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ConsumerOf The FutureInsights on Consumer Packaged Goods
January 2019
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.
Table of Contents
All of the material in this document is copyrighted and may not be reproduced in whole or in part without express written permission. For permission, contact Joe Sciara at jsciara@barkleyus.com.
05 About This Study
07 ConsumerPackaged Goods
14 AboutBarkley
22 Resources
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AboutThis Study
Full of noise, constant competition and easy access to just about everything, the modern market is congested with brands doing anything to stand out, while consumers too often respond by shutting off. Potent modern brands understand why: They listen to and study consumers, then evolve to meet their needs.
It’s our business to help brands get to know their consumers, to connect with them through ideas that drive the entire spectrum of a brand, from business strategy to marketing strategy. And, ideas that are not just for now, but for what’s next. Our commitment to knowing modern consumers better than anyone inspired
this latest deep-dive into modern brand mindsets and brand impact levers as they pertain to various categories.
In partnership with Jefferies and Accenture Strategy, we conducted a proprietary survey of 2,851 consumers that studied consumer preferences and purchase drivers across multiple categories, including personal care & beauty, apparel, packaged foods and QSR restaurants.
We investigated modern brand mindsets — or the cross-generation collection of behaviors and attitudes that a brand can leverage to drive performance in terms of share, growth and loyalty. These mindsets are informed by the impact of Millennial and Gen Z expectations of modern brands, as they form
the majority of people engaging in commerce — the core of what we call modern consumers.
Brands that understand the modern consumer will be more likely to create an emotional connection that drives brand love and loyalty — which equates to higher brand value.
Modern Brand Mindsets
Adding GoodPurposeful
Simplifies My LifeAccessible
ReinventingInnovate
Emotional ConnectionSelf
Puts ConsumerTrustedNeeds First
Conversational +Social Circle
Participative
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.NO DISTRIBUTION OR REPRODUCTION WITHOUT PERMISSION.
Consumer Packaged Goods
01
Product
Communications
Design
Experience
Workforce
What the brandtakes to marketand sells
The symbols and narratives that tell a brand story
The manifestations of a brand that make it top of mind
Customers’ directexperience with a brand
The internal culturethat defines a brand from the inside out
Brand Impact Levers We also looked at impact levers, defined as the sub-system of product, experience, communications, design and workforce activities. These levers connect a brand’s business and marketing ideas with its consumers and stakeholders.
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
9Personal Care
& Beauty
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9Consumer
Packaged Foods
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Important Factors Today vs Two Years Ago
Important Factors Today vs Two Years Ago
More than half of all consumers now expect brands to meet their emerging needs.
66%
50%90%>
50%42%27%
Health Benefits are more important
of consumers say taste or price is the most important factor
of consumers agree taste and price are as or more important than two years ago
Quality, Safety & Trust are more important
Social Impact is more important
Brand Recognition is less important
Important Factors
Taste and Price
figure 2.1Brand Beliefs and Expectations by Generation
Help me discover new
things
Anticipate my needs
Be consistent with the image I want to convey
Supports issues I
believe in
Allow me to create and customize
0%
20%
40%
60%
80%
100%
Source: Brands Still Matter Consumer Survey 2018
Source: Marketing to Gen Z 2018
Gen ZMillennialsGen XBoomers
Taste and price are still the most important factors driving performance in Packaged Foods. This hasn’t changed for two years. Still, other factors are becoming more important, with emphases on health benefits, quality/safety/trust and social impact.
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
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MindsetStatements
Trusted
Innovative
Is honest in its actions and communications
Creates innovative products and solutions
Self
Accessible
Helps me live a simpler, healthier life
Makes it easy for me to use their products
SocialCircle
Purposeful
I love to tell my friends about them
Cares about sustainability and the environment
Mindset StatementsModern Brand Mindsets
figure 1.2Modern Brand Mindsets - Consumer Packaged Goods/Food & Beverage Index to All Categories
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
Social AccessibleSelf Innovative Trusted Purposeful
40
80
120
160
0
When looking at the importance of the Modern Consumer Mindsets in this category, accessibility,
trust and self are important overall to driving performance.
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BrandImpact Levers
figure 1.4Brand Impact Levers
Brand Impact Levers While performance measurements across categories find that product matters most when buying staples such as packaged
foods and household goods, brand experience and communications become more critical in other categories.
PackagedFood
Brand Communications
Brand Experience
Product + Service
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
figure 1.3TURF
MaleFemale
Makes it convenient to shop for
and buy their products
Makes it easy
for me to use their products
Helps me live a simpler,
healthier life
Cares about sustainability
and the environment
Reflects my
lifestyle
Is honestin its
actions and communication
Is always testing
new ideas
Creates innovative products
and solutions
Is authentic and true to
its roots
0%
20%
40%
60%
80%
100%
We used a TURF analysis (total unduplicated reach and frequency) to see what individual Modern Brand Mindset statements drove reach in this category. The chart below indicates that it only takes four factors to reach 70 percent reach
with men and women. Shopability, ease of use, brand promise and sustainability are key attribute factors. Men prefer brands that portray images they can relate to, and look for more innovation.
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
ModernBrand Mindsets
Fast Food Restaurants
Packaged Food
Personal Care & Beauty
Household Products
Fashion & Apparel
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KeyTakeaways
0% 20% 40% 60% 80% 100 %
Has advertising that is easy to understand.
Has a logo, packaging or storefront that is easy to recognize.
Has a logo, packaging or storefront that is visually appealing.
Has a logo, packaging or storefront that is modern and up to date.
Offers products/services that are reliable or consistent.
Offers products/services that are good value for my money.
Has products/services available in the size/flavor/format, etc. that fits my needs.
Offers products/services that are high quality.
Regularly launches new product variants (flavors/fragrances/colors/styles).
While product is the most important performance factor for Packaged Foods, individual statements indicate that package design plays a more amplified role in helping to navigate products on shelf. In fact, design statements scored at the highest levels of importance in this category.
figure 1.5Brand Impact Statements
Source: Accenture / Barkley / Jefferies 2018 Consumer of the Future Study
DESIGN
PRODUCT/ SERVICE
61%
65%
64%
59%
59%
62%
62%
62%
55%
Key TakeawaysModern consumers view brands as a collection of ideas that embody a mindset(s) and activate across brand impact levers, albeit not all equally. As a result, brands do well when they:
• Shift away from the Golden Rule of Treat others as you want to be treated, and move toward the new Platinum Rule, Treat others as they want to be treated.
• Understand that modern consumers value authentic brand purpose built through a virtuous cycle of trust, purpose and loyalty, with accessibility being paramount.
• Recognize that brand impact levers vary by demography, category, mindset and brand lifecycle — there’s no “one size fits all” when it comes to connecting with consumers.
• Clearly and consistently convey their brand value and use personalized engagements to build emotional connections.
• Invest in experience and communications levers.
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Capability
Growth Opportunities To extract growth, brand owners need to focus on three types of next-generation capabilities.
Consumer Insight & Strategy Formulation
Continually renewing market awareness driving consumer-centric brand portfolio strategy.
Operating Model Agility
Living organization with modular plug-and-play structure that adapts to changing market conditions, balancing speed, flexibility and efficiency.
Brand Activation: Bringing Brands to Life
Meaningful consumer engagement integrated in consumers’ lives through deep insight, agile innovation, and authentic, relevant brand stories.
Source: BSM Executive Interviews; Accenture Research
However, brands must build new capabilities to win in the marketplace: larger brands must invest in such capabilities more than emerging brands due to their leadership role in the marketplace.
CAPABILITYRequired Mastery by Brand Type
Leading Retailer Emerging
Con
sum
er In
sigh
t &
Stra
tegy
Continually Renewing Market and Consumer Awareness: Holistic, data-driven external outlook that continually scans the market and identifies disruptive opportunities.
Compelling, Balanced Portfolio: Clear and disciplined brand portfolio strategy.
Bran
d Ac
tiva
tion
Agile Innovation: Deep consumer insight drives rapid product/service/business model innovation.
Consumer Intimacy: Hyper-relevant consumer engagement creates authentic brand stories and meaningful relationships.
Consumer-Centric Omnichannel: Brand alignment across proliferating array of business models based on consumer occasions.
Ope
rati
ng M
odel
Agi
lity
Market-Adapting Supply Chain: Demand-sensing manufacturing and supply chain balances flexibility and efficiency.
Living Organization: Nimble and modular organization that supports multiple business models with diverse strategic objectives.
Ecosystem Mastery: Design, form and manage ecosystems for value creation.
Source: BSM Executive Interviews; Accenture Research
COPYRIGHT © 2019 BARKLEY, INC. AND FUTURECAST, LLC. ALL RIGHTS RESERVED.
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Authors &Contributors
About Barkley At Barkley, we are committed to knowing the modern consumer better than anyone. We take pride in future-proofing business models and modernizing iconic brands. However, we are more than an ad agency. We are integrated business partners who are analytic and innovative at the core, using data to drive marketing conversation
and strategies. This culture of innovation allows us to partner with our clients to create the solutions of the future. Our emerging technology innovation practice has built and deployed new technologies that create more engagement with the savviest generation of consumers we’ve ever seen.
About Authors & ContributorsBrad Hanna | bhanna@barkleyus.comBrad is an Executive Vice President and Director of Business Strategy at Barkley. Brad serves as senior advisor and strategy lead across a portfolio of major brands. He has played a vital role in shaping the research and strategy design projects for Barkley, as well as collaborating with FutureCast on major projects since 2011.
Jeff Fromm | jfromm@thefuturecast.com Jeff is President of FutureCast. Jeff has co-authored two books on Marketing to Millennials and a new book on Gen Z.
Chad Nicholson | cnicholson@barkleyus.com Chad leads Barkley’s Business Strategy team, responsible for providing deep insight into factors affecting overall business and brand performance. Focus areas include food and beverage categories such as meat protein, dairy, produce and alcohol beverages across retail and food service.
Accenture and Jefferies contributed to this report through the Brands Still Matter Survey and Consumer of the Future Survey.
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Credits
Resources Credits
Production
Arthur Cherry Associate Design Director
Sara LeutyDesigner
Anh Truong Designer
Contact
Joe Sciara EVP of Growthjsciara@barkleyus.com
Editorial
Jennifer MaziWriter
Eli Lafollette Designer
Joni Thomas Designer
Max Jaffee Designer
Danielle Smith Proofreader
1 Brands Still Matter Survey (2018). Accenture Strategy; Jefferies.
2 BSM Executive Interviews (2018). Accenture Strategy.
3 Consumer of the Future Study (2018). Accenture Strategy; Barkley; Jefferies.
4 Marketing to Gen Z (2018). Jeff Fromm; Angie Read.
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Insights on Consumer Packaged Goods
Consumer of the Future
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