Baking & Snack - April 2019 - 46

BRAND LOYALTY

ond for retail sales behind the US, generating more than
$1 billion in 2017), the campaign is now active in more
than 20 countries.
Food companies have to engage online because
e-commerce is not slowing down. In a research project
with the Food Marketing Institute, Nielsen found that
more than 70% of Americans will buy groceries online
within the next decade. During that timeframe, the research projects that 60% of Americans will do more than
a quarter of their food spending online.

Experience over everything
Consumers are looking for new solutions to their everyday shopping needs, according to Darren Seifer, food
and beverage industry analyst with NPD Group. He said
those alternatives are similar whether in-store or online.
Looking at other industries like electronics, Mr. Seifer
explained that consumers are using multiple sources to
get what they need. One of the best examples is the electronics retail giant Best Buy.
"Best Buy just used to be a place where you would
buy electronics, but now when you look at what they
have in the stores, it's more centered around experience
and showrooming and providing services like the Geek

Squad," Mr. Seifer said. "We should expect to see some
of that coming into food and beverage as well as more
and more consumers are starting to shop online."
As grocery stores and c-stores look to make the shift
to experience, they should examine how consumers'
shopping habits are changing. He said consumers today
are going to stores less with long lists of basics and more
often with short-term meal ideas, and they need easy
ways to complete those meals. "Brands that have repositioned themselves to be part of a solution are poised to
gain the most from this trend," Mr. Seifer said.
For example, bread is almost never eaten alone but
paired with other categories for its consumption. When
consumers think of a piece of toast or a sandwich,
thoughts of a brand often follow, Mr. Seifer explained.
In stores, that might mean positioning bread in a display
case or special section near cold cuts and condiments to
provide easy solutions for families to make sandwiches
throughout the week.
Mr. Seifer said meal kits will also grow in popularity,
but NPD Group predicts they will likely see the most
expansion in grocery stores rather than online delivery
services. He said in-store meal kits provide a chance for
the consumer to find a last-minute option for dinner. In-

Share it, and they will follow

46 Baking & Snack April 2019 / www.bakingandsnack.com

Social media offers numerous ways to connect with consumers in nontraditional ways.
personal relationships with brands.
"Understanding the context of
consumer interests and providing
a point of view within that context
creates value to the consumer that
should be rewarded with brand
loyalty," he said.
As consumers adapt their media
habits based on individualized
preferences, personalization is the
new expectation. "At Pinterest,

we capture honest intent signals
via search queries, saved pins
and board titles," he said. "These
signals enable our algorithm to
understand an individual's unique
taste and deliver content that is
personalized."
Finding ways to share experiences with the masses fosters better
engagement online between brands
and consumers, driving loyalty.

©Tierney - stock.adobe.com

Consumers have more brand choices than ever. Internet retailers have
removed traditional barriers to entry
such as distribution fees, national
sales teams or large R&D and media
budgets. But with greater choice
comes an increasingly loud media
environment competing for a finite
amount of consumer attention.
"Brand marketers need to be
aware that consumer attention is
a precious resource, and no longer does the 'loudest' brand voice
necessarily break through," said
Arthur Sevilla, vertical strategy lead
at Pinterest. "Understanding when a
brand has the right to grab consumers attention is the foundation of the
next marketing playbook."
An emotional connection is often
needed, he added, and one of
the best ways to establish that is
through social media. Mr. Sevilla
said Pinterest and other sites create

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