4 Things About Millennial Marketing Your Brand Can’t Live Without

Millennials. They’re on my mind, your mind, on every single marketer’s mind. And they should be. After all Millennials are spending $600 Billion dollars a year. So if you haven’t registered for our webinar next week, now’s your chance. You’ll find out what really matters to Millennials and what they need most from you. We’ll also tell you exactly how to connect with Millennials and stay connected for the long haul.

Until then, here is some of my favorite, must-have Millennial info to whet your appetite. I pulled highlights of my most popular posts on marketing to Millennials into one place. Here are 4 things you need to know about marketing to this coveted demographic.

1. Millennial parents are a shopping breed of their own.

Just today I saw a Millennial friend’s Facebook post saying she only shops two places for her family: her local co-op and Costco. This is so on-trend and on-budget for Millennial parents. Marketers, you need to know exactly why Millennials love club shopping. Find out here.

2. Millennials want brands to embody what matters to them.

In order to get Millennials to run towards your brand, you need to be the right combination of all the things that matter to them: their aesthetic (hello Instagram), their values and their desire for experiences. And the great news is, if you’re willing to do all those things, they are willing to pay more. How do I know? I just spent a summer learning from a bunch of Millennial interns – this is stuff you can’t get in the trades. This is straight from an actual Millennial.

3. Millennials have the power to redefine categories.

Just look what they did in the supplement space. They’re obsessed with nutrition and passionate about alternative health. Not in the immediate health and wellness category? Doesn’t matter. Because the way Millennials shop for and use supplements has reinvented the entire category. There are insights here you could apply to any category. The way Millennials demand transparency informs the way they shop for and experience every category. Learn more here now.

4. Millennials have the power to transform a product into a phenomena.

Can you say Rosé? It used to be just another wine. Now it’s a way of life, influencing everything from color to a whole season of the year. It’s just one example of how Millennials lead a highly-curated way of life, speaks to their willingness to spend, adventure and enjoy life. And of course splurge, both with their dollars and their calories. It’s a powerful peek into the Millennial mind. Go ahead, take a look.

All of this points to one staggering fact: in 2018, Millennials will have the most spending power of any generation. If this isn’t incentive to learn even more about them, I don’t know what is. There’s still time to register for our webinar, where you’ll learn how to catch Millennials and keep them.

The do’s and don’ts of marketing healthy food through social media.

Social Media and Digital campaigns can absolutely boost sales for food brands, even ones marketing healthy food. But not in the way we are used to. Brands must use social the way it was intended to be used—to talk TO consumers until they talk about YOU.

In other words, talk to consumers in a way that gets them feeling more connected to your brand­­­ by demonstrating an understanding of what they to know, see, and experience. This shouldn’t be that difficult. They are very public.

This has always been a challenge for brands, but it’s even harder on social. Unlike commercials and ads, where consumers expect you to sell, social media has different rules. You are a visitor. And smart marketers behave exactly that way. You wouldn’t tell your host what to do or think. You’d ask questions and be polite. Think of being on someone’s Twitter, Facebook or Instagram like being a guest in their home. You want them to welcome you back because they enjoyed you, you told them funny stories, gave them good advice or were helpful in some way.

Unfortunately, what most brands do is barge in-uninvited, bore us to death and leave a big mess before we finally ask them to leave. So what’s successful right now?

1. They talk about what’s great about consumers instead of what’s great about them.

The Emerald Nuts! “Yes good!” campaign is based solely on consumer reviews of their product. “Yes Good!” was actually a review left by a satisfied customer. Their consumer reviews are now given to artists to interpret in different and unique ways. This campaign is a great example of highlighting the relationship between brand and consumer and leveraging that to sell a product in a fun, creative way.

2. Talk with consumers, not at them.

No one likes houseguests who only want to talk about themselves. Ask questions. Get them to join your conversation. They expect nothing less. And why should they? You are, after all, visiting their social home.  Here’s a good example of a brand identifying a benefit of their product in a way that most people never would have thought of. The Cheeto’s Museum gave consumers the chance to experience the product in a whole new way by adding a specific personality and humanity to it. This idea was powered by user generated content and sharable Online Videos. It also had a fun challenge element that got consumers involved and drove them directly to the point of purchase.

3. Entertain consumers while you educate.

Stubbs BBQ sauce is bringing nostalgia and new tech together, to help you not only enjoy cooking, but to improve your skills on the stove. In a partnership with the Amazon Echo, Stubbs is bringing the original Stubblefield southern accent, blues music, cooking tips, and into your home. This innovation makes for great, engaging social content.

Bottom line, if you want to use social to promote a food brand, don’t make the mistakes that most healthy food companies are making. Resist the urge to chest pound or talk at consumers. They’ll either ignore you or, even worse, kick you out and lock the door behind you.

If your is brand isn’t using social media to it’s full potential, let’s talk. I can definitely help.

Whole Foods And Amazon: The Lovers, The Haters And What It All Means

There are apparently two kinds of people: Whole Foods lovers and Whole Foods haters. The lovers (me), are about as devoted as consumers get. The haters, not so much. Can the Amazon acquisition narrow the divide? And does that mean opportunity for all of the brands that are sold at WF and on Amazon? And what can we as marketers learn from this incredibly polarizing brand?

Whole Foods is already just plain Irresistible

In our latest I-Factor® study, benchmarking 7 leading retailers and 1400 consumers, we uncovered fascinating insights about Whole Foods.  It was no surprise that Whole Foods is THE MOST Irresistible brand in the study. Those that prefer Whole Foods are hands-down devoted. It’s cult-like loyalty. Consumers are quick to declare their love and willingness to pay for it. So what’s the secret sauce?

According to our I-Factor scale™, brands need pretty high scores in all 3 Cs (Comprehend, Crave and Crave) to boast true Irresistibility: We created this approach to look at the entirety of the relationship consumers have with brands TODAY. The study gives brands real data to fill in the relationship gaps and create the change brands need to reach true Irresistibility. Think of the 3 C’s this way. Comprehend measures what consumers know. Crave, how they feel, and Craze, what they do.

So how does Whole Foods measure up?

For loyalists, Whole Foods is an extension of how consumers see themselves

Out of all the retail brands we benchmarked, Whole Foods had the highest “Badge” score. Why? Because “Whole Foods truly resonates with their consumers.” Much of their strong consumer connection comes down to shared values and extreme relevance. And no brand can match the experience Whole Foods has created. It proves there is real power in taking a stance and standing for something.

But Whole foods is polarizing. They also had the lowest score among the non-preferrers we surveyed.

The lovers and haters are at opposite ends of the bell curve. In fact, there’s a 29 point difference in the overall I-Factor® score between the two groups-the biggest gap for any brand in the category. Those who choose not to shop at Whole Foods have equally strong opinions of the brand.

Can Amazon make Whole Foods even more Irresistible

There’s a widespread belief that the Amazon acquisition will allow Whole Foods to sell to more consumers for less money, giving new populations access to healthier foods. Will that be the tipping point for Whole Foods? Whole Foods has never been all things to all people, but this could allow them to reach consumers who have previously rejected the brand. The art will be getting new lovers without diluting their positioning and alienating the loyalists.

Can Whole Foods turn haters into lovers?

Some of our data could point Whole Foods in a specific direction. While they have exceptionally high scores in Comprehend and Crave, they are definitely lacking in Craze. Meaning as much as consumers love Whole Foods, they are not wearing or sharing that with others. Their “buzz” score, even among lovers, is surprisingly low.

Today the strongest, most Irresistible brands not only connect with their consumers, they move them to work on their behalf. They become part of consumers’ personal brands. Amazon will open the door to the haters, but I believe that if Whole Foods could inspire their best consumers to go from lovers to advocates, they could seal the deal.

Want to find out what your brand can learn from your lovers AND your haters? Let’s talk.

How is the Amazon – Whole Foods Market Acquisition Affecting these Two Brands? And Everyone Else?

Amazon’s Whole Foods Market takeover is the buzz that keeps on buzzing. This deal is affecting Amazon and Whole Foods, as well as all the grocery competitors who are already in the midst of a pricing war. The acquisition is changing the way consumers shop in store and online. Here’s a top line of how Amazon is impacting Amazon, Whole Foods, and everyone else:

1) Will AmazonFresh change for the better?

Amazon has been working hard to grow its online grocery service, AmazonFresh. It’s been a slow growth as the concept of online grocery remains a “logistical puzzle.” This hasn’t stopped Amazon from trying to convert Prime consumers to Fresh. The Whole Foods deal should wipe away any trust issues that consumers may have had when it comes to ordering groceries online. And it will give shoppers access to high quality fresh food at a price they actually can afford.

2) Will Whole Foods change for the better?

Retail consultant Neil Stern says, “Amazon is a data-driven company while Whole Foods is an instinctive, merchant-driven company.” Sources say that the differences between these two powerhouse companies, will create synergies they both need. Whole Foods has lost customers because the prices are too high. Their partnership with Amazon will allow the company to not only lower prices, but will also allow them to price smarter, thanks to Amazon’s rich data. Stern also says  “Amazon is a data company first and foremost.” The intel and analytics will enable Whole Foods to collect all kinds of data on their customers that they haven’t had access to. And we know how powerful that can be.

3) Will  this escalate The Pricing War?

This deal has competitors feeling the pressure. While they have high quality goods in the aisles, they may have to lower the prices below their actual value. Stores already feel the pressure to lower prices to stay competitive with Walmart. This Amazon deal could create a whole other set of challenges.

4) Will this heat up the “Supermarket War”?

The announcement of this acquisition was swiftly followed by falling shares of Walmart, Target, Kroger, and Costco. Business Day says that “Amazon is poised to reshape an $800 billion grocery market that is already undergoing many changes.” Leading grocery stores are faced with the threat of Amazon’s technology, data capabilities and the convenience of online shopping.

As if this wasn’t enough “Grocery Giants” are also fearful of what’s to come from Lidl and Aldi, European grocers that have made quick inroads in the US. Both companies have major expansions in full swing. Experts also fear that Mom & Pop shops will be pushed out, as big and small chains compete in this extremely cluttered market.

This deal has set off a catalyst for change and competition in the industry, unlike anything we’ve seen in the past. Consumers will benefit from pricing, variety, and the democratization of fresh. Competitors will be pushed to make major changes.

Is your brand feeling pressure from the acquisition of the century? If the answer is yes, then let’s talk. I know I can help.

Amazon has Rocked the Healthy Food Marketing World by Acquiring Whole Foods Market

As a Whole Foods Lover, I am actually a little surprised that Amazon only paid $13.7 billion dollars, I feel like I’ve spent that much there! But I couldn’t be happier. I feel like this is exactly the right thing for Whole Foods. And it is clearly a big deal.

This acquisition has made the news every day since it was announced. Rocking both the retail and grocery world. Stocks prices at stores like Target, Walmart and Costco fell sharply, as did Kroegers.

Mark Hamrick, a Senior Economic Analyst at Bankrate.com, is calling this “an earthquake rattling through the grocery sector as well as the retail world.” – so dramatic!

Amazon’s massive success created a path for Amazonfresh to move into Brick & Mortar, so this merger seemed like a natural next step. It’s also brilliant when it comes to taking the risk out of home delivery of produce. Random produce at my doorstep? No thanks. Whole Foods at my doorstep? Yes, please.

Why this Will Have a Happy Ending

I see a long happy marriage ahead, especially as a I learn more about the strategy for this merger. Diana Sheehan, the director of retail insights at Kantar, said that the profile of a Whole Foods Shopper is similar to an Amazon Shopper.

Matt Sargent, the senior vice president at Frank Magid and Associates, reported to Food Dive that 28% of Whole Foods shoppers are already shopping Amazon for groceries.

Whole Foods stands to gain a tremendous amount from Amazon’s prowess online and in the technology world, while Amazon gets the organic and retail expertise that makes Whole Foods so Irresistible.

CEO John Mackey’s take on the merger: “This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers.” This really sounds like a match made in Heaven.

Diane Sheehan believes that  “Amazon is saying, ‘We’re in it to win it, and we’re going to do whatever we need to do here, and you need to start taking us seriously.’”

Competitor’s Beware!

Scott Galloway, professor of marketing at NYU Stern School of Business, said “this is a frightening day for every retailer that is not Amazon.”

This deal has the potential to heighten the already competitive war between Amazon and Walmart. Right now, Walmart is “the top seller of groceries in the U.S. and the world’s largest retailer.”  — expect Amazon to try to change that.

And with Groceries making up 56% of Walmart’s revenue, they could be in some serious trouble.

And Target stands to lose a lot  as well. Lots of opinions are swirling around, one points out that Target has between 12 and 18 months to refocus its grocery strategy,

How can Marketers Compete with Amazon & Whole Foods?

With stocks already dropping and retailers in an absolute frenzy, marketers are going to have to get pretty innovative.

Stay tuned because next week, we’ll release the results of our proprietary I-Factor® study on the the top 7 retail and grocery brands. And guess who’s included? Get ready for scores and consumer insights on Whole Foods, Walmart, Amazon and Target.

And if you want to protect your brand and make sure you are truly Irresistible, Contact me to set up a free consultation.

Healthy Food Marketing: Why Legacy Brands Aren’t Dead

Yes, Legacy Brands are struggling, but we know they can make a comeback. And we’re going to tell you how during our webinar “Legacy Brands Aren’t Dead” on June 14th at 1pm EST.

Why is the demand declining for Legacy Brands?

Consumers are constantly being pulled away by newer, sexier brands. And they seem more than willing to immediately grant them the kind of trust legacy brands have spent decades earning.

We’ll share what Legacy brands need to do to succeed by helping them fully understand the challenges ahead, and helping uncover the insights that can keep them relevant and even help them thrive.

We’ll explore the growing expectations of four generations of consumers and share advice for navigating the fragmented media landscape.

There’s good news.

Legacy Brands have many inherent strengths they can leverage with today’s consumers if they choose the right narrative in the right places. We will explore this in great depth on Thursday.

The Sawtooth Group has helped bring many legacy brands back to life, and we shared our learnings, tools and insights with you during our webinar Why Legacy Brands Aren’t Dead. You can watch the webinar recording here.

What Made Whitewave so Irresistible to Danone?

You probably already know that Danone just acquired Whitewave, the plant-based, non-dairy enterprise. Our office was abuzz over this news, because we had just literally finished our benchmark studies of Whitewave’s Silk and So Delicious.

Danone strikes consumer gold

Why would a dairy giant be interested in acquiring a non-dairy giant? Because they’re in tune with what consumers want. The non-dairy category was created for people with intolerances. But now these products have become SO mainstream that most of its consumers are choosing plant-based and dairy-free because they believe it’s a healthier option. Sales of “free-from” products like non-dairy grew an incredible 36% in just one year. And this trend isn’t going away anytime soon. Danone couldn’t have picked a better time to acquire Whitewave.

So what does Danone need to know about Whitewave’s consumers?

Silk needs a deeper connection with its consumers

When we studied the relationship between Silk and So Delicious, we noticed they both had pretty average scores (which to us means huge opportunity!). Let’s start with Silk. They had the lowest scores in all three  I-Factor® categories, Comprehend, Crave and Craze,. They were particularly low in buzz around the brand. Consumers just aren’t talking about this brand.  This sort of surprised us considering they were the true pioneers in the non-dairy category. Silk’s  experience and knowledge scores (the dimensions under comprehend)  were respectable. So what does this tell us? The consumer connection is possible, but barely there at the moment. For Silk not to be a commodity, they need to dig up compelling insights and build a deeper, more lasting connection to its consumers.

Millennials love So Delicious… but Love isn’t enough

If our agency fridge is a litmus test, we would have predicted that So Delicious would win the dairy-free category. And no surprise, I-Factor® scores proved just that. They earned the highest scores in every dimension, including frequency of purchase, making lives better and consumer knowledge. And they’re an especially big hit with Millennials with 15% higher scores than the gen pop. All good news for So Delicious, but the scores showed us that the connection could be stronger. Right now consumers aren’t seeing themselves in the brand as much as they could.. If you’re listening, So Delicious? Here’s an opportunity for you.

Danone learns a lesson in letting go: Goodbye Stonyfield

In order for the Danone acquisition of Whitewave to be official, Danone needed to sell Stonyfield. Stonyfield was completely acquired by Danone 2004 and last year, Stonyfield had sales of about $370 million. But because Danone owned Stonyfield, the Department of Justice’s antitrust division almost blocked the $10 billion Danone-Whitewave acquisition citing the potential for “reduced competition in the organic milk market.” Danone agreed to sell Stonyfield for an estimated $927 million in order to get the approval from the DOJ. They obviously get the need to diversify into the Dairy Alternative category in a big way.

With all the changes Danone is going through, it is critical that they stay super in tune with ALL of their consumers, existing and new. THAT is exactly what I-Factor® can do for brands, really help them understand all of the dimensions of their relationship with today’s consumers. Ready to see what it will take to make your brand truly Irresistible? Let’s talk.

Nutella vs. Peanut Butter: Will Nutella’s lead last?

Today’s consumers are getting more and more health conscious. So it makes perfect sense that their favorite spread is… Nutella?! Yes it’s true. And peanut butter brands are waging war. Read on marketers. Because this is a juicy tale of a brand that has withstood the test of federal legal scrutiny and even a public health scare (PSA: no, Nutella does not give you cancer). An I-Factor® study revealed data that will surprise and inform. Will the love affair last? Regardless, we’ve uncovered some deep consumer insights into Nutella’s rise to Irresistibility.

What’s trending? Consumers love a good contradiction.

Trends can be so contradictory. One day #vegan, #organic and #paleo are trending on Instagram and the next it’s #foodgasm, #gourmet and #dessertporn. Nutella has hit the super sweet spot: appealing to health conscious consumers, with the help of the brand pushing away from the ‘dessert’ label.

When Nutella first made its U.S. debut in the early 80’s, it was positioned as an alternative dessert topping. But consumers here didn’t get it. It wasn’t until 2009, when Nutella started branding itself as a breakfast staple that it reached the level of Irresistibility it has today. They earned a cult following on social media as Millennials made the trendy European spread their own.

Even healthy consumers want to indulge.

Nutella’s success is significant because they broke into the peanut butter consumer base. Lovers of Smucker’s and Skippy turned to Nutella. An analysis of Nutella’s label shows nutritional inferiority to peanut butter, but consumers seem happy to use Nutella as another nut butter for their morning toast.

This I-Factor® study on the Peanut Butter & Spreads categories dug deep. We looked at Nutella, Smucker’s, Skippy and Peter Pan. And we uncovered some data Peanut Butter may want to take a look at.

  • In the I-Factor questionnaire, Nutella outranked its competitors’ scores 95% of the time.
  • Nutella’s scores won big in “irreplaceability” and “social buzz.” These areas are KEY for a brand’s survival in today’s digital landscape.
  • These scores show that Nutella has the tightest, deepest consumer connection in the whole nut spreads category.   

Can Nutella withstand the test of time?

Can Nutella hang on even with the FDA? Nutella is classified as a dessert topping but they WANT to be classified as a jam. No biggie, right? Wrong! Health groups and peanut butter people are freaking out and rightly so. They feel this could mislead consumers into thinking Nutella is lower in calories than peanut butter.

Also, did you know one jar of Nutella is 56% sugar!? Even just 2 tablespoons comes out to around 21g of sugar. Skippy peanut butter on the other hand, only 3g for 2 tablespoons.  

Is your brand trailing behind some unlikely competition? I’d love to help you get ahead again. I can help your brand become so Irresistible that it’s a lasting lead. Let’s talk.

Healthy Food Marketing: Walmart’s Quest to Stay Relevant

I like many others, am watching Walmart closely right now. It’s not surprising to see how relentless this legacy giant is about staying relevant.

Until Amazon came along, Walmart seemed untouchable. So much so, that brands approached them with reverence and even fear. While there is still a lot of that, Walmart has no choice but to look at Amazon with the same reverence. So Walmart’s watching every move as they try to play catch up to the number one U.S. retailer. Now Amazon is paying attention.

As an Amazon devotee, it’s hard for me to imagine Walmart catching up in online retail, but they sure are trying. And marketers could learn a thing or two. Here’s what Walmart is up to. And what any Legacy Brand could learn from their journey.

Win big by gaining new consumers

You’ve probably seen Walmart in the news for buying up niche retail websites like ModCloth, Moosejaw, and Shoebuy. This comes on the heels of its multi-billion dollar acquisition of Jet.com, and the subsequent installation of Jet founder Marc Lore as head of U.S. online operations.

For the first time Walmart will let these sites run independently. That’s important because it allows the brands to maintain their integrity. That is proven way for a legacy brand gain new consumers without alienating their existing base. Walmart has the cash and logistics to support growth of these businesses, while these niche websites allow Walmart to expand its offerings to consumers they probably wouldn’t have reached with the Walmart brand.

Watch who is winning and learn, learn, learn

Is Walmart taking a play out of Kroger’s book? By acquiring regional chains as a strategy, Kroger has been successful at winning more of the market and have expanded their offerings. Kroger knew there wasn’t much need for new competition in grocery stores, so they grew by acquiring brands in the space they wanted to be in. For Walmart, buying hot ecommerce brands is setting the foundation to pull in front of Amazon with a diverse network of product offerings. Who will they acquire next?

Stay relevant to existing consumers

On the brick and mortar front, Walmart has focused on investment in tech research, installing pick-up kiosks to accommodate online orders, and lowering prices , thus improving the consumer experience. Translation: consumers who already loved Walmart are being offered more and more reasons to stay loyal. The idea is to keep these customers coming back for what they are already buying and much more.

Think like Amazon: Innovate for tomorrow’s consumer

While Walmart is innovating for today’s consumer, Amazon is already innovating for tomorrow’s. We know like other struggling online grocers, Amazon Fresh has performed well below expectations, and now we wait to see what happens when Amazon Go to open its doors. I see major potential for Amazon Go as a boon for customers and marketers. What makes Amazon Go really cool and promising is that it offers convenience that competitors can’t. Amazon Go will allow consumers the experience of picking out their food in person, without the hassle of lines and traditional checkout. Amazon thinks they have found a sweet spot. We’ll all have to wait and see.

Marketers, what’s your plan to get ahead in this digital world where things seem to change every single second? Do you have what it takes to constantly innovate and grow? What will it take to make sure your brand isn’t just profitable, it’s Irresistible. Are you ready? Let’s talk.

Healthy Food Marketing: Reviving Legacy Brands

Can you feel it? Consumers are pulling away from legacy brands. They’re following the lure of newer, sexier brands. The ones that seem to really “get” them,  and make them feel seen and heard. In this crazy, fast-changing environment, the love consumers have for legacy brands just isn’t not enough. Because in I-Factor® study after study, one thing keeps coming through: This relationship may just be a result of longstanding habit, not a conscious purchasing decision.

Although it’s a very common mistake,we marketers can’t assume consumers will love our brand just because they always have.  It’s time to create some excitement, feed the knowledge funnel. If this is sounding like relationship advice, it is. A brand’s relationship with a  consumer needs as much attention as our personal ones. Here’s how to reignite the spark.

Start with a solid brand foundation

Among our I-Factor® studies, the brands consumers “love” the most are all legacy brands: Nutella, Snapple, Baskin Robbins, Goldfish, Gerber, and Smucker’s. And while we now know that love isn’t enough, it is a solid foundation to build on.

While some of the newer, more health-conscious brands like Happy Baby, Plum Organics, CHOPT, and Sweetgreen win when it comes to bringing consumers more joy, legacy brands have withstood the test of time and don’t need to panic, but they do need to pay more attention.

Build energy by giving consumers something to feel good about

This should be easy for marketers of healthy food. Today health conscious, shoppers want to feel good about what they are purchasing.  And really understanding this can help consumers feel that way about brands . Most of the  brands that score the highest around connection to  the essence of today’s consumers are better-for-you, non-legacy brands. Brands like Happy Baby, Amy’s, and Alexia.

Consumers demand transparency and these brands are delivering. If you’re marketing a Legacy brands, consider what part of the brand story hasn’t been revealed? Consumers are dying to know everything. Delivering this could win big in both consumer love and in dollars. But these brands have to be prepared to come clean. Consumers want it all: the story, the sourcing, the people, and the causes you stand behind.

Become so irresistible that consumers start sharing

Consumers know a ton about newer brands. But they still  want  more. They actively seek out even more information online. But, this knowledge doesn’t always = love. They still have a much deeper love for legacy brands.  So if a legacy brand really can connect with them through a compelling story, they could really get to True Irresistibility. And that means your consumers will start wearing the brand like a badge, and sharing your brand with everyone they know.

And in turn, those relationships becomes your  relationships, too. And as the brand following grows and grows so does the consumer base. Exciting stuff, right?

Bottom line: legacy brands, you’ll always have the advantage of your relationship history.

But like any relationship, it’s fragile and it needs attention.

Legacy brands don’t  let consumers be wooed away. I-Factor can uncover tons of actionable insights and data-driven opportunities for brand reinvention and platforms  to reignite relationships with

Consumers. I’d LOVE to get to work on this with you. Let’s talk.

Healthy Food Marketing: The Battle of The Yogurt Brands

Yogurt is creamy, irresistible, and totally ruthless. That’s right, the yogurt aisle has become a battlefield. Who would have thought little cup of dairy, could be so powerful? Marketers pay attention. There is a smack down going on between Chobani…and well everyone else.

First doesn’t mean best

This now commoditized category started before Greek was even a thing. Dannon, a 75 year old brand built the category. It was the first branded perishable dairy item to be sold coast to coast in the United States. Dannon introduced the Greek yogurt brand Oikos in 2010 but before that, there was Fage.  Fage was the number one yogurt in Greece. And for a while they were the number one Greek Yogurt in America. Now they only have 14% market share compared to Chobani’s 47%.  And look how much this legacy brand is suffering:  Yoplait, a General Mills brand, has seen their market share go from  25% to 19% over the course of five years. Yet more bad news for General mills.

The Chobani Craze

So how did Chobani in just 12 years, Americanize  Greek yogurt? How did they manage to rake in  $1 billion in sales in a five year span. Part of their success was incredible marketing. But another important part has been great innovation, and we can all learn from that.  Their list of innovations is constantly growing and includes their ingenious flip cups,  Simply 100, and their popular Café” in NYC, where you can enjoy Chobani yogurt with artisanal ingredients, creating the kind of experience today’s consumers really want. And they recently launched  drinkable yogurts and Meze Dips.

Chobani Speaks Consumer

So why does Chobani do so much better than some of their legacy competitors with similar innovations?

While food giants have the power when it comes to distribution, it doesn’t mean that their brand speaks to consumers. John Grubb, managing partner at Sterling-Rice Group says companies who try to copy trendy new products, “suffer from a lack of culinary distinction.” Not so with Chobani.  On their website they have something called “Chobani Way”. Here the  brand is completely transparent. That’s  something most legacy brands just aren’t yet comfortable with, and they are paying the price.

Marketers, Watch Out for the Newcomers

Just because we’re talking about yogurt, doesn’t mean we’re not talking about your brand. We all know new brands have the potential to get hot fast!  Have you heard of Noosa yogurt? If not I’m sure you will soon. Noosa began by selling at farmers markets and then made its way to the shelves at Walmart and Publix. Noosa is one to watch because while it is rapidly growing it has “stayed true to its grassroots appeal”.  Check out Co-founder Koel Thomae’s wise words, “We’re also so dedicated to what makes us different and unique. And part of that is being able to control the quality of the product.”

Getting on Chobani’s Level

You can’t be slow in the yogurt (or any) business. It’s critical to find out what makes your brand Irresistible to today’s consumers. Do you want to take your brand to the next level? Let’s talk.

Healthy Food Marketing: An Unlikely Love Story, Millennial Parents and Club Stores

By now you know millennials are obsessed with locally sourced, hand crafted and artisanal brands. So it makes perfect sense that they love… Costco?! It’s surprising and true. Whether it’s Costco, Sam’s Club or BJ’s, the generation that’s redefining shopping and retail “are on the rise at clubs.”

So why then, do millennial parents love “clubbing”?

Even though millennials are willing to spend more on quality, priorities shift when they have kids. Reality sets in and their budget shrinks to adjust. According to Jeff Fromm, co-author of Millennials with Kids: “there are more than 15 million millennial families in this country, and they’re more likely to shop at Costco than the general population.” Just because millennials are popping out kids, doesn’t mean that they’ve lost their shopping integrity. They’re still looking for customization, convenience and a cutting edge experience. And Costco is delivering.

Yep, there’s an app for that

Game changing consumers love “clubbing because of the brilliant balance club stores are developing.” They’re meeting them in the middle with cost-saving opportunities AND the quality millennials demand from their favorite brands. Older millennials in their late twenties and early thirties are more likely to belong to a retailer’s loyalty program and more likely to download the retailer’s app on their phone. The Costco app allows users to look through tons of monthly coupons and “clip” the ones they want. Once they clip their coupon, it gets added to their virtual shopping list so they don’t forget it about when they are in the store.

Not your grandmother’s clubstore

The love for Costco goes beyond the app. The in-store experience at Costco is very strategic. Richard George, professor of food marketing at St. Joseph’s University’s Haub School of Business, says that “Costco really reinforces the experience beyond price savings. They really make it a treasure hunt.” Who can turn down a Costco sample? But it’s more than samples millennials are hunting for: they love discovering brands they love and even new brands at Costco.

Watch out Whole Foods, Costco has fresh

Also, riding on the coattails of the fresh revolution, club stores have paid attention to how strongly millennials feel about their food. Costco and Sam’s are offering more and more organic and fresh options. In fact, Costco is the leading organic retailer in the country. More than Whole Foods. Yes, you read that right, more than Whole Foods.

So what can marketers learn from all of this?

Hold on to the tactics that work for you as a brand, but don’t be afraid to evolve. No one is moving faster than today’s consumers and no one is harder to please. Millennials want tasteful, thoughtful and innovative products but they don’t want to spend too much. They love unusual products. But when their beloved kombucha becomes loved by the masses, they’re no longer impressed.

The bottom line: Clubbing is irresistible

Millennials love Costco because it’s everything they know they can count on plus delightful surprises. Buying toilet paper is bulk not so exciting. Buying Kombucha in bulk? Hello sweet spot.

Marketing to millennial parents is both easy and tricky at the same time. And Costco can provide some helpful clues. So can I. Let’s talk.

 

Healthy Food Marketing: What makes a brand truly irresistible?

Chop’t, Aleve, So Delicious, RiteAid, Happy Baby/Happy Tot, Larabars, Polar, Nutella, Baskin Robbins, Goldfish, Snapple.

What do these brands have in common?

High consumer knowledge and the highest I-Factor® scores in their category.

I love figuring out what makes a brand irresistible. It’s not just cool (which it is), it’s crucial. It’s information a brand absolutely needs to survive and grow in this crazy digital age. And it’s why we created I-Factor®. I-Factor® is a revolutionary brand-building tool that digs into the three dimensions of the unique relationship consumers have with brands right now.

We’ve done 60 proprietary studies and no matter what categories we are looking at, the same thing keeps surfacing.

Love (Crave) is not enough to make a brand Irresistible today.

If brands want today’s consumers to spend more and share more (and who doesn’t) they need to do something very important, let consumers really get to know them.

The brands with the highest I-Factor® scores are the ones with the highest score in the Comprehend dimension. That means brands that consumers are most connected to, are brands they have an intimate knowledge of.

If you’ve been following the blog, you know I-Factor® is based on 3 things:

  • Do consumers COMPREHEND (understand) the brand?
  • Do consumers CRAVE (love and addiction) the brand?
  • Is there CRAZE (wear it/ share it) around the brand?

We kind of assumed that brands with the highest CRAVE (love) scores would be most Irresistible, but that’s not the case. Love is not enough.

If you really think about it, it makes sense in this age of transparency.

Knowledge is on trend.

To sustain a relationship, consumers are really looking for compelling brand stories to help get to know a brand on a deeper, more personal level. So COMPREHEND scores rely on a consumer’s deep understanding of a brand. We are in a time where transparency builds trust. Consumers want to know what’s actually in the products they buy, if the brand is open and honest and how the products are really made.

So exactly why are these brands winning? Let’s take a look.

For our snack bar study, we looked at Kashi, Kind, Larabar and Nutrigrain. Larabar had the highest overall I-Factor® score AND the highest Comprehend score. Their tagline “Food made from Food” and their packaging gives consumers a clear insight into exactly who they are and what they stand for: clean ingredients made from real food. Very simple and very effective.

Nutella is another great example. Consumers – especially millennial moms – know who Nutella is and exactly what to expect from it. Their COMPREHEND score is high and they win their category with the highest I-Factor® score. This brand was built on authenticity and it still works.

So what does this mean for your brand?

Comprehend is critical. Brands that want to be successful need to let consumers under the tent. It makes sense doesn’t it? If we want consumers to share, we need to give them content that’s shareable, content that adds value.

Do you know how Irresistible you are?

Is there a more compelling brand story that you could be telling?

Let’s see what kind of magic we can unlock for your brand. Let’s talk!

Healthy Food Marketing: Legacy brands can learn from Entrepreneurs

Everything about consumers and brands is changing. The way we communicate, the way we shop, the way we spend our time and our money.

 

We live in an age of Uber, Airbnb and Amazon. It used to be Yellow Cab, Marriott and Walmart. The times they are a changing. This is the season of the start-up. It’s the era of the entrepreneur. So what does that mean for the legacy brands that have been around forever? They need to find a way to survive in this crazy digital age. And they need to do it quickly because consumers are falling out of love faster than ever. Legacy brands need to do more than play catch up. They need to play a whole new game.

 

Listen up legacy brands. You really want to stay in the game? Here are 3 things you can learn from some of most successful entrepreneurs and start-ups out there.

 

Be fearless

There’s a fearlessness that start-ups and entrepreneurs have that legacy brands just don’t. Start-ups act like they have nothing to lose, because they sort of don’t. You start to play it safe when you get big and the stakes are high and the world is watching. Look at Uber. It’s the biggest transportation company in the world and they don’t even own one car. Airbnb was just valued at 30 billion (more than Hyatt, Marriott and Hilton) and they don’t even own any real estate.

 

Be the change

If you only look at your bottom line, consumers will see you looking at your bottom line. It’s time to think globally, to think about others and to do good. Look at how TOMS founder solved a problem he saw in the world and fulfilled a real desire he had to help those in need. Now he has applied his “One for One” business model beyond shoes to eyewear and coffee. TOMS is celebrating 10 years as a brand and continues on with its self-proclaimed “simple” mission.

 

Be yourself

For legacy brands, this one could be the toughest. Legacy brands are just so BIG that it’s hard for them to be relatable. And today’s consumers want REAL human people and REAL human stories. Look at the Clif Brand: named after the founder’s dad and solved a real human need of wanting food on the go to be healthy and delicious. For an extra dose of human inspiration, check out the podcast How I built this.” You can hear the Clif story there. You’ll also hear straight from the founder’s mouths of some of the world’s best known companies and brands.
Legacy brands will never be able to start from scratch. And they wouldn’t want to. But they can leverage their wealth of experience and equity and add a dose of energy and creativity to create something new. Something truly irresistible. Does this sound like something your brand needs? I’d love to talk.