What’s a “like” really worth?

Dr. Tina McCorkindale, Assistant Professor at Appalachian State University Department of Communication, recently published studies that found that 75% of the Millenial generation (18- to 29-year olds) said they had liked an organization or business on Facebook. However, 69% of them said they rarely or never returned to the fan page.

Since the primary objective of social media is engagement, this is not an impressive ROI. The question is: why did respondents push the “like” button in the first place? The study found that the majority learned about the organization’s or business’s fan page through a friend, or by accidentally landing there.  Only 28% actually sought out the organization or business. It appears that peer pressure may influence “like” as much or more than other factors.

The take away for food and beverage marketers is that the number of  “likes” is not as important at the quality of “likes”. To boost the quality of “likes”, marketers need to understand engagement…coupons, offers, games, dialogue, and other relevant content that is updated frequently. This is the investment required by marketers to make effective use of social media.

Dr. McCorkindale concludes that, “if they (organizations and businesses) can’t manage the space, they really shouldn’t be using the space.” A well designed social media plan offers unique opportunities to build brand loyalty, but because it is not a static form of communication, it requires an ongoing commitment to engagement.

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Something very “Pinteresting” is happening.

In a little over a year, Pinterest has become the #3 social network traffic site behind Facebook and Twitter. While Pinterest is also a social sharing site, its concept clearly differentiates it from the others. “Pinners” setup Pinboards based on their interests and “pin” images they like, seen mostly online, and want to keep as reference. Pinboards run the full gamut of titles or interests, but since the vast majority of Pinterest’s participants are female, the top categories are fashion/beauty, home, and cooking/food.

It is the cooking/food Pinboards that offer an an enormous opportunity for food producers and foodservice operators. “Pinners” post images of products, finished dish photos, and recipes they like. While Pinterest currently does not offer paid advertising opportunities, it has stated the intention to do so at some point in the future. For now, though, companies can set up Pinboards, and many are doing so. In fact, since February of this year, the number of companies promoting their Pinterest activity has grown from 0% to 24%, mostly via email and links from their websites.

Social media as a marketing tool has grown steadily, but the Pinterest concept is unique in the sense that it has created a huge virtual window shopping opportunity. Pinners can “repin” images from other Pinboards, and they have a propensity to purchase items they see on Pinterest. In fact, a recent survey by PriceGrabber indicates that 21% of respondents purchased items they saw on someone else’s Pinboard.

Food marketers and foodservice operators with consumer content rich websites, stand to gain the most by tapping into this phenomenon. “Pin it” links from product pages could likely become commonplace along with the “like” icon. It is the direct link via “pin this” that gives Pinterest an edge in delivering a direct contribution to sales that, so far, other social sites seem to have been unable to do.

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“Should I eat that?” There’s an app for that.

Consumers are becoming consumed with concern over the nutritional values of the foods they eat. Of the US consumers with smartphones, over 40% have downloaded apps that answer the burning question: should I eat that?

Fooducate, MyFoodWatch, Allergy Eats, and Don’t Eat That are among the most popular mobile tools for accessing food product nutrition facts. According to Hemi Weingarten, Fooducate founder and CEO, approximately 500,000 consumers use this app or its corresponding website each week. A survey of 15,000 Fooducate users revealed that at least once, 80% chose a more healthy alternative to the product they were considering buying.

The apps are easy to use. Consumers scan product bar codes while shopping and wait for the algorithm, developed with the assistance of dietitians, to provide the nutrition facts.  Fooducate actually produces a letter grade, B+ or C- and so on, and then provides an explanation of the grade, such as contains HFCS, artificial colors or flavors, or does not contain a significant amount of an ingredient such as whole grains, if that ingredient claim has been made.

These apps are giving consumers the opportunity to weigh marketing claims against product formulations. Food and beverage marketers need to ensure that the marketing claims and key message points they make about their products, particularly on product packaging, can be supported by product formulations.

Consumers choose various food products for many reasons and healthfulness is not always the key determinant.  However, they do seem to prefer products and brands whose marketing claims are an accurate reflection of their formulation.  For consumers, “should I eat that”  has as much to do with simply wanting to be informed as it does about always making the healthiest choices.

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Shouldn’t common food names remain in common use?

The newly formed Consortium for Common Food Names, a global initiative of food producers and organizations, thinks so.  They will work to oppose any attempt to monopolize generic food names that have been commonly used, in some cases for over a century.  The distinction here is geographical indication (GIs) that protect legitimate regional products like Parmigiano Reggiano from commonly understood cheese varietals such as parmesan, which is produced in many regions throughout the world.

The European Commission has been attempting to expand the definition and territory of GIs, recently as part of free trade agreements.  Left unchecked, parmesan, provolone, bologna, salami, and countless other common food names would be restricted.  Producers who label their products with these names, whether as product variety descriptors or brand names, would have to rename and repackage potentially billions of dollars of food products.

The Consortium’s efforts will be focused on working with all interested parties to develop guidelines that provide reasonable protections for GI food products while also protecting the rights of producers and marketers to continue to use common food names.  After all, consumers have been buying bologna for generations and it’s doubtful they’ll understand or embrace a new term for this beloved lunch meat.

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Old brand mascots find new life in social media.

If you’ve ever wondered what happened to the likes of Charlie the Tuna and the silent, but sophisticatedly dressed Planters Mr. Peanut, they’ve found new lives and voices in social media. While they may have died on TV like many of the shows they advertised on, they are alive and well, with new roles as brand ambassadors in social media, where there is plenty of time and space for their schtick.

Not all mascots survived the transition.  The King at the burger joint was retired due to lack of current relevance, and even social media could not resuscitate him.

The interactive nature of social media and, the high degree of brand engagement that goes on there, has created the perfect application for brand mascots.  The two take-aways are these: old mascots don’t always  have to die and understanding the use of new media is no longer a simple curiosity, but a marketing imperative.

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Breakfast by another name is a marketing opportunity.

According to market research firm NPD,  over 40% of individuals give themselves two or more eating or drinking opportunities from the time they awake until roughly 11 am.  For some, it’s a cup of coffee or some other beverage, but for others it includes a breakfast meal and a mid-morning snack.  However consumers choose to define these eating and drinking opportunities, for food and beverage marketers these consumption patterns define an opportunity.

In terms of eating, day-parts have become increasingly blurred from the traditional three meals a day, and many consumers think of snacks as a fourth mini-meal, no matter which day-part they consume it in.  “Understanding the number of eating and drinking occasions and items helps food manufacturers seize the morning opportunity,” according to Dori Hickey, author of NPD’s  study “Morning MealScape 2011″.

Product versatility and positioning gives food marketers the opportunity to drive increased sales.  One person’s morning treat with coffee is another person’s afternoon snack or evening mini-meal.

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A branding milestone for Oreo cookies.

Hard to believe, but Oreo Sandwich Cookies brand turns 100 on March 6th. While the brand has changed hands over the last 100 years and is currently owned by Kraft Foods, it has maintained its presence and relevance in the supermarket cookie aisle. Kids and adults from generations past enjoyed them, just as they do today.

Protecting and nurturing a brand requires commitment to both its roots and its contemporary environment. Kraft Foods has indicated that the birthday celebrations are being supported with a fully integrated campaign using traditional and new media along with special events and promotions. The traditional components re-enforce the legacy and authenticity of the Oreo brand, while the new media components speak to the younger generations of Oreo fans.

It is a milestone for any food and beverage brand to celebrate a 100th birthday. The only way to achieve that kind of success is through continued branding, advertising, and marketing efforts.

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“Free-from” appearing on more food packaging.

There were almost 3,000 new food product launches last year in Western Europe and the US with “free-from” packaging claims. That represents  10% of all new product launches in the US and Western Europe combined. Dairy-free and lactose-free represent $3.6 bln of market value while gluten-free represents $3.5 bln…certainly not “free-from” profitable.

“Free-from” packaging claims play into consumer perceptions of the health benefits of not consuming certain foods or ingredients.  This is an interesting juxtaposition of another current trend: “good for you” package claims of what is in food products. Food marketers need to closely read consumer attitudes in light of their products and ingredients to develop packaging that successfully positions  their products.  With major brands, for example Barilla, Italy gluten-free pasta, jumping into what was simply a market niche a couple of years ago, “free-from” claims are clearly now mainstream in marketing and advertising.

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Your food products may be great, but do consumers “like” you?

Seventy percent of consumers say they avoid buying brands and products from companies they dislike, according to a recent consumer survey from Weber Shandwick and KRC Research.  Equally important, two-thirds of surveyed consumers said they routinely check product labels and packaging to determine the name of the corporate entity owning the product brand, and over 50% would hesitate to buy a product if the corporate identity is not readily visible on the packaging.

Clearly, branding in the classic sense has evolved to include corporate reputation as well as product brand reputation. This is particularly important for food and beverage marketers.  Perceived wrong-doing, in any number of areas, is more significant in consumer attitudes than the perception of corporate efforts  “to do the right thing”.

While companies can’t control everything that is said about them, a long term commitment to branding and building consumer confidence can provide a “leg up” when reputation issues do arise. Since over 80% of survey respondents indicated that online reviews and search results were primary sources of corporate and product brand information, keeping in touch with consumers through websites, social media, and advertising will help build and maintain a solid reputation. Bottom line, consumers have many choices and they don’t have to buy products they like from companies they don’t like.

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Food fads, trends, niches, things. Which is better?

Actually, things.  According to CBD Marketing, a strategic branding and integrated marketing firm,  products are defined as things if they create a new sustained category that results in pervasive consumer use and acceptance. For example, trans fat free, bottled water, or light beer. These product categories have attracted multiple brands and products, and consumers regularly buy them. Fads aren’t bad, but they are short-lived, so better to be first on the bus than last. Trends last longer than fads, but they do have a life-cycle. Trends are fads that were better advertised and marketed.   Niches have sustained value and market potential, but the market segment is narrow.  Gluten-free, organic, soy all have demonstrated a staying power within their market segments.  Many food and beverage products can begin as fads and move through the spectrum to things with a commitment to branding and marketing.

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