Resetting Expectations - Store Conference · Resetting Expectations Gen Z is Setting New Trends. 2...
Transcript of Resetting Expectations - Store Conference · Resetting Expectations Gen Z is Setting New Trends. 2...
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Resetting ExpectationsGen Z is Setting New Trends
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Agenda
Gen Z
Canadian Opinion Research
Certification
Questions
Founded in 2009, Nourish is Canada’s only full service marketing agency
only working with clients from the agricultural, food and beverage sectors
Nourish is founded
JAN 2009
First National food
client names
Nourish AoR
March 2009
Montreal office is
opened
June 2014
Addition of a
multicultural
division. Guelph
office added
Sept 2015
Publication of the
third Nourish Food
Trend Report
Jan 2019
10+ years of food competency
Nourish History
©2018 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.3
Our Vision Our Mission
We don’t know much about marketing for real estate. Or for cars, detergents, or life insurance. We leave that to
the generalist ad agencies out there. But helping our clients sell more food, that’s something we know an awful
lot about.
We create
meaning and
value across the
food ecosystem.
We do this by
having a deep
understanding of
food and the role
it plays in society.
Nourish Vision and Mission
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Agenda
Gen Z
Canadian Opinion Research
Certification
Questions
Who are they and why do they matter?
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Generations not only shape history, but are also
shaped by it
● Not just younger versions of Millennials once
lifestage differences are teased out
● Need to understand how different from previous
generations in order to successfully engage
● Brands need to start building loyalty now as their
buying power builds
● Even youngest are already influencing parents
and grandparents buying decisions
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Who are they and why do they matter?
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Ages 4-24 “ish”
● Approximately 9M in Canada
● Globally Gen Z comprises 25% of current
population, making cohort bigger than boomers
or millennials. Will rise to 33% in next few years.
● Lower in Canada due to immigration patterns
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Population by generation
Who are they and why do they matter?
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Mostly have Gen X parents
● Gen X pragmatic, middle child
● How can you influence Gen Z as they develop
brand loyalties?
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Diverse
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● Culturally - First “majority minority” generation in
history
● Values
● Beliefs
● Education
● Equality - not colour or sex, but human
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Historical Context
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● First true digital natives
● Expect customization as well as diversity
● Visual communicators
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Historical Context
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● 24-hour news cycle
● Conservative with progressive social values
● “Old souls in a young body”
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Overall Behaviour
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● One constant is each gen needs to be different
than parents
● Distancing selves from boozy parents with lower
alcohol consumption
● More aware of financial challenges ahead, BUT
● More exposed to luxury goods at earlier age due
to social media
● Substance over surface. Will pay for something
that has meaning to them.
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Engaged
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Aware and optimistic about their ability to make
change
● Hot buttons - animal welfare, plastic pollution
● Radical transparency - where from, how made,
how workers and animals treated - want proof.
Clear label.
● “Show” v “tell”. Blockchain.
● Attracted to purpose driven brands that stand for
something e.g. A&W
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Hardwired, but Visual
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Phones are their connection to the world
● Mobile optimized?
● “Show” rather than “tell” or “write”. Visual
communicators.
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In the Kitchen
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● More educated about nutrition and healthy eating
even if not a focus yet
● Youtube is their greatest teacher - mobile first
● More comfortable in kitchen, often preparing and
eating meals on own
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In the Kitchen
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● May be first generation where cooking is non
gendered task
● Already equal participation in kitchen
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Eating Behaviour
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● Whatever, whenever
● Don’t plan meals in advance - mobile push alerts
to take advantage of spontaneity
● Snacking trend will continue to increase
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Eating Behaviour
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● Portability and flavour a given
● Also expect functionality
● Expect increase in healthy snack categories
● Attracted to natural, whole foods over processed
● Protein a hot button
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“Next Overs”
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● Loving their leftovers again
● Know how to read labels, but fun & flavour first
● BUT want to know provenance, story behind
food.
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Shopping Behaviour
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● With rising female education rates + equal pay
may mean this continues into next life stage.
● Implications for male shopping participation as
well
● Grew up with high quality store brands and
believe they are just as good, if not superior to
name brands
● Hot buttons - save time
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“Made Matters” - better for me, better for the world
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● What’s in my food?
● Where did my food come from?
● How was it farmed?
● Were the animals and people treated fairly?
● Was the planet taken care of?
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Consumers expect retailers to respond
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● And shoppers reward stores that do
● 70% of US retailers have seen sales increase
over past three years
● 75% of consumers are studying labels related to
animal welfare more than they were just five
years earlier
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Agenda
Gen Z
Canadian Opinion Research
Certification
Questions
Trust rankings
● Farmers are trusted by Canadian consumers
HOWEVER
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Who do Canadians trust?
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Food System Concerns
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● Latest CCFI 2018 Public Trust Research show
dangerous disconnect between consumer
perception and reality of food system.
● 54% of consumers concerned about food safety
● 49% of consumers concerned about humane
treatment of farm animals, up from 40% in 2017
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Food System Concerns
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Overall impression of agriculture in Canada has
significantly decreased after steady increases
since 2006
● Third-party audited certification will help food
system earn back trust
● Can’t assume or take public trust and goodwill
for granted
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Food System Concerns
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Over half of Canadians are unsure about humane
treatment of animals
● Highlights a need for greater transparency and
increased communication with consumers
● Show v. tell
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Radical Transparency Builds Trust
● QR code on pack allows you to see the field
where the potatoes in bag of chips/crisps came
from
● Keoghs.ie
● Invite them in - less than 10% of Canadians have
ever set foot on a farm!
● 75% of shoppers more likely to switch to brand
that provides more product information
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Show versus Tell
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VQA Program
● Designates authentically local wine
● Built consumer trust in an industry previously
known for inferior wines
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Show versus Tell
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©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Local is important with consumers
And is a very “elastic” and elusive term
● Ranks higher than other claims like organic,
natural, fair trade, free range
● Driven by perceptions around freshness,
healthier, as well as supporting community
● No consistent definition. To consumers elasticity
stops at US border, but can stretch to include
city, region, province, or country
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©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Local matters
Why growing?
● Speaks to consumer’s desire for food with
integrity
● Greater transparency & trust
● Seen as tasting better, more nutritious
● Support community
● Equals higher quality in consumer’s mind
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©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Don’t assume
Little Potato Company
● Potatoes are gluten free!
● Need to call it out
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©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
Don’t assume
A&W
● Hormone-free
● Raised without antibiotics
● Getting credit for things farmers are already
doing
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©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
And again, don’t assume
New Brunswick
● Research found that majority of consumers didn’t
know dairy products are almost all “local”
● Need to call it out, especially now that recent
trade deals have opened market to non Canadian
milk
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Agenda
Gen Z
Canadian Opinion Research
Certification
Questions
Certification Matters
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● In era of “fake news” seeking out more credible
information and authentic communication
● Need to get credit with consumers for good
practices by educating at retail
● Show rather than tell where possible
● Third party verification
● Packaging is integral to communicating practices
and product information to consumer
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On Pack Certification Matters
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Shoppers becoming overwhelmed at shelf level
with amount of choice
● Average shopper takes seconds making a brand
decision
● Most shopper grocery lists have commodities
rather than brands listed so point of purchase
becoming critical battleground
● We have become a visual society, esp. Gen Z
● On pack certification makes it easier for shopper
to make a choice
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Certification Matters
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● New certification will showcase and celebrate
existing strict animal welfare and food safety
standards that have been in place for decades
● Standards are third party audited
● Also allows at a glance identification of Canadian
eggs
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Research Supports Importance
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● 92% of Canadians felt it was important that their eggs
come from Canadian farms
● 94% of Canadians believe that egg cartons should bear
national certification symbol
● 89% of Canadians believe a visible certification symbol
on Canadian egg cartons would reassure them that eggs
meet national standards
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EQA
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● Will be licensed free to display on all private label
egg cartons, egg product packaging, menu
boards, in-store POP material
● 74% of shopper’s say they would switch from
usual brand to another brand that provides more
in-depth product information
● Could lose a sale if beside a branded egg carton
with symbol
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Eggs - hit all the buttons
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Local and available year round
● High source of protein, easy to prepare
● Portable, snackable
● Healthy, whole, real food
● How meet transparency needs of this Gen? EQA
program can help!
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Next Steps
©2019 Nourish Food Marketing. Proprietary and Confidential. All Rights Reserved.
● Website eggquality.ca
● Questions?
○ Email [email protected]
○ EQA spokespeople on hand at EQA cart
during break
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Agenda
Gen Z
Canadian Opinion Research
Certification
Questions