2018 Category Management Are Trends in ... - catman.global · 2018 Category Management & Shopper...

2018Category Management & Shopper Insights Conference

Are Trends in Natural/Organic

a Threat or Opportunity?

3

© 2018 The Movitz Group LLC. All Rights Reserved. www.movitzgroup.com2018 Category Management & Shopper Insights Annual Conference, May 2018

Where Are We?

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Where are We?

Major Movements And Change Are Upon Us

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Where are We?

✓Technology✓Consumer Attitudes✓Socio-economic Shifts✓Globalization Of Cultures✓Institutional Authority Crisis✓Science✓Regulatory✓Economy✓Health Care✓Environment/Climate Change

Technology Sub-Forces

❑ Ubiquity of Devices❑ Mobile Commerce❑ Personalization❑ Artificial intelligence❑ Augmented Reality❑ Virtual Reality❑ Machine learning❑ Voice Search❑ Internet of Things

Society Macro Forces Affecting Change:

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Where are We?

Fast Moving Consumer Goods Forces of Change

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Where are We?

Legacy Path to Market Playbook is a Relic

Old:(Linear)

Natural product example

No Such Thing As Channel Anymore

Now:(Non-linear)

Natural Supermarkets

Specialty Supermarkets

Conventional Supermarkets

Large Scale Retailers

Food Trucks

HospitalityFast

Casual

Brand’s Own

Web Site

Specialty RetailWarehouse

E-Comm Pure Play (Amazon,

Jet, Chewy)

Traditional Brick &

Mortar

Concession

/ Kiosk

Meal KitsMicro Markets

Corporate Campuses

UberCoworking

Space

10


Where are We?

Legacy Path to Purchase is a Fond Memory

Old: (Linear)

Now: (Non-discreet)

Stages of CPG Shopper Influence Were Linear

Awareness Consideration PurchaseRepeat

(Retention)Advocacy

Consideration PurchaseRepeat

(Retention)Advocacy

Media is not discreet and controlled. The consumer is

increasingly creating the content and

controlling the media

Awareness Influence

Social MediaBlogs

YouTube ChannelsDigital Ads (Cookies)Suggested Options

TV/Print?

Social MediaBlogs

PodcastsProduct Ratings

Peers

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Where are We?

Traditional Food & Beverages are Barely Growing. Natural/Organic is Thriving

$ M

illio

ns

$ %

Ch

g vs YA

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How Did We Get Here?

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A Confluence of Factors Outside our Industry…

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…Along with Factors from within our Industry

✓ Scale for Efficiency Sake

✓ CPG Marketing: Pushing TO the Consumer

✓ Wall Street, Shareholder and Short Term Focus

✓ CPG Small R&D Budgets (vs Tech)

✓ Incremental “Innovation”

✓ “Fringe Hippie” Movement of Organics Goes Mainstream

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What Matters Now?

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What Matters Now?

Consumers seek…

✓ Transparent✓ Authentic✓ Trustworthy✓ Accountable✓ Purpose Driven✓ Mindful✓ Socially Conscious✓ Sustainable✓ Prevent Waste✓ Empowering✓ Aligned to their Lifestyle

Companies That Are: = TRUST

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What Matters Now?

Consumers seek…

Products That Are:

✓ Non-GMO

✓ Fresh

✓ Less Processed

✓ Organic

✓ Local

✓ Plant Based

✓ Nutrient Dense

✓ Superfoods

✓ Gluten/Allergen Free

✓ Clean & Simple Ingredients

✓ Hormone Free

✓ Pastured

✓ Grass-fed

✓ Humane Animal Care

✓ Eco-friendly Packaging

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What Matters Now?

Consumers seek…

Shopping That Is:

✓ Convenient/Easy/Fast/Frictionless

✓ Experiential

✓ Consistent (Omnichannel)

✓ Assortment Appropriate (Curated, Deep, Narrow)

✓ Fast & Free Delivery or Easy Pick Up

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What Matters Now?

Clean Label, Human Grade Pet Food

‘An Orchard in Every Bottle’ Fruit Tonic Upcycling Brewery Spent Grains

Refrigerated Fresh Baby Food

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What Are We Doing About It?

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CPG is Investing and Acquiring

In 2017, 905 M&A and Financing TransactionsIn The Nutrition & Wellness Industry

+27% vs 2016 +29% CAGR 2013-2017

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Experimentation with Delivery and Pick Up

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Meal Kit Mania = This Decade’s HMR

$35mm Investment Albertson’s buys Plated

+ 15 more

HelloFresh buys Green Chef

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Portfolios Are Being Modernized

Broader Health Benefits

Modern Food Attributes

Reddi Whip Extending into Non-Dairy

Cleaning Up Microwave Popcorn

Updating the TV Dinner

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Making Philanthropy & Social Mission More Front & Center

Social Business

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Newer Brands are Launching Online

More Than 50% Of New Brands Launched In The Last 3 Years Have Launched On Line – And The Rate Is Increasing.

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What Should We Doing About It?

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Ten Recommendations For a Path Forward

1. Change Your Lens & Reframe Your World2. Reinvent Your Organization And Culture (Relevance)3. Become a B-Corp4. Upgrade Your Supply Chain – Get Certified5. Unscale & Share Your Assets6. Create a Mission-based Platform7. Develop True Innovation8. Offer An Experience In A Physical Setting9. Be Empathetic - Walk A Mile In Your Stakeholder’s Shoes10. Embrace Nuance & Be True To Your Self

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Change Your Lens & Reframe Your World

If you only want yellow blocks, is this green block good or bad?

If your base is Group A, should Group C now be the focus?

+4 pts

67%

23%

10%

Group A Group B Group C

-1 pt

-3 pts

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Reinvent Your Organization And Culture

“We Cannot Solve Our Problems With The Same Thinking We Used When We Created Them.”

Albert Einstein

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Become a B-Corp

“Without a sense of purpose, no company, either public or private, can achieve its full potential. It will ultimately lose the license to operate

from key stakeholders.” Larry Fink, Founder, Chairman & CEO of BlackRock, Inc.

$1.7T in funds managed

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Upgrade Your Supply Chain – Get Certified

Whether you reach these benchmarks or not, the most responsible brands will have an open dialogue with consumers and retailers every step of the way. By outlining where there’s work to be done, and setting goals to meet expectations in the future, companies can cultivate trust.

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Unscale & Share Your Assets

“Artificial Intelligence Is This Century’s Electricity —The Technology That Will Power Everything.”

Source: MIT Sloan Management Review

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Create A Mission-Based Platform

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Take Risks - Develop True Innovation

New Form for Use Case = innovation (lower case ‘i’)

Combination ≠Innovation

Create New Categories = True Innovation

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Offer An Experience In A Physical Setting

The Spotted Cheetah (NYC)

WFM (Bridgewater, NJ)

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Be Empathetic –Walk A Mile In Your Stakeholder’s Shoes

✓ Retailer perspective: Who is the shopper in my store and what is their purchase behavior?

✓ Vendor perspective: Who is my shopper? Who is my competitor’s shopper and where are the opportunities?

✓ Human perspective: How am I like my shopper? How am I different? Who do I know like this shopper? How do I relate to them? How can I be of service to them?

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Embrace Uncertainty, Nuance & Be True To Your Self

• Keep Asking, “Why Does That Matter?”

•Authenticity: Your Inner Truth, Without Judgment Of Yourself, Or Fear Of Being Judged

•Ask, “How Can I Serve”?

• Be In A State Of Gratitude

• Focus On Your Strengths

• Start Where You Are

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The longer tail of a better food system……

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Thank You

Michael [email protected]

The Movitz Group LLCLincolnshire, IL(847) 461-3235

www.MovitzGroup.com

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