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Using Honest Expressions Responding to New Customer Demands
Sam Waterfall
9th World Food Technology & Innovation Forum 2011
1 March 2011 Sheraton Brussels Airport Hotel, Brussels, Belgium
What’s Coming Up?
What’s Happening?
The World is changing… And it’s not going back
Growing confusion and distrust
Why is it Happening?
A new marketing reality
How Can You Make It Happen for Your Brands?
A Survival Guide for Brand Owners and Marketers in 2011
Case Studies
A tool for getting started on your brand today
If you’d like a copy of the presentation please simply leave a business card with me…
Who am I?
Sam Waterfall
Senior Consultant
Work with Clients across Europe, Asia
Brand Positioning & Innovation
Ex P&G, Boots and Kraft Foods
The Healthy Marketing Team are experts in helping brands respond to changing attitudes in nutrition, health and wellness.
We work around the globe (25 countries in 2010) and specialise in brand positioning and product innovation / renovation in food, ingredients and pharmaceuticals.
Peter Wennström The Four FactorsTM Brand Analysis System Food & Health Marketing Handbook
Who are we?
What do we do?
Expensive Launch Failures
Catastrophic Strategic Choices
Premature Brand Decline
What next?
Where next?
What now?
What’s Happening?
"Man's mind, once stretched by a new idea, never regains its original dimensions.”
Oliver Wendell Holmes
Can You Remember When
The Product
Was Actually The Product?
I want you to join me on an important historical journey…
Over the years consumers have opened the doors on various once secret rooms…
When consumers’ minds are
stretched…
… they can’t go back
First Global Food Stage: The Convenience Room
“Make it easy for me: Pack it, Process it, Combine and cook it.... For me”
”I can buy convenience”convenience
Now the
CONVENIENCE
is the product
too
Second Global Food Stage: The Premium Room
”Make me feel good and look good using it”
convenience
premium
Now the
WAY I LOOK
is the product
too
Third Global Food Stage: The Health & Wellbeing Room
”Make it healthy for me. Make me feel good about myself”
convenience
premium health
Now the
HEALTH
IMPACT
is the product
too
Fourth Global Food Stage: The Change The World Room
Focus on whole value chain and consecquences of consumption
”Make it healthy for me and the planet.
Make me feel good about my choices”
I can buy Convenience
I can buy Premium
I can buyHealth & Wellbeing
I can buy Change
Now the
ENTIRE
VALUE CHAIN
is the product!
So far so good…
… but here’s the problem
I used to win with a better apple…
Now I’m at risk along my entire value chain!
When consumers’ minds are
stretched…
… they can’t go back
Now I’ve looked inside your value
chain…
I want to see more…
3 drivers let consumers inside…
The fear culture
The connected community
Real Value
Nowhere to Hide
And this impacts all areas…
Political
Social
and yes, even Nutritional
"Man's mind, once stretched by a new idea, never regains its original dimensions.”
Oliver Wendell Holmes
Loss of Trust
Confusion
Declining faith in “experts”
HealthFocus® International 2008 and 2010 18 country Global Shopper Trend Study
2008 2010
Strongly Agree / Agree
“I am getting tired of experts telling me which foods are good for me”
40% 44%
Strongly Agree / Agree
“I am confused about what I should eat to stay healthy” 35% 40%
Extremely / Very interested in
“Buying local brands of foods and beverages” 62% 68%
Why is it Happening?
Consumers are ever more demanding
What is scary about this?
Consumers have more reasons than ever to REJECT your brand.
Motivation vs Permission
Consumers motivated by needs and benefits
Ingredients can provide a reason to believe
And increasingly… a reason to reject
A new marketing reality
RTBRTR
Your consumer has many reasons to reject
New Marketing Reality
From closed door, façade marketing
To the exposing the whole value chain
How to Make it Happenfor Your Brands…
Worldview
Seth Godin on Worldview…“A worldview is not who you are. It’s what you believe.It’s your biases.”
“A worldview is not forever. It’s what the customer believes right
now.”
Seth Godin – All Marketers are LiarsPenguin, 2005.
“Fizzy drinks will rot my child’s teeth”
“Organic is definitely worth it for the kids”
Camilla Barnard – Rude Health“All natural, sustainably and artisanally produced, no-GM grains - targeting people who believe breakfastis the most important meal of the day”
Have You Ever Tried
to Change Someone’s Mind?
Our job as Marketers is to
match
product stories to our customers’ existing worldviews
Remember the product is
no longer the product…
We don’t buy the product…
We buy the way the brand will make us feel
A 4-Strategy Survival Kit for Marketing Across Your ENTIRE VALUE CHAIN…
Strategy 1
Empower Your Consumer
(any way you can)
I Connect … I Controlconnectivity gives me control
• The empowered consumer• The world in ‘MY’ hands• The consumer wants to be in control of the choices he/she makes• It’s the brand’s responsibility to create new and effective channels for communication• Internet, food labels and retailers are the growing sources of information globally
“There’s an App for that”
Strategy 2
Use Transparency to TellAnd Sell!
Using transparency to position for good
(and re-position the mega competition)
McDonald’s UK
www.makeupyourownmind.co.uk
• Visit the McDonald’s Farms• Interact with the Company (23,127 questions since
2006)• ‘Quality Scout’ Programme Offers Supply Chain
Transparency for ‘Curious Consumers’• RTBs include 17,500 farms and feeding Olympic
Athletes
Raisio Voluntarily Takes Transparency To a New Level
• Finnish company Raisio has demonstrated its commitment to a green future by pioneering both the CO and Water labels on its food brand packaging.
• Between 2009 & 2010, Raisio has introduced an indicator to be used on its food brand packs that will show the carbon footprint in a easy to read colour code.
AND
• It is also the first food company in the world to add a water label on brand packaging indicating water consumption of the brand from field to end product.
Strategy 3
Mindset – “Green to Gold”
(But not for everyone!)
No need to Trade Profits for Virtue
(if you target by worldview – not demographics)
Strategy 4
Differentiate along Your ENTIRE VALUE CHAIN
(and be ready for attack)
Lucini
Olive Oil from a ‘single vineyard’
Birdseye Frozen Foods
TraceabilityChallenges the processed perceptions people have of
frozen food
Coca-Cola
Instead of divulging the sources of ingredients, they focus on manufacturing locations, distribution and environmental impact.
Add Drama on the Benefit…
Dramatise the Entire Value Chain…
Aveda
Live and breathe their values and deliver it in a holistic way.
Recycled materials but with modern structures.
For each Worldview…
“The Value Chain begins in the mind of the Consumer”Peter Wennström
Who NEEDS the product?
Do they UNDERSTAND the
benefit?
Do they ACCEPT the ingredient?
Do they TRUST the brand?
Factors of Permission
Factors of Motivation
When consumers’ minds are
stretched…
… they can’t go back
Summary
• What’s Happening?• The product is no longer the product.• The entire value chain is now exposed…- It is both ripe for your innovation and differentiation- And vulnerable to competitor attack
Why is it Happening?• A new marketing reality
How to Make it Happen for Your Brand:• Your story must match the worldview of your target• Use the FourFactors® to build in both MOTIVATION
and PERMISSIBILITY into your brand story
If you’d like a copy of the presentation please simply leave a business card with me…
