Empathy brand square

Brand Square November 20, 2014

Using Empathy to Rethink Value for Own Brands

Jim Lucas, EVP Director of Strategy & Insights, Anthem

Wednesday, November 19, 14

©2014 Matthews International, Inc. All Rights Reserved 2

Own Brand products

launched in the U.S.,

of all products

launched that year.

9,635 29%making up

In 2013...

Image Credit: shutterstock.com


©2014 Matthews International, Inc. All Rights Reserved

Own Brands Innovation

3



Own Brands Closely Aligned with Shoppers

4

Shoppers play an increasing role as brand owners and co-creators



“Empathy begins with

understanding

how another person

thinks and feels…”

5

—Simon Baron-Cohen

Empathy Part I: Understanding

Image credit: Shutterstock.com



Empathy...

6

Image credit: Endlessorigami.com



Empathy...

6

...gone horribly wrong.

Image credit: Endlessorigami.com



“…but the second, most important part

is demonstrating empathy by

responding appropriately.”

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—Simon Baron-Cohen

Empathy Part II: Responding




One of the advantages

retailers have is the

weekly

contact

with shoppers.

One learns a lot from this

intimacy...

8

Empathy & the Shopper




How can we add value to the

Shopper’s life:

• Utilitarian Value--features,

• Hedonic value--emotional resonance or nostalgic

memory

Value

9

Holistic View of Value


10©2014 Matthews International, Inc. All Rights Reserved

Chek Soda and the Family Shopper

Rethinking Own Brand Soft Drinks:



The Family ShopperShe is resource-constrained, but she has already embraced the situation—moving from survival to thrival mode.

Sources: Mintel, Private Label Beverages, September 2012; Mintel: The Budget Shopper, June 2012; Big Insights survey, Client data



She gains emotional refreshment through

connections with others.

Source: Big Insights survey, Client data Image credit: Thinkstock.com

What’s Important: Togetherness

She strives to create opportunities for fun and togetherness

• Socializing with friends & neighbors • Family activities • Cooking • Summer holidays, BBQs, Picnics

Get the most out of every day.

Focus on the present.



Shopper-Brand Relationship

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Desire to Overcome

Focus on What Matters

Recession Fatigue.

Family shoppers have

employed, and continue to

employ, budget strategies

(5.22 on average), but want

to move from “need to

do’s” to “want to do’s.”

Strategy

Family shoppers are looking

to maximize social

entertainment, emotional

refreshment (time with family,

friends, neighbors)

Creative Platform

Chek opens up new

possibilities





Elevating the Everyday

15



Pinterest Chek Pairings

16



Pinterest Chek Pairings

16



Recipes

17



Social / Digital

18



In-store

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Results

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Favorite Chek Flavors, per Facebook

0

200

400

600

800

1,000

1,200

Orange Pineapple Grape Fruit Punch Lemon Lime

1,068

959

701

432



Results

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Results

21

48%

25%

15%

48%

Chek Year 1

Dollar sales v. YA

Unit sales v. YA

Penetration Repeat



Kuddles Baby Care

22

A Private Label Trusted by Moms:



Kuddles Brand Launch

May, 2014

• Re-launch of brand at Winn-Dixie• Launch of brand at BI-LO and Harveys

23



The Kuddles Mom is a loving mom living on a budget. She puts her family first.

She defines her life—her economic circumstances do not define her.

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A tight budget is no match for her dedication to caring for her family.

She embraces the challenge to stretch her dollars to meet their needs.

Her Passion: Her Family

25Source: Big Insights survey, Client data



Time put toward providing takes away from quality time with her family.

Tension:

Sources: SymphonyIRI Group’s 2012 Times & Trends report “Channel Migration: Charting a Course on the Voyage for Value”; BabyCenter, “Shopping Rituals of the American Mom,” 2011; http://www.statisticbrain.com/wal-mart-company-statistics/

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Being a Mom means being constantly interruptable, ever

responsive, and always responsible

Channels shopped for deals

Distance (miles) from average person’s home to a Walmart

Sources of information when researching purchases

5

15

6


http://www.statisticbrain.com/wal-mart-company-statistics/

http://www.statisticbrain.com/wal-mart-company-statistics/


A Major Hurdle to Adoption has been Concerns over Quality

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Diapers Baby Care, WipesBaby Food, Snacks,

Formula

Ultra absorbent Moisturizing/Hydrating Price

Age-specific Suitable for Sensitive skin All-natural

Snug fit Recommended by experts Low/no sugar

Known brand

Key Attributes Sought by Category

Sources: Mintel, Disposable Baby Products, 2013; Mintel Baby Food and Drinks, 2013.



Shopper-Brand Relationship

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Platform framework

Insight

WOW Stat:

Motherhood adds 8 hours of

new duties to a typical day

Strategy

The effort she puts toward

providing keeps her from

spending time on what

matters most to her.

Creative Platform

Kuddles makes it

easier to be the mom you want to be



Winn-Dixie Landing Page

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An Empathetic Approach to Marketing

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An Empathetic Approach to Marketing

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In-Store Display

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Reaching out to Shoppers

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Pinterest boards included contest entries and elements from the landing pages.

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Kuddles Results

• Baby category sales were up vs.

pre-launch

• Penetration of Kuddles line was up

at both Winn-Dixie and Bi-Lo

Banners versus Pre-launch.

• Repeat rates steady, stable

suggesting Kuddles delivered on

quality.

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Penetration vs. YA



Empathy is a powerful tool for engaging shoppers and serves as a foundation

for establishing a relationship between the shopper and the brand.

But to be successful, empathy must deliver both parts of its equation:

• Understanding shoppers’ thoughts and feelings (insights) and

• Responding appropriately to those thoughts and feelings (execution)

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In Summary...



Brand Square November 20, 2014

Thank you.Jim [email protected]


mailto:[email protected]

mailto:[email protected]

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