World has changed, now what?

Marketing and communication will not be the same as lock down conditions begin to abate.  Consumer confidence is in need of triage and should be foremost on your radar as you make plans to re-energize the business.

• Confidence in their own safety.
• Confidence in your businesses’ on-premise and product safety protocols.
• Confidence in how and where they shop for food, whether that be from grocery or restaurant delivery.
• Confidence your brand has their best interests and welfare at heart.

This checklist is intended to help inform your thinking and strategy in light of the transformational lifestyle shift consumers have experienced.

You might agree that any marketing plan must be founded on respect for the consumer’s mindset and behaviors. Families have endured one of the most harrowing, precedent-setting and impactful changes in their world, ever.

What we know about the COVID-19 impact:

• Health and safety are the top priority for people.
• At home is safe, out of home is not safe.
• Invisible threats exist that can impact your health or take your life.
• These events have disrupted every aspect of living and society.
• People cannot control these conditions and are forced to adapt based on self-diagnosis of their own needs and preferences.
• What consumers value changes when life is literally upside-down.

The key changes:

• At home: time and space have become more fluid, less regimented.
• Blurring of home and work separation.
• Desire for guidance on home-focused activities from exercise, to gardening to cleaning/decluttering to baking/culinary.
• Digital experience now a necessity for art, music and escape.
• Content consumption is nearly 24/7 as average weekly screen times skyrocket.

Top priority for people:

• Physical, mental and emotional health.
• Staying well.
• Boredom, anxiety and uncertainty meet desire to be distracted/inspired/entertained, productive and composed.

What we know about people:

• Human beings are feeling creatures who think – not thinking creatures who feel. Emotion governs behaviors, decisions and actions.
• How brand relationships are cultivated and built must adjust to be respectful of where people find themselves, emotionally, now.

Marketing and communication priorities

Insight:

Every brand is unique; what do your core users care about, need, want, desire?

Diagnostic:

Is the brand correctly positioned for shifting lifestyle relevance and empathy?

Strategy:

Holistic solutions that answer, tangibly, how you can help improve your core users’ lives.

Media:

Digital first and emotionally relevant content is king.

Social:             

Now more than ever social community building is embedded in the desire for conversation and interaction. Witness Zoom is a verb and people long for regular contact and interaction. Social channels have acquired an entirely new and uplifted value proposition.

Tactics:

• Overwhelming importance of shared purpose, meaning and values in messaging.
• Emotional communication vital to engagement.
• People believe other people before they believe companies – who is speaking?
• Health is the new wealth – your brand is the guide, expert and coach.
• Storytelling vs. story-yelling – days of shameless brand self-promotion are over.
• Consumers feel out of control, how can you give it back to them?
• Trust creation as core brand platform – earn belief through higher purpose.
• Be careful, data can be a false god – algorithms don’t dream.

Secret sauce to success:

Put your consumer at the center of planning, decide relevance matters most and work backwards from there.

To help you navigate these unprecedented changes and chart a course to sustainable growth Emergent can provide deep CPG and retail marketing experience, insight to consumer behavior, health and wellness lifestyle expertise and transformational ideas. Use this link to let us know if you’re ready to explore new solutions.

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

Cultural shift impacts marketing strategy

Your marketing planning and strategic game plan will need to change to maintain relevance as the global pandemic creates a seismic cultural shift in how people behave and how successful relationships are formed between brands, retailers and consumers.

Here’s what you need to know about the basis of these transformative differences and their impact on your strategic communication plans.

The pandemic has served as the world’s greatest and most impactful, harrowing lesson on vulnerability. Regardless of age, income, career or social status, COVID-19 has reached into every corner of society to show that a highly contagious, invisible disease can move quickly and freely to impact every aspect of social and family life, career, health and wellbeing.

• According to a recent survey conducted by the American Psychiatric Association, more than one-third of Americans say the pandemic has had a negative impact on their mental health.

Economic disruption, societal upheaval and social isolation have generated lasting deviations in how people behave – working to permanently alter life priorities and preferences. What people cared about in December of 2019 is radically different today and isn’t likely to subside in the future.

What was once important is less so now

The accumulation of assets and material wealth as evidence, goals or symbols of life success and fulfillment have fallen away, replaced by health and wellbeing as the new marker of desired “wealth” and personal success.

Anxiety, stress and loss of control have also created an open opportunity for brands and businesses to be a source of credible guidance on more mindful living, and reasserting lifestyle control with investments in personal health and wellness. It cannot be understated: the foundation of brand building is moving away from a transactional approach sewn into the fabric of marketing thinking for the last 50 years. It is resettling now on the requirement to create deeper meaning and a more personally-relevant, useful brand value proposition.

Simply said, you’re going to have to genuinely care deeply, organizationally, about the health and wellbeing of your customers and consider how the brand can contribute to improving their lives. This may sound like a water is wet statement, but in truth, it is an entirely different way of looking at the brand-to-purchaser relationship.

Moving from features, benefits and price cuts to empathy and care

Repeatedly stating ‘we’re in this with you’ isn’t sufficient. Brand and business behaviors must match the cultural shift to managing health and wellness – and operate in sync with how consumers are living and how their needs have morphed.

Higher purpose marketing is first about valuing the customer relationship in a different way. We can define it as putting the brand and business ‘in league’ with the consumer on their life journey, looking for ways to be of tangible value as they seek answers to some significant questions about how they should live and what the future holds.

This more empathetic view of how to communicate should be based in ongoing, continual investments in consumer insight research, designed to assess their attitudes and concerns in a downside of the curve and eventually post-pandemic world. When the brand is able to accurately mirror consumers’ views and desires, the opportunity for relevance is secured, and permission for a conversation is earned. ‘Talking at’ people about features and benefits is a sure pathway to disconnect because it casts the brand as hero of the storytelling rather than the consumer – who must be the hero in all brand outreach.

Data underscores the shifts in behavior

According to a recent national survey by Bernstein, nearly 60% of consumers report a surge in scratch cooking at home.

• 35% say they care deeply about their wellbeing.
• 30% say they plan to eat more healthfully.
• 38% are looking for real food ingredients and packaged products with simple labels.

In fact, the study reported that health and wellness is on the rise as a key consideration when people shop for food. Consumers say they will increase consumption of vegetables, fruits and other fresh foods, while they reduce purchases of highly processed products and foods that are high in fat, sugar, carbs and salt. The current spike in sales of processed packaged foods is likely to be short-lived. Consumers post-pandemic will worry less about emergency stock-ups and instead turn their attention to managing their own health and wellbeing.

In a related study by AMC Global and reported in Food Navigator, 52% are increasing their use of online grocery shopping platforms, and 25% say they expect to continue using online channels after the restrictions are lifted.

• 38% plan to more fully support local businesses and product sources.
• 32% expect to continue cooking more meals at home.
• 35% intend post-pandemic to spend more time with their families.

Post-pandemic planning insights

For food, beverage and lifestyle brands and retailers, health and wellbeing should be a centerpiece in your messaging strategy and given consideration as a focus of content creation strategies. It is the most important and viable way for consumers to regain control of their lives, and to address what is now one of the most significant concerns they have: protecting themselves and their families from immune system vulnerabilities, while enhancing their comfort and wellbeing.

A more holistic view of health and wellness should factor in stress and anxiety as a key component in healthy living strategies by offering guidance and information on ways to cope. Meditation and exercise can be an important way for consumers to administer self-care and address the uncertainty they continue to face in their lives.

The dynamic in how brand relationships are created will increasingly be based on reciprocity and operating in a manner that demonstrates the consumer’s welfare is a top priority, thus why transparency and trust creation will need to be addressed in communication and operations strategy.

The forced changes in routine home food preparation arising from the stay-at-home order, is likely to be permanent as consumers experience the benefits of exercising greater control over ingredients, portions and preparations. Brands should be working hard to operate as guide, coach and inspiration for aspiring home chefs who want to hone their skills and feed their creativity. Equally so for home-based exercise and fitness activities.

The pivot by foodservice operators to offer meal kits, groceries and culinary advice, is also likely to be a lasting business model change for the restaurant industry. Which brings us to the growing importance of the home as a centerpiece for social interaction, safety and security and now a place of work. This will favor digital-first thinking and enhance the value of media consumed online and at home.

E-commerce channel is going to get more and more use as the systems improve and the friction in ordering and accurate, timely delivery is removed. Brick and mortar retail will have to strategically shift to facilitate a more seamless experience in omni-channel shopping behaviors. The importance of web site and email marketing should rise as consumers increasingly look for helpful, valuable engagement rather than access to what is at most self-promotional or least an online brochure.

The efforts you make to invest in building social channel communities will get more productive as the brand voice moves further from self-promotion and more fully into offering useful lifestyle guidance and direction. This will facilitate a more interactive environment and encourage consumers to share their own stories, interests and concerns. Social proof is a vital part of creating belief and credibility with your best users and attracting new fans to the brand. If you want to attract to new fans to the brand, you need to start by being a fan of theirs!

Finally, people believe other people more than they do corporate voices. To the extent you are engaging outside third-party voices in brand communication, you have the opportunity to humanize the brand and create more authentic messaging. In fact, building a more human-like brand is a critical component to acquiring trust. Great care should be exercised in how paid influencers are deployed as the consumer increasingly sees these voices as compromised and less trusted.

Emergent is an expert resource to help you develop post-pandemic plans and strategies.

• Do you need support in consumer insight research to help inform your planning?
• Would guidance be helpful on building optimal messaging strategies and content creation programs?
• Would it be of benefit to have a creative resource help think through the evolutionary changes that will be required in how you go to market?

Let us know if you would like to talk informally about what comes next.

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

Pets integral to health and wellness, will drive the business

For several weeks we have predicted resilience for the pet food segment, and that is borne out in recent sales performance reports from Nielsen. Dog food was up 37.5% year over year for the week ending March 14, and up 54.7% for the week ending March 31.

While this may be attributed to some stocking up (and even hoarding) behaviors in and around the stay-at-home restrictions, the overall forecast for the remainder of 2020 continues to show modest growth, now projected at 4% for the pet food segment for the year, according to Packaged Facts.

Long term, the pet food business will not only weather the storm but will continue to grow despite the economic conditions impacting other business segments. Unlike the Great Recession of 2008 and ’09, the pandemic is a different threat, one that has served to greatly enhance the value proposition of pet ownership.

In a related story, Emergent has tracked a variety of reports from around the country showing pet adoptions are increasing as mandated stay-at-home conditions continue to favor the presence of dogs and cats in the household.

Human and pet food trends are intertwined

As many in the pet industry already know, the relationship between human food business trends and pet food are extremely close. According to a recent report from The Hartman Group on consumer response to COVID-19, stress and anxiety management have risen to the top as the fundamental driver for self-directed efforts to manage health and wellness.

Consumers are laser focused on developing ‘nurturing habits’ to help them feel well. Conversations about mental health have been de-stigmatized in recent years and consumers believe their wellbeing is tied not only to physical exercise and better eating, but also to their ability to manage stress in their lives.

Dogs and cats are known stress-reducers. Hartman goes on to report an uptick in physical activities among home-bound households, as people work to resolve their growing needs for physical and mental wellbeing. Dogs, especially, are part of this regimen as anecdotal reports continue to escalate about increased frequency for dog walking and outdoor activities involving them.

Emergent believes these trends form the basis of resilience for pet food, even as other sectors in pet care, including Veterinary services and pet boarding, face increasing headwinds.

Pet Food Processing survey underscores continued growth

A recent survey conducted by Pet Food Processing reports 63% of pet food manufacturers have seen an increase in demand fueled by novel coronavirus conditions.

Other relevant data useful for planning:

57% of pet food brands are seeing growth in the e-commerce channel, and 30% say distributor sales are up.

25% are experiencing growth in grocery, supercenter and club channels.

73% are reporting no current declines in any channel.

28% have reported no material changes in their business results.

20% have experienced disruptions in the supply chain, an area of vulnerability.

Rigid demand supported by value surge

Now is not the time for pet brands to go dark in the midst of economic uncertainty. Dogs and cats own a unique and special position in the home that will continue to elevate their value as part of the household budget. History shows repeatedly that brands which continue to invest in times of economic challenge show comparative growth and increased share of market, as a reward for their perseverance.

• Rather than focus on protein percentage wars that have been a familiar refrain for some time in pet food marketing, Emergent recommend brands become more focused on pet lifestyle relevance and the incredibly important bond between pets and their parents.

The pandemic has served as an ultimate reminder to people about why their pets matter and how much they derive personally from the relationship. Scientific studies that for decades have shown a positive relationship between pet ownership and the physical health and wellbeing of owners, is getting the biggest global real-world test in the history of the industry.

While the year on year growth will be more conservative than previously forecasted (pre-pandemic), it is nonetheless a viable condition to manage, unlike other businesses now struggling with relevance and priority.

We anticipate the demand for pet food to remain steadfast based on the growing evidence that pet ownership is irrevocably tied to human wellbeing.

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

This is the moment to help consumers adopt a healthy lifestyle

COVID 19 has changed everything for consumers, who are now looking for ways to get back in control of their lives amidst unprecedented uncertainty. Food, beverage and lifestyle brands and retailers have an enormous opportunity to step into this need right now and help consumers do the one thing that can help protect themselves and their families from the advance of the pandemic: take control of their health and wellness.

• Strong immune systems are supported by optimal health and wellness and can be of benefit to everyone no matter their age. While the world operates uncontrollably around everyone, the ability of people to acquire healthier eating habits and experience other activities that will enhance their wellbeing, is within their grasp.

We have growing evidence that brands are becoming more relevant (important) than public institutions as a source of help and inspiration in these trying times. If you are considering where to place your bets on messaging and communications strategy, supporting health and wellness is your new calling.

Emergence of higher purpose strategy

For years now we have continued to publish routinely on the shifts in public sentiment and behavior that merit brand’s adopting a higher purpose to govern their decisions, operations and marketing. The pandemic serves as a catalyst for making this strategic endeavor a fundamental part of sound marketing best practices. The days of self-promotion and strict transactional thinking about brand building are over. More enlightened brand support is required, especially in view of the transformational change brought on by COVID-19.

Brands need a relevant, useful, valued voice right now, one that helps inspire people to adopt the changes that will help benefit their own health. This is the strategic path to establishing your brand’s higher purpose.  Content creation here can vastly improve the traction and engagement levels of brand communication in any relevant category, from better-for-you beverages to pet food.

The role of the higher purpose brand in health and wellness

The role of your brand in this important mission is as credible guide and advisor on the path to enhanced health and wellbeing. The instruments to deploy include:

• Healthier eating, preparations and menus
• Enhanced exercise and wellness regimens
• Improved sleep, relaxation and physical renewal
• Stress reduction and emotional management
• Family engagement, learning and relationship development
• Integration of pet lifestyle in all of the above
• E-commerce shopping tips and guidance to navigate dietary and wellness objectives

Stated simply, the best path is a holistic one that recognizes the integration of physical, emotional and spiritual needs – fundamental to enriching the lives of your customers and making a difference in how they successfully address the upheaval they’re experiencing.

Deployment of third-party voices

Key to activation is the use of outside third-party voices to help tell your story. Whether they are ‘real consumer brand fans’ who want to be of help to those around them, or experts in these subject matters areas from nutrition to culinary guidance.

Restaurant businesses are not faring well, and your efforts here could provide a new voice and relevance to chefs at a time when they need other channels of opportunity. Believe me, they want to help, too.

This is not the time to go dark

Ample evidence exists that brands who continue to invest, who continue to actively engage their consumers, come out ahead in sales growth and market share positions during tough economic times. Consumers remain open to receiving marketing messages from brands, especially those that have their best interests at heart.

However, the character of the message becomes ever more important and why the health and wellness platform for communications is directionally significant. Helping people get back in control of their lives is an important call to action. You have an opportunity here to earn their trust and their attention.

How Emergent can help you

1. We can help you shape strategy around a higher purpose mission, tailored to the unique characteristics of your brand, business and consumer.
2. We can build a compelling messaging platform that provides guidance to all external and internal communications efforts.
3. We can help you identify and secure the right outside voices to help build trust and validate what you want people to know and believe.
4. We can help you create content and execute outreach in earned, owned, paid and social channels of communication.

Let us know your questions and challenges. We’re happy to help in any way we can.

After all, we’re all in this together.

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

New research flags brand trust declines amid crisis

A new report from Forrester Research concludes consumers are growing less optimistic that brands will keep their promises. Of all the significant attitudinal changes occurring, trust rating has fallen the most and is in dire need of improvement.

How you respond to this crisis of confidence and belief will impact business outcomes and reputation going forward. A change in message and brand voice is required, and we have guidance to provide. First a little more texture on the current situation and how it informs content strategy.

Contributing to the attitude shift, according to Forrester data, is a pervasive feeling of consumers ‘being out of control’ with their lives and the environment around them. Uncertainty has a way of unsettling people and how they perceive the world around them, casting doubt about whom to trust.

The acid test for consumers now: will the brands I care about put my needs and concerns first?

Two important insights from the research:

1. Consumers are looking for information, entertainment and ‘adventure’ to help fill the void. Online engagement is up significantly as people work from home and are otherwise confined to the house. Online content strategy decisions are critical here to optimize messaging for relevance to their needs.
2. Consumers remain open to receiving marketing communications from brands. While this is encouraging news, it is also a slippery slope if the messaging is deemed overly self-promotional or tone deaf to the crisis around us.

When the dust finally settles, people will remember…

There will be winners and losers coming out of the current conditions. Brands that work hard to express care and concern for the health and wellbeing of their customers, who authentically work to guide, help and assist stand to gain additional business, followers and fans.

Brands that go dark, stop communicating and otherwise, in effect, abandon their customers or willfully treat them like walking wallets, will face other difficulties once the COVID-19 crisis is over. People will remember those who stepped up, those who continued to operate in service of their needs and concerns vs. those who didn’t.

Now is the time to double down on your outreach efforts. Your immediate goal is to deploy content that strikes the right emotional chord and builds trust.

Emergent’s content guidance

• Address the isolation. People are living in an extraordinary period of social distance. Beyond the uncertainty about health, wellbeing, and what lies ahead, the opportunity for social interaction is greatly diminished beyond occasional Zoom meet-ups and Skype calls. How you activate your social channels to create community and conversation is vital.

• Demonstrate integrity to neutralize consumer skepticism. Time to step back and consider ways to actively show how promises will be kept, that you are walking the walk of higher purpose and commitment to their needs.

• More specifically, how your company and brand is prioritizing their health and wellbeing ahead of financial objectives. Research shows 58% of adults don’t trust a brand until they witness real-world proof that promises are being kept. No doubt there are ways to bring this to life.

• Assist people in regaining their sense of control, by providing ways for them to exercise control in their relationship with you. Where appropriate, give them the reigns and ability to carry a decision forward.

People trust people first

Perhaps the most important guidance we can provide concerns the medium that is carrying the message. Corporations only begin to sound human when they enlist real people to speak on their behalf. Third parties and expert voices are critical in these times to humanize the brand voice and validate what you want people to believe.

The new advertising in this era of unprecedented change is about authentic storytelling. Stories that serve and inspire people around meaningful behaviors and events that demonstrate true caring and compassion.

This is your higher purpose right now. Are you ready to step up?

If you need help navigating in these uncertain times and experienced support to refine messaging, please let us know.

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

Higher purpose works when lived

My wife Kristen and I last night went to what’s affectionately known in Chicago as a ‘Blackhawks Bar’ (code for sports bar with lots of TVs and the sound on during a game) in the West Loop area called WestEnd. We were there to watch the Blackhawks play the San Jose Sharks. Both of us are avid fans. To our left was a table occupied by three Chicago police officers who were grabbing a meal together.

Kristen motioned the waitress over and said, “I’d like to pay the check for the officers over there.” She does this routinely, early and often – and before the game was over, she did it again for another group of officers who were also dining nearby.

She believes that police officers put their lives on the line daily to help provide safety and protection in what is largely a tough and thankless job. Her effort to buy their dinner was a small gesture of appreciation for their service and to telegraph they are valued. She said to me, “I believe in them and what they do, it’s the least I can do to show some support.”

Her effort was genuine, heartfelt and an expression of her values.

We have published extensively about the importance of higher purpose and deeper meaning to brand growth, at a time when people care more than ever about how businesses contribute to making the world around us better. The goal to operate consistently on a level that transcends commerce and aligns the business with inspiring values and unselfish behaviors.

Kristen’s gesture was based on her beliefs. She lives and breathes this way and I for one am honored to have a person like her in my life. So it is that convictions and actions can contribute each day to improving the world we live in.

Sometimes it’s important to step back for a minute and examine how we can author this kind of thinking inside the businesses we run. Our actions always and forever speak louder than our words. When we live it and do it, it can influence the culture around us and inspire others to join us.

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