Source: Healthy Marketing Team
Opinion: “Tetra Pak for life”
Neal Cavalier-Smith today gave the following interview to Tetra Pak for life magazine: Questions ranged from our views on consumer health trends in emerging and developed markets, views on additives, to what we expect will be the successful added-value products of the future:
Q: What are global consumer health-trends today?
A: Across all markets we observe that “healthier” food launches have a higher success rate than those with no health element. Consumers are increasingly shopping for ”healthful reasons“… The HealthFocus® Consumer Survey in 2008 showed 68% of consumers were Always/Usually shopping for healthful reasons; up from just 12% back in 2003.
A: Across all markets we observe that “healthier” food launches have a higher success rate than those with no health element. Consumers are increasingly shopping for ”healthful reasons“… The HealthFocus® Consumer Survey in 2008 showed 68% of consumers were Always/Usually shopping for healthful reasons; up from just 12% back in 2003.
Q: However markets in different stages of development see different health trends:
A: In emerging markets for health consumers tend to look for added health by fortification - more vitamins, minerals and well-known healthy ingredients such as fish-oils. For example in Indonesia where 70% of the milk market is powder based, mothers look for the most additives to judge the quality of the product as they try to enhance their children’s development through positive nutrition. In more developed health markets consumers tend to seek products aimed more specifically at them; kid’s milk, menopausal women’s milk. These may still be fortified, but the critical success factor is that the ingredient does not take center-stage, rather the benefit and brand is aimed at the needs of a clear target group. To command a price premium the brand MUST be a credible provider of the benefit, to the target group
A: In emerging markets for health consumers tend to look for added health by fortification - more vitamins, minerals and well-known healthy ingredients such as fish-oils. For example in Indonesia where 70% of the milk market is powder based, mothers look for the most additives to judge the quality of the product as they try to enhance their children’s development through positive nutrition. In more developed health markets consumers tend to seek products aimed more specifically at them; kid’s milk, menopausal women’s milk. These may still be fortified, but the critical success factor is that the ingredient does not take center-stage, rather the benefit and brand is aimed at the needs of a clear target group. To command a price premium the brand MUST be a credible provider of the benefit, to the target group
Q: What are the core categories (milk and juice) consumer health-trends today? (What are customer attitudes to health additives?)
A: Juice and dairy are excellent carriers of healthy functionality (because of well-understood heritage of milk in growth, and of fruit juice in providing vitamins). However, especially in more developed markets we observe increasing suspicion towards “processed foods” and very high concern about “additives” - yet certain ingredients are not considered additives. In particular vitamins, minerals, pro-biotic cultures are accepted by consumers in many countries. Preservatives and artificial colours, are forms of additive almost universally avoided by health-conscious consumers. Concern for genetic modification and irradiation varies widely between markets. The trend is towards healthy “food-in-food”, rather than “science in food”… “I would rather trust the cow than the scientist”. Increasingly consumers are looking for reassurance that the food is as close to natural as possible, and looking for the fewest possible number of ingredients. Rather than looking for more additives, they are looking for less “bads”. Also highly relevant to dairy/juice is that consumers in many countries with obesity problems are beginning to recognize that “diet” products do not provide a solution. The market for products aimed at those who feel out-of-control and will believe over-promising claims is in steep decline. Deprivation is out, and enabling is in -Diet brands are needing to re-position as helpful, coaching, part-of-a total-lifestyle-solution brands rather than promising miracles. (Notice the “South Beach Diet” range re-positioning as “South beach living”).
A: Juice and dairy are excellent carriers of healthy functionality (because of well-understood heritage of milk in growth, and of fruit juice in providing vitamins). However, especially in more developed markets we observe increasing suspicion towards “processed foods” and very high concern about “additives” - yet certain ingredients are not considered additives. In particular vitamins, minerals, pro-biotic cultures are accepted by consumers in many countries. Preservatives and artificial colours, are forms of additive almost universally avoided by health-conscious consumers. Concern for genetic modification and irradiation varies widely between markets. The trend is towards healthy “food-in-food”, rather than “science in food”… “I would rather trust the cow than the scientist”. Increasingly consumers are looking for reassurance that the food is as close to natural as possible, and looking for the fewest possible number of ingredients. Rather than looking for more additives, they are looking for less “bads”. Also highly relevant to dairy/juice is that consumers in many countries with obesity problems are beginning to recognize that “diet” products do not provide a solution. The market for products aimed at those who feel out-of-control and will believe over-promising claims is in steep decline. Deprivation is out, and enabling is in -Diet brands are needing to re-position as helpful, coaching, part-of-a total-lifestyle-solution brands rather than promising miracles. (Notice the “South Beach Diet” range re-positioning as “South beach living”).
Q: What will be global consumer health-trends tomorrow?
A: Consumers are becoming more informed and also more skeptical of additives and food companies. Much work is being done globally on extracting and concentrating natural goodness to make food more functional - this has proved highly successful when brought to us by “expert” brands such as Anlene or Benecol (which commands a 3-400% price premium). The combination of the ‘avoidance of bads’ and yet the increasing desire for foods which are functional and targeted to fit our busy lives (such as cholesterol lowering, digestive transit or immunity enhancing) points to success for ingredients derived from nature. Many cultures understand natural “superfoods” such as olive oil, or chamomile with known benefits, so it can be an easier step to add value by enhancing with a new superfood such as cranberry, pomegranate or acai, than by enhancing with a new scientific formulation. My personal prediction is that successful added-value will come where such “natural” additives overlap with a number of key consumer trends, and the source ingredient is known/believed for the end benefit. Eg: Spinach for strength, Aloe for skin health etc. Introducing a new benefit with a new ingredient in a new brand will require commitment to a massive educational effort. If the carrier or source of the ingredient are not accepted by the consumer as delivering that specific benefit, then the proposition will be rejected. See the “FourFactors” below for how to be sure this does not happen.
A: Consumers are becoming more informed and also more skeptical of additives and food companies. Much work is being done globally on extracting and concentrating natural goodness to make food more functional - this has proved highly successful when brought to us by “expert” brands such as Anlene or Benecol (which commands a 3-400% price premium). The combination of the ‘avoidance of bads’ and yet the increasing desire for foods which are functional and targeted to fit our busy lives (such as cholesterol lowering, digestive transit or immunity enhancing) points to success for ingredients derived from nature. Many cultures understand natural “superfoods” such as olive oil, or chamomile with known benefits, so it can be an easier step to add value by enhancing with a new superfood such as cranberry, pomegranate or acai, than by enhancing with a new scientific formulation. My personal prediction is that successful added-value will come where such “natural” additives overlap with a number of key consumer trends, and the source ingredient is known/believed for the end benefit. Eg: Spinach for strength, Aloe for skin health etc. Introducing a new benefit with a new ingredient in a new brand will require commitment to a massive educational effort. If the carrier or source of the ingredient are not accepted by the consumer as delivering that specific benefit, then the proposition will be rejected. See the “FourFactors” below for how to be sure this does not happen.
Q: How are customer attitudes to health changing?
A: Consumers want it all - they bought into convenience, then premium, then healthy - now they want all that at a low price with great taste AND increasingly they want it to be ethical and good for the health of the planet too. A fast-increasing number of consumers are becoming “supermarket activists” - as high as 90% of Australians, and 60% globally feel they can make a difference as individuals and are knowledgeable about how to do their bit. This is especially relevant to Tetra Pak customers as surveys have shown Cartons are considered more environmentally friendly than Plastic Bottles, and more than half of shoppers now say they are taking these concerns into account at point-of-purchase. More and more consumers are trying to hold back the years - we call the trend “Ageing Successfully” - the idea that people don’t want their health to limit their activities - they played tennis, and indeed made-love at 20, 30, 40 years of age and expect to continue doing so until a ripe-old-age, and right up until the day they die.
A: Consumers want it all - they bought into convenience, then premium, then healthy - now they want all that at a low price with great taste AND increasingly they want it to be ethical and good for the health of the planet too. A fast-increasing number of consumers are becoming “supermarket activists” - as high as 90% of Australians, and 60% globally feel they can make a difference as individuals and are knowledgeable about how to do their bit. This is especially relevant to Tetra Pak customers as surveys have shown Cartons are considered more environmentally friendly than Plastic Bottles, and more than half of shoppers now say they are taking these concerns into account at point-of-purchase. More and more consumers are trying to hold back the years - we call the trend “Ageing Successfully” - the idea that people don’t want their health to limit their activities - they played tennis, and indeed made-love at 20, 30, 40 years of age and expect to continue doing so until a ripe-old-age, and right up until the day they die.
Q: What are ten key trends in healthy marketing?
A: My personal take on trends I observe would be: Ageing Successfully - as above Functional for performance - added function to solve a problem which people believe can be diet-related (eg. sustained energy / cholesterol lowering ) Less is more - ‘clean label’ has been a positive point of differentiation for many brands as consumers look to avoid the accumulation of toxins in the body (#1 concern globally in the HealthFocus International 2008 Global Survey). Why add more ingredients when a) fewer will do, and b) fewer will be preferred by consumers. Taste is King - even the cleverist healthy NPD will fail if the consumer does not repurchase because of taste. Fewer than 20% of consumers say they will sacrifice taste for health benefit - in reality the figure is probably smaller. Don’t over promise - some of the big ideas and big promises have been short lived fads. Beautifying yoghurts and slimming products have a tough job to do. When consumers don’t see results - whether that’s your fault or not - your product condemns itself to an early demise. Keep it Simple! More is not more. Cramming every mysterious benefit and ingredient into ‘do-it-all’ products confuses the consumer (Muller originally made this mistake with 3-in-1 Vitality in the UK). In contrast, single idea products (Actimel for immunity; Benecol for cholesterol lowering) have thrived. In addition New Nutrition Business lists it’s authoritative choice of 10 Key Trends in Food, Nutrition & Health in 2009: (www.new-nutrition.com , Dec 2008 / Jan 2009 ; Vol 14 Number 3) • Digestive health • Feel the benefit • Weight management • Energy • Naturally healthy • Fruit: the future of functional foods • Kids’ nutrition • Snacking • Target the loyal niches • Packaging and premiumisation
A: My personal take on trends I observe would be: Ageing Successfully - as above Functional for performance - added function to solve a problem which people believe can be diet-related (eg. sustained energy / cholesterol lowering ) Less is more - ‘clean label’ has been a positive point of differentiation for many brands as consumers look to avoid the accumulation of toxins in the body (#1 concern globally in the HealthFocus International 2008 Global Survey). Why add more ingredients when a) fewer will do, and b) fewer will be preferred by consumers. Taste is King - even the cleverist healthy NPD will fail if the consumer does not repurchase because of taste. Fewer than 20% of consumers say they will sacrifice taste for health benefit - in reality the figure is probably smaller. Don’t over promise - some of the big ideas and big promises have been short lived fads. Beautifying yoghurts and slimming products have a tough job to do. When consumers don’t see results - whether that’s your fault or not - your product condemns itself to an early demise. Keep it Simple! More is not more. Cramming every mysterious benefit and ingredient into ‘do-it-all’ products confuses the consumer (Muller originally made this mistake with 3-in-1 Vitality in the UK). In contrast, single idea products (Actimel for immunity; Benecol for cholesterol lowering) have thrived. In addition New Nutrition Business lists it’s authoritative choice of 10 Key Trends in Food, Nutrition & Health in 2009: (www.new-nutrition.com , Dec 2008 / Jan 2009 ; Vol 14 Number 3) • Digestive health • Feel the benefit • Weight management • Energy • Naturally healthy • Fruit: the future of functional foods • Kids’ nutrition • Snacking • Target the loyal niches • Packaging and premiumisation
Q: How can the health trends work for a brand?
A: It is important to note the difference between a TREND and a FAD. Fads are short lived and often over-hyped resulting in dead-ends and missed sales forecasts, whereas capturing a TREND at the right point on the curve can accelerate a brand and provide sustainable growth. Critically, if a brand can see a TREND emerging among its’ own core consumers, and then make NPD to answer that trend, it can revitalize the whole brand. A good example here was Benecol, the Cholesterol Lowering experts, originally known for margarine, successful launching a daily-dose small-bottle yoghurt format, made successful by Yakult, but with the new cholesterol lowering benefit. The key is to understand the complex point-of-sale mental calculation going on in the consumer’s mind…
A: It is important to note the difference between a TREND and a FAD. Fads are short lived and often over-hyped resulting in dead-ends and missed sales forecasts, whereas capturing a TREND at the right point on the curve can accelerate a brand and provide sustainable growth. Critically, if a brand can see a TREND emerging among its’ own core consumers, and then make NPD to answer that trend, it can revitalize the whole brand. A good example here was Benecol, the Cholesterol Lowering experts, originally known for margarine, successful launching a daily-dose small-bottle yoghurt format, made successful by Yakult, but with the new cholesterol lowering benefit. The key is to understand the complex point-of-sale mental calculation going on in the consumer’s mind…
Q: And What is the FourFactors® model and how is it used?
A: Wennstrom’s FourFactors® of success is a practical checklist which allows you to model the consumer’s point of sale mental calculation and understand why she would pick your product, or pick that of a competitor. At the Healthy Marketing Team we work with clients to analyse successes and failures and to create new brands and products using these four factors. Collectively the FourFactors ensure that the consumer NEEDS the product, ACCEPTS the ingredient, UNDERSTANDS the benefit and TRUSTS the brand. The model ensures innovators and marketers ask the right questions before they launch and as a result avoid expensive brand failures. Peter’s book, Wennstrom’s FourFactors of Success is available from www.healthymarketingteam.com
A: Wennstrom’s FourFactors® of success is a practical checklist which allows you to model the consumer’s point of sale mental calculation and understand why she would pick your product, or pick that of a competitor. At the Healthy Marketing Team we work with clients to analyse successes and failures and to create new brands and products using these four factors. Collectively the FourFactors ensure that the consumer NEEDS the product, ACCEPTS the ingredient, UNDERSTANDS the benefit and TRUSTS the brand. The model ensures innovators and marketers ask the right questions before they launch and as a result avoid expensive brand failures. Peter’s book, Wennstrom’s FourFactors of Success is available from www.healthymarketingteam.com
Q: How did you get to the Healthy Marketing Team?
A: I have worked for many years as a strategist, formerly at international branding agency DesignBridge. When we noticed the challenges faced by our clients to successfully position and launch healthy and functional foods we realized that a more rigorous, data and tool-led approach was needed and so we teamed up with Peter Wennstrom, President of Health Focus Europe and one of the world’s most experienced functional food experts to found the Healthy Marketing Team. The HMT has turned the art of healthy food marketing into more of a science, with a set of proven tools and processes which properly applied can help cut through the clutter to a clear, single-minded health proposition which fits your brand.
A: I have worked for many years as a strategist, formerly at international branding agency DesignBridge. When we noticed the challenges faced by our clients to successfully position and launch healthy and functional foods we realized that a more rigorous, data and tool-led approach was needed and so we teamed up with Peter Wennstrom, President of Health Focus Europe and one of the world’s most experienced functional food experts to found the Healthy Marketing Team. The HMT has turned the art of healthy food marketing into more of a science, with a set of proven tools and processes which properly applied can help cut through the clutter to a clear, single-minded health proposition which fits your brand.
Q: What is the most exciting part of your career?
A: An easy question to answer - I often visit companies who are filled with knowledge about their own market and consumers and products but confused about exactly how to link those pieces of the jigsaw into a winning brand or product. It is very exciting to spend a couple of days with them and share our experience and tools, developed across hundreds of similar projects, to quickly bring their NPD to life; that’s our promise “Better targeted products, faster to market”. Then even more exciting to see those products appear, and stay successfully, in the supermarket.
A: An easy question to answer - I often visit companies who are filled with knowledge about their own market and consumers and products but confused about exactly how to link those pieces of the jigsaw into a winning brand or product. It is very exciting to spend a couple of days with them and share our experience and tools, developed across hundreds of similar projects, to quickly bring their NPD to life; that’s our promise “Better targeted products, faster to market”. Then even more exciting to see those products appear, and stay successfully, in the supermarket.
Q: What is the most interesting experience that has happened to you during your career?
A: Certainly among my favourite was a week spent consulting with Tetra-Pak clients in an emerging market which was just at the “tipping point” for value-added health… We had previously worked in a number of similar countries in terms of development - we spent the whole week helping TP customers understand what consumers would be wanting next and how their company could be first. It felt like having a crystal ball.
A: Certainly among my favourite was a week spent consulting with Tetra-Pak clients in an emerging market which was just at the “tipping point” for value-added health… We had previously worked in a number of similar countries in terms of development - we spent the whole week helping TP customers understand what consumers would be wanting next and how their company could be first. It felt like having a crystal ball.
Q: What health trends research result has surprised you the most?
A: The speed with which consumers in many cultures are becoming confused by health, losing faith in big food companies and starting to look for their own knowledge network -particularly online- and the effect that has on their shopping habits - rejecting processing and seeking positive ethical/environmental qualities. It means that 100% of the product, brand, communication and the whole value chain now need to be exactly right. Marketing is getting tougher.
A: The speed with which consumers in many cultures are becoming confused by health, losing faith in big food companies and starting to look for their own knowledge network -particularly online- and the effect that has on their shopping habits - rejecting processing and seeking positive ethical/environmental qualities. It means that 100% of the product, brand, communication and the whole value chain now need to be exactly right. Marketing is getting tougher.
Q: What healthy products do you personally prefer?
A: I tend to like products which feel less tampered with, and especially those with high natural “goods” like antioxidants in fruit (Eg: Knorr vie). I don’t have high cholesterol but I do recommend Benecol to friends, and I am a big fan of Activia - because you can really feel the effect.
A: I tend to like products which feel less tampered with, and especially those with high natural “goods” like antioxidants in fruit (Eg: Knorr vie). I don’t have high cholesterol but I do recommend Benecol to friends, and I am a big fan of Activia - because you can really feel the effect.
Q: What is the connection between TP and the Healthy Marketing Team?
A: The Healthy Marketing Team advises Tetra Pak on trends and runs seminars, training (especially on the FourFactors) and one-to-one client consultancy projects for Tetra Pak customers in many markets. Where TP feels that a customer would benefit from a little extra marketing support, they often call in the Healthy Marketing Team to spend a day or two with a customer to help accelerate and focus NPD.
A: The Healthy Marketing Team advises Tetra Pak on trends and runs seminars, training (especially on the FourFactors) and one-to-one client consultancy projects for Tetra Pak customers in many markets. Where TP feels that a customer would benefit from a little extra marketing support, they often call in the Healthy Marketing Team to spend a day or two with a customer to help accelerate and focus NPD.
Q: What about Branding with a twist event?
A: This is an example of a training which we are doing with TP. First we will share some best practices and then we will work with invited TP customers from around the world to develop product concepts based on the Healthy Marketing Team tools and approach. Although the primary aim is to share knowledge and upskill TP customers, the output for each customer team will be real product concepts which the companies involved might actually take to market.
A: This is an example of a training which we are doing with TP. First we will share some best practices and then we will work with invited TP customers from around the world to develop product concepts based on the Healthy Marketing Team tools and approach. Although the primary aim is to share knowledge and upskill TP customers, the output for each customer team will be real product concepts which the companies involved might actually take to market.
