"Consumer Revolution" - the 2008 Marketing Conference held yesterday at Harvard Business School - examined how companies are responding to changes in consumer behavior through social media and social responsibility. The discussions led by marketing executives for General Mills, Frito-Lay, and Deloitte Consulting are particularly important to the food industry. Social media is having a major impact on how the industry giants are developing products, interacting with people, and allocating (incredibly vast) marketing resources.
In the keynote Mark Addicks, Senior Vice President and Chief Marketing Officer for General Mills, discussed his approach to utilizing new media to build and manage successful brands. Number one is familiar -- know your brand champion. New media gives companies critical information on how this person speaks, relates with others, appears and sounds, and what troubles and inspires him. Addicks believes it is essential to know everything conceivable about "brand champions," and even give them an "identity" with a name and a face to encourage clarity and focus.
For example GM's "Fruit by the Foot" was developed for "Josh," an eight-year old straddling the worlds of childhood and adolescence. During a video-taped interview of an eight-year old and his mother, a boy dutifully agrees that eating more fruit is good for him. As his mother starts talking, the boy begins playing with an elastic band, stretching it around his ear and his knee, ignoring his mother, and goofing off. With insights into this duality -- maturity and mischief, GM developed this video, bringing to life how "Fruit by the Foot" might actually excite and inspire "Josh."
Rather than marketing to consumers, GM builds membership for their brands by bringing together people who are passionate about causes and the channels and capabilities they need to convey their message. GM's Box Tops for Education has raised over $250 million for American schools, and relies on Box Tops Coordinators -- parents, teachers, and members of the community who are passionate about its mission.
On the panel "Marketing Your Socially Responsible Initiative" Scott Bearse of Deloitte Consulting discussed a sustainability study Deloitte is conducting on behalf of the Grocery Manufacturer's Association. The study was commissioned by eleven top retailers and concludes that (a) baby boomers are the most influenced by sustainability initiatives; and (b) while sustainability is not a primary purchase driver for the majority of consumers, when all things are equal (price, quality), it gives a decisive competitive advantage; and (c) sustainability is a "sticky" concept -- once a consumer commits to a brand for its sustainability initiatives, he is likely to stick with the brand.
According to Jaya Kumar, Chief Marketing Officer for Frito-Lay, sustainability is critical to the transformation of the Frito-Lay brand. Widely associated with junk food, Frito-Lay's vision is to become the leader in healthy snack foods ("guiltless snacking"), conservation, and preservation. The company's marketing strategy is to put the consumers in control of participative, playable, and purposeful discourse about the products. In its Snack Strong Productions campaign, the consumer is no longer the "target," but a participant in the brand. The company's Crash the Superbowl entices consumers to create advertisements for Doritos by offering a one million dollar reward and the opportunity to have the advertisement aired during the Super Bowl to the winning entry. People have responded with creative, professional ads that encapsulate the brand far more effectively than the company could have done on its own.
In addition to participative and playable, Frito-Lay wants its brand associated with a serious purpose -- developing healthful snacks sustainably. The company utilizes solar power in the production and manufacturing of SunChips, and plans to introduce the first biodegradable chip bag into the market by Earth Day 2010.
The lessons food businesses of any size can learn from this conference:
(1) New media allows companies to learn more about people than ever before. It is essential to find out who your best customers are, what they care about, what they are complaining about, and how you can help them.
(2) Social responsibility is essential to the strength of your brand. Decide on an initiative that is connected with your company's mission, build or find a community surrounding that mission, encourage communication and invite action to support the mission, and champion the people who participate.