E-COMMERCE STRATEGIES THAT CREATE CONSUMER VALUE Elena Ozeristkaya Fresh Insight August 27, 2015
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
Keynote 10 min 1. Introduction on Generations & Millennials 15 min 2. 4 case studies on E-commerce 5 min 3. Outlook 4. Q&A
Introduction on generations: Babyboomers (1945-1960). Cold war Woodstock Family oriented Traditional roles Signature product: Television Communication media: face-to-face or telephone Positive generation
Babyboomers & Food. Knowledge about cooking Cook from scratch Desire variety & authenticity Healthy & conscious eaters Visit farmers market
Introduction on generations: Generation X (1961-1980). Fall of Berlin Wall Reject rules Men & Women work Divorce rate rises Signature product: Personal computer Communication media: email and text message Sceptical generation
Generation X & Food. Lack knowledge, motivation & cooking skills, use microwave Prepared or easy to prepare meals Desire convenience & taste Convenience eaters Shop at retail
Introduction on generations: Millennials (1981-1995). 9/11 terrorists Social media Reality TV Google earth Signature product: Tablet & smartphone Communication media: text or social media Realistic & Adventurous generation
Millennials is taking over 34% global population in 2020. 41% are ethnic or racial minority 88% interested in trying new food The most tech-savvy, in control and diverse generation
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
Social media is their sixth sense Source: Bravo -The Millennial generation rules
There is a need to be connected all the time Source: Bravo -The Millennial generation rules
Millennials Food is adventure We consider food an adventure and seek out different, ethnic and artisan foods, and anything new and different.
Consumers are looking for products that fit their identity
Millennials Eat as they go Pressed for time Eat anything anywhere More handheld food. Small plates 35% of their meals are snacks
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.
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.
How consumers shop for groceries is changing fundamentally 52% Consumers use technology during their grocery shopping
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%
Shopping for food needs should be an experience is it s not fun, not meaninfull, not memorable then why botter going there
Millennials want authenticity & transparency
Millennials want to co-create
2. 4 Case studies on E-commerce
The Food Assembly 27-8-2015
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" 27-8-2015
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.
Disruptor: Hello Fresh
Disruptor: Hello Fresh
Amazon Fresh 27-8-2015
Amazon Fresh recipes & related ingredients 27-8-2015
Amazon Dash 27-8-2015
Segment your consumers and develop personalized offerings
Segment your consumers and develop personalized offerings
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?
3. Outlook
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.
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)
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.
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!
E-commerce strategies 5. Establish a dialogue with consumers, learn constantly and react!
How to attract young consumers & boost vegetables consumption? 6. Align your brand strategy
Tel : +31612496084 Email : elena.ozeritskaya@fresh-insight.eu Website : www.fresh-insight.eu Twitter : E_Ozeritskaya Visit : Richard Holstraat 73 3131 EN Vlaardingen The Netherlands
Sources Bravo -The Millennial generation rules: http://www.slideshare.net/yrglobal/millennialgeneration?related=2 HelloFresh a better way to cook: www.hellofresh.com Amazon Fresh one hour delivery: www.amazonfresh.com Shoedazzle, personlized shoe offerings: www.shoedazzle.com Food Assembly, buying food together: https://thefoodassembly.com