How the confectionery industry can use social media marketing for profitable growth. Presented at the 65th annual PMCA Production Conference in Lancaster, PA, April 2011, and published in the June 2011 issue of The Manufacturing Confectioner magazine.
The project conducted both quantitative and qualitative research, developed a target audience and marketing message recommendation for rebranding The Gap.
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Check out our latest publication on Under Armour, Inc. which is an American sports equipment company that manufactures and produces footwear, sports and casual apparel.
Check out the SWOT and PESTLE analysis on Under Armour- https://www.swotandpestle.com/under-armour/
The analysis covers the business strategy of Under Armour.
We appreciate Siddhesh Suhas Salkar 's contribution towards this research report.
Follow us @swotandpestle to know more and visit our website - https://www.swotandpestle.com/
NEED HELP WITH YOUR RESEARCH?
Apart from SWOT and PESTLE analysis we also do Value chain analysis, Porter's five forces, BCG Analysis, Segment-Target and Positioning Analysis and other models and analyses to suit customised needs. Place your inquiry here
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Service strategy Analysis of Case Study- Starbucks- Delivering Customer Service
Introduction
Founded in 1971.
- Founded by:Gerald Baldwin, Gordon Bowker & Ziev Siegl
-The founders sold the entire business to Howard Schultz who joined the marketing team in 1982
-By 2002, it served 20 million unique customers in 5000 stores across the globe
-Sales had a CAGR of 40% , while Net Earnings had a CAGR of 50%
Unmetric took a deep dive look at some of the numbers behind the content the brand produces to glean insights about what makes Reese's such a popular brand with its audience.
See what strategies drove audience engagement.
Confectionery Brands On Social Media Q4 2015Unmetric
These confectionery brands have an excellent presence on social media with a highly engaged fan base interacting with their content. Unmetric took a deep dive look at some of the numbers behind the content the brands have produced to glean insights about what makes them popular with their respective audiences. See the strategies that drove audience engagement and the content that outperformed everything else.
The project conducted both quantitative and qualitative research, developed a target audience and marketing message recommendation for rebranding The Gap.
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How to do Under Armour's SWOT Analysis? Strengths, Weaknesses, Opportunities ...SWOT & PESTLE.com
Check out our latest publication on Under Armour, Inc. which is an American sports equipment company that manufactures and produces footwear, sports and casual apparel.
Check out the SWOT and PESTLE analysis on Under Armour- https://www.swotandpestle.com/under-armour/
The analysis covers the business strategy of Under Armour.
We appreciate Siddhesh Suhas Salkar 's contribution towards this research report.
Follow us @swotandpestle to know more and visit our website - https://www.swotandpestle.com/
NEED HELP WITH YOUR RESEARCH?
Apart from SWOT and PESTLE analysis we also do Value chain analysis, Porter's five forces, BCG Analysis, Segment-Target and Positioning Analysis and other models and analyses to suit customised needs. Place your inquiry here
https://www.swotandpestle.com/solutions/
#UnderArmour #SWOTAnalysisUnderArmour #PESTLEAnalysisUnderArmour #MarketResearchUnderArmour #CustomisedResearchUnderArmour #StrategyUnderArmour #BusinessCasestudyUnderArmour #BusinessStrategyUnderArmour
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Service strategy Analysis of Case Study- Starbucks- Delivering Customer Service
Introduction
Founded in 1971.
- Founded by:Gerald Baldwin, Gordon Bowker & Ziev Siegl
-The founders sold the entire business to Howard Schultz who joined the marketing team in 1982
-By 2002, it served 20 million unique customers in 5000 stores across the globe
-Sales had a CAGR of 40% , while Net Earnings had a CAGR of 50%
Unmetric took a deep dive look at some of the numbers behind the content the brand produces to glean insights about what makes Reese's such a popular brand with its audience.
See what strategies drove audience engagement.
Confectionery Brands On Social Media Q4 2015Unmetric
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For more information, please contact info@hawkpartners.com
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Social Media in the Confectionery Industry
1. Using Social Media to
Sweeten Confectionery
Industry Growth
The millions of conversations on social media provide us new
ways to learn more about what matters to our customers.
Pete Healy
GyroHSR
listen to and understand customers — for
T he best businesses in any industry focus
tirelessly on the ultimate driver of their
success: the customer. The confectionery
now, let’s focus specifically on consumers
— has grown almost unimaginably through
industry has important channel partners — the advent of social media. By now the
distributors, wholesalers, retailers — who names of social network sites such as Face-
are, of course, valued customers. But the book and LinkedIn have become familiar to
ultimate arbiter of our success is the cus- many of us, but these represent just a part of
tomer we call a consumer, because this is the tens of millions of online conversations
the person who decides whether our tea- that also take place around the clock on Pete Healy is VP
infused chocolate, our carbonated chewing blogs, forums and platforms such as Twit- account planning at
GyroHSR LLC. Prior to
gum or our guacamole-flavored jelly bean is ter. Millions of additional pieces of what
this appointment he
worth the money in his or her pocket today, has come to be known as consumer-gener- was the director of
and whether it will still be worth the price ated content — photos shared on Flickr, Crowbar Marketing.
tomorrow. videos uploaded to YouTube and the like He previously worked
at Perfetti Van Melle
Understanding customers — and thereby — are posted daily. If our ability to capture
USA and Jelly Belly
gaining their business — depends largely, of consumer conversations five years ago was Candy Company.
course, on listening. Even when a customer akin to overhearing occasional snatches of
isn’t yet sure what he or she wants, that very water-cooler conversation, it now seems that
uncertainty can provide us insights that lead we have been transported into the middle of
to new opportunities to meet that cus- cacophonous crowds in Times Square on
tomer’s needs — and very possibly the same New Year’s Eve.
or similar needs of the customer’s friends, And, frankly, the quality of the conver-
family or colleagues. This is true whether sations varies as broadly as the range of top-
we sell candy, computers or carpeting. ics, from the mundane to the philosophical,
In just the last five years our ability to from politics to potato chips. We are, after ➤
The Manufacturing Confectioner • June 2011 37
2. Social Media in the Confectionery Industry
Social media offers all, just plain people before we’re con- retain loyal consumers in an intensely com-
the confectionery sumers, but therein lies the payoff. We are petitive, impulse-driven category.
industry an social animals, and most of us enjoy being
“in the know,” sharing our opinions and THE CURRENT SOCIAL MEDIA
unprecedented LANDSCAPEXXXXXXXXXXXXX
opportunity to influencing others. How good is that new
In 2008, Brian Solis, a highly regarded new-
leverage the voice restaurant? Which 4G cell phone is the best?
Is that new dark chocolate candy bar as media thought leader based in San Fran-
of the customer in
good as it looks? cisco, mapped the “universe” of social-
developing and
Like it or not, people — consumers, in media sites as a color wheel (Figure 1),
delivering products
commercial terms — are using social media with a spectrum that ranged from main-
that can attract,
to talk about our products and our brands. stream and niche social network sites
engage and retain (Facebook, LinkedIn) to video and music
This is human nature, but now vastly ampli-
loyal consumers. sites (YouTube, Pandora) to blog and con-
fied through a new-media universe that’s
here to stay. Do we want to listen? Do we versation platforms (Blogger, Tumblr, Twit-
want to learn? Do we want to converse ter). This map, which Solis entitled “The
with people who clearly are engaged Conversation Prism,” also depicts dozens
enough to share their raves, complaints, of other sites through which millions of
suggestions and desires? Social media people share text-based and graphic con-
offers the confectionery industry an tent of all types. Solis’s map is an insight-
unprecedented opportunity to leverage the ful snapshot of a very young universe; some
voice of the customer in developing and of the sites listed will disappear over time,
delivering products — and an overall brand while others will grow and new ones arise.
experience — that can attract, engage and Still, the point is that people have signed on
to social media at an accelerating rate, even
The Conversation Prism if it’s only to see (or share) photos of their
grandchildren on Facebook.
In fact, Americans have embraced sev-
eral social network sites with fervor (with
one exception: MySpace, one of the first
mainstream sites, now in decline as newer
sites grow dramatically). Figure 2 summa-
rizes key attributes of the current main-
stream social-media sites:
The social-media landscape extends, of
course, beyond network sites like these.
The Ning platform or metasite (www.ning.
com) comprises a virtual gated community
of thousands of niche-interest groups rang-
ing from accountants to rock-climbers to
devotees of Renaissance music. The site
invites visitors to create and run their own
social networks under the Ning umbrella
for a monthly fee.
Figure 1 Flickr is perhaps the best-known photo- ➤
38 June 2011 • The Manufacturing Confectioner
3. Social Media in the Confectionery Industry
sharing site, containing an estimated 4.5 bil- “spectators” contribute no content, but Approximately
lion images uploaded by members into gal- read customer ratings and reviews, among 80,000 blogs are
leries of all types. Approximately other activities; even at this lowest rung of launched each day,
80,000 blogs are launched each day, with participation, social media is influencing with the total now
the total now numbering in excess of 110 purchase decisions on a scale far beyond numbering in excess
million (although many have become dig- traditional word of mouth. The amplifica- of 110 million.
ital flotsam, unattended by their authors). tion of influence was recognized by
Tens of thousands of forums are main- Bernoff and Li when they added “conver-
tained by people sharing interests in every- sationalists” to their model in 2010. These
thing from car seats to carpentry. Fiskars is are participants who do not generally post
one company that has revitalized its brand original content, but who actively foster
of scissors by creating a forum dedicated to discussions on blogs, forums, opinion sites
and administered by passionate scrapbook and the like. At the top of the social
hobbyists (www.fiskateers.com). technographics ladder are the “critics” and
Of course, not everyone participates “creators” who, as their labels imply, reg-
equally. In late 2007, Josh Bernoff and ularly post product reviews and author
Charlene Li of Forrester Research intro- blog entries, and upload photos, videos or
duced a “social technographics ladder” to other content. (Of note is the fact that
represent the range of activity (Figure 3). videos and annotated photos are now
“Inactives,” unsurprisingly, do not partic- widely used for many product reviews.)
ipate in social media, although they may Why have millions of people gotten so
use the internet to shop, for email or for involved in social media? First is the core
similar “Web 1.0” activities. One step up, fact that, as we’ve noted, human beings are
Key Attributes of Current Mainstream Social Media Sites
Facebook
Users (2011): 525MM worldwide; 154MM in USA (double since 2009)
Demographics: 18 – 24 yrs = 25%; 25 – 34 yrs = 25%; 35 – 44 yrs = 20%
Site Character: “Friends & family”
Notes: Average FB user is on the site 25 min per day; 71% of all U.S. internet users on FB
Twitter
Users (2011): 190MM worldwide; 90MM in USA (up from 12MM in 2009)
Demographics: 45% of users >35 yrs (average user age = 39)
Site Character: Real-time, experiential, eclectic: from the mundane to the profound
Notes: Annual household income of users: 30%>$100k, 58% >$60k
YouTube
Views (2011): Two billion views per day worldwide (600MM in USA)
Demographics: Global
Site Character: Eclectic in content, multilingual, multicultural
Notes: FB users in aggregate watch 46.2 years of YouTube videos per day; each auto-share
tweet about a YouTube video spurs seven new YouTube user sessions
LinkedIn
Users (2011): 95MM worldwide; 45MM in USA
Demographics: 64% male; average user age = 41
Site Character: Professional; networking and discussion forums
Notes: Average annual household income of users: $110k
MySpace
Users (2011): 46MM (USA); down from 65MM in 2009
Demographics: 56% female; 44% are 18 – 34 yrs
Site Character: Bands, high school students, 30-something moms
Notes: Annual household income: 46% at <$60k
Figure 2 ➤
The Manufacturing Confectioner • June 2011 39
4. Social Media in the Confectionery Industry
The simultaneous inherently social animals. We want to outfits: these all represent the role of
development of a belong. Beyond our obvious survival needs, brands in our need for self-identity, self-
consumerist culture we want to voice our thoughts, exchange expression and peer affinity.
and mass ideas and learn from others. In fact, for many of us, these two emo-
communications Second, the simultaneous development tional drivers have engendered a third,
during the 20th of a consumerist culture and mass com- which we can call the brand/friend blur,
century fostered munications during the 20th century fos- that is, the fact that we often rely on brands
our tendency to tered our tendency to connect to brands for comfort, excitement or other emotional
— to choose Ford over Chevy, for exam- boosts — much as we might expect from
connect to brands
ple — through our relationships with other friends. Coffee shops were coffee shops
through our
people. Describing the merits of the new until Starbucks came along, elevating the
relationships with
Lexus around the water cooler, debating emotional reward of consuming coffee to
other people.
who makes the best golf clubs with friends a level that engendered remarkable and
at a barbecue or seeing platoons of teens at enduring brand loyalty. The coffeehouse
the mall all wearing Abercrombie & Fitch chain remains a friend of sorts to count-
less millions around the world.
Fourth and last, online social media and
The Social Technographics Ladder
networks have immeasurably increased
the opportunities each of us has to be a
“brand champion,” that is, to recommend
a product, a service or a brand to a far
larger and widespread audience than our
traditional circles of family, friends and
colleagues. Of course, the same audience is
available when we play the role of a “brand
detractor”; either way, the point is that
social media provides for many individuals
a scope of influence unimaginable even
10 years ago.
But that’s not all, as some TV ads pro-
claim. Another wave of amplification is
hitting us at this moment: the increasingly
rapid diffusion of mobile technology in the
form of smartphones (Figure 4). The inter-
net marketing-research company com-
Score reports than one in four cell phone
owners in the United States now uses a
smartphone, a clear indication that we’re
increasingly online while on the move. In
fact, comScore research confirms that
nearly 40 percent of smartphone owners
are using internet browser functions to
access news and information online, and
Figure 3 nearly 25 percent regularly use their smart- ➤
40 June 2011 • The Manufacturing Confectioner
5. Social Media in the Confectionery Industry
phones to access social network sites. This Consider a broader issue such as the crit- The likely fact is
means that the conversations that take icisms expressed by some health advocates that consumers are
place across the internet have even greater and consumers over the use of high-fruc- already talking
reach as people participate from smart- tose corn syrup in food and beverage prod- about your brand
phones and other mobile devices. ucts, including, of course, confectionery. or your business.
Your company may have received no You can remain
IMPLICATIONS AND OPPORTUNITIES
inquiries or complaints so far, but the man- silent while the
FOR CONFECTIONERY R&D/
PRODUCTIONNXXXXXXXXXXXXXXXXX ner in which social media disseminates and conversation
perpetuates discussion — with, arguably, a continues, or you
Sociology and changes in the media land-
disproportionate representation of extreme can present your
scape are well and good, but what do they
matter for confectionery-industry profes- opinion — may at some point draw your own point of view.
sionals working in product development or business into the fray. Why do you use high-
production? The answer lies not only in how fructose corn syrup in your products? Why
social media amplifies, but how it also accel- don’t you label it more clearly on your
erates conversation among consumers, and packaging? When do you plan to stop using
between consumers and businesses. Con- it? The risk to your company’s reputation
sider the consumer who feels she received and to its brand image may be substantial.
an unhelpful response from your customer Senior corporate managers may right-
service department to her question about fully object to the possibility of unjustified
a possible allergen in your product. In the attacks or ill-informed accusations from
recent past she may have told a handful of vocal activists online. Marketing managers
others about her dissatisfaction. Today, she may fear that they will “lose control of
has the option of using her blog or a social their brand” if they venture into the social-
network to share her discontent (or worse) media realm. But if you are one of those
with hundreds or thousands of others managers, the likely fact is that consumers
instantly, some of whom will likely share or are already talking about your brand or
echo her message with others in their own your business. You can remain silent while
networks. This ripple effect can be aston- the conversation continues, or you can
ishingly fast; and while it may dissipate just present your own point of view. When
as quickly, it may also gain force as it mom-bloggers were offended by an online
spreads, provoking attention from reporters ad campaign for Motrin in September 2008,
in mainstream media. they unleashed their anger quickly and
vociferously on their blogs and through
Social Media Amplification Twitter. McNeil Consumer Healthcare, the
maker of Motrin, was further criticized for
being slow and insincere in its apology.
Once the apology was made, however,
some mom bloggers called upon others to
let the issue go, showing that a sense of
fairness can prevail in social media, just as
in offline communities.
Returning to a positive scenario, con-
sumers may be delighted with your new
Figure 4 tea-infused chocolate truffles. You may dis- ➤
The Manufacturing Confectioner • June 2011 41
6. Social Media in the Confectionery Industry
Social media cover that several prominent bloggers are bucks Idea, an online social community
provides the R&D generating many positive comments in the coffeehouse chain launched in the
or production response to their posts about your prod- spring of 2008. The premise was straight-
professional the uct. In fact, someone has set up a Face- forward, as Starbucks told visitors to the
opportunity to book page where nearly a thousand fans site, “You know better than anyone else
access the voice are already sharing their ideas for new fla- what you want from Starbucks. So tell us.”
of the consumer vors; seaweed-infused truffles are winning A recent check of the site showed that
almost immediately, at the moment. more than 44,000 ideas have been submit-
in real time and Of course, several aspects of these sce- ted for food and beverage items, including
with little effort. narios — package design or new-flavor flavors, blends and formulations. This fig-
requests, for example — traditionally fall ure does not include another 21,000 ideas
within marketing or customer service. Here for merchandise other than food and bev-
again, though, the rules are changing. Social erages. It also does not include thousands
media not only amplifies and accelerates, of suggestions related to the customer
it provides even the r & d or production experience inside Starbucks locations.
professional ensconced in the most remote While Starbucks has the advantages of a
laboratory or office the opportunity to global brand and thousands of its own
access the voice of the consumer almost storefronts, it achieved that status only by
immediately, in real time and with little listening to its customers. The advent of
effort. Whether that professional scans social media has given the company even
social media to stay ahead of potential more opportunities to deepen the engage-
problems or to stay current with her col- ment and loyalty of its fans.
leagues in marketing, customer service or
sales, online conversations offer a tremen- IMPLICATIONS FOR CONSUMER-
dous wealth of information and insights. DRIVEN BRAND ENGAGEMENTX
In 2010, the semiconductor manufacturer If consumers increasingly regard their
Intel decided to ask consumers for new favorite brands as a part of their self-iden-
product ideas. The company launched a tity, as a platform for peer affinity and even
Facebook page through which consumers as vehicles for self-expression, social media
could submit their own ideas or comment clearly offer new ways to project those
on those submitted by others. The winner emotional elements. Yes, that may be true
of this promotion would be named vice pres- for cars or clothing, one might say, but isn’t
ident of r&d for a day, with the chance to it far-fetched to ascribe the same dynamics
work with Intel engineers at the company’s to a roll of mints or a bag of candy corn?
product-development center. Other prizes Most marketers would agree that this is
included notebook computers and software. not far-fetched, since the physical product,
The results of the 10-week event were as important as it is, constitutes only the
remarkable: 53,000 participants who gen- starting point for creating a brand experi-
erated 5,000 unique ideas; 200,000 views ence that, if positive, can grow and deepen
of those ideas; 8,000 comments and 110,000 over time. When the consumer’s emotional
ratings; and a total of 420,000 engagements attachment is validated by positive reac-
between consumers and the Intel brand. tions from others in his network, his
Perhaps more relevant to food-industry engagement with the brand deepens, rais-
professionals is the example of My Star- ing the odds that he will continue to pur- ➤
42 June 2011 • The Manufacturing Confectioner
7. Social Media in the Confectionery Industry
chase the product. While the relevance of snacks a new way to share their enthusiasm Consumers use
product categories varies for each con- for the brand. Without a large marketing social media to
sumer depending on his or her needs and budget, the company chose Facebook as its amplify their
desires, confectionery has the advantage platform to launch a series of monthly con- engagement. Their
of being a fun, low-cost category from a tests and sweepstakes, each centered on posts accelerate
consumer standpoint. sharing and rating consumer-generated con- imitation and
The low-cost, low-risk attributes of con- tent, ranging from fan videos to flavor ideas. engagement by
fectionery make it an easy product to talk Visitors to the Tornados Facebook page others. Marketers
about. Trial based on someone’s recom- could download coupons, and win points can access these
mendation is usually simple and inexpen- redeemable for Tornados-branded mer- engagements more
sive, and in the “flat world” of social media, chandise — and even a family trip to a easily and broadly
nothing more is required to post an opinion Nascar race at Daytona — by commenting than ever before.
or review. (In fact, even product trial is on other visitors’ content. When the Face-
optional, if one chooses to dismiss an item book page reached 100,000 fans, Ruiz Foods
as too weird, unhealthy or otherwise unde- committed to providing 100,000 free boxes
sirable.) In broader social terms, confec- of Tornados through downloadable buy-
tionery is an easy conversation starter. Just one, get-one e-coupons. By the end of the
like wandering into a neighborhood party, campaign, the company had gained more
the first-time visitor to Twitter or another than two million brand engagements with
social network site uses the topic to break consumers online and well over 150,000
the ice, project some personality, establish new Facebook fans. And by any measure,
rapport and create new acquaintances. If I Ruiz Foods was successful in boosting the
like salted licorice and you like sweet, we Tornados brand by using social media in
share a starting point from which to explore. combination with tried-and-true promo-
But if I like Darrell Lea licorice and you tional activities to create new fans and
prefer Panda, then we move from category strengthen consumer brand loyalty.
to brands, adding another dimension to By now, millions of pieces of consumer-
the conversation. Confectionery is inher- generated content about brands (including
ently fun, at the same time evoking child- confectionery) have been shared on blogs,
hood memories and other pleasant asso- Facebook and Twitter, and through videos
ciations. But we can talk only so long about and photos uploaded to YouTube, Flickr and
a product type or category in general. similar sites. Consumers use social media to
Brands, as we have noted, provide a spring- amplify their engagement. Their posts accel-
board to do more, to project our individual erate imitation and engagement by others,
personalities. Brands often serve as a and marketers can access these engage-
means of self-expression. This is evident ments, however large or small, more easily
in consumer actions that range from the and broadly than ever before.
simple — for example, the habitual use of
a tagline from a TV ad — to the elaborate, LEVERAGING SOCIAL MEDIA FROM
as when friends gather to drop chewy mints CONCEPT TO CASH REGISTERXXXXX
into bottles of soda, releasing foamy gey- How do we turn brand engagement
sers and provoking boisterous amusement. through social media into sales that help
In the summer of 2009 Ruiz Foods our businesses grow? This can be done in
decided to give fans of their Tornados hot numerous ways through each step of the ➤
The Manufacturing Confectioner • June 2011 43
8. Social Media in the Confectionery Industry
Companies that process from product concept to cash reg- • LinkedIn Groups to track conversations
integrate social ister, and can be tailored to the goals and on technical issues, particularly in inter-
resources of any manufacturer. national contexts.
media into their
Corazonas Foods, a manufacturer of Marketing
culture and
• Facebook to engage consumers in con-
operations will snack foods based in Los Angeles, is a good
versation about your brands and products.
strengthen example. Driven by the death of her father
• Twitter and Facebook to promote and
alignment of their from heart disease, ceo Ramona Cappello report in real time on sponsored events,
business and started the company in 2005 with the goal roadshows, in-store demos.
of creating tortilla chips and other snacks • Flickr to share event photos, or to invite
brand strategies.
that both taste good and can actually lower consumers to post their own photos
cholesterol. The company’s products con- related to their experience of your
tain plant sterols that have been clinically brands or products.
• YouTube to share event or roadshow
shown to provide this benefit, and prod-
video, or to invite consumer-generated
uct packaging includes the FDA-approved content related to a contest or promotion.
health claim. • Google Analytics to understand visitor
Corazonas Foods is another company traffic to and on your brand or company
that has chosen Facebook as their key website, and to integrate website and
social media platform through which to social-media consumer/brand touch-
create and retain fans and customers. Much points more effectively.
• Mobile applications to deliver incentives
like Ruiz Foods, Corazonas offers coupons
and personalized content to opt in con-
through the social network site, but also sumers (may be triggered by shopper
goes further with a direct “Prove It” chal- scans of quick response codes at point
lenge. A visitor can register her name and of sale).
email, and then have her cholesterol tested Sales/trade support
before and after eating Corazonas snacks • LinkedIn Company or Group page(s)
over a four-week period. If her cholesterol for distribution of value-add informa-
doesn’t drop, the visitor will receive a tion to channel partners or retail trade
customers.
refund. The company extends the brand
• Twitter for real-time updates on in-store
experience, including social-media ele-
demos or other promotional events.
ments, all the way to the point of purchase,
Customer service/consumer affairs
where shoppers can receive cholesterol
• Addictomatic or similar low-cost tools
screenings near Corazonas displays and to scan consumer sentiment or response
in-store sampling. The company uses Twit- to specific events.
ter to announce screening schedules and • Twitter or Facebook to engage consumers,
itineraries for interested consumers. facilitate resolution of complaints, proj-
In general terms, then, manufacturers ect responsive image for the company.
can leverage social media and digital tools
INTEGRATION INTO BUSINESS
in a number of ways to differentiate and STRATEGIESXXXXXXXXXXXXXX
strengthen their brands:
By its nature, social media is open and
Product concepts/product innovation accessible. Conversation and collaboration
• Google Alerts and similar tools to scan replace the one-way “push” communica-
blogs and forums for trend-focused con-
tions of traditional advertising and Web 1.0
versations on analogous categories such
as flavored beverages, baked goods or corporate websites. Social media therefore
cross-cultural fusion foods. challenges companies to attain higher lev- ➤
44 June 2011 • The Manufacturing Confectioner
9. Social Media in the Confectionery Industry
els of collaboration across corporate func- brand loyalty that drives sales and to The fundamental
tions in order to compete more effectively. improve operations while reducing inter- goal is to tap social
In fact, companies that integrate social nal functional silos. For that reason, social- media as a new
media into their culture and operations media team members should never be iso- tool to gain
will strengthen alignment of their business lated in a separate “department” of customer insights,
and brand strategies, in turn strengthen- whatever sort, called upon only when a to innovate, to
ing brand equity and brand loyalty among manager wants a “funny viral video.” build brand loyalty
consumers. that drives sales
Like other c p g (consumer packaged RETURN-ON-INVESTMENT
CONSIDERATIONSXXXXXX and to improve
goods) companies, confectionery manu- operations while
That’s all great, one may ask, but what’s
facturers can integrate social media into reducing internal
the bottom line? What’s the r o i (return
their operations in various ways, depend- functional silos.
on investment) of social media for a candy
ing on business goals, resources and inter-
company? In these early days of this new
nal culture. Nonetheless, the foundation
must be a firm and sustained commitment media landscape, there is no single, simple
by senior management to leverage social answer. The good news is that tools of
media in order to do the following: measurement abound; the big questions
• Engage consumers openly and authen- are what to measure, and why.
tically about the company’s products Some successful business people see
and brands. social media as an investment in learning
• Recognize and reward fans of the com- more about customers through dialogue,
pany’s brands. or as a way to anticipate and leverage
• Optimize opportunities to support
trends sooner and more effectively. What
and/or promote retail trade customers.
is the r o i on equipping your sales force
• Inform those interested about the com-
pany’s community-focused programs or with cell phones? What was the point of
events. creating a company website 10 years ago?
• Represent the industry of which the In fact, as more companies begin to use
company is part. social media, what may have provided a
With appropriate support, senior man- competitive edge two years ago is fast
agement in each functional area should becoming table stakes. But as we know,
evaluate and propose ways to leverage ultimately there is a cost and, therefore, a
social media, and toward what objectives. net value to any business activity.
“Appropriate support” in planning, imple- The debate over the roi of social media
mentation and periodic measurement can reflects the tension between opportunity
take the form of a nimble cross-functional and risk in a new marketing landscape. But
team trained in social-media practices. (For it has been intensified by attempts (often
those wondering why this would matter to by social-media proponents) to apply
accounting or hr managers, it’s worth not- financial terminology to nonfinancial meas-
ing that professionals in those fields are ures: the number of hits on a company
generally very active on social network microsite, the number of fans on a Face-
sites such as LinkedIn and Ning.) book brand page, the number of views of
Keep in mind that the fundamental goal a company’s YouTube video and the like.
is to tap social media as a new tool to gain These can be meaningful indicators, but
customer insights, to innovate, to build they clearly are not financial measures. ➤
The Manufacturing Confectioner • June 2011 45
10. Social Media in the Confectionery Industry
The millions of At this point the value of the sales-fun- with brands and with the companies that
conversations on nel model comes to mind. Can we evaluate produce those brands. The one-way “push”
social media can and select social-media-related indicators of traditional advertising is now joined by
teach us new ways that might lead toward conversion? Can conversations moving in all directions. In
to learn more we connect one consumer/brand touch- this rapidly changing landscape, marketers
about what matters point to another, and track the progression fear “losing control” of their brands and
to our customers, to quantifiable sales points? For example, ceos wonder whether social media can
including how they can we launch interactive digital ads that really help business.
lead viewers to our microsite, where they But if nothing else, we have learned that
influence each
would receive an incentive to share with the millions of conversations on social
other, and why they
friends via Twitter or Facebook, ultimately media can teach us new ways to learn more
choose to purchase
driving new sales at nearby retailers? about what matters to our customers,
our products.
As mobile applications multiply, 4G cell including how they influence each other,
phones with geo-location become com- and why they choose to purchase — or
monplace, and quick response (q r) codes bypass — our products. We can explore the
provide manufacturers with new ways to new social-media landscape one step at a
incentivize consumers all the way to the time, learning as we go, if we’re commit-
retail aisle, a social-media-driven sales fun- ted in that effort. This includes the clear
nel becomes increasingly feasible. We have understanding that fans on Facebook don’t
discussed the rapid diffusion of smartphones, equal register rings, but that more fans can
which enables increasing numbers of con- mean more sales, more often if we set the
sumers, while standing before product dis- right goals and measures.
plays in a store aisle, to interact with the People are talking about our brands; that
companies that make those products. We is a simple reality. The question is whether
also have discussed the opportunity to use we believe we can grow our businesses by
social-media platforms in combination with ignoring or by engaging in those conver-
each other and with traditional marketing sations. As new as social media still is, smart
tactics. In the case of Corazonas Foods and companies already know the answer. n
its cholesterol-lowering snack products, this
approach has enabled them to increase their REFERENCES
share of acv (all commodity volume) up to Bernoff, Josh. Empowered. Forrester Blogs. Jan-
uary 2010. Web: http://forrester.typepad.
40 percent in key markets, a remarkable com/groundswell/2010/01/conversationalists-
achievement for a small company in an get-onto-the-ladder.html
intensely competitive category. Bernoff, Josh, Charlene Li. Social Techno-
But in all cases, and regardless of tactics graphics Ladder. Forrester Research, 2010.
or technology, the essential nature of social Solis, Brian. The Conversation Prism v2.0.
media remains paramount, in the form of @BrianSolis blog. March 30, 2009. Web:
h t t p : / / w w w. b r i a n s o l i s. c o m / 2 0 0 9 / 0 3 /
a willing partnership and ongoing dialogue conversation-prism-v20/
of the consumer with the brand marketer.
CONCLUSION
The advent and spread of social media in
hardly more than five years has trans-
formed the relationship consumers have
Presented at the PMCA Production Conference
46 June 2011 • The Manufacturing Confectioner