Posts tagged "business strategy"

THE EMERGENT TRUST ENGINE: Validation Marketing™

January 24th, 2018 Posted by Agency Services, brand marketing, CMO, Consumer insight, Marketing Strategy, Retail brand building 0 comments on “THE EMERGENT TRUST ENGINE: Validation Marketing™”

A veritable mountain of consumer insight research continues to underscore the importance of transparency, integrity, ingredient quality and higher purpose to consumer purchase decisions for food, beverage and lifestyle brands they prefer. The legacy CPG and retail marketing paradigm of “interrupt and persuade” has disintegrated. The old methodology of creating strategy that invokes promises and claims around product features, formulation specs and benefits no longer resonates.

At the core of this cultural shift is one over-arching driver that enables sustainable brand relationships: Trust creation. In light of these changes, we’ve designed a new effective strategy planning approach at Emergent; one intended to anchor consumer trust and build added depth and meaning (value proposition) for a brand.

Emergent’s proprietary planning model – Validation Marketing™ – is constructed to supply tangible evidence of a company’s beliefs, behaviors and commitments to quality.

  • Our formal definition of Validation in this context is providing conclusive proof, evidence and demonstration of what we want consumers to believe about the brand and company.

Five key principles inform Validation Marketing. These foundational ideas spring from insight-research studies that chart the cultural migration from a brand’s self-reverential declarations of superiority to a focus on what consumers are passionate about and what is relevant to them.

Principle 1 – The Power of Higher Purpose

Belief and mission have never stood so strongly until now as a gateway to trusted brand relationships with consumers. A brand’s higher purpose represents a departure from transactional thinking and reflects instead what the core consumer truly cares about – what they value around beliefs and a value system that extends beyond commerce. Purpose strategy must be a reflection of the company’s unique mission, and how it’s embedded in the organization’s DNA.

Principle 2 – Trust Springs from Transparency

Openness is best served generously and often – by pulling back the curtain fully on supply chain standards, manufacturing processes, ingredient sources and quality standards. Letting the consumer in the door to observe, advise and co-create. Importantly, this also means acquiring a reflexive willingness to openly admit missteps – a very powerful and very human, laudable quality. This nurtures trust – the real pivot point in any meaningful brand relationship.

Principle 3 – The Connection of Influence to Validation

“Trusted source” credibility is now the accelerator of business communication, rather than the gross impressions or reach and frequency metrics (tonnage in media weight) that defined marketing traction for a generation.

The significance of respected influencers today is the validation they provide that reinforces and confirms what a brand or retailer says is indeed true. Influencers inform from a position of embedded trust.

Principle 4 – Emotion and Lifestyle Relevance

We know purchase decisions are made on an emotional level. Validation Marketing is based on appeals to the heart more than the head. Ultimately this is about commitments and beliefs. These subjects are best served with a heaping tablespoon of emotion and baked-in lifestyle relevance. When a company realizes and integrates its higher purpose into all aspects of how it goes to market, the outcome feeds a more emotive form of communication – one that inspires a true connection to people.

Principle 5 – The Importance of Social Proof

People respect and believe their friends, family members and other consumers ahead of any communication created by a brand. At the Pet Food Forum convention in Kansas City, presenter John Stanley of John Stanley & Associates cited research showing 93 percent of Millennials make their purchase decisions from endorsements, and of those, 66 percent came directly from friends. This helps us see social channels from a new and more productive angle: the mechanism of social proof – another step in the validation ecosystem. Social channel and user generated content tools are critical components in optimizing this channel.

Advocacy Drives Story Amplification

If friends’ recommendations matter during a purchase decision then it follows that brand fans can be powerful ambassadors providing the grist for social community and positive conversation about a brand. Getting to a trusted place where people want to become “members” of a brand community – and not merely purchasers – stems from a brand’s relevant meaning, higher purpose and its surrounding validation and advocacy.

Three Action Steps:

For food, beverage and lifestyle brands here’s a roadmap for embarking on the path to Validation Marketing success.

1. Message – Telling the stories behind how and where you source. The relentless drive for quality, the real people who manage your effort (and yes, your magic!), and the standards you’ve created to ensure repeated excellence. People want to know what goes into the foods and beverages they consume. Take people back to the farm.

2. Manner – There’s real, honest emotion around food, food experiences and the role it plays in our lives. Create context for your products within the inspiration people have in the kitchen, at the table and how they live. Connect the love people have for food and the social experiences it enables to your brand.

3. Make – Emphasize craftsmanship and attention to detail in product creation. What steps do you take to ensure the end result is the best quality? Help people understand how you do what you do. And just as important: tell consumers what you won’t do, the lines you won’t cross and the compromises you won’t make.

At the core of this approach to brand and retail marketing is the Higher Purpose you create that informs everything you do – as described in our post Building the Higher Purpose Brand.

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Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact [email protected] and follow on Twitter @BobWheatley.

AMAZON GO OPENS TO PUBLIC; RETAIL TRANSFORMATION BEGINS

January 21st, 2018 Posted by Consumer insight, Culinary lifestyle, food retail strategy, Food Trend, Marketing Strategy, Retail brand building, retail brand relevance, shopper experience, Supermarket strategy 0 comments on “AMAZON GO OPENS TO PUBLIC; RETAIL TRANSFORMATION BEGINS”

Emergent announces retail transformation services

After a year in beta test, Amazon today opens its new high tech retail concept – Amazon Go — to the Seattle public. With it a new era in food retail begins, one that we believe will be transformational on more than one level.

Undoubtedly most of the coming media feeding frenzy will be focused on Amazon’s Just Walk Out technology, and the computer vision, deep learning algorithms and sensor fusion capability that sits underneath their no-checkout-line innovation. Importantly though, at Emergent we’re watching closely how the store is designed and curated to reflect consumer preferences for higher quality, fresh products for either immediate consumption or at-home meal execution.

Food retail has followed a familiar formula for decades, built around a focus on packaged food and pantry stocking. This has defined the shopping experience for a generation. Amazon Go at 1,800 of retail square feet is more convenience store than grocery. But the entire platform is edited to optimize and leverage shopper interests:

  1. Everything matters — and consumer insight informed merchandise selections are critical to match the consumer’s desire for fresh foods and upgraded snack and meal experiences. Carefully edited choice is a good idea.
  2. An on-premise display kitchen conveys the fresh, culinary inspired fresh preparations people prefer.
  3. An array of four to five rotating meal kits brings grab-and-go to full meal solutions.
  4. Integration of Whole Foods 365 store brand products offers its own, embedded quality cachet to packaged shelves.

Elimination of the check-out immediately removes friction from the shopping experience. So, yes, we believe this leap will be greeted warmly by people who have better things to do than stand in line.

The most important shift from our perspective is the product curation itself. Grocery stores ask the consumer to conform to its business model, to serve its supply chain relationships and its legacy shopping format – which is more about stock-ups in an era when consumers increasingly shop smaller baskets looking for just-in-time fresh ingredient meal solutions.

With Amazon Go we now have a food retail concept that religiously follows what the consumer wants in addition to how they want to shop (more convenience). The future of food retail must be centered on consumer relevance rather than just a mirror of routine retail infrastructure and traditions.

So today Emergent also announces our retail transformation services, intended to help food retail bring the consumer to the center of business and strategic planning. At a time when Amazon once again changes the game to secure a greater share of food shopping, Emergent’s transformation services for food retail address improvements to brand mission and go-to-market strategies.

Why does it matter? As Kevin Coupe wrote in his announcement story in his special edition of Morning News Beat, as Don Quixote’s sidekick Sancho Panza opined, “Whether the stone hits the pitcher, or the pitcher hits the stone, it’s going to be bad for the pitcher.”

Amazon is the stone. You already know who the pitcher is.

We’re here to help.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact [email protected] and follow on Twitter @BobWheatley.

 

Part 1: Integrated Communications – the New Maestro of Food Marketing

November 14th, 2017 Posted by Agency Services, brand marketing, branded content, CMO, Integrated Communications, Marketing Strategy, Public Relations 0 comments on “Part 1: Integrated Communications – the New Maestro of Food Marketing”

Is PR ready to move from instrument to orchestra leader?

Perhaps the harshest lesson for anyone in food and beverage marketing is the stark realization that persuasion no longer works. Persuasion was a welcome, business-friendly concept because its DNA was founded in brand-built, self-promotional messaging: here’s our product and why you should buy it.

Cultural shifts and behavior changes have transformed the shape of effective marketing from “talking at” consumers to “helping guide.” Consumers now rule the relationship – thus forcing changes in today’s marketing best practices and the service mix provided by agency partners.

Consumer shifts demand integrated communication solutions

When I first started in the agency business, public relations was primarily the sum of its media relations parts. Editorial media placement defined the marketing PR discipline, springing from its press agent roots in the post World War II rise of global agency companies. As the consumer packaged goods industry grew so did public relations. Its value exemplified in the context of cultivating third party, credible advocacy by a journalistic media source – one that was perceived to be unbiased and thus believable.

  • The marketing PR theory at work then: people in all demographic segments would consume media in print and broadcast forms to engage in the content – news or entertainment – while ads revolve around the perimeter searching (again and again) for attention. Getting your product talked about in the well of content was the ultimate in “intrusive” message delivery; wearing the aura of independent, reportorial endorsement. Controlled message and frequency were never in the equation like advertising, however, extended and cost-effective reach lived within its core proposition.

Mass media lived well with mass communication strategies.

Ogilvy (I was there for 11 years), in an effort to gain greater effective traction on behalf of its consumer branded clients, built an integrated proposition called Ogilvy Orchestration. It was an effort to bring symmetry and alignment between ad, PR, promotion and direct marketing services. While the concept had merit, its execution occasionally misfired due to competition between the various operating companies jockeying for the pole position of strategic client leadership. It was an early form of integrated thinking, yet, more about creating synergy among agency disciplines than a concept built to optimize and leverage consumer behavioral insight on the client’s behalf.

Digital changed the world: the old model lost traction, and a new one arrived

Let’s start by staking a claim: integrated communications – built around consumer lifestyle relevance – is the path forward for effective brand communication.

The consumer, for the most part, is in charge of how, when and where they engage in any and all brand messaging and hence, are in control of the relationships they choose to have with brands. Hence the tools deployed might blend earned media in the form of publicity, or branded content, or social channel conversation, or influencer engagement, or improved forms of advertising built around help over hype.

There’s an old adage, if the only thing you sell is a hammer then the answer to every problem is a nail.

So true. The Internet has facilitated consumer control over media channels and consumption. So there is easy avoidance of anything that walks and talks like traditional marketing. This condition ushered in a new marketing paradigm and tool kit – a decidedly less transactional model founded in relevance to consumer lifestyle interests, passions, needs and concerns.

Along with it, the current digital media eco-system literally demands a more conversational, straightforward and authentic form of communication. I would argue that PR brains are well suited to this task given the history of focus on editorial sensibility around “educating” versus the conventional solution leaning into cinematic salesmanship.

Today, brands must become partner, coach and guide to their audience as an enabler of their lifestyle goals. It is in this method of marketing reciprocity that more meaningful relationships between brand and consumer can be formed. It begs and answers the strategic question: in what ways can the brand improve the customer’s life?

At Emergent, we appreciate the shift to mattering and deeper meaning, rather than singularly advancing product features and benefits. The mattering construct requires businesses to fully operate in the customer’s best interests – which historically was a core principle that sat underneath the value proposition of public relations.

Implications to the planning model and agency

We believe integrated communication is a fundamental requirement for effective marketing strategy. Agencies that understand and can execute this fully will remain a vital and valuable resource to clients.

That said, it requires some modifications in operating behavior from the typical PR model of fielding tactical teams of publicists and creators of editorially-sensible material.

Integrated communications involves assembling an orchestra of expertise: part management consultants, part behavioral research experts, part brand strategy planners, part creative and producers of relevant content in a variety of media forms.

So, for clients and agencies looking to leverage integrated communications in earnest, the talent mandate must answer the call for integrated thinking. Inevitably, this will redefine the skill set requirements for firms who expect to provide the highest levels of value to their clients.

Integrated thinking informs integrated plans, which leads to successful integrated execution.

In Part 2 we’ll take a closer look at the elements of the new integrated marketing tool kit.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Emergent Answers the Healthy Living Chasm

October 30th, 2017 Posted by brand marketing, brand strategy, consumer behavior, Consumer insight, Emergent Column, Food Trend, Growth 0 comments on “Emergent Answers the Healthy Living Chasm”

Bridging the divide during historic change in food and beverage…

When we launched Emergent, it was based on an overwhelming body of research and marketplace evidence that food and beverage brands are in a state of transformation and thus, in need of new, fresh, refined and more relevant business-building solutions.

Of all the issues creating change, from the demand for transparency and clean labels and fresh foods — healthier lifestyle is the dominant driver that is impacting the consumer’s desire for improvement in the food and beverages they prefer.

Cultural shift makes healthier all-inclusive

Historically, the food industry’s approach to ‘healthier’ was an addition-by-subtraction model based on removing so-called bad ingredients like sugar, calories, sodium and fat; AKA the ‘diet foods’ business. For consumers, though, this often meant sacrificing taste and eating satisfaction. Which they did. For years. This was bound to be problematic because it existed in conflict with the embedded human desire for great taste and indulgent food experiences. Guilt only goes so far.

However, pervasive changes in global food culture caused the concept of healthier to shift. The good-for-you proposition began to look more like addition by addition. Healthy was restaged to focus on real, fresh, authentic, higher quality, less processed foods – more so than food science wizardry. Healthy became inclusive, lifestyle oriented and user friendly.

  • The root cause of change: consumers connected the dots between the quality of what they put in their bodies, with how that fuels what they’re able to do, and hence, their ultimate happiness and wellness.

As consumers became more engaged in higher quality food choices, it resulted in the widespread premiumization of many food and beverage categories. At the same time, media consumption habits shifted to social and digital channels controlled by consumers rather than brands.

We believe an agency devoted to mining this insight and bringing fresh thinking to the table is needed to offer meaningful guidance in the midst of this sea change.

New implications to the food system are reshuffling the industry:

  • Large cap CPG brands have experienced share and volume declines in core legacy categories. Consumers are moving away from anything perceived as highly processed or made from ingredients they don’t understand.
  • New emerging brands built on higher quality, fresh and real food ingredient solutions have grabbed the spotlight to reinvent everything from frozen meals to grain-based snacks.
  • Food retail shopping behaviors have shown a significant shift to the perimeter of the store as consumers increasingly look for fresh, real food products over center store packaged options. They’re also increasingly shopping more frequently for meal solutions over pantry stock-ups.
  • Meal kit solutions have taken share in food, by virtue of offering menu solutions derived from high quality fresh ingredients, married to easy preparation steps. Convenience meets culinary inspiration and taste satisfaction.

Time for transformation

We know that new, emerging, purposeful brands are gaining traction and attention in kitchens across America. So we visibly witness the dawn of a true food renaissance taking place around us.

  1. People are coming back to the kitchen, looking to exercise their creativity and control over preparations, freshness and quality of ingredients.
  2. We’ve entered a period where transparency, health and wellness, safety and authenticity drive purchases more so than the legacy stalwarts of price and convenience.
  3. We know the founder’s backstory and commitment to a real mission beyond the product itself is a critical component of the new brand marketing playbook.

We‘ve operationalized our understanding of what these changes mean and how to create traction in a fast-changing business environment.

Emergent’s value proposition

We’ve developed a proprietary planning model that reflects this understanding; one that demands a new approach to how brand relationships with consumers are formed, and thus, how effective brand communications should be created.

  • We are experts in this space; our services are aligned with answering these challenges.
  • We help legacy brands challenge conventional strategies and re-stage to optimize today’s conditions and help new brands accelerate their growth. We understand the consumer and how they think, how they behave and how they consume information.

If your marketing communications plans look exactly the same as last year’s, the time may be right for fresh thinking. We exist to help brands and businesses navigate and grow in the midst of transformative changes in purchase behavior. We can help you take the leap to increased relevance and alignment with this new marketing paradigm.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact [email protected] and follow on Twitter @BobWheatley.

 

client-agency relationship

The Brand Marketers’ Dilemma

July 13th, 2017 Posted by brand marketing 0 comments on “The Brand Marketers’ Dilemma”

Agencies as partners; well yes, but whom do I trust?

Ideally, the relationship between the brand team and your agency should spring from a strong partnership – one that enables a collective deep dive into your business and category needs and challenges. Your agency’s contribution to the cause: bring fresh, independent thinking and broad experience to help you map the best path forward.

In keeping with the partner role, the agency should come equipped with knowledge and understanding of the consumer you wish to build a relationship with. In theory, this is what communications firms do – create and implement recipes for successful conversations. You would be hard pressed to make that recipe work if you don’t have a deep understanding of the aspiration, interests and passions of those you wish to reach.

Agencies are creative communications think tanks – specialists who know how to work backwards from consumer insight to messages that are relevant and engaging. Twenty years ago that might have fallen out of cinematic production values and attempts at persuasion based on catchy tunes, tethered to entertaining product benefit stories.

Alas, the world has changed and consumers look for help over hype. So now what? If not a stellar reel of short form Hollywood moviemaking, the grist for success has a different face. And you know what it is – it’s trust creation.

We ask how can a brand marketer be assured their agency pick is the right one for partnership? How can you peer into the future and know this is going to work to the greatest effect?

It is fundamentally a matter of trust. This is no different than the end game of outreach to consumers. Trust looms large as a precursor to any kind of good, productive relationship. Hopefully, when you got married you moved from a place of trust to one of life’s most important personal relationships. Did you make an analytical list of pros and cons as a decision tree on your potential spouse selection? No, it was based on how you felt.

Is trust just an emotional state? Is this the luck of the draw? At the human level we know we respond differently to different kinds of people. Yes, some of it is basic chemistry, but I would venture to say that common ground often sparks the process.

Call it alignment, similar thinking, compatible points of view, shared understanding and super important: mutual respect between the business and agency teams. You might start with relevant experience as a starter and go from there. Like-mindedness sets the stage for good working conditions. A strong agency sees its role as helpful, insightful guide, not order taker. Also, arrogance has no place at the table of a partner relationship.

Trust and belief matter here. This is not as transactional condition. It can’t be.

It’s fair to ask what’s the opposite of trusted partner? Probably something that gets closer to vendor. A supplier relationship based on ‘shipping’ commodity solutions at lower prices. If successful communication was simply flipping a switch on and off, then this might work out. However, getting to victory requires better strategy, deeper insights, and more investment to peel the onion of consumer needs and how to craft a mutually beneficial relationship with them.

When considering an agency partner, begin with conversations in settings that allow for more than a fact-based exchange of capability information. Explore the business challenges, get to know one another, look for common ground and perspectives about where the business is headed and how to get there.

When trust exists, you’ll know it. You knew it when you got married (hopefully). You also know when it’s missing – and there’s your decision.

By the way, partner-style relationships can exist when clients open the door to create an immersive exposure to the business. The goal: fully understand the company and how it functions. Nothing drives great work more than insight to all facets of how the business is operating. It feeds creative thinking and strategic, more powerful and transformational solutions. Of course, to make that work you need – wait for it – trust.

Looking for more food for thought? Subscribe to our blog.

Bob Wheatley is the CEO of Chicago-based Emergent, the healthy living agency. Emergent provides integrated brand strategy, communications and insight solutions to national food, beverage, home and lifestyle companies.  Emergent’s unique and proprietary transformation and growth focus helps organizations navigate, engage and leverage consumers’ desire for higher quality, healthier product or service experiences that mirror their desire for higher quality lifestyles. For more information, contact [email protected] and follow on Twitter @BobWheatley.

Stop Doing What Doesn't Work

Marketing is no longer a department. It’s now a behavior.

March 7th, 2016 Posted by brand marketing, Insight 0 comments on “Marketing is no longer a department. It’s now a behavior.”

Are you prepared to recast the journey to growth?

More has changed in the marketing world over the last two years than the previous 50. The traditional marketing rulebook is sooo cooked. The path to growth is a different journey. Yet, remarkably, many organizations are still tethered to an outmoded view that marketing operates as a distinct unit or practice within the business to lure customers to the brand and store.

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