Professional Documents
Culture Documents
Most transactions have an upside and a downside, but when something is FREE! We forget the downside.
Free! Gives us such an emotional charge that we perceive what is being offered as immensely more valuable than it really is.
Activation
Deploy free as an alternative to traditional price and promotion programs
Free is always unilateral
Google recently announced a plan to sponsor free Wi-Fi to holiday travelers in 47 airports across America until January 15th. This is the best kind of FREE - something unexpected, very useful, and entirely unilateral.
Even after the worst recession of the past seventy years, retail sales this year will be about where they were in 2005
Theres a palpable longing among pundits for Americans to become more frugal
Much of the decrease in consumption since early 2008 can be traced to a drop in spending in just two categories: gasoline (thanks to lower prices) and cars
Bottom Line
We are not observing any long-term shifts in consumer spending habits in CPG
Current frugality habits (i.e. channel shifting) are near-term responses to a climate of anxiety CPG manufacturer median sales increased 10 percent last year, down just slightly from 2007 median sales figures* Compared to a year ago, sales over the Internet rose 15.5%**
*Source: The 2009 Financial Performance Report: Focusing on Today, Envisioning Tomorrow by GMA & PwC **Source: MasterCardAdvisors SpendingPulse
We need to see the 'value' shopper come back to the mall, and retailers need to empower their people to go the extra mile for them PR-Insider
Precisely who is this value shopper? And how do they define value?
66%
64% 62% 58%
+Source:
We all seek value, so the question is actually about what role price really plays in our value equation?
Bottom Line: The consumers notion of value is a complex equation only marginally concerned with getting the absolute lowest price possible
Treatment with beta carotene, vitamin A, and vitamin E may increase mortality. JAMA
Time Magazine
The largest study ever to ask whether a low-fat diet reduces the risk of getting cancer or heart disease has found that the diet has no effect.
The emerging pattern of scientific evidence suggests that most of what we have assumed as common sense is, in fact, dead wrong
Exercise doesnt appear to help with weight loss Diet (especially a low-fat diet) doesnt appear to be an effective treatment for coronary disease, high cholesterol or hypertension Vitamins and antioxidantsespecially in supplement formappear to potentially do more harm than good
Implications
This knowledge may take considerable time to filter into the consumer community The role of food in illness prevention and treatment will face increasing scrutiny Health-based diets could become increasingly irrelevant We expect supplements to encounter the biggest challenges over the long term
"Whenever people begin speaking about the traditional family, I always suggest that they pick a ballpark date for the family they have in mind.
Who is this idealized American Family? Leave It to Beaver" was not a documentaryneither the 1950s nor any other moment from our past presents workable models of how to conduct our personal lives today.
Bottom Line
When marketing to stay-at-home moms, think carefully about who you are talking to The idealized portrait of the upper middle class family with a stay-at-home mom is just that
*http://www.census.gov/Press-Release/www/releases/archives/families_households/003118.html
Sustainability, Local and Nutrition Top List of Hottest Menu Trends for 2010! - National Restaurant Association
Here is how local actually works While local is a welcomed of means of generating community for alienated consumers, it is not seen as a replacement for traditional CPG products Consumers rely on narratives of people, places and locales to frame the emotional resonance around local Bank of America channels local by inviting customers to display pictures of their pets in neighborhood bank branches
Creativity comes first; then comes the customer Ferran Adria, elBulli
Innovation requires a new way of doing as well as a certain spirit of the times to validate this new wayYour customers cannot help in this process
(1) We have long counseled our clients to listen to their customers (2) We still do
(4) Impassioned geeks and wackos pounding at the doors of convention and the fringes of culture are the source of truly innovative ideas
(5) The iPhone bridged the gap between consumer need, the reimagination of cultural communication practices, and well executed design
The single most important thing a city can do is provide a community where interesting, smart people want to live with their families.
Malcolm Gladwell
Our research shows that your name has no effect on your life outcome. Stephen Dubner (Freakanomics)
09 Percent of Americans dislike or hate grocery shopping** 47 Percent of Americans report cooking new or interesting
meals in the past 12 months ++
84 Percent of Americans have little to no interest in hightech shopping devices designed to make the shopping experience more interesting or more convenient ++
** Source: ++
(n=1000)
Since nearly every store has one, it seems like a hoop you have to jump through just to get the normal prices Janine, 38, Atlanta
Im so tired of having a pocketbook full of these silly cards Laura, 52, Dallas At my local Dominicks, every single wine is on sale with the Fresh Values cardIm not kidding! Matt , 31, Chicago
Top Two %+
74% 57% 54% 53% 45% 44% 40%
(n=1000)
The symbolic connection between the organization of grocery stores and household pantries encourages your customers to approach food with a mundane, utilitarian perspective
Italian scientists working with computer simulations recently found that firms which promoted people at random functioned more efficiently than those that promoted based on merit **
* * Source:
13
Remember Friendster?
13
The answers to these questions represent a base level fluency in social media If you cannot answer at least 3 of the following, you shouldnt be doing social media...
Are you familiar with 4chan, one of the internets most trafficked websites which has been characterized as at once, lunatic, juvenile, brilliant, ridiculous, alarming and dangerous?
Did you know 4chan managed to deliver a pizza to balloon guy on live television?
Did you know that 4chan members have been responsible for several national security threats Did you know its founder, Christopher Poole, will be speaking at the TED conference alongside Bill Gates? Can you explain the differences between Twitter, Mashable, Vimeo, YouTube and Facebook?
Are you reasonably well acquainted with the Electronic Frontier Foundation?
Are you fluent in the nuances of DRM, Intellectual Property and the Public Domain? Were you watching closely as the Mommy blog invasion decimated Motrins MotrinMom campaign? Are you familiar with arguably the biggest viral sensation of 2009, the Three Moon Wolf T-shirt? How did this viral sensation begin?
13
Apple Rejects
Tweeting Blogging Myspacing Facebooking Creating communities
1) 2) 3)
Culture compels us to stand at attention when our national anthem is played Culture also reminds us to serve (and eat!) cake on the occasion of a birthday Culture has determined that it is no longer acceptable to smoke in an office
4)
Finally, culture reminds us to eat hot dogs at a baseball game but if you serve them for breakfast or dessert, you might encounter a revolt
Explore. Listen. Reflect.
Like many other analysts and clients alike, we have been charting consumers individual preferences for a very, very long time
Most CPG companies and retailers know everything about their consumertheir likes and dislikes, their demographics, as well as their attitudes and beliefs
Culture Adds to the Story by Considering
Contexts and Settings
Occasions
Rituals and Practices Universally Held Beliefs
We believe culture is the most potent tool in the marketers arsenal Harvey Hartman
Explore. Listen. Reflect.
When institutions disappear, so goes our faith in the assumed order of natural, everyday life This leaves us confused at best and frightened at worse, a feeling which may take many years to resolve itself
The net effect of these losses will surely be felt by consumers for many years to come What isnt so certain is how consumers will respond to this situation
16
Still, there will come a time, here in Brooklyn, and all over America, when nothing will be of more interest than authentic reminiscences of the past.
Walt Whitman, 1865
Those in the traditional CPG business will face increasing, permanent competition from these food designations
17
Since 1965, the percentage of MBA graduates of highly-ranked business schools who go into consulting and financial services has doubled, from about one-third to about two-thirds** Some of these consultants and financiers end up in the manufacturing sector, in some respects thats the problem
Most of GMs top executives in recent decades hailed from a finance rather than an operations background.
These executives are frequently numb to the sorts of innovations that enable highquality production at low cost. Thats how you end up with the likes of GM... **
* * Source:
Address this shortcoming by deploying a model which anchors eating and shopping occasions into the broader cultural context of the world of food, for example By grounding eating and shopping occasions into the culture of foodrather than the consumers preferences, dayparts, or trip typeswe arrive at deeper, more actionable insights Armed with these insights, companies can take action that will increase both shopping trips as well as consumer interest in higher growth categories
There has been a resurgence of interest in the neighborhood butcher the kind that offer customization from whole carcass beef & pork
With the renewed emphasis on neighborhood butchers comes a whole new generation of rock star butchers As The New York Times observes: With their swinging scabbards, muscled forearms and constant proximity to flesh, butchers have the raw, emotional appeal of an indie band. They turn death into life, in the form of a really good skirt steak
The net effect is a revived interest in offalwhat many have termed the nasty bitsas these new butchers explore long forgotten cuts of meat for curious omnivores and gastro pubs alike
Explore. Listen. Reflect.
Ordinary people do not eat ingredients or nutrients or platforms or mission statementsthey eat food
Ordinary people do not eat ingredients or nutrients or platforms or mission statementsthey eat food
When will marketers stop treating so-called "millennials" as an alien species waiting to be fleeced by clever marketing campaigns?
We must all immediately refrain from the overuse of metaphors from movies, sports, and pop culture as lessons to inform branding and business practicesIts just plain annoying
Ordinary people do not eat ingredients or nutrients or platforms or mission statementsthey eat food
13.2 Percentage of US consumers who have purchased a gluten-free product in the past three months
Soup should never be packaged in clear jars; it looks too much like baby foodor worse!
Explore. Listen. Reflect.
Ordinary people do not eat ingredients or nutrients or platforms or mission statementsthey eat food
To the degree that consumers care about sustainability, its nearly always a personal or local thingHigher-order issues fail to register for most consumers
Between The Shake Shack and Five Guys Burgers, consumers have demonstrated they are more than willing to pay a premium price for a quality burger experience Generational marketing is overrated, there are far, far more similarities than differences in purchasing behavior by generational cohorts
Ordinary people do not eat ingredients or nutrients or platforms or mission statementsthey eat food
Outside of a few categories (youth culture, fashion, automobiles, etc.) consumers do not feel that the brands they buy communicate or express important elements of their identity or social status
Even in this struggling economy, consumers continue to justify their indulgent needs in most categories
Despite the rise of the urban chicken phenomenon, whereby consumers have begun raising their own chickens, this trend will subside once the misery of tending to chickensa most vile and filthy of creaturessets in
Ordinary people do not eat ingredients or nutrients or platforms or mission statementsthey eat food
A recent study by Yale psychologists found that food advertising can trigger unconscious snacking by leading our thoughts toward hunger and food
A poll conducted by Time magazine found that John Stewartwho hosts a comedy showwas Americas most trusted newscaster by a wide margin
A study published in the New York Times found that adding calorie counts to menus has no affect on diners food decisions
**Plus
Bacon
If you do things well, do them better. Be daring, be first, be different, be just. Anita Roddick
one
What
Candy Store in Barcelona relies on clever design and branding imagery to reimagine a tired concept
Riffs on the longstanding cultural truth that laughter and sweets can often be the best medicine
Ostensibly should make children less frightened of visiting their doctors office
Aha
Reworking a tired concept often requires mashing together two seemingly disparate products, ideas or institutions Candy vs. Medicine, Store vs. Hospital Explore. Listen. Reflect.
two
Each box of tea contains a number, which you can enter on the company's website to find out where each leaf was grown, when it was harvested and who packed your blend
three
What
Snack chips made from real foodparsnips, beets and potatoesand flavored with on trend ingredients How can you not want to crunch away on almond potato & sea salt? Innovative package choices drive freshness cues (i.e. see in) while still allowing for striking packaging (cues quality)
Aha
Snacks made from real food, named after the foods indigenous category (roots), flavored with trend forward ingredients and cleverly packaged and presenteda clear winner. Explore. Listen. Reflect.
four
His pedigreed polenta can be found on the tables of the greatest restaurants in the world
Who could have imagined that a humble grain could engender such a resonant emotional experience ?
five
What
Luxury quality, portable hot chocolate on a stickstir into hot milk and away you go Available in a dizzying array of flavors (46!) including strawberry & pink pepper, sea salt & honey and praline & nougat. Are you sure youve reached the point in your life where you can taste the difference between nougat and filler? Some are even available with small amounts of liqueur thrown in for good measure
Aha
What else is there to say. If you dont get it by the words and descriptions alone, theres not much that can be done. Explore. Listen. Reflect.
six
Kikas Treats
Kika's Treats are a line of fresh shortbreads and graham crackers distinguished by a crisp, buttery texture
Their small portion sizes and clever packaging make a perfect match for those permissible indulgence moments
We have an office pool going on who will eventually acquire this fledgling upstart
What
Dr. Perricone, a name familiar to many in the Health & Wellness community, recently freshened its product line Note the clean, understated look of a modern apothecary, a design cue that is bolstered by the iconic apothecary image We are also smitten with the decision to visually depict as many of the natural ingredients as possible
Aha
Even in a visually flat category such as supplements, where very little has changed or evolved in the past 30 years, it just isn't that difficult to rewrite the rules from the bottom up Now many are left wondering, how we could have ever settled for brown plastic bottles with lame wrappers for so long? Explore. Listen. Reflect.
eight
This is one of the rare examples of convenience done rightthe prepared macaroni and cheese in an easy to hold patty for little chubby hands hits the sweet spot
The strict reliance on organic ingredients and lack of preservatives allow mom and dad to rest at ease
Jury is still out as to whether or not the flavor profiles win with the tykesour resident 16 month-old taster, Mo, isnt yet sold. Explore. Listen. Reflect.
nine
What
A trio of creative locals have been reimagining popsicles with local, seasonal ingredients for the Brooklyn Flea Market Unusual fruitsand an occasional vegetableare combined to craft innovative flavors such as peach, chamomile and honey; watermelon, cucumber and hyssop; tri-star strawberries and cream; blackberry, yogurt and honey; and sugar plum and mint. They are currently planning for something called Popsicle World Domination 2010
Aha
Further proof that no category is an exception to creative forces of reimagination We remain flummoxed that as of yet nobody has snapped them up Explore. Listen. Reflect.
ten
The tonic revolution is in full force, with many bars choosing to rely only on their own hand brewed tonics
Q Tonic tastes clean and crisp with a quick sharpness and a gently rounded sweetness that Gourmet Magazine describes as simply astounding
Explore. Listen. Reflect.
Combining Guarana & caffeine with beef jerky is just too much of a stretcheven in the name of functionality.
The product is described as Chardonnay hydration for the daytime... Women take their skin care very seriouslyjust like their chardonnaybut not at the same time, or on the same occasion
As dedicated vegetarian fans we can attest that veggie patties for grilling are a great idea but vegi scallops in a can? This is so ghastly on so many levels that mere words cannot do this justice
Beers star is still rising at restaurants, with operators sourcing craft and seasonal labels, promoting menu pairings and themed dinners, and opening beer-centric pubs and eateries.
We thought that whole craft beer revolution deal has been going strong ever since the mid 1990slast century and what not
Grocery stores will grow, particularly as private label assumes prominence. Grocery stores are also doing things such as upgrading delis and fresh take-out sections.
In-store delis and fresh meat sections are stocking chilled prepared meals as a moreconvenient and better-quality solution to frozen meals. Mintel, 2004
!
Call it what you willnutritional, healthful, good-for-youbut this trend toward beneficial foods is growing at a pretty big rate.
Marketing to the New Natural Consumer: Consumer Trends Forming the Wellness Category Harvey Hartman, 1999
!
Explore. Listen. Reflect.
Christmas tree made from Heineken Bottles The Hugo Hotel, where defenestration is the norm
More Fun
For more specific strategic guidance or implications, please do not hesitate to contact us. 425.452.0818
We thank Flikr for the sourcing of fabulous imagery throughout this deck.