healy socmed in conf ind themc jun2011

8/6/2019 Healy SocMed in Conf Ind TheMC Jun2011

1/10

The Manufacturing Confectioner June 2011 37

The best businesses in any industry focustirelessly on the ultimate driver of theirsuccess: the customer. The confectionery

industry has important channel partners

distributors, wholesalers, retailers who

are, of course, valued customers. But the

ultimate arbiter of our success is the cus-

tomer we call a consumer, because this is

the person who decides whether our tea-

infused chocolate, our carbonated chewing

gum or our guacamole-flavored jelly bean is

worth the money in his or her pocket today,

and whether it will still be worth the price

tomorrow.

Understanding customers and thereby

gaining their business depends largely, of

course, on listening. Even when a customerisnt yet sure what he or she wants, that very

uncertainty can provide us insights that lead

to new opportunities to meet that cus-

tomers needs and very possibly the same

or similar needs of the customers friends,

family or colleagues. This is true whether

we sell candy, computers or carpeting.

In just the last five years our ability to

listen to and understand customers for

now, lets focus specifically on consumers

has grown almost unimaginably through

the advent of social media. By now the

names of social network sites such as Face-

book and LinkedIn have become familiar to

many of us, but these represent just a part ofthe tens of millions of online conversations

that also take place around the clock on

blogs, forums and platforms such as Twit-

ter. Millions of additional pieces of what

has come to be known as consumer-gener-

ated content photos shared on Flickr,

videos uploaded to YouTube and the like

are posted daily. If our ability to capture

consumer conversations five years ago was

akin to overhearing occasional snatches ofwater-cooler conversation, it now seems that

we have been transported into the middle of

cacophonous crowds in Times Square on

New Years Eve.

And, frankly, the quality of the conver-

sations varies as broadly as the range of top-

ics, from the mundane to the philosophical,

from politics to potato chips. We are, after

Using Social Media toSweeten ConfectioneryIndustry GrowthThe millions of conversations on social media provide us newways to learn more about what matters to our customers.

Pete HealyGyroHSR

Pete Healy is VP

account planning at

GyroHSR LLC. Prior to

this appointment he

was the director of

Crowbar Marketing.

He previously worked

at Perfetti Van Melle

USA and Jelly Belly

Candy Company.


2/10

all, just plain people before were con-

sumers, but therein lies the payoff. We are

social animals, and most of us enjoy being

in the know, sharing our opinions and

influencing others.How good is that new

restaurant? Which 4G cell phone is the best?

Is that new dark chocolate candy bar as

good as it looks?

Like it or not, people consumers, in

commercial terms are using social media

to talk about our products and our brands.

This is human nature, but now vastly ampli-

fied through a new-media universe thats

here to stay. Do we want to listen? Do we

want to learn? Do we want to converse

with people who clearly are engaged

enough to share their raves, complaints,

suggestions and desires? Social media

offers the confectionery industry an

unprecedented opportunity to leverage the

voice of the customer in developing and

delivering products and an overall brand

experience that can attract, engage and

retain loyal consumers in an intensely com-

petitive, impulse-driven category.

THE CURRENT SOCIAL MEDIALANDSCAPEXXXXXXXXXXXXX

In 2008, Brian Solis, a highly regarded new-

media thought leader based in San Fran-

cisco, mapped the universe of social-

media sites as a color wheel (Figure 1),

with a spectrum that ranged from main-

stream and niche social network sites

(Facebook, LinkedIn) to video and music

sites (YouTube, Pandora) to blog and con-

versation platforms (Blogger, Tumblr, Twit-

ter). This map, which Solis entitled The

Conversation Prism, also depicts dozens

of other sites through which millions of

people share text-based and graphic con-

tent of all types. Soliss map is an insight-

ful snapshot of a very young universe; some

of the sites listed will disappear over time,

while others will grow and new ones arise.

Still, the point is that people have signed on

to social media at an accelerating rate, even

if its only to see (or share) photos of their

grandchildren on Facebook.

In fact, Americans have embraced sev-

eral social network sites with fervor (with

one exception: MySpace, one of the first

mainstream sites, now in decline as newer

sites grow dramatically). Figure 2 summa-

rizes key attributes of the current main-

stream social-media sites:

The social-media landscape extends, of

course, beyond network sites like these.

The Ning platform or metasite (www.ning.

com) comprises a virtual gated community

of thousands of niche-interest groups rang-

ing from accountants to rock-climbers to

devotees of Renaissance music. The site

invites visitors to create and run their own

social networks under the Ning umbrella

for a monthly fee.

Flickr is perhaps the best-known photo-

Social Media in the Confectionery Industry

Social media offers

the confectionery

industry an

unprecedented

opportunity toleverage the voice

of the customer in

developing and

delivering products

that can attract,

engage and retain

loyal consumers.

38 June 2011 The Manufacturing Confectioner

Figure 1

The Conversation Prism


3/10

sharing site, containing an estimated 4.5 bil-

lion images uploaded by members into gal-

leries of all types. Approximately

80,000 blogs are launched each day, with

the total now numbering in excess of 110million (although many have become dig-

ital flotsam, unattended by their authors).

Tens of thousands of forums are main-

tained by people sharing interests in every-

thing from car seats to carpentry. Fiskars is

one company that has revitalized its brand

of scissors by creating a forum dedicated to

and administered by passionate scrapbook

hobbyists (www.fiskateers.com).

Of course, not everyone participates

equally. In late 2007, Josh Bernoff and

Charlene Li of Forrester Research intro-

duced a social technographics ladder to

represent the range of activity (Figure 3).

Inactives, unsurprisingly, do not partic-

ipate in social media, although they may

use the internet to shop, for email or for

similar Web 1.0 activities. One step up,

spectators contribute no content, but

read customer ratings and reviews, among

other activities; even at this lowest rung of

participation, social media is influencing

purchase decisions on a scale far beyond

traditional word of mouth. The amplifica-

tion of influence was recognized by

Bernoff and Li when they added conver-

sationalists to their model in 2010. These

are participants who do not generally post

original content, but who actively foster

discussions on blogs, forums, opinion sites

and the like. At the top of the social

technographics ladder are the critics and

creators who, as their labels imply, reg-

ularly post product reviews and author

blog entries, and upload photos, videos or

other content. (Of note is the fact that

videos and annotated photos are now

widely used for many product reviews.)

Why have millions of people gotten so

involved in social media? First is the core

fact that, as weve noted, human beings are


Approximately

80,000 blogs are

launched each day,

with the total now

numbering in excessof 110 million.


FacebookUsers (2011): 525MM worldwide; 154MM in USA (double since 2009)Demographics: 18 24 yrs = 25%; 25 34 yrs = 25%; 35 44 yrs = 20%Site Character: Fr iends & familyNotes: Average FB user is on the site 25 min per day; 71% of all U.S. internet users on FB

TwitterUsers (2011): 190MM worldwide; 90MM in USA (up from 12MM in 2009)Demographics: 45% of users >35 yrs (average user age = 39)Site Character: Real-time, experiential, eclectic: from the mundane to the profoundNotes: Annual household income of users: 30%>$100k, 58% >$60k

YouTubeViews (2011): Two billion views per day worldwide (600MM in USA)Demographics: GlobalSite Character: Eclectic in content, multilingual, multicultural

Notes: FB users in aggregate watch 46.2 years of YouTube videos per day; each auto-sharetweet about a YouTube video spurs seven new YouTube user sessions

LinkedInUsers (2011): 95MM worldwide; 45MM in USADemographics: 64% male; average user age = 41Site Character: Professional; networking and discussion forumsNotes: Average annual household income of users: $110k

MySpaceUsers (2011): 46MM (USA); down from 65MM in 2009Demographics: 56% female; 44% are 18 34 yrsSite Character: Bands, high school students, 30-something momsNotes: Annual household income: 46% at


4/10

inherently social animals. We want to

belong. Beyond our obvious survival needs,

we want to voice our thoughts, exchange

ideas and learn from others.

Second, the simultaneous development

of a consumerist culture and mass com-

munications during the 20th century fos-

tered our tendency to connect to brands

to choose Ford over Chevy, for exam-

ple through our relationships with other

people. Describing the merits of the new

Lexus around the water cooler, debating

who makes the best golf clubs with friends

at a barbecue or seeing platoons of teens at

the mall all wearing Abercrombie & Fitch

outfits: these all represent the role of

brands in our need for self-identity, self-

expression and peer affinity.

In fact, for many of us, these two emo-

tional drivers have engendered a third,which we can call the brand/friend blur,

that is, the fact that we often rely on brands

for comfort, excitement or other emotional

boosts much as we might expect from

friends. Coffee shops were coffee shops

until Starbucks came along, elevating the

emotional reward of consuming coffee to

a level that engendered remarkable and

enduring brand loyalty. The coffeehouse

chain remains a friend of sorts to count-

less millions around the world.

Fourth and last, online social media and

networks have immeasurably increased

the opportunities each of us has to be a

brand champion, that is, to recommend

a product, a service or a brand to a far

larger and widespread audience than our

traditional circles of family, friends and

colleagues. Of course, the same audience is

available when we play the role of a brand

detractor; either way, the point is that

social media provides for many individuals

a scope of influence unimaginable even

10 years ago.

But thats not all, as some TV ads pro-

claim. Another wave of amplification is

hitting us at this moment: the increasingly

rapid diffusion of mobile technology in the

form of smartphones (Figure 4). The inter-

net marketing-research company com-

Score reports than one in four cell phone

owners in the United States now uses a

smartphone, a clear indication that were

increasingly online while on the move. In

fact, comScore research confirms that

nearly 40 percent of smartphone owners

are using internet browser functions to

access news and information online, and

nearly 25 percent regularly use their smart-


The simultaneous

development of a

consumerist culture

and mass

communicationsduring the 20th

century fostered

our tendency to

connect to brands

through our

relationships with

other people.


Figure 3

The Social Technographics Ladder


5/10

phones to access social network sites. This

means that the conversations that take

place across the internet have even greater

reach as people participate from smart-

phones and other mobile devices.

IMPLICATIONS AND OPPORTUNITIESFOR CONFECTIONERY R&D/PRODUCTIONNXXXXXXXXXXXXXXXXX

Sociology and changes in the media land-

scape are well and good, but what do they

matter for confectionery-industry profes-

sionals working in product development or

production? The answer lies not only in how

social media amplifies, but how it also accel-

erates conversation among consumers, andbetween consumers and businesses. Con-

sider the consumer who feels she received

an unhelpful response from your customer

service department to her question about

a possible allergen in your product. In the

recent past she may have told a handful of

others about her dissatisfaction. Today, she

has the option of using her blog or a social

network to share her discontent (or worse)

with hundreds or thousands of others

instantly, some of whom will likely share or

echo her message with others in their own

networks. This ripple effect can be aston-

ishingly fast; and while it may dissipate just

as quickly, it may also gain force as it

spreads, provoking attention from reporters

in mainstream media.

Consider a broader issue such as the crit-

icisms expressed by some health advocates

and consumers over the use of high-fruc-

tose corn syrup in food and beverage prod-

ucts, including, of course, confectionery.Your company may have received no

inquiries or complaints so far, but the man-

ner in which social media disseminates and

perpetuates discussion with, arguably, a

disproportionate representation of extreme

opinion may at some point draw your

business into the fray. Why do you use high-

fructose corn syrup in your products? Why

dont you label it more clearly on your

packaging? When do you plan to stop using

it? The risk to your companys reputation

and to its brand image may be substantial.

Senior corporate managers may right-

fully object to the possibility of unjustified

attacks or ill-informed accusations from

vocal activists online. Marketing managers

may fear that they will lose control of

their brand if they venture into the social-

media realm. But if you are one of those

managers, the likely fact is that consumers

are already talking about your brand or

your business. You can remain silent while

the conversation continues, or you can

present your own point of view. When

mom-bloggers were offended by an online

ad campaign for Motrin in September 2008,

they unleashed their anger quickly and

vociferously on their blogs and through

Twitter. McNeil Consumer Healthcare, the

maker ofMotrin, was further criticized for

being slow and insincere in its apology.

Once the apology was made, however,

some mom bloggers called upon others to

let the issue go, showing that a sense of

fairness can prevail in social media, just as

in offline communities.

Returning to a positive scenario, con-

sumers may be delighted with your new

tea-infused chocolate truffles. You may dis-


The likely fact is

that consumers are

already talking

about your brand

or your business.You can remain

silent while the

conversation

continues, or you

can present your

own point of view.


Figure 4

Social Media Amplification


6/10

cover that several prominent bloggers are

generating many positive comments in

response to their posts about your prod-

uct. In fact, someone has set up a Face-

book page where nearly a thousand fansare already sharing their ideas for new fla-

vors; seaweed-infused truffles are winning

at the moment.

Of course, several aspects of these sce-

narios package design or new-flavor

requests, for example traditionally fall

within marketing or customer service. Here

again, though, the rules are changing. Social

media not only amplifies and accelerates,

it provides even the r&d or production

professional ensconced in the most remote

laboratory or office the opportunity to

access the voice of the consumer almost

immediately, in real time and with little

effort. Whether that professional scans

social media to stay ahead of potential

problems or to stay current with her col-

leagues in marketing, customer service or

sales, online conversations offer a tremen-

dous wealth of information and insights.

In 2010, the semiconductor manufacturer

Intel decided to ask consumers for new

product ideas. The company launched a

Facebook page through which consumers

could submit their own ideas or comment

on those submitted by others. The winner

of this promotion would be named vice pres-

ident ofr&d for a day, with the chance to

work with Intel engineers at the companys

product-development center. Other prizes

included notebook computers and software.

The results of the 10-week event were

remarkable: 53,000 participants who gen-

erated 5,000 unique ideas; 200,000 views

of those ideas; 8,000 comments and 110,000

ratings; and a total of 420,000 engagements

between consumers and the Intel brand.

Perhaps more relevant to food-industry

professionals is the example of My Star-

bucks Idea, an online social community

the coffeehouse chain launched in the

spring of 2008. The premise was straight-

forward, as Starbucks told visitors to the

site, You know better than anyone elsewhat you want from Starbucks. So tell us.

A recent check of the site showed that

more than 44,000 ideas have been submit-

ted for food and beverage items, including

flavors, blends and formulations. This fig-

ure does not include another 21,000 ideas

for merchandise other than food and bev-

erages. It also does not include thousands

of suggestions related to the customer

experience inside Starbucks locations.While Starbucks has the advantages of a

global brand and thousands of its own

storefronts, it achieved that status only by

listening to its customers. The advent of

social media has given the company even

more opportunities to deepen the engage-

ment and loyalty of its fans.

IMPLICATIONS FOR CONSUMER-DRIVEN BRAND ENGAGEMENTX

If consumers increasingly regard their

favorite brands as a part of their self-iden-

tity, as a platform for peer affinity and even

as vehicles for self-expression, social media

clearly offer new ways to project those

emotional elements. Yes, that may be true

for cars or clothing, one might say, but isnt

it far-fetched to ascribe the same dynamics

to a roll of mints or a bag of candy corn?

Most marketers would agree that this is

not far-fetched, since the physical product,

as important as it is, constitutes only the

starting point for creating a brand experi-

ence that, if positive, can grow and deepen

over time. When the consumers emotional

attachment is validated by positive reac-

tions from others in his network, his

engagement with the brand deepens, rais-

ing the odds that he will continue to pur-


Social media

provides the R&D

or production

professional the

opportunity toaccess the voice

of the consumer

almost immediately,

in real time and

with little effort.



7/10

chase the product. While the relevance of

product categories varies for each con-

sumer depending on his or her needs and

desires, confectionery has the advantage

of being a fun, low-cost category from aconsumer standpoint.

The low-cost, low-risk attributes of con-

fectionery make it an easy product to talk

about. Trial based on someones recom-

mendation is usually simple and inexpen-

sive, and in the flat world of social media,

nothing more is required to post an opinion

or review. (In fact, even product trial is

optional, if one chooses to dismiss an item

as too weird, unhealthy or otherwise unde-

sirable.) In broader social terms, confec-

tionery is an easy conversation starter. Just

like wandering into a neighborhood party,

the first-time visitor to Twitter or another

social network site uses the topic to break

the ice, project some personality, establish

rapport and create new acquaintances. If I

like salted licorice and you like sweet, we

share a starting point from which to explore.

But if I like Darrell Lea licorice and you

prefer Panda, then we move from category

to brands, adding another dimension to

the conversation. Confectionery is inher-

ently fun, at the same time evoking child-

hood memories and other pleasant asso-

ciations. But we can talk only so long about

a product type or category in general.

Brands, as we have noted, provide a spring-

board to do more, to project our individual

personalities. Brands often serve as a

means of self-expression. This is evident

in consumer actions that range from the

simplefor example, the habitual use of

a tagline from a TV adto the elaborate,

as when friends gather to drop chewy mints

into bottles of soda, releasing foamy gey-

sers and provoking boisterous amusement.

In the summer of 2009 Ruiz Foods

decided to give fans of their Tornados hot

snacks a new way to share their enthusiasm

for the brand. Without a large marketing

budget, the company chose Facebook as its

platform to launch a series of monthly con-

tests and sweepstakes, each centered onsharing and rating consumer-generated con-

tent, ranging from fan videos to flavor ideas.

Visitors to the Tornados Facebook page

could download coupons, and win points

redeemable for Tornados-branded mer-

chandise and even a family trip to a

Nascar race at Daytona by commenting

on other visitors content. When the Face-

book page reached 100,000 fans, Ruiz Foods

committed to providing 100,000 free boxesofTornados through downloadable buy-

one, get-one e-coupons. By the end of the

campaign, the company had gained more

than two million brand engagements with

consumers online and well over 150,000

new Facebook fans. And by any measure,

Ruiz Foods was successful in boosting the

Tornados brand by using social media in

combination with tried-and-true promo-

tional activities to create new fans and

strengthen consumer brand loyalty.

By now, millions of pieces of consumer-

generated content about brands (including

confectionery) have been shared on blogs,

Facebook and Twitter, and through videos

and photos uploaded to YouTube, Flickr and

similar sites. Consumers use social media to

amplify their engagement. Their posts accel-

erate imitation and engagement by others,

and marketers can access these engage-

ments, however large or small, more easily

and broadly than ever before.

LEVERAGING SOCIAL MEDIA FROMCONCEPT TO CASH REGISTERXXXXX

How do we turn brand engagement

through social media into sales that help

our businesses grow? This can be done in

numerous ways through each step of the


Consumers use

social media to

amplify their

engagement. Their

posts accelerateimitation and

engagement by

others. Marketers

can access these

engagements more

easily and broadly

than ever before.



8/10

process from product concept to cash reg-

ister, and can be tailored to the goals and

resources of any manufacturer.

Corazonas Foods, a manufacturer of

snack foods based in Los Angeles, is a good

example. Driven by the death of her father

from heart disease, ceo Ramona Cappello

started the company in 2005 with the goal

of creating tortilla chips and other snacks

that both taste good and can actually lower

cholesterol. The companys products con-

tain plant sterols that have been clinically

shown to provide this benefit, and prod-

uct packaging includes the FDA-approved

health claim.

Corazonas Foods is another company

that has chosen Facebook as their key

social media platform through which to

create and retain fans and customers. Much

like Ruiz Foods, Corazonas offers coupons

through the social network site, but also

goes further with a direct Prove It chal-

lenge. A visitor can register her name and

email, and then have her cholesterol tested

before and after eating Corazonas snacks

over a four-week period. If her cholesteroldoesnt drop, the visitor will receive a

refund. The company extends the brand

experience, including social-media ele-

ments, all the way to the point of purchase,

where shoppers can receive cholesterol

screenings near Corazonas displays and

in-store sampling. The company uses Twit-

ter to announce screening schedules and

itineraries for interested consumers.

In general terms, then, manufacturerscan leverage social media and digital tools

in a number of ways to differentiate and

strengthen their brands:

Product concepts/product innovation

Google Alerts and similar tools to scanblogs and forums for trend-focused con-versations on analogous categories suchas flavored beverages, baked goods orcross-cultural fusion foods.

LinkedIn Groups to track conversationson technical issues, particularly in inter-national contexts.

Marketing

Facebook to engage consumers in con-

versation about your brands and products. Twitter and Facebook to promote and

report in real time on sponsored events,roadshows, in-store demos.

Flickr to share event photos, or to inviteconsumers to post their own photosrelated to their experience of yourbrands or products.

YouTube to share event or roadshowvideo, or to invite consumer-generatedcontent related to a contest or promotion.

Google Analytics to understand visitortraffic to and on your brand or companywebsite, and to integrate website andsocial-media consumer/brand touch-points more effectively.

Mobile applications to deliver incentivesand personalized content to opt in con-sumers (may be triggered by shopperscans of quick response codes at pointof sale).

Sales/trade support

LinkedIn Company or Group page(s)

for distribution of value-add informa-tion to channel partners or retail tradecustomers.

Twitter for real-time updates on in-storedemos or other promotional events.

Customer service/consumer affairs

Addictomatic or similar low-cost toolsto scan consumer sentiment or responseto specific events.

Twitter or Facebook to engage consumers,facilitate resolution of complaints, proj-

ect responsive image for the company.

INTEGRATION INTO BUSINESSSTRATEGIESXXXXXXXXXXXXXX

By its nature, social media is open and

accessible. Conversation and collaboration

replace the one-way push communica-

tions of traditional advertising and Web 1.0

corporate websites. Social media therefore

challenges companies to attain higher lev-


Companies that

integrate social

media into their

culture and

operations willstrengthen

alignment of their

business and

brand strategies.



9/10

els of collaboration across corporate func-

tions in order to compete more effectively.

In fact, companies that integrate social

media into their culture and operations

will strengthen alignment of their businessand brand strategies, in turn strengthen-

ing brand equity and brand loyalty among

consumers.

Like other cpg (consumer packaged

goods) companies, confectionery manu-

facturers can integrate social media into

their operations in various ways, depend-

ing on business goals, resources and inter-

nal culture. Nonetheless, the foundation

must be a firm and sustained commitment

by senior management to leverage social

media in order to do the following:

Engage consumers openly and authen-tically about the companys productsand brands.

Recognize and reward fans of the com-panys brands.

Optimize opportunities to supportand/or promote retail trade customers.

Inform those interested about the com-panys community-focused programs orevents.

Represent the industry of which thecompany is part.

With appropriate support, senior man-

agement in each functional area should

evaluate and propose ways to leverage

social media, and toward what objectives.

Appropriate support in planning, imple-

mentation and periodic measurement can

take the form of a nimble cross-functional

team trained in social-media practices. (For

those wondering why this would matter to

accounting or hr managers, its worth not-

ing that professionals in those fields are

generally very active on social network

sites such as LinkedIn and Ning.)

Keep in mind that the fundamental goal

is to tap social media as a new tool to gain

customer insights, to innovate, to build

brand loyalty that drives sales and to

improve operations while reducing inter-

nal functional silos. For that reason, social-

media team members should never be iso-

lated in a separate department ofwhatever sort, called upon only when a

manager wants a funny viral video.

RETURN-ON-INVESTMENTCONSIDERATIONSXXXXXX

Thats all great, one may ask, but whats

the bottom line? Whats the roi (return

on investment) of social media for a candy

company? In these early days of this new

media landscape, there is no single, simple

answer. The good news is that tools of

measurement abound; the big questions

are what to measure, and why.

Some successful business people see

social media as an investment in learning

more about customers through dialogue,

or as a way to anticipate and leverage

trends sooner and more effectively. What

is the roi on equipping your sales force

with cell phones? What was the point of

creating a company website 10 years ago?

In fact, as more companies begin to use

social media, what may have provided a

competitive edge two years ago is fast

becoming table stakes. But as we know,

ultimately there is a cost and, therefore, a

net value to any business activity.

The debate over the roi of social media

reflects the tension between opportunity

and risk in a new marketing landscape. But

it has been intensified by attempts (often

by social-media proponents) to apply

financial terminology to nonfinancial meas-

ures: the number of hits on a company

microsite, the number of fans on a Face-

book brand page, the number of views of

a companys YouTube video and the like.

These can be meaningful indicators, but

they clearly are not financial measures.


The fundamental

goal is to tap social

media as a new

tool to gain

customer insights,to innovate, to

build brand loyalty

that drives sales

and to improve

operations while

reducing internal

functional silos.



10/10

At this point the value of the sales-fun-

nel model comes to mind. Can we evaluate

and select social-media-related indicators

that might lead toward conversion? Can

we connect one consumer/brand touch-

point to another, and track the progression

to quantifiable sales points? For example,

can we launch interactive digital ads that

lead viewers to our microsite, where they

would receive an incentive to share with

friends via Twitter or Facebook, ultimately

driving new sales at nearby retailers?

As mobile applications multiply, 4G cell

phones with geo-location become com-

monplace, and quick response (qr) codes

provide manufacturers with new ways to

incentivize consumers all the way to the

retail aisle, a social-media-driven sales fun-

nel becomes increasingly feasible. We have

discussed the rapid diffusion of smartphones,

which enables increasing numbers of con-

sumers, while standing before product dis-

plays in a store aisle, to interact with the

companies that make those products. We

also have discussed the opportunity to use

social-media platforms in combination witheach other and with traditional marketing

tactics. In the case of Corazonas Foods and

its cholesterol-lowering snack products, this

approach has enabled them to increase their

share ofacv (all commodity volume) up to

40 percent in key markets, a remarkable

achievement for a small company in an

intensely competitive category.

But in all cases, and regardless of tactics

or technology, the essential nature of socialmedia remains paramount, in the form of

a willing partnership and ongoing dialogue

of the consumer with the brand marketer.

CONCLUSION

The advent and spread of social media in

hardly more than five years has trans-

formed the relationship consumers have

with brands and with the companies that

produce those brands. The one-way push

of traditional advertising is now joined by

conversations moving in all directions. In

this rapidly changing landscape, marketers

fear losing control of their brands and

ceos wonder whether social media can

really help business.

But if nothing else, we have learned that

the millions of conversations on social

media can teach us new ways to learn more

about what matters to our customers,

including how they influence each other,

and why they choose to purchaseor

bypassour products. We can explore the

new social-media landscape one step at a

time, learning as we go, if were commit-

ted in that effort. This includes the clear

understanding that fans on Facebook dont

equal register rings, but that more fans can

mean more sales, more often if we set the

right goals and measures.

People are talking about our brands; that

is a simple reality. The question is whether

we believe we can grow our businesses by

ignoring or by engaging in those conver-sations. As new as social media still is, smart

companies already know the answer. n

REFERENCES

Bernoff, Josh. Empowered. Forrester Blogs. Jan-uary 2010. Web: http://forrester.typepad.com/groundswell/2010/01/conversationalists-get-onto-the-ladder.html

Bernoff, Josh, Charlene Li. Social Techno-graphics Ladder. Forrester Research, 2010.

Solis, Brian. The Conversation Prism v2.0.@BrianSolis blog. March 30, 2009. Web:http: / /www.briansol is .com/2009/03/conversation-prism-v20/


The millions of

conversations on

social media can

teach us new ways

to learn moreabout what matters

to our customers,

including how they

influence each

other, and why they

choose to purchase

our products.


Presented at the PMCA Production Conference

healy socmed in conf ind themc jun2011

Documents