FoodMinds Psychology GFV Dallas · • Food values are comprised of interrelated social, political, regulatory, agricultural, and technological factors that are changing the way food

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Agenda

• Introduction

• Psychological Test

• Core Psychological Principle

• Tools & Approaches

• Food Values Reframing the Psychology of Food

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FoodMinds:

Mission and Approach

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Guinea pig

Kit Kat

Deer

India

Audi

Avocado

Budweiser

Ford

Bear

Dog

Kitchen

Sam Adams

Snickers

Orange

Miller Lite

Grapes

Buffalo

Saturn

Volvo

Cat

Twix

Birds

Hershey’s

Apple

Tulip

Squirrel

Chevy

Coors

What we won’t be talking about

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Ulric Neisser Martin Fishbein

Sigmund Freud BF Skinner

But, psychology is foundational to marketing

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Jennifer Aaker Jagdish Sheth

Martin ZaltmanRichard Wirthlin

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Guinea pig

Kit Kat

Deer

India

Audi

Avocado

Budweiser

Ford

Kitchen

Bear

Dog

Sam Adams

Snickers

Orange

Miller Lite

Grapes

Buffalo

Volvo

Cat

Saturn

Twix

Birds

Hershey’s

Apple

Squirrel

Chevy

Coors

Tulip

Core marketing principle, based in psychology

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Brand owners

Brand map

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Journey, experience map

Consumer Target

Explore Discover Mobile Service Personalization Transaction Advocacy

• Demos• Lifestage• Shopping

behaviors• Media

behaviors• Category

motivations

• Sources• Channels• WOM• Search

strategies

• Competitive set

• Information requested

• Decision making criteria

• Role of mobile smart phone technology in search and purchase process

• Company ownedtouchpoints and tools

• Customer help lines

• Web sites• Social• Retail channel

partners

• Content and programming

• Events• Ads• Coupons• Promotions

• Retail channel partnerships

• Relevant, associated content

• Contests• Social media

following

• Facilitatesocial sharing

• Encouraging word of mouth

Engagement

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UX is on-going commsR&D

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Where & When UX Conducted in Development Process

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How User Research is Used

UX has multiple benefits

UX has multiple utilities

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UX Research is Conducted on:

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Decision motivation research

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Measuring reach, relevance and relationships of ideas

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Dinner, on the table, that everybody loves

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F&V Intake and Chronic Disease Risk Research (7.6%)

F&V Intake and Chronic/Acute Disease Prevention (5.1%)

Research on Beneficial Compounds Found in F&V (3.6%)

Eating Patters/Fad Diets & Weight Loss (8.3%)

F&V Intake and Cancer Prevention (3.1%)

Descriptive Labeling for F&V (1.3%)

CDC Report on F&V Intake in US (1.5%)

School Initiatives to Improve F&V Intake (12%)

Research, Government Funding and Initiativesto Promote F&V Production/Intake(11%)

Community Efforts to Promote F&V Consumption (5.5%)

Australian Try for 5 Campaign (1.7%)

Federal Food Assistance & Food Deserts (4.4%)

N = 1,354 stories

Ideamap

The Changing Psychology of Food Marketing

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• How Food Values are Affecting Marketing Content and Consumer Decisions

• The role of consumer psychology and values in evolving food choices and behaviors, and explore how today’s food marketers are leveraging insights from consumer beliefs and behaviors to drive relevant food innovation and communication.

Food brands have always been multi-factorial . . .

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Hypothesis:

Global Food Values™ Project

• Taste, price and convenience are no longer the sole or even primary drivers of food choice.

• Market signals and structural changes suggest a wide range of different food values are now having a significant impact on the availability and selection of foods and beverages.

• Food values are comprised of interrelated social, political, regulatory, agricultural, and technological factors that are changing the way food is produced, distributed, marketed, regulated, sold and consumed.

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Food Values Project™ FoodMinds

Food Values Factor Analysis™

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#FoodValuesProject

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DriversSignalsTesting the HypothesisApplying Learnings

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FoodMinds Global Food Values Project™

Drivers of food values

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é é é

é

é Trend based on historical development between 1990 and 2010 of total disability adjusted life years lost (Global Burden of Disease)

1 In 2014 dollars at purchasing power paritySource: Literature review: World Health Organization global burden of disease (GBD) database; McKinsey Global Institute analysis

Prevalence of obesity has a massive financial and societal cost

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Climate change is impacting the food supply Rome, July 2017

FAO STRATEGY ON CLIMATE CHANGE

23 July 2015

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NATIONAL SECURITY IMPLICATIONS OF CLIMATE-RELATED RISKS AND A CHANGING CLIMATE

This report responds to the Congressional request to the Department of Defense to identify the most serious and likely climate-related security risks for each Combatant Command, the ways in which the Combatant Commands are integrating mitigation of these risks into their planning processes, and a description of the resources required for an effective response.

Submitted in response to a request contained in Senate Report 113-211, accompanying H.R. 4870, the Department of Defense Appropriations Bill, 2015.

The estimated cost of this report or study for the Department of Defense is approximately $22,000 for the 2015 Fiscal Year. This includes $0 in expenses and $22,000 in DoD labor.

Generated on 2015May27 RefID: 8-6475571

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2.5 billion MORE people to feed by 2050

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Decline in global poverty GLOBAL MEDIAN INCOME

2003 $1,090 international2013 $2,010 international

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Atomizedmedia environment

Source - 2017 Top Trends in Fresh Foods, Atomization of PersonalizationIRI, FMI and Burris Logistics

On average, every minute of every day . . .

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Channel proliferation, consolidation, redefinition

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FoodMinds Global Food Values Project™

Signals of the presence of food values

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Deloitte’s measurement of food values

Source: Deloitte Food Value Equation Survey 2015, Deloitte Analysis

Consumer ValueDriver Chart

Half of U.S. consumers claim they weigh evolving value drivers more than traditional value drivers

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Importance of Production RelatedFactors on Purchase Decisions

Ingredients, source, production methodsmatter to food consumers

Source: IFIC 2017 Food & Health SurveyProprietary and Confidential

Erosion in perceived role of personal responsibility

•In your opinion which of the following groups holds the PRIMARY responsibility for making sure the public makes the right food choices to stay healthy and avoid obesity?

37%63%

January 2010

52%48%

September 2016

IndividualsSociety (government, food companies, health care system, educational system)

Source: Food Temperance in America, 2010 and 2016.Proprietary and Confidential

Restrictive food policies and activist critics

Restricted AccessWarning Labels

TaxesRestricted MarketingActivist Pressures

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Fewer artificial food ingredients in global food innovation

Source: Mintel GNPD, November 2016.

Global Use of Selected Ingredient Groups, as a Percentof All New Product Introductions 2011 to 2015

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Food system approach in retail food brand stories

• We’re partnering with almond grower Richard Gemperle and dozens of farmers to support their transition from conventional to organic farmland

• Organics is more a soil-health program, focused on the ecosystem surrounding the tree, the almond

Source: Kashi Company Website, FoodMinds Customer Sustainability Interviews, 03.29.17

Corporate sustainability initiatives with impact throughout the value chain

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FoodMinds Global Food Values Project™

Testing the hypothesis with global experts

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Hypothesis: Global Food Values™ Survey

• Taste, price and convenience are no longer the sole or even primary drivers of food choice.

• Market signals and structural changes suggest a wide range of different food values are now having a significant impact on the availability and selection of foods and beverages.

• Food values are comprised of interrelated social, political, regulatory, agricultural, and technological factors that are changing the way food is produced, distributed, marketed, regulated, sold and consumed.

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UK

China

Mexico

Canada

India

SouthAfrica

Brazil

Columbia

Netherlands

Japan

FranceUSA Spain

SaudiArabia

N = 15

FoodMinds Global ExpertBench™ Qualitative Input To Hypothesis

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Exploratory Survey Development

• The FoodMinds Global Food Values Survey™ was developed based on the DELPHI method

• Completed questionnaire was then resubmitted to the 15 FoodMinds Global ExpertBench™ members with the following countries represented

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• India• South Africa

• Saudi Arabia• Spain• UK• USA

• Brazil• China• Colombia• Mexico

Very Highly Developed

Source: UNDP Human Development Report 2016

• Canada• France• Japan• Netherlands

Highly Developed Moderately Developed

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Food DistributionAnd Access

Food Content and Ingredient

Food Manufacturing and Retailing

Social Justice andFood Security

Personal/Psychological

Agriculture

Socio-demographic

Food Cooking/Preparation

Geography

Economy

Food Regulation And Policy

Food Labeling

Public Health

Environmental

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Food Values Factor Analysis™

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Food Values Factor Analysis™ Attributes

• Organic• Animal welfare (e.g., cage free, humane)• Antibiotics in animal agriculture• GMO/biotech enhanced crops

Agricultural Values• Farm labor practices• Farmers equity programs• Ethical trade & sourcing practices• Free/subsidized school meals

Social Justice Values

Economic Values• Food costs• Overall cost of living • Household incomes• Unemployment level

• Urban environment• Suburban environment• Rural environment• Region with progressive

food policy actions

• Expression of love for family, friends• Convenience, ease, time of preparation• Lack of interest/knowledge in cooking• Cooking over open fire (no clean burning

cooking stove)• Understanding of connection between food

and health

• Both parents in the workforce• Immigration• Families with children• Elderly population

Geographic Values

Socio-demographic Values

Food Prep Cooking Values

* Select attributes shown for example purposesProprietary and Confidential52

Food DistributionAnd Access

Food Content and Ingredient

Food Manufacturing and Retailing

Social Justice andFood Security

Personal/Psychological

Agriculture

Socio-demographic

Food Cooking/Preparation

Geography

Economy

Food Regulation And Policy

Food Labeling

Public Health

Environmental

REACHIMPACT

GlobalFoodValues

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Global Food Values Factors – Estimate % Of Population Impacted

0

10

20

30

40

50

60

Economic

Geographic

Cook/Food3 Prep

Socio3demographic

Agricultural

Food3Distribution/Access

Food3Manufacturing/Retail

Food3Content/Ingredient

Social3Justice/Food3Security

Food3Regulation/Policy

Food3Labeling

Public3Health

Environmental

Psychological3

Total (14 countries)

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Global Food Values Factors – Estimate % Of Population Impacted

0

10

20

30

40

50

60

Economic

Geographic

Cook/Food3 Prep

Socio3demographic

Agricultural

Food3Distribution/Access

Food3Manufacturing/Retail

Food3Content/Ingredient

Social3Justice/Food3Security

Food3Regulation/Policy

Food3Labeling

Public3Health

Environmental

Psychological3

Total (14 countries)

Primary Factors

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Global Food Values Factors – Differences in Estimated % Population Impacted

0

10

20

30

40

50

60

Economic

Geographic

Cook/Food3 Prep

Socio3demographic

Agricultural

Food3Distribution/Access

Food3Manufacturing/Retail

Food3Content/Ingredient

Social3Justice/Food3Security

Food3Regulation/Policy

Food3Labeling

Public3Health

Environmental

Psychological3

Differences

M Developed Countries

VH Developed Countries

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Once identified and ranked, Global Food Values Factors™ can be leveraged through the value chain

Inputs Producers Processor

FoodInfluencers

Industry Associations

Consumer

FoodAssistance

PublicHealth

FoodService

Schools, Institutions

Grocery

Digital Distribution

Food SystemsActivism

Mfgr.Marketer

Digital Media Environment

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Food brands have always been multifactorial

Food Values have a bigger role in the brand experience

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Thank you.Grant Prenticegprentice@foodminds.com

1 312 258 9500foodminds.com

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