Winning Strategies for Food and Drink Brand Loyalty: Effective consumer engagement, communication and innovation

Table of Contents

Executive Summary

• Defining brand loyalty
• Challenges to loyalty
• Building loyalty
• Case studies
• Industry survey
• Conclusions

Chapter 1 Defining brand loyalty

• Summary
• Introduction
• Defining brand loyalty
• The changing nature of loyalty
• Less loyal
• A relationship over time
• Big brands have the advantage
• Not just about hunger
• Measuring loyalty
• A range of approaches
  • Tracking what consumers do
  • Asking what consumers think and do
  • Adding in brand emotion
• Linking to financial performance
• Measuring for real benefit

Chapter 2 Challenges to loyalty

• Summary
• Introduction
• Driven by desire
• Consumer cynicism
• Too much choice
  • Less time
  • Less attention
  • Less belief
  • Less structure
• Nuisance ads
• Premiumization and price shopping
• Premiumization
• Price shopping
  • Promotional activity and price competition
• Private label
• Substitution
• Decision-making at the shelf

Chapter 3 Building loyalty

• Summary
• Introduction
• Getting the basics right
• Product innovation
• Defining your market
• Targeting
• Outsourcing innovation
• Inspiration
  • Mass DIY customization
  • Occasion-specific
• Packaging
• Not just the product
• Marketing innovation
• Portfolio management
• Brand strategy
  • Authenticity
  • Brand as identifier
  • Part of the popular culture
• Marketing to kids
• Other marketing actions
  • Communicating
  • Relationships
  • In the right place at the right time
  • Pricing and deals
• Building Loyalty Checklist

Chapter 4 Case studies

• Summary
• Introduction
• Case study 1: Procter & Gamble (P&G)
• Company Overview
• Goals & strategy
• Initiatives contributing to loyalty
  • Consumer focus
• Consumer insight
  • Word of mouth marketing
  • Innovation
  • Communicating
• Learnings to take away from P&G' s approach
• Case study 2: Innocent Drinks
• Company Overview
• Goals and strategy
• Initiatives contributing to loyalty
  • Branding
  • Communications
  • Product innovation
  • Distribution
• Learnings to take away from Innocent' s approach
• Summary

Chapter 5 Industry survey

• Summary
• Introduction
• Research methodology
• Key Findings
• Overview
• Demographics of loyalty
• Factors impacting loyalty
• The rise of premium private label
• Category differences
• Strategies for improved brand loyalty
• Survey summary

Chapter 6 Conclusions

• Summary
• Introduction
• The future of brand loyalty
• Key strategic recommendations
• Focus
• The fundamentals
• Be more than just another product
• Authenticity
• Better targeting
• Leveraging technology
• Currency
• Don' t count on it
• Appendix 1.
• Five-level Brand Leadership Model - January 20, 2006
  • Level 1 - Proprietary goods
  • Level 2 - Branded products
  • Level 3 - Positioned brands
  • Level 4 - Identity-building brands
  • Level 5 - Mythological brand
• Index

List of Figures

• Figure 1.1: High involvement purchase decisions weigh more heavily on consumers' minds
• Figure 1.2: Building loyalty at every encounter
• Figure 1.3: Loyalty graphically represented
• Figure 1.4: Increasing stakeholder value
• Figure 2.5: Consumers are confronted with too many choices
• Figure 2.6: Working hours stabilize, but "harriedness" grows
• Figure 2.7: Local brands grow in popularity
• Figure 2.8: Tremor' s Teen Panel
• Figure 2.9: Relative purchasing powering selected European states
• Figure 2.10: Growing income inequality in Europe
• Figure 2.11: What constitutes a premium product?
• Figure 2.12: Transparent offers most attractive
• Figure 2.13: Increasing share of private label
• Figure 2.14: In-store examples
• Figure 3.15: Most common obstacles to innovation
• Figure 3.16: Yoplait Essence Yogurt Drink and Purple Machine Superfood 100% Juice Smoothie from the Naked Juice Co.
• Figure 3.17: H2O Pia Flavor Infusion Naturally Flavored Water Beverage and Campbell' s Microwaveable Gravy
• Figure 3.18: Promoting the umbrella brand
• Figure 3.19: One model of brand leadership
• Figure 3.20: American Pie
• Figure 3.21: What makes it Fairtrade?
• Figure 3.22: Top European Fairtrade markets
• Figure 3.23: Ethical luxury
• Figure 3.24: Example kids branded website with game
• Figure 3.25: Tactics employed on kids' websites
• Figure 3.26: Creating a buzz
• Figure 3.27: A flood of groceries through Amazon
• Figure 4.28: The five phase Tremor Process
• Figure 4.29: Amplifying the message
• Figure 4.30: Connect & Develop successes
• Figure 4.31: Beinggirl.com (UK)
• Figure 4.32: Lesfilles.com (France)
• Figure 4.33: Mr. Clean Bathroom Explorer
• Figure 4.34: P&G' s Health Expressions
• Figure 4.35: Innocent Product Range in 2006
• Figure 4.36: The first Innocent ad
• Figure 4.37: Grass-covered vans (at Fruitstock)
• Figure 4.38: The Innocent blog
• Figure 4.39: Smoothies for kids
• Figure 4.40: Appealing to kids
• Figure 5.41: Level of consumer loyalty towards mainstream food and drinks brands now and in the next 5 years 150
• Figure 5.42: Loyalty of different consumer groups to mainstream food and drinks brands 151
• Figure 5.43: Increases in various factors and their impact on brand loyalty 152
• Figure 5.44: Changes in the level of loyalty towards different types of brands over the next 5 years 155
• Figure 5.45: Levels of consumer loyalty to brands in food and drinks categories 156
• Figure 5.46: Views on loyalty 157
• Figure 5.47: Respondents' definition of their marketing strategies towards their brands 158
• Figure 5.48: Strategies to promote consumer loyalty 159
• Figure 6.49: Duchy Originals trades on its heraldry 172
• Figure 6.50: Putting it together 173

List of Tables

• Table 1.1: Long-lived brands
• Table 1.2: Behavioral & attitudinal approaches assessed
• Table 2.3: Examples of evolving private label
• Table 2.4: The value of eating out in foodservice channels (profit sector), by country (US$ billions), 2004-2009
• Table 3.5: Shift in thinking
• Table 3.6: Number of annual in-home and out-of-home breakfast, lunch and dinner occasions, country (billions), 2003-2008
• Table 5.7: Most effective at retailing customer loyalty