E-COMMERCE STRATEGIES THAT CREATE CONSUMER VALUE

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1 E-COMMERCE STRATEGIES THAT CREATE CONSUMER VALUE Elena Ozeristkaya Fresh Insight August 27, 2015

2 Introduction 14 years experience in consumer research Fast Moving Consumer Goods Unilever Fresh Produce Syngenta Founder Fresh Insight mid 2012 Help companies innovate through customer insight & cocreation

3 Keynote 10 min 1. Introduction on Generations & Millennials 15 min 2. 4 case studies on E-commerce 5 min 3. Outlook 4. Q&A

4 Introduction on generations: Babyboomers ( ). Cold war Woodstock Family oriented Traditional roles Signature product: Television Communication media: face-to-face or telephone Positive generation

5 Babyboomers & Food. Knowledge about cooking Cook from scratch Desire variety & authenticity Healthy & conscious eaters Visit farmers market

6 Introduction on generations: Generation X ( ). Fall of Berlin Wall Reject rules Men & Women work Divorce rate rises Signature product: Personal computer Communication media: and text message Sceptical generation

7 Generation X & Food. Lack knowledge, motivation & cooking skills, use microwave Prepared or easy to prepare meals Desire convenience & taste Convenience eaters Shop at retail

8 Introduction on generations: Millennials ( ). 9/11 terrorists Social media Reality TV Google earth Signature product: Tablet & smartphone Communication media: text or social media Realistic & Adventurous generation

9 Millennials is taking over 34% global population in % are ethnic or racial minority 88% interested in trying new food The most tech-savvy, in control and diverse generation

10 Millennials/Millenials = Global Megatrend The rise of Millennials/ Millenials is everywhere In Latin America, there are more than 176 million Millennials representing 30 percent of the region s total population

11 Social media is their sixth sense Source: Bravo -The Millennial generation rules

12 There is a need to be connected all the time Source: Bravo -The Millennial generation rules

13 Millennials Food is adventure We consider food an adventure and seek out different, ethnic and artisan foods, and anything new and different.

14 Consumers are looking for products that fit their identity

15 Millennials Eat as they go Pressed for time Eat anything anywhere More handheld food. Small plates 35% of their meals are snacks

16 Millennials Food is fun and need to be experienced (Social) Food experiences: Food is fun, with interactive digital menus which provide backstories about the food; consumers can access, order, pay and share using their smartphones.

17 Millennials eating up Youtube FoodChannels According to Google, Millennials users of YouTube watch 30 percent more food videos than any other demographic, helping drive a 280 percent growth in food channel subscriptions over the last twelve months.

18 How consumers shop for groceries is changing fundamentally 52% Consumers use technology during their grocery shopping

19 51% of Millennials consult 4 or more sources when deciding which product or service to purchase FRIENDS & FAMILY are top sources of information that we seek out when making major decisions FAMILY 77% FRIENDS 64% Search engine 21% Expert website 21% Co-worker 20% Social networks 13% Go it alone 8%

20 Shopping for food needs should be an experience is it s not fun, not meaninfull, not memorable then why botter going there

21 Millennials want authenticity & transparency

22 Millennials want to co-create

23 2. 4 Case studies on E-commerce

24 The Food Assembly

25 A cross between a farmer's market and a buying group, the system is booming in France La Ruche Qui Dit Oui - "the hive that says yes"

26 Disruptor: Hello Fresh Our vision is to establish a whole new category on the wider grocery market and build a truly global consumer food brand.

27 Disruptor: Hello Fresh

28 Disruptor: Hello Fresh

29 Amazon Fresh

30 Amazon Fresh recipes & related ingredients

31 Amazon Dash

32 Segment your consumers and develop personalized offerings

33 Segment your consumers and develop personalized offerings

34 Come up with personalized offerings Are you looking for produce with a high nutricious value? If 3x YES you should try Kale! Are you adventurous? Do you want to prepare a meal within 20 minues?

35 3. Outlook

36 E-commerce strategies 1. Connect, interact & Co-Create - Involve consumers in developing product concepts/value propositions: explore customer needs/insights, product benefits, reason to believe etc.

37 E-commerce strategies 2. Come up with a strategy that brings value to consumers. Tick as many boxes: Adventurous (taste, recipes, inspiration) Personalized (experience, segment, offerings) Health/nutrition/well-being Convenient (snacking/help/same day delivery) Authentic (real deal, rustic, traditional, nostalgic) Social Responsible (good ethics, do good) Transparent (what you see is what you get) Affordable (do consumers want to pay for my value)

38 E-commerce strategies 3. Be as authentic as they are. Be open & transparent: show yourself, what you stand for, how you produce and what you want to achieve.

39 E-commerce strategies 4. Use new technology. Work with social networks as Pinterest, have apps to inform and support consumers, develop video s! share cool infographics!

40 E-commerce strategies 5. Establish a dialogue with consumers, learn constantly and react!

41 How to attract young consumers & boost vegetables consumption? 6. Align your brand strategy

42 Tel : Website : Twitter : E_Ozeritskaya Visit : Richard Holstraat EN Vlaardingen The Netherlands

43 Sources Bravo -The Millennial generation rules: HelloFresh a better way to cook: Amazon Fresh one hour delivery: Shoedazzle, personlized shoe offerings: Food Assembly, buying food together:

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