Social and Digital Media Changing Food Culture by MSL Global

Social & Digital Media: changing food culture Selected Opportunities for Food & Beverage Marketers

ÂŠ 2012 MSLGROUP

MSLGROUP Americas:

FOOD & BEVERAGE SPECIALTY Food and beverage marketing and PR â&#x20AC;˘ Category leader in digital food and nutrition communications

Offices nationwide

Clients nationwide from farm to fork, consumer and industry focused

Part of MSLGROUP, a top-five global PR and events marketing firm

Registered Dietitians on staff; in-house culinary and nutrition center

Under the Publicis umbrella

ÂŠ 2012 MSLGROUP

FOOD & NUTRITION TRENDS 2012 Our Annual Food Trends Forecast

THE HARTMAN GROUP

• Principal provider of global research on consumer culture, behaviors, trends and demand and a leading advisor on market strategy to the world’s best-known brands

• The Hartman Group is internationally recognized for breakthrough perspectives on emerging and evolving consumer behaviors in health and wellness, sustainability and food culture

FEATURING DATA AND INSIGHTS FROM CLICKS & CRAVINGS A Hartman Group and MSLGROUP AMERICAS Syndicated Study

In tandem with smart communications counsel, the Clicks & Cravings report is a powerful tool to help brands strategize their approach to social and digital media.

CLICKS & CRAVINGS:

The Impact of Social Technology on Food Culture

ÂŠ 2012 MSLGROUP

QUALITATIVE AND QUANTITATIVE STUDY Ethnographic, in-home studies • 25 studies in Seattle and Chicago • Diverse sample (generation, children, SM and food engagement) • $60,000+ HHI (excepting younger Millennials) • Visit followed social media fast and feast

National online survey • December 2011; 1641 U.S. online adults, 18-64, nationally representative • Both users and non-users of social media

What it isn’t • Analysis of web traffic and usage data • Review of best practices among food & beverage marketers

INDEX

TRANSFORMING FOOD CULTURE An antidote to isolation “Someone like me” An architecture of influence The dominant source of food info Food discovery The path to and from purchase Influence and “real people” Deals and recipes

NEW MODES OF FOOD CULTURE ACQUISITION

TRADITIONS

TRANSACTIONS

TECHNIQUES

TABLE

Media, travel, retailers, restaurants and brands introduce us to new tastes, cuisines & possibilities

Online “research,” shopping and sharing is part of pre-shop to post-shop experience

Video, recipe sites, blogs and our foodie friends are replacing mom and cookbooks

Virtually break bread through computers and phones (often without a table)

(meal planning)

(shopping)

(preparing)

(eating)

NEW MODES OF FOOD CULTURE ACQUISITION

ALMOST HALF Of consumers learn about food via social networking sites, such as Twitter and Facebook

40% Learn about food via websites, apps or blogs

• Used to discover new foods, share food experiences, and get advice about food

CROWDSOURCING DISPLACING MOMSOURCING Consumers formerly rely most heavily on mom and family traditions for meal planning Now search online for what to cook, without ever tasting or smelling

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A DIGITAL EXPERIENCE OF FOOD • Digital food selection is less of a sensory experience • More of a visual and rational process

“What’s in the recipe?”

“Show me the picture!” P11

OPPORTUNITIES FOR BRANDS • Rethink every assumption about food marketing • Don’t assume continuity of food traditions

• The big changes we’re seeing can drive big shifts in market share – take risks now to exploit them • Plan for a remade market led by Millennials and the Connected Generation

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INDEX

Transforming food culture

AN ANTIDOTE TO ISOLATION “Someone like me” An architecture of influence The dominant source of food info Food discovery The path to and from purchase Influence and “real people” Deals and recipes

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INTIMACY IN ABSENTIA Contemporary life often finds us far from family and friends Social media turns isolation into creation • Loneliness motivates people to connect

Food is a natural connector • Humans are inherently social eaters which makes social media and food a perfect pair

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EATING ALONE, BUT TOGETHER

When we eat alone, we can still be together

45%

39%

45% of all adult meals are alone

39% of consumers engage in social media while eating, often during lunch

“There’s no dining table … We all eat on the couch with the TV, tablets, phones. We hang out all the time so it’s not like we have to talk and eat.”

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CONNECTED EATING: FOIL TO ISOLATION

36% 29% 18%

Texted with a friend or family member

Used a social networking site/app AT HOME

Used a social networking site/app AWAY FROM HOME

DOMINANT REASONS: To stay in touch with friends and family & to relieve boredom ÂŠ 2012 MSLGROUP

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A CURE FOR THE ISOLATION OF MOTHERHOOD Social media engagement rises significantly with motherhood • A second wave of this study will cover moms only

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OPPORTUNITIES FOR BRANDS Dive deep and understand if there is a place for your brand at the table • Can mealtime present a chance to talk with your brand’s representatives?

Offer consumers company at mealtime Invite consumers to share their meal experiences with communities

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INDEX

Transforming food culture An antidote to isolation

“SOMEONE LIKE ME” An architecture of influence The dominant source of food info Food discovery The path to and from purchase Influence and “real people” Deals and recipes

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WHAT DO PEOPLE LIKE ME THINK AND DO? Consumers are tapping into each other’s expertise • Blogs, recipe forums and review sites appeal because they represent the knowledge and experiences of people “like me”

KATIE • Gluten-free • Avid baker • Loves to entertain

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PEOPLE “LIKE ME” Expertise and reliability are created through:

MAX

384 friends

RATINGS: When people approve of you

FOLLOWERS: When people listen to you

MENTIONS: When people talk about you

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TWO TYPES OF REAL Opinions of the individual as a “real person”

The home-grown expert blogger

The personable celebrity

My foodiest friend

My mom

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TWO TYPES OF REAL Opinions of the masses as “real people”

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OPPORTUNITIES FOR BRANDS

Recognize what you are not • Brands are not people • At best, they are connected to people or the brainchild of people • Find your people

Like a real person, don’t just invite people to your house • Get involved in communities – like recipe sites where brands are welcome

Give up some power and invite consumers to discuss your products • Sharing what they like and don’t like

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INDEX An architecture of influence Has emerged

Transforming food culture An antidote to isolation “Someone like me”

AN ARCHITECTURE OF INFLUENCE The dominant source of food info Food discovery The path to and from purchase Influence and “real people” Deals and recipes

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THREE PROTOTYPES & THEIR ROLES

Spectator 384 friends

Dreamer 1,100 friends

Doer 7,000 friends

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THE SPECTATOR PASSIVE

The Spectator Social media is life as lived today • Consumes content • Socializes

384 friends

Julie is like most people Julie is a consumer of useful information, news, entertainment and good deals

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THE DREAMER PASSIVE

The Dreamer Active social media user • Consumes people • Curates content

1,100 friends

Lisa is very social Lisa curates and pushes content to her social network that reflects her style & sensibilities

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THE DOER PASSIVE

The Doer Core in both food & social media • Creates content • Inspires followers

7,000 friends

Natalie is a brand Natalie is well positioned to be the voice of other brands, if she really likes them

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OPPORTUNITIES FOR BRANDS

Segment communications by type but address the whole ecosystem of “referral” To be social on social media, know the actors, follow the netiquette, and step into the flow of conversations

CONSUMER

BRAND INFLUENCER

REVIEW

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INDEX An architecture Online media now of influence the dominant Has emerged source of food information Transforming food culture An antidote to isolation “Someone like me” An architecture of influence

THE DOMINANT SOURCE OF FOOD INFO Food discovery The path to and from purchase Influence and “real people” Deals and recipes

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TIME READING AND LEARNING ABOUT FOOD

46% 31% 23%

ÂŠ 2012 MSLGROUP

Spend more time engaged online about food

Equally engaged with online and print about food

Spend more time engaged with print about food

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MULTIPLE MEDIA REMAIN RELEVANT Food Resources Used in Past Year Food shows I watch on TV

31%

Cookbooks

29%

Coupons printed in newspapers or magazine

28%

Recipe websites or phone apps

25%

Printed magazines or newspapers

25%

Coupons found online (not including deals from Groupon, Living Social)

24% 17%

Restaurant review websites or phone apps Daily deals from Internet sites or apps like Groupon or Living Social

15%

Food or beverage manufacturer websites or apps

13%

Grocer websites or apps

13%

Food blogs or online food-oriented websites or feeds

12%

Staff, in-store demonstrations or printed materials from a grocery Instructional videos online ÂŠ 2012 MSLGROUP

9% 7% P33

FUTURE: Among Millennials, online recipe resources now more valuable than cookbooks or food shows on TV; print in stark decline

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OPPORTUNITIES FOR BRANDS Don’t bet on any one medium at this point Gear strategy to generation, especially when it comes to print Track emergent channels like in-store apps • Do consumers want to talk with you while in store?

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INDEX An architecture Social media is aofFOOD influence Has emerged discovery medium Transforming food culture An antidote to isolation “Someone like me” An architecture of influence The dominant source of food info

FOOD DISCOVERY The path to and from purchase Influence and “real people” Deals and recipes

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SOCIAL MEDIA DISCOVERS Food topics most interested in when using social networking sites New restaurants to try

37%

Restaurants to avoid

26%

Meal planning (e.g., new recipes to make)

25%

New types of foods or beverages to try (such as ingredients, cuisines)

22%

New brands of foods or beverages to try

21%

Nutrition and ingredients

20% 17%

Foods or beverages to avoid Alerts about food safety (e.g., product recall)

ÂŠ 2012 MSLGROUP

14%

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OPPORTUNITIES FOR BRANDS

Join the consumer journey and share your discoveries Reveal a steady stream of welcome information Tie your brand to restaurant discoveries Beware and prepare for product safety scares in social media

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INDEX An architecture Social media is transforms aofFOOD influence the Has pathemerged to and from purchase medium discovery Transforming food culture An antidote to isolation “Someone like me” An architecture of influence The dominant source of food info Food discovery

THE PATH TO AND FROM PURCHASE Influence and “real people” Deals and recipes

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A NEW PATH TO PURCHASE Purchase Funnel gives way to Connected Circle

Forrester model

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“RESEARCH” BEFORE TRYING OR BUYING We use social media to mitigate risk • To get the best value and make the most informed decisions • We assess opinions from review websites, online forums, and personal networks • Decisions based on the number of stars, reviews and caliber of comments

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RANT OR RAVE AFTER WE’VE EATEN & SHOPPED We add our experiences and opinions to the user-generated review process • Usually when we’re really upset or really impressed

“I love this juice!”

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EXAMPLE: LEIGH BUYS A GRILL • Pre-shop experience: • Broadly queried Facebook friends about grills • Read reviews on multiple retail websites • Joined 20,000+ followers of Weber on Twitter • Became a member of an online grill forum

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EXAMPLE: LEIGH BUYS A GRILL • Leigh chooses a Weber Summit Series grill

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EXAMPLE: LEIGH BUYS A GRILL Leigh Scott

• Post-shop experience: • Posted pictures of the grill on Facebook • Posted pictures of the grill’s first meal from her husband’s birthday party

Salmon from AllRecipes.com; it had 5 stars and over 100,000 people saved it. So, obviously it was really good!

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OPPORTUNITIES Think about more closely integrating shopper marketing with social media functions • Consumers have closer ties to stores • Could better account for the full circle of purchase engagement

Win points with the extraordinary • Dependable and predictable doesn’t win raves

Manage negative issues within microseconds • Should big brands now manage issues with 24/7 situation rooms?

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INDEX An architecture Influence Social media is accorded is aofFOOD influence Has emerged TO “Real People” discovery medium Transforming food culture An antidote to isolation “Someone like me” An architecture of influence The dominant source of food info Food discovery The path to and from purchase

INFLUENCE AND “REAL PEOPLE” Deals and recipes

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INFLUENCE STARTS WITH A PERSON Consumers prefer to hear from people who eat food, not entities who sell it Social Media makes consumers savvy • They don’t tolerate artificiality in voice or motive

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Consumers follow people on Twitter, become friends on Facebook and read blogs of people with: • Authentic voices • Sincere posts • Meaningful content

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INFLUENCE TRACKS TO INTIMACY Most influential on purchasing a new brand of food or beverage A close friend recommended it online

36%

A friend other than a close friend recommended it

30%

It got high ratings from lots of people like me including people I am on a social network with

20%

It got high ratings from lots of people like me online, but nobody I know

17%

A food writer or commentator recommended it

14%

A food manufacturer that makes things that I like recommended it

13%

A food retailer that sells things that I like recommended it No one I know recommended it, but trying it would give me a great story to share None of these

11% 7% 19%

F18a. Which of these would be likely to lead you to consider purchasing a new brand of food or beverage you haven't tried before in the following situations? n=1,641 ÂŠ 2012 MSLGROUP

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WHAT IS REAL? Real is Relevant (quality) • Exceptional product that delivers on its promise consistent with company’s mission

Has a Face (narrative) • Distinct personality or actual person(s) with a coherent message

Has Friends (opinions) • Other real people, like you, talk for you and recommend you

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WHAT IS REAL? Real Shares (knowledge) • Offers information, humor, beauty, soulfulness and generosity

Is Like-able (shared values) • Reflects shared values, interests, health concerns and aspirations

Reveals Itself (transparency) • Stories of struggles, mishaps and revelations show character and demonstrate integrity

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DEALS & THE REAL DEAL • Transactional relationships promote trial and re-trial • Personal relationships are more durable and valuable Strictly Transactional (lowest price  substitutable)

“Like” in order to receive coupons and deals

Personal Relationship An effective social media strategy

(real people  loyalty)

“Like” & “Friend” to build real relationships with real people

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TRANSACTIONAL RELATIONSHIPS Benefits of coupons & deals • Consumers want to save money • Easy way for people to take notice • Opportunity for low-risk sampling • Stimulates trial and re-trial • Engenders appreciation and curiosity

Drawbacks • Savings don’t necessarily equal loyalty • Deals hold more appeal than product • No guarantee people will pay full price later • Creates fickle and conditional consumers

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PERSONAL RELATIONSHIPS Benefits of building real relationships • Builds a personal and emotional relationship with your brand • Brand becomes a marker of identity and selfexpression, which translates into real loyalty

Drawbacks • Needs a Real Person or People to be the face of the brand • Can’t control the conversation

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OPPORTUNITIES Stay relevant by listening to what consumers want and giving it to them Use an engaging and consistent voice and tone Engender trust and credibility with reviews Enrich consumers lives and give them value beyond product and savings Aspire to be a likeable brand that’s a talisman of identity and aspiration – but don’t kid yourself Use personal stories to help establish intimacy and trust with consumers

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INDEX An architecture Consumers Influence Social media is welcome accorded is aofFOOD influence two Has emerged things TO discovery “Real from People” medium companies: Deals and recipes Transforming food culture An antidote to isolation “Someone like me” An architecture of influence The dominant source of food info Food discovery The path to and from purchase Influence and “real people”

DEALS AND RECIPES

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ARE BRANDS WINNING FRIENDS ONLINE?

52%

Of Facebook users “like” a food or beverage company or brand to get discounts or coupons

• If a deal is really good, consumers will use social media to share it • Consumers want to maximum value with minimal marketing clutter • They will quickly sever relationships that fail to deliver

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PEOPLE HAVE “FRIENDS” WHO

# FRIENDS

WHO ARE THE FRIENDS?

PURPOSE

Most consumers

200-300

• Friends & family • Acquaintances

• Intimacy • Keeping current

Individual Brands/Bloggers

1000+

• • • •

• • • • •

Friends & family Acquaintances Loyal followers Fans

Intimacy Keeping current Brand building Relevance Shared Values

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BUSINESSES HAVE “LIKES” What

# Likes

Who are the likes?

Purpose & Meaning

Big Brand Person

Mark Bittman 36,016

• Home cooks • Food involved fans

• Knowledge • Shared Values

What

# Likes

Who are the likes?

Purpose & Meaning

Small/Local Brand

Molly Moon 5,376 Blue Bottle Coffee 11,045

• Customers • Supporters

• Updates on flavors/products • Shared Values • Personally identity

What

# Likes

Who are the likes?

Purpose & Meaning

Retailer

Starbucks 26,589,185 Whole Foods 767,000 Target 7,933,025

• Customers

• Recipes and tips • Store events and savings • Consumers share experiences

What

# Likes

Who are the likes?

Purpose & Meaning

CPG Brand

Cheerios 589,422 Heinz Ketchup 890,000 Coca Cola 36,6000,000

• Consumers

• Coupons and saving • Recipes

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OPPORTUNITIES FOR BRANDS Satisfy and feed the giveaway beast but engage consumers while inducing them Occasionally offer extraordinary deals that are highly sharable Balance deals with recipes – the latter is a more intimate basis for a relationship Find ways to emulate small and local brands • Origin stories • Internal champions and experts with a face and a voice

Don’t act like an FSI in social circles!

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CONTACTS Steve Bryant Director, Food and Beverage MSLGROUP Americas Steve.Bryant@mslgroup.com 206.313.1588

Blaine Becker Senior Director, Marketing & Business Relations, the Hartman Group blaine@hartman-group.com 425.452.0818 ex. 124

ÂŠ 2012 MSLGROUP

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