HMT health claims brussels 1 december

Discover the risk of letting EFSA run your business – and the reward of listening to consumers.

How to apply a brand led health claims strategy.

Peter WennströmPresident& Expert consultant

HealthClaims ConferenceBrussels 1 December 2010

Consumer data is ©Health Focus InternationalAllother content including Wennstrom’s Four Factors™ and the FourFactors® Brand Analysis system (The three-stakeholder curve) ©2010 Healthy Marketing TeamReproduction ONLY by written consent fromSimonG@HealthyMarketingTeam.com

“With EFSA’s negative ruling on health claims, is your business going down?”

Question to HMT from UK Journalist

HMT reply:“On the contrary – it has never been better. Thanks to EFSA more and more companies start to realize that the focus on rational

health claims has made them neglect their most important asset-

The brand”

HMT reply:“On the contrary – it has never been better. Thanks to EFSA more and more companies start to realize that the focus on rational

health claims has made them neglect their most important asset-

The brand”

1.The disconnect between health claims and consumers

2. The clash between basic communication rules and health claims

3. The impact on research, development and innovation.

5. The way forward for your brand – with or without health claims

How to apply a brand led health claims strategy

1. The disconnect between health claims and consumers

Meet your consumer who…

Meet your consumer who…

…doesn’t care about

you!

I don’t really care about your health claims, I don´t trust your expertsI am already confused about what to eat- my life is complicatedenough already!

“I’m often confused about what to eat in order to stay healthy”

2000 2003 2005 2008

Germany 24% 24% 20% 23%

Netherlands

28% 13% 21% 13%

France 26% 35% 40% 33%

UK 34% 31% 27% 18%

All data ©2010 Health Focus International – reproduction prohibited

2010 data now available from Health Focus®Contact Sam@HealthyMarketingTeam.com

FRANCE 2008: 33%

One third of consumers are confused about how to eat healthier

And you are not making it easier for them..

I’m tired of expertstelling me what is good for me…

2000 2003 2005 2008

Germany 38% 37% 35% 49%

Netherlands

43% 45% 45% 51%

France 43% 43% 45% 39%

UK 46% 49% 55% 53%

All data ©2010 Health Focus International – reproduction prohibited

2010 data available from Health Focus®Contact Sam@HealthyMarketingTeam.com

UK 2008: 50%

Half of consumers are tired of experts!

I don’t believe you!Don´t tell me what is good for me…

Strong agree / agree

UK 2008

Germany2008

France2008

Netherlands2008

Poland2008

I don’t believe many of the health claims made on food packages

48% 44% 43% 42% 52%

Almost half of consumers distrust claims!

All data ©2010 Health Focus International – reproduction prohibited

2010 data now available from Health Focus®Contact Sam@HealthyMarketingTeam.com

UK 2008: 48%

So how can you communicate successfully to a consumer who doesn´t care, doesn´t trust, doesn´t undestand

and most of all doesn´t have time to listen to you?

“ “There is already too much to chose There is already too much to chose from”from”

2. The clash between basic communication rules and health claims

Why your brand is your most important asset. Because first impressions last…

Dr. Albert Morabian at UCLA led seminal research on trust. We can be confident that 65% to 90% of communication is nonverbal and only 7% is words.

7% Words

55% Body Language

38% Tone of Voice

Your brand is the ‘space’ you occupy in the mind of the consumer

That space is your starting point!

Brand stems from the Nordic word ”Brander” meaning to burn a mark.

3. The impact on research, development and innovation

You must understand what consumers expect from you and what they trust your brand to deliver:

Any doubt about what you expect from Coca Cola?

So this is what you expected..and so it is very successful

Great taste with zero sugar

And this was also good news

Great taste with no nasties..

But this was not what you nor anybody else expected from Coke..so it failed.

If you want vitamins and minerals there are other more trusted choices… like Vitamin Water eg.

5. The way forward for your brand – with or without claims.

And the impact on research, development and innovation

“”

Hard to see the wood

for the trees??

Understand where you are playing in health and wellnessThe market for any health and wellness benefit is developed in three stages. Each stage is a playing field with its own set of rules. Your need for a Health Claim will depend on where you play.

©2010 Healthy Marketing Team – Four Factors® Brand Analysis system

The life cycle of health is introduced in the Food & Health Marketing Handbook by Wennström and Mellentin and commercially applied by the Healthy Marketing Team

Stage 1: The technology/medical stakeholders.They need the health benefit. They have a real problem.

MASS MARKET

STAKEHOLDERS

Cholesterol

©2010 Healthy Marketing Team – Four Factors® Brand Analysis system

Is the concept accepted by the medical community?

2. The Lifestyle stakeholders.These are the early adopters and they want new benefits with a fit to their beliefs

©2010 Healthy Marketing Team – Four Factors® Brand Analysis system

Is the concept liked by trendsetters and key opinion leaders?

3. The Massmarket stakeholders just want tasty and healthy everyday foods that they understand.

©2010 Healthy Marketing Team – Four Factors® Brand Analysis system

Is the concept understood and accepted by everyone?

I believe in pomegranates.

Three playing fields for the benefits of fruit and vegetables

I need to lower my Cholesterol.

©2010 Healthy Marketing Team – Four Factors® Brand Analysis system

Five servings of fruit a day are good for you

As a functional ingredient

As a superfood As food

Three stakeholders, three strategic platforms:

Technology (Medical) benefits :

Problem-solution, scientific proof, real need, education

Lifestyle benefits:

Led by trends and new beliefs, about being first, better, authentic etc

Mass (Standard) benefits:

Led by normality – just doing the

normal/right thing, everyone knows

The FourFactors ® Brand Analysis System

How you can make it happen for your brand…

Where do your brands fit?What kind of claims should you make?

Experts in helping brands respond to changing attitudes in nutrition, health and wellness.

We work around the globe (25 countries in 2009)

Specialise in brand positioning and product innovation / renovation in food, ingredients and pharmaceuticals.

We are global implementation partners to HealthFocus

Peter Wennström The Four FactorsTM Brand Analysis System Food & Health Marketing Handbook

Who are we?

What we do:Better targeted brands, faster to market!(and optimise effort and investment)

We can improve your performance!

And then make sure you

stay on target!

By getting the fundamentals right!

3 Common questions when you’re entering the Health and Wellness market…

1. How to create and launch the right new idea?

1. How to choose “Where to Play” in the category?

1. How to deal with a failing brand

Brand New

Brand Direction

Brand Rescue

And one common first step:

1. How to critically diagnose how your brand is doing in Health and Wellness

HealthCheck your brandHealthCheck your brand

Global experts in health and wellness marketing. In 2009 alone supporting our clients on the ground in 25 countries. Combining expertise and experience we help them to understand:What is happening?• Global consumer trends and data • Global market and category development

Why is it happening?• Consumer drivers and true motivations• Product success and failures explained

How to make it happen for your brands?• Category direction/Innovation pipeline• Brand Acceleration• Concept Development• Brand Development• Brand Management

Our Blog…

www.HealthyMarketingTeam.com

Thank you

More information:

Peter Wennström Peter@HealthyMarketingTeam.com

BLOG:

www.HealthyMarketingTeam.com