DIGITAL MARKETING COURSE IN BTM -Influencer Marketing Strategy
The Power of Focus
1. THE POWER OF FOCUS
THE REAL ENGINE OF EARLY STAGE GROWTH
2. • standing in two feet of seawater
• ocean temp = 40 degrees, uninsulated wading boots
• air temp = 45 degrees, mountaineering jacket
• foreground eddies will last only 10 minutes more
• 5-7 second exposures
• tripod shifting slightly every 60-90 seconds due to tidal eddies
• left hand blocking sunlight behind the camera from flaring off the 3 stacked ND filters
• right hand holding wireless shutter release to eliminate camera movement
• massive heartburn throughout
• 85 shots to obtain this one…
3. The problem: American yogurt isn’t real
yogurt…it’s dairy candy!
Siggi’s proposition = low sugar, authentic,
natural yogurt for the leading edge
yogurt consumer
Resolves existing trade-off : low sugar
required artificial flavors/sweeteners to
achieve
2006
Typical 6 oz. yogurt cup:
27-45g of
sugar
THE STORY OF SIGGI’S YOGURT
HOW FOCUSED PRODUCT DESIGN CREATES PULL RIGHT AWAY WITHOUT ANY MARKETING AT ALL
4. THE STORY OF SIGGI’S YOGURT
HOW FOCUSED PRODUCT DESIGN CREATES PULL RIGHT AWAY WITHOUT ANY MARKETING AT ALL
Yet, Siggi also asked something
of the consumer…
…be ready to eat yogurt that is
not very sweet at all…like really
not sweet…
5. INTELLIGENT DISRUPTION AT THE PRODUCT LEVEL
HOW FOCUSED PRODUCT DESIGN CREATES PULL RIGHT AWAY WITHOUT ANY MARKETING AT ALL
Solves an existing trade-off
Offers a ‘modern’ way to
seek mainstream food
benefits
Just enough technical,
sensory or ingredient
disruption
Innovative, but not obscure
Hartman Disruption Index
6. OBSCURE VS. INNOVATIVE AFFECTS PACE AND SCALE
OBSCURE
BENEFIT NOT BEING PUSHED BY KEY
MESSENGERS/INFLUENCERS
INGREDIENTS/ATTRIBUTES
COMPLETELY NEW TO FOOD
CULTURE
EXAMPLES:
• ANTI-INFLAMMATORY WELLNESS
BARS
• BIODYNAMIC ANYTHING
• ADAPTOGENIC HEALING FOODS
INNOVATIVE
CONNECTS TO EXISTING
MAINSTREAM BENEFITS
INGREDIENTS/ATTRIBUTES NEW
TO THE CATEGORY, NOT FOOD
CULTURE
EXAMPLES:
• SIGGI’S
• SKINNY POP
• TATE’S BAKE SHOPPE
vs.
7. • NON-LINEAR GROWTH – THE SKATE
RAMP
• PRODUCT ‘SNEAKS UP’ ON THE
CPG COMPETITION
• CPG PRODUCT DEVELOPMENT
CYCLE TOO LONG TO CATCH UP
QUICKLY
• SUSTAINS DOUBLE DIGIT GROWTH
WELL PAST $100M
THE PAY-OFF FOR TIGHT PRODUCT FOCUS
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2013 2014 2015 2016
Siggi's Rides the Skate Ramp
Source: AC Nielsen, xAOC channels, past four years annualized quad week data, week ending 12/31/2016
10. BECAUSE THE MARKET REWARDS IT…
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 20 40 60 80 100
$CAGR2013-2016
2016 $ Dollar Sales
Millions
Category Focus Creates Higher, Sustained CAGR
(Predicted CAGR by Total Brand Dollar Sales)
1 Category Only
More than 1 Category
Source: 1680 food/beverage brands selling $1-$100M from 2013-2016, AC Nielsen AOD, week ending 12/31/2016; 281 randomly sampled natural/organic
brands follow similar pattern; avg # of categories per brand = 3.55, for natural/.organic it is 2.71
11. …AFTER ~$3-5M IN REVENUE….
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 20 40 60 80 100
$CAGR2013-2016
2016 $ Dollar Sales
Millions
Category Focus Creates Higher, Sustained CAGR
(Predicted CAGR by Total Brand Dollar Sales)
1 Category Only
More than 1 Category
Source: 1680 food/beverage brands selling $1-$100M from 2013-2016, AC Nielsen AOD, week ending 12/31/2016; 281 randomly sampled natural/organic brands follow similar pattern
Focal
inflection
point
Avg. +8% CAGR gap Avg +22%
CAGR gap by
$100M
12. Phase 1
$0-$1M
$1M
$7M
$0M
$30M
$100M
Phase 2
$1-$7M
Phase 3
$7-$35M
Phase 4
$35-$100M
83%
Sources: AC Nielsen, xAOC+C past five years, random sample of 700 premium brands in 42 different categories, 2010-2015, week ending 11/21/15; Hartman analysis
49% 42%
9%
63%
22%
15%
62%
11%
27%
9%
9%
% brands
growing
% brands
flat
% brands
declining
PRODUCT FOCUS HELPS OVERCOME THE EARLY STAGE DOLDRUMS….
13. FOCUS UNLEASHES BUSINESS POTENTIAL
SEARCHING FOR THE RIGHT COMPOSITION AND HOLDING IT…
SO YOU CAN MANAGE: THE FOCUS, THE LIGHTING, THE EXPOSURE, SPECIAL EFFECTS
14. FOCUS UNLEASHES THE POSSIBILITY OF SUPERIOR GROWTH
~$2-3M, 15 food categories
declining ‘13-’16
~$7M, 1 food category
213% growth ‘13-’16
Source: AC Nielsen, xAOC channels, past four years, week ending 12/31/2016
15. HIGHLY FOCUSED PRODUCT LINES ARE MUCH, MUCH EASIER
TO PRODUCE, SELL AND MARKET
Price
Product
Placement Promotion
18. THE CASCADING BENEFITS OF RUTHLESS PRODUCT FOCUS
• makes you a category expert in the eyes of the trade
• makes you a category expert in the eyes of consumers
• encourages you to create unique sensory experiences and
technical disruptions
• permits higher unit pricing (due to better innovation)
19. • Allows you to engage in simple integrated marketing campaign
• Allows you to tell a tight, meaningful innovation story
• Simplifies merchandising decisions
• Simplifies measurement of marketing ROI
THE CASCADING BENEFITS OF RUTHLESS PRODUCT FOCUS
20. • Frees up energy to focus on fine-tuned price-pack
architecture across conventional channels
• Allows you to have a minimal sales staff
• Focuses you on optimizing your UPC mix at shelf in close
working relationship with your key buyers
THE CASCADING BENEFITS OF RUTHLESS PRODUCT FOCUS
21. FOCUS ATTRACTS LOTS OF
ATTENTION, INVESTORS AND ADVICE…
…THE WORD ‘NO’ IS THE CRITICAL ENABLER OF FOCUS
A PARTING THOUGHT