A massive leveling has commoditized advantages…

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

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

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

Seth Godin marked the change beautifully in a recent post:

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

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

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

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

All of these things are now incredibly cheap.”

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

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

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

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

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

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

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

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

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

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

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

The large brand paradox

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

“We’re too big to fail”

“We’ve always done it this way”

“Our growth is aligned with the category performance”

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

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

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

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

“What if we (read: I) fail”

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

The new rules of engagement

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

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

The beauty of a level playing field

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

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

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

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

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Your customers are not analytical decision-making machines…

When consumers approach a purchase decision, are they focused on the merits and benefits of what you’re offering? Research on human behavior confirms that other issues are dominating their judgements. Read on to find out what’s really happening.

• You might agree marketing and business strategy that is informed with a clear understanding of the human being you want to reach is going to be massively more effective than efforts that don’t take into consideration what we now know about how people make choices.

Ground-breaking behavioral research conducted over decades by renowned psychologists Amos Tversky and Danny Kahneman on their Theory of Regret, forever altered the false assumption that humans are rational and analytical – making decisions based on objective consideration of the facts.

Today we will unravel the mysteries of how people behave to provide you with clear guidance on what the customer is actually thinking and doing.

People will pay a premium to avoid – wait for it – regret

According to scientific research, consumers’ 99.99999 percent of the time are working to sidestep making bad choices. Tversky and Kahneman’s analysis of choice decisions demonstrated that people focus on minimizing risk in order to reduce the chances of any regret. Said another way, people are not seeking to maximize benefits, instead they are trying to prevent or duck an unfavorable outcome. Boom.

• Most marketing activity is based on presenting gains, wins, benefits to an audience pre-occupied with trying to determine if what’s on offer is a gamble (path to potential regret) or a sure thing.

Kahneman expressed regret theory in real-world terms this way: The nearer you get to achievement, the greater the regret people encounter if you fail to achieve it. The more control you believe you have over a gamble, the greater the regret experienced if it turns out badly.

People reflexively face regret for:

• What they have chosen
• What they wish they hadn’t chosen
• What they should have chosen

What’s truly operating on the path to a purchase decision can be observed in any hesitation or reluctance (abandoned cart) to take an action. How the consumer is looking at the options before them follows their attempt to determine –

• What is a sure thing
• What is a probable gain
• What is actually a gamble in order to secure a gain

When choosing between a sure thing and a perceived gamble, a person’s desire to elude loss exceeds the desire to secure a gain!!

Not surprising, people will pay handsomely for certainty. They will take the sure thing over the perceived dice roll every time. Thus, the power and impact of a well-defined brand with deep equity, trust and a strong value proposition.

So what exactly is this loss people seek to avoid?

A loss occurs when a person believes they’ve ended up worse off than their reference point. A reference point is a state of mind based on the status quo, or a standard defined from where they started. Please note, a gain or loss will always be connected to how a problem is presented. Changing the description of a situation can make a gain seem like a loss and vice versa.

Implications to marketing planning and strategy

A consumer world balanced on the pin of regret avoidance is a cry for certainty, surety, belief, trust and confidence.

• What risk reduction tools are you using to erase loss while canceling potential regret?

It’s important to proactively manage the conditions, language and perceptions that influence consumer belief.  You want to erase uncertainty and the possibility of a bad outcome.

Where to start?

Descriptions – Language matters, how a problem or situation is framed can help or hinder the assessment a customer is inevitably making about certainty and risk avoidance.

Social proof – Consumers find claims of performance and outcome made by companies to be less trustworthy. They will believe their peers before they will believe you. Thus, social channels that behave more like communities where sharing is encouraged, perform the valuable service of offering assurance that what is promised is indeed consistently delivered.

Familiarity – If you’re working on the next great leap in food technology beware of pushing the science wizardry too hard instead of focusing on the more familiar, comfortable and assurance-building principles of food, nutrition and culinary cred for a product consumers will put in their bodies. People are wary of anything that appears to be too far away from the familiar territory of foods they understand and believe are real, safe as well as satisfying (taste).

Transparency – The more you disclose about how you do what you do, the more comfortable people get. This feeds the certainty of knowing exactly what’s in the product you make and where ingredients came from, while also speaking to integrity and honesty – two qualities people believe are sorely lacking in business behaviors.

Third party validation – Most product categories have identifiable subject matter experts and influential voices that bring credibility and cachet to the messaging table. If you turn them into promotional shills, their value is lost. Let the expert voices make independent evaluations of what you do and how you do it. Give them room to report on their observations and let the credibility flow from a respected voice that isn’t your own.

Verifiable assurance – For a cheese client experiencing a high degree of adulteration and food fraud in their category, we created a trust mark backed by one of the most respected food labs in the nation. They were given free rein to acquire products at retail independently and submit them to a battery of tests that verified the veracity of how the products were made when compared to the Federal standard of identity. It was proof the products were genuine, authentic, real and what was represented on the label was indeed accurate and truthful. Trust marks and third-party validation can bring another level of consumer confidence to the story being told.

Now you are aware that this universal human trait of risk avoidance is a dominant consideration for people on the path to purchase. Your objective, then, is to work accordingly to secure confidence, trust and belief in a manner that reduces or eliminates any perception of risk or uncertainty that might fuel consumer regret.

• Do this, and you will answer what most often lies at the foundation of a disconnect for people who are unwilling to try your new product or store. Why? Because they see risk of a bad outcome if they don’t like it or concern it won’t deliver on their reference standard expectations.

Is it time to audit your marketing plans and messaging strategies to ensure the psychology of risk is fully addressed? If so, use this link to invite an informal conversation with a team of experts who understand the anatomy of trust creation.

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Trust in advertising report spotlights the true path to consumer engagement…

Is it possible what your brand stands for will be more important than the product you make?

Yes. Read on.

Nielsen’s latest Global Trust in Advertising Report confirms a cultural sea change has taken place. The comprehensive survey advances new guidance that brands and retailers should reconsider their traditional single-minded devotion to product-centric communications strategies. The report signals emergence of a different roadmap to credibly and effectively secure consumer attention. A more enlightened path that is paved with higher purpose, mission and values ahead of glossy product features and benefits.

The rise of interest in more human-centric values reflects consumers’ need for trust in a marketing environment they believe lacks credibility and validation.

Don’t underestimate the importance of cultivating trust to brand communication effectiveness

For five years, Emergent has tracked the steady decline in brand and corporate trust alongside the parallel rise in why businesses must put the consumer and their requirement for trusted relationships at the center of strategic planning. Is this a feature in your marketing plan?

• A recent sustainability trends report published by Mintel concluded one of the greatest barriers businesses face in getting credit for sustainability readiness is the consumer’s dramatic shortage of trust in their claims of performance. People find it harder to believe assertions made by companies on their commitment to sustainability standards and mitigation policies. (Hence the need for credible validation).

Nielsen’s study verified that consumers are placing greater importance on values, beliefs, inspiration, deeper meaning, humor and family. According to Cathy Heeley, Nielsen Media Analytics Lead, “People are much more interested in how a brand is going to help the world, not just what benefits a product has to offer. Consumers are looking at what brand values actually mean, what they stand for and their practical application.” Actions always speak louder and more believably than words alone.

Leaders across the globe should be asking: how do we propel and harness the power of our brand as a force for purpose that creates deeper meaning and societal benefit?

• Brands should declare a clear point of view and create inclusive spaces of belonging.
• They should also provide an opportunity for people to make a difference, while securing the greatest opportunity to generate impactful meaning in the world.
• This commitment acts to galvanize both users and employees.
• Now more than ever, leaders and decision-makers should cultivate a workforce while serving consumers in a way that requires the brand to stand for more than just profit.

The oldest millennials are entering their 40s, while Gen Z is carving its own unique space in the working population. The traditional hierarchical structures – two-week vacation policies and in-office incentives that are linked to growth – are no longer motivating enough to join an organization. The new generation of workers values higher purpose before profit.

Why are brand mission and values rising in importance to people?

Cultural change sits at the foundation of how these changes manifest and how consumers think – an important consideration when deciding how best to frame marketing strategy and communications effectiveness.

We are witnessing a cultural evolution. It first started in the early aughts following 9/11 when the disruptive shock to the nation caused people to re-evaluate their priorities and focus on relationships, family and values over other lifestyle and career considerations. Simultaneously control in the brand-to-consumer relationship was shifting entirely away from companies.

The Internet served as a fantastic enabler of consumer awareness and learning that also exposed the weaknesses of conspicuous consumption.

Dawn of the relationship economy

Underneath these cultural moves came a transformational change in the brand to consumer relationship, now taking on the characteristics of what we treasure in our human relationships – trust, meaning, reciprocity, values, investment, care and consideration for others.

Simply said, people want to be part of something greater than themselves. The search for deeper meaning was fully underway and with it came the initial priority placed on health and wellness and how choices will impact their quality of life.

Brands today must act as guide, coach, trusted advisor and enabler to consumers on their life journey. Yet more often than not, we find marketing strategies still anchored in self-promotion of product feature to benefit, embedding the brand communication with a systemic disconnect due to the weakness in consumer relevance.

The next evolution coming in 2022 – societal change and sustainability

Meanwhile trust in government as a catalyst for societal change has also diminished. Consumers now believe that companies are in a unique and better position – and have an inherent responsibility – to enact positive societal improvement.

Chief among these concerns is the hyper-focus on sustainability that has morphed into more specific questions about how companies source materials, ingredients and how they operate in a way that mitigates carbon footprint rather than contributing to the emerging chaos of climate change.

What should you do?

1. First and foremost, refine and optimize your brand’s higher purpose platform. Profit is not a purpose. A human relevant and meaningful purpose is a purpose. This isn’t a call for philanthropy. Instead, it is about anchoring the business in a mission reflected through how the entire organization operates that is centered on the consumer and the changing world around us.
2. Insight research will be required to better understand the specific details of what your best users care about, what areas of sustainable performance matter most, what needs they prioritize on their life journey and what barriers stand in the way of their success and achievement.
3. Operationalize your policies, sourcing, behaviors, standards and commitments to achieve alignment with your stated mission and your commitments to sustainability readiness.
4. Reconsider the entire brand message map to optimize the focus on your consumers’ needs, their desires, how you can help and support them, ahead of a linear trip into feature/benefit selling. The product message can be woven into the narrative. But it should be crafted within the coaching and guidance paradigm rather than straight self-promotion.
5. Bring social channel strategies into clear alignment with this strategic approach. Social is exactly that – an area for users to share experiences, ideas, concerns and success stories. Too often we find social treated as a monologue of outbound product selling rather than a community founded on conversation. Your social content platform should be built around engagement not just selling. This is harder to do than it appears.
6. Looking ahead, recognize the significance and importance of cultural change and the related dynamics of consumer attitude shifts that will be reflected in behavior changes. Things are evolving at a faster pace now and staying on top of this is vital. There is no such thing as resting on your laurels.

Evolution. Change. Transformation. Speed and Humanity should all be held close.

What do you think 2022 will bring in changes and shifts to strategy? Use this link to share your views. We will publish the observations and comments in an upcoming post on 2022 marketing best practices, as envisioned by you, our valued readers.

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Company beliefs and behaviors impact business strategy

Your entire organization comprises the marketing platform now. Your higher purpose, mission and belief systems will impact your company’s marketplace behaviors and status. Operations, supply chain policies, manufacturing and employee commitments influence how consumers and stakeholders perceive your brands and resonate to your business.

Marketing is no longer a department. The entire enterprise is integral in the strategic game plan to get and keep a customer. It is time for leadership teams to acknowledge this insight and take the strategic planning silos down in the interest of improving the organization’s growth and advancement plans.

Still a department?

An objective assessment of many CPG and food retail businesses would conclude that marketing operates as a department, likely down the hall from sales and human resources. This compartmentalized organizational structure has been cast in stone for eons. It came to be in the command-and-control era of business management. That condition, however, has changed forever. In the age of consumer control, it is vital that customer-centricity reigns as the operating philosophy governing how companies organize for success.

• Our challenge to you – it is time to reconsider how the business is assembled when you know your thinking and planning will be influenced by how the customer is prioritized (or not) in the hierarchy of business operations and policies.

Traditionally, marketing has owned responsibility for interpreting consumer insights, developing brand communications strategies and product promotion intended to sell more product to consumers. Marketing was usually seen as the alchemy of awareness and persuasion linked to driving the sales funnel from consideration to purchase among increasingly elusive users.

• Consider this: now, literally every aspect of how a company behaves, makes decisions, its belief systems and values, how operations unfold – literally everything from the factory floor on up has a role to play in the organization’s ability to get and keep a customer.

If this is true, then every discipline within your company is involved to greater or lesser extent in the activity of marketing, whether it’s acknowledged or not.

Attracting and retaining customers will happen in direct proportion to the organization’s ability to operate fully in service of customer needs and wants. If your company ultimately exists to get and keep customers then increasingly this requires not only a single-minded focus on user aspiration, but also a robust frame for corporate citizenship in an increasingly issue-driven business environment.

Sustainability is a generational-level challenge that will influence every aspect of how you plan and succeed as a business

How well employee practices, operations, supply chain, manufacturing, and policies drive ESG and carbon footprint commitments is integral to successful marketing outcomes.

The marketing mission, therefore, isn’t just refining communications strategies focused on showcasing products and services, the entire proposition must embrace how the organization best operates in service of people and the greater good.

Higher Purpose is not a marketing program

Your company is a living, breathing entity. It is no longer just a machine designed to generate and sell products at a profit. It exists to be influential in your customers lives and to make a difference in addressing some of the most challenging conditions ever faced by humanity.

Your company’s mission, beliefs, values and purpose fly above the legacy goal of generating shareholder returns. When purpose and mission are viewed in this context, it contributes to a revelation that the entire enterprise informs how your offering is perceived. It impacts how consumers interact with your brands, what your narrative is and how you contribute in tangible ways not only to their lives but also the planet’s welfare.

A purpose-led organization will operate with greater clarity and intention. The mission acts like an anchor of deeper meaning where employees and customers alike join the business as advocates and believers, not just participants in a transactional process.

Getting and keeping the customer

For decades, the food and beverage business was largely driven by taste, price and convenience.

• The technology to enhance and deliver taste and eating experience is refined and is now table stakes.

• Price is a relative term that moves up and down in relation to a sense of economic prosperity or uncertainty.

• Convenience has been flipped on its head as e-commerce facilitates friction-free shopping and culinary culture holds sway over 1970’s box and can food culture.

• Consumers care more now about values, transparency, health and wellness, supply chain commitments, animal welfare, sustainability practices, empathy, unselfishness and employee treatment.

Attraction and engagement depends now on the company’s ability to participate as a positive force in their lives and society. To market itself successfully all corners of the organization should operate like a well-tuned symphony that authors credibility and trust.

So marketing is not a department. It is the nerve system of the organization constructed to operate in service of customer aspirations and goals. This will make strategic planning a team exercise to identify barriers to productive growth and remove them. In its place is a flatter organization that empowers team members who contribute to helping the entire enterprise meet its mission obligations and build relevance.

HERE is a link to download our two-page summary of what Emergent is and does. We encourage you to take a look and let us know if you are interested in exploring a fresh perspective on how your organization and brand can optimize its growth strategies. We can help you craft and tell an improved story.

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Time to banish the old marketing playbook

Remember the good old days of command and control, interruption-style marketing and business development strategies? Consumers were viewed as “targets” to be persuaded through repetition and subtle manipulation of their emotions or pocketbook sensibilities.

Vestiges of this way of thinking remain handcuffed to far too many brands that continue pushing feature, benefit and price messages at consumers in both digital and analog channels. Thus, why engagement is increasingly hard to secure. Consumers have become serial avoiders of self-promotional brand outreach as a result. No one likes to be “sold.”

It’s time to stop, reconsider and move on to build more human-centric brands.

Think for a minute about the people you care about in your life. Your family, friends and colleagues. Those closest to you enjoy a special position of value and affection. You’re concerned about their welfare and wellbeing. You make time for them, cherish them and invest in their progress. In short, you care. You express love in words and deeds. You listen. You help. You support and respect them. Moreover, you don’t see those relationships as merely transactional.

Now think about your business behaviors and how customers are viewed and treated. Is it the same? You say well, we’re in business to sell our products. To be sure, but maybe the goal of share and volume glory follows a different path now. One that is built on a model of reciprocity that looks more and more like the valued relationships we have in real life.

Not ‘data points’, they’re human beings

What are the five things your customers want from you?

1. Inspiration
2. Advice
3. Guidance
4. Education
5. Entertainment

We have moved from a product focus to content. Are you optimizing the brand communications arsenal for help over hype? Here are three observations that should be considered in developing human-led brand communication.

Utility over cleverness

This may be the toughest consideration of all when viewed through the lens of ad creative traditions. It has been the province of creatives in the agency game to be focused on translating a key product selling proposition into the artful headline or theme. The theory: engagement is achieved through artistic wordsmithing. An artful turn of phrase or catchy tagline is prized as an achievement on the road to being “intrusive” and therefore noticed in the vast sea of message overload.

Times have changed and while great copy is going to be a key driver of engagement, the character and content of the communication is better served through its usefulness rather than pure cleverness alone. Attention is hard to secure. The path to gaining consumer participation is better aided by providing relevant value. That means the message moves closer to serving the consumer’s role as hero of the brand story, in a narrative that is helpful and educational more than self-promotional. It’s about them not us.

Someone is better than everyone

The definition of sound strategy is making tough choices. When the intent is to be all things to all people, the outcome is mattering to no one. It is better to focus on someone rather than everyone. To do that requires sacrifice. It means you select an audience cohort closest to the center of your most ardent user base. Then zero in on what they want and care about. Prune the rest.

In our own experience this played out to great effect when former client Sargento cheese agreed to focus on a consumer segment called The Food Adventurer. This audience of cheese lovers and heavy users care deeply about the quality of ingredients they use. They love to cook, pay attention to culinary media. They are routinely engaged on topics and content that help advance their skills in the kitchen and culinary creativity. By focusing here, Sargento created an opportunity to matter to an engaged audience of food fans, rather than speaking to everyone  (usually defined as moms with kids) across the expanse of the commodity cheese marketplace.

Make a choice, narrow the focus to those who care and are therefore listening.

Inspirational beats transactional

There is a great temptation to assume if you aren’t hitting hard on the product features and benefits, then you’re not selling effectively. But the world has changed. Gaining attention isn’t a math problem of calculating media channels to frequency of message distribution. If the relationship economy is respected, then you understand that winning permission for a conversation depends on following a different set of rules.

• Your brand voice is built around empathy and care for the passions, interests and concerns of your best customers. You understand that the role of the brand in this relationship is one of guide and coach. Your goal to help them overcome the barriers to their success and fulfillment.

Your brand becomes a source of encouragement and education. Sargento helps the home cook deliver on their passion for creativity in the kitchen. Boom – now we’re talking. Literally. Now we’re actually communicating rather than monologuing. The brand stops barking at people and begins to engage in their community and lifestyle in a useful, valuable way.

When you speak to those in your orbit that you care about, are you selling to them? Pushing self-serving messages at them? No instead you are genuinely listening and helping.

The enlightened brand building of our era begins with injecting humanity into the marketing plan by making consumers the center of it and deciding to earn a relationship based on valuable-ness.

The last word: “Every brand is now a B-corp” – Ana Andjelic, The Sociology of Business

We are in the midst of another evolutionary shift. Consumers care deeply about your values, mission and actions to address social issues like climate impact and sustainability. They care about the impact their buying decision has on the world around them. They have connected the dots between their purchases and a consequence. They want to identify and act on more sustainable choices.

You can help them do that. But be aware that substance and authenticity matter here. Your own sustainability readiness house needs to be in order before invoking solidarity with consumers on these concerns. Sustainability can’t be a message construct floating independently from policies and standards that address the company’s carbon footprint and impact on the environment. There should be clearly expressed targets and actions steps to mitigate those challenges.

Embracing sustainability is yet another way to put the brand “in league” with consumers on a culture imperative issue they care about and expect brands to be part of the solution.

All of this coalesces around one key point: when brands understand that customer relationships these days operate a lot like the kind we have with people we care about, then you understand how the brand should behave and engage in that setting. More empathy, guidance and coaching than promoting. It’s time for the more human brand.

If this guidance strikes a chord as you look towards strategic planning in the year ahead, then let’s start an informal conversation about your concerns and needs. Use this link and let’s talk.

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Early adopter behavior driving the marketplace…

Emergent appreciates our growing CEO and C-suite readership. Our goal is to provide meaningful trends analysis and strategic guidance through the Emerging Trends Report. We are introducing a special series – the CEO Bulletin – intended to inspire new thinking on organization planning and strategy. Should you have a topic you’d like us to cover – drop us a note. Your comments and feedback are always welcome.

Sustainability will be the most important strategic consideration for your company in the coming year, and Higher Purpose will be a key point of differentiation that helps move your performance in the marketplace.

Here’s why.

Sustainability is no longer a tertiary, benign or merely aspirational construct. This strategic imperative is connected to the health and wellbeing of the planet on which we live. Early adopter consumers see conscientious consumption as their flag and are empowered to signal to the world around them that climate-responsible products are their first choice. Half-baked solutions and absence of Climate Footprint and Life Cycle Analysis fundamentals that guide mitigation metrics will be exposed for all to see. These influential consumers are driving expectations, preference and marketplaces.

Being responsive to their Sustainability concerns isn’t just the “right thing to do” it is a source of competitive advantage and a critical point of leverage on the path to growth in marketing, distribution and sales leadership.

• Imagine the friction consumers are encountering right now because it’s nearly impossible to sort which product is a more sustainable choice at retail. The consumer’s priority is once again ahead of brand performance in the marketplace. Who will be first with the most? How will sustainability impact labeling and retail navigation?

When cultural changes take root, it presages larger shifts in sentiment – leading to momentum deviations that are an immutable guide to strategic investment. What should be at the forefront of your thinking now is the very real potential of ending up on the wrong side of this sea change. Not because the word sustainability is left out of your brand communication lexicon, rather because it is not fully, correctly built out, thus creating real vulnerabilities around greenwashing. People will notice, experts will weigh in, influencers will influence. There will be winners and losers in the “Sustainability Battles”.

Moreover, we have data and proof that fully realized sustainability strategies lead to share growth and sales leadership in your respective category. Why? The same rule applies here: because consumers care about it and support businesses that authentically walk the walk of climate impact mitigation alongside business strategies that clearly, emphatically support authentic sustainability practices. Consumers are watching. Early adopters are showing them what to do. This creates a steamroll effect that leads to category upheaval as smarter brands overtake the laggards and pretenders.

• Recent research conducted by IRI and the NYU Stern Center for Sustainable Business indicates consumer uptake of sustainability marketed products has remained strong despite the Pandemic. Sustainable brands outperformed conventional alternatives across 36 categories in 2020. The segment achieved 16.8% of total purchases in a banner year for CPG sales. 

Think differently

Sustainability practices should lead business strategy and will have a profound impact on new product launch initiatives. This isn’t just a corporate commitment, it’s an anchor at the street level to differentiation, meaning and value and must be fully baked into marketing planning all the way through to execution.

• What will your brand voice be on this? What evidence can you provide to the early adopters who know great practices from anything less than that? How is this integrated into your story and narrative? You already know that story-well-told is where all of this begins and takes root.

In a recent report at Pet Food Industry magazine, one quote-able source nailed the conditions squarely:

“Clean label will move into sustainability — how are pet food manufacturers being more conscious of the environment?” said Tammi Geiger, marketing manager U.S. for Oterra, a supplier of natural colors. “How are they producing their products so they are having a positive impact on the planet and even communities? Manufacturers will be asked by their customers to tell their production story and they will therefore put pressure on their ingredient vendors to have sustainability as a main focus. This can be a way to differentiate from other brands as well.”

Purpose is a marketplace imperative

You can see the pattern emerging. Purpose, beliefs and meaning equate to value and preference. The trouble with Purpose is you can’t bolt it on as a marketing message construct. Purpose needs to emanate from why your company exists, what you are doing to empathize with user needs  and how are you adding value to their quality of life in tangible ways.

Sustainability and higher purpose are family, joined forever in a union that showcases how people have changed, what matters and the real drivers of competitive advantage that goes way beyond the features and benefits layered into your products.

You need:

Purposeful brands

Purposeful labels

Purposeful shopping experience

Purposeful supply chain

Purposeful organization

Purposeful employee policies

Purposeful corporate soul

There is a natural tendency to lean in on technology and better mousetrap thinking. To be sure product quality and innovation are key to brand and business health. But the truth of the matter is brand beliefs, values and higher purpose matter even more on the path to success. The world has changed, and you must change with it to remain relevant and resonant.

The chin you lead with

Now more than any other time in the history of business and marketing strategy, uniqueness and differentiation are key to elevating your business above the vast degree of sameness and similarity that exist category to category, retailer to retailer.

Higher Purpose is a differentiator!

This is how your unique company DNA and value system gets wired into the brand narrative in a manner that’s own-able for your organization. It manifests in how your business operates to meet the life-journey aspirations of your customers. Note: you have to truly care about the welfare of the people you serve to make this work.

Our Brand Sustainability Analysis process is designed to optimize this requirement for the very reason it is aligned with consumer preferences and behaviors. The early adopters you encounter are the ones creating influence that drives momentum changes. What becomes popular, noticed and sought after should factor in to your strategic thinking.

• Purpose is a center-of-bulls-eye concept that works seamlessly into the sustainability recipe as a component of business and brand value.

If fresh perspective and assessment of your sustainability and purpose bona fides would be helpful to your planning, use this link to open an informal conversation with us about your needs. We promise a thorough, complete analysis of competitive advantage at a time when consumer behaviors are changing the game around you.

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