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Neuro-imaging helps us understand the true behaviors of people

The Most Misunderstood Tool in Marketing: Your Customer’s Brain

February 18th, 2023 Posted by Behavioral psychology, brand advocacy, Brand Design, brand marketing, brand messaging, Brand preference, brand strategy, consumer behavior, Consumer insight, Emotional relevance, Human behavior, Insight, Marketing Strategy, storytelling 0 comments on “The Most Misunderstood Tool in Marketing: Your Customer’s Brain”

Why we unleash the power of emotion to inform business outcomes

What drives people to make the choices they do? What is it that causes us to prefer one brand over another? What are shoppers actually, truly thinking? Until now, since no one had can come up with a scientifically tested, verified answer to those questions, brands reflexively plowed ahead using the same strategies and techniques as they always have. Lather. Rinse. Repeat.

However, the laws of attraction for one brand over another are locked up in the consumer’s often misunderstood brain.

  • Now thanks to neuro-imaging research (known as fMRI), we have unprecedented insight into how emotions – such as generosity, greed, fear and well-being – impact brand selection and purchase decision-making.

Why is this insight so important? In our multi-channel, always on digital world, people are yanked, tugged, pelted, pushed, prodded, reminded, cajoled, whispered at, overloaded, and overwhelmed by an unrelenting stream of in-your-face product communication. The result? Snow-blindness.

Through behavioral research we can confirm that brands will most likely fail to engage when they rely on functional attributes of products – bigger, quicker, cheaper, more powerful, faster acting, or greater selection – rather than focusing on connecting to the consumer through deeper meaning. Storytelling strategies miss the mark when brand minders concentrate on only a part of the human behavior system – for example pressing hard on competitor brand weaknesses – only to leave the consumer’s emotions out of the equation.

Why do we continue to default to the time-worn approach of barking the benefits as if on auto-repeat? The answer starts with each of us. Literally everyone enjoys thinking of themselves as a rational being. We nourish and clothe ourselves. We go to the office. We think to turn down the temperature at night. We download music. We go to the gym. We handle crises – like missed deadlines, a child falling off a bike, a friend getting sick, a parent dying, etc. – in a mature and evenhanded way. Thus, we erroneously believe we’re reasoned analytical, logic-driven decision makers. Well, we’re really not.

In truth, the other part of our minds not governed by rational thought is flooded with cultural proclivities rooted in tradition, fear, how we’re raised, and a host of other subconscious influences which rise to apply a powerful but invisible influence over the choices we make. And the secret to enrolling that part of the brain – emotion.

“Emotions are the way in which our brains encode things of value, and a brand that engages us emotionally—like Apple, Harley-Davidson, and L’Oréal, just for starters—will win (in the marketplace) every single time,” reports Martin Lindstrom, author of the neuromarketing treatise, Buyology.

Roughly 85 percent of the time the brain is on autopilot. It’s not that we can’t think – rather our subconscious minds are a lot better at informing our behavior (including why we buy) than our conscious minds are. We are hardwired to defer decisions and actions to the sub-conscious and we don’t even realize we’re doing it.

The subconscious is at work informing our buying behavior

Mirror Neurons are always operating in the brain

A classic example, we tend to subconsciously imitate what others around us are doing. Think about how other people’s behavior affects our shopping experience, and ultimately influences our purchasing decisions. Mirror neurons override rational thinking and cause people to unconsciously imitate – and purchase – what is in front of them.

Or our brains build a story that we believe. We may see models in fashion magazines and want to dress like them or make up our faces the way they do. We watch the rich and famous driving expensive cars and lounging in their lavishly decorated homes and ruminate, I want to live like that.

Lindstrom provides a common-place and relevant example: “A shapely mannequin wearing hip-hugging, perfectly worn-in jeans, a simple summery white blouse, and a red bandana stops you in your tracks. She looks great—slim, sexy, confident, relaxed, and appealing. Subconsciously, even though you’ve put on a few pounds, you think, I could look like that, too, if I just bought that outfit. I could be her. In those clothes, I, too, could have her freshness, her youthful nonchalance. At least that’s what your brain is telling you, whether you’re aware of it or not.”

We rely on almost instantaneous shortcuts that our brains create to help us make buying decisions.

Is the decision rational? It may seem that way as a choice is made, but it wasn’t, and not by a long shot. In a nano-second and below your conscious radar an inner conversation is occurring. Lindstrom again provides an iconic example:

“I associate Skippy with childhood…it’s been around forever, so I feel it’s trustworthy…but isn’t it laden with sugar and other preservatives I shouldn’t be eating?…Same goes for Peter Pan, plus the name is so childish. And I’m not buying that generic brand. It costs 30 cents less, which makes me suspicious. In my experience, you get what you pay for…The organic stuff? Tasteless, the few times I had it…always needs salt, too…Plus, didn’t I read somewhere that “organic” doesn’t necessarily mean anything, plus it’s almost double the price…Jif…what’s that old advertising slogan of theirs: “Choosy Mothers Choose Jif”…Well, I am a fairly discriminating person…”

That entire evaluation happens in an instant and below conscious thought, based on deep-seated experiences, acquired knowledge, cultural bias and perceptions we hold close over time.

When emotional connections are the priority

Brain-scan studies confirm our heads are hardwired to bestow upon some brands an almost religious significance and as a result we forge binding loyalties that keep us coming back over and over again.

Imagine the power of fear in bringing actions to bear on a benign and unsexy category like home safety. We were tasked with creating a new residential alarm product category for First Alert, the smoke alarm brand leader. The task was centered on the leading source of accidental poisoning fatalities in America – carbon monoxide (CO). This household hazard is odorless, colorless, tasteless, completely invisible and early symptoms are identical to the onset of flu.

Sounds like an impossible task doesn’t it. In part because we know people invariably believe that hazardous events like this “will never happen to me” – not in my back yard. We conducted deep dive research with married couples who had children in an effort to understand where the levers of reception and action could be tapped. We learned that if their children were at risk from an invisible menace that would impact kids faster than adults, they would act quickly to mitigate the problem.

We created a name for the threat that made its invisibility an attribute – “The Silent Killer.” We built the campaign around a real family from Maine who lost their teenage daughter to an accidental poisoning event in their home. It could have been prevented if an alarm had been present. The parents for their part wanted to help educate other families to help them avoid the one thing parents fear the most: loss of a child to a preventable accident. In this case, the alarm is the only way to know invisible CO is present.

The story was powerful, emotional, personal and real. We did not devote any of the narrative to product features or technology. It was instead focused entirely on a heart-rending story that ended with a call to action to protect family members by installing an alarm. The campaign was so successful the new First Alert CO alarm business went from zero to $250 million in sales within 14 months of launch. City governments stepped in to write laws requiring carbon monoxide alarms in homes. National news covered The Silent Killer safety hazard. Local TV news showed people in lines around the block outside their hardware store looking to get an alarm. Thousands of needless deaths were ultimately prevented.

The power of emotion to move people to action cannot be underestimated. The dynamic exists in virtually every product category you can think of. It’s counterintuitive, however, to the traditions of focusing story on product features and benefits. Yet we’ve seen over and over that when how human beings operate holds sway in decisions regarding communications, the subconscious becomes a powerful asset on the road to preference and purchase.

Without it, we’re talking to ourselves in what is inevitably a snow blinding experience for the consumer who avoids the message.

Curious about learning which emotional triggers might be most compelling for your users?

Share your observations or questions here. Use the this link to start an informal dialogue on emotion-based marketing.

Founders personify brand purpose

Is Your Brand’s Soul Strategy Your Sole Strategy?

May 11th, 2022 Posted by Behavioral psychology, Brand Design, brand marketing, brand messaging, brand strategy, Brand trust, Higher Purpose, Insight, storytelling 0 comments on “Is Your Brand’s Soul Strategy Your Sole Strategy?”

Without careful nurturing, the deeper meaning you started with will disappear

Truth is people care more about your *why* than they care about your brand’s how or what. While they aren’t necessarily enamored with your competitive specs and formulation wizardry, what they will resonate to is *why* you do it. Your purpose – your deeper effort to do something more meaningful – a mission that transcends commerce. These are the beliefs and values that draw people in, anchor their advocacy, and make them want to be members of your brand community rather than merely users.

Yet over and over again, we observe organizations failing to see the importance of these principles and in doing so, lose the magic that resonates and attracts people to the extraordinary promise that heralded the company’s genesis.

Your *Why* matters.

The why of every organization starts in the past, informed by the life experiences and aspirations of the founder(s) –people who were motivated to do something bigger than themselves. The foundational concept becomes the secret sauce that drives brands forward. It is, however, elusive, and can disappear over time if the cultural legacy and beliefs that lifted the organization to its initial success are lost. Future management teams may believe efficiency, cost control and improved processes constitute the levers of brand affinity and business growth. Not so.

Iconic brands are not immune to this almost inevitable and corrosive condition!

Charles Lubin, a Chicago baker, established the Kitchens of Sara Lee in 1949, naming it after his nine-year old daughter and launched his first successful product, a cream cheesecake. But it was a retailer in Texas who wanted to stock Sara Lee desserts that prompted him to reformulate so it could be successfully frozen and shipped long distances. Lubin invented the frozen baked goods category. He sparked innovations in production (foil pans) and flash freezing that fueled national distribution of his “Nobody Doesn’t Like Sara Lee” brand.

He retired from the business in 1968, then owned by Consolidated Foods (later renamed Sara Lee Corporation). As is often the case when the visionary moves on, if the deeper purpose, beliefs and meaning he brought with him are relegated to historical record, the heart of the enterprise’s belief system can get usurped by process, operations and balance sheet considerations. By the early 1990’s without nourishment of the Sara Lee brand soul, inevitable decline had set in. The parent company, now called Sara Lee Corporation, began to contemplate divesting its corporate namesake baked goods business. Tough to do.

The Wheatley Blair agency was retained on a rescue mission. Could we turn the business around? It would require radical moves, marketing finesse, a complete restage and especially, soul regeneration. Our strategy: unlike so many other food brands with made-up names, there really is a Sara Lee. Could we reinstall some of the magic and meaning by bringing her in to be the face and voice of the brand?

Soon we found ourselves sitting in Sara Lee’s upper east side apartment in Manhattan talking about her dad’s legacy and how much the business needed her help. Reluctantly she agreed to get involved and so we mapped a three-year strategy to revitalize the brand around her as spokesperson and personification of a new era at Sara Lee.

What happened next was truly remarkable. To launch a new line of baked goods with a lighter formulation, we created the first International Symposia on Dessert in Vienna, Austria – the world capital of dessert and pastry.

We flew 56 top North American food media to Vienna for three days of 24/7 dessert-centric experiences, seminars and tasting events. There, for the first time we introduced the world to Sara Lee the real, living human namesake. The media were smitten. The brand garnered more media attention than it had received in its entire history. This brought a refreshing injection of tangible humanity into a brand that had lost its anchor. Within a year the business started its upward trajectory and Sara Lee Corporation credited the strategy with turning the Sara Lee brand around at its annual shareholder meeting.

“What will it profit a man if he gains the whole world yet forfeits his soul?”

Steve Jobs understood this and saw it unfold in real time.

“Something happens to companies when they get to be a few billion dollars, they sort of turn into vanilla companies. They add a lot of layers of management. They get really into process rather than results, rather than products. Their soul goes away. And that’s the biggest thing that John Scully and myself will get measured on five years from now, six years … Were we able to grow into a $10 billion company that didn’t lose its soul?” – said Steve Jobs, circa 1984, in a Rolling Stone magazine interview.

Of course, Jobs was pushed out of his own company in 1985 and we know the Scully years were not necessarily a huge win for Apple. Until, the corporate “soul” in the form of Steve Jobs returned in 1997 to reinstall a refreshed ‘change the world’ vision and “Think Different” higher purpose. That purpose has remained with Tim Cook and the company continues to follow its inspiration and celebration of creativity and empowering individuals to change the world around them.

“I want to put a ding in the universe” – Steve Jobs

Apple doesn’t sell machines. Never has. Apple Macintosh was the first personal computer to offer a “graphical user interface” and mouse. Did anyone yearn for this tech? No. It was the point and click simplicity that elevated the experience. The story around enabling creative citizen communication and putting the power of publishing in the hands of any human was a dramatic departure from everything that came before it. The emotion-driven purpose that so resonated was: Empowering Creativity. Anyone’s creativity. Everyone’s creativity. No matter what the expression of that creativity was, you were now empowered to – borrowing from another – Just Do It.

Coffee culture and experience

Howard Schultz was struck by the coffee culture he observed in business trips through Italy. The sense of community and conversation that was part of the cultural vibe around the experience of enjoying elevated and refined coffee beverages. In its earliest days Starbucks was about bean religion and ingredient provenance stories for the vast improvement they brought over the current miserable state of coffee beverages sold in America.

He created the ‘third place’ as a personification of coffeehouse culture that turned Starbucks into a destination of enjoyment around subtle European sophistication cues. In those days coffee would be served in ceramic cups. People were encouraged to stay. It was a cultural immersion. There was deeper meaning, values and lore around coffee beverages, a veritable world tour of taste sensations (now taken for granted). When Schultz left the company some of its soul went with him. In his subsequent returns some of that magic came back with him trailing like the visible tail of a comet.

  • The biggest challenge any brand will face over time is how the organization continues to grow and prosper without diluting its soul. And if that happens, how to reacquire it by looking backwards, not forwards to the story and formative beliefs and values that drove the concept from day one.

Money is not a purpose, it is an outcome

Why is *why* so important?

Because it inspires trust. It reaches the heart. It is always heart over mind you know!

Nothing can be more important in the digital age when ‘anything that can be known, will be known,’ craters so many corporate and individual reputations. When the words used to describe what a company does are unrelated to price, quality, services and features, you have a clear indicator that the *why* has blossomed.

When Schultz departed Starbucks and subsequent management focused on what and how over why, the soul eroded and commoditization challenges took root.

Here is the essence of it…

When a brand clearly, resolutely communicates its *why* – its beliefs and values – consumers believe what the organization believes. People will go to great lengths to include brands with a soul in their lives. Not because of any analytical evaluation of product features, but because people hold up those brand values and beliefs as markers and signals of who they are, what they care about. Apple is a flag for creative expression. Starbucks was a statement of sophistication. Costco is not a store, it is a treasure hunt.

People form communities to be around others with shared values and aspirations. Companies can help foster those communities when the story they tell is grounded in higher purpose rather than product slogans, features and benefits.

When a company doesn’t offer anything beyond rational, analytical arguments about its product, it is attempting to force less than inspiring decisions on a purchase – and commoditizing itself in the process. The only games left to play at that point are attempts at manipulation through conventional interruption media and incentives.

  • People want to belong to something bigger than themselves. Can you provide that? People aren’t buying what you do, they are buying why you do it.

If you need help and guidance in reasserting your why, or creating the higher purpose for your brand, use this link to start a conversation with a team that understands how to elevate purpose as core strategy and a business anchoring system.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Building the Human Brand

Building a More Human Brand

October 19th, 2021 Posted by Brand Activism, brand advocacy, brand marketing, brand messaging, brand strategy, Differentiation, Emotional relevance, engagement, Growth, Higher Purpose, Human behavior, Insight, Marketing Strategy, Navigation, storytelling, Strategic Planning, Transformation 0 comments on “Building a More Human Brand”

Time to banish the old marketing playbook

Remember the good old days of command and control, interruption-style marketing and business development strategies? Consumers were viewed as “targets” to be persuaded through repetition and subtle manipulation of their emotions or pocketbook sensibilities.

Vestiges of this way of thinking remain handcuffed to far too many brands that continue pushing feature, benefit and price messages at consumers in both digital and analog channels. Thus, why engagement is increasingly hard to secure. Consumers have become serial avoiders of self-promotional brand outreach as a result. No one likes to be “sold.”

It’s time to stop, reconsider and move on to build more human-centric brands.

Think for a minute about the people you care about in your life. Your family, friends and colleagues. Those closest to you enjoy a special position of value and affection. You’re concerned about their welfare and wellbeing. You make time for them, cherish them and invest in their progress. In short, you care. You express love in words and deeds. You listen. You help. You support and respect them. Moreover, you don’t see those relationships as merely transactional.

Now think about your business behaviors and how customers are viewed and treated. Is it the same? You say well, we’re in business to sell our products. To be sure, but maybe the goal of share and volume glory follows a different path now. One that is built on a model of reciprocity that looks more and more like the valued relationships we have in real life.

Not ‘data points’, they’re human beings

What are the five things your customers want from you?

  1. Inspiration
  2. Advice
  3. Guidance
  4. Education
  5. Entertainment

We have moved from a product focus to content. Are you optimizing the brand communications arsenal for help over hype? Here are three observations that should be considered in developing human-led brand communication.

Utility over cleverness

This may be the toughest consideration of all when viewed through the lens of ad creative traditions. It has been the province of creatives in the agency game to be focused on translating a key product selling proposition into the artful headline or theme. The theory: engagement is achieved through artistic wordsmithing. An artful turn of phrase or catchy tagline is prized as an achievement on the road to being “intrusive” and therefore noticed in the vast sea of message overload.

Times have changed and while great copy is going to be a key driver of engagement, the character and content of the communication is better served through its usefulness rather than pure cleverness alone. Attention is hard to secure. The path to gaining consumer participation is better aided by providing relevant value. That means the message moves closer to serving the consumer’s role as hero of the brand story, in a narrative that is helpful and educational more than self-promotional. It’s about them not us.

Someone is better than everyone

The definition of sound strategy is making tough choices. When the intent is to be all things to all people, the outcome is mattering to no one. It is better to focus on someone rather than everyone. To do that requires sacrifice. It means you select an audience cohort closest to the center of your most ardent user base. Then zero in on what they want and care about. Prune the rest.

In our own experience this played out to great effect when former client Sargento cheese agreed to focus on a consumer segment called The Food Adventurer. This audience of cheese lovers and heavy users care deeply about the quality of ingredients they use. They love to cook, pay attention to culinary media. They are routinely engaged on topics and content that help advance their skills in the kitchen and culinary creativity. By focusing here, Sargento created an opportunity to matter to an engaged audience of food fans, rather than speaking to everyone  (usually defined as moms with kids) across the expanse of the commodity cheese marketplace.

Make a choice, narrow the focus to those who care and are therefore listening.

Inspirational beats transactional

There is a great temptation to assume if you aren’t hitting hard on the product features and benefits, then you’re not selling effectively. But the world has changed. Gaining attention isn’t a math problem of calculating media channels to frequency of message distribution. If the relationship economy is respected, then you understand that winning permission for a conversation depends on following a different set of rules.

  • Your brand voice is built around empathy and care for the passions, interests and concerns of your best customers. You understand that the role of the brand in this relationship is one of guide and coach. Your goal to help them overcome the barriers to their success and fulfillment.

Your brand becomes a source of encouragement and education. Sargento helps the home cook deliver on their passion for creativity in the kitchen. Boom – now we’re talking. Literally. Now we’re actually communicating rather than monologuing. The brand stops barking at people and begins to engage in their community and lifestyle in a useful, valuable way.

When you speak to those in your orbit that you care about, are you selling to them? Pushing self-serving messages at them? No instead you are genuinely listening and helping.

The enlightened brand building of our era begins with injecting humanity into the marketing plan by making consumers the center of it and deciding to earn a relationship based on valuable-ness.

The last word: “Every brand is now a B-corp” – Ana Andjelic, The Sociology of Business

We are in the midst of another evolutionary shift. Consumers care deeply about your values, mission and actions to address social issues like climate impact and sustainability. They care about the impact their buying decision has on the world around them. They have connected the dots between their purchases and a consequence. They want to identify and act on more sustainable choices.

You can help them do that. But be aware that substance and authenticity matter here. Your own sustainability readiness house needs to be in order before invoking solidarity with consumers on these concerns. Sustainability can’t be a message construct floating independently from policies and standards that address the company’s carbon footprint and impact on the environment. There should be clearly expressed targets and actions steps to mitigate those challenges.

Embracing sustainability is yet another way to put the brand “in league” with consumers on a culture imperative issue they care about and expect brands to be part of the solution.

All of this coalesces around one key point: when brands understand that customer relationships these days operate a lot like the kind we have with people we care about, then you understand how the brand should behave and engage in that setting. More empathy, guidance and coaching than promoting. It’s time for the more human brand.

If this guidance strikes a chord as you look towards strategic planning in the year ahead, then let’s start an informal conversation about your concerns and needs. Use this link and let’s talk.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Brands are badges to be worn

4 Unique Strategies for Premium CPG Brand Growth

September 23rd, 2021 Posted by Brand Design, brand marketing, brand messaging, brand strategy, Category Design, Emerging brands, Food Trend, Insight, Marketing Strategy, Product design, Strategic Planning 0 comments on “4 Unique Strategies for Premium CPG Brand Growth”

Advantages you can plan and design for

Food culture in America has dramatically shifted during the last 10 years. People favor premium quality, higher priced products that address modern dietary needs serving health, wellness and sustainability goals. Better food experiences, fresh ingredients, more sophisticated tastes and the brand sustainability symbolism that goes along with it help complete the mission and taste adventure. This is the preference paradigm where all innovations whether from legacy brand or new player must pay homage on the road to success.

  • Here are four key strategies that hold sway over your ability to succeed, to grow and gain share for food and beverage innovations.

We highlight these four distinctive growth strategies in part because they are passed over all too frequently. Eclipsed by the allure of instant scale, every-new-retail-door-is-a-good-door and ill-advised distribution moves that undercut the very brand value proposition that premium CPG solutions embody. This helps explain the high innovation failure rate or seemingly insurmountable plateaus where new emerging brands stall out, never getting a shot at the high volume homeruns of wider adoption downstream.

Want to assure your brand innovations are successful and not a casualty on the path to pantry and fridge domination? Then read on.

  1. Your product concept is the marketing lynchpin (watch out for the Special Occasion Trap)

Food retailers care about velocity and monitor it relentlessly. Marketers care about scale because velocity and scale together are the flags of a winning concept; thus, why growth nirvana for premium CPG success always begins with strategic product and category design. Your innovation goal is a product that naturally, intuitively fits with frequent if not daily consumption occasions and feeds high repeat purchase behavior. Retailers understand this and look for it.

Products that are intended for niche, episodic occasions are much harder to score scaling victory for the very reason they don’t lend themselves to velocity, high repeat purchase business imperatives. If fancy jams are your jam, be prepared for the embedded difficulties that come with slow turn categories or segments with a narrow, special interest fan base.

2. Public ‘display’ categories add symbolism romance to marketing

Food and beverage purchases these days are largely symbolic. People ‘wear’ their brands as a statement, a flag, a visible demonstration of what they value and what they wish to signal to the world around them about who they are.

You know this so can you plan for it, use it. How can you enable consumers to fly your symbolic brand flag? Does your premium brand innovation lend itself to public display occasions such as barbecues, parties, taken to the office or gym and consumed in a social setting? Brand iconography, symbolism and telegraphing of same can be deployed here to help your users display and vote their beliefs and values. Too often this opportunity gets overlooked.

3. Pack strategies can ignite new occasions

No doubt you’ve heard of price-pack architecture. There is a bit of CPG magic in this strategic growth solution. It helps you lean into new and different occasions while creating higher average retail price points (more cash and flow) with a perceived embedded consumer discount, and more facings (brand billboard) at shelf. Pack architecture projects open the door to migrating your users to new consumption occasions.

Amplify Brands’ Skinny Pop brand rode the pack architecture idea to fame and fortune by creating both smaller bags and larger pack sizes of their pound-able guilt-free popcorn. The move lifted average price points while leveraging new use occasions from school lunches to birthday parties. When you offer new packs the input costs are manageable while adding exponential growth on the income side and serving the usage occasion/velocity rule at the same time.

4. The slightly uncomfortable but immutable rule of upscale zip code distribution

There’s an old but wise saying: fish where the fish are. For premium priced food and beverage innovations the distribution strategy decisions you make will have an enormous impact on your ability to gain traction and scale the business. Where you do business matters especially in the early going.

Premium innovations are home to higher quality ingredients, real food-based formulations.  These brands reflect the lifestyle symbolism embraced by consumer cohorts who in reality control the fortunes and failures of new product fame or flame out.

What do we know: educated, high earning households congregate in upmarket neighborhoods. Trial for premium priced CPG innovations will always be better served in retail doors that exist to serve an upscale shopper base. These folks not only won’t flinch at your higher price point, they are also hunters of new premium innovations. Early trial fuels their social currency of being a word-of mouth warrior.

There was a time when Whole Foods owned the early trial zone for premium CPG innovations, but other banners have caught up in their premium offerings. Now it’s a zip code exercise where your decisions are more about the education levels of the communities you distribute in ahead of other considerations.

The guidance: not every new door is the right retail door. Controlled expansion plus patience are better for building your business rather than taking distribution wherever you can get it. EDLP retailers have a different model and a different shopper base driven more by price point than your quality ingredient, healthy lifestyle bona fides. Walmart is better for mass legacy brands for this reason.

  • Broader distribution and wider geographic expansion make sense when innovations become mainstream and lower income households begin to take them up. Going that route too early can create problems leading to profit-eroding price drops and even delisting if you’re not careful.

There are 40 metro areas in the U.S. where greater than 30% of the adult population has a Bachelor degree or higher. That’s a cohort of more than 65 million adults. Higher income zip codes within those metros are primed for premium CPG introductions. These higher income, higher educated households are tuned-in to the evolutionary changes going on in modern dietary preferences. They are listening to your narrative.

  • In sum, you will grow in geographic areas where large numbers of people attach their lifestyle symbolism to your brand and spread it in their social circles. You should be on shelf in the banners where the shopper population is experientially primed to look for you.

Don’t forget to consider University towns for the same reason. These can be enthusiastic communities for bold, dietary alterations and innovations. Young adults especially are early adopters and influential in making new dietary shifts.

Here is the premium CPG innovation recipe for success assuming the product design fits squarely in the frequent consumption arena.

  • Build visibility, awareness and discoverability in the right stores in the right zip codes.
  • Increase local household penetration.
  • Increase consumption rates among early-in users by adding consumption occasions.

If you have these challenges and strategic questions as you plan your innovations and launch strategies, use this link to start a conversation with us. We can help you create a roadmap to success and the brand narrative well told to go with it. We are new product launch specialists.


Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Niche community marketing

The Niche-ification of Brand and Retail Marketing is Here

August 31st, 2021 Posted by brand advocacy, Brand Design, brand marketing, brand messaging, Brand preference, brand strategy, Category Design, CMO, consumer behavior, Consumer insight, Customer Journey Map, Differentiation, Emotional relevance, Food Trend, Higher Purpose, Insight, Social proof, storytelling, Strategic Planning 0 comments on “The Niche-ification of Brand and Retail Marketing is Here”

Internet enables strategic shift to networks of influence

Forever and a day, brand and retail marketing centered on identifying key user targets, parsing user cohorts and unearthing insights to define their respective habits, preferences, passions, interests and behaviors. The goal – to refine brand relevance; make media decisions based on their demographics and psychographics; and craft creative messaging to reach these individuals.

But the world has changed (again) and now the path to consumer engagement must be calculated in the context of how and where people participate in communities that help them filter, read, decide and buy.

More than at any other time in modern marketing, products are more susceptible to trends than individual preferences. What do we now know? People are social creatures. The digital world we all live in enables and caters to their collective passions whether that be health and wellness, cooking creativity, love of wine and spirits, fashionable-ness or nurturing a pet-oriented lifestyle.

Communities form and prosper around shared interests.

The wisdom of a curated community

Neuroscience now helps us understand that behaviors are impacted by trends and popularity in user communities. People see community recognition and acceptance as validation that a product or a TV show must be good because ‘everybody’ is using or watching it. Call it fear of missing out or confidence in community consensus.

  • Old way of thinking: to scale your business go wide, cast a broad net and employ mass media as much as possible.
  • New way of thinking: look for networks of influence and go narrow to micro-communities that cater to niche tastes and shared values.

The Internet has operated as an endless digital enabler of nichemanship. Yet many brands remain wed to strategies focused on individuals and amassing eyeballs more so than immersion into the smaller communities where people participate and ‘belong.’

Questions you should be asking

In which communities do your users belong and participate?

Who are the sources of influence and prominent voices in that network?

What trends and interests are actively supported in the community?

How can you best enable users to contribute to the community?

It’s important to take note of shared tastes and values in these settings and to employ that insight in your messaging and outreach strategies.

What are your customers’ embedded interests? What issues, activities, hobbies do they care about and invest their time? If users have a specific interest area that lights their fire, chances are they belong to a community that focuses on it. People participate in influence networks that inform and feed their passions.

Look for the ‘religion’

Some might agree love of whiskey is a religion. There are beliefs and values associated with distilling traditions, still design, ingredients, casks and aging. There’s unique nomenclature and perceptions of what constitutes a good, better or best product. There are lifestyle associations, groups, communities, events and narrowcast media. There are also expert voices and sources of influence on what matters and new developments in product innovation.

For a brand there is more to be gained by studying the networks of influence than blind devotion to detailed persona descriptions of individual whiskey heavy users. Trends can drive leaps in market share, so it’s important to operate as a disciple in the community, embrace the religion of shared beliefs and identify the influence networks within them.

This concept of category religion can be applied in any number of high-engagement businesses where a fan base of ambassadors and evangelists reside.

The role of experts in outreach

Building credibility and trust are paramount these days. Deployment of subject matter experts, be they credentialed or citizen, matters greatly in verifying trends and authenticating community beliefs. When the brand sees its role as enabler, coach and guide to its users rather than product seller, deploying expert engagement in social channels can feed participation, conversation and sharing.

The foundation: your brand Higher Purpose

It is easier to anchor marketing in communities of shared values and beliefs when the brand ‘soul’ is well developed around a purpose that transcends commerce and self-promotion. If you want people to join your community as believers, then you have to give them something in which to believe.

Sadly more often than not, the brand’s ability to position itself in influence networks and community is diluted by operating in the ’three miles wide and a half inch deep‘ mode of transactional behavior. Purpose imbues your brand with a more meaningful voice and greater resonance because the community sees you are wearing your values like a well-tailored suit. 

Hard work ahead

Identifying and understanding networks of influence requires more study and asking different questions during insight research.  Conversation within these communities based on trends and values will help build brand relevance and value among those who care the most. Those are your best customers who over time will deliver greater volume and profit than the less loyal, less engaged users who come and go on deal.

If you think fresh thinking and guidance on influence strategies would benefit your marketing plans, use this link to start an informal conversation

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Losing brand relevance when the consumer evolves

Can a brand remain successful while at odds with its users?

August 3rd, 2021 Posted by Brand Design, brand marketing, Brand preference, brand strategy, change, Culinary inspiration, Culinary lifestyle, Customer Experience, Differentiation, Emotional relevance, food experiences, Food Trend, Healthy lifestyle, Healthy Living, Higher Purpose, Insight, storytelling, Strategic Planning, Transformation 0 comments on “Can a brand remain successful while at odds with its users?”

What happens when the consumer moves on and the brand doesn’t.

The pace of change these days is unsettlingly quick. Pandemic-authored forms of disruption have come hard and fast, supplemented by equally measured swings in consumer behavior, priorities and preferences. The world around us is evolving. Needs are changing. Attitudes and interests are getting a makeover. The pace of marketplace shifts is accelerating.

  • We’ve entered an entirely new era of marketing challenges where consumers move more quickly than brands. This creates fractures in relevance and perceived value as businesses remain anchored to a legacy business model or said more simply, “how we’ve always done it.’

When the consumer’s wants and needs move to another location on the relevance chess board and the brand doesn’t move with them, what happens when the business suddenly finds itself at odds with its user base?

Changes now upon us –

  • Modern food culture has gained new levels of sophistication.
  • What food is and where it comes from is headed towards a bioengineered future.
  • Health and wellness needs are now dominant preference considerations.
  • Sustainability concerns have morphed to focus on climate impacts.
  • Shopping patterns and behaviors are now linked to extraordinary experiences.
  • Safety and security are simmering underneath a cauldron of uncertainty.
  • Brand trust deficits compound while also multiplying perceived risks on the path to purchase.

Challenges that result –

  • Your product portfolio hasn’t advanced to match the consumer’s evolving quality definition and expectation.
  • You’re not looking hard enough at innovation driven by climate outcomes and requiring advanced bioengineering.
  • Your products are not fully in sync with health and wellness lifestyle goals.
  • You are still narrowly focused on clean energy as the platform for sustainability solutions.
  • There’s nothing remarkable and entertaining about shopping your store.
  • You haven’t answered the bellwether safety and security issues swaying your users.
  • You haven’t placed trust creation at the core of your strategic marketing plan.

New brands are stepping into the gap

Where there’s a lingering need, others will step in to fulfill it. The world is ripe for entrepreneurs who wish to serve these evolving needs creating a business environment founded on new definitions of what scale is; value propositions that re-write the rule book on average cost of goods; and what people will pay for entirely new and higher standards of quality. Brand narratives are moving to focus on purpose and values while historic brand stories remain tethered to feature/benefit selling.

When people change, if you don’t change with them, you’re in trouble.

This summer I attended a backyard community barbecue where the entire menu was a trip into Korean culinary culture. It was mesmerizingly good, a welcome departure from hot dogs and burgers, and an eyeopener on flavor interplay between sweet (sauce) and sour (kimchi). The novel ingredients were off the charts delicious and created a learning moment.

The lesson: once people have experiences that alter their world order and concept of what’s important, tastes good or matters to their sense of values and beliefs, it’s nearly impossible to go back to the old behavioral patterns.

Food culture refinement is fueling change

You just know expectations on what great food is like are shifting when more sophisticated menus and unique global taste experiences start showing up at the corner neighborhood bar – gastropubs are getting Michelin stars!! We are awash in cooking competitions, chef authored packaged artisanal foods, fancy meal kits, and preoccupation with fresh local food ingredients that require preparation skills.

As people acquire knowledge and experience, perceptions shift. The lowly Brussel sprout, and veggies generally, enjoy a renaissance as cheffy preparations take this mini-cabbage (same species of plant – the brassica oleracea) sulphur bomb to new heights of flavor transformation with cured meat and high temp roasting to caramelize the leafy exterior. Cooking techniques magically alter a one-time musty vegetal eating experience with deeper umami flavors.  

The American palate is maturing alongside growing enthusiasm for more complex and layered food preparations and menus. Are food brands right there with them helping share the future of food, or mired in a legacy infrastructure of ultra-processed preparations that lean too heavily on fat, sugar and sodium to drive their appeal?

While popping open a bag of potato chips is still a common snack time ritual, people making their own chips from scratch isn’t out of the realm of possibility either. Food culture in America is rapidly evolving with raised expectations for tastes, flavor profiles and gustatory adventures.

When food experience is driven by ingredients

The basic legacy concept behind packaged food solutions is convenience, an effort to reduce or remove preparation from the equation. But what happens when millions of consumers get a taste of the very flavor layering techniques that make chefs the culinary superstars that they are? Lockdowns helped push people to their stoves. It’s hard to go back to standard boxed mac and cheese when you’ve enjoyed the outcome of informed cooking mixing a béchamel sauce with aged gouda and lardons to envelop an elbow noodle in indulgent magic.

It’s even harder to dismiss these developments when observing 12-year-old kids on FoodTV’s “Chopped Junior” show whip out a wine reduction sauce for pan roasted halibut in under five minutes? Suddenly an otherwise neutral, bland tasting fish rises to a new position in flavor town at the hands of a tween. Does this not signal a change in how we see food ideas, expectations on preparations, romance around the possibilities of better food experiences?

Ingredients take center stage in menus. Packaged products with reimagined ingredients not slavishly tied to what’s cheapest have this incredible competitive advantage of being able to tell their product creation story proudly. This is happening at a time when that’s exactly the kind of behind-the-curtain tale consumers want to know.

How to disrupt yourself

One sure-fire way to guide innovation, restaging, re-purposing and reimagining what your brand is on earth to accomplish – is putting the consumer at the center of your strategic planning and product development strategies.

  • This is harder to do than it sounds because businesses often reflexively sit in service of their legacy brick and mortar infrastructure, supply chain traditions and sensibilities around average retail pricing.

When the consumer is willing to pay more for demonstrable upgrades in quality, where is that coming from? It is the very knowledge they’ve acquired through elevated food experiences where they learn about the relationship between better ingredients and better taste – and often healthier food outcomes to boot. The added spend equals sufficient added value.

Every food and beverage brand should be led by food culture anthropologists, scanning for the sea changes at a time when shifts are occurring more rapidly. We’ve reached a point where the consumer will inevitably move on while the brand plays catch-up or suffers relevance declines.

  • When values change and the consumer wants unique, customized higher quality food experiences, you don’t want to find yourself at odds where you end up fighting them to stay put. Sure enough, a new brand will hit the radar to answer their call for quality innovation.

If you want to stay ahead of developing trends, be sure to register here for the Emerging Trends Report. If you’d like to discuss how your brand and business might evolve to stay ahead of food culture changes, use this link to say hello and invite an informal conversation!

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Bob Wheatley is the CEO of Chicago-based Emergent, The Healthy Living Agency. Traditional brand marketing often sidesteps more human qualities that can help consumers form an emotional bond. Yet brands yearn for authentic engagement, trust and a lasting relationship with their customers. Emergent helps brands erase ineffective self-promotion and replace it with clarity, honesty and deeper meaning in their customer relationships and communication. For more information, contact [email protected] and follow on Twitter @BobWheatley.

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