wellness… the next frontier. overview artful philosophy and approach evolving consumer landscape...
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Wellness…
the next frontier
Overview
Artful Philosophy and Approach
Evolving Consumer Landscape(wellness in the sweet-spot)
Application to Beverages
Artful Enterprises, Inc.
Overview
Artful Philosophy and Approach
Evolving Consumer Landscape - wellness in the sweet-spot
Application to Beverages
P C MPerform, Counsel, Mentor
Quantitative IntegrativeManagement
Artful Enterprises
Trend identificationConsumer researchCorporate & brand positioningCommunication strategy / executionMarketing management
Executive management
Supply-chain management
Strategic planningFinancial management
Executive mentoring
Strategic marketing
Non-financial metricsMarketing engineering
Structuring strategic alliances
e
Integrative Functions
The Traditional Choice in
New Business Creation
vs.
In-house new product development
Strategic acquisition of brands and
businesses
Build Buy
A New Choicein
New Business Creation
New business focus
New business expertise
Variable cost structure
Superior results
Build BuyEarly Life-stage
Outsourcingvs. vs.
Artful Enterprises, Inc.
Specialists in new business creation
Serving the beverage and food industries since 1989
Vertically integrated new business creation/management
Artful Sodas Artful Spirits Artful Edibles..
Conception
Validation
Market Preparation & Incubation
Transfer
New Business Conception
The Artful difference:
Practicing the “art” of new business creation
– Marketing “science” alone is not enough
Designing brands as “wholes”
– “Virtual reality” products vs. disembodied concepts
Aiming ahead rather than sideways (or behind)
– “What’s next” vs. “me too”
Aiming Ahead
Artful Enterprises aims to create beverage and food businesses just slightly ahead of the curve.
Leapfrogging rather that matching competitors.
To do so, we make it our practice to “stay in touch with the future”
The marketplace is dynamic; the future can be glimpsed by looking in the right places and at the right people right now.
...this represents Artful Enterprises’ R&D
“Some skate where the puck is … I skate where it’s going to be.” -Wayne Gretzky
Anticipating the Future
•Gourmet and specialty stores
•Health food stores
•Restaurants
•International
•Supermarkets
•Convenience stores
•Vending
•Mass Merchandising
Consumer Type:
Early Majority
Late Majority
Laggards
Many incremental new products appear in “niche” venues and are tried by innovators and early adopters; over time mainstream consumers become aware, intrigued and eventually try those with “staying power.”
Retail Venues:
Innovators/Early Adopters
Phase: Incubation Early Acceptance Mainstream Acceptance
•Perimeter locations in select supermarkets
•Delis
Middle Majority
Focus here for products
Bracket Consumer Reactions Over Time
Designing Brands as “Wholes”
The common practice of separating “core concept” from “execution” in new product development is not just flawed but dangerous. Consumer behavior is based on fully-formed brands.
“Core concepts” make poor proxies for final products.
“Execution” merits more than window dressing treatment.
Brands that are “born whole” have a head start on life. They provide a more accurate stimulus for consumer response.
“Core concept” and “execution” are more apt to be integrated.
The Integrated Brand Model
Artful Enterprises designs every brand as a system of mutually reinforcing elements.
This discipline governs all facets of Artful Enterprises brand development: branding, product formulation, packaging, etc.
“What it is” “What it does” “What it means” “Who it is”
Attributes Benefits ValuesPersonality
Traits
Haagen Dazs
“What it is” “What it does” “What it means” “Who it is”
(Original Ice Creams)
High butterfat ice creams made
from premium quality
ingredients
Tastes exceptionally rich & creamy
Hedonistic pleasure
DiscriminatingSophisticatedSelf-Indulgent
Examples of “Dis-integrated” Brands
Red Dog Beer
Crystal Pepsi
V-8 Splash
Smartfood Popcorn
New Business Validation
The Artful difference: The right stimulus:
– “Virtual reality” products: branded, packaged and (usually) formulated vs. more abstract/disaggregated product stimuli
The right respondents:
– Selective use of 1st round chef input
– Rigorous selection of target consumers based on 1) relevant category experience/commitment and 2) culinary fluency
Heavy users to optimize; typical users to quantify
– Optional use of bracketing product behavior and attitudes methodology as appropriate
“Category innovators” to gauge future vitality; “category mainstreamers” to gauge closeness of opportunity
The right questions:
– Preference for competitive as well as stand alone (monadic) measures
– Emphasis on behavior (simulated purchase) over speculation (purchase intent)
– “Real-time” approach to depth of repeat when ever possible
The Artful Process
Informal consumer reactions Initial taste panel assessment
Quali-Quant Phase Chef screening / assessment Consumer interviews; product concept fit Further chef / taste panel assessment as needed
Quantitative Phase Competitive and monadic measures Real-time depth of repeat
Broker/trade reactions
Lead market performance Qualitative consumer research (trier-acceptors,
trier-rejecters, aware non-triers)TRANSFER
VALIDATION
MARKET PREPARATION
CONCEPTION“Whole” concepts:
name, packaging, formulation
Nature of Feedback
INCUBATION
Depth of Repeat
Assessment
Trial Assessment
Optimization
The Consumer Landscape:
A Putative Mapping of Based Perceptions of Foods and Beverages Today
Two Powerful Dimensions
NUTRITIONAL VALUES AN
AFTERTHOUGHT
NUTRITIONAL VALUES A PRIORITY
• Consumers’ perceptual orientation to food, reflecting their knowledge and actual choices based on its nutritional content
• Consumers’ experiential orientation to food, reflecting their actual behaviors based on physical needs or desires
FOOD FORSUSTENANCE
FOOD FORPLEASURE
Four Distinct Consumer Types Based on Attitudes and Behavior
FOOD FORSUSTENANCE
FOOD FORPLEASURE
NUTRITIONAL VALUES AN
AFTERTHOUGHT
NUTRITIONAL VALUES A PRIORITY
1 4
2 3
The “HEDONISTIC” Consumer
May have nutritional awareness; actual behavior is driven by the pleasure principle
Span the socioeconomic gamut from Junk Food Junkies to upscale Epicureans
Shop across channels: traditional grocery, Gourmet Specialty, Natural Foods, Club, and C-stores
Food for Sustenance
FOOD FORPLEASURE
NUTRITIONAL VALUES AN
AFTERTHOUGHTNutritional Values a Priority
“LiveFor
Today!”
The “INDISCRIMINANT” Consumer
“Indiscriminant” consumers are most likely single and male
Span a broad socioeconomic range, from street people to frat boys
“ Infrequent and impulse shoppers”; C-stores, fast food, “where ever”
Food for Pleasure
NUTRITIONAL VALUES AN
AFTERTHOUGHT
Nutritional Values a Priority
“Whatever”
FOOD FOR SUSTENANCE
The “CONTROLLING” Consumer
Variety of subtypes: bodybuilders/ athletes, dieters, medically restricted and the alternative lifestyle crowd…vegans, macrobiotics, etc.
Often first to adopt new nutritional approaches, ingredients, and products
“Mom and Pop” health food stores / natural food stores, organic markets, grow-their-own, wellness practitioners, GNC’s, etc.
Food for Pleasure
Nutritional Values an Afterthought
NUTRITIONAL VALUES A PRIORITY
“No pain,No gain!”
FOOD FOR SUSTENANCE
The “QUALITY OF LIFE” Consumer
“Good to themselves,” in all senses, seek: good taste, good nutrition, good energy and the good feelings they all impart
Choose balance over sacrifice, and naturally delicious wholesome foods over modified or engineered “health foods”
Represents the center of “wellness”
FOOD FOR PLEASURE
Nutritional Values an Afterthought
NUTRITIONAL VALUES A PRIORITY
“Live well,be well.”
Food for Sustenance
Shop across channels
Natural Food
– especially for produce, breads, home meal replacement, unique items, supplements
Gourmet Specialty
– imported items, unique items, home meal replacement
High End Supermarkets
– general shopping needs, some unique items
Club Stores
– staples / bulk, also new items
Traditional Grocery
– location driven
The “QUALITY OF LIFE” Consumer
“Live well,be well.”
The Expanding “Quality of Life” Sector and … The Sweet Spot for Wellness Foods
FOOD FOR PLEASURE
Nutritional Values an Afterthought
NUTRITIONAL VALUES A PRIORITY
Food for Sustenance
Education
EconomicImprovements Adverse
experience with modified foods
“Hedonistic” “Quality of Life”
“Controlling”“Indiscriminant”
Adoption of Nutritionally Based Food Trends
FOOD FORSUSTENANCE
FOOD FORPLEASURE
NUTRITIONAL VALUES AN
AFTERTHOUGHT
NUTRITIONAL VALUES A PRIORITY
Passive Receptives
Active Seekers
The World of Wellness
Nutrition&
Hydration
Emotional Fulfillment*
Exercise
Sleep
StressReduction
Body Spirit
• Wellness is well-rounded; traditional “health” is more one-sided• True Wellness foods and beverages nourish the spirit as well as the body
*Includes personal relationships, job satisfaction, spiritual life, etc.
• Wellness is well-rounded; traditional “health” is more one-sided• True Wellness foods and beverages nourish the spirit as well as the body
Body Spirit
The World of Wellness
*Includes personal relationships, job satisfaction, spiritual life, etc.
Nutrition & Hydration
Emotional Fulfillment*
Stress ReductionSleep
Exercise
Health & Wellness Associations
Wellness
General
Body, mind, spirit (holistic)
Physiological and psychological
A subjective idea (personally defined)
An ongoing process
Lifestyle (all facets)
Balanced
Experiential
Contemporary
Proactive
Achieving well-being
Health Specific
Body-based (localized)
Physiological
An objective state (standard measures)
An attainable goal
Regimens (diet, exercise)
Controlled
Functional
Traditional
Reactive
Avoiding disease
“Sweet Spot” for growth and “Wellness” is the same
Nutritionally Empty
“Wow”
“Yawn”
Grainy BreadsWrapsPasta
Premium Indulgences
(Steaks,Premium Ice Cream, Chocolate, Desserts, Coffees,
Gourmet Pizza)
(Doritos, Twinkies,Oreos, Big Mac, Slurpee)
Health Modified Foods
(Low Fat, Low Cal, Low Taste)
Fringe Foods/ “Health” Foods(soy / tofu, wheat gluten
wheat grass, protein powder)
Nutritionally Valuable
SushiSmoothies
Juice Bar Juices
Cup YogurtOatmeal
Tropical/ExoticsFruits/ Veggies Gourmet Salads
Juice drinks
Staples (Milk, processed bread, rice,
ordinary fruits and veggies: apples, carrots, juice, chicken, cheese, eggs,
etc. )
Proprietary
Commodity
Junk Food and Fast Food(Taco Bell, Jack –in-the-Box, frozen pizza, private label, etc.)
Junk Food and Fast Food
Green Teas
Application to Beverages:
Mainstream
Emerging
Nutritionally
Empty.
Beverages
“Wow!”
“Yawn”
Nutritionally
Rich.
Bolthouse Farm
Dole 100% JuiceRef. Blends
100% juiceunique flavors
100% juicestandard flavors
Beyond “Nutritionally Valuable”
Wellness Promoting Beverages–two key defining dimensions related to: The nature of the drinking experience (implicitly usage-driven)
Substantial / Light / Satiating Refreshing
The nature of the perceived “goodness” (implicitly user-driven)
“Natural State” / Enhanced viaAbsence of Negatives Fortification
Defining Ingredients / Attributes ofWellness Promoting Beverages
Could include individually or in combination:
Substantial / Light / Satiating Refreshing
Protein
Dairy
Soy
Vegetable juice
Slow-burn complex carbs
et cetera
Water
Tea
Juice
Light carbonation
et cetera
Defining Ingredients / Attributes ofWellness Promoting Beverages
Could include individually or in combination:
“Natural State”/ Enhanced via Absence of Negatives Fortification
Organic
No GMO’s
Freshness Dated
(refrigerated or produce)
100% juice--not from concentrate
No sugar added
Probiotic
et cetera
Vitamins
Minerals
Phytonutrients
Isoflavins
Energy/Perform. herbs
Nutriceuticals
et cetera
Examples: Wellness Promoting Beverage Brands
Substantial
“Natural State”
Fortified
Light
Ito En, Honest Tea
Knudsen
After the Fall
Crystal Geyser Juice Squeeze
Glaceau
Sobe
Fuze
Red Bull, et al
Odwella, Naked
Bolthouse Farms
Silk
Dannon, Stoneyfield Farms
Select Odwella items
Juice Bar Power Shakes
Protein Powders / Liquid meal
Wellness Promoting Beverages:Opportunity Areas
Based upon: Product Gaps
– “Better” juice
· cider
· fruit and vegetable blends
– “Wow” vegetable juices, going beyond “red”
· the “Odwella of vegetable juice”
– More pleasurable – “Wow” water
· with “natural state” sensory complexity
Wellness Promoting Beverages:Opportunity Areas
Based upon: Platform Opportunities
– Target to the sensory and nutritional wants and needs of Women
– Fully leverage the product and experiential benefits of tea
· The “Starbucks of Tea”
– Pioneer Phytonutrients
– Pioneer Probiotic beverages and foods
Wellness Promoting Beverages:Opportunity Areas
Based upon: Intriguing Idea Starters:
– Mental Gatorade
– Liquid Power Bar
– Sunrise Smoothies
– Green Tea Smoothie
– et cetera
Brands to Watch:
– ITO EN
– Bolthouse Farms
– Naked
Ways to Work with Artful Enterprises
Source of new business idea
From the Artful Enterprises, Inc. portfolio of brands
From scratch to client specifications
Scope and tenure of Artful Enterprises involvement
Short term (1 year maximum)
– Conception only
– Conception, Optimization, Validation
– Optimization, Validation
– Conception, Optimization, Validation, Market Prep
Medium - long term (2-3 years)
– Conception, Optimization, Validation, Market Prep, Incubation, Transfer
Seize the Artful Advantage
New business-building brands that are: Strategically Sound
Executionally Exciting
Born Whole
Consumer Validated
Professionally Nurtured
Portfolio Compatible