Often undernourished and under-served, strategic weaknesses create disconnects…

Every dollar invested in marketing is precious and ideally should be delivering a 10x return. Yet disconnects abound; engagement is often elusive and sales outcomes look more like getting lucky at the gambling table than a sure bet.

What’s wrong?

Most often the story isn’t right because the strategic game plan underneath is sub-optimal. It isn’t crafted to achieve consumer relevance and resonance. We discover the brand’s higher purpose, mission and values – what it stands for – isn’t fully leveraged or properly dialed in as a core strategy. Moreover, the brand story often isn’t really about the consumer – their needs and aspirations. Instead, it is focused on self-promotion of product features and benefits.

What happens when you put sub-par messaging into your communications channels?

• Your marketing investments begin to operate like a dice roll.
• Business outcomes curiously mirror the fate of the category’s rise or fall.
• Breakout advances in market share and velocity are more difficult to secure and so it’s back to the drawing board for further contemplation.

It doesn’t have to be this way. Investing time and thinking on the fundamentals of strategy and how your brand is packaged and positioned within the frame of its purpose – your “why” – can serve as a strong strategic guide for everything that comes after it in the marketing plan. Your top goals are to…

1. Tell the right story (mission-driven brand as coach, guide and enabler).
2. The right way (always heart over head to consumers as hero).
3. To the right audience (targeted to potential brand advocates and ambassadors).
4. In the right places (social, content and editorial).

The drawing board always owns the outcome

In the absence of world-class work on strategic thinking and refinement of what your brand is about, how it is positioned, defining what’s your unique purpose is and how you’ve accounted for radical differentiation – the brand communications effort is going to inevitably be more focused on “activity” – hitting singles and grounders rather than home runs.

Higher Purpose is magic

Simple Mills, an extraordinary higher quality brand of better-for-you crackers and baked goods, began its ride to fame by blending health and nutrition with taste using better ingredients. More recently the brand has found its higher purpose via a deep dive into sustainability readiness, commitments and performance. Their investments in regenerative agriculture are an iconic example of how food brands can establish themselves credibly as the sustainable choice.

Aqua Cultured Foods is pioneering the transformation of the sustainability challenged seafood category with products that replicate the seafood eating experience, but no fish involved in their creation. It isn’t a plant-based play to “mimic” fish, rather the deployment of precision fermentation to create an authentic analog to seafood without the fish. The environmental story here is remarkable and married to culinary experience. It is a compelling narrative.

Bond Pet Foods (client of Emergent) is about to transform the pet food industry with precision fermentation made proteins that come at a fraction of the environmental impact of animal-based ingredients. Meat, meat and more meat play a dominant role in most premium brand recipes throughout the pet industry. The story of feeding Fido without inadvertently damaging the environment is a significant shift for an industry with an intractable greenhouse gas emissions challenge. Sustainable pet food is about to become a reality.

Pepsico moving left and right throughout its system to address regenerative ag practices across its supply chain, while simultaneously making commitments that 100% of its packaging will be recyclable, compostable and biodegradable by 2025. The company understands the role of supply chain in emissions performance and is working to address challenging issues there. In a recent interview Denise Lefebvre, Pepsico senior vice president of R&D said, “we are prioritizing, investing in and expediting projects to build a more circular, inclusive economy.”

The path to sound strategy

Asking and answering better questions leads to improved thinking about strategy and brand mission.

Here are ten examples we use in planning:

1. What do you stand for?
2. How relevant and differentiating is it?
3. How compelling and credible is it?
4. What promise are you making?
5. Do you have the right products to deliver on that promise?
6. How are they positioned to deliver on your promise?
7. Are corporate goals and objectives aligned with the mission?
8. How does this impact your most important sources of business growth?
9. Based on this, who are your most valuable customers?
10. What should customers believe to help you achieve your goals?

Sound strategy can be served from a seemingly crazy idea

At one point in time Molson beer, Canada’s largest domestic beer brand, was suffering greatly in the U.S. import beer market. Molson had sold distribution rights to another U.S. brewer who proceeded to park the brand in its import portfolio and let it flounder there unsupported. Share declines were inevitable. The Molson leadership team stepped in and repurchased the distribution rights, formed a joint venture with Coors for distribution, and created a new company, Molson USA (MUSA), to handle marketing and sales.

Having formerly represented Molson’s chief competition, Labatt Blue, we pursued Molson and won the assignment to help MUSA rebuild the brand. Improved strategy came into play as we worked to enhance brand relevance and awareness. It’s important to note that in the beer business, distributors and wholesalers play a decisive role in the fortunes of any brand working to refuel growth, especially one with an uninspiring report card.

• Molson did more than 80% of its US volume in nine markets close to the Canadian border. To gain momentum the brand needed to extend its footprint in other high velocity import beer markets. To do that we needed to do something dramatic that would capture the attention of distributor decision makers in other key import beer destinations.

Molson Chiller Beach Party in Miami

Want to demonstrate brand legs and relevance? Move 1,400 miles south of your core territory into one of the nation’s most important import beer markets and generate traction. Molson Chiller Beach Party was an event concept built around iconography of snow and ice, with a heavy helping of an electronic music concert (The Chemical Brothers). But how could we capture the imagination of the industry while engaging young adult import drinkers in Miami?

We did something a little crazy but informed by a sound strategic mission: We wanted to generate awareness across the nation with a modest budget, and then push that effort directly to distributors. Stay with me on this – we put 270 tons of snow on Miami Beach in July. Surprisingly the machinery to do this exists. We rented a satellite video production truck and brought a video crew to the beach. Using large hoses and cameras pointed skyward, we filmed what appeared to be a freak snowstorm on South Beach. We asked young people (the target audience) nearby to join in the fun and make snow angels and snow men while attired in their bathing suits (proof its real snow).

Meanwhile we edited a 60-second video news package in the truck entitled “Freak Snowstorm in Miami.” At 2:15 pm we released a story and photos to Associated Press on the project. At 3:00 pm we uploaded the video package to satellite distribution ahead of 6 pm newscasts. Molson signage existed in the footage. Our goal to secure voiceover that the snowstorm was staged by Molson Beer as part of a concert event. The video news package was unique enough to get aired in over 100 markets. We quickly assembled a highlight reel of the news coverage around the U.S. and moved it to distributors as part of an on-premise promotions incentive package.

Molson’s business results turned around in the US supported by a novel move to generate news coverage a beer brand would normally never receive. We helped demonstrate how the brand was working to attract attention (among prime consumers of import beer) in a market far from its traditional home turf. What may have looked like a one-off consumer facing event strategy was in reality a move to gain investment priority from distributors.

Strategy, purpose, mission – and results

Asking the right questions, looking at the brand and business at its fundamental foundation of what it stands for and how best to elevate and differentiate it from others in the competitive set, can lead to outsized business results.

Oh one other thing, the Molson video and AP photo package was gobbled up by Miami news media. The resulting wave of attention drove thousands to the Chiller Beach Party and accounts nearby who were all featuring Molson products – happy distributor.

If you think it’s time for an evaluation of your strategic game plan and brand outreach, use this link and let’s connect.

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Advantages you can plan and design for

Food culture in America has dramatically shifted during the last 10 years. People favor premium quality, higher priced products that address modern dietary needs serving health, wellness and sustainability goals. Better food experiences, fresh ingredients, more sophisticated tastes and the brand sustainability symbolism that goes along with it help complete the mission and taste adventure. This is the preference paradigm where all innovations whether from legacy brand or new player must pay homage on the road to success.

• Here are four key strategies that hold sway over your ability to succeed, to grow and gain share for food and beverage innovations.

We highlight these four distinctive growth strategies in part because they are passed over all too frequently. Eclipsed by the allure of instant scale, every-new-retail-door-is-a-good-door and ill-advised distribution moves that undercut the very brand value proposition that premium CPG solutions embody. This helps explain the high innovation failure rate or seemingly insurmountable plateaus where new emerging brands stall out, never getting a shot at the high volume homeruns of wider adoption downstream.

Want to assure your brand innovations are successful and not a casualty on the path to pantry and fridge domination? Then read on.

1. Your product concept is the marketing lynchpin (watch out for the Special Occasion Trap)

Food retailers care about velocity and monitor it relentlessly. Marketers care about scale because velocity and scale together are the flags of a winning concept; thus, why growth nirvana for premium CPG success always begins with strategic product and category design. Your innovation goal is a product that naturally, intuitively fits with frequent if not daily consumption occasions and feeds high repeat purchase behavior. Retailers understand this and look for it.

Products that are intended for niche, episodic occasions are much harder to score scaling victory for the very reason they don’t lend themselves to velocity, high repeat purchase business imperatives. If fancy jams are your jam, be prepared for the embedded difficulties that come with slow turn categories or segments with a narrow, special interest fan base.

2. Public ‘display’ categories add symbolism romance to marketing

Food and beverage purchases these days are largely symbolic. People ‘wear’ their brands as a statement, a flag, a visible demonstration of what they value and what they wish to signal to the world around them about who they are.

You know this so can you plan for it, use it. How can you enable consumers to fly your symbolic brand flag? Does your premium brand innovation lend itself to public display occasions such as barbecues, parties, taken to the office or gym and consumed in a social setting? Brand iconography, symbolism and telegraphing of same can be deployed here to help your users display and vote their beliefs and values. Too often this opportunity gets overlooked.

3. Pack strategies can ignite new occasions

No doubt you’ve heard of price-pack architecture. There is a bit of CPG magic in this strategic growth solution. It helps you lean into new and different occasions while creating higher average retail price points (more cash and flow) with a perceived embedded consumer discount, and more facings (brand billboard) at shelf. Pack architecture projects open the door to migrating your users to new consumption occasions.

Amplify Brands’ Skinny Pop brand rode the pack architecture idea to fame and fortune by creating both smaller bags and larger pack sizes of their pound-able guilt-free popcorn. The move lifted average price points while leveraging new use occasions from school lunches to birthday parties. When you offer new packs the input costs are manageable while adding exponential growth on the income side and serving the usage occasion/velocity rule at the same time.

4. The slightly uncomfortable but immutable rule of upscale zip code distribution

There’s an old but wise saying: fish where the fish are. For premium priced food and beverage innovations the distribution strategy decisions you make will have an enormous impact on your ability to gain traction and scale the business. Where you do business matters especially in the early going.

Premium innovations are home to higher quality ingredients, real food-based formulations.  These brands reflect the lifestyle symbolism embraced by consumer cohorts who in reality control the fortunes and failures of new product fame or flame out.

What do we know: educated, high earning households congregate in upmarket neighborhoods. Trial for premium priced CPG innovations will always be better served in retail doors that exist to serve an upscale shopper base. These folks not only won’t flinch at your higher price point, they are also hunters of new premium innovations. Early trial fuels their social currency of being a word-of mouth warrior.

There was a time when Whole Foods owned the early trial zone for premium CPG innovations, but other banners have caught up in their premium offerings. Now it’s a zip code exercise where your decisions are more about the education levels of the communities you distribute in ahead of other considerations.

The guidance: not every new door is the right retail door. Controlled expansion plus patience are better for building your business rather than taking distribution wherever you can get it. EDLP retailers have a different model and a different shopper base driven more by price point than your quality ingredient, healthy lifestyle bona fides. Walmart is better for mass legacy brands for this reason.

• Broader distribution and wider geographic expansion make sense when innovations become mainstream and lower income households begin to take them up. Going that route too early can create problems leading to profit-eroding price drops and even delisting if you’re not careful.

There are 40 metro areas in the U.S. where greater than 30% of the adult population has a Bachelor degree or higher. That’s a cohort of more than 65 million adults. Higher income zip codes within those metros are primed for premium CPG introductions. These higher income, higher educated households are tuned-in to the evolutionary changes going on in modern dietary preferences. They are listening to your narrative.

• In sum, you will grow in geographic areas where large numbers of people attach their lifestyle symbolism to your brand and spread it in their social circles. You should be on shelf in the banners where the shopper population is experientially primed to look for you.

Don’t forget to consider University towns for the same reason. These can be enthusiastic communities for bold, dietary alterations and innovations. Young adults especially are early adopters and influential in making new dietary shifts.

Here is the premium CPG innovation recipe for success assuming the product design fits squarely in the frequent consumption arena.

• Build visibility, awareness and discoverability in the right stores in the right zip codes.

• Increase local household penetration.

• Increase consumption rates among early-in users by adding consumption occasions.

If you have these challenges and strategic questions as you plan your innovations and launch strategies, use this link to start a conversation with us. We can help you create a roadmap to success and the brand narrative well told to go with it. We are new product launch specialists.

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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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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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