Welcome to dangers of the Replacement Economy

Dear readers,

Our last post, “Your Brand’s Soul is the Engine of Competitive Advantage”was happily the most popular Emerging Trends Report’s article we’ve published in more than a decade of covering marketing, emerging trends and communications best practices. Perhaps the topic resonated because it is such a lynchpin to sustainable business growth, yet so often a neglected and under-developed foundation within the strategic brand-building toolkit.

Today, we continue that story by turning the page to speak to retail brands about an enormous shift in the retail landscape that creates tension, subtraction and balance sheet challenges. Much of our narrative hangs on a rethinking of how retail businesses should strategically curate their operations. This insight entails a liberal dose of soul surrounding the heart of how retailers create and deploy the shopping environment and fulfill their retail brand mission.

What’s also at stake here for CPG brands is a tangible concern. These retail houses of distribution can help you synergistically tell your story or they may end up being complicit in furthering commoditization conditions that every business wrestles with every day. Thus, it’s vital we take this up as an extension of what we started on the merits of brand soul investment.

A change in the retail universe that prompts re-evaluation, re-stage and new strategy

What happens when literally everything you consume can be had (or replaced) efficiently and cost-effectively without ever visiting a store? The historic retail paradigm of location, convenience, assortment and price dilutes alongside the ease and economy of the endless, digital shelf.

If we’re being painfully honest, I think we can agree the ever-widening, transformational impact of this business challenge is not surprising since so many retail channels demonstrate a woeful absence of sufficient surprise and delight.

You can usually assess what a retailer’s business model and strategy consists of just by observing how people behave when they enter. Are they happy, hovering, lingering and investigating? Or are they in a hurry to find whatever is on their list and get out. For the most part, you will see people moving quickly and with purpose to hit their needs and leave. That’s not just “pressed for time” happening – it’s also due to an absence of magic, emotion, joy and adventure (dare we say authentic soul) once inside the front door.

Let’s start with what people really want

Consumers look to brands and retailers to provide ideas, inspiration and solutions about how to live better and achieve their dreams. They yearn for deeper meaning while residing in a world that’s losing its grip on purpose and values. This is far beyond just the array of products you shelve. Yet most retailers believe they are in the stocking and selling business.

What’s more, for the most coveted consumers who are highly active in a consumption domain, these ‘heavy users’ are highly likely to fuss over and chase very high standards of experience and meaning-seeking. Are they being properly served?

Shoppers who are highly involved brand fans and self-identified experts can be found in many product and lifestyle categories, including:

Food

Wine

Pets

Dating

Travel

Outdoor

Cars

Fashion

Cosmetics

But what do they really get when shopping a retail footprint? The typical store environment is in danger of becoming a well-lit inventory “warehouse” – one that serves as a category specific shelfing farm only to facilitate quick selection and fast transactions. Take note, this sounds eerily close to a misguided and losing chase of e-commerce strengths.

• We wonder, does a focus on omni-channel strategy in some way create an excuse for allowing the brick-and-mortar shopping experience to wallow in mediocrity because more curated online buying options are being served?

Too often, conventional retail is designed to stock, display inventory and transact sales. What if instead you created an experience so enjoyable and rewarding that people wanted to stay, explore and engage?

When anything and everything can be had at a click, the concept of sustainable retail strategy needs a refreshed higher purpose in response. The future of retail in today’s commodified transactional environment will hinge on infusing the shopping environment with –

Meaning

Mission

Socializing

Adventure

Discovery

Leisure

Belonging

In honest self-assessment, does your retail experience offer functional access to an inventory of products arrayed in aisles and cases, or are you working to build a small universe that transports people to a new place, time, scene, memory and experience?

Movie makers are masters of carrying us to an immersive experience. Borrowing a chapter from the art and craft of movie-making – can you design “dream districts” through creating and orchestrating a scene:

• Williams Sonoma as a Napa Valley kitchen with winery culinary experience esthetic
• Bass Pro Shop as an homage to outdoor lifestyle imagery at every turn
• Trader Joe’s manifests their “scours the earth” promise for unique food experiences
• Kiehl’s as an old-time apothecary shoppe
• Eataly as an Italian farmers market
• Costco, “It costs us a lot of money to look this cheap” – for purposeful warehouse-ness

The big question organizations need to decide up front is whether they want to pursue incremental tweaks to their brand experience that are copyable, nonproprietary, and unsustainable. Or do they have the confidence to swing for the fences and pursue a game-changing innovation maneuver?

Please know the brand equity and purpose process is never finished. Instead, it requires constant upkeep, evaluation, and vigilance to maintain and manage, lest it fall out of sync with changing cultural conditions which is increasingly epidemic as shopping behavior evolves around us.

Retail presents a living, breathing opportunity for storytelling in a space

If the business mindset is preoccupied with traffic, velocity and transactions, you may end up passing right by the humanity that’s walking the aisles. People innately resonate to art, creativity, emotion, visuals, imagery and sense of place.

A retail environment can be constructed to serve as a canvas for story. The living, breathing embodiment of an experience they will remember and seek out. When does a grocery store become a haven of culinary adventure? Can a pet store celebrate the endearing bond and collaborative life with four-legged family members? Is it possible for a restaurant to serve more than a menu and become a salon of social discourse and food learning?

Or we can relax while believing a popular offer of ”buy one get one” for a bag of chips constitutes sustainable volume advantage and call it a day?

Designing a story is the starting place

When you focus on the person you wish to serve and use that as a guidepost, relevant creative ideas and options begin to flow. Story platforms can help inform your thinking about the experience you wish to create inside your front door.

“Welcome to the world of manifested dreams…” says Karma and Luck Las Vegas

My wife Kristen is a spiritual person. She happens to love jewelry that is grounded in a deeper purpose and mission. Kristen recently discovered her retail muse on a trip to Las Vegas. Karma and Luck describes itself as a “partner on the journey to lead a more meaningful life.” She characterized the store shopping experience as a trip to Bali, immersive and Zen-like.

They don’t just sell jewelry, they offer a story and promise of higher value well beyond the attractively designed yet affordable bracelets, necklaces and other pieces – all of which have carefully curated narratives attached to them that store sales staff generously share with guests. When she selected items for purchase, her knowledgeable guide took her to the center of the store and placed the products inside a Sound Bowl where a brief ceremony “cleansed the jewelry of any negative energy” while imbuing her purchase with – yes, Karma and Luck. This was not a transactional retail environment.

Her visit was a transformational shopping adventure. No surprise, she is retelling this story to all of her friends, while helping me understand this is now her go-to for gifts. Start with the story, think more deeply about the customer you wish to serve and go from there. Importantly, the Karma store design, ambiance, music, scent, and elegant product packaging serves as mechanisms to reinforce their authentic higher purpose.

To start, here are eight story themes relate-able to the human journey:

1. Interest in belonging to a community of like-minded people with shared values
2. Deep need to love and be loved
3. Desire for greater meaning, purpose and sense of mission
4. ​Drive to nurture, enjoy and protect family life ​
5. Pursuit of fun, laughter, adventure and entertainment
6. ​Requirement for affirmation and validation of status, wealth, and prestige ​
7. Love and appreciation of art, esthetics, great design and beauty
8. Intention to lead healthy, fulfilling, enjoyable, long lives

Do you see the possibilities of story strategy underneath your retail experience? We can help you design a powerful narrative that takes your brand miles ahead of simply being an inventory stocking depot. Use the link below to start an informal conversation about your brand’s future.

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Why is it evaporating in CPG and retail brand building?

Your customers want to be part of a brand world and ecosystem you construct through conscious cultivation of your brand’s deeper meaning, higher purpose, convictions and expressed values. Never before have CPG and retail brands had this extraordinary opportunity to build such close and endearing user relationships because our culture — and consumer behavior with it — has permanently changed. Yet far too many organizations struggle with this, or ignore it, because they have inadvertently lost, diluted or forgotten their own soul. Yes, brands indeed have a soul.

• In the absence of a clearly wrought and codified “brand constitution,” too many compromises amidst the battles of year-to-year commerce and the inevitable maturation of category rules and conventions, work to chip away at this essential brand foundation.

In the go-go 80’s and early 90’s prior to arrival of the Internet and the power transfer from corporations to consumers, much of the dialogue in brand building had a distinct military flavor to it, with brands seeking to dominate their categories, erect barriers to entry and defend their territory through command-and-control tactics. Vestiges of this thinking still remain, despite the evidence that consumer-to-brand relationship creation has transformed. In this milieu, too often the disciplines of soul nurturing are circumvented by surface level attempts to bolt on shiny imagery and applied marketing lipstick that glosses over a baked in priority for commerce metrics and transactional behaviors over consumer-relevant strategic thinking.

Building, codifying, prioritizing and delivering on the levers of brand soul are indeed vital and essential to sustainable growth in the modern consumer-powered era. People are far more interested in and attracted to your “why” (values, purpose, beliefs) than either what you do or how you do it — no matter how enamored you may be of your superior product mouse trap.

How a brand’s soul gets buried

As virtually every business category grows and matures, an implicit set of rules and boundaries begin to arise, informed by consumer and retail customer expectations, competitive actions, regulatory requirements and industry standards of conduct. These conditions tend to push all category participants towards the middle resulting in comparable product offerings, features, benefits and pricing. Over time this includes growing similarity in business practices, supply chain standards and even manufacturing processes.

The not-to-be-taken-lightly threat that incubates in this environment is the ceaseless, endless and rust-advancing march of commoditization. The condition that compels category players to emphasize scale over other considerations as they pursue efficiency gains, enforce retail leverage and bolster thinning margins.

Commoditization has already taken root in cell phones, computers, hotels, airlines, cars and many food and beverage categories – and in doing so, opportunities for innovative, soul-inspired disruptors are unleashed to move in and gain marketplace traction.

In sum, over time…

1. Meaningful differentiation can dissipate
2. Marketing leverage based on budget tonnage in spending eventually starts to post diminishing returns
3. Brand soul and purpose recedes into the background amidst commoditization pressures
4. Increasing similarity rules the day among category participants
5. Businesses begin to focus on price promotion to achieve volume goals

Whole Foods was once a champion of purpose and meaning, its business model informed by advancing the organic movement, education around same and the firm belief foods produced this way ultimately contribute to the improved health, wellbeing and happiness of people and the environment. Since its acquisition by Amazon the belief system has receded, and in its place traditional supermarket merchandising mechanisms like PRIME promotions are driving the brand story.

Meaning and values were at one time the insulation and inoculation for Whole Foods’ higher pricing and the value proposition underneath it. Now the banner faces more competition and pricing pressures because the belief system is no longer the tip of the brand spear. Further the adoption of organic brands and sections within mainstream supermarkets serves to commodify the uniqueness of Whole Foods’ differentiation and so the advantages of its original specialness atrophies.

• Soul is the engine that drives brand separation and elevation with consumers who actively pursue and are attracted to deeper meaning and values-leaning strategies.

Symbols can tell the tale

Consumers are remarkably adept at reading the room. We immediately understand the cues, signals, icons and images that explain what and who we’re dealing with, where we are, how to behave and what to expect from a brand.

• What signals is your brand transmitting?
• Are you sending the right message?
• Do your values come through in the symbolism you generously (or not) display through every point of consumer contact?

Brands informed by their soul are always focused on fulfilling consumer need, dreams, expectations, desires and growth. They are also unafraid to express views on societal issues that consumers care about such as sustainability, environmental responsibility and the wellbeing of disadvantaged people.

Soul signals and consumer-centricity

Brand soul and higher purpose tends to fall from a deep understanding and preoccupation with supporting consumers on their life journey. This manifests from genuine care and consideration for their welfare and personal growth while also helping people realize their hopes and dreams.

It is in those dreams and aspirations that we find an emotional anchor for storytelling that moves people to embrace and join your brand ecosystem. Every human, every day wishes for progress and improvement. Are you actively helping them on their journey to grow?

From:

Unhealthy to healthy

Good to great

Weak to strong

Lonely to popular

Confused to wise

Invisible to recognized

Novice to expert

Poor to secure

Plain to fashionable

Make no mistake, to be human is to be emotional. However, brands without a soul-led code of conduct tend to talk endlessly about themselves and product features rather than enablement and celebration of consumer passions. In doing so the brand story is likely to be fact-dense and analytical, despite the reems of research confirming people won’t burn the mental calories to decipher that kind of messaging. People simply are just not fact-based, analytical decision-making machines.

How do you know if you’re succeeding? When consumers can state with clarity what your brand stands for, its meaning and purpose.

A powerful tool at your disposal: surprise and delight

Do the unexpected. In his book Unreasonable Hospitality, restaurateur and author Will Guidara tells the tale of a table of New York City visitors who were overheard saying they were disappointed that the following day they were leaving the city without ever having sampled a hot dog from one of the many carts that line the streets of Manhattan.

Mind you his restaurant, Eleven Madison Park, is one of the finest, most elite culinary palaces in New York. His team sprang into action sending a runner to track down hot dogs at a cart. They were ferried back to the kitchen where the chef arranged an artful hot dog presentation. The diners were blown away that the restaurant would do this without a word ever being spoken to staff about their hot dog curiosity. It was the restaurant’s soulful belief in unreasonable hospitality that brought the surprise to life.

Have you ever been to Harrod’s department store in London? If so, have you shopped in their over-the-top food hall? Harrod’s isn’t a supermarket mind you but thy indeed sell fresh and packaged foods. Their fresh fish displays are legendary for their artistry and creative arrangement of fresh fish choices.

Of course, any grocery store with vision and applied talent could do the same thing, with the goal of making their store talked about and Instagram worthy. Yet nothing of the sort happens past the layers of crushed ice surrounding rows of whatever fish is on feature.

Surprise and delight are a choice. It is a strategy. It recognizes the very human preference for artistry and empathy.  Stores and brands with a clearly curated and developed soul are more likely to find this path and exploit it than those that don’t and who are more comfortable staying within the category accepted norms of behavior.

• When you’re willing to be a disruptive player you have a chance to alter the paradigm of what consumers think you are about and engineer a new and more engaging perception of your brand.

If this article has you thinking about how this could be brought to life in your business, it’s important to note you will need outside experts to help you work through the right mix of tools and messages. Use the link below to start a conversation with our team of brand soul experts.

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Now more than ever, brand storytelling is the link to engagement

It is our mission at Emergent to continuously study the evolving dynamics of influence on the consumer journey to purchase. No surprise, we are doing business in revolutionary times. To wit, advances in AI technology will permanently alter the future of brand communication and how consumers operate when buying. Meantime, another behavior shift has arrived ahead of the trust challenges AI will inevitably create. Below we bring you the details.

Since the dawn of modern retail shopping, people have invariably looked for guidance from trusted sources as they seek to make what they believe to be less risky purchase decisions (people always work to avoid a bad decision/experience).

Below are two more recent areas of influence on consumer behavior. Then ahead we see a third pathway that is currently dialing up.

1. 10 years ago, we started looking to credible third parties

We trusted those perceived to be credentialed experts from academic, scientific and reputational influence backgrounds who brought their educated assessment of what constitutes the state of the art in any given category.

2. Five years ago, this evolved to a focus on belief in peers

With digital apps came crowd sourcing and social community “proof” at our fingertips. We experience this through sites such as Facebook, Yelp, TripAdvisors, Goodreads, TikTok, LinkedIn and Instagram that aggregate the views and experiences of our peers. We trust fellow citizens to verify and validate the assertions and claims made by brands.

3. Next, public trust failures have led consumers to turn inward for guidance

We are on the cusp of another evolution in buying behavior. People are looking inside themselves – relying on their intuition, inner wisdom and ‘gut feel’ about brands and businesses. This felt-to-be-true knowledge springs from an implicit understanding that originates in the subconscious. In essence, consumers land on a sense of what feels right to them. They trust these feelings to provide guidance and confidence for their decisions. Pundits in the brand strategy world are referring to this new school of thinking as Noetic Intelligence.

What does this mean for brands when consumers turn to intuition for trusted guidance? Your response should be to refocus on what people are feeling in the presence of your brand. Translating that into best practices means dialing up stories that amplify values, beliefs, deeper meaning and emotion to hit the right subliminal chords.

Storytelling is the most potent, engaging, strategically-differentiating form of communication available to businesses and brands.

By definition, this is a unique and more emotive approach focused on a different and more lifestyle relevant set of topics than pushing product features, benefits or reciting factoids and reports to support a new technology or innovation achievement. Specifically:

• What is your brand higher purpose?
• What do you believe in?
• What is your opinion on substantive issues impacting the world around us?
• How are you enabling a path for consumers to act upon their beliefs and values?
• What lies within the heart and soul of your brand’s value system?

Stories help people get involved with your brand and don’t present themselves like overt selling. Instead, storytelling cultivates interest and engagement, fueled by an increasingly easy ability to publish and distribute through social channels and other content platforms as narratives, videos and podcasts.

Stories can help build an emotional connection between brands and users, by enabling the humanization of brand conversations. This is how you secure rapt consumer attention.

• When I started in this business, we often bemoaned the challenges of controlling messages and lamented that our outreach existed only within media platforms owned and managed by third parties. Today brands can operate independently as publishers AND media channels. Yet some brands are hesitant to fully leverage this incredible controlled messaging capability to greatest effect.

All too often, brands remain tethered to product presentations rather than the context and belief afforded by stories. A pet food brand can self-promote its ingredient quality, nutritional philosophy, commitment to ethical sourcing and the like. Or the brand can bring forward stories of transformational change and impact their diets have on beloved pets whose lives were improved through better nutrition and the wellbeing that bestows. This blends with and imprints the positive lifestyle associations people desire with their furry family members.

Which is more compelling? The story of how a pet’s life has transformed from consuming a new diet. Or waxing on about nutritional panel ingredient integrity and high sourcing standards? It’s going to be the first approach every time. Human beings love stories. So why don’t we see more of it more often in marketing?

During the persuasion era of brand marketing, interruption-style media was deployed to circulate product feature communication constructed around entertainment or humor to bait the attention of its intended audience. Some of this marketing manipulation thinking still lingers today, despite our knowing consumers have the ability to avoid nearly all of it.

The story telling era has emerged to replace interruption and manipulation

Some of best examples of powerful storytelling can be found in books and movies that deftly use conflict, tension, struggle, and lead character redemption, ultimately leading to a favorable outcome as a blueprint for successful engagement. Yet many brands struggle with storytelling because it’s not a direct product hard sell. As if hard selling will continue as a bankable path to consumer engagement anyway?

Brand storytelling is at its most dynamic state when integrating:

Culture –

Culture governs shifts in preference, social relevance, priorities, meaning and even language. It is influential to behavior and so should be respected as a conditioning and context agent for brand stories.

Psychology –

Neuroscience proves how we work incessantly to avoid perceived risks. Our subconscious is the ruler over decisions and actions and so we use archetype development to help inform the tone, manner and character of brand messaging that resonates.

Emotion –

Humans are feeling creatures who think. We are not analytical, fact-driven decision-making machines. Emotion sits at the front door of how we behave and influences our opinions and judgments. It is fundamental to our actions and the decisions we make. It’s the emotional grist which makes the communication memorable by the way.

Today this approach manifests in a refined set of outbound tools including:

Content streams

Social communities

Installations and pop-ups

Real world and retail experiences

If you want to know more, ask questions or discuss Noetic Intelligence and its application to your business, use this link and let’s talk.

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Don’t play in someone else’s sandbox

What we’re about to discuss here is vital to brand marketing best practices and sustainable business results.

Most of the time brands and businesses focus their marketing on being better than X. When you are better than X your brand identity is linked to a competing brand. This is a trap. Being better is actually worse. Being different is better than better. Why? Because superior products often lose to brands that dare to be different.

When better silently runs the show, your storytelling is always focused on features and benefits. Some may even strive to be the best – which is really “better” dressed in a suit. Example of a “better” expression: “more” is a slippery slope to feature selling. More control. More perks. More of magic ingredient X. You’ll find hidden under every feature benefit message there is a “better” snare.

• It’s a misguided, if all too common, principle that inevitably focuses the conversation on competitive benchmarks and comparisons. It is an endless cycle that leaves real consumer traction and engagement unattended – because the story always makes the brand the hero and not the consumer.

Better brands are never about product features and benefits, and consumers no longer buy them anyway. That’s table stakes. Instead, people are attracted to deeper meaning, aligned values, higher purpose and are magnetically drawn to different. Your brand should offer a point of view, express opinions and bring a vision of the future.

Rule number one: in compelling brand storytelling the consumer must always be the hero of your narrative. Your brand should avoid competing with the consumer for the hero role. Every consumer, every day wakes up believing they are the hero of their life journey. Your brand’s proper messaging role is as coach, guide and empathetic enabler of their journey.

Stronger brands always focus on being unique, not better

Strategic brands say and do things differently

They hew a unique tone

They often carve a controversial path

They see the future through a different lens

They operate with a belief system

The belief is the benefit

Great brands are always founded on beliefs

You may think that users care about better. However, you just haven’t given them something greater to believe in. Shifting the story spotlight takes the glow off of your competitor – who incidentally really doesn’t matter to your future prospects and growth.

It isn’t easy to be different. It takes incredible discipline and the support of your leadership team not to fall back into feature/benefit selling. Strategic strength springs from a well-defined understanding of who you are as a brand and company, and what you want to become over time.

Following the path to different

Here are some examples of how you can embrace different in your strategic game plan.

1. Create a new category

Historically and traditionally skincare and make-up brands conveyed that beauty is always applied. It exists on the exterior as an aspirational expression of status seeking and attraction. More enlightened brands have arrived to flip the script by attaching a broader vision of what beauty is and how it manifests. Instead, real beauty comes from within.

Beauty evolves as a coalescing of better health, fitness, spiritual growth and is inclusive of different body types, ages and lifestyles. The brand voice morphs to focus on wellbeing, happiness and growth rather than the singular application of a product. This different view authors a unique voice that carries added relevance and value to its audience of believers in a more validating life view.

Category creation is the ultimate move to inject different into brand strategy and positioning.

2. Move from product utility to lifestyle association

All too often product communication is devoted to specific technologies, formulation superiority and benefits of same. The product and brand are always the authoritative voice. Instead, moving to a lifestyle brand strategy enables personal authority. Great lifestyle brands insert themselves into important moments and experiences sought after by users. These are often situations and memories that echo the brand’s deep belief system – it’s “why” rather than what or how.

Yeti is an iconic example of a brand enrobing itself in a cloak of lifestyle experiences that celebrate outdoor adventures and enable the freedom of the soul in nature. Yeti is not selling coolers and tumblers. It’s singular devotion to breathing life into the emotional experiences of lifestyle association endears itself to its audience of evangelists and ambassadors. Yeti’s deeper meaning separates and elevates it from other brands who offer similar products.

3. Change the story focus

Most brands talk up themselves incessantly. It’s always about who we are and what we do. There is self-reverence and promotion. All about me. Instead of revealing yourself to the customer, how about revealing the customer to themselves. Stop expressing who you are and start talking about the customer – their aspirations, interests and needs.

Most hotel brands focus on their properties to extol design, amenities, services, architecture and location. Here are our features. Frankly the entire conversation is nearly generic brand to brand and separated mostly by price class.

Along comes Airbnb to completely violate the rules and tropes of travel brand communication. Rather than say look at who we are, they flip the lens around to say I see who you are. It comes from a different view of what travel is and how it can be experienced. Belong Anywhere is a unique concept that makes the customer and user experience paramount. The brand becomes an enabler of a unique experience – a coach and guide on a different and more human way to experience travel and destinations.

4. Change the reality

Disruption can be a useful tool when it reorients what people take for granted. The goal is to help people find and accept a new reality. Everything we thought we knew about __________ is wrong. This is how to do it (understand it) right.

The emergence of sustainability strategies and a new understanding of the role our food system plays in climate change is a reality-changing condition. Most people don’t think of food as a contributor to global warming. A brand that steps fully into conscious consumption and the commitment to improving sustainability bona fides creates a game changing story for consumers – and potentially a transformational view of how food should be created.

Similarly, what we think we know about health, wellness and aging is ripe for a makeover. Creating a new reality is a road to difference, uniqueness and sought-after guidance. The new paradigm of belief positions your brand as arbiter of a new way of thinking, doing and believing.

Different is the Holy Grail, let’s look for it!

It is time to back away from being better or best to refocus your marketing and messaging energy on radical differentiation. Best practices in this area inevitably leads to refinement of brand belief systems and adding deeper meaning to who and what you are as a brand and business. Collectively, if you can do it and stick to it, your brand will benefit from a new era of transcendence and value to users who come to you for better and more lasting reasons than a product feature.

If this discussion stirs some thinking and questions in your mind, and you’d like to get those ideas on the table to ponder with some like-minded thinkers, let us know. We’d love to think with you about how this thinking can be applied to your brand and business. Here’s a link to start an informal conversation.

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Confronting the immutable truths ahead

This report is ultimately a call for renewal of purpose and commitment to sustainability policies, principles and behaviors that consumers are increasingly demanding. It is also a roadmap for alternative food technologies to regain momentum after a period of honest reassessment on the fundamentals of taste, nutritional composition, price and brand sustainability narrative.

Stay tuned for more guidance – but first a look at the current conflagration.

Two steps forward. One step back.

At the moment we are in the midst of a tug of war on sustainability commitments and performance. Despite mounting evidence of environmental trouble, some organizations over inflate their progress (greenwashing), while others green-hush by downplaying practices or abandoning them all together.

Progressive large food industry organizations like ADM and PepsiCo continue to lead the charge, working to secure improvements at the farm level. Others such as McDonald’s, who earlier addressed their ESG commitments head on have receded, horns pulling inward. Further some brands tempt a flame out on the path to redemption by intentionally hiding the ESG candle of achievement, preferring to operate in the dim shadows away from public or media attention.

We inquire: what’s going on here

We are confronted daily with the epic impacts of climate change. The situation is worsening. Evidence is all around us that carbon emissions and the resulting planet warming outcome is playing havoc with the balance of nature. Yet political considerations remain powerful deterrents to some organizations, apparently afraid of special interest criticism or concerned their current actions will be deemed subpar by climate watchdogs.

The fossil fuel industry tries to preserve the status quo by casting doubt on the efficacy of climate science. Some political groups snarl over “woke” capitalism even as our global “Rome” burns around us as violins play Emperor Nero style.

In a recent Fast Company article about current disinformation tactics taking aim at the plant-based meat industry, Sara Aniano, an analyst at the Anti-Defamation League’s Center on Extremism, was quoted stating, “Anything that strays from what’s deemed natural, primal, or masculine is automatically deemed dangerous. Innovative food products are seen as a dystopian consequence of leftist politics.”

Yet we know this July was officially the hottest on record for planet earth.

Our food system already represents nearly 24% of global greenhouse gas emissions, more than all transportation systems combined. Increasingly, people believe companies have an obligation to address and mitigate System 3 (GHG) emissions now rather than wait for any future regulatory mandate. Moreover, there are only 7 more harvests on the run-up to 2030 as we face the prospect of irreversible climate change impacts if emission reductions aren’t realized.

Meanwhile “fake it ‘til you make it” greenwashing gets harder to pull off as deep knowledge about credible sustainability best practices becomes more pervasive among media and consumers. No matter what, the in-parallel denier criticisms are getting more difficult to defend in the midst of real-world crisis after crisis related to climate change impacts that manifest in floods, droughts, hot oceans and wildfires. The reality of climate turmoil is at humanity’s proverbial front door now.

What comes first: the sustainability chicken or the egg?

Stated another way which must come first, actions taken by brands and business to mitigate environmental impacts? Or second, the universal acceptance of these remedies as normal, practical, required and sought after by every conceivable audience and constituency a business might encounter?

• Can you be a responsible sustainability transition plan implementer, and also present your organization publicly as a neutral Switzerland on the climate policy-making front?

No.

“One of the most important and challenging missions that I think one company could try to do, which is basically to replace animal farming as the primary source of protein production for humanity, is very much the reason why we started the company,” said Andre Menzes, CEO of alt. chicken protein company, Tindle Foods.

Despite Tindle’s enviable progress, why the current backslide for plant-based meat?

The media flourish over “plant-based meat for meat lovers” saw the Impossible and Beyond Meat businesses rapidly accelerate; both brands hoping to jump the normal new category creation arc and leap instantly into mainstream acceptance. This required attracting consumers who are more price sensitive, more demanding on taste and less “environmental issues” motivated at a time when inflation was running up the prices of groceries right and left.

Weaknesses in the brand story around the reality of “healthier” (sodium?) left the door open to  “highly processed” attacks that stole precedence over the earlier perceptions of meat-like eating experience. Hype machinery ground to halt when declining sales performance tarnished the golden meat-from-plants goose. Revenue for Beyond Meat plunged 30.5% in the second quarter this year, prompting CEO Ethan Brown to call (finally!!) for more education on their better-for-you improvements and sustainability bona fides.

So is plant-based a fading fad? Absolutely not. This is a blip as brands optimize and improve taste, the ultimate decider on marketplace traction alongside input cost management to finally reach pricing parity.

• Plant-based must win more fans.
• Precision fermentation deserves its protein game-changing shot.
• Cultivated meat will earn its time in the shining retail sun.

Why? We simply can’t continue to endlessly add more animals as the primary source of protein in our diets. Animal meat on the menu isn’t going away. However, the composition of our dietary decisions and choices should adjust. Improvements from new protein technologies that come at a fraction of the environmental impacts of conventional food creation deserve our support.

Still, it’s a noisy fickle environment right now…

Why are companies afraid to plant their sustainability flag in the sand?

Escalating impacts surround the planet begging for mitigation attention.

Consumers increasingly demand action from business to solve the sustainability crisis.

Plant-based takes a step back amid criticism of its formula composition bona fides.

(Heavy sigh)

Landing on the side of the angels

• What is the essential truth here? For one, our food system is an actor in the carbon emissions build-up. The impact of global warming is escalating, and you can see the tipping point on the horizon. Food technologies that answer the crisis with a fraction of conventional food system carbon impacts are coming but desperately need more investment to close the last mile to commercialization.

• Sustainability performance matters. Science-based LCA level analysis of carbon footprints should be happening everywhere because you can’t know where you’re going until you know where you are. Boulder, CO based Meati, with its novel mycelium-based meat products, is already in retail distribution with an eye-opener on replicating the eating experience of muscle meat cuts of chicken and beef. Their story is a sustainable solution.

• Brands that look to help address the food and beverage industry’s carbon footprint are operating on the side of the angels and should do so fearlessly knowing the consumer is going on the journey with them. We have little time to solve the industry’s climate impacts so special interests should put down the quill of complaint and take up the mantle of participating in advancing change, not resisting it.

Guidance in the months ahead

• Taste and price optimization are job one. It’s table stakes for growth.
• Investments in Sustainability education for consumers and stakeholders should get more energy and funding, right now.
• We have ample data and evidence that sustainability readiness commitments backed with consumer-facing outreach to inform stakeholders of this progress is a recipe for balance sheet benefits and marketplace competitive advantage.

Can we climb back on the horse of wisdom knowing these shifts are vital to keeping our planet safe, and to nourishing people affordably in the future?

Sustainability isn’t a hassle, it’s a business-building opportunity if we play our collective cards right.

Your brand can make a difference. Yes, sound strategy is needed. Linking sustainability expertise with marketing know-how is a loop that must be closed to gain business benefits from climate-responsible performance.

• Let’s renew our vows at the altar of sustainable best practices. Time is not on our side, and we have policy ground to cover in a relatively short span of time.

Can we agree change is needed and desirable? We have a responsibility here to protect the future for our families and many others coming in the decades ahead. We have designed the recipe for success. We need to implement and keep at it as we move from friction around the birth of new ideas to transformation while new behaviors take root.

If you believe further guidance and fresh thinking on the path to sustainability performance excellence is in order, use this link to ask questions or start an informal conversation. We’re here to help.

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

Deploying the biology of effective communication

For a brand message to have any real impact, to influence behavior and seed advocacy, it requires more than awareness and publicity. It must advance a relevant higher purpose, cause or belief system that people who share your values will immediately resonate to. Only then can your message create any lasting marketplace impact.

It is not the quality of your products that causes the category to tip your direction. Absent a refined brand WHY, new innovations and technologies will rapidly find themselves playing the circular and commoditizing price-and-feature game. Your competitive advantage gets real traction when you are crystal clear about the human-relevant purpose and mission you exist to champion.

An identifiable cohort of consumers exists who share your beliefs and then want to integrate your ideas and products into their own lives. It is their ability to understand and embrace your purpose, your WHY, that causes them to embrace your brand. They view what you make as a tangible path to reflect and demonstrate their purpose and beliefs to the world around them.

Beliefs are powerful and can be enlisted to change the trajectory of brand growth

It’s important to remember that “consumers” are first and foremost real, human three-dimensional people. As such, we are hardwired to gravitate toward people, places as well as things (products) that reinforce what we believe about the world and ourselves.

• Beliefs influence our behaviors and how we see ourselves
• Beliefs are emotional and rise from deep within us to inform decisions
• Beliefs run underneath our cognizant, analytical radar to impact our feelings and decisions
• Beliefs help people understand, connect and engage with your brand
• Beliefs are respectful of human biology and how we’re wired to take action (through feelings not facts)

Yet we find that belief systems are largely undernourished in business strategy because of a flawed assumption that a better mousetrap is the motivating tool that draws in consumers. Ultimately, products in any given category will be more similar than they are unique. Frankly, there isn’t any proprietary tech advantage that can be sustained over time without competitive dilution.

Instead, people are magnetically drawn to leader-type brands that communicate what they believe. This unique approach helps consumers feel safe and special – like they belong – and are inspired to align with the brand because the story and mission resonates so personally.

Future of food brands are often mission oriented

Emergent works with emerging food brands who are reinventing how food is created with a vastly improved sustainability story. To a one, the founders and leadership teams believe they exist to improve the health and wellbeing of people while measurably improving the impact of our current food system on global warming.

Their technologies are instrumental in changing the greenhouse gas paradigm. But that is not the reason they will be successful or that people will be drawn to their offering. It is the inspiration they provide to help enable consumers in exercising their conscious consumption wishes. To improve their wellbeing with healthier food choices and create a safer future for themselves and their families. These brands understand that taste, eating experience and proper price are all table stakes and not the real reason for marketplace success. Empowering consumers to experience ‘making a difference’ is the real brand elevator.

Thus, why conveying values, mission and purpose are so vital to success rather than relying on historic tactics that attempt to leverage features, lower price or the more subtle tactical manipulations of persuasion, fear, vanity, status, shame, peer pressure and social acceptance to close a sale.

One big example: we live in a nation founded on inspiration of a better future for people

In July of 1776 the world was forever changed with the emergence of the United States, the first-ever constitutional republic – a democracy ‘of and for the people’ – now at 247 years of age the oldest of its kind on earth. A new nation founded on ideals and principles that espoused freedom of speech and press, an elected representative government, the rule of law and a promise of a better future for people.

These ideals form the foundation of an inspired sense of opportunity and the expectation of an individual’s ability to pursue their own goals and aspirations. Despite the enormous flaws and inconsistencies that dogged the nation through a Civil War 84 years after its founding, the resilience wrapped in these beliefs and sense of purpose have stood the test of time.

America is one of the most powerful examples of “Why” culture and the influence of deeper meaning writ large. It is embedded in our American attitudes, thinking and distinctive behaviors. These principles and aspirations have spread around the world, yet most of these new democratic governments are less than 70 years old and still evolving.

• We have unique stories to tell about our nation’s founding
• Symbols abound about the American legacy of freedom
• It is inspirational to how we think and see our lives
• Our societal beliefs are founded on the concept of greater good

Yet for all of the evidence of how a nation founded on beliefs and values serves as an inspiration to a brighter future over time, and the power of values to impact attitudes and behavior – this POV hasn’t rubbed off as fully as it could on business and brand development thinking.

When brands become symbols of values and beliefs we hold close

Health, wellbeing, achievement, creative exploration, better relationships, education, love, serving others – there are so many places a brand can live to inspire users and improve their lives. It is in this moment of unselfish thinking that an environment of trust is created.

The process to explore and refine a brand’s “why” begins with consumer-centricity and works backward from there. It is formative insight into your customers’ interests, concerns and desires that informs a creative exploration around brand beliefs – which should reflect and mirror your users’ aspirations.

Emergent has developed a proprietary process for this evaluation we call Brand Sustainability Analysis – in this case the word sustainable refers not to environmental concerns directly but to sustainable brand growth over time.

The six primary components include:

• Core beliefs that are consumer centric and address how the brand contributes to improving users lives and the world around them.

• Based on those beliefs, Why the company exists, its core mission and higher purpose.

• How the company will fulfill its belief-driven higher purpose and mission.

• Therefore, What business the company is truly in and assets required to fulfill that promise based on the brand purpose.

• The company BrandStand that expresses the business’ true north and becomes an embedded guide for decisions on strategy, policy, employee policy and recruitment, innovation and marketing going forward.

• Implications of the BrandStand on company operations and marketing strategies.

If you agree that inspiration is a stronger path to influencing consumer decisions than passe’ tactical manipulation, and that an optimized purpose and mission – your why – can lead to brand advocacy and evangelism, then we should talk. Use this link to begin an informal get-acquainted conversation.

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