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ConsumerOf The FutureInsights on Fast Food
January 2019
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.
Table of Contents
All of the material in this document is copyrighted and may not be reproduced in whole or in part without express written permission. For permission, contact Joe Sciara at [email protected].
05 About This Study
07 Quick ServeRestaurants
18 AboutBarkley
20 Resources
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
5
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AboutThis Study
Full of noise, constant competition and easy access to just about everything, the modern market is congested with brands doing anything to stand out, while consumers too often respond by shutting off. Potent modern brands understand why: They listen to and study consumers, then evolve to meet their needs.
It’s our business to help brands get to know their consumers, to connect with them through ideas that drive the entire spectrum of a brand, from business strategy to marketing strategy. And, ideas that are not just for now, but for what’s next. Our commitment to knowing modern consumers better than anyone inspired
this latest deep-dive into modern brand mindsets and brand impact levers as they pertain to various categories.
In partnership with Jefferies and Accenture Strategy, we conducted a proprietary survey of 2,851 consumers that studied consumer preferences and purchase drivers across multiple categories, including personal care & beauty, apparel, packaged foods and QSR restaurants.
We investigated modern brand mindsets — or the cross-generation collection of behaviors and attitudes that a brand can leverage to drive performance in terms of share, growth and loyalty. These mindsets are informed by the impact of Millennial and Gen Z expectations of modern brands, as they form
the majority of people engaging in commerce — the core of what we call modern consumers.
Brands that understand the modern consumer will be more likely to create an emotional connection that drives brand love and loyalty — which equates to higher brand value.
Modern Brand Mindsets
Adding GoodPurposeful
Simplifies My LifeAccessible
ReinventingInnovate
Emotional ConnectionSelf
Puts ConsumerTrustedNeeds First
Conversational +Social Circle
Participative
01
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.
Quick ServeRestaurants
Product
Communications
Design
Experience
Workforce
What the brandtakes to marketand sells
The symbols and narratives that tell a brand story
The manifestations of a brand that make it top of mind
Customers’ directexperience with a brand
The internal culturethat defines a brand from the inside out
Brand Impact Levers We also looked at impact levers, defined as the sub-system of product, experience, communications, design and workforce activities. These levers connect a brand’s business and marketing ideas with its consumers and stakeholders.
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
9Personal Care
& Beauty
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9Quick ServeRestaurants
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
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ModernBrand Mindsets
Modern Brand Mindsets When looking at the importance of the Modern Consumer Mindsets in this category, accessibility and trust are important overall to driving performance. This
was the only category of consumer goods where two Mindsets drove importance. Accessibility is driven by “makes it easy for me to use their products” and “makes
it convenient to shop for and buy their products.” Trusted is driven by “doing the right things” and “is honest in its actions and communications.”
figure 1.1Mindsets Performance - Quick Serve Restaurants Index to All Categories
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
Self PurposefulSocial Innovative AccessibleTrusted
There are differences by generation:
40
80
120
160
0
Gen Z
Cares about sustainability and the environment
Millennials
Helps me live a simpler, healthier life
Gen X
Is honest in its actions and communication
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Brand Impact Levers
figure 1.3Brand Impact Levers
Brand Impact Levers
Fast Food Restaurants
Packaged Food
Personal Care & Beauty
Household Products
Fashion & Apparel
Brand Experience
Product + Service
Brand Design
Fast Food Restaurants
Brand Communications
Workforce
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
figure 1.2TURF
Makes it convenient to shop for
and buy their products
Makes it easy for
me to use their products
Helps me live a
simpler, healthier life
Cares about sustainability
and the environment
Creates innovative
products and solutions
Reflects my lifestyle
Is honest in its actions and
communication
Is authentic and true to
its roots
0%
20%
40%
60%
80%
100%
We used a TURF analysis (total unduplicated reach and frequency) to see what individual Modern Brand Mindset statements drove reach in this category. The chart below indicates that
it only takes four factors to reach 70 percent reach with women and men. Shopability, ease of use, helping live simple/healthier lives and sustainability are key attribute factors.
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
70% Reach
MaleFemale
ModernBrand Mindsets
While performance measurements across categories find that product matters most when selecting a Quick
Serve Restaurant, brand experience and communications become more critical in other categories.
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
15Key
Takeaways
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Key TakeawaysModern consumers view brands as a collection of ideas that embody a mindset(s) and activate across brand impact levers, albeit not all equally. As a result, brands do well when they:
• Shift away from the Golden Rule of Treat others as you want to be treated, and move toward the new Platinum Rule, Treat others as they want to be treated.
• Understand that modern consumers value authentic brand purpose built through a virtuous cycle of trust, purpose and loyalty, with accessibility being paramount.
• Recognize that brand impact levers vary by demography, category, mindset and brand lifecycle — there’s no “one size fits all” when it comes to connecting with consumers.
• Clearly and consistently convey their brand value and use personalized engagements to build emotional connections.
• Invest in experience and communications levers.
figure 1.4Brand Impact Statements
Has a store, website, mobile app, etc. that is easy to navigate and shop.
Customer service makes me feel special.
Rewards me for my loyalty (e.g., gives me recognition, special gifts, discounts or other benefits).
Has advertising that is easy to understand.
Has advertising that is entertaining.
Individual statements for the Quick Serve Restaurants indicate preference for brands that use technology for convenience, great customer service, and advertising that is both easy to understand and entertaining. The following percentages represent consumers who agree the statement is important when deciding what brand to purchase.
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
EXPERIENCE
COMMUNICATION
0% 20% 40% 60% 80% 100 %
56%
40%
41%
41%
62%
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Capability
Growth Opportunities To extract growth, brand owners need to focus on three types of next-generation capabilities.
Consumer Insight & Strategy Formulation
Continually renewing market awareness driving consumer-centric brand portfolio strategy.
Operating Model Agility
Living organization with modular plug-and-play structure that adapts to changing market conditions, balancing speed, flexibility and efficiency.
Brand Activation: Bringing Brands to Life
Meaningful consumer engagement integrated in consumers’ lives through deep insight, agile innovation, and authentic, relevant brand stories.
Source: BSM Executive Interviews; Accenture Research
However, brands must build new capabilities to win in the marketplace: larger brands must invest in such capabilities more than emerging brands due to their leadership role in the marketplace.
CAPABILITYRequired Mastery by Brand Type
Leading Retailer Emerging
Con
sum
er In
sigh
t &
Stra
tegy
Continually Renewing Market and Consumer Awareness: Holistic, data-driven external outlook that continually scans the market and identifies disruptive opportunities.
Compelling, Balanced Portfolio: Clear and disciplined brand portfolio strategy.
Bran
d Ac
tiva
tion
Agile Innovation: Deep consumer insight drives rapid product/service/business model innovation.
Consumer Intimacy: Hyper-relevant consumer engagement creates authentic brand stories and meaningful relationships.
Consumer-Centric Omnichannel: Brand alignment across proliferating array of business models based on consumer occasions.
Ope
rati
ng M
odel
Agi
lity
Market-Adapting Supply Chain: Demand-sensing manufacturing and supply chain balances flexibility and efficiency.
Living Organization: Nimble and modular organization that supports multiple business models with diverse strategic objectives.
Ecosystem Mastery: Design, form and manage ecosystems for value creation.
Source: BSM Executive Interviews; Accenture Research
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
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Authors &Contributors
About Barkley At Barkley, we are committed to knowing the modern consumer better than anyone. We take pride in future-proofing business models and modernizing iconic brands. However, we are more than an ad agency. We are integrated business partners who are analytic and innovative at the core, using data to drive marketing conversation
and strategies. This culture of innovation allows us to partner with our clients to create the solutions of the future. Our emerging technology innovation practice has built and deployed new technologies that create more engagement with the savviest generation of consumers we’ve ever seen.
About Authors & ContributorsBrad Hanna | [email protected] is an Executive Vice President and Director of Business Strategy at Barkley. Brad serves as senior advisor and strategy lead across a portfolio of major brands. He has played a vital role in shaping the research and strategy design projects for Barkley, as well as collaborating with FutureCast on major projects since 2011.
Jeff Fromm | [email protected] Jeff is President of FutureCast. Jeff has co-authored two books on Marketing to Millennials and a new book on Gen Z.
Chad Nicholson | [email protected] Chad leads Barkley’s Business Strategy team, responsible for providing deep insight into factors affecting overall business and brand performance. Focus areas include food and beverage categories such as meat protein, dairy, produce and alcohol beverages across retail and food service.
Accenture and Jefferies contributed to this report through the Brands Still Matter Survey and Consumer of the Future Survey.
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
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Credits
Resources Credits1 Brands Still Matter
Survey (2018). Accenture Strategy; Jefferies.
2 BSM Executive Interviews (2018). Accenture Strategy.
3 Consumer of the Future Study (2018). Accenture Strategy; Barkley; Jefferies.
4 Marketing to Gen Z (2018). Jeff Fromm; Angie Read.
Production
Arthur Cherry Associate Design Director
Sara LeutyDesigner
Anh Truong Designer
Contact
Joe Sciara EVP of [email protected]
Editorial
Jennifer MaziWriter
Eli Lafollette Designer
Joni Thomas Designer
Max Jaffee Designer
Danielle Smith Proofreader
1740 Main St. Kansas City, MO 64108
barkleyus.commillennialmarketing.com
Insights on Fast Food
Consumer of the Future