Building An FMCG Social Brand 2012

BUILDING AN FMCG SOCIAL BRAND

WhAt yOU NeeD tO kNOW AS yOU pLAN FOR 2013/14

20 CASe StUDIeS

14 vItAL qUeStIONS tO ASk yOUR BUSINeSS

39 FMCG BRANDS BeNChMARkeD

21 tReNDS IDeNtIFIeD

By Steve Sponder – Head of Agency | Headstreamand Tom Chapman – Business Development Director | Headstream

W W W . h e A D S t R e A M . C O M | F e B R U A R y 2 0 1 3

CONteNtS

Executive Summary

FMCG sector background

FMCG sector – Social Brands 100 insights

FMCG sector – Current challenges and case studies

FMCG sector – Future of social media

Conclusion and getting started

How can Headstream help?

Sources

3

5

7

13

24

28

29

31

C O N t e N t S

W W W . h e A D S t R e A M . C O M

p A G e 2

1 • ExEcutivE Summary

This white paper has been created by Headstream to assist FMCG sector marketers as they plan their strategies and budgets for 2013/14. It provides timely information, case studies, insights, trend predictions, and practical advice to assist FMCG brands as they consider how social media can support their business goals.

The paper has five main sections:

• an overview of the broader backdrop within the FMCG sector,

• what we can learn about the current social media performance of FMCG brands from Headstream’s 2012 Social Brands 100 ranking,

• current consumer behaviour and case studies illustrating how FMCG brands are responding to the challenges and opportunities presented by social media,

• five future trends that the FMCG sector should be aware of and planning for, and

• conclusions and how to ‘Get Started’ with the planning process.

Look out for our ‘Key Questions’ sections throughout. These summarise the questions marketing teams should pose as they integrate social into their strategy, and how Headstream can help.

The summary below identifies the key findings and insights from the white paper.

• FMCG businesses have emerged relatively well from the global downturn particularly those brands that have long-term heritage

• The adoption of consumer technology is a significant trend that will fundamentally change the relationship between FMCG brands and consumers

• Consumers globally are increasingly turning to the Internet, and peer-to-peer recommendation on social networks, to inform purchase decisions

• FMCG brands should look to increase the rate of conversation with followers on Twitter, and to encourage fans to co-create content with them on Facebook

• The customer journey has moved on from the traditional, linear ‘funnel model’, to a more complex ‘customer decision journey’ where consumers are influenced by multiple touch points. Digital, and particularly social media, has driven this change

E x E c u t i v E S u m m a r y


p A G e 3

the adoption of consumer technology is a significant trend that will fundamentally change the relationship between FMCG brands and consumers

• More frequently FMCG brands are merging digital and physical spaces to achieve visibility amongst potential consumers

• Sales coupons and promotions have a very high rate of participation as people like to feel that they are getting something for nothing

• Employing random acts of kindness provides an opportunity to get closer to prospective or existing customer(s), in hope of achieving earned media by tapping into their social/interest networks

• Consumers are scrutinising the value of brands based on the social good they do in the world

• Traditional FMCG activities like sampling and endorsements can be super-charged into content co-creation, gifting, and peer-to-peer acts of kindness

E x E c u t i v E S u m m a r y


p A G e 4

2 • FmcG SEctor backGround

While the FMCG food and drink sector has fared relatively well during the global economic downturn of the last four years, the recession has prompted significant changes in behaviour amongst consumers.

As austerity continues consumers have become very price conscious and promotions are now expected. Similarly, the decline in trust in institutions and ‘big corporations’ has provided opportunities for brands with long-term heritage to appeal to consumers’ need for reassurance and comfort. These same motivations have seen impulse-buy treats perform well as consumers seek relief from the gloomy environment, while perceived luxury goods e.g. bottled water have seen sales decline according to Euromonitor International.

Looking ahead, industry trade body the Consumer Goods Forum identified the factors that will affect the FMCG industry in the years up to 2020 in its ‘Future Value Chain 2020’ report. Amongst these the most relevant are:

Mass urbanisation: More than half of the world’s population now lives in cities. By 2050 this figure will balloon to 70% meaning FMCG and retail industries will have to respond.

Ageing population: By 2047 people over 60 will outnumber those under 15. How does the industry respond to this older population?

Sustainability: By 2030 the world’s population will reach 8.3 billion, boosting demand for food and energy by 50% and fresh water by 30%. FMCG companies will have to respond to this by adopting sustainable practices and demonstrating this to consumers.

Increased impact of consumer technology adoption: This will affect consumers’ own behaviour, while at the same time providing the ability to influence the buying behaviour of other consumers as the use of social and digital media continues to spread.

Increase in consumer service demands: will define new service models, offered via the Internet, that move beyond selling individual products and bring different types of solutions to consumers and shoppers.

F M C G S e C t O R B A C k G R O U N D


p A G e 5

“Companies that serve tomorrow’s consumers will need to build more sustainable businesses and drive brand value and sales through greater engagement with increasingly sophisticated and tech-savvy consumers.”

These trends emphasise the need for FMCG companies to continuously innovate to best adapt to change at global, local and personal levels.

As Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said in June 2012: “Companies that serve tomorrow’s consumers will need to build more sustainable businesses and drive brand value and sales through greater engagement with increasingly sophisticated and tech-savvy consumers.”

F M C G S e C t O R B A C k G R O U N D


p A G e 6

3 • FmcG SEctor – Social brandS 100 inSiGhtS

In order to understand how FMCG brands are currently performing in social media relative to other sectors, we have taken an in-depth look into the performance of FMCG brands in Headstream’s Social Brands 100 report.

Social Brands 100 (SB100) is a global ranking of those brands that are leading the way in social media. Brands do not pay, or apply, to be considered in the ranking. The only way to participate is through a crowd-sourced nomination process on Twitter that establishes a long-list of brands. Analysing the intensity of interactions between these brands and individuals on social and digital platforms, and giving each one a Data Score establishes a shortlist of 100 brands. The final ranking from one to one hundred is then established by adding a score for each brand from an expert panel of judges.

The sectors featuring in the SB100 are: Automotive, Charity, Entertainment, Fashion & Beauty, Financial Services, FMCG, Manufactured Goods, Media, Retail, Services, Technology, Telecoms, Travel & Leisure.

The following section outlines FMCGs sub-sector’s performance by aggregating the Data Score from the 38 FMCG brands that were nominated for the long-list (including the 14 brands that went forward to appear in the final Social Brands 100).

SB100 RANkeD FMCG BRANDS

There was a strong representation from FMCG brands in this year’s Social Brands 100. The nominated FMCG brands were: Aunt Bessies, Bombardier Beer, Bray’s Cottage Pork Pies, Breckland Orchard, Burts Chips, Cadbury, Castello Cheese UK, Cravendale, Divine Chocolate, Doritos, Douwe Egberts, Ella’s Kitchen, Fox’s Biscuits, Gower Cottage Brownies, Greenbaby, Hansa Pilsener, Heineken, Holywell Spring, Innocent, Life Lock, Lurpak, Lush Cosmetics, Marmite, MaxiRAW, Muddy Boots Real Foods, Oral B, Orchard Pig, Origin Coffee, Red Bull, Relentless Energy Drink, Ribena, Snickers, Starbucks, Tetley, The Collective NZ, Tropicana, Vibe Energy Gum, Virtuous Bread, Walkers Crisps.

F m c G S E c t o r – S o c i a l b r a n d S 1 0 0 i n S i G h t S


p A G e 7

For the full SB100 report:www.socialbrands100.com

Of these, fourteen were ranked in the overall top 100:

Innocent (#1)Cadbury (#7)Lurpak (#13)Red Bull (#13)Cravendale (#19)Tetley (#24)Marmite (#34)Muddy Boots Real Foods (#53)The Collective NZ (#57)MaxiRAW (#68)Walkers Crisps (#89)Oral B (#92)Ribena (#96)Tropicana (#98)

The Social Brands 100 analysed the social performance of over 300 brands in the period from January to March 2012. The full methodology can be found here and the report can be downloaded here.



p A G e 8

FACeBOOk

The FMCG sector came fourth of our thirteen sectors for overall Facebook performance, coming in behind the Services, Retail and Financial Services sectors.

Looking at the individual areas that make up the Facebook score FMCG brands are outperforming when it comes to responding to posts from fans, coming fourth out of thirteen for this metric. The star performers in this area were dairy business The Collective New Zealand, and MaxiRAW, which both appear in the overall SB100 top ten for this metric.

Another area of strength is the level of engagement FMCG brands are creating when they post content on their Facebook pages. Overall the FMCG brands came fifth out of thirteen sectors in this area. Again MaxiRAW was a particularly strong performer coming first on this metric and taking the position as top performing Facebook brand across the entire SB100.

Looking at areas for improvement, the data clearly shows that the number of posts made by fans, and the interaction from the community with fan posts, are the areas for improvement. The FMCG brands came eleventh out of thirteen for the volume of fan posts compared to brand posts, and in last place for the level of engagement from the rest of the community when a fan posts.

This indicates that community spirit measured by the propensity for peer to peer conversation to take place isn’t as strong as in other sectors. More active community management to bring fans together and encourage them to post content would help resolve this.

yOUtUBe

FMCG brands came sixth out of thirteen sectors for the effectiveness of their video content on YouTube. This sees them lagging behind sectors such as Technology, Automotive and Entertainment, and suggests FMCG brands can improve when it come to producing quality video content that generates views and interaction.



p A G e 9

tWItteR

FMCG brands have taken to Twitter effectively and came third amongst all sectors, behind the Services and Media sectors. This strong performance was built on a number one position for ‘All @brand mentions’ metric that assesses a brand’s success in spreading its @brand name via Twitter.

There were also above average performances for the Retweets and Timeliness of Response metrics where FMCG brands featured in fourth and fifth place amongst the thirteen sectors across the whole of the SB100 Twitter rankings.

Looking at areas for improvement, the data indicates that FMCG brands could increase their rate of response and conversation with those that engage with them on Twitter. For the metric that measures the frequency of conversation between the @brand account and followers FMCG brands came seventh out of thirteen.

The best performing FMCG brands on Twitter were Tetley and Oral B which came second and fourth in the overall SB100 Twitter rankings.

GOOGLe+

There were some stand-out performances on Google+ from the FMCG sector. Red Bull came first across the entire SB100 for its Google+ performance, beating Google itself into second place, and Cadbury featured in sixth place.

However, the overall performance was not as impressive with the aggregated score for all FMCG brands putting the sector at ninth place overall. This reflects the differing rates of adoption between the high performers and some brands that have used the platform lightly, if at all.

FOURSqUARe

The FMCG brands ranked in the SB100 have not adopted Foursquare.



p A G e 1 0

SUMMARy

Overall, the FMCG brands ranked sixth amongst our thirteen SB100 sectors, a slightly above average showing. So what is the recipe to improve social brand performance?

While each brand is individual in terms of its objectives and what constitutes a successful set of social media outputs, there are some general conclusions we can draw.

Facebook is an area of relative strength where high levels of engagement are being created with FMCG brands’ posts, and posts from fans are being acknowledged and responded to. Where FMCG brands could productively invest more time is in activities and content that encourage more posts from fans (co-creation) and a more vibrant spirit between fans.

On Twitter the content that is being created by brands is hitting the mark and providing value to followers. This is indicated by the above average retweet score, and number one position for the spread of @brand names across the Twitter platform. The area where FMCG brands can improve is in the frequency with which they respond to followers. There isn’t a single FMCG brand in the overall SB100 top ten for this ‘conversation rate’ metric, a clear opportunity for brands to differentiate themselves.

Google+ has provided significant reach and community interaction for brands like Red Bull and Cadbury, but other FMCG brands are not using the platform at all. This is a missed opportunity as the platform provides opportunities to access a more male and higher average income demographic than Facebook and Twitter, and to use features such as broadcast hangouts that can create high engagement and valuable content.



p A G e 1 1

the area where FMCG brands can improve is in the frequency with which they respond to followers.

key qUeStIONS

• How can you encourage Facebook fans to post their own content, and comment on one another’s posts?

. Are you community managing your Twitter followers proactively and conversing regularly?

. Does your content fit into a broader content strategy that is founded on business goals?

• Do you have monitoring in place to assess what content receives the highest level of interaction?

• What is your strategy for YouTube, how can video be a more effective part of your content strategy?

• Are you able to benchmark social performance regularly and use this knowledge to optimise activity?

hOW heADStReAM CAN heLp

• Providing regular social media performance benchmarking using the Social Brands 100 methodology

• Audits and social analytics

• Content, channel and community strategies and execution



p A G e 1 2

?

!

4 • FmcG SEctor – currEnt challEnGES and caSE StudiES

To put the current challenges for FMCG brands in context we have examined two areas:

• the changes in the way that consumers make buying decisions, created by the influence of the social web, and,

• the trends and case studies demonstrating current best practice, and an effective response to these changes.

hOW FMCG BRANDS ARe evOLvING tO USe SOCIAL MeDIA WIthIN the CONSUMeR DeCISION jOURNey

In classic marketing, the customer acquisition process is thought of as a purchase funnel. Cold prospects are dumped at the top of the funnel through awareness campaigns and squeezed down via qualifying actions e.g. product brochures, sales calls, product demonstrations, and emails. Those prospects that were hot for your product went on to purchase, becoming a customer and then added to the CRM database. If the process was successful, marketers placed it on a rinse and repeat cycle. It was relatively straightforward.

Unfortunately, the purchase funnel no longer applies. In today’s world, media fragmentation and the proliferation of digital has resulted in an increase in the number of brands under consideration for consumers. As a result, the entire purchasing cycle has shifted. To respond to this shift, the funnel has been replaced by what McKinsey has termed the ‘consumer decision journey’.

F m c G S E c t o r – c u r r E n t c h a l l E n G E S a n d c a S E S t u d i E S


p A G e 1 3

In today’s world, media fragmentation and the proliferation of digital has resulted in an increase in the number of brands under consideration for consumers.

Source: Consumer Decision Journey. McKinsey Solution 2010.

AWAReNeSS

FAMILIARIty

CONSIDeRAtION

pURChASe

LOyALty

theN: the pURChASe FUNNeL NOW: the CONSUMeR DeCISION jOURNey

evALUAte

COMMIt

ExPEriEncE

INteReSttRIGGeR

DeCISION tRIGGeR

CONS

IDeR BUy

The consumer decision journey as illustrated on page 13 is largely influenced by digital – more specifically the social web – underpinned by social media. Social media has fundamentally affected the FMCG purchasing landscape and buying behaviour as consumers look toward reviews and recommendations rather than a brand’s own messages.

In response to these changes, successful FMCG brands have re-aligned their marketing to adapt to the new consumer decision journey. Brands are frequently using social media to create more targeted and contextualised experiences when consumers are researching FMCG products and services, not only to remain competitive in the marketplace, but also to ensure they are delivering the right experiences at the right time for consumers.

We have examined the social media marketing communication activity of FMCG brands globally over the past 12 months.

To provide structure to the FMCG social media activity explored, we have segmented the examples featured into three key phases of the consumer decision journey:

• Initial consideration – Trigger

• Active evaluation – Information gathering, shopping and buying

• Post purchase experience and advocacy



p A G e 1 4

initial conSidEration – triGGEr

Social media plays an important role in the initial consideration stage when it comes to the purchase of products for food and beverage brands. At this stage marketers have an opportunity to deliver value in the form of information, and entertainment. The purpose of valuable content or ‘social currency’ during this phase is to generate earned media for a brand, achieving cut through in a crowded marketplace, thus reaching as wide an audience as possible.

ExPEriEntial mEEtS Social

More frequently FMCG brands are merging the digital and physical spaces to achieve visibility amongst potential consumers. Through experiential activity, brands have created opportunities for engagement and interactivity by facilitating an experience that is both personable and shareable across social media, helping to boost the potential of earned media.

• Extending the functionality of a standard food vending machine, Unilever developed the ‘smile-activated’ (http://youtu.be/V5bs_pIFuto) vending machine that dispensed free ice cream in exchange for smiles. The hacked machine featured a camera with motion/gesture control and LCD screen which mirrored exactly what was placed in front of the camera. When a passerby was drawn to the machine, the camera detects a face and prompts the person for a big smile. The custom developed ‘smile-o-meter’ measured the grin and if the smile was satisfactory the consumer would receive a free ice cream. A photo of the person smiling was taken by the machine and with permission could then be uploaded and shared via 3G to Facebook.

• In support of its Olympic 2012 sponsorship, Cadbury (http://www.cadbury.co.uk) created ‘Cadbury House’ located in London’s Hyde Park. Upon entering, guests were given an RFID-enabled ID badge linked directly to their personal Facebook account. Once in the exhibit, users could ‘check-in’ on Facebook by placing their badge next to a RFID scanner. Photos could also be posted directly to Facebook using the RFID badge. Cadbury’s social media channels experienced sharp growth over the 17 days of the Olympic Games with its Facebook page experiencing a 20% lift in 17 days adding an additional 35,000 followers.



p A G e 1 5

CASe

StU

DIeS

More frequently FMCG brands are merging the digital and physical spaces to achieve visibility amongst potential consumers.

SOCIAL vIDeO

In the UK, increasing investment in video and social media is credited with helping FMCG brands to shift focus from direct response activity. In the US, marketing spend on digital video increased 42% from 2010 to 2011 and in the UK it grew by 100% over the past year, (in the UK, marketers now spend more online than they do on TV).

• Milk brand Cravendale (http://www.milkmatters.co.uk) produced a TV spot (http://www.youtube.com/watch?v=h6CcxJQq1x8) showing what happens in a world where cats are passionate about milk. Especially when in the world in which cats evolve opposable thumbs! The spot which was seeded on YouTube achieved over 6.5 million views and helped establish Cravendale as the UK’s #1 branded milk.

• Memetic advertising from brands is becoming increasingly popular. Smart Water (https://www.facebook.com/smartwater) in the US produced a TV spot featuring celebrity Jennifer Aniston referencing famous memes such as double rainbow and dancing babies. Immediately after its release the video hit 100,000 views and went viral itself. Vitamin water (https://www.facebook.com/vitaminwater) also embraced internet culture within their ad by leveraging Internet memes (http://www.youtube.com/watch?v=DRQFJF6OV4g). The video paid homage to the ‘Nyan cat’, ‘sexy sax guy’ and ‘Filipino inmates’ dancing to Michael Jackson, achieving 500,000+ views on YouTube.

• Beer brand Fosters (http://www.fostersbeer.com) has long been associated with comedy including its TV spots and sponsorship of live comedy events. On its fostersfunny.co.uk (http://fostersfunny.co.uk) website, the brand released a series of web only video clips from comedians such as Steve Coogan as Alan Partridge, and sketches from classic British comedy series The Fast Show. The videos themselves were shared on YouTube and became a trending topic on Twitter as each new video was released.



p A G e 1 6

CASe

StU

DIeS

StORyteLLING ACROSS SOCIAL MeDIA

Today it isn’t possible for brands to simply curate or aggregate content and expect consumers to immediately advocate products and services. Branded content will only be successful if it is used to tell a broader and coherent story, it is made clear why the story matters, and it is distributed correctly. Storytelling as a discipline has become increasingly popular for brands as a way to co-create content that is based on real experience rather than fabricated ones.

• Wholefoods have a dedicated blog for storytelling (http://www.wholefoodsmarket.com/blog/whole-story) featuring stories on sustainability, organic and urban farming told by the experts who are part of the company’s supply chain. In addition Whole Foods launched branded content initiatives via a dedicated YouTube account (http://www.youtube.com/user/WholeFoodsMarket) featuring insightful stories from people who share their personal accounts of sustainable, organic and urban farming. This content is then used to tap into communities with shared interests.

activE Evaluation – inFormation GathErinG, ShoPPinG and buyinG

Consumer-driven marketing (e.g. Internet reviews, word-of-mouth, recommendations from friends and family, in-store interactions and recollections of past experiences) at the active evaluation stage is now more important than ever. Consumers have increased control of this process, actively ‘pulling’ and pushing content in the form of information to help themselves and others in the decision making process.

To ensure food and beverage brands do not miss out, marketers are looking to influence the consumer-driven touch points by joining the conversation at the right moment, and/or facilitating conversations by listening to questions and providing contextually relevant information to influencers.



p A G e 1 7

CASe

StU

DIeS

SOCIAL COUpONS & pROMOtIONS (FAN BAIt)

Sales coupons and promotions have a very high rate of participation as people like to feel that they are getting something for nothing. US market research company Chadwick Martin Bailey have found that one in four consumers say that their main reason for becoming fans of food and beverage brands on Facebook is for vouchers.

Both coupons and promotions can easily generate excitement amongst both new and existing customers. Marketers are using Facebook brand pages as a repository for coupons and promotions which can be exchanged for ‘likes’ or ‘shares’.

• In an exchange for likes, Mentos (https://www.facebook.com/MentosUS) produced a bespoke ‘free Mentos’ tab whereby users could print off a coupon to redeem a free pack.

SOCIAL SAMpLING

Brands are using the social and sharing nature of the web to their advantage. As opposed to transferring a sampling campaign online and hoping for interaction, social media provides a platform to connect with customers, facilitating connections and conversations boosting earned media potential.

• Starbucks invited its fans to share 280,000 free pints of Starbucks ice cream (http://www.starbucksicecream.com) via its bespoke Facebook app. Through the application fans had the opportunity to surprise and delight their friends and family with free ice cream, simply through data entry and capture and social sharing.

• Starburst via its Facebook page (https://www.facebook.com/Starburst) announced their new Starburst Morph confectionary, providing free samples to the first four thousand fans who requested the samples.

FACeBOOk COMMeRCe (F-COMMeRCe)

The Facebook platform has allowed brands to move away from replicating existing commerce experiences, to building experiences that take advantage of the community and the social sharing functionality on the site.

• Rather than replicate a traditional web store on the Facebook platform, Heinz Tomato Ketchup (http://www.facebook.com/HeinzKetchup) used the site to generate earned media and advocacy for its Balsamic Vinegar ketchup. An initial run of 3,000 bottles were sold exclusively through Facebook to build excitement around the launch. The Facebook community therefore had exclusive access to trial the product before it was available in store.



p A G e 1 8

CASe

StU

DIeS

CASe

StU

DIeS

CASe

StU

DIeS

Sales coupons and promotions have a very high rate of participation as people like to feel that they are getting something for nothing.

SOCIAL ADveRtISING

Savvy marketers are using social ads on both Facebook and Twitter platforms to highlight brand content in an attempt to boost earned media around a product campaign.

• Cadbury were amongst the first to use a Promoted Trend in relation to the Olympics in the UK. It ran a Promoted Trend 100 days out from the event, promoting its Olympics advent calendar. Cadbury claimed to have seen 10,000 people tweeting about it on that day.

SOCIAL BRANDeD eNteRtAINMeNt

Branded entertainment is simply communication that plays on people’s emotions. If the content provides value in the form of entertainment then it will generate conversations and earned media. For marketers the advantage of branded entertainment is that you do not need huge budgets to reach an audience of millions if the content delivers true value. Multi-channel branded entertainment that incorporates social media and engages an audience on a deeper level helps build a brand in the mind of the consumer.

• In support of the 2012 James Bond ‘Skyfall’ movie, Heineken created a piece of branded entertainment in the form of a Facebook application. ‘Crack the Case’ (https://www.facebook.com/heineken/app_448213661885294) invites aspiring 007s to step up and see what it takes to become a secret agent. Players connect through Facebook to receive a personalised experience as you journey through the game helping the central character to crack the case. The reward is not only a unique brand experience but video content that can be shared amongst personal social graph.

RANDOM ACtS OF kINDNeSS

Random acts of kindness is quite simply carrying out a selfless act that looks to assist or cheer up an individual or group of people. From a brand’s perspective, employing random acts of kindness provides an opportunity to get closer to prospective or existing customer(s), in hope of achieving earned media by tapping into their social/interest networks.

• Cadbury regularly issues bespoke chocolate bars and treats to charities and celebrities on Twitter who mention Cadbury, or chocolate. Many celebrities tweet pictures of themselves with the Cadbury bars that is followed up by a retweet and response from the official Cadbury Twitter feed (https://twitter.com/CadburyUK).



p A G e 1 9

CASe

StU

DIeS

CASe

StU

DIeS

CASe

StU

DIeS

INFLUeNCeR OUtReACh

One of the most popular forms of social media marketing is influencer outreach, which is essentially celebrity endorsement of a product. This tactic is akin to traditional PR but is effective in generating awareness i.e. short-term spikes in earned media for a piece of content and not in shifting behaviour.

• In what became a controversial campaign that was eventually cleared by the ASA, chocolate bar Snickers recruited a number of celebrities on Twitter to tweet out of character. One example is Manchester United Footballer Rio Ferdinand tweeting about the joys of knitting. This caused a huge surge in followers tweeting about his strange tweets. Several tweets later it was revealed to be a marketing ploy by Snickers, the celebrities then tweeted a picture of them with a Snickers bar, accompanied by the text ‘you are not yourself when you’re hungry’.

PoSt PurchaSE ExPEriEncE and advocacy

Once a product purchase has been made, the post purchase experience kicks in, and brands need to ensure they are supporting the consumer on a continuous journey. Following a purchase it is not uncommon for consumers to use social media such as forums and social networks to share and validate their recent purchases.

Savvy marketers are looking to join the conversation at this stage and providing an after-sales experience that inspires loyalty, repeat purchases and keeps competitor products/services at bay is key. This brand presence should not be limited to online, but consideration is given to blending the social web and physical world together to create new experiences.

ExcluSivE contEnt – auGmEntEd rEality and Social SharinG

Brands are increasingly using augmented reality to augment (overlay) real-world products with virtual experiences, as a way of bringing packaging to life in more exciting and engaging ways.

• Starbucks for Valentine’s Day produced heart print coffee cups. Customers who downloaded the Cup Magic iPhone app (http://www.starbucks.com/coffeehouse/mobile-apps/starbucks-cup-magic), and placed the cup within the phone’s vision, experienced the hearts coming to life with heart-shaped flower petals flying off of the cup. You could then send a video of the scene to your loved one directly via Facebook.



p A G e 2 0

CASe

StU

DIeS

CASe

StU

DIeS

ExcluSivE contEnt – Qr codES

FMCG brands are beginning to use QR codes on product packaging, creating more visual and interactive experiences for customers. The experiences delivered in the form of functional, educational or pure entertainment content are delivered simply through customers pointing their smartphone at the QR code.

• Salanova (http://www.salanova.com), a salad company from Holland, employed QR codes on their ‘Salafresh’ product, which is a potted salad lettuce that enables you to grow your own salad in the kitchen. When consumers scan the code, they are directed to a mobile-friendly version of the site where they can find recipes, inspiration and other salad information and tips.

rEward – advocacy

For FMCG brands, social networks and location based networks can be an inexpensive way to generate earned media about product or brand at a specific location, with the opportunity to identify and form closer relationships with loyal customers with rewards.

• For Starbucks, regular customers can ‘check-in’ using Foursquare. The person with the most check-ins at a particular store would earn the title of ‘Mayor’ and would be rewarded with free coffee at that store. Moving beyond monetary rewards, Starbucks provided rewards such as invitations to special events and exclusive digital content.

• Diet Coke rewarded its loyal fans by offering them the chance to receive a 30-second party to celebrate the brand’s 30th anniversary. People were invited to tweet @DietCokeUS and complete a task, such as completing a sentence. Winners were thrown a short party and received a year’s supply of Diet Coke.

RepUtAtION MANAGeMeNt

An online reputation management strategy is not just about managing negative comments and detractors within the online space, more importantly it forms part of strategic brand management. Monitoring, identifying, and influencing your online reputation within social space, can assist in developing new opportunities and brand/product insights.

• Kellogg’s ran a UK taste test panel with online site NetMums for its new ‘Choc ‘n’ Roll’ cereal. Following the online feedback on NetMums’ community forums, Greg Peterson, the MD of Kellogg’s worked with the forum to not only discuss their thoughts on ‘Choc ‘n’ Roll’ but also to gather feedback and answer questions on Kellogg’s cereal in general.



p A G e 2 1

CASe

StU

DIeS

CASe

StU

DIeS

CASe

StU

DIeS

SOCIAL GOOD

Consumers are scrutinising the value of brands based on the social good they do in the world. Successful brands currently doing social good are those who display authenticity with genuine intentions, forming part of their wider corporate social responsibility program. Consumers can see right through brands that do social good as a PR exercise in hope of a quick win, resulting in a reputation management issue.

• Innocent drinks partnered with National Trust for an on-pack promotion and social media campaign that aimed to increase the bee population. The ‘buy one get one bee’ initiative was a push to help reduce the disappearance of bees in the UK. Limited edition bottles helped introduce 2 million honeybees into Britain through its work. Alongside the promotion, Innocent provided The National Trust with beehives for 40 UK sites and new beekeeper kits.

CROWDSOURCINGCustomer loyalty is predominantly down to trust. To develop trust within relationships, the key is to be open and honest, which in business boils down to transparency.

Our networked world fuelled by social media has led to like minds connecting on topics of interest. For savvy FMCG marketers, tapping into the thoughts and knowledge of like-minded communities has helped with current and future product development. On some occasions this has delivered tremendous competitive advantage.

• Heineken partnered with global ideas and inspiration website ‘PSFK’ to set up the ‘Ideas Brewery’, an innovation competition encouraging readers around the world to reinvent their long-standing draught beer experience, packaging, sustainability and transportation. The brand established the ‘Ideas Brewery, a campaign set up to challenge the current norms within the industry’. All ideas submitted were voted upon by the community and finalists could win cash prizes as well as be invited to participate in an idea-enhancing workshop in Amsterdam. Through this initiative Heineken has the potential to use social to its fullest potential and create products and services that have been created by the community, for the community.



p A G e 2 2

CASe

StU

DIeS

CASe

StU

DIeS

SUMMARy

The complexity of the consumer decision journey forces brands to adopt new ways of marketing and this in turn will influence marketing expenditure.

Rather than focus purely on the awareness phase, consideration now needs to be given to the whole process, ensuring that everything from information gathering, to post-purchase experiences and support are of consideration.

For the food and beverages FMCG sector there is the benefit that consumers have many interactions with their products, and/or regularly are in proximity to the product when in store. The opportunity is available for savvy brands to stitch together the customer’s real world and digital world activities to increase purchase intent, loyalty and advocacy.

At the same time traditional FMCG activities like sampling and endorsements can be super-charged in to content co-creation, gifting, and peer-to-peer acts of kindness.

The success or failure of these kinds of initiatives is underpinned by content. To get the desired earned media (word of mouth) effects, the content must be valuable in the eyes of the community and therefore worthy of sharing.

key qUeStIONS• Does your social strategy deliver the right content, at the right time, in the right format for customers?

• Does your marketing provide value of different kinds to customers e.g. utility, monetary, exclusive information, rather than simply pushing messages?

• Do you monitor social media effectively, with the intention of joining conversations at appropriate times?

• Are you listening to your customers’ post-purchase conversations, and facilitating sharing and customer care where appropriate?

hOW heADStReAM CAN heLp• Content, channel and community strategy development

• Insights from social media monitoring

• Creative campaigns

• Community management

• Social media training to up-skill in house teams



p A G e 2 3

?

!

...traditional FMCG activities like sampling and endorsements can be super-charged in to content co-creation, gifting, and peer-to-peer acts of kindness.

5 • FmcG SEctor – thE FuturE oF Social mEdia

Research included in this white paper has highlighted recent social media activity executed within the context of food and beverage industries, working within the framework of the consumer decision journey.

As highlighted by the aforementioned analysis, the complexity of the consumer decision journey forces brands to adopt new ways of marketing and this in turn will influence marketing expenditure. Rather than focus purely on the awareness phase, consideration now needs to be given to the whole process, ensuring that everything from information gathering, to post-purchase experiences and support are of consideration.

AReAS FOR FURtheR StUDy AND CONSIDeRAtION

To further continue the evolution of social media within the food and beverage industries, and to create even greater value for brands, we at Headstream are looking into future social media developments. The following areas of research represent more promising possibilities:

ALWAyS ON MARketING:

Media fragmentation, connected consumers and the blurring lines between advertising and PR led Headstream to develop the Paid, Owned, Earned, Network and Borrowed media framework (http://blog.stevesponder.com/paid-owned-network-borrowed-and-earned-media). This framework allowed us to help plan our clients’ content distribution in order to generate earned media.

For brands to be relevant and influence the initial consideration and active evaluation stage of consumers, content itself can be planned in an ‘always-on’ strategy. As opposed to just focusing on the BIG idea, marketers should be looking to focus on the LONG idea. Consideration is given to taking the consumer on a longer journey of engagement and loyalty over time, this is achieved via valuable pieces of content that stitch together to form a more compelling campaign.

Coca-Cola is one brand that has restructured its internal marketing team to place content at the heart of everything they do. Their ‘Liquid and Linked’ 2020 vision for content focuses on liquid content that can be shared (frictionless), and linked content which is related to brand purpose. The brand’s 70/20/10 content plan leans on always-on.

F m c G S E c t o r – t h E F u t u r E o F S o c i a l m E d i a


p A G e 2 4

INteRACtIve teChNOLOGy:

We have already featured a few experiential examples of food and beverage brands’ use of multi-touch screen product displays and kiosks. Exciting developments are happening on a daily basis in the areas of touch, gesture recognition, voice, face detection, eye tracking, thought and smell.

All of these available interactions will have a profound impact on the way people interact with technology, so much so that in the not too-distant future, we will interact with technology in the same way we interact with each other – naturally.

Electronics giant Samsung in January 2012 demonstrated their new ‘Smart Glass’ technology (http://www.youtube.com/watch?v=m5rlTrdF5Cs). Smart Glass is a transparent touch screen glass which allows for digital content to be augmented directly on the glass. For food and beverage brands, this technology not only can be used to create more engaging vending machine experiences, but more creative consideration can be given to displaying user generated content such as customer reviews and sharing digital content to social networks.

AUDIO WAteRMARkING AND CONNeCteD tv:

The next generation of television known as ‘Connected TV’ leverage the web, delivering apps and surfacing web content.

Connected TVs offer brands a platform to develop applications such as branded entertainment and utility, allowing users to access content direct from the sofa in lean back mode. Branded content such as videos and games can now be enjoyed and shared via social networks on a larger screen rather than limited to mobile and tablet screens.

Red Bull is one beverage brand that has decided to package up sponsorship content in the form of a smart TV app ‘Red Bull TV’. The Red Bull TV channel delivers original programming and extreme sports coverage to smart TV owners, providing access to a wide variety of content.

In addition to developments such as connected TV, the second screen (mobile, tablet) used to complement the first screen (TV) already delivers new possibilities for marketers. Audio watermarking embedded within applications, for example Shazam (http://www.shazam.com) will allow viewers to receive content such as promotional discounts, exclusive invitations to VIP events etc... via audio triggers within the application.



p A G e 2 5

For the uninitiated, Shazam is a smart phone application that uses audio watermarking technology to serve up content. Shazam achieved its popularity back in 2010 as a music identification service for unfamiliar songs we were listening to. Users install the Shazam app on their mobile phone and by hitting the “tag now” button and holding the phone’s mic up to a speaker, the app will usually identify the song and provide artist information, as well as a link to purchase the album.

With more retail brands creating their own applications for mobile and tablets, incorporating audio watermarking means that users can unlock content e.g. promotions, coupons, entertainment, utility when using or viewing content on television, in-store and on tablet via the companion app and share this content amongst their social network.

General Mills in December 2011 rolled out an interactive TV campaign for its home baking brand Pilsbury incorporating Shazam. Tech savvy mums could ‘Shazam’ when the TV ad was aired, and receive recipes and additional content that could then be shared amongst their social network.

intErnEt oF thinGS – Social wEb oF thinGS:

The social web of things is a social network for things and services that you use in your daily life. Today we connect with our friends via social networks; in the future it is believed that physical products such as food and drink can and should connect with the Internet and our digital selves in the same way.

Moving a step toward the world of the Internet of Things, Evian in France introduced the ‘SmartDrop’, a web enabled 4-inch magnet that allows you to schedule deliveries of Evian bottled water. The device connects to your WiFi network to transfer orders directly from your fridge.



p A G e 2 6



p A G e 2 7

key qUeStIONS• How informed, and agile, is your social media team to respond to new opportunities?

• How does each marketing activity fit into a compelling ‘LONG idea’ for your brand?

• How are your digital world and real world customer experiences being coordinated to create a cohesive experience for the customer?

• Do you have a landscape of the relevant interest graphs for your brand?

hOW heADStReAM CAN heLp• Education and training to keep ahead of latest trends

• Content, channel and community strategy and execution

• Insights from social media monitoring

?

!

CONCLUSION

Social media has made every consumer a potential brand gatekeeper for the FMCG brands they experience every day. As a result positive customer reviews, endorsements and comments are becoming an increasingly important goal for FMCG marketers.

Generating this positive conversation around a brand requires significant investment in the relevant communities by the brand. This encompasses both time investment to maintain genuine dialogue, and investment in content to provide genuine value to consumers that they will care about, and are therefore more likely to share.

With increasing smart phone penetration leading means that more and more consumers are accessing views and reviews at the point of purchase. Those brands that can tailor their approach to offer value to the consumer, whether monetary, entertainment, information etc, at this crucial point of purchase will be able to gain a crucial over competitor brands.

GettING StARteD

To make the most of these opportunities brands should consider:

• making social media an integral and leading part of the marketing strategy, not an afterthought,

• co-ordinating social media strategy and activity across departments that may traditionally have been separate e.g. marketing, customer services, technology,

• introducing real-time social media monitoring,

• creating a 24/7 capability to social engagement via content creation and community management.

While these developments require significant time investment they will create a socially enabled retail organisation that is ready to face into the dynamic, highly informed and smart consumer of the social age.

Talk to HeadstreamTwitter: @headstreamWeb: www.headstream.com

C O N C L U S I O N A N D G e t t I N G S t A R t e D


p A G e 2 8

Generating this positive conversation around a brand requires significant investment in the relevant communities by the brand.

hOW CAN heADStReAM heLp?

Headstream is helping marketers across diverse sectors move beyond funnel-inspired push marketing towards engagement, and building win-win relationships with prospects and customers. We can help in the following ways:

pLANNINGWe can help you get your thinking straight and work out how you’ll prove ROI. This is valuable before embarking on any activity or developing your social media strategy

• audits and social analytics• insights from social media monitoring• content, channel and community strategy• influencer identification

ExEcutionWith seven years experience of rolling out successful social activity for national and global brands we know how to get cut through and build lasting communities:

• creative campaigns• influencer outreach• community management• content calendars

BeNChMARkINGUsing our leading Social Brands 100 methodology we can provide regular social media performance benchmarking against your key competitors. eDUCAtIONWe offer a broad range of training options, from simple best practice papers and briefing sessions to in-depth bespoke education programmes. We have experience of working with senior management on a 1to1 basis through to sales, marketing, customer service and HR teams.

h e A D S t R e A M


p A G e 2 9

ABOUt heADStReAM

Headstream is a specialist social agency and part of the Lawton Communications Group. For the past seven years we’ve been helping brands like Lush, Activision, and P&O Cruises become more successful by embedding social into their marketing communications. Headstream is also the agency behind the influential Social Brands 100 ranking of high performing social brands. Find out more at www.socialbrands100.com.

We BeLIeve

• Social is making marketing exciting again• Social brings brands closer to customers• Social should be simple• When we have fun with our clients, we do better work.

www.headstream.com, or follow us on Twitter @headstream

h e A D S t R e A M


p A G e 3 0

SOURCeS

http://www.psfk.com

http://wallblog.co.uk/2012/06/11/why-social-media-counts-when-it-comes-to-

fmcg-infographic

http://www.socialbakers.com/blog/527-finally-here-the-biggest-global-social-

media-report-on-facebook-industries

http://www.impinj.com/blog/author/jmcfarland

http://www.bizcommunity.com/Article/196/467/69214.html

http://sparksheet.com/the-human-side-of-brand-storytelling

http://www.squarecode.biz

http://www.theconsumergoodsforum.com/2-wwedo/2.2-

programmes/2.2.futurevaluechain.asp

the AUthORS

Steve Sponder – [email protected]

Tom Chapman – [email protected]

FOR MORe INFORMAtION

Andrea Catt

[email protected]

+44 (0)23 8082 8520

S O U R C e S | A U t h O R S | F O R M O R e I N F O R M A t I O N


p A G e 3 1

Building An FMCG Social Brand 2012

Business

fmcg industry

fmcg food

fmcg businesses

fmcg companies

fmcg social brand

fmcg sector marketers

consumers consumers

h e ads t r e