Values and Vittles: A Commercial Marketing Practices Case History
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1 Values and Vittles: A Commercial Marketing Practices Case History Tom Nagle, Managing Partner STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 1
2 Values-based Messaging STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 2
3 STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 3
4 Facts may persuade, but it s emotions and values that motivate behavior. A values study maps how product attributes and their practical impact relate to the consumers feelings and experiences, eliciting emotional responses that are aligned with the consumers core values, ultimately leading to personal satisfaction. SELF Personal Values This is the foundation of effective messaging. Benefits Emotions Attributes CHOICES STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 4
5 STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 5
6 A case study. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 6
7 Can sales faced a future of decline Retail Unit Sales Projection MM Unit Sales 13,500 13,000 12,500 12,000 11,500 11,000 10,500 10,000 9,500 9, Source: IRI STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 7
8 Insights from research Consumer perceptions of canned foods: Chock full of preservatives Dull & tasteless Unhealthy Backward Little-known facts about canned foods: Freshness sealed in Preservative free Wholesome Family friendly Presenting information that refuted consumers belief that canned foods are high in preservatives created clear cognitive dissonance; Consumers also showed high levels of cynicism regarding food labels and ingredient statements supporting cans lack of preservatives. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 8
9 However, home canning resonated and resolved dissonance Home canning was an effective analogy to help educate people about the canning process, and change negative perceptions: Traditional Wholesome Like Grandma used to do. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 9
10 A values study linked the physical attributes and benefits of canning to the target audience s higher order motivations. SELF Personal Values Benefits Emotions So that I can relax and enjoy the moment even as I do the right thing. Which enables me to feel like a caring parent who delivers wholesome times while guarding what they eat Attributes Enable me to prepare quick, convenient home cooked meals that bring my family together for fun times Cans seal in foods fresh, natural goodness, retaining the flavorful taste, quality and important nutrients that STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 10
11 A clever play on words that s also a matter of fact. More importantly, it resonates with the target audience: Busy moms who want to do right by their family by serving wholesome, nutritious meals they enjoy that are also convenient, quick and easy to prepare. Canned foods = less worry, less guilt and more enjoyable family time. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 11
12 Initial primary messages Cans seal in freshness, flavor, nutrition, confidence and approval. Cans are an ideal tool for creating more and more successful meal occasions. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 12
13 Messages Disseminated via Robust Consumer Communications Owned Online Presence Dynamic Content Hub at Search Engine Marketing New, rich, relevant mobile-friendly content Social Media Twitter feed Robust Facebook Community Pinterest Page YouTube Channel Cross-Platform Paid Media Scripps Interactive s Food Network, Cooking Channel On TV, Online, Mobile Outreach to Nutrition Professionals Nutritionist and RD Canbassador Bloggers Media outreach promoting data from nutrition research pipeline Earned Media Canbassador Consumer Blogger Network TV Contributor Relationships Traditional print and online media relations STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 13
14 We ve elevated the level and quality of the social conversation about canned foods August to December Canned Food + Topics of Interest (pre-campaign) Total Mentions 7,068 8,943 (+26.5%) 22,256 (+148.9%) Positive Sentiment 11.2% 14.4% (+28.6%) 22.7% (+57.6%) Data Source: Sysomos, Aug Dec STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 14
15 Multiple messaging outlets directly correlates with greater reported use of canned foods. 88% Change in Use of Canned Food in Past Six Months by Exposure to Media Depth (% use canned food more often ) 66% 53% 32% 27% 19% 14% Exposure to 5+ Outlets 5% of consumers n=69 Exposure to 4 Outlets Only 5% of consumers n=59 Exposure to 3 Outlets Only 7% of consumers n=95 Exposure to 2 Outlets Only 13% of consumers n=164 Targeted Canned Food Consumers n=1305 Exposure to 1 Outlet Only 26% of consumers n=342 No Media Exposure 44% of consumers n=576 % use canned food more often among 1 media outlet only exposure types: 36% Google Search Only (n=64) 11% Print Only (n=44) 22% TV Only (n=134) 7% Retail Only (n=84) 2015 Base size: see individual media above. Q2. Thinking specifically about the amount of canned foods you are currently using, how would you say that your use has changed compared to 6 months ago? STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 15
16 Positively, there is an increase in net canned food usage among these consumers; i.e. more state they are using cans more often than less often. Change in Use of Canned Food in Past 6 Months (among Targeted Canned Food Consumers) % 26% Use Cans More Often 14% 27% Use Cans More Often 14% 13% 58% 12% NET: +10 (more-less) 60% 10% NET: +14 (more-less) 4% 16% Use Cans Less Often 3% 13% Use Cans Less Often Much more often Somewhat more often Somewhat less often Much less often About as often 2015 Base size: Targeted Canned Food Consumers, n= Significantly higher/lower than 2014 at the 90% confidence level. Q2. Thinking specifically about the amount of canned foods you are currently using, how would you say that your use has changed compared to 6 months ago? STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 16
17 Attitudes around the canning process continue to improve in 2015, a likely outcome of increased CGYC activities around this topic. % Agree/Strongly Agree with Canning Process Statements (among Targeted Canned Food Consumers) Fruits/veggies used for canning are picked when ripe 52% 54% 57% Fruits/veggies are canned within hours of being picked 40% 48% 51% 2015 Cans seal in the freshness of foods better than other types of packaging Canned foods do not need artificial preservatives because they are naturally preserved from the canning process The canning process that food manufacturers use is the same canning process used at home Canned produce is on par with or better nutritionally than fresh and frozen Not asked in % Not asked in 2013/ % 48% 51% 39% 44% 34% 40% 37% 2015 Base size: Targeted Canned Food Consumers, n= Significantly higher/lower than 2014 at the 90% confidence level. Q13. Please use the scale provided to indicate whether you personally agree or disagree with each statement. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 17
18 More consumers are talking about canned food in 2015 compared to last year and the overall tone of these conversations is increasingly positive. Sharing Opinions about Canned Food (among Targeted Canned Food Consumers) Among those who shared, opinions were : Positive 81% 78% Neutral 9% 10% Negative 10% 12% 20% of consumers shared an opinion about the use of canned food in the past six months. (17% in 2014) And they shared these opinions via... 77% - Conversation 32% - Online conversation 25% - Social media post 12% - Comment on blog/news site Net: +71 (positive negative) Net: Base size: Targeted Canned Food Consumers, n=1305; Consumers who shared opinion, n= Significantly higher/lower than 2014 at the 90% confidence level. Q4. In the past six months, have you shared an opinion about the use of canned foods, either online or in-person? / Q5. Using the scale below, please tell us what was your overall tone or feeling about the use of canned food? / Q6. In which of the following ways did you share your thoughts about the use of canned foods? STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 18
19 Results to-date have tracked the middle case scenario Pre-Campaign Retail Unit Sales Projection MM Unit Sales 13,500 13,000 12,500 12,000 11,500 11,000 10,500 10,000 9,500 9, Actual IRI data No Campaign Worst Middle Best STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 19 Source: IRI 19
20 STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 20
21 Thank you! STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 21
22 Dairy Case STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 22
23 Advertising is the visible part of most industry/category marketing programs But the success of most industry-level Got milk? programs depends on a number of things you don t see. Consumer The incredible Communication edible egg. Customer Cotton: Marketing the fabric & Communications of our lives. Find and address the barriers to business growth, not just the messaging opportunities. Facilitated Pork. Customer The other Experimentation white meat. Industry Business Development Initiatives Plastics make it possible. Products, Process & Marketing R&D Beef it s what s for dinner. Market Intelligence & Research STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 23
24 National Pork Board Advertising & Public Relations $27,247,260 44% Non-Communications Marketing & Administration $31,575,800 50% Freedom to operate Sustainability, Animal welfare Local business climate advocacy Producer methods education & training Retail & foodservice programs International market development, education & issues Research & Development $ 3,477,000 6% Producer Profitability Animal and Process R&D Nutrition Disease Management Total Budget: $62,300,060 Estimated rate-of-return: $15.50 for every check-off dollar invested during from STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 24
25 Cotton Incorporated Advertising & Public Relations $20,856,000 31% Non-Communications Marketing & Administration $25,693,000 38% Global Supply Chain Marketing Cotton Management Systems Strategic Alliances Importer Support Programs Strategic Planning and Program Metrics Research & Development $20,451,000 31% Product Development & Implementation Agricultural & Environmental Research Fiber Quality Research Total Budget: $67,000,000 After 40 years of Cotton Incorporated marketing and research across every link on the cotton supply chain, cotton has moved from a 35% market share to 61% of apparel and home textiles. STATLER NAGLE ELEVATE MARKETS, ACCELERATE RESULTS 25
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