Claims you can believe in: how the consumer industry will change to increase

trust in product claims

Ronan Stafford Senior Analyst, Canadean Food Matters Live

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Two important shifts have changed how product claims are perceived by consumers

Consumers have transitioned from an environment where they struggled to find information, to an environment of information

overload

Consumer trust in retailers and manufacturers is low

Will consumers hear me? Will consumers listen to me?

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Two important questions: 1. How do I cut through the noise to get my

brand/product message heard? 2. How do I build trust in my brand/product at

a time when consumers are predisposed to not believe me

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There are 3 ways in which brands can cut through the noise

Use more data analysis,

to test what messages work, and which don’t

Target the “new online” world, with podcasts and

vloggers driving word of mouth

Integrate products with smart kitchens,

to drive conversations with consumers at the point of preparation

A B

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Better use of data to find a winning message: It’s not big data, it’s “relevant data”

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2%

0%

0%

28%

30%

17%

14%

8%

More than 50% smaller

25% to 50% smaller

Up to 25% smaller

Approximately the same

Up to 25% larger

25% to 50% larger

50% to 100% larger

More than 100% larger

By 2021, do you foresee the budget for data analytics in your company being larger, or smaller? Global CPG Executives survey, Q1 2016

Data budgets are increasing, at a time when data

capture and analysis is

becoming more cost-effective.

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Target the “new online” world: Vloggers and podcasters are seen by consumers as more relatable than traditional advertising. Use them to create word of mouth.

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Vloggers and podcasters have an audience equivalent to leading TV events

Equivalent traditional media event (during October, BARB ratings, viewers within 7

days of broadcast) 14.9 million

12.8 million

11.2 million

7.4 million

6.9 million

6.1 million

5.4 million

3.9 million

3.8 million

Number of subscribers (end October 2016) UK Vlogger

KSI

TheDiamondMineCart

Zoella

ThatcherJoe

Caspar

Danisnotonfire

PointlessBlog

Joe Weller

AmazingPhil

Great British Bake-off Semi-final (13.3 million viewers)

Poldark – Season 2, Episode 6 (6.1 million viewers)

Strictly Come Dancing – Week 4 (11.2 million viewers)

Coronation Street – Monday 10th Oct (6.5 million viewers)

Victoria – Season Finale (5.6 million viewers)

Football: England v Slovenia (3.9 million viewers)

DCI Banks – Season Finale (3.8 million viewers)

The Apprentice – Season 12, Episode 1 (11.2 million viewers)

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Image source: Fanbytes.co.uk

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Integrate products with smart kitchens: Talk to the consumer in their home

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Image source: Samsung.com

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Image source: Carrefour.com

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There are 3 ways in which brands can rebuild trust

Lead the charge on legislation,

and show consumers you’re on their side

Build a broader view of health,

including lifestyle balance and mental health

Focus on fresh, local and specific ingredients

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Lead the charge on legislation: Show consumers you’re on their side

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Image source: Campbellsoupcompany.com

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Build a broader view of health: Including lifestyle balance and mental health

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57%

52%

46%

40%

33%

33%

Eating healthily

Rest and relaxation

Developing or maintainingpositive personal relationships

Exercising or improving physicalfitness

Living an ethical or sustainablelifestyle

Living a less complicated lifestyle

How important do you consider the following to be in creating a feeling of wellbeing or wellness? Percentage of “Very Important” Responses Global Consumer survey, Q3 2016

Healthy eating is only part of the wellbeing picture, and brands

need to become more well rounded in

helping consumers to achieve a higher level

of wellness.

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Focus on fresh, local and specific ingredients: Focus on the claims most likely to resonate with consumers

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Fresh 79% of respondents claim more

or much more effective

Local 75% of respondents claim more

or much more effective

Natural 74% of respondents claim

more or much more

effective

Pure 69% of respondents claim more

or much more effective

Raw

51% of respondents claim

more or much more effective

Superfood 44% of respondents claim

more or much more

effective

Celebrity

endorsed 27% of respondents claim

more or much more effective

Strong opportunity Moderate opportunity Weak opportunity

By 2021, do you believe the following claims will be more, or less effective than they already are? Global CPG Executives survey, Q1 2016. Analysis of “more effective” and “much more effective” responses.

GMO Free 73% of respondents claim

more or much more

effective

Craft 48% of respondents claim

more or much more effective

Clinically

proven

46% of respondents claim

more or much more

effective

Imported 12% of respondents claim

more or much more effective

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Do you agree or disagree: By 2021, the use of specific ingredients will be more prominent in our labeling and marketing Global CPG Executives survey, Q1 2016.

18%

61%

20%

0% 1%

Strongly agree

Agree

Neither agree nor disagree

Disagree

Strongly disagree

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Can I cut through the noise? 1. Use more data

analysis 2. Target the “new

online” world 3. Integrate into the

smart kitchen

Can I build/rebuild trust? 1. Lead the charge on

legislation 2. Build a broader view

of health 3. Focus on fresh, local

and specific ingredients

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Thank You

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@canadean