inspiring consumer loyalty to animal protein · 4. own the highest attribute you can! make that...

©2019 Elanco Animal Health Incorporated

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Inspiring Consumer Loyalty to Animal

Protein

A newcomers perspective

on marketing in the

Animal Protein Industry

The opportunity to maintain proper

segmentation of the brand story

and consumer transparency

communications


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Because every dollar we all earn starts here!

Why should we care about the marketing of animal protein?

Other company and product names are trademarks of their respective owners.


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3

Simon Sinek – Author of “Start with Why”

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SIMON SINEK – AUTHOR OF “START WITH WHY”

WHY

HOW

WHAT

SINEK’S GOLDEN CIRCLE



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Good marketing talks about the buyer. Bad marketing talks about the product.

“People don't buy WHAT you do; they buy WHY you do it.” Simon Sinek, Start with Why: How Great Leaders Inspire Everyone to Take Action

“two ways to influence human behavior: you can manipulate it or you can inspire it.”Simon Sinek, Start with Why: How Great Leaders Inspire Everyone to Take Action

“Henry Ford summed it up best. “If I

had asked people what they wanted,”

he said, “they would have said a faster

horse.”

Simon Sinek

The struggle that so many companies have to differentiate?

putting emotions into words - our purpose, cause, or belief.

Trust & Value


https://www.goodreads.com/work/quotes/7367737

https://www.goodreads.com/work/quotes/7367737


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The way to win Brand Loyalty and a Premium

1. Understand the consumer – Start with Why?

2. Determine the most important attributes or emotional rewards your product can deliver

3. Rank those consumer desired attributes

4. OWN the highest attribute you can! Make that attribute YOU!!

a. Market your brand to uniquely and emotionally connect to that attribute

b. If your competitor already owns #1, then OWN #2

c. Then market #2 hard to make it more important than #1

Only then can you lead the market and expect a premium for your otherwise commodity product.

You cannot tell the consumer what their “Why?” should be, you can only reinforce what it is,

and inspire them to believe only you, are all of that!

Loyalty is a feeling! A human feeling!


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Applying that Thinking

or Not - Cheese!

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Sargento’s Reason Why

“Real

Cheese

People”


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SARGENTO’S REASON WHY



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Kraft’s Reason Why –

“You don’t

need anymore

hormones in

your house”


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KRAFT’S HOW – MADE WITHOUT HORMONES‘You don’t need anymore hormones in your house’



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This type of marketing does not build brand equity with

consumers that can command a premium

Recent News on Kraft Heinz


“Henry Ford summed it up best. “If I had

asked people what they wanted,” he said,

“they would have said a faster horse.” Simon Sinek

“Value is not determined by those who

set the price. Value is determined by those who choose to pay it.”

Simon Sinek

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ANOTHER RECENT EXAMPLE OF

THIS LIGHT BEER

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Bud Light’s Corn Syrup Debacle


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Miller Coors pounds and embarrasses Bud Light


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Worse Yet - Miller Coors pulls out of the effort to promote beer!

Beer is losing share

to Wine and Spirits

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18

Wow! Could this

Happen in Fresh

Chicken?

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19Here’s a clever approach to building brand pizza not just brand Domino’s


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Loyalty is a Feeling!Connecting what you do to the

Consumers Why

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Coca-Cola – Connecting to The Consumer’s Why - 1971



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Own the Consumers Emotional Why!

Don’t let your Critics Define the

Why

Handling Critics is Separate Strategy –Corp PR

Keep your Brand Story on the

Consumer Why


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When Coca-Cola forgot their “why” 1985

They buckled to competitive noise and changed –consumers responded



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So Who has the Best Tasting Coffee – Best Coffee Brand?

75% of

Consumers

Agree!



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Apple Marketing to Why



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Human Labor Rights Activist Challenges for Apple



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OFFERING EVERYONE A BETTER WAY FORWARD

Because we believe that mobility is essential for human development, we are

innovating passionately to make it safer, more efficient and more

environmentally friendly. Our priority and firm commitment is to offer our

customers uncompromising quality

SAFETY PERFORMANCE

Marketing to the “WHY” – Top two tire brands



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Environmental Activist Challenges for Tire IndustryTires are a breeding ground for mosquitoes – an ever alarming issue with the rise of the West

Nile Virus. Tires have potential for tire fires which produce acid smoke harmful to humans and

the environment as well as leaves behind a oily residue. ... Tires in landfills have led to worker

injury and death.



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The Dairy Industry – An Animal Protein Marketing Case Study

Learning from History

The real cost of letting critics shape your brand story

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4

17

36

42

31

69

4

14

27

41

44

70

0 10 20 30 40 50 60 70 80

Brand name

Nutrition/Health Claim

Fat content

Tastes good

Low price

Freshness

% Most Important 2010 vs. 2012 U.S. Fluid Milk Buyers

2012

2010

Source: 2010/12 Nielsen Custom Diary Market Research

Low Price increased +30% in just 2-years to be the 2nd most important attribute for Fluid Milk

Buyers in the Top 14 U.S. Retailers

When consumers walk into the store this is what they

“say” they are looking for:

• 6,500 Fluid Milk Buyers from

the Top 14 U.S. Retailer

independently surveyed by

Nielsen from 2010 to 2012

• As consumers think about

shopping for fluid milk when

asked what is the most important

things to them as they shop the

dairy case: Freshness, Price,

Taste, & Fat Content are the top

perceived attributes

• With rising milk prices and

economic pressures, consumers

are more concerned with price

than ever

Top 2

Confidential


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4

5

9

49

59

40

50

3

5

7

33

40

42

52

0 10 20 30 40 50 60 70

Labeled rbST-free or RBGH free

Labeled organic

Is hormone free

Freshest milk, based on the date label

Fat content I prefer

Is the brand I always buy / Routine

Lowest priced

Actual Reasons Consumers Purchased Fluid Milk

2012

2010

After they purchased fluid milk though – these are

the real reasons they made their decisions

Source: 2010/12 Nielsen Custom Diary Market Research

• What consumers

actually do is buy fluid

milk on: Price, routine, fat

content and freshness

• As price continues to

play a strong role over all

other attributes, other

niche classes show flat

to declining interests

among traditional U.S.

Fluid Milk Buyers

#1 Reason

Confidential


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The Positive Marketing Opportunity for Milk

Despite facing direct competition from plant-based dairy alternatives,

Mintel said dairy manufacturers have other white space opportunities to

take advantage of.

“Milk has long been known for benefiting bone health, but there is a

much smaller percentage of consumers drinking dairy for heart or

weight-loss benefits,” Mintel said.

There is an opportunity to better highlight these attributes and expand

consumers’ perceptions of dairy milk’s healthfulness.”

“However, with the majority of consumers drinking dairy milk because

they like the taste, there should also be a stronger emphasis on milk’s

taste profile. Liking the taste is a leading reason consumers drink the

beverages they do.”

What opportunities does dairy milk have?


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Well? - YES! - With good & positive marketing

So in a vastly declining liquid milk marketlosing ground to soy & almond milk,

Could a new brand of real dairy milk succeed?

One sold for 2X the price per gallon?

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EM-US-19-0156Other company and product names are trademarks of their respective owners.

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Fairlife is sourcing

volume back from

alternate beverages

and other

categories. Only 30

percent of Fairlife’s

volume comes from

conventional milk.

The Proof of the Power of Positive Marketing


Consumers are

paying almost double

the average price per

gallon for Fairlife.

Fairlife represents

58 percent of the

lactose-free growth

and 14 percent of

flavored milk growth.

One out of every two

consumers who try

Fairlife purchase it

again.

Fairlife has delivered

over $275 million in

sales throughout the

last year, which only 1

percent of all new

food and beverage

products have

achieved.

Regaining

Momentum

Driving

Segment

Growth

Building

Consumer

Loyalty

Regaining

Momentum

Changing

Purchase

Behaviors


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High protein based food market to

grow at a CAGR of 10.56% during the period 2017-2021

The Positive Marketing Opportunity for Chicken

Source: Business Wire.com March 21, 2017Source: Foodnetwork.com 2019


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Simply the best Lean Nutritious Protein you can buy

as Center of Plate Nourishment for my family.The Power of Protein from Brand X Chicken – the world’s protein provider

Chicken – the most versatile protein food for your nutrition“A little bit of Chicken Fried” - Chicken Baked, Chicken Grilled, Chicken Sliced, Chicken Wings, Chicken Soup ……

A little bit of chicken to love in many ways for my family’s health

Pure Protein Possibilities from Brand Y

Potential Consumer Desired Positive Attribute

Brand Positions to Build On


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Grocery Chicken Brands

The Unintended Consequences of Negative ClaimsCreating Confusion & Worse - Undermining Consumer Trust in Chicken

Only 3% of respondents

correctly said broilers

are not raised in cages.

90% of respondents

said more than 20% of

chickens are raised with

added hormones.

A recent report written by Dr. Jayson Lusk at Purdue University shows:


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Should a brand story be aimed at 14% of the market?Growth in true volume is mixed as Organic and Vegetarian Fed decline

86%

Antibiotic Free 5%

Organic4%

Antibiotic Free & Vegetarian Fed, 4%

Vegetarian Fed , 1%

Free Range Variations0.5%

14%

Conventional

Source: Nielsen Total Food View, Total U.S. xAOC 52 Weeks Ending 6/23/18, UPC-coded and random-weight/Non-UPC data

Claims are mutually exclusive

Production

Claims

Production Claims

$ Growth Lbs. Growth

Abs. Lbs. Change

Antibiotic Free 9.4% 4.4% +5.5M

Organic 5.6% -4.5% -6.1M

Antibiotic Free & Veg Fed 4.3% 3.7% 3.5M

Vegetarian Fed -7.9% -10.7% -2.1M

Variations of Free Range 11.1% 21.4% +2.2M

Total 5.8% 0.8% +3.1M

GCAAFFNON00378

In Essence – When Consumers Have the Choice – they choose value over activist pushed claims 86% of the time

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Production Claims

Dollar

Sales

% of

Chicken

Sales

$ Growth Lbs. Lbs.

Growth

Abs. Lbs.

Change

Conventional Chicken $7.2B 66% 3.1% 3.6B 0.1% 4.5M

Chicken w/Production Claim $3.8B 34% 2.7% 1.3B -4.9% -65M

Antibiotic Free $3.6B 33% 2.4% 1.2B -5.3% -65M

Organic $503M 5% 11.0% 134M -0.2% -275K

Vegetarian Fed $509M 5% 1.3% 116M -1.7% -2.1M

Variations of Free Range $119M 1% 15.9% 23M 7.8% 1.7M

Total Chicken $11.0B 100% 3.0% 4.8B -1.2% -60M

Cla

ims N

ot

Mu

tua

lly E

xclu

siv

e

Source: Nielsen Total Food View, Total U.S. xAOC 52 Weeks Ending 2/2/19, UPC-coded and random-weight/Non-UPC data

Fresh Chicken Supermarket Sales – 52 Weeks Ending 2/2/19

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“GMOs”

Total Searches (-16%)

2018 vs 2017

Steve Lerch – Google Inc. - 2019 IDFA Presentation

“Organic”

Total Searches (-12%)

2018 vs 2017

Is the Hyper Focus on Food Production Methods Waning?



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ORGANIC FREE RANGE ALL NATURAL GRASS FED HORMONE FREE ANTIBIOTIC FREE

30%

33%

33%

37%

37%

40%

37%

39%

50%

53%

50%

53%

Source: Nielsen US Homescan Panel Survey, July 2018

2016 Responses

2018 Responses

Likelihood of Purchasing Fresh Meet with Healthy

Claims has Reduced Considerably in 2018


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Generation Z – by the numbers


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When you engage or react to criticism in your

marketing – or worse make it your brand story,

you actually over empower that criticism

and let it control your destiny!

That can damage our credibility and business.

We must focus on to the consumer’s emotional why!

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All Animal Protein Marketing Needs to be

& shaped only by the Consumers Emotional Why!!

POSITIVE

inspiring consumer loyalty to animal protein · 4. own the highest attribute you can! make that...

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