JANUARY 2016MARKET INSIGHTS

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ANALYTICS

INCREASING E-COMMERCE Conversions & Sales

IMPROVING OUTCOMESThe challenges associated with improving online conversions and sales include validating sales assumptions quickly enough to continue to engage site visitors, while ensuring that relevant knowledge is available to everyone who needs it. Emerging predictive analytics technology may help solve these challenges, allowing businesses to customize shopping experiences for each visitor via social profile queries and/or online navigation history.1

Research conducted by San Francisco–based Salesforce.com showed that 57 percent of high-performance sales teams rely heavily on predictive analytics, a stark contrast to the 16 percent of lower

performing teams that do the same. High-performing teams are, on average, three to five times more likely to access sales analytics data daily for prospecting and selling. Not surprisingly, Salesforce research predicts a 58 percent increase in use of predictive sales analytics in 2016, with high-performing teams expected to increase usage by 77 percent in the next twelve to eighteen months.2

CUSTOMIZING CONVERSIONSingapore-based PlusMargin is a B2B startup whose platform helps clients increase website conversions and overall sales revenue. One line of code, embedded within an e-commerce site, gathers data about where prospects are clicking and time spent per page. Advanced predictive algorithms then determine how likely a customer is to buy and then tailors offers and incentives accordingly.3 The company states that its competitors’ products are more rule-based and A/B testing-focused, whereas PlusMargin is fueled by automated predictive personalization. To date, PlusMargin has beta tested its product with ten companies.4

Offline, a good salesperson can quickly determine where a prospect is in the

buying cycle. Online, though, prospects often receive sales information based

on the results of a Google search—a far cry from an optimal conversion path.

VisitorsGoalsLeadsSalesA

ttract

Engage

Convert

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FOODSERVICE

TRENDY New Tastes

SRIRACHA’S LASTING EFFECTPopular consumer perspectives that Sriracha sauce can add instant “ethnic cachet” to familiar favorites has expert chefs investigating other bold flavorings, including ghost peppers from India; sambal from Southeast Asia; gochujang from Korea; and harissa, sumac, and dukkah from North Africa. New York City’s newly reopened Dirt Candy recently debuted its Korean fried broccoli coated in gochujang, described by the chef as “huge garlicky, spicy, and fermented.”

At 610 Magnolia and MilkWood in Louisville, Kentucky, chefs use gochujang butter blended with honey, fish sauce, and soy sauce over grilled steaks. The Umami Burger restaurant chain glazes its K-BBQ burger with “a reduction of gochujang and Sierra Mist, then topped with both caramelized and fresh kimchi, and homemade gochujang ketchup.”6

MIXING IT UPMixologists are taking creative approaches to soft drinks used in their cocktails, often producing them in-house. San Diego’s Polite Provisions is “reverse-engineering” sodas, spiking them to create custom cocktails. Seasonal flavors in rotation include maple, tiki-spiced, cinnamon, pineapple, blueberry-lavender, and pomegranate. At Remedy in Dallas, Texas, the beverage director creates the syrups for its house-made sodas with flavors including cashew-orange orgeat and raspberry-pomegranate. One of Remedy’s top-selling drinks, Rx Painkiller, consists of house-made banana-pineapple soda, with Mount Gay Eclipse rum, Bacardi rum, orange juice, and coconut flakes. Founding Fathers in Washington, DC, brings custom mixology to a more personal level, allowing customers to create their own spiked sodas using base flavors such as ginger, hibiscus, cranberry spice, and blackberry-thyme.7

Food research and consulting firm Technomic recently released its

2016 report, listing several trends that may “prove transformational”

this year.5 From bold and spicy ethnic flavorings to complex

mixology profiles, the U.S. restaurant scene seems to be continuing

the exotic evolution that it started just last year.

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PACKAGING

SINGLE SERVE’S Growing Appeal

UNDERLYING DRIVERSThe single-serve trend makes sense in the United States, where nearly half of adults ages eighteen and up do not live with a spouse. Households are also getting smaller. In 2013, census figures showed that one- and two-person households made up 27 percent of the population in 2012, a strong increase when compared to 17 percent of the population in 1979. As more households demand smaller-portioned meals for only one or two people, the shift in packaging preferences is logical.9

The steady increase in cost of goods may also play a factor in the long-term staying power of this trend. For example, according to Beverage Industry research analysts, the rise in single-serve iced coffees is driven by the fact that single-serve packaging helps offset the growing cost of coffee beans.10 GASTROMIC TOUCHES

Planglow USA has created upscale and sustainability packaging for the foodservice industry to add gourmet touches to its to-go packages. Made from compostable and biodegradable materials, the collection of wedge, wrap pack, pastry bags, and salad boxes feature the look of chalk on slate for an upscale gastro pub look. French manufacturer Lucien Gerogelin recently partnered with RPC Bebo Bouxwiller to offer fruit

Convenience continues to be a key driver of the trend toward

refrigerated meals, with single-serve packaging emerging as a hot item for

busy, on-the-go consumers. However, the desire for portioned, portable,

packaged food for an individual is just the beginning; consumers now expect

their single-serve packages to follow all the other major trends such as

sustainability, an upscale look, high-quality ingredients, and on-trend flavors.8

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PACKAGING

compotes and desserts in transparent to-go snack packs that include spoons to allow consumers to eat the products wherever they are.11

TASTY TIDBITS

With the introduction of its Skippy Singles and Skippy P.B. Bites this past year, Hormel Foods’ Skippy Peanut Butter has delivered on its objective to think “outside the jar” with single-serve on-the-go formats. Hormel’s goals for the new package formats included providing portability, category differentiation and standout, and the ability to see the product inside, cueing a unique Skippy experience for consumers. Berry Plastics’ Blue Clover Studios was charged with creating the packaging structure, and Smith Design led the design of the packaging graphics.

The Singles packaging consists of six 1.5-ounce portioned dipping cups, housed in a 9-ounce plastic container. Berry Plastics designed a clear, cylindrical polypropylene container conducive to in-mold labeling with a rigid plastic cup for structural integrity. A re-

sealable plastic lid secures the cups, and the size is designed to easily fit a user’s hand for effective dispensing. Illustrations include an apple slice and celery stick to reinforce dipping them in peanut butter as part of healthy snacking. A see-through panel on the side helps reveal the stacked, single-serve cups housed inside.

Skippy P.B. Bites packaging is a six-ounce clear cup of pop-able “bites” suited for snacking. The cylindrical package has a wider diameter and rounded bottom. Clear lidding film is beneath an overcap, and the snacks are loose within the packaging. The double peanut butter SKU shows the illustration of a peanut and peanut butter, with a cross-section of a bite. The pretzel SKU features a pretzel surrounded by creamy peanut butter and a bite cross-section.12

SINGLES STRATEGY

When freeze-dried fruit snacks company Crunchies was bought out by Chaucer Foods in 2014, the new owner decided to re-launch the entire brand while capitalizing on the single-serve trend. The brand’s overhaul

includes an all-new logo, product packaging, website and marketing campaign. Freeze-dried in the U.S. and Europe with fruits sourced from around the world, all Crunchies products also include traceability features for consumers’ quality assurance. Available in both single-serve snack packs and larger grab-n-go resealable pouches, Crunchies do not have any added sugar or artificial flavors or coloring, and they are non-GMO, gluten-free, vegan, kosher, and halal certified.13

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MARKETING

NEW TAKES on Virtual Reality

STANDOUT STORYTELLINGThe New York Times Magazine, in collaboration with Google, released what has been called the “first critical, serious piece of journalism using virtual reality, to shed light on one of the most dire humanitarian crises of our lifetime.” The eleven-minute film “The Displaced” shares the disrupted lives of three children from war-torn countries now living as refugees in other nations. In one scene, viewers ride along with Syrian-born Hana, age twelve, in the back of a truck. In another, viewers are in an open field as humanitarian aid packages drop and women rush to collect them.

Newspaper executives believe that this is much more than a technological advance. Instead, it has huge potential to bring news and stories from the most inaccessible places, worldwide, presenting them in a way that creates an empathetic connection among people around the world.15

EMOTIONAL CONNECTIONSOne company creating emotional immersive experiences for customers through VR is outdoor

retailer The North Face. The video, Oculus Rift: The North Face: Climb, was created by production house Jaunt and shows mountain climbers leaping off of a cliff in Moab, Utah, with viewers seeing sheer rock before jumpers open their parachutes.16 Customers who visit The North Face retail stores can also watch a VR viewing of Yosemite National Park plus Utah’s Moab desert, where they “trek the landscapes and rock climb.”17 The film was shot using Jaunt’s proprietary 360-degree, stereoscopic 3D cameras, and advanced 3D sound-field microphones.

Virtual Reality (VR) can be highly effective in creating empathy, as

viewers experience what they’re watching more directly. Research has

shown that viewers’ brains can even perceive another person seen via VR as

an “actual living, breathing human being . . . it feels real.”14 Practical application

of this unique consumer experience is increasing its reach across industries,

from impactful journalism to brand-building buzz.

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RECYCLING

PAVING THE WAY for Plastic Re-Use

BHUTAN’S BREAKTHROUGHBhutan has only recently struggled with landfill problems due to plastic waste. Without the technology in place to recycle it, the Bhutanese government began selling plastic waste to India as scrap. Engineer Rikesh Gurung saw an opportunity, spearheading a private-public investment called the Green Road project to address the challenge head (or perhaps, feet) first.19

The country’s first plastics recycling plant was then created, with plans to mix post-consumer PET bottles with other waste plastic and bitumen (a petroleum product needed for laying the roads) to create a blacktop surface that will pave new roads. Approximately 15 percent of the mix will be plastic, but the amount needed for the road project is expected to use all of the plastic waste generated by Bhutan’s population of 780,000. The goal: to reduce the volume of plastic going into landfills by up to 40 percent while reducing the need for bitumen.20 Gurung estimates that a ton of bitumen will be saved for every kilometer of twelve-foot-wide roads built.

RECYCLED ROADBacked by the equivalent of $78,000 US dollars (USD), Bhutan’s Department of Roads is collaborating with

the waste recycling plant and consulting with multiple construction experts, including the Central Road Research Institute in New Delhi. India built more than 5,000 miles of roads using the plastics-waste substance (polymerized bitumen), and reports state that the material is durable, cost effective, and environmentally friendly. A 150-meter test road constructed in October 2015 near the capital of Bhutan received positive feedback. The pilot project used 1,135 pounds of plastics retrieved from a nearby landfill.

Gurung shares that the roads are water resistant, with better binding properties and higher softening points. They can withstand higher temperatures and larger loads, have a lower penetration value, cost less then bitumen, and emit no toxic gas.21 While more than an equivalent $4 million USD is spent each year to maintain Bhutan roads (due to Himalayan altitude, rainfall, and cold winters), roads using recycled PET are not expected to need maintenance for at least five years.

In February 2015, Chemistry World shared an alarming report that as much as

eight million tons of plastic—about 3 percent of plastic waste produced every

year—ends up in oceans, the equivalent of five bags filled with plastic for every

foot of coastline in the world. The report reignited conversations about plastic

waste, including a renewed energy for finding creative solutions.18

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www.havigs.com

Credits1Javed, B. (2015, November 4). How Data Science is Revolutionising E-Commerce, e27. Retrieved from http://e27.co 2Columbus, L. (2015, July 11). High Performing Sales Teams 4x More Likely to Use Predictive Analytics, Forbes. Retrieved from http://www.forbes.com 3Tung, C. (2015, October 22). 8 Startups Graduate from SPH Plug and Play Accelerator Programme, e27. Retrieved from http://e27.co 4Leung, I. (2015, November 13) This Startup Knows What You Are Going to Buy Even Before You Do!, e27. Retrieved from http://e27.co5Technomic.com (2015, October 26). Technomic’s Take: 2016 Food Trends (Press release), Technomic. Retrieved from https://www.technomic.com 6Chaey, C. (2015, March 30). What ‘Chu Know About Gochujang? It’s the Hottest Hot Sauce on the Market, Bon Appetit. Retrieved from http://www.bonappetit.com7Boers, C. (2015, November). Bar Talk: Soft Drinks Go Hard, Market Watch. Retrieved from http://marketwatchmag.com 8Schweitzer, R. (2015, August 6). Single-Serve Packaging Becomes a Lifestyle, Packaging Strategies. Retrieved from http://www.packagingstrategies.com9Schweitzer, R. (2015, August 6). Single-Serve Packaging Becomes a Lifestyle, Packaging Strategies. Retrieved from http://www.packagingstrategies.com 10BevIndustry.com. (2015, July 13). 2015 State of the Beverage Industry: Single-Serving, Iced Coffees Show Growth, Beverage Industry. Retrieved from http://www.bevindustry.com 11Schweitzer, R. (2015, August 6). Single-Serve Packaging Becomes a Lifestyle, Packaging Strategies. Retrieved from http://www.packagingstrategies.com

12Mohan, A. (2015, November 1). Skippy Looks ‘Outside the Jar’ for Packaging Innovation, Packaging World. Retrieved from http://www.packworld.com 13PackagingStrategies.com. (2015, September 28). Crunchies Branding Refresh Debuts at Expo East, Packaging Strategies. Retrieved from http://www.packagingstrategies.com 14NPR.org. (2015, July 10). Getting ‘Physical’ And Emotional In Virtual Reality, National Public Radio. Retrieved from http://www.npr.org 15Somaiya, R. (2015, October 20). The Times Partners With Google on Virtual Reality Project, The New York Times. Retrieved from http://www.nytimes.com16Hof, R. (2015, November 15). Brands Look Far and Wide for a Niche in Virtual Reality, New York Times. Retrieved from http://www.nytimes.com 17Dua, T. (2015, March 12). The North Face Brings Virtual Reality to Retail, Digiday. Retrieved from http://digiday.com 18Walter, P. (2015, February 12). Plastic Waste Entering World’s Oceans Set to Double in 10 Years, Chemistry World. Retrieved from http://www.rsc.org 19Phillips, A. (2015, November 6). This Buddhist Kingdom is Paving Roads with Plastic Waste, Fusion. Retrieved from http://fusion.net 20Linnenkoper, K. (2015, November 13). Plastic Scrap Roads through the Himalayas, Recycling International. Retrieved from http://www.recyclinginternational.com 21KuenselOnline.com. (2015, October 6). First Plastic Waste Road Laid in Thimphu, Kuensel. Retrieved from http://www.kuenselonline.com

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