in the communications strategy.

 

  1. Of note, brands that are considered truly meaningful to people soared over other businesses on overall impression, purchase intent, advocacy and justification for premium pricing. Meaning, values and purpose are fundamental to earning permission for a relationship. Does a brand have a soul? Apparently one is needed. Those without risk dying on the shelf.

The study concludes: usefulness and delivering on what you say you are may be more important than anything else. What does that tell you? Demonstratingcredibility and taking actions to earn trust are prerequisites to engagement. Transparency is an important path to proven authenticity and belief.

  • The value proposition for truth and honesty goes up daily in proportion to the growing weariness over evidence that some brands operate selfishly at best and dishonestly at worst. What consumers want are brands that listen; that make a priority of working overtime to be relevant and engaged in their lifestyle aspirations. Consumers are resonating to brands that have a soul, stand for something greater than themselves, and see the value of integrity standards and faithfulness to more human values.

There’s equity and opportunity in operating openly. What does the alchemy of advantage look like when the formerly powerful rules of brand command and control that once governed how to go to market no longer apply?

Credible proof in the form of verified and validated claims

Several years ago we were helping a client (Schuman Cheese) in the cheese industry to mitigate rampant fraud, adulteration and mislabeling in their category. A significant percentage of the Italian cheese business in the U.S. was adulterated with lesser ingredients to protect profit margins. To help solve the challenge, we developed and launched the first trust mark in the cheese industry. The True Cheese seal we created would appear on product packaging to signal the product inside meets or exceeds the standard of identify for the type of cheese, and that the ingredient label is indeed truthful.

Outside testing of products bearing the seal would be done randomly and unannounced by sampling retail products from store shelves – the same products consumers buy. Tests performed by a respected outside third-party laboratory confirmed adherence to the code of Federal regulation and findings were published.

When we launched it was a big media story – about fake Parmesan cheese – that went viral in 72 hours and got sufficient traction in popular culture to prompt the Late Show with Stephen Colbert to feature an entire segment on the adulterated Parmesan cheese development.

Important to note that retailers resonated to the verified trust approach and believed they were better off to stock the real thing than take chances with something that might not be.

What’s the story you’re telling?

Consumers want the truth but understandably are reticent to accept company assertions at face value. Hence the incredible surge of interest in Transparency.

Being transparent means you allow consumers to observe for themselves what goes on behind the corporate curtain in product creation and ingredient sourcing.

Trust marks and seals are shorthand for validation. Standards and testing organizations like NSF.org are gaining traction as companies in food, beverage and lifestyle categories increasingly look for ways to credibly prove the quality story embedded in their products.

Recently Organic Valley and Maple Hill jointly announced the “Certified Grass-Fed Organic Livestock Program” to address misleading labeling in the grass-fed dairy products marketplace. The program, unlike others in the organic category, requires a full supply chain verification before qualifying to use the mark.

The strategic linkage in these validation programs and others we predict will come, is recognition that trust is vital to consumers and that assertions aren’t good enough to secure belief. Transparency’s call for openness and clarity, for access and demonstration to be brought to life through various techniques aimed at letting consumers, experts and media in the tent to see for themselves what brands hope they will recognize as truth.

Blockchain to digitize honesty

Perhaps the most significant development to come in the quest for verifiable trust is the advancement of digital solutions that are essentially tamperproof. Blockchain’s great promise is digital ledgers and contracts supported by the deployment of sensors and scanners — and backed by algorithms that monitor and validate every step from the soil to the store. Truth tech that will prove the tomato’s organic and heirloom heritage, its cultivation and harvest, its safe handling and freshness from the ground to store shelf.

Imagine the marketing opportunity that awaits for digitally verified trust… Emergent is following the development of Blockchain technology and is studying its evolution as we seek to stay ahead of Transparency strategies for our clients.

Where are you on the curve to provide these proof points in your marketing strategy?

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.

 

 

 

Tipping the Scale on Emerging Brand Growth

July 12th, 2018 Posted by Agency Services, brand marketing, brand strategy, CMO, Consumer insight, Content Marketing, Emerging brands, food retail strategy, Food Trend, Navigation, Transformation 0 comments on “Tipping the Scale on Emerging Brand Growth”

Writing the new rules of successful marketing

Recently Emergent became an active Mentor partner with the Food Marketing Institute’s Emerge platform. FMI, under the leadership of Julie Pryor and Margaret Core, has created Emerge to help nurture the increasingly important population of up and coming food and beverage brands. These growing businesses are gaining attention of the food buying public and occupy an ever more significant proportion of in-store real estate at food retail.

This new world of emerging brands is evidence of a dramatic shift in consumer preferences for food choices with a creation story founded in higher quality, more artisanal and sustainable attributes. These businesses are often married to a higher purpose that transcends commerce; a purpose aimed at improving the food supply, sustainable farming, battling hunger or some other altruistic commitment that imbues the business with greater meaning.

For our part, we enter the FMI Emerge relationship as Mentors – a resource that new and emerging brands most likely would not have access to until later in their development. The goal is to help scale these businesses more rapidly while avoiding some of the mistakes that can occur early in the fundamentals around marketing, packaging, distribution and channel decisions or innovation.

Reengineering of the food and beverage business

The emerging brand growth engine has attracted the interest of private equity investment and large cap CPG looking to participate in this unique, culturally relevant space. Additionally, retailers interested in leveraging this wave must adopt a new set of best practices to help support these new brands that don’t come to the table with deep-pocket promotion and brand-building budgets.

As the pendulum swings towards marketplace reward for the more entrepreneurial food brand business – where everything about their origins and path follows the beat of a different drummer than legacy CPG food brands – NEW marketing rules must also be considered and executed with commitment to maintain the specialness of these businesses.

What remains true for all participants is an interest in scale. But not scale at any cost. Great care must be exercised in building these brands to make successful expansion a reality in a shorter time span. Wrong moves can violate the very principles that sit underneath why these emerging products got traction in the first place.

Application of old-school marketing technique and thinking can interrupt and disrupt the very important reasons why consumers prefer these up and comers. It’s critical that entrepreneurs maintain the artisanal characteristics of their products which is the very reason consumers are attracted to them in their ongoing treasure hunt for new and more interesting, real food experiences.

What’s changed?

To uncover the right formula for growth, it only makes sense to understand the context that makes these businesses relevant and important to the future of the food and beverage business.

Perhaps fundamental here, is the influence of food culture cues on consumer behavior. At one time taste, price and convenience held sway in defining what consumers want. While taste remains an arbiter of anything that ultimately succeeds, other issues command consumer attention and help pull the purchase lever.

Consumers now look for cultural symbols and lifestyle relevance in the food and beverages they buy for the very reason they believe that higher quality choices help them secure a higher quality life.

Here in sum are some few of the evolutionary changes taking place which these new brands are tapping into:

  • People see food differently: higher quality, real and fresh food = higher quality and healthier lifestyle
  • Cultural markers are advancing around health and wellness, clean eating and cleaner labels, shorter ingredient lists, local sourcing, visibility to supply chain, more unique flavor profiles, even fresh versions of previously processed food ideas
  • The pace of innovation and development of new food ideas has made a quantum leap– from concept to beloved at speed — witness Ripple pea milk and Beyond Meat
  • Radical Innovation = new category creation – this is no longer a story built around line extensions of a legacy brand. Wholesale new categories and reinventions of existing ones are becoming the norm
  • Embracing small-is-good – big used to be reliable, trusted and consistent. Now craftsmanship, ingredient integrity and more culinary-inspired solutions hold sway. Smaller often translates as better quality
  • Mission mentality – what used to be understood as philanthropy has changed to represent a core belief imbedded at the onset of product development that then stretches beyond the product. It is most often anchored in a mission aimed at improving the world around us. Food brands with a true soul, if you will

Mentoring new brands

Perhaps most evident in early stages of emerging brand development are resource constraints that make optimal investments in marketing more difficult.

Yet, it also remains true that superior product experience is most vital to initial sales outcomes. The product itself is the marketing in this respect, and relies heavily on the creation story, higher quality components and more unique formulations to gain ground. Nevertheless, scale is a desired outcome for all involved and thus brand marketing will inevitably become a catalyst.

Challenges for new brands trying to scale:

  • Lack of internal seasoned marketing talent
  • Early mistakes and missteps in packaging, pricing, distribution (channel choice)
  • Inability to fully leverage differentiation in crowded product categories
  • Little to no investments in consumer insight that informs, adds relevance to the story and dials in the messaging
  • Loose, patchwork sales infrastructure
  • Supply chain inefficiencies that layer on cost and depress the ability to invest in consumer-facing communication

These conditions make intermediaries like FMI Emerge so important in growth and development. Larger CPGs and equity investors alike would also benefit from making contributions and resource investments in emerging brands that extend beyond sales and distribution infrastructure.

Emergent: The Bridge to Scale

Our agency, Emergent, is focused on these developing brand opportunities because we believe this is the future of the food and beverage industry, and so we have an obligation to support and address the need for scale on a more rapid trajectory.

To do this we help food, beverage and lifestyle brands successfully navigate the sea change from interruption style, talk-at marketing and communications to a more healthy lifestyle relevant and participatory model.

Here are some examples of appropriate guidance we make to emerging brands and CPGs working to help accelerate the pace of growth:

  • Insight research on core user lifestyle, message testing, innovation assessments
  • Wringing out inefficiencies in cost structures (supply chain) to help fund marketing
  • Improved package design and communication; telegraphing from the shelf
  • More strategic, consumer/lifestyle-relevant earned, owned and social communications assets and programs
  • Developing novel trial-generating programs and product demonstrations

In the end, our offer is a team of experienced marketing, communications and operations talent focused on the unique needs of emerging brands. We eat, live and think Emergent. Our goal with FMI Emerge is to help provide this guidance while the industry continues to transform.

Are you ready?

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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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