Own Brands: Driving Empathy and Loyalty

+Path To Purchase Expo October 23, 2014

Own BrandsCreating Shopper Empathy and Loyalty

Carol Mazza, VP Director of Advertising & Brand, Bi-Lo Holdings

Jim Lucas, EVP Director of Strategy & Insights, Anthem

1Thursday, October 23, 14

©2014 Matthews International, Inc. All Rights Reserved+ 2

Own Brand products

launched in the U.S.,

of all products

launched that year.

9,635 29%making up

In 2013...

Image Credit: shutterstock.com


©2014 Matthews International, Inc. All Rights Reserved+

Own Brands Innovation

3



Own Brands Closely Aligned with Shoppers

4

Shoppers play an increasing role as brand owners and co-creators



“Empathy begins with

understanding

how another person

thinks and feels…”

5

—Simon Baron-Cohen

Empathy Part I: Understanding

Image credit: Shutterstock.com



Empathy...

6

Image credit: Endlessorigami.com



Empathy...

6

...gone horribly wrong.

Image credit: Endlessorigami.com



“…but the second, most important part

is demonstrating empathy by

responding appropriately.”

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—Simon Baron-Cohen

Empathy Part II: Responding




One of the advantages

retailers have is the

regular

contact

with shoppers.

One learns a lot from this

intimacy...

8

Empathy & the Retail Environment



9©2014 Matthews International, Inc. All Rights Reserved+

Chek Soda and the Family Shopper

Rethinking Own Brand Soft Drinks:



The Family ShopperShe is resource-constrained, but she has already embraced the situation—moving from survival to thrival mode.

Sources: Mintel, Private Label Beverages, September 2012; Mintel: The Budget Shopper, June 2012; Big Insights survey, Client data



She gains emotional refreshment through

connections with others.

Source: Big Insights survey, Client data Image credit: Thinkstock.com

What’s Important: Togetherness

She strives to create opportunities for fun and togetherness

• Socializing with friends & neighbors • Family activities • Cooking • Summer holidays, BBQs, Picnics



Working thru Recession-Fatigue to Possibilities:

Focus on the present.

Get the most out of every day.

Source: Big Insights survey, Client data 12


©2014 Matthews International, Inc. All Rights Reserved

So while we could have focused on price or stretching your budget

(accentuating the negative), we found that Family Shoppers were

much more responsive to “possibilities.”

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Shopper-Brand Relationship

14

Desire to Overcome

Focus on What Matters

Recession Fatigue.

Family shoppers have

employed, and continue to

employ, budget strategies

(5.22 on average), but want

to move from “need to

do’s” to “want to do’s.”

Strategy

Family shoppers are looking

to maximize social

entertainment, emotional

refreshment (time with family,

friends, neighbors)

Creative Platform

Chek opens up new

possibilities



Elevating the Everyday

15



Pinterest Chek Pairings

17



Recipes

18



Social / Digital

19



In-store

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Results

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Favorite Chek Flavors, per Facebook

0

200

400

600

800

1,000

1,200

Orange Pineapple Grape Fruit Punch Lemon Lime

1,068

959

701

432



Results

22



Results

22

48%

25%

15%

48%

Chek Year 1

Dollar sales v. YA

Unit sales v. YA

Penetration Repeat



Kuddles Baby Care

23

A Private Label Trusted by Moms:



Kuddles Brand Launch

May, 2014

• Re-launch of brand at Winn-Dixie• Launch of brand at BI-LO and Harveys

24



The Kuddles Mom is a loving mom living on a budget. She puts her family first.

She defines her life—her economic circumstances do not define her.

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A tight budget is no match for her dedication to caring for her family.

She embraces the challenge to stretch her dollars to meet their needs.

Her Passion: Her Family

26Source: Big Insights survey, Client data



Time put toward providing takes away from quality time with her family.

Tension:

Sources: SymphonyIRI Group’s 2012 Times & Trends report “Channel Migration: Charting a Course on the Voyage for Value”; BabyCenter, “Shopping Rituals of the American Mom,” 2011; http://www.statisticbrain.com/wal-mart-company-statistics/

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Being a Mom means being constantly interruptable, ever

responsive, and always responsible

Channels shopped for deals

Distance (miles) from average person’s home to a Walmart

Sources of information when researching purchases

5

15

6


http://www.statisticbrain.com/wal-mart-company-statistics/

http://www.statisticbrain.com/wal-mart-company-statistics/


A Major Hurdle to Adoption has been Concerns over Quality

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Diapers Baby Care, WipesBaby Food, Snacks,

Formula

Ultra absorbent Moisturizing/Hydrating Price

Age-specific Suitable for Sensitive skin All-natural

Snug fit Recommended by experts Low/no sugar

Known brand

Key Attributes Sought by Category

Sources: Mintel, Disposable Baby Products, 2013; Mintel Baby Food and Drinks, 2013.



Hierarchy of Sustainability Needs

29

The top levels are the

most personal and

protected—a position

that requires emotional

permission for

shoppers.

In Me

On Me

Around Me

Away From Me

Concerned about the food and beverages we consume and the medicines and remedies we take

Concerned about harsh chemicals and additives in personal care products

Concerned about the chemicals in household products

Concerned about protecting the broader environment; endangered species



Shopper-Brand Relationship

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Platform framework

Insight

WOW Stat:

Motherhood adds 8 hours of

new duties to a typical day

Strategy

The effort she puts toward

providing keeps her from

spending time on what

matters most to her.

Creative Platform

Kuddles makes it

easier to be the mom you want to be



An Empathetic Approach to Marketing

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Winn-Dixie Landing Page

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In-Store Display

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Reaching out to Shoppers

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Post Copy

Facebook Gift Card Giveaway

To generate excitement and awareness for the launch/relaunch of Kuddles, we recommend a

social media contest that will help spark conversation around Kuddles products.

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How do you make happy happen? Share your best piece of advice on being a mom with our

community for a chance to win a $200 gift card! Include a photo of how you make happy

happen and double your chances to win! Just use the hashtag #KuddlesKids

What We’ll Need

• Social platforms: Facebook, Pinterest & Twitter

• Prizes: $200 gift card

• Timeframe: Week 19 - 22



How Does a Twitter Party Work?

Twitter Party

A Twitter Party is a fast and fun virtual party using the Twitter platform. Usually held in the

evening, Twitter parties typically last 1-2 hours and are a way for people to connect and

discuss a topic of choice. Most Twitter Parties have an expert panelist and party host to

keep the party on topic.

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Twitter users tweet with a specified hashtag (#) for the party. The party host will announce the

hashtag prior to the event. If you look at the Twitter Party calendar, parties are listed by hashtag.

Users use their Tweet chat client to search for the hashtag conversation. TweetDeck and

TweetGrid make following a Twitter Party much easier.



Pinterest boards will include contest entries and elements from the landing pages.

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Sample Pinterest Board:



Kuddles Results

• Penetration of Kuddles line was

up at both Winn-Dixie and Bi-Lo

Banners versus YAGO

• Repeat rates suggest shoppers

feel Kuddles has delivered on

improved quality.

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104

124

Kuddles Line Penetration

Penetration vs. YA



Empathy is a powerful tool for engaging shoppers and serves as a foundation

for establishing a relationship between the shopper and the brand.

But to be successful, empathy must deliver both parts of its equation:

• Understanding shoppers’ thoughts and feelings (insights) and

• Responding appropriately to those thoughts and feelings (execution)

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In Summary...



+

Path To Purchase Expo October 23, 2014

Thank you.Carol Mazza and Jim [email protected]


mailto:[email protected]

mailto:[email protected]

Own Brands: Driving Empathy and Loyalty

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