Millennials and the new value of shopper marketing

The Coca-Cola Company sponsors this blog post and leverages proprietary insights to create world-class shopper marketing activities designed to help retailers convert more shoppers into buyers.  Visit www.cokesolutions.com to learn more.

Digital media has changed the way and the speed in which people shop. Marketers must now provide consumers with a full buying experience both online and in-store, adding a new dimension to their jobs. In particular, understanding the purchasing habits of millennials, who were raised with online shopping as a part of daily life, can be a challenge since many younger consumers have different expectations and approaches to buying.

“They are omni-channel shoppers,” said Daren Sorenson, Director of Retail and Shopper Insights for the Coca-Cola Company’s North America Group. “Millennials enjoy shopping much more than previous generations and take joy out of simply browsing.”

In spite of the huge increase in choice brought by digital retail, the economic downturn has affected how millennials spend and what they buy. Value remains a major consideration for Millennials when deciding where to shop, according to Sorenson. They want an engaging in-store experience and diversified options, but also want retailers to keep them informed in an interesting and personal manner.

As more people share information, comments and reviews online, brands are more exposed than before the advent of the Internet. Companies need to engage with consumers, particularly those who are younger, across channels and in a way that resonates with them. But implementing a sound strategy can be tricky, particularly with so many different platforms that can share a brand’s information.

“Millennials are the most highly educated and social generation in history,” Sorenson said. “They are clever and know what they want. As a brand, you need to be authentic and transparent when communicating with this younger generation.”

Sorenson notes that one brand that got it right is the Dollar Shave Club,  a Web-based e-commerce site for men founded in 2011 (Whose site is worth a trip to for the "Our Blades are F***ing Great" video alone - http://www.dollarshaveclub.com) Definitely worth . In 2012, the company announced itself to the world in a non-traditional manner via a funny, well-targeted YouTube video. In this clip, Dollar Shave Club showed that they do not take itself too seriously, and is a brand that firmly understands the highly visual, digital-based world. The clip has since gone viral, approaching 12 million views.

“Dollar Shave Club has gained an impressive following by telling a brand story that is authentic, entertaining and very shareable,” Sorenson said. While not every brand is in a position to mimic the Dollar Shave Club, their success is a lesson in what can be achieved when millennials become brand advocates.

For brands, having a sound omni-channel marketing strategy is key to connecting with millennials. As “digital natives”, millennials are fully comfortable operating on multiple screens and on multiple devices like laptops, smartphones or tablets. They enjoy interacting with new people and ideas via different social channels and will listen to companies that speak their language.

However, it’s not just about social media and flashy videos. The value of in-store experiences should be considered when thinking about marketing and branding. Millennials may spend a lot of time online but they have not fallen out of love with the bricks-and-mortar stores.

“As shoppers, they are less prepared than their predecessors and more reliant on in-store cues. Retailers that offer engaging store environments, and well-merchandised solutions, are the ones winning with Millennials,” Sorenson said.

Gone are the days of broadcast marketing: brands need to engage with consumers directly on an emotional level and establish a relationship.

“Digital allows for a two-way conversation between brands and consumers,” Sorenson said. “And when you understand consumers as people, you can create content that is share-worthy and engaging, rather than simply informative.”

The Coca-Cola Company speaks directly to millenials and many others via a new interactive magazine format website called Journey.

By Megan Conniff on November 12th, 2013 for Smartblogs.com 
Original posting can be located here: http://smartblogs.com/leadership/2013/11/12/millennials-and-the-new-value-of-shopper-marketing/

Coca-Cola Loses World's 'Most Valuable' Brand Status — To a Fruit

Apple overtakes Coca-Cola to become world's 'most valuable' brand

Coca-Cola has been displaced as the world's "most valuable" brand for the first time, with Apple taking the top spot in Interbrand's annual countdown of the top 100 global brands.

Coke has topped the Best Global Brands ranking each since its creation 13-years ago, but slips to number three behind iPhone-maker Apple and search giant Google, which jumps to number two in the table.

In 2000, Apple ranked at number 36 in the Best Global Brands with a brand value of $6.6bn. Today, despite recent criticism of its iPhone 5c launch, its brand value is $98.3bn.

Jez Frampton, Interbrand’s global chief executive officer, said: "Every so often, a company changes our lives—not just with its products, but with its ethos. This is why, following Coca-Cola’s 13-year run at the top of Best Global Brands, Apple now ranks number one."

"Tim Cook has assembled a solid leadership team and has kept Steve Jobs’ vision intact – a vision that has allowed Apple to deliver on its promise of innovation time and time again."

New entrants in the list include broadcaster Discovery (at number 70), Procter & Gamble-owned battery brand Diracell (85) and General Motors-owned automotive marque Chevrolet.

Technology brands enjoyed the biggest growth in brand value, with Google (second) up 34% year on year, Amazon (19) up 27%, and Facebook (52) up 43% on its 2012 value.

Apple was also recently crowned as the world’s most "cool" brand, confirming the firm’s enduring appeal despite its recent troubles. 

2013	2012	Brand	2013 brand value (USD $billion)	% change in brand value
1	2	Apple	98.316	28%
2	4	Google	93.291	34%
3	1	Coca-Cola	79.213	2%
4	3	IBM	78.808	4%
5	5	Microsoft	59.546	3%
6	6	GE	46.947	7%
7	7	McDonald\'s	41.992	5%
8	9	Samsung	39.610	20%
9	8	Intel	37.257	-5%
10	10	Toyota	35.346	17%
11	11	Mercedes-Benz	31.904	6%
12	12	BMW	31.839	10%
13	14	Cisco	29.053	7%
14	13	Disney	28.147	3%
15	15	HP	25.843	-1%
16	16	Gillette	25.105	1%
17	17	Louis Viutton	24.893	6%
18	18	Oracle	24.088	9%
19	20	Amazon	23.620	27%
20	21	Honda	18.490	7%

This article was first published on marketingmagazine.co.uk

By Alex Brownsell, marketingmagazine.co.uk, 30 September 2013, 09:00AM for Brand Republic - Original article can be found here:

http://www.brandrepublic.com/news/1213973/apple-overtakes-coca-cola-become-worlds-most-valuable-brand/

PepsiCo posted a net income increase of 35% in the second quarter to $2.01 billion

PepsiCo Inc. reported higher profit and revenue in the second quarter even as sales at its U.S. drink business continued to slip.

The mostly positive results coincide with heightened investor scrutiny after activist shareholder Nelson Peltz last week urged the maker of Lay's potato chips and Pepsi colas to buy Mondelez International Inc. and create a snack powerhouse while spinning off PepsiCo's slower growing beverage unit.

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PepsiCo Chairman and Chief Executive Indra Nooyi reiterated Wednesday that she doesn't see the need for any large-scale acquisitions and that the company benefits from its geographic and product mix. About half of PepsiCo's sales are fueled by snacks and the other half from beverages; roughly half of overall revenue is outside the U.S.

But Mrs. Nooyi again left the door open for potentially significant changes at PepsiCo's North American beverage unit, reiterating management is "exploring every possible alternative'' to improve results. That includes the possibility of refranchising regional bottling operations or spinning off the business entirely.

She repeated that shareholders will be updated early next year on its strategic review of the unit, which has been losing market share to Coca-Cola Co.

Net income rose 35% to $2.01 billion for the 12 weeks ended June 15, compared with 1.49 billion a year earlier. Adjusted earnings per share rose to $1.31 from $1.12. About 11 cents came from a $137 million, one-time gain from refranchising bottling operations in Vietnam and a temporary tax-rate drop.

Revenue rose 2.1% to $16.81 billion from $16.46 billion, with strong growth in Asia, the Middle East, Africa and its Americas-wide snacks business.

PepsiCo reiterated that it expects full-year per-share earnings to rise 7% on a constant-currency basis, and a mid-single-digit percentage rise in "organic" revenue. Organic revenue strips out the effects of acquisitions, divestitures and foreign-currency translations. But it now expects currency headwinds to have a negative impact of two percentage points on net income, up from its earlier estimate of one percentage point.

The company also expects $900 million in productivity gains.

Advertising and marketing expenses are expected to increase "at or above the rate of revenue growth'' in 2013. Such expenses were boosted to 5.7% from 5.2% of sales last year, as part of a restructuring drive, after PepsiCo rejected calls from some investors to split up the company. The bulk of any extra marketing investments this year would go to international operations, Chief Financial Officer Hugh Johnston told investors.

Operating profit at PepsiCo's Americas-wide beverage unit rose 5% to $882 million, boosted by higher pricing and cost-cutting, but revenue dropped 2% to $5.26 billion as volume fell 3.5%. For North America, the company reported a mid-single-digit percentage decline in soda volumes and a low-single-digit percentage decline in noncarbonated drink volumes. PepsiCo's beverage brands include Gatorade sports drinks, Tropicana juices and Mountain Dew soda.

Beverage companies say unseasonably chilly and wet U.S. weather damped sales, particularly soda. Coke last week reported a 1% volume decline in North American beverages in the second quarter, reversing 12 straight quarters of increases. Dr Pepper Snapple Group Inc., the third-largest soda company in the U.S., reported Wednesday its second-quarter revenue slipped 0.6% to $1.61 billion amid a 4% volume drop.

Mrs. Nooyi acknowledged the U.S. beverage business still has "challenges,'' especially when it comes to soda. But she said PepsiCo has made market-share gains in tea, Gatorade and Mountain Dew, and is confident last year's stepped-up marketing investments will pay dividends. PepsiCo also has been developing new low-calorie sweeteners to try to win back lapsed soda drinkers.

Other parts of PepsiCo's business performed better, with global snack and beverage volumes in the second quarter growing 3% and 1.5%, respectively. Revenue at its Americas-wide snack unit, whose brands also include Doritos, Cheetos and Tostitos chips, rose 5% to $6.03 billion, including a 4% increase in North America.

Revenue at its Asia, Middle East and Africa division grew 6% to $1.87 billion, boosted by a 9% volume increase in beverages and 6% in snacks. PepsiCo said beverage revenue soared 22% in China amid heightened distribution following last year's drinks joint venture with Tingyi (Cayman Islands) Holding Corp. and Asahi Group HoldingsLtd. By contrast, Coke reported flat volume in China in the second quarter.

Revenue in Europe inched 1% higher to $3.65 billion, powered by a 3% increase in snack volumes, despite tough economic conditions.

But results worsened at the company's Quaker Foods North America unit, which has been struggling with sluggish oatmeal sales. Revenue at the unit shrank 1% to $577 million and operating profit fell 14% to $133 million as the company ramped up investments to bring new products to market.

Stifel Nicolaus analyst Mark Swartzberg said in a research note Wednesday that the second-quarter results indicate PepsiCo's restructuring push "is working'' after profit fell last year but that it is too early to rule out bigger structural changes.

"We continue to think buying Mondelez is unlikely but that PepsiCo management may ultimately revise its attitude to splitting up,'' wrote Mr. Swartzberg.

Mr. Peltz, the prominent activist investor, said last week that PepsiCo should split its snack and beverage businesses even if it doesn't buy Mondelez, whose snack portfolio includes Cadbury chocolate bars, Oreo cookies and Trident gum.

A spokeswoman at Mr. Peltz's Trian Fund Management LP, which amassed stakes of more than $1 billion in each of PepsiCo and Mondelez earlier this year, declined Wednesday to comment on PepsiCo's second-quarter results.

Article written by Mike Esterl (at mike.esterl@wsj.com) for the Wall Street Journial and can be found here.

Best Overall Brands: Crest, Gillette, and Dove; and Kellogg, Heinz, and Kraft



The best overall brands in health and beauty, and food and beverage categories are Crest, Gillette, and Dove; and Kellogg, Heinz, and Kraft, respectively, according to a pair of new Forrester rankings based on online surveys this year of 4,500 adults. The Boston-based market research firm argues that brand health comes from the extent to which it is trusted, remarkable, unmistakable, and essential. If you turn that into an acronym, you get Forrester's TRUE formula for brand equity.


In the survey, from which the rankings are derived, consumers said Dove provides "a consistent experience every time I use the brand," and has "products/services that consistently deliver on their promises." Thanks in part to its campaign about authentic, versus manufactured, beauty the company has gone from a $200 million soap brand in the 1990s to a $4 billion mega-brand today, notes Forrester.

The research firm suggests brands shouldn't expect miracles based on spikes in consideration from a new product, or sudden interest from a new ad campaign. Dove's slow and steady pace is exhibit A: trust over buzz wins, says the consultancy. The firm says P&G's Crest and Gillette also lead in their categories because of this, with the latter leading among men between 25 and 34. The firm says that by contrast, younger, more niche brands like Axe haven't yet built trust, and haven't become "essential" to consumers. The brand, per Forrester, does resonate with consumers 18 to 34.

Dove, meanwhile, does best with women 40 to 49, with consumers overall preferring Dove over all other brands based on the levels of trust consumers have for it. The survey found, for example, that the brand provides "a consistent experience every time I use the brand," and scores well for "having products and services that consistently deliver on their promises."

Thanks to a refocus on athletes, Gatorade did well in the food and beverage survey in terms of consumers' sentiment that the brand helps athletes "to always perform at their peak." Forrester said the PepsiCo unit's marketing strategy around affiliating the brand with athletic performance, plus touting scientific research to back its claims, puts it above Coke on the brand ranking with its core target audience of 20-something men. The firm also says Gatorade's efforts have helped return it to a dominant -- 46% share -- position in the global sports drink sector.
Generally speaking, the study finds that familiar food brands have the highest TRUE ranking and "old-guard" brands are more trusted by upstarts. And -- not surprising -- as trust drops, so does preference. For example, Vitaminwater, whose preference level is under 20%, has the lowest trust score of any brand in the competitive set. Above Vitaminwater is Snapple, which is bested, in terms of preference, by Pepsi, Lipton, Gatorade, Kellogg, Nestle, Kraft, Coke and Heinz.

Article Written by Karl Greenberg, Yesterday, 2:34 PM for Marketing Daily - original post can be found here.http://www.mediapost.com/publications/article/204498/forrester-healthy-brands-are-true.html#axzz2ZFVaGIQj