Novel protein likely to leap ahead of other emerging food tech…

It is time for the food and beverage industry to pay closer attention to an emerging food tech category that is highly likely to change the course of how food is created. It arrives at a time when our current food system is increasingly critiqued as an actor in the climate impact drama.

• At the end of this article, download our Emerging Companies to Watch list in this exciting evolutionary story.

The next great disruption in food creation

We are about to witness a wholesale transformation of where our food comes from and how it is produced – the first major sea change of its kind in 10,000 years since animals and plants were first domesticated. What’s at stake? No less than our planet’s health, impacted by decades of obscured mistreatment from an industrial food system that contributes roughly 24% of climate warming greenhouse gases – more than all types of fossil fuel powered transportation combined. For many this is a jolting discovery.

Dawn of the low carbon food system

Advances in bioengineering have served to refine a centuries old technology we know as fermentation. A familiar process used in some form for a millennium to brew beer, craft wine and create cheese and yogurt. This evolved tech is employing uniquely programmed microbes (micro) instead of animals (macro) to create high quality, healthy, great tasting proteins like meat, eggs and dairy.

The tech leap for food lovers: these new proteins are bioidentical to the animal version. That means virtually indistinguishable in taste and eating experience, while eliminating things people don’t want such as cholesterol, lactose and antibiotics. Moreover, they come to us at a fraction of the environmental emissions impact of livestock farming and its drastic over-consumption of limited water and land resources.

Precision fermentation may also work to leap over some of the shortcomings in plant-based products that retain a higher taste hill to climb because the proteins are not identical to what they’re trying to replicate. Their recipe goal is to mimic and simulate the flavor and mouthfeel of animal versions. They strive to do this by using plant-based ingredients and other food science wizardry to recreate textures, chew, even the bloody juice of a burger patty. The plant-based industry currently chases consumers who believe the eating experience may be close but is just not a full analog of what they expect from the meat and dairy products they crave.

Consumers are changing

Most of us grew up with deeply engrained, idealized and nostalgic beliefs about food. In its most authentic and revered form, it is always sourced from the soil or raised in a verdant pasture. For eons we’ve paid homage to an impression that real, nutritious food is an outcome of things we harvest on a family farm, delivered with as little adulteration as possible.

Moreover, in the past food science was often viewed skeptically as a precursor to over-processing and manipulating food ingredients – or creating not-in-nature versions of same in the laboratory. This reached its apex in the reduced calorie and fat wars of the 1990s where food science made addition by subtraction infamous via food engineering – sugar and fat removed and replaced with other artificial ingredients as glorified in the fat-free cake and donut craze.

Sense of urgency flipping the paradigm

The historic friction between science and nature is evolving now as consumers become aware of the relationship between industrial food production and climate change, its impact on scarce resources, the link to animal welfare issues and looming food scarcity challenges as world population accelerates.

People are coming around to see science as part of the solution, not a menace to be avoided. In a recent study by The Hartman Group on the future potential of precision fermentation technology, they describe the tech as a powerful advancement. Due in part to its familiarity with consumers, more so than cellular meat technologies that require a sophisticated and somewhat complicated explanation of how it works.

• Familiarity is important to adoption and trial because it feels less risky to people who are systemically driven to avoid risk in their food purchase decisions.

According to Hartman, millennials’ (born between 1981 and 1996) openness to the idea may comprise the ideal core “early adopter” audience for precision fermentation food products.

• 67% of millennials now believe science and technology may offer the best hope to address climate change.

• 62% agree science and tech innovations can help make food more sustainable.

• 62% believe foods made this way would be healthier.

In short, they believe this new approach to food creation may transcend the limitations and excesses of the current food system. In fact, Hartman states 84% of this cohort say they would be likely to purchase precision fermentation made products, and half would be willing to pay more for them.

Part of the comfort level (easier to grasp) consumers have with fermentation is its legacy use in beer, wine and cheesemaking. Additionally precision fermentation is already in our lives, used for decades to make insulin, vitamins, and the enzyme rennet that causes dairy milk to coagulate and separate into curds for cheesemaking.

The path to market for precision fermentation

Hartman’s research revealed that 50% of consumers are already looking for products that prioritize sustainability and animal welfare in how they’re created. Further when asked about what will influence their preferences and willingness to try these new foods, safety (60%) and taste (59%) scored almost equally as top priorities followed by healthy (53%).

The study showed the top three environmental benefits they expect from this emerging food category:

1. Reducing greenhouse gas – 38%
2. Minimizing other forms of pollution – 37%
3. Merchandized in sustainable packaging – 29%

Size of the prize

Hartman forecasts a potential market of 132 million consumers by 2027, with millennials most likely to replace all or most of current products with new precision fermentation versions.

The adoption curve follows a familiar path for new premium CPG food and beverage categories:

15% are ready to go

11% will be easily convinced

14% will be convinced with clear benefits

This falls in line with existing research and numerous case studies that confirm in any emerging premium CPG food business, approximately 14% of the addressable market will be early adopters – those less concerned with risk and more drawn to being first-in to try new products. Breaching the chasm between early adoption and mainstream acceptance is the marketing challenge of the ages and requires a carefully formulated strategy of validation, verification, channel management and calibrated expansion aimed at reaching the right audience segment at the right time in the right place.

Overly ambitious extensions too early into the wrong channels, retail locations or foodservice environments can set the business up for retrenchment when audiences less enthralled with the deep sustainability story and for whom price is king, may not be ready to push aside their habitual choices. Perceived risk is a hurdle that needs to be flattened.

Emergent marketing guidance

What will be required to nurture these new brands to fame and fortune? Education, education, education and more education.

How is it made?

Will it be safe to eat?

Will it taste good?

How is it better for the environment?

Will it be healthier for me?

Is it affordable relative to the product it will replace?

What about allergens?

The narrative should be built around what Hartman calls the “intersection of good for me and good for the planet.”

Food is an emotional category – we eat with our eyes, we respond to perceived deliciousness because we crave great taste experiences. We are drawn to the familiar. Thus, the language that’s used, the narrative story that’s created should avoid descriptions that are founded in scientific and technical lingo.

The experiences of respected voices in the culinary world, the outcome reports in social media from early adopters all coalesce to provide an eco-system of credible proof of satisfaction and value. This is NOT the time for old-school CPG claims and ad tropes that glorify self-promotion of features. This is your opportunity to employ new strategies founded in generating trust, belief and a heavy lean on values and deeper meaning.

• Your story focus is the consumer and their journey, and how these new products will help support planet health as well as personal wellbeing.

This may well be the most exciting adventure to arise in the food industry since homogenous audiences and mass media created a gigantic market for packaged food and beverage in the 1950s. Importantly, it also offers a viable solution to the planet crisis we’re in and a path to correct an unsustainable food system in a manner that will also help solve how we will affordably feed 10 billion souls by 2050.

If you’re interested in launching a conversation about strategies to nurture, grow and set these new brands up for success, use this link to start an informal conversation with us. If you’re interested in our take on the brands to watch and collaborate with as this story unfolds, use this link to download our Emerging Brands to Watch list.

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.

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.

Why Trust is the Engine that Drives Business Growth

“Trust takes years to earn, seconds to break and possibly forever to repair.”

Stephan Houraghan

Trust is fundamental to brand success, to sustainable business growth, to forging relationships with consumers, to any hope of genuine engagement. Yet trust creation often isn’t an articulated, strategic component of the business and marketing plan.

Yet when trust breaks out, it is transformational, even monumental in terms of its impact and ability to help lift the vitality of a brand over time. Why so? Truth be told, we confide in and share attention with people we trust. Similarly, we avoid people we believe to be inauthentic and untrustworthy. No surprise we apply the same rules to the buying decisions we make and preference for the brands – CPG or retail – that matter to us.

Home Depot – a study in retail trust creation

Video is a powerful, dynamic medium because it allows us to take the viewer on location, to tell stories through the dramatic experiences of real people, to bring authenticity and emotion to the message. Home Depot produced a remarkable 16-minute video documentary about the company’s encounters with disaster. As climate change impact unfolds, more and more of these events will transpire. Thus, in many ways Home Depot finds itself on the front lines of emergency response – an essential crisis caretaker for community residents, and also its own employees.

This video is a powerful, moving treatment about corporate higher purpose that by sheer number of events filmed reveals a deep soulful and unselfish commitment to the welfare of people impacted by devastating events. The narrative unfolds an unflinching willingness to show empathy and courage, with competence and effect, dealing with the aftermath of hurricanes, floods, wildfires, tornadoes, and disruption to family lives.

It is riveting. You can’t take your eyes off it.

This is trust creation in its finest hour; a moving panorama of personal testimony to how the company navigates the pain and wreckage of devastating events. It isn’t scripted or self-promotional. It demonstrates a corporate culture that is invested in improving, rescuing the lives of its customers and associates when its needed most.

Trust is a fundamental requirement for any brand-to-consumer relationship. Yet it cannot be invoked or claimed or endowed simply because a business has been around for a while. Trust and a reputation of trustworthiness must be earned, demonstrated in behaviors and practices.

Yet all-too often brands assume trust is  plentiful. As such, strategies to further cultivate or deepen trust are seldom overt components of business strategy. Given trust’s importance to brand loyalty and business growth, we believe it should be a top priority in 2023 – especially in the environment we find ourselves.

• Brand trust is at an all-time low, according to the Edelman Trust Barometer. Why? Because people are confronted daily with real-world examples of trust factures, unrepentant missteps, half-truths, lies by omission, dishonesty and overt efforts to deceive.

Here we will examine trust, how it operates and what can be done to build it.

What is brand trust?

It is a belief the brand will –

• Put my interests ahead of its own
• Continue to work to keep me happy, safe and satisfied
• Not look at the relationship as transactional
• Help me achieve my goals and aspirations
• Endeavor to make investments in the strength of our bond
• Remain resolutely, consistently honest and transparent

What are the essential elements that govern brands people trust?

• Competence
• Honesty
• Authority
• Integrity
• Values consistent with our own
• Humanity
• Empathy
• Advocacy
• Unselfishness

Home Depot anyone? Of note these are all very human characteristics that we expect from people we value and with whom we have trusted relationships.

How often do we see these characteristics manifested in ongoing business behaviors? Not often enough given the fragile state of brand trust today. Trust is absolutely a strategic asset and yet difficult to secure.

What are the benefits of actively building brand trust?

First and foremost, you gain permission for engagement and attention with a current or potential customer. People are busy these days and make conscious decisions with where they spend time and whether or how they open themselves up to any brand interaction.

Second, trust breeds loyalty and consistent repeat purchases. By virtue of the strength and belief in the relationship, missteps are quickly forgiven. Especially when the brand has the integrity to acknowledge mistakes and own any shortcomings.

Being a trusted brand is truly such a rare condition. Brands achieving this rarified air become home to advocates, ambassadors and evangelists who join the brand’s community as members rather than users. Think Patagonia, Google, Nike and Toyota.

The three characteristics of a trusted bran

1. Refined higher purpose

Higher purpose is a trust creating platform because it automatically imbues the brand with deeper meaning and values. It serves as an anchor for corporate culture and puts the welfare and wellbeing of people front and center in how decisions are made. It is a visible demonstration of commitment to goals and endeavors beyond the expected devotion to profit and transactions.

2. Super transparency

Consumers are relentlessly curious. They want verification and validation of what their favored brands assert and claim. Brands that invite consumers behind the curtain to reveal how products are made, where ingredients are sourced from, how the operation works in service of its stated priorities, provides hope and inspiration that honesty and disclosure are more than words in a press release.

3. Active social community

Community created content and conversations are present when companies do not try to over-regulate the narrative in their social channels. Instead, they actively encourage discourse and sharing of experiences. They are also quick to respond to issues and concerns as they arise, without defensiveness and in a human, conversational voice rather than “policy speak.” The voices of community members reinforce trustworthiness through credible validation of your promises. If your social content output is more promotional than conversational you are not leveraging the medium for trust building.

The trust building toolbox

You must strategically, intentionally work to position your brand as a source of useful, valuable guidance and enablement, not just a feature/benefit promoter.

The tools are straightforward – it’s the narrative and how the story is assembled that helps bring trust to life:

• Videos
• Tutorials
• E-books
• Webinars
• Newsletters
• Lifestyle Content posts
• On-site events and experiences

If you find yourself in agreement that trust creation should be a centerpiece of your efforts this year and would like fresh thinking on how to bring it to life, use this link to start a conversation. We are first and foremost, strategic brand storytellers.

Link to Home Depot video: https://www.youtube.com/watch?v=_cHs5UkVfxk&t=972s

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

How to harness the science of social transmission

“People do not buy goods or services, they buy relations, stories and magic.”

                                                                                                                                           – Seth Godin

• Today we will weigh in on vital tools and ideas that can vastly improve the outcome of your marketing investments.

• For the very reason these tools and ideas access what we know about how people share information and recommendations with each other.

If there is one important, recurring theme in the guidance we provide at the Emerging Trends Report, it is our respect for the consumer we are working mightily to reach and engage. Too often, marketing activity is focused slavishly on firing up the latest social platform or digital tool.  Preoccupation with algorithms wrongly assumes simple deployment of the tech guarantees engagement. Nope. It’s just not happening.

So many benefits can be gleaned and extracted through greater understanding and appreciation of human behavior – and how these insights can be deployed for profound impact on consumer engagement and successful outreach results. Buckle up. Here we go.

The painful lesson…

• Sorry, but most advertising just isn’t credible. If it walks, talks and behaves like traditional advertising – it is inherently untrustworthy to wary consumers.

• If anything, ads are predictable in form and function, signaling it’s time to tune out, move on. Repetition doesn’t help, it just intensifies the annoying interruptions.

• People increasingly refuse to tolerate advertising interruptions (hello streaming). Blatant brand self-promotion rarely resonates with consumers because the hero of the outreach is the brand focused on itself, not the consumer’s relevant journey.

It’s like that guy at the cocktail party who intrusively humble-brags about his career achievements. He cares little about his ‘audience’ beyond the attention he seeks. Meanwhile, we can’t wait to move on to something more interesting and maybe even useful.

What is actually sticky?

So much noise, so little time. How much of that messaging cacophony actually sticks with consumers?

Instead people are magically drawn to “remarkableness” – or what is:

Extraordinary

Novel

Exceptional

Unusual

Captivating,

Surprising

Helpful

Inspiring

When we build a marketing plan, we’re working to break the patterns of convention, disrupt the expected, violate the norm…why? When we’re able to get people to care, not only will they tune in to the message – they will share.

As marketers we work overtime to mint social currency around and within the product itself, how it is packaged and served up, the experiences we create and the stories we tell. This is ultimately showing appreciation for how and when people will transmit information to others.

Case in point: pressing the symbolism button

All purchases today are ultimately symbolic gestures; visible flags of what people want others to believe about their values, beliefs, priorities and status. How can we best employ symbols and markers of what consumers want others to see? What social currency flags can we help them visibly wave? To help them be…

In the know

Forward thinking

Sustainable

Successful

Caring

Informed

Resourceful

Exceptional

The desire for social resonance and approval is a fundamental human motivation. We can intentionally create ways for people to make themselves look good. We can help them feel like VIPs or insiders (exclusivity and scarcity). Everyone is a status seeker thus anything that elevates their position in front of others delivers social currency while creating talk value.

When people share extraordinary and entertaining stories it makes them appear to be extraordinary and entertaining.

The heart of it: emotion

Sustainability, global warming and climate threat represent compelling sources of competitive advantage and behavior change. Want people to do something about it? There’s a great temptation to point out how big the problem is and wallpaper messaging outreach with an unrelenting flow of statistics and factual evidence. When you want people to care about an issue, to weigh in, to do something, to share, emotion is going to be the primary lever.

Talk about how their children’s future, wellbeing, health and welfare could be impacted by runaway climate change. When you engage people in stories that hit home at the heart level – the most important human relationships we treasure for example, then we are engaging the subconscious side of the brain head on – the part of us that controls our actions.

Candidly, people don’t want to be told something. They want to be moved or entertained.

Observation delivers imitation

Social influence is enhanced when your product experience is more observable. Public visibility will boost talk value and sharing. Anything that is visible can engage the power of popularity and creates opportunities for imitation. If people can’t SEE what others are doing, they can’t imitate that behavior.

As marketers we’re looking for ways to take the product functionality or experience that is mostly unobservable and make it visible. That visibility will feed word of mouth. If it’s designed for show, it will likely grow.

Useful is powerful

People love to be helpful to others, to be a source of practical advice that improves experiences or makes life easier. When brands become enablers of guidance and coaching, another avenue is opened for social exchange. Simply put, people like to pass along useful tips, ideas and information to their peers. Creating a tellable tale around information of practical value is a sure path to contagious communication.

Look for ways to create news they can use.

Remarkable-ness will disrupt

If we hear the phrase “no frills airline” an image quickly begins to form of cramped seating, no food and the absence of any in-cabin entertainment. This bears out in reality as many “flying bus” experiences confirm the paradigm.

What happens when a discount carrier provides generous seating, good food options and in-flight entertainment – the shift immediately engages and disrupts the expectation. An opportunity to be remarkable is a game-changing moment that creates strong pathways to social exchange and transmission of extraordinary experiences.

How can you violate the standard rules of your category to deliver the exceptional and unexpected?

Activating the power of awe

When you see a breathtaking landscape, how do you feel? When you observe extraordinary human feats of daring, discovery or human kindness, it most likely moves you. Human inspiration is an endless treasure trove of share-able opportunities.

People desperately want to be part of something greater than themselves, to acquire purpose and value from being involved in a movement. The primary benefit of higher purpose marketing is the purpose itself.

Done with strategic thought and passion, we gain access to moments of wonder, excitement and strength. Awe is a powerful tool that triggers and motivates action. In short, engaging our sense of wonder is a sure path to share-able adventures.

Employing the magic of humanity

Frankly we could keep going because there are so many opportunities to take advantage of how people think and operate to jump over the stasis of self-centered, introspective marketing that fails to excite.

• The common ground in this thinking is how we turn consumers into walking, talking billboards because they’re driven to share what they’ve experienced or learned. We don’t do business in a world of classic persuasion any longer. Our ability to engage people occurs in direct proportion to how relevant we can make our communication to them, how they think, how they operate and live.

When this happens, magic happens – and that’s what people want.

If this stimulates interest on how the approach might apply to your brand and business, use this link to start an informal conversation. No expectations other than a robust conversation about people, how they behave, and your goals.

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

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.

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A massive leveling has commoditized advantages…

Once there was a time when world-class marketing, by definition, was expensive. Bigger brands enjoyed advantages by way of larger marketing and media budgets that smaller players just couldn’t muster. A price of entry existed for superior production values and more cinematic forms of storytelling.

Those barriers have disappeared. What do you do when anyone, anywhere can compete with you on the quality of communication? What happens when the budgetary obstacles to outreach evaporate and anyone from anywhere can distribute high quality, engaging content? What unfolds when the importance of reaching mass audiences served by mass (expensive) media vanish because markets have bifurcated into smaller tribes of consumers who elect and select the brands they care about “joining?”

Read on to understand the shift in competitive advantage and where to go when a bigger budget doesn’t necessarily author any marketplace leverage.

Seth Godin marked the change beautifully in a recent post:

“To make an album of music good enough to make it to the Top 40, it used to cost a million dollars. Now you can do it in your bedroom.

To make a commercial for network TV, a minute of footage cost about a million dollars…

And that same million was what it would cost to create an email engine for permission-based marketing in 1996.

And you needed a million dollars to build a website that could hold up under a lot of traffic, or to build a social media presence that would reach a million people.

All of these things are now incredibly cheap.”

Remarkably, many brands and businesses still operate as if these big wallet advantages exist – assuming the consumer marketplace will absorb their content before, above, beyond and more often than anyone else’s (as if repetition helps in an avoidance-enabled market). Just. Not. True.

A seed funded CPG food start-up or small footprint retailer is capable of producing a more impactful, useful and engaging web site than a large cap CPG brand or 1,000-door retail banner. Of note, capable is just that – there’s no inherent win from being small and new either. Same with video content. Same with social channel engagement. The entire competitive advantage paradigm has shifted from the few Goliaths to the many Davids.

What happens when technology and culture conflates the company size and budget advantages?

The big strategic question that must be factored into planning: what are the new rules of strategic advantage when everyone can compete with anyone?

• The stakes on uniqueness and differentiation are amped and marginal distinctions constitute nearly zero brand leverage.
• The requirement for deeper meaning, mission, higher purpose and values – your “why” – form the foundation of any strategic advantage. Based on our surveys, this foundation is more than likely under-served.
• Putting the consumer at the center of brand narrative and communication strategy is now table-stakes to any hope of engagement.
• The humanization of your brand proposition and marketplace behaviors is a prerequisite to achieving relevance and resonance.
• Your digital footprint must revolve around “romance” of the consumer’s lifestyle aspirations, needs and wants before any relationship can be successfully secured.
• Larger brands don’t own any advantages here. Smaller brands don’t get a hall pass for being “nimble” (no one owns speed) or conceptually more authentic because output looks raw and amateur-ish.

The requirement for trust is universal and bigger brands don’t inherit that quality

“We’ve been here for 40 years” does not mandate trust. Reciting reasons intended to convince people you’re trustworthy doesn’t work because trust is not achieved through data or facts.

Bigger may reduce the perceptions of any risk in purchase as a business moves to the late stages on the adoption curve. That said it can also be a slippery slope to irrelevance, too.

Importantly, any “risk” attached to what is new and innovative can be managed with the right trust-building strategies and performances.

Over the last few weeks, we’ve seen close-up exciting new product concepts and nuances of evolutionary innovation that could potentially disrupt existing food and beverage categories. Yet the truth of the matter – there are also emerging brand communication efforts that are neither emotionally resonant nor fully dialed into consumer relevance.

• We have ample proof that while a level playing field exists, guidance and sound strategy are needed no matter the size of the business from $1 million in trailing revenue to $1 billion.

The large brand paradox

Larger brands have greater challenges due to hide-bound traditions and inertia that moves against change.

“We’re too big to fail”

“We’ve always done it this way”

“Our growth is aligned with the category performance”

“We can’t (won’t) change the foundational aspects of what authored our original success”

“Wall Street won’t like it if we do anything radically different”

“We have significant costs sunk in our supply chain infrastructure”

“We already have high levels of brand recognition and awareness”

“What if we (read: I) fail”

Trust must be won daily. Brand equity dilution, decline and commoditization challenges are like laws of gravity and cannot be side-stepped. Ceding category territory to smaller creations may not feel like a contest initially because many leaders believe you can “buy” your way in. Yet we recognize that post-acquisition there will be risks of diluting the golden goose’s brand magic.

The new rules of engagement

Anyone, anywhere can outflank and beat well-funded competition on message relevance and quality communication. That means emotionally on-point, consumer-centric communication is fundamental no matter who you are, big or small.

• Higher purpose, mission and values are the foundational elements of trust creation and any player in a category is either served or hampered by this requirement.
• You have to get out of your own way.
• Size is not insulation and creates other significant challenges that operate in favor of reinvention and renewal – when change is often resisted.
• Disruption and differentiation are required when sameness is rampant everywhere and traditional category behaviors can dumb-down any perceived uniqueness.
• There are far too many bigger brands that lack humanity in how their story is packaged and presented.

The beauty of a level playing field

For larger brands, this means potential repositioning and savings on the marketing budget line because throwing “money at it” doesn’t really get you there. This forces the importance of innovation, relevance, meaning and values that are the hallmarks of competitive advantage in the relationship economy era.

For smaller brands, you are not at an automatic disadvantage based on size. You can compete. Effectively. However, the requirement for world-class storytelling and engagement strategies remains as the price of entry. Are you prepared for it?

In the famous Pixar movie about a culinary genius rat named Ratatouille, we learn the story arc’s basic premise, “anyone can cook” – provided the right inspiration, effort, energy, focus and desire to learn exist. So, too, in the era of relationship-based marketing. We can return to focusing on the consumer and our storytelling chops, knowing that we can make a difference, and we can win in the marketplace for all the right reasons!

If this story stimulates some thinking that you would like to share with like-minded brand builders who can add value to your internal strategic conversations, use this link to start an informal dialogue.

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