The global nutraceutical event - The Evolved Marketplace; … · 2020-06-24 · Consumers...

Information Classification: General

The Evolved Marketplace;Building an Authentic Brand


About BrandHive

• Branding agency founded in 1997

• 95+ years experience with healthy lifestyle consumer

• Full range of strategic and creative services

• Serving a global clientele in Europe, Asia and the USA

• Business-to-business

• Business-to-consumer

• Brandhive.com


Health & Wellness Consumer Evolution

• Consumer 2.0 has been a work-in-progress

• Cultural and behavioral shifts (seismic proportions)

– Unfettered access to information

– Shopping behavior and patterns

– Consumer activity levels increasing

– Technology for self monitoring

– Increased concerns about health and wellness


Category

Channel Technology

Media


Enlightened, Empowered & Confused Consumer

Marketplace Convergence



• Product innovation is gaining momentum with newpathways, delivery formats and proprietary manufacturing processes

• Emerging health theories gaining traction

– Role of the gut in overall health

– Role of chronic inflammation in overall health

– Truth about cholesterol and arterial health



• Market segmentation is an increasingly vital tool as consumers grow apart in motivation and behaviors

– Millennials (re-writing the rules)

– Gen Y (sandwiched in-between)

– Boomers (want to live forever)

– Seniors (quality of life)


Consumer Usage Gap

• Speed of innovation fuels rapid awareness, trial, adoption, rejection

• Consumer is drinking through a fire hose

• Consumers see a range of assorted tactics BUT no integrated application to their specific daily health and wellness needs

➢ Diet

➢ Exercise

➢ Sleep

➢ Dietary supplementation

➢ Naturally functionalfoods

➢ Added functionality


Consumers Retreating to What They Know

• Simple, fewer ingredients

• Better for you alternatives

• Less processed foods

• Less salt and sugar

• Fewer artificial flavors, colors and sweeteners


Consumers Retreating to What They Know

• Fewer “unknowns” on labels

• More open communication regarding sourcing

• Fresh is best; boxed or canned is perceived as less healthy

• Rise of structured diet regimens (Paleo, Gluten-Free, Vegan, Ketogenic)

• Consumers want to eat healthier but don’t want to cook or curate (meal kits and snacks)


Source: Engredea, NewHope


I understand what GMOs are

I know which products have

GMO ingredients

I know which crops are most likely to use GMO seeds

57%

32%

28%

Consumer Understanding of GMOs Despite consumers’ growing familiarity, in-depth knowledge is quite limited as to which products have (or don’t have)

GMO ingredients or which crops use GMO seeds. Younger consumers profess to have more awareness and knowledge

about GMOs compared to older consumers, particularly Boomers.

44% 39%

26%

16%

Millennials (21-39)

Gen X (40-53)

Boomers (54-72)

Gen Z (18-20)

48% 44%

30%

19%

57% 62%

55% 52%

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Source: Organic & Natural 2018 report, The Hartman Group

Total


Clean Label 1.0


Clean Label 2.0

Plus: Animal Welfare, Farming Methods, Sustainability, Pesticide Residue, Fair Labor


Building an Authentic Brand

• Marketing terminology as point-of-difference?

• Clean label, sustainability, and transparency are termsmarketers have coined to pre-empt and “own” this newclass of messaging

• Consumers largely don’t talk (or think) this way

• 78% of U.S. consumers don’t know or understand what “clean label” means (New Hope, 2016)



• 25% of U.S. labels had clean label claims (2015 InnovaResearch)

• Consumer confusion between organic and non-GMOis rampant (New Hope, 2016)

• “Clear” label is another marketing term to reflect authentic and validated ingredient sourcing through the supply chain (Innova Research)



• Non-GMO designation and certification has high visibility and awareness but very low consumer comprehension

• Sales of Non-GMO products will reach $800 billion globally by 2017 (Packaged Facts) even though 8 in 10 consumers can’t define what non-GMO means

• In essence, most of these marketing terms are code for “healthier and better for you” in the minds of consumers (Nielsen Research)


My Point Is

• Consumers hear the marketing terminology, and they are open to new ways of thinking about and purchasing health and wellness products, but they don’t grasp:

1) The significance of the “terminology”

2) How the “jargon” relates to everyday health choices

• Consumers are “grasping at straws” in their search


My Point Is

• The good news is that consumers are ready to embrace “clean label product” initiatives and their aspirations have been heightened

• The bad news is that the education process has just begun and there is a long road ahead for brands to differentiate themselves among confused consumers


My Point Is

• Smart brands will capitalize on positive consumer sentiment and momentum by:

– Researching and defining “marketing language” as it relates to product-related and consumer-directed features and benefits

▪ “full access to our database of C of A’s and suppliers”

▪ “produced only using geothermal energy and inputs”

▪ “food waste processed for improved health applications”

▪ “fair wages and improved working conditions”


My Point Is

• Smart brands will capitalize on positive consumer sentiment and momentum by:

– Fleshing out terms and messaging that consumers can relate to readily and begin to associate with the brand

▪ Regenerative agriculture practices enrich and preserve the soil

▪ Ingredients you would find in your kitchen

▪ If you can’t pronounce it, it shouldn’t go into your body

▪ Less of the bad; more of the good


It Takes a Village

• Building awareness for and communicating “clean” product benefits is EVERYBODY’S business

• Both brands and ingredient suppliers play a role

• TREND WATCH: Industry moving from silos to collaboration

• It’s not just about clean finished products. It’s about cleansourcing and supply chain practices

• Raw material suppliers must add value and embrace a new, more turnkey role


It Takes a Village

• Brand owners and manufacturers must be willing to pay the price of cleaner, less processed ingredients

• USDA Organic and Non-GMO are the most recognizedcertifications yet the majority of consumers can’t differentiate between the two

• Certification overload is prevalent

• Industry must make it easier for the consumer

• Building cleaner, greener labels is a “team sport”


Green-washing Happens

• An authentic brand comes from within

• It’s not a coat you put on your brand

• The demand for more authentic brands is being driven by the consumer

• Today’s consumer will sniff you out and destroy you

• Tell your story and don’t spare the details


Parting Thoughts

• Consumer is evolving rapidly; understand how they got here

• Growing consumer application gap; ripe for customization

• Consumers are retreating to the familiar

• Challenge today is to build an authentic brand

• It takes a village of brand owners and suppliers

• Brand marketers must create a new “language”


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The global nutraceutical event - The Evolved Marketplace; … · 2020-06-24 · Consumers...

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