Decline of digital advertising reflects consumer trust implosion

If there’s one true north to guide marketing best practices in the era of consumer control, it is this: never lose sight of the human being you wish to court and retain as a user. According to global market research firm Ipsos, 69 percent of consumers no longer trust advertising, especially digital forms. Why has digital advertising fallen so hard and fast? A combination of algorithm driven pummeling that makes the entire experience annoying, followed by the rise of ad blindness (your ad is scenery and nothing more) and blockers, amplified by general decline of brand trust as consumers instead seek out verifiable and credible independent sources for guidance on which products to buy.

What lies at the base of conventional ad solutions is the absence of any real relationship- creating mechanism. So we ask the defining question – does acquiring awareness constitute the driver of a reliable, meaningful consumer-to-brand relationship? The answer is a resounding NO. Buying perceived digital engagement is a false promise. There are better and more effective ways to build business. Hold on while we take you to a new way of thinking, planning and operating.

We have entered a new era in marketing powered by earning authentic relationships with consumers built on trust. This new paradigm is fueled through creating authentic, personal, helpful, useful, valuable content. In this article we will reveal the formula for real connection, real relationships that deliver growth and retention of highly engaged brand fans and ambassadors.

First, we will explain how a digital ad frenzy led to rapid expansion of online ad spending, now tracking a downward spiral as consumers run as fast as they can away from it.

Digital ad magic and stars in marketers’ eyes

Perhaps the most impressive point about the emergence of digital advertising was the newfound ability to measure clicks to assess engagement outcomes. Followed closely by the deployment of cookies to track online behaviors and thus work to tie impressions to conversions.

For the gardening products brand, instead of buying 100 million impressions from Home and Garden that may include consumers who don’t have any affinity for gardening, you could intentionally focus on buying 100 million impressions aimed at avid horticulture fans. Sounds enticing and so we’re off to the digital races.

New types of intrusion emerge

The arrival of programmatic tech to unleash algorithm-sourced buying brought automation to precision audience and behavioral targeting. Retargeting permitted advertisers to follow consumers around the Internet like a persistent stalker. In the midst of this evolution cost declines led to a rapid fire, constant drumbeat of repetitive ad interruptions. Now you see me and now you see me again, and over here, and there and everywhere. Don’t you love me? Nope, sorry.

People live their lives online to acquire three things: information, entertainment and social connection. E-commerce serves alongside to digitize transactions and satisfy the ultra-convenience opportunity of armchair consumption. That said no one wants to be bombarded constantly with disruptive ads and popups.

Apple nails the consumer sentiment towards tracking and disruption!

Consumer-led backlash follows rapid rise of social proof

According to eMarketer, consumer trust in digital ads has dropped to 38 percent. A Hubspot analysis reveals that only 7 percent of consumers say they intentionally click on a digital ad while 34 percent say any click on a banner ad was a mistake.

The antidote to digital disruption and interruption is the emergence of user-generated testimonial content – said another way, users who help users with first-hand reports of experiences and assessments of products and services. Alongside this development is the expansion of category experts, subject matter professionals and influential tastemakers who are speaking on behalf of brands in a more authentic and humanized voice.

Independent social proof is respected by consumers for the very reason they trust the voices of peers before they will believe the assertions and claims of digital ads and brand self-promotion. Social channels can be an amazing, powerful, effective resource for advocacy and ambassadorship when managed with an eye towards encouraging user sharing.

Too often these days social is deployed as another broadcast channel for product promotion rather than cultivating a community of like-minded people who share their own experiences and outcomes. Social can be a far more credible and believable mechanism to validate what you want consumers to trust and understand about your products. You just have to be intentional in how that channel resource is developed.

The new marketing eco-system built on trust

There are four key pillars to successful marketing outcomes at a time when attempting to buy awareness through conventional ad platforms is falling away. They include:

1. Marketing partnerships: B-to-B colabs, media-driven content alliances and influencers
2. Social channel refinement: engaging passionate advocates as UGC ambassadors
3. Earned media: PR-driven outreach through editorial media channels
4. Branded content creation: built on an education-centric model, not a promotional one.

Partnerships fuel brand growth

• Partnerships with aligned brands work because they add value to the consumer experience and make intuitive sense. When Quantas Airlines and Airbnb team up to “Fly there. Live there.” they combine assets that create a seamless traveler experience. Similarly Spotify aligns with Ticketmaster to amplify the fan experience from digital music to live performances with click-thru simplicity. These combinations work because they are complementary, sensible and add user value.

• Right now the triopoly of Facebook, Google and Amazon together control 90 percent of digital advertising inside their walled gardens. As a result premium media channels are cultivating and expanding their content partnership opportunities with brands to build podcasts, newsletters, videos and other tools. These colabs allow brands to gain access to their audiences and tell stories with the imprimatur of the media brand alongside yours.

• Influencers are a valuable resource of endorsement from citizen category experts who bring their audiences to the table for colabs and reviews. Fabletics activewear brand partners with lifestyle influencer Marla Catherine. The brand accesses her 1.6 million subscriber YoutTube channel to connect fitness fashion endorsements to their online shop platform. A win and a win.

There are rules here with respect to vetting influencers that make strategic sense and align with your brand – all based on building trust and relevant connections with consumers.

Social channel strategy

Brands should encourage user sharing of content and experiences. Developing an ambassador program that links back to periodic content creation helps ensure a flow of useful, credible posts that tell the brand story through the eyes of enthusiastic believers. Amplify this with category expert voices and content that offers guidance, coaching and instruction. Yes, there’s room for your BOGO promo but that should not be the leading voice in your social channel calendar.

Earned media

Editorial coverage of your brand takes advantage of the consumer’s belief that editorial media is an unbiased third-party channel that reports more than advocates. HBO satirist John Oliver recently took TV chat show and news programs to task for fake editorial segments that were paid for and passed along scurrilous information to viewers about unreliable products. Frankly, this pollution of church and state type separation between ad and editorial isn’t good for anyone.

Branded content creation

The voice of your brand should be founded on a relationship-building platform that emphasizes coaching, guidance and enablement that’s relevant to the consumer’s lifestyle journey. YETI coolers does this beautifully with outdoor adventure videos that mirror the lifestyle interests of their core users via compelling, authentic even cinematic storytelling. If you are a food brand and can help users with exploration and creativity in the kitchen, you have a useful voice in their lives. This is how relationships are built – through help over hype.

Trust is the anchor

In a world devoid of trust, consumers want to connect with sources of information and guidance that puts their best interests first, is centered around credible voices (their own) and provides value that enhances their experiences. If you devote energy and attention to cultivating this trust forward marketing eco-system, you will be on the path to authentic, sustainable relationship creation. The outcome is reliable engagement, connection and importantly, sustainable business growth.

So stop chasing eyeballs and start winning hearts!

If this post inspires you to consider fresh thinking on creating more effective marketing outreach, use this link to start an informal conversation with us.

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Why Brand Education is More Effective than Selling

There’s an almost irresistible, gravitational pull in brand marketing to focus on self-promotion. It’s instinctive and alluring to talk singularly about why your product is better than others. Is your head nodding up and down? You may believe the persuasive story is your awesome tech, your incredible recipe, your authentic ingredients, your great taste, your contemporary look, your creative store design – all of the various arguments why your brand or banner is terrific and a superior choice.

• These brand advantages and qualities are now fundamental currency in a marketing game whose rules have changed.

• Yes, all of these things remain important, but should they be the leading tip of your marketing spear? Not anymore. Here’s why.

The dynamics powering consumer and brand relationships have transformed. Consumers gained control of brand engagement when the Internet and digital era handed it to them. Your users know everything, can compare anything, and quickly learn from the experiences of others good, bad or indifferent. They can turn your engagement tactics on or off with a click. When consumer relevance reigns supreme, it’s time for an enlightened approach.

Secondary research confirms most people run away from self-congratulatory messaging outreach that looks like traditional selling. For them, it isn’t trusted communication. Effective marketing recognizes that the journey brands take with their best customers is built on a foundation of reciprocity and value exchange.

Role of the modern brand is guide and purposeful voice

Instead, your brand should present itself as a guide, coach and advisor on the consumer’s life journey. Marketing becomes relevant and resonant to users when the value offered is of intrinsic benefit in helping them achieve their personal aspirations and goals. Your brand should be a partner not a seller. Key insight: the dynamic of how brand relationships are made has shifted to help over hype, so your voice and story should realign with it. How so?

Eat Just brand, the first cultivated chicken meat to win regulatory approval for sale in Singapore, recently struck a deal with a hotel-based restaurant called Madam Fan. They are launching the first home delivery menu of dishes using Eat Just’s non-chicken chicken.

Inside the food delivery container is a Google Cardboard viewer with a link to a short film. According to Eat Just CEO Josh Tetrick the video transports you to a Brazilian rainforest where you observe this rapidly disappearing climate-critical resource. You see this amazing natural carbon sink being replaced by industrial farms that raise animals for meat and the corn and soy crops to feed the animals. The goal of Eat Just’s video is to help users appreciate why cultivated meat matters to the planet’s health.

Turning the food delivery box into a portable brand experience is such a smart move.

Did the video do a typical romance of their product tech? No, it was instead an inspiring educational experience where the consumer learns about the connection between our food system and its related climate impact. This frames the Eat Just brand’s higher purpose, it informs in a way that’s consistent with changing consumer values and beliefs about food. It creates a unique teaching moment – and a powerful one at that.

This is how a community of believers and advocates is built. The video endears the Eat Just brand to its users. Of course, for all of this to work, the product eating experience still needs to be perfect. It should be an authentic analog to chicken flavor and texture – and taste should hit squarely on the crave-able and delicious notes.

• That said, in a world of common feature-to-benefit selling tropes, Eat Just credibly, remarkably rises to a new level of value exchange, where eating that nugget of chicken meat acquires a deeper meaning than it would deserve outside this context.

What’s more, the approach educates and benefits the recipient in a compelling way – an “a-ha” moment of learning that rainforest is rapidly disappearing (at an alarming acre per second). Emotion is embedded in the subject matter of the video, so it plays to what we now understand about consumer behavior and the (major) role of emotion in shaping perceptions and actions.

Marketing that’s wanted by the recipient

Your goal is to create marketing that is welcomed by its intended audience, not avoided. When the food or beverage brand helps its core customer with creativity in the kitchen, or enables wellness and fitness experiences, or communicates a higher purpose like food scarcity, the brand gains permission for a conversation. Here the brand bonding is facilitated because we’ve moved beyond transactional selling to a more relevant and powerful dialogue.

You may still wonder: isn’t the path to sales growth paved with communicating product attributes early and often? Not at the expense of failing to educate users. This has everything to do with understanding the rules of reciprocity and trust that influence purchase behavior. Trust is earned when the consumer believes you understand them and their needs and operate unselfishly to work in their best interests. Trust is the active ingredient in an authentic give-and-take relationship between brands and users.

Food and the role of crave-ability and deliciousness

Worth noting, food is an emotion-packed category. People care deeply about the quality of what they put in their bodies. They want to know the ingredients used are high quality, healthy, real, safe and also better for the environment. They especially want to avoid making a bad decision, so how food is presented with an eye towards taste and eating satisfaction helps eliminate the perceived reflexive risk of “It’s healthy so it’s going to taste bad.”

One notable caveat here: any number of fast casual restaurant brands are aware of eat with your eyes magic and advertise food that looks sumptuous and crave-able – all beautifully presented with super strong appetite appeal. Except that the stark reality of what’s actually delivered on the plate is frequently so far removed from the ad imagery that it sets the stage for massive disenchantment and trust disruption.

• Truth matters. Social channel chronicling of disappointment spells out what’s at stake with consistent over promise and under deliver.

• If you convey it’s delicious, it better be delicious.

When education is your mission

Sweetgreen is a fast-food chain that understands the role of ethos and deeper meaning in their brand proposition and go-to-market behaviors. This belief system permeates every aspect of how the brand is presented and how the business operates to demonstrate its higher purpose values.

They recently announced a refresh of their brand as they amp up their climate impact bona fides while redefining what fast food is in context of why the company exists. Here’s how they presented the values that sit underneath their new brand identity:

1. “Food: sweetgreen wants to show that fast food can be synonymous with real food. They invested in new food photography, menu designs and packaging in an effort to highlight their food ethos, which celebrates seasonality, local sourcing and transparency. 
2. Sustainability: sweetgreen believes that climate change is the defining challenge of our generation. This new identity was designed to showcase sweetgreen’s sustainability initiatives and its ongoing journey to carbon neutrality.”

Education is the leading strategy at sweetgreen. They believe consumers benefit from knowing more about how their food is sourced, farmed and prepared with an eye towards healthier and higher-quality choices that remain friendly to the planet’s wellbeing.

Why help over hype is the way to go

We have entered a new era where brands with purpose and deeper meaning attached to how they operate have an extraordinary opportunity to create lasting, deeper connections with their core users. It’s no longer necessary to compete for attention through a constant drumbeat of hard selling product features.

If you’re committed to building the best possible product experience your capable of, the consumer will recognize and experience it. Why they keep coming back, and why they engage fully in your social channels has more to do with how you help them by enabling their passions and interests and aligning with shared values.

Education is a principle move to provide added value, and while doing so, enhance your relevance. It also respects the expert guide and coach role that brands should play in effective communication.

When you create marketing users want rather than avoid, the opportunity for conversation skyrockets. The relationship, therefore, is a journey not a transaction. Educating consumers is simply smart marketing and sets you up for successful engagement across all digital platforms. It automatically leans into your higher purpose, a point and position not lost on consumers who are looking for it.

If this sparks questions about refining your strategy and brand voice around education-forward outreach, we’d love to talk with you. Use this link to begin a conversation.

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Understanding the human being you’re talking to

People are not analytical, fact-based decision-making machines. We are feeling creatures who think, not thinking creatures who feel. It’s heart-over-head every time. Yet the vast majority of brand marketing outreach is based on a rational presentation of features and benefits.

The incredible formula.

The amazing ingredients.

How it’s faster, more efficient, less costly.

The shiny new food tech underneath.

But what if I told you that conscious thought does NOT inform the decisions consumers make. “For 50 years we’ve been using the wrong model. Emotional tugs trump rational pushes.” Dr. Robert Heath, Journal of Marketing Research

Uh oh.

Doesn’t matter what the product is either. Marketers are trained to serve up what they believe is the best, most logical, defensible and factually-compelling argument that can be made about why Brand X is better than Brand Y or Z. But this is upside down.

Here’s the essential truth as we know it: “Non-conscious intention produces both a conscious thought and action,” says Timothy Wilson, a Clinical Psychologist with the University of Virginia.

Ooh Kayy? So what does that mean?

The latest Neuroscience tell us why we’ve been unintentionally mis-managing marketing for a very long time. Turns out there are two brain systems at work in every person. System 1 is an effortless, always on, intuitive autopilot side of the brain. System 2 is the effortful, learning, rational, analytical side of the brain that unfortunately is inherently lazy. System 1 makes 98 percent of our decisions, leaving 2 percent for System 2 to ponder. Yes they work in tandem but System 1 is in charge.

Here is another way to understand the difference: System 1 can process 11 million bits of information per second. System 2 processes 40 bits of information per second. Gulp. Turns out the intuitive side of our brain is a lot smarter than we ever knew. That hunch or gut feel you had is probably right!

The impact on marketing best practices

System 1 responds to emotion because it uses emotion. Here’s how to think about it.

• Acts without deliberate analysis
• Generates our impressions, feelings and inclinations
• Exerts powerful influence on choices and judgments
• Drives the options we choose and originates the actions we take

Here are six essential ingredients for optimizing marketing outreach that track with what we now know about how people really operate and handle decisions.

1. Exposure: we automatically assign superiority to what is familiar. Communicating sticky, memorable phrases and ideas is a good thing.
2. Proof: we are drawn to prefer products and brands other people like and endorse.
3. Positive feelings: if we feel good about a brand, we assume it possesses an abundance of beneficial qualities.
4. Actions: people respond more readily to what you do more so than what you say. Brand experiences can show your heart.
5. Reciprocity: we are hard wired to reciprocate in kind when faced with clear generosity. Surprise and delight is more than a catch phrase.
6. Art: we respond well to artistic expression. How you use words, visuals, sounds and style matter.

The case for deeper brand meaning

Here at Emergent we’ve been talking about the importance of Higher Purpose to brand growth for years. On one level, Higher Purpose marketing is respectful of the fact that purchases are largely symbolic these days, a form of signaling our values and beliefs to others around us. Thus, Purpose creates added value to the consumers’ perceptions. However, Higher Purpose is also part of this emotion-driven eco-system that informs how people behave and take action.

“Science now proves what brand

strategists have always sensed. We

human beings have a need to believe in

and act upon something that’s greater than

ourselves… Let’s realize the significance

of this discovery and impress upon

everyone that a brand is a belief system.

Want greater rewards? Then impart your

brand with deeper meaning…” – Emergent

Give consumers something they can believe in – advocate for – that reflects their values and beliefs. This is how you create a community of ambassadors who will spread the good word about your brand and business. Transactional relationships between brands and users are a thing of the past. Your brand value proposition should extend beyond the product itself. It also fits snugly with our understanding of how to communicate successfully to System 1.

If you have more questions about how this revelation might impact your go-to-market plans, use this link to start an informal conversation.

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Your early priority: what will consumers rave about?

An inconvenient truth: the vast majority (80%) of emerging CPG food and beverage brands will never surpass $1 million in annual sales. Here we examine some of the critical components that drive velocity growth and reveal the fundamental rules that must be respected to scale a new brand over time.

In case you’re wondering, this has no bearing on the scope of investment funding in development and launch phases. The business opportunities, ultimate size of the prize and inherent growth-limiting factors all begin with the product concept itself.

It’s true, the product IS the marketing. The product shouldn’t require promotional lipstick to make itself appear attractive. Instead, it should draw a following because it exudes its own obvious and valued magnetism.

No matter what the Series A, B or C funding rounds looks like:

• You can’t buy food culture relevance
• You can’t buy consumer enthusiasm for the product
• You can’t mandate or enforce memorability on the consumer

The product concept must be strong, unique and valuable enough to drive interest across a larger addressable market.

It’s hard to get noticed when the product isn’t a knockout standout relative to adjacent choices.

Mediocre (not rave-able) innovations, especially in saturated categories, almost never scale because the product concept isn’t big or exceptional enough to leap ahead of current category players. If the product doesn’t incite high memorability levels and consumer passion it won’t be able to drive a sufficient baseline of routine repeat purchasers.

Throwing money at a relevance and value proposition problem won’t help.

For example, hardcore nutritional innovations are difficult to scale because they can’t attract an audience past the ‘holistic’ alternate nutrition audience segment. If sales are dependent on a narrow cult of users, it creates an automatic embedded drag on velocity.

Instead, product design must connect symbolically to highly valued, desirable dietary outcomes for the consumer who will enthusiastically seek it out – such as weight management, energy, immunity, overall health/wellness or indulgence.

Key information the exec team needs to seek through active listening with early-in users:

• What attribute-outcome association is the early adopter holding in their mind?
• Which associations do the heavy users embrace?
• Which of these attribute-outcome associations is truly scalable?

This data should be used to refine and improve the product in its earlier stages of distribution so that once the gas pedal on added distribution is pushed, the product itself is accurately, optimally reflecting what consumers say is their ‘why’ for buying repeatedly.

This is also a vote for patience in expanding the retail door footprint. While some brokers may believe any increase in volume as good volume to have, if there are flaws in the product experience, added distribution will only further expose those weaknesses – risking future delisting if repeat purchase performance falls off. To succeed in steadily increasing overall case volume movement, a core base of repeat buyers (satisfied enthusiasts) must be established, with product trial users added on top of the base.

Category selection and design is vital to long-term success

Please take note, consumers shop categories first and brands second. Likewise, retailers see themselves as category managers. A category is a culturally relevant cognitive title that works to secure a specific use/space/value location in the consumer’s brain.

If you’ve followed our recent articles on radical differentiation, you know how important uniqueness is to generate sufficient category separation from other nearby brand combatants. Ideally, the new brand should occupy its own category space.

The goal of topflight category design is to mine strategic differences that are competitively scalable.

• Here’s Emergent’s top scale principle: the innovation must be attractive to a larger audience and clearly, effectively answer a consumer dietary need or goal – such as ‘natural, better for you, plus an important bonus attribute’. What that attribute will be comprises the creative challenge of our work in category design.

Why did Beyond and Impossible scale so quickly?

The product innovation here for both brands was a significant vault ahead for plant-based meat over previous category versions that were more narrowly positioned for vegan and vegetarian users. They could have elected to position their products as an improved plant-based meat for vegans, a narrow, small cohort when compared to other segments of the meat business.

Instead, they pursued the largest addressable market opportunity, cast as ‘meat lovers’ (which is nearly everyone). This audacious, bold move was built on confidence the product eating experience and taste would live up to the litmus flavor test from beef hamburger fans. Further they created a new category in the fresh meat department – plant-based meat for meat lovers.

Because the product delivered fully on this promise, it fueled word of mouth and consumer enthusiasm/ambassadorship – further closing the loop on trust and credibility. The promise was effectively fulfilled in the candid testimonials of happy users.

Most important however: these brands also conquered the one barrier that often stands in the way of acceptance – perceived risk. How did they manage consumer skepticism about anything novel and new that includes trailing sensory baggage about taste compromises associated with plant-based burgers? The smartly played decadent, indulgent, crave-able, mouthwatering photos of luscious cheeseburgers to build desire and taste appeal said it all. Zero effort here to sell this as a health food (read: tastes bad).

They also benefited from a consumer perception that anything plant-based is better for you and thus why people are looking to add plant-based foods to their diet. The climate message was tertiary social issue icing on the value proposition cake that added ‘feels good’ to consumption. It also operated effectively as a relevant publicity angle to enhance awareness.

The role of symbolism

Consumers are loathe to tax their brains or burn mental calories trying to determine if a product addresses what they believe the purchase should signal about their values to the world around them. Package symbolism becomes a vital link in respecting this signaling behavior that a purchase confers on the user.

This isn’t an invitation to the over-use of certification logos (Whole 30, Certified Organic, etc.) that often clutter up the front panel of many new premium food brand packages. Photography and graphics that billboard the trademark and primary attribute offering from the shelf should intentionally bring visual cues that evoke the brand’s deeper meaning.

Consumer social communities are always based on shared values. Those values operate sub-consciously and are on auto pilot. The decision to pick brand A over B is really a social decision. For this reason consumers have learned to quickly scan for symbolism on product packages.

• “Consumers do not eat kale because they watched a heartbreaking documentary about the meat industry. They eat it because, by doing so, they send social signals of being enlightened, wellness-obsessed, and socially conscious. They do not watch “Succession” because they like it; they watch it because their friends watch it and they want to participate in the shared experience.” Sociology of Business

Halo Top went to market as a high protein ice cream. An odd attribute for ice cream. After carefully listening and then iterating changes to their package, they pivoted to low calorie indulgence and off it went to fame and fortune. Why? Weight management is a highly leverage-able dietary outcome.

Repeat purchase rates are fed by an enthusiastic fan base that shows up in social channel participation. The best influencers are current repeat users who nourish the social channel proof loop about their ‘why’.

In reality, the consumer is your true business partner

In Dr. James Richardson’s wonderfully insightful and well-written book, Ramping Your Brand, he lands on the ultimate list of questions founders should be asking of their users to inform strategy.

1. Why do they like your product line? Is the motivating outcome scalable?
2. Who are the “wrong” consumers”? (i.e., those motivated by non-scalable outcomes or who make insincere trade-offs on taste)
3. How do they use it in everyday life?
4. Does it fold well into their daily routines?
5. How often do they use it? (e.g., daily, weekly, special occasions)
6. What, if anything, they would change? (e.g., weird after taste, pack size, etc.)

As Richardson reports, consumer packaged foods and beverages are all about “easy-to-shop, easy-to-buy, easy-to-use shortcuts to achieve desired outcomes. Find the right way to sell to consumers, not the right way to turn them into your image of what you want them to be.”

If this article sparks interest about optimizing your business on the path to marketplace fame and fortune, use this link to launch an informal get acquainted conversation with us to share your questions.

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Are you prepared for the shift in consumer demands?

• Advancing greenhouse gas (GHG) levels.
• Accelerating impacts of climate change.
• Our GHG emission-heavy meat and agricultural production system.
• Evolving consumer expectations and food choices linked to climate outcomes.
• Global food scarcity.
• Are all these issues inter-connected? Yes.
• Is the consumer about to grasp this and connect these dots?

Yes.

• Food, beverage and lifestyle categories are ground zero on a major culture shift now underway that redefines the meaning of sustainability and will recast the value proposition for nearly every brand in the business.

Can you see it coming?

You already know sustainability has been a growing issue for consumers. However, as a purchase consideration sustainability is morphing to focus on climate threat impacts. This will change the value proposition and strength vs. weakness of brands both CPG and retail. A new class of Eco-Sumer is emerging that sees the checkout counter as a voting booth to signal their demand for change and flag their activism on these vital quality of life issues. Their significant purchasing power will put pressure on companies to act. Are they on your strategic planning radar?

The early stages of change

Sustainability has moved past its teenage years and is maturing. In 2018 Nielsen predicted consumers would spend $150 billion on “eco-friendly” products by 2021. However, the sands of adoption are shifting underneath as the rapidly rising consumer concern about agriculture and food production’s link to GHG emissions gets traction.

Soon the consumer will come to understand that agriculture is the second leading producer of greenhouse gas. Specifically, meat production accounts for 65 percent of the world’s nitrous oxide, a gas with a global warming impact 296 times greater per pound than carbon dioxide. What’s more, total emissions from agriculture are forecasted to grow 80 percent by 2050 due to a significant increase in demand for meat and dairy products.

Emergent’s research barometer is tracking the evolution and expansion of consumer sentiment on sustainability. This issue increasingly has bearing on brand value propositions. The consumer view of sustainability’s relevance has already expanded to include assessments of transparency, ingredient sourcing, food safety, animal welfare, employee treatment and now carbon footprint. Important for you to consider: this is quickly becoming a standard yardstick of product and retail experience quality.

Culture shift leads to behavior shift

According to Forrester research, half of U.S. adults are operating now in various shades of green and are demanding accountability from brands and retailers, while 32 percent of consumers are going out of their way to purchase brands that are dedicated to reducing climate impact.

Meanwhile the Edelman Trust Barometer reports that 72 percent of consumers are concerned about climate chaos and 40 percent are even fearful of it. The Pandemic has shined a spotlight on vulnerability between human health and the ongoing destruction of our wildlife eco-system which helps tamp down disease spread as more and more land is repurposed for industrial agriculture and meat production. Rainforest, the world’s largest carbon sink, is disappearing at the rate of an acre a second for this reason.

A 2019 Kearney study concluded 71 percent of consumers take protecting the environment into consideration when shopping. By mid 2020 that number had run up to 83 percent. With increased awareness of our food systems’ culpability in climate threat, consumers will be looking for guidance and direction from brands on their efforts to mitigate the problem.

Increasingly popular “Net Zero” commitments are only the beginning. Consumers will soon begin to scrutinize those moves, looking for consistency across the waterfront of company operations not only on energy and water use, but also how the food ingredient supply chain is factored into carbon footprint.

• Climate and sustainability initiatives, commitments, practices and standards are about to become a launch pad for business competitive advantage.

The coming moment of truth: shopping friction

How do brands and retailers help consumers make a sustainability decision? There is no credible mechanism for determining how climate positive a brand or retailer is. When rules are drawn up internally by companies, the metrics applied around different definitions of climate impact will inevitably vary brand to brand.

Lack of any central oversight or common benchmarks makes consistency nearly impossible to achieve. Consumers are going to have a hard time assessing which claims are meaningful from those that are not. When a best practices vacuum like this exists, there will always be third parties wading in to fill it. Pundits and self-styled experts will offer their views on good vs. bad and so the race to secure credible guidance will begin.

• We know consumer expectations are already on the rise. Now is the time to create a set of industry-wide standards on carbon footprint and define which elements of performance need to be included in assessing climate impact scores.

First step: holistic analysis

This isn’t just about clean energy. Or mitigating water resource over-use. A 360-degree evaluation will be required to consider supply chain, ingredients standards, operations, manufacturing, company culture, employee policies, brand higher purpose, cause relationships, plus the communication of standards to stakeholders, consumers, retailers and investors.

Investor and regulatory change coming

The Kearney study also revealed that 77 percent of investors now see climate change as a consideration in their valuation decisions. Further 79 percent of investors believe that regulatory changes will be a factor in their decision-making over the next three years.

There’s no question the new Administration is making climate a top priority and public policy will favor companies that get ahead of this. The Securities and Exchange Commission has already set up a task force to monitor ESG (Environment, Social, Governance) misconduct of publicly traded companies. At some point there will be regulations aimed directly at disclosing emissions.

Where to go from here

It’s time for the Climate Audit, a thorough evaluation of company operations, good and bad, that contribute to (or remove) emissions either directly or through vendors, distribution and supply chain.

• Greenwashing is going to be a key area of vulnerability for organizations that take a half-baked stance on emissions and simply try to ride the wave of consumer sentiment by invoking climate faithfulness. Half measures are likely to be exposed so it is important to get it right and leave no stone unturned in evaluating where emissions might come from and how best to turn it down or off.

The rationale for these changes and shifts is compelling:

“Carbon dioxide (CO2) and methane levels in the atmosphere continued to rise in 2020, with CO2 level reaching their highest point in 3.6 million years, according to calculations by the National Oceanic and Atmospheric Administration. The barrier was broken despite a reduction in expected emissions caused by the COVID-19 pandemic.” – Jordan Freiman, CBS News

This CBS report was startling given the slow-down in commuting and travel due to the pandemic. It underscores that GHG emissions from fossil-fueled transportation are still only a portion of contributing factors to global warming. Agriculture is a big one and getting bigger. This revelation will put food choice at the center of the bull’s eye for consumers who use their wallets and brand preferences to vote their values.

If you find this conversation meaningful and would like to discuss how climate impact can be properly and successfully addressed in your organization, use this link to open a conversation.

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Distinctiveness – a recipe to win the consumer’s mind

The greatest challenge brands experience on their journey to stardom (or eventual decline) is an unrelenting force at work that drives sameness into category competition. Ask any brand minder and they will recite their product advantages, formulation improvements and what they deem believe are distinguishing features. Yet in reality these characteristics are often a mild gradation of difference. This all-too-common condition pushes purchase decisions into more marginal and subjective territory such as attraction to package graphics and photography.

If you want to win the battle for the mind, you need every advantage. That begins by recognizing the all but universal existence of traditional category conventions and behaviors. The trick is working overtime to separate the brand from the crowd in your category orbit. Like 10-year-olds at a soccer match, most competing category combatants chase the marketplace ball of go-to-market practices like a rabid pack around the field. They rarely separate fully to position themselves uniquely for a more strategic and ultimately game winning play.

Be different. No really, really, really different!

In every category brands must compete for share of brain, wallet, sometimes stomach, engagement, mattering and value to the user. Yet modern advancements in technology, innovation, ingredient sourcing and production have made it virtually impossible for any brand to sustainably own a secret sauce achievement over time. One that can radically separate it from the other contestants. Copying is now an achieve-able artform.

If anything, brand experiences become somewhat interchangeable and thus can (will) fall victim to lowest common denominator pricing maneuvers that create a pocketbook incentive for switching. On the other hand, brands with deeper relationships and emotional connection to users can overcome the frequent rust of commoditization and marginal distinction.

Here we make the case for radical differentiation!

Let’s work together to break the rules and category conventions of brand behavior by flying purposefully in the opposite direction. Your goals and objectives are better served by creating greater separation than deciding to “live with” the middle-of-road-ness that often exists side by side in how brands package and market themselves. It may feel safer to follow the pack, but in the end home run outcomes are unlikely when virtually every brand bat is going to be calibrated for a reasonably decent base hit with consumers.

• In fact, different is more powerful than better. Better is always a shade or degree move (perceptual). Unique can win devotion past the purchase decision.

Where can brands strategically separate?

Let’s start with who you are serving. Time and time again we’ve found that redefining who the core consumer is can offer a healthy start on the journey to radical differentiation. “All things to all people” will never be a recipe for distinction.

In every food, beverage and lifestyle brand category there are unique consumer cohorts. We also know that in many instances a more involved and engaged category buyer is often a heavy user who will represent a disproportionate share of brand sales volume and profit.

Narrowing the definition of who you want to serve is your first move towards better brand health, looking for the pockets of greater fan participation and emotional investment.

• We routinely conduct category segmentations not just to understand different cohorts shopping a set of brands but also to find the fanatics and warriors who are champions of a business based on their lifestyle and attitudinal quirks or preferences.

• Persona development work is key to helping define these slices of marketplace enthusiasts – those more likely to resonate to what’s on offer.

How do you design for them? What do they want? What constitutes a surprise and delight? How can you enhance relevance and resonance with them? Yes this means picking a narrower audience profile for planning. However, we’ve repeatedly observed this sharpened focus will improve every aspect of strategic gamesmanship while creating efficiencies in media communication. It sets the brand up to really engage groups of enthusiasts rather than being simply noticed (or not) by everyone.

Re-packaging the story

Designing language, tone and story relevance to the right audience is critical to set the brand apart. Spending time navigating Oatly’s website is a fascinating tour of a business with a unique voice, wearing its beliefs and values like a form of branded organic fashion. It’s not for everyone and isn’t intended to be so. It is a separator from all others, a rebel brand archetype that steps away from dairy conventions to do everything differently.

The words and narrative are masterfully curated to reflect the brand’s higher purpose around sustainability and a belief that an authentic human voice is more engaging than clever marketing speak. If the audience focus has first been narrowed to a band of believers, then the story should be refined to reflect and mirror their interests, concerns and values.

Symbolism 

These days product purchases are expressions and visible flags of values people want to be associated with or known to others for supporting.

The Nike brand isn’t really in the running shoe or athletic wear business. It is in the celebration of human commitment to athletic improvement and competition business. The brand is drenched in symbols of belief, striving, personal improvement, effort and achievement. These values transcend the levers of commerce and elevate Nike from all other players.

Can you add symbols and signals to your web site and outbound content that aligns your brand with shifts in popular culture important to your brand’s relevance and resonance?  

Looking for white space (differentiation) and trends to lead (culture change)

White space discovery is harder than it sounds. Our brains are wired perceptually to see what’s there rather than what’s not there. So how do you discover white space innovation in crowded categories? You must become a zealot customer anthropologist, studying their needs, wants and desires looking for under-served or unrecognized need states.

Both Beyond and Impossible plant-based meat companies arrived on the scene at a time when consumers increasingly viewed plant-based products as better for them. A trend gaining momentum across the food store. Witness the rampant growth of plant-based milk brands that upset the legacy dairy industry.

Their radical differentiation was to walk the opposite direction of improving vegan burgers for vegans. They set out to make plant-based burgers for meat lovers. Audacious. Charismatic. An impressive move to assault the beefy meat case. Their claim was bold and unique. The product experience delivered and now it’s a juggernaut of business expansion. A real zig to the common zag of most plant-based food innovations.

Higher purpose

People want to be part of something bigger than themselves. They want to believe in brands that share their values, that provide a way to make a difference. When the brand voice goes beyond the product to embrace issues people care deeply about, the dynamics of the consumer brand relationship change. No longer just transactional, the brand is imbued with deeper meaning and the voice gains gravitas and potence.

This is how you create a community of activists, advocates, ambassadors and believers who can see themselves embedded in your mission. Remarkably this tends to lower the overall costs of marketing because the brand doesn’t need to beat people over the head with paid self-promotion. The community has its own engine, pushing word of mouth out horizontally.

Some of the more visible examples:

Patagonia and its out-sized commitment to sustainability

Ben & Jerry and its radical commitment to social activism

Panera Bread and its ongoing efforts to address hunger and transparency

Warby Parker and its mission to help provide sight to the seeing challenged

Timberland and its tree mandate to answer carbon footprint and climate change

Of note, higher purpose is a zig move for the very reason so many brands don’t recognize the value of it, or fail to execute authentically, fully. Higher purpose only works optimally when belief and dedication to the platform is religion inside the organization, flowing all the way through operations, marketplace behaviors and long-term strategic decisions.

What’s your higher purpose and the reason people should join your brand’s movement? Or do you still think a formulation tweak will lead to massive marketplace victory?

Designing to intentional difference

Radical differentiation is a strategic play. It is how you can win the battle for the consumer’s mind when (for the most part) product categories are noisy, fuzzy, blurry pools of sameness. Consider who you are serving and what a narrower focus could mean. Look at white space innovations and trends as an opportunity to step outside the category norms. Change your voice, behave differently at the shelf. Move out of the standardized look and feel in how your product is packaged.

Run in the opposite direction from the pack. You will stand out. People will notice. If it’s done right, it can mean a change in the future trajectory of your company.

Should this concept strike you as worthy of further exploration and you would like to get a fresh perspective on what it could mean for your business, let us know. We would love to discuss how this journey might benefit your brand.

Use this link to open an informal conversation.

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