Sean Moffitt @SeanMoffittMontreal, Quebec April 14, 2010

Social Media and The Food Industry

A Presentation to:

www.agentwildfire.com

We spend 14 minutes on Facebook everyday…

But we spend 44 minutes thinking about food each day…

The Top Trending Topic in CanadaYesterday on Twitter?

Key Point - You Don’t Have to Choose Sides, Social Media is not a Religion

“The Sensitive New Age Social Media” Religion Type

“The Never in a Million YearsTraditionalist” Religion

Social Media = Smart Business

Big Caution – There is “being social” and “doing social”

“Being really social”

“Not Being Social”

New Rules are in Play In Social Media

The New Customer Requirements

15

“Something you Buy” “Something you Trust” “Something you Want”

“Something you Prefer” “Something you Love”“Something you

Participate In”

Brand evolve - There’s a new currency on how to build brands

MASS MARKETING

DIRECT MARKETING

SOCIAL INFLUENCE MARKETING

A Culture Change is Required

Low Involvement? Doesn’t matter the size?

Regardless of company…social media brings business closer to the customer

Percentage that believe they are

delivering a positive

customer experience -

80%

Percentage of their customers who agree - 8%

Top Reasons – Why Now Social Media

#1 The Need for Authenticity and Transparency -42%

#2 The rise of social networks - 38%#3 Increasing role of wireless/mobile - 35%#4 Customers/people waning attention spans - 25%#5 Media fragmentation - 22%#6 Change in mass marketing effectiveness - 20%

Agent Wildfire -The Buzz Report, April 2010

What Do We Know?

- Interview 50 industry/social media experts

- Study of 100 of the most

engaged brands

-McGraw-Hill (Dec, 2010)

@wikibrands

- 2nd annual report

-Survey of 300 Canadian

marketers, media and executives

-30 questions on new media,

technology and customer culture

- In business since 2004

-Building online communities, word

of mouth campaigns,

influencer programs, buzz

and social media

- Canadian thought leader on

new media

½ Dozen Reasons Why This is Important?

#1 -Engaged brands are

winning.

Engaged Brand Value

+18%

Non-Engaged

Brand Value -6%

Interbrand 2010 Top Global Brand report

#2 – Social Media = Many Benefits

Brand Advocacy (Marketing)- Word of mouth- Referral/recommendation- Badging- Sales/traffic- Reduction in media budgets

Brand Perception (PR)- Awareness/exposure/SEO- Affinity- Empathy/respect- Lead industry conversation

Maker’s Mark Advocates

Molson Perception 2.0

Brand Content (Media/Customer Experience)- Co-innovation/solutions- User-generated Creative- User-generated content- Reviews/ratings

Brand Insight (Research and Innovation)- Idea stimulus- Beta-testing- Market research/polling- Industry/competitive intelligence

Doritos Content

Starbuck’s Insight

Brand Support (Customer service)- Customer service- Education/ advice- Value-add experience- Lead industry conversation

Brand Serendipity (HR)- Stories/Inspiration- Corporate social responsibility- Galvanize employees- Traditional media interest

Whole Foods Support

Pepsi Serendipity

How is Canadian Business using Social Media

#3 – It’s Where Your Audience Lives

Online Canadians are spending 18 hours online each week (higher than TV)

We’re spending 82% more time on social networks than last year

Scale – 14,252,000 CanadiansEngagement – ½ log on everydayAge - 37% are over 35 years oldAssociations - 500,000 pages/5.3 billion fansPurchasers - 53% femaleConnected - Average 130 friends

Top Brand Facebook Pages – Canada

#1 - Pepsi#2 - Canada Dry#3 – McDonald’s#4 – Dorito’s#7 – Red Bull#8 – Amp Energy

Scale – 3,000,000 Canadians (est.)Followers – 190 followers each (after 2 yrs)Influence - 0.7% of audience are followed

by 1000+ usersExperts -10% of audience is posting 90%

of tweets

#4 – It will Keep Growing

Canadian Marketers plan on spending more/less in 2010:

More LessNewspaper 5% 32%Radio 5% 33%TV 4% 37%Magazines 3% 39%

Ching Ching $$$There is a solid industry business case

79% of firms will be increasing

investment in Web 2.0 technologies;

only 6% will decrease.

Source: Gartner, Sept 2009

Social Media Growth Estimations

Types of New Media Future Growth

#5 – We’re Not Very Good at It

Business and marketing are lagging their customers

Question: How familiar are you with the tools of social media?

71% of marketers are less/only

equally familiar with the use of social media tools than their customers

Source: com.motion Poll

#6 – Your Customers Want It

85% of people want companies engaging with their customers in social media

56% of people feel a stronger connection with those companies they interact with in social media

People mention :

•7.6 food and dining brands

•7.2 beverage (alcoholic and non-alcoholic) brands

…to friends/every week.

Food and recipes/cooking are #3 and #5 blog-related topics among women

The Recipe for Success?

Technology? Design? Funding?

The Biggest Social Media Sins- Listening, Content and Focus

The FLIRT Model – A Recipe for Community Success

FOCUS– “Why are we doing this/what are we doing?”

FOCUS– Marry All Parties’ Interests/Capabilities

Two Big Axioms

Social/member needs > Company needs

Focus > Technology

Area of Benefit“what do you want to

achieve?”

Scale/Size of Collaboration

“how big will it be?”

Depth of Collaboration

“how much member involvement is

expected?”

Exclusivity of Membership

“how open is your community?”

FOCUS – What are we trying to build..

Nike + -Members/Customers Values/Lifestyle/Desires

LANGUAGE & OUTREACH“do I like this/can I identify with this?”

“It doesn’t matter what you say, if I don’t like the way you’re saying it”

James Cherkoff, Collaborate Marketing

Outreach - The Community Tentacles

CommunityPortal

Content Engine

Blog/RSS

SocialTargeted

Findability

Visual

Multimedia

Updates

Interesting-ness

Conversation

Collaboration

Offline

Direct

Grassroots

Outreach Badging

Aggregation

Visual

Outreach – Not Everyone is Equal

INCENTIVES & MOTIVATIONS“what’s in it for me?”

Matching Incentive to Motivation

• Better life/supporting cause• Challenge/competition• Creativity• Fun & enjoyment• Group effort/achievement• Learning• Satisfying curiosity• Wanting to make a better product• Meet people of similar interests

25 Community Incentives - Intrinsic

“How do I identify with, help the community”

• Ability to join VIP circle• Access to exclusive channels• Access to exclusive resources• Chance for wider Fame• Recognition (peer & company)• Reputation building• Recognition by company• Reputation by peers

25 Community Incentives - Extrinsic

“How do I appear to others?”

• Customer service• Information/advice• 3rd party incentives• Customized/personalized

treatment• Cash rewards• Non-monetary rewards• Discounts• Invitation to Events• Points accumulation

25 Community Incentives - Explicit

“What is my direct, tangible reward?”

Souplantation

45,000 Facebook fans, 12,000 twitterers

Souplantation

Show your Pucker Face –400% increase in Facebook fans

Guess How Many Strawberries –700 fan comments each time.Celebrate Salad –dozens of salad works of art.

Where’s Sweetie? – In September, Sweetie travelled around the world, major blogger and traditional media buzz.

What Are You Thankful For? –customers submitted their thankful

thoughts, pictures and videos.

RULES“what can/can’t I do here?”

• Experience Facilitation

• Legal & Ethical Concerns

• Employee Policies

• Ownership

Rules

Coca Cola’s 10 Social Media RulesRules

1) Be Certified in the Social Media Certification Program.2) Follow our Code of Business Conduct and all other Company policies.3) Be mindful that you are representing the Company.4) Fully disclose your affiliation with the Company.5) Keep records.6) When in doubt, do not post.7) Give credit where credit is due and don’t violate others’ rights.8) Be responsible to your work.9) Remember that your local posts can have global significance.10) Know that the Internet is permanent.

TOOLS & PLATFORM“how and where does it work?”

Platform Choice - Criteria

- Type of Software/Language

- Cost & Time

- Customization

- Scalability & Usability

- Security & Ownership

Platform Choices

Platform Choices

Most inventive use of Twitter - Bakertweet

COMMUNITY MANAGEMENT“who will lead the conversation?”

How to Avoid This…

Community/Brand Evangelists - Tasks

The Hero Community Manager – Nature Valley

The Collective Effort - Kashi

The Outsourced Effort – Philadelphia Cream Cheese

LIFE STAGE OF THE COMMUNITY“when do we need to adapt?”

The Life Stage of a Community

METRICS, MEASUREMENT, INSIGHTS & ROI

“what do we measure and look for?”

- Traffic Pattern & Statistics - 75%

- Community Member Engagement - 74%

- Unique Number of Visitors - 72% - New Member Registration - 70%

- Member Satisfaction - 59%- Provide Feedback/Ideation for R&D - 49%- Number of Referrals by Members  - 33%- Transition Lurkers into Active Members - 29%

- Impact of community on revenue - 27%- Mentions of Organization or Brand on other Community Sites - 27%

The Most Popular Community Metrics

CULTURE & ORGANIZATIONAL CHANGE

“how will we be changed?”

Bringing the Community Inside

• First, MAIL – Monitor, Assess, Intercept, Lead

• Build an internal team with support of outside experts; excite and anoint an executive champion

• Celebrate community milestones/be changed by the contributions; broadcast the process involved – over-communicate

• Build clear lines of responsibility

• Share data, any type of data with management

Let’s Start Your Next Brand Conversation…

Inquire: spreadtheword (at) agentwildfire.com

Phone: 416-255-4500

URL: www.AgentWildfire.com

Blogs: http://BuzzCanuck.typepad.com/

http://www.spreadslikewildfire.com/