1. F&B Company Strategies * Consumer Analyst Group New York
CAGNY* 2014 Summary Schieber Research | February, 2014
2. This presentation demonstrates the strategic trends
regarding innovation and marketing, as shown on top food &
beverage companies on the recent Consumer Analyst Group New York
conference (Feb., 2014). We have researched selected companies in
order to gather major marketer trends expected to impact the
industry going forward. Schieber Research is a premium market
research boutique, providing tailor-made reports and competitive
intelligence reports. We assist Israeli and Global firms, as well
as strategic consultants, to make decisions which take into
consideration the relevant market, consumer and shopper trends; and
to know and consider the most important aspects of their decisions.
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3. Offering Solutions Fitting new lifestyles and markets
Internal & external joint ventures, open innovations and
M&As Leveraging key brand through new product platforms Shopper
Marketing Shopper Engagement along the Path to Purchase Leveraging
Retailer / Marketer insights Retailer / Marketer Co-Operation
Leveraging Consumer Insights Digital Lifestyle Health &
Wellness Combined with Indulgence and Convenience Identifying
Niches and Demographics As demonstrated by the CAGNY
presentations:
4. F&B manufacturers are researching the shopping and
consumption motivations of various consumer / shopper groups and
are responding accordingly Main consumer trends mentioned on CAGNY:
Communications shift towards digital and mobile Health &
Wellness search for better for you food and beverage, meaning fresh
and real, without sacrificing indulgence and flavor New consumption
opportunities snacking and smaller meals; the rise of breakfast
Macro changes demographic changes, urbanization affecting shopping
habits Sustainability is a must Kraft Foods Coca-Cola Hershey
5. Coca-Cola Pepsico
6. Main demographic and target changes discussed: A rising 55+
consumer group Millennials / Generation Y The Modern Family new
family structures The companies concluded that focusing on these
new markets requires customized product, marketing, selling and
communication solutions: say good-bye to One Size Fits All! Pepsico
Campbell Soup
7. Boomers / 55+ Consumers Have specific health needs empty
nesters require smaller packaging, smaller portions; one / two
serving ready meals Shopper needs larger, clearer labels and
nutritional info Conagra Millennials: Gen Y Digital natives, use
mobile for everything Friends are top influencers. Love to share
Believe in values such as: sustainability, community, giving back.
Value Good brands Campbell Soup targeting Gen. Y Pepsico Gen. Y
Communication * Are marketers missing opportunities regarding
Energy solutions to the 55+ consumers?
8. Marketers are adapting to the changes in media consumption,
and are allocating more resources to digital and social media, with
multi-channel and omni-channel marketing. KRAFT FOODS: utilizing
the companys digital assets in order to connect to consumers and
shoppers through content and value offering
9. General Mills Hershey Budget re-allocation
10. F&B Manufacturers continue to develop products which
cater to the new health and wellness needs: real ingredients, fresh
food, more protein and fiber, and claims such as energy and
anti-oxidants (more on the health and functional trends on the
Schieber Research Health Trends presentation). The companies also
invest in market education regarding health and physical activity,
for reasons of responsibility/ sustainability and regulation, as
well as brand positioning. Coca-Cola Campbell Soup
11. Companies are aware that consumers will not give up
indulgence and taste for the sake of healthier food; as a result,
successful innovations combine health and indulgence. Kelloggs
Kraft Foods General Mills
12. Mondelez: Consumption motivations General Mills: addressing
new consumption opportunities while offering flavor and wellness
Kelloggs: Responding to the changes in breakfast needs In addition,
the companies address the changes in eating lifestyles: snacking
and consuming smaller meals around the clock; more consumption away
from home / on the go; and the rise in breakfast
opportunities.
13. Shopper Marketing has become highly meaningful for
companies. It is based on leveraging manufacturer data regarding
the shopper as well as sharing of data between retailers and
manufacturers, aimed at increasing synergies and total buying.
Trade management in co-operation with retailers was one of the main
issues discussed on CAGNY this year, mainly the shifts in buying
channels, and the rise of online commerce and neighborhood stores.
Campbell Soup Coca-Cola General Mills
14. Conagra: Offering different price points to answer
different motivations of different shoppers (or same shopper in
different opportunities) Mondelez: designing the POS according to
shopping insights (e.g., crackers with cheese, oreo next to milk)
Hershey: positioning the new chocolate spreads next to bread as
well as next to bananas to suggest new usage opportunities
15. Conagra: Joint PL + Brand offering Hershey: solving the
under-the-counter untapped space problem
16. Conagra: Product packaging used to communicate brand
messages premium / healthy / natural Pepsico: Point of purchase
communicated the brand messages tailored to a specific crowd
Hershey: brand messages match year- round shopping events
17. A strategic shift from brand focus, to solution focus, in
order to answer a specific markets needs, often combining brands
and categories Solutions include using open innovation and JVs with
competitors who provide completing capabilities, to shorten TTM
Other solutions require bolt-on / transformative acquisitions.
Green Mountain Coffee Roasters / Keurig : catering to various user
needs in the coffee category, providing a platform for external
popular brands, JVs with Starbucks and Coca-Cola Coca-Cola
18. Kraft Foods + Mondelez: leveraging brands across categories
for product and point of sale implementation of consumer insights
Pepsico: enhancing ore brands through JVs, including with
Foodservice companies
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