JANUARY/FEBRUARY 2022
Path Purchase
pathtopurchaseiq.com
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E N D - TO - E N D S T R AT E G I E S F O R D R I V I N G C O N S U M E R D E M A N D
INSIDE
2022
TRENDS SURVEY, IMMERSIVE BRAND EXPERIENCES & MORE
EMERGING BRANDS TO WATCH
Cann and 14 others shaking up CPG POWERED BY
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THE FUTURE TAKES FOCUS
NOW
Unexpected market forces rapidly change the way we build trust in our brands. It’s time to join the only community that connects thousands of professionals to the insight and influence essential for solving business problems and driving growth into the future. The time to align with Path to Purchase IQ is NOW.
PathtoPurchaseIQ.com F O R M O R E I N F O R M A T I O N , PLEASE CONTACT Eric Savitch, Vice President, Brand Director, esavitch@ensembleiq.com
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Contents E N D -TO - E N D ST R AT E G I E S F O R D R I V I N G C O NS U M E R D E M A N D
20 Path to Purchase Trends 2022
Our annual survey results show how consumer product marketers are dealing with abnormal times. Plus, retailer media network ratings.
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15 Emerging Brands
Relative newcomers in the CPG space are responding to changing consumer trends and poised to make big moves.
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Immersive Brand Experiences CPG and DTC brands are coming to life via physical spaces and pop-ups designed to engage shoppers and build a brand fan base.
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VO LU M E 35 | ISS U E 1
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10 Commerce Executive Network
Editor’s Note:
New Year, New Stuff
A recap of activity from this Path to Purchase Institute group that focused on retail media, the future of in-store and organizational alignment in 2021.
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12 Author’s Corner:
P2PI Member Spotlight The New Consumer:
Shopping behavior stats and studies
Doug Stephens
We pick the brain of this retail futurist, who recently authored a book titled “Resurrecting Retail: The Future of Business in a Post-Pandemic World.”
15
On Trend:
Cann sampling program
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16 Brand Watch: CeraVe
Brand Watch:
An Instacart campaign
L’Oreal’s skincare brand launches an all-digital campaign focused on the role of its key ingredient, ceramides.
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Activation Gallery:
Holiday 2021
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18 In-Store Experience: BevAlc
Brands in this category are testing out pop-up and experiential concepts to create awareness and win new consumers.
45 Fi Goes Beyond DTC
Solutions & Innovations:
Mobile apps & beyond
Editorial Advisory Board Keith Albright, Post Consumer Brands Dana Barba, Coca-Cola North America Stephen Bettencourt, Peapod Digital Labs Lianna Cabrera, L’Oreal Paris Cosmetics Mia Croft, Native Christiana DiMattesa, Under Armour Gregg Dorazio, Giant Food (Ahold Delhaize) Paige Dunn, FIJI Water, JUSTIN Vineyards &
The smart dog collar brand expands into retail in the fall of 2021 through a partnership with PetSmart.
At bu
A
So om of
Winery, Landmark Vineyards & JNSQ Wines
51 Insider Intel: SmartyPants & Instacart Unilever’s vitamins and supplements brand teams up with Instacart to drive awareness and sales during the category’s crucial “New Year” season this winter.
Jessica Fair, The J.M. Smucker Company Tony Fung, Bob Evans Farms Patrick Hallberg, Apple Travis Harry, Home Depot Brendon Lynch, Jushi Holdings Jose´ Raul Padron, The Hershey Experience Rodney Waights, Beiersdorf
Path to Purchase IQ (USPS 4568, ISSN 2688-4984) is published bi-monthly by EnsembleIQ, 8550 W. Bryn Mawr Ave., Ste. 200, Chicago, IL 60631. Subscription rate for the U.S.: $90 one year; $166 two year; $14 single issue copy (pre-paid only); Canada and Mexico: $108 one year; $194 two year; $16 single issue copy (pre-paid only); Foreign: $122 one year; $233 two year; $16 single issue copy (pre-paid only); $60. Periodical postage paid at Chicago, IL 60631 Copyright 2022 by EnsembleIQ. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or information storage and retrieval system, without permission in writing from the publisher. Reprints, permissions and licensing, please contact Wright’s Media at ensembleiq@wrightsmedia.com or (877) 652-5295. POSTMASTER: send address changes to Path to Purchase IQ, 8550 W. Bryn Mawr Ave. Ste. 200, Chicago, IL 60631.
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Editor’s Note
Editorial Director Jessie Dowd, jdowd@ensembleiq.com
New Year, New Stuff J E S S I E D O W D, E D I T O R I A L D I R E C T O R
By the time you read this issue of Path to Purchase IQ in early February, many of you may have already forgotten about your New Year’s resolutions. It’s true — studies continually show that the majority of resolution-makers abandon their well-intentioned promises within a month. I’m not usually one for making resolutions (adding something else to my never-ending to-do list has never been appealing), but I do like to think of the new year as a good time to refresh or hit the proverbial reset button. To that tune, the editorial team is excited to kick off our first issue of 2022 with a few new offerings that you can expect to see in each edition of the magazine. Part of the refreshed issue lineup includes new departments that will help you keep the pulse of the industry, with a curated roundup of the latest trends in shopper behavior and consumer research, spotlights on brands and categories, a dive into in-store experience, new solutions and innovations, and plenty more. Another new addition to each issue is our Author’s Corner (see page 12), where we’ll pick the brains of the industry’s top minds and share a glimpse with you as part of our 2022 Book Club. I encourage you to sign up for the Book Club (it’s free!) so that you’ll be the first to know about each new author and book — plus you’ll get exclusive access to attend our “Meet the Author” virtual coffee hour events (available only to Book Club members). You can learn more about the Book Club and the 2022 featured authors and books at PathtoPurchaseIQ.com/bookclub. Of course, each issue of Path to Purchase IQ will continue to cover the commerce marketing industry with in-depth feature stories, special reports and research. In this month’s issue, we unveil the results of our 26th annual Path to Purchase Trends Survey (page 20) — including retailer media network ratings — and take a deep dive into the challenges, tactics and opportunities we’re facing as an industry. Once you’re done digesting the numbers from our Trends Survey, check out the 15 emerging brands making big moves in CPG (page 32) that you’ll want to keep on your radar. Then treat yourself to some fresh creativity and see how brands are engaging with shoppers via next-level immersive experiences (page 38). Whether you’re a devoted resolution-maker or not, we hope this issue brings you the insights and inspiration to attack 2022 with vigor — or at the very least, a little extra wind in your sails.
Hover your smartphone’s camera over this link to register for the Book Club.
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Executive Editor Tim Binder, tbinder@ensembleiq.com Managing Editor Charlie Menchaca, cmenchaca@ensembleiq.com Digital Editor Jacqueline Barba, jbarba@ensembleiq.com Director/Member Content Patrycja Malinowska, pmalinowska@ensembleiq.com Managing Editor/Member Content Cyndi Loza, cloza@ensembleiq.com Editor/Member Content Beth Christenson, echristenson@ensembleiq.com Director – Production Ed Ward, eward@ensembleiq.com Creative Director Colette Magliaro, cmagliaro@ensembleiq.com Art Director Michael Escobedo, mescobedo@ensembleiq.com CONTRIBUTING WRITERS Michael Applebaum, Ed Finkel, Erika Flynn, Chris Gelbach, Jenny Rebholz, Bill Schober
SALES & P2PI MEMBER DEVELOPMENT Vice President, Brand Director Eric Savitch, esavitch@ensembleiq.com Associate Director, Brand Partnerships Arlene Schusteff, 773.992.4414, aschusteff@ensembleiq.com Regional Sales Manager Orlando Llerandi, 678.591.8284, ollerandi@ensembleiq.com B2B Account Executive Patrece Remmel, premmel@ensembleiq.com Senior Director/Member Development Patrick Hare, phare@ensembleiq.com Director/Member & Business Development Todd Turner, tturner@ensembleiq.com Manager/New Member Development Katrina Lopez, 813.732.5281, klopez@ensembleiq.com
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ENSEMBLEIQ LEADERSHIP TEAM Chief Executive Officer Jennifer Litterick Chief Financial Officer Jane Volland Chief Human Resources Officer Ann Jadown Executive Vice President, Operations Derek Estey Executive Vice President, Content Joe Territo
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MEET THE
SELF-CARE CONSUMER Unwind. Relax. Chill. Consumers are shopping for products that benefit their mental, emotional and physical well-being.
steff,
re,
Consumer health awareness jumped 12% from March to August 2021
ner,
8
Source: 2022 Vericast Consumer Outlook
Learn more about what’s driving shopping trends in the 2022 Vericast Consumer Outlook report.
VERICAST.COM
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Member Spotlight A snapshot of industry leaders from the P2PI member community GINGER GUTHRIE WILSON Partner, Strategy-360 Agency
Ferrero USA (specialist in residence) About your role: Responsibilities include leading shopper strategy, partnerships and omnichannel activation for the Ferrero mainstream chocolate portfolio in partnership with Ferrero’s category management team. Biggest challenge right now: One challenge is clearly distinguishing which tactic or combination of tactics fuel incremental growth among a complex shopper journey with multiple points of influence.
CORTNE MILLER
Best advice received in your career: Working with leaders who taught me the strategic value of crosspollinating ideas, talents and businesses to create outcomes for 1+1=3.
Manager, Shopper Marketing
Nestle Coffee Partners About your role: Leverage data-driven shopper and category insights to develop strategic, omnichannel shopper-centric plans to unlock category and brand equity.
New marketing tactic used in the past year: At Ferrero, we’re leaning into the shopper insight that the path to purchase is anything but linear, and with the influence of digital shopping, we’ve taken a “full funnel” media approach, meaning most of our media touchpoints are shoppable.
Biggest challenge right now: Staying ahead of the curve on the dynamic nature of e-commerce and where it is headed. How to plan for what’s next in order to be one step ahead of our competitors, make it seamless for our shoppers, and be experts for our customers.
Favorite hobby: Hiking, as it gives me a chance to be active, social and enjoy the outdoors in many beautiful places.
PARAS SHAH Director, Omnichannel Shopper Experience
Georgia-Pacific About your role: Lead omnichannel shopper marketing, consumer promotions and retail media for GeorgiaPacific’s consumer business.
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Memorable aha moment in your career: The importance of testing to produce new learnings — even if our assumptions and hypotheses turn out to be wrong — and how those learnings can result in a method to drive business transformation. Favorite hobby: Making pizza at home so I can eventually become a pizzaiolo!
Advice for others facing the same challenge: Evaluate campaigns holistically by collaborating with cross-functional and inter-agency teams.
Biggest challenge right now: As consumers’ shopping behaviors and expectations have shifted, how we can transform our shopper marketing to reach consumers when and where they want to shop in an omnichannel world across multiple fulfillment options.
Advice for others facing the same challenge: Shift investment mix to growing platforms (i.e., click & collect and home delivery), focus on getting on the “recently purchased list” to drive repeat trial, and develop joint business partnerships with retailers to experiment as they evolve their offerings.
Advice for others facing the same challenge: Continuous education. Read, absorb and apply what you learn to your business. Don’t be afraid to take risks and move fast. Memorable aha moment in your career: When I learned that the companies I joined or roles I took were more about the people I surround myself with and they make what you do so meaningful. New marketing tactic used in the past year: Traditional and ride share out-of-home digital billboards. Favorite hobby: Filling our home with new and interesting plant babies, which started at the beginning of the COVID-19 pandemic. We currently have 39, including coffee, lemon and olive trees. IQ
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Commerce Executive Network:
2021 Recap
The Path to Purchase Institute’s Commerce Executive Network (CEN) brings together executives from retailers, brands, agencies and solution providers to solve real-world complex problems, establish best practices and develop standards to implement bold initiatives and inspire change. This diverse group of industry leaders explored three key topics throughout 2021.
program results across channels and customers. • A shopper marketing tactic return on investment (ROI) guide and heat map illustrating the ROI by marketing tactic across select retail channels, product categories and retailers, powered by Foresight ROI. • A map of the capabilities and data available from Kroger Precision Marketing (KPM) as the first of more assessments to come.
The Retail Media work group discussed benefits and challenges of working with retailer media networks, media aggregators and third-party media sellers. It created various materials to help marketers as they navigate the ever-changing retail media landscape, including: • Glossaries of relevant media and measurement terms, along with a list of benefits and challenges of working with each type of media provider. • A retailer media campaign planning brief that helps teams set expectations, make decisions on media investments and ensure objectives are met. • A retailer media scorecard that helps standardize and compare
The Future of In-Store work group undertook a close examination of the changing path to purchase that culminates in the store. The group identified various touchpoints along the shopper journey that cause shoppers moments of delight — or friction — and rated their impact on the perceived shopper experience, ultimately zeroing in on areas that have the most opportunity for innovation and the potential for improvements to drive additional revenue. The group’s extensive model clearly identified six actionable areas with the greatest potential for impactful innovation: sampling, selection/ planned purchase, discovery/impulse, merchandising, BOPIS and loyalty. Focusing on these key areas, the
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group drilled down to potential solutions and facilitated deepdive discussions with the goal of determining the current landscape in that area, reviewing paint points and potential solutions, and sharing case studies of recent innovations and successful activations. The model provides both an overview of the current landscape via a color-coded heat map that brings the final insights to life, as well as deep dives into particular areas of interest. The Organizational Alignment work group zeroed in on the need to rethink both how organizations are structured and, more importantly, how they determine who does what when it comes to path-to-purchase marketing. The group considered barriers to how work gets done, skill gaps, options for organizational design and potential changes in ways of working. It concluded that companies need to figure out what changes are needed, what their options are, what shorter-term steps they can take for immediate progress and “quick wins,” and what longerterm steps are needed to embed new structures and ways of working. In collaboration with OxfordSM, the group created a tool that enables organizations to assess their current capabilities versus what they need, and figure out how to get there. Rather than attempting to provide a single optimal structure, the skills assessment tool enables organizations to see where they stand, based on the visual map, and provides data to support recommendations for changes in the organization. Most of the documents and tools are available exclusively to CEN members. To join the group, contact Patrick Hare at phare@p2pi.org. IQ
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Author’s Corner
‘Resurrecting Retail’ Q&A with best-selling author and retail futurist Doug Stephens
As one of the world’s foremost retail industry futurists, Doug Stephens’ intellectual work and thinking have influenced many of the most widely known international retailers, agencies and brands. Path to Purchase IQ sat down with the bestselling author, and founder of global consultancy Retail Prophet, to talk about his latest book, “Resurrecting Retail: The Future of Business in a Post-Pandemic World.” Among the topics were trends on the horizon that will have the most impact on brands and retailers.
P2PIQ: From when you first began writing “Resurrecting Retail,” what aspect of retail business do you think has changed the most? And what do you think will be the biggest shift we’ll see in retail for 2022? Doug Stephens: From my perspective, the single biggest shift lies in the degree to which businesses across the spectrum have developed at least a tablestakes level of capability in digital commerce. From grocery to automotive, we saw businesses rapidly cobble together the means to serve consumers through any number of means, from
livestreaming to by-appointment sales and curbside pickup. Similarly, we’ve seen millions of new merchants emerge on platforms like Shopify. This hasn’t come as good news for companies like Amazon, Alibaba and other large marketplaces, which prior to the pandemic seemed to possess an insurmountable advantage. Therefore, we’re now going to see these companies enter a new phase of their own development, which will involve a range of new categories, services and technologies aimed at reclaiming competitive distance. Already Amazon is making big bets in verticals like education, transportation, fintech [financial technology] and healthcare. I believe they’re just at the cusp of a completely new competitive evolution.
P2PIQ: What’s one of the most surprising takeaways you unearthed while working on “Resurrecting Retail”?
Stephens: That the vast majority of businesses have very little sense of clarity when it comes to their purpose to consumers. What’s worse is that most don’t even realize it until they’re challenged to articulate precisely what their unique value is. And this is crucial, because without a crystal-clear sense of what the brand represents or the value it provides, myriad other tactical decisions become nearly impossible to make in an effective way. How can you determine what sort of customer experience to build if you’re not even sure what specific value your brand aims to deliver? How can you make cogent technology investments if you’re not certain what kind of experience you’re attempting to design? How can you even hire the right people if you’re not clear on
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the experience you want them to animate? Without purpose, nothing else matters. Brands that do possess a clear and unified internal sense of brand purpose and value to their customers consistently outperform their competition, are more efficient with their capital, and have infinitely more loyal customers and employees. When we work with brands to develop strategy, purpose is always the starting point. In my view, the purpose is the new positioning in the post-pandemic era.
P2PIQ: Since the onset of the pandemic, how would you describe the essence of why we shop has evolved? What does this mean for commerce marketers?
Stephens: Given that we are still in the midst of this crisis, it remains difficult to triangulate consumer behavior with certainty. To varying degrees, consumers are still grappling with some very powerful and primal emotions that are underpinning their behaviors. Fear, disconnection, boredom and thoughts around mortality and legacy are all weighing on how consumers are shopping and what they’re shopping for. For example, at the outset of the crisis we saw panic buying as consumers worked to gain a sense of security and safety. We’ve seen remarkable spending on products that offer distraction from the pandemic — musical instruments, gardening supplies, digital entertainment, etc. We’ve seen enhanced luxury spending as consumers seek to regain a sense of self-esteem and
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value. And, of course, we’ve seen major movement in the real estate market, as people sort out the kind of lives they want to lead and where they want to lead them from. The economic picture is similarly cloudy at the moment. Stimulus spending, wage subsidies and restraints on things like travel and hospitality, as well as significant inflationary pressure, are making it difficult to get a clear sense of the consumer’s financial wellbeing. When we truly begin emerging from the pandemic, we’ll quickly get a much clearer sense of lasting behavioral changes left by the pandemic.
P2PIQ: What’s your No. 1 piece of advice to brands as they try to keep pace with the evolving consumer landscape and engage with shoppers across the path to purchase?
Stephens: There are only two kinds of businesses today: those that become the cognitive default in their category and those that become the emotional default. Amazon, for example, is clearly a cognitive default. That’s why 70% to 80% of us begin product searches there. We don’t love Amazon — they’re just remarkably easy and convenient to shop and that’s precisely the sort of consumption machine that Amazon set out to build. Most businesses can’t compete with that — nor should they aspire to. The other category of businesses are emotional defaults. Brands such as Nike, Dyson and Patagonia are great examples of businesses that dominate by creating a very different kind of value. Patagonia, for example, is a cultural flag bearer for the environment or what I call an “Activist” brand. Nike trades on deep human and social themes, making them a “Storyteller.” Dyson treats its products like finely crafted art, making them an “Engineer” brand. Each has created an
engaging shoppers in a proper brand experience and galvanizing a meaningful relationship with them. In other words, physical stores are becoming a more powerful and cost-effective media channel. The next step is to begin effectively measuring it as a media channel in monetary terms, which some of our clients are already working at doing.
P2PIQ: Looking to the future now, what short-term trends in retail do you see taking hold long-term?
emotionally connected place in their customers’ hearts. In “Resurrecting Retail,” I offer 10 different archetypes like these — each offering a different purpose and value to consumers. The moral of the story is, if you’re not either the cognitive default or the emotional default in your category, your brand is not going to survive the postpandemic future of retail. It’s that simple.
P2PIQ: What would you highlight as a key mistake brands and retailers might be making as they adjust their strategies for the continued shifts in shopper behavior? Stephens: Perhaps the biggest mistake I’m seeing play out right now is sort of an all-in approach to spending on digital marketing and e-commerce. It’s a natural response, given the massive flow of online spending right now, but it would be a huge mistake to forget about the value of physical retail — not so much as a means of product distribution, but rather as a powerful means of customer acquisition. The cost of digital advertising has seen a 10x increase in cost since 2016, and yet studies confirm that the majority of spending on digital marketing produces ads that go largely unnoticed by consumers. Physical stores, however, offer a true means of measuring consumer impressions,
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Stephens: Generally speaking, I believe what we are seeing is retail (both offline and online) moving from being largely centralized and search-driven to becoming more dispersed and entertainment-driven. Whether it’s livestreaming, social commerce or virtual stores, we’re going to find that retail becomes more ambient and woven into more day-to-day experiences. Even online shopping will become less about going to a website and entering a search term and more about shopping from within content and entertainment experiences. This is the new frontier of retail. IQ
Meet the Author Coffee Hour — Feb. 17, 2 p.m. EST Doug Stephens is one of the Featured Authors in our 2022 Book Club, which is currently reading “Resurrecting Retail: The Future of Business in a PostPandemic World.” Sign up (it’s free!) to be part of our Book Club and you’ll get access to our exclusive Meet the Author virtual coffee hour event — Feb. 17 at 2 p.m. EST — where you’ll get to listen in while we pick the brain of this “Retail Prophet” and then take part in the discussion during an interactive Q&A. Visit PathtoPurchaseIQ.com/bookclub to join us and get on the list.
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The New Consumer
Latest Stats, Studies Shine Light on Evolving Shopper Behavior BY J AC Q U E L I N E B A R B A
Editor’s Note: In each issue of Path to Purchase IQ, we’ll showcase a curated roundup of consumer research studies and other insights that paint a picture of emerging trends in shopper behavior in this new department, called The New Consumer. This month’s installment offers a glimpse at growth in social commerce and the trends on the horizon for commerce in 2022.
GROWTH IN SOCIAL COMMERCE Gen Z and Millennials are leading the social commerce charge as the primary users of social media. The growth, which was projected in a January study from Accenture, attributed 62% of social commerce spend —which is expected to reach $1.2 trillion by 2025 — to the two generations. Nearly 2 billion social media users, or 64% of those surveyed by Accenture, said they made a social commerce purchase in the last year. That’s notable to the retail industry, which initially suffered during the early days of the COVID-19 pandemic.
Currently, around 3.5 billion, or 44% of the world’s population uses social media, representing big opportunities for brands and retailers to capture not just Millennials and Gen Z users, but all consumers. Social commerce is also likely to help small businesses and brands,
which often rely on social media to connect directly with consumers with authenticity, according to the study. With huge growth projected over the next few years, some retail categories are set to explode. Clothing is expected to increase the most among social commerce purchases by 2025, followed by consumer electronics and home decor. Fresh foods and snack items represent a large product category of total purchases, although those sales are almost exclusively within China. Another up-and-coming area is beauty and personal care products.
TRENDS IN COMMERCE FOR 2022 The Mars Agency London highlighted seven key trends for 2022 in a special “Trends in Commerce” report. Among them were: • Quick commerce. One of the fastest-growing purchase channels in 2021 was the number of companies accelerating order-todelivery promises. Demand for efficient commerce fulfillment will continue in 2022 as shoppers
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increasingly expect fast delivery from retailers and brands, while “fast and free” will surely be the winning combination. • Return of relevant retail. Despite the boom of digital commerce, postlockdown consumers around the world are eager to get back into “real retail” and the full sensory experience of physical shopping. Retailers and brands must deliver on three distinct needs: provide safe shopping, more immersive browsing experiences and connected commerce opportunities. • QR Codes. These codes give brands and retailers a relatively easy way to have more relevant, evolving and connected communication with increasingly comfortable shoppers. Other trends highlighted in the report include consumers reassessing their work practices (and shifting to a self-made work week), brand purpose and mindful eating, as well as what The Mars Agency dubbed “selective frugality,” the re-evaluation of what’s important to consumers, particularly, how they spend disposable income. IQ Hover your smartphone’s camera over this link to download the full “Trends in Commerce” report.
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On Trend
The New Social Tonic: Cannabis-Infused Beverages How Cann grew its ‘Unspiked’ sampling program BY C H A R L I E M E N C H AC A
by state and even locally, infused samples in any legal market are not on the horizon anytime soon. Enter the unspiked drink as the solution to this problem. Shoppers want to know what a beverage that is designed to be consumed in different servings tastes like. Virgin drinks allow Cann to get liquid to lips and overcome one of the largest barriers to purchase — taste. In the world of heavily regulated cannabis, this is a significant win.
H OW?
Path to Purchase IQ connected with Sebastian Richard, head of the national brand ambassador program for Cann, a cannabis-infused beverage label, for the inside scoop on its sampling program — and how the brand worked around a myriad of regulations to engage with shoppers.
W HO?
Cann, a cannabis-infused beverage, and St. Louis-based agency Switch. Cann is aiming to place its drinks in front of everyone who has picked up an alcoholic beverage before.
W HAT?
A field marketing campaign in which brand ambassadors distribute unspiked (aka no cannabis/virgin) samples of Cann at local dispensaries. Ambassadors also share educational flyers with QR codes linking to a list of the beverage’s ingredients and how it differs
from alcohol. From there, consumers can purchase packs of the actual infused drink directly from the dispensaries.
W HEN/ W HERE?
In July 2021, the campaign started as a 12-week effort over the summer in the Las Vegas and Reno, Nevada, markets. It quickly turned into a 20-week campaign in additional markets, including San Diego, Los Angeles, northern California, Chicago, Massachusetts and Rhode Island. This year the sampling program will expand to Arizona, Canada, the Pacific Northwest and the East Coast.
W HY?
Cann was looking for an immediate solution to scale to a nationwide program in a matter of weeks, not months or years. Switch provided a plug-and-play team that was ready to bite into the challenge and build the plane as it was taking off, so to speak. Since regulations for cannabis vary
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Richard breaks down how they measure success: “Conversion rates are the ultimate decider. Are we driving sell-through in the accounts we activate in or nearby? This campaign lives and dies by its ability to move product off the shelf. We are in the stage of the industry collectively, where the more people who purchase Cann (equating money with product versus free samples) and consume it socially, the better. “Break that down, though, and we see that just under half of all consumers who buy Cann do so again within three months. Doubling down on that, every two six-packs that leave a dispensary are tried by an average of at least two adults. “So, the more we sample the more we sell the more people try it the greater the pool of consumers. “We are not blessed with an established consumer base like traditional CPG. We are retraining and redeveloping the social drinking landscape. It takes a lot, but it’s a snowballing effect.” IQ
Emerging Brands To learn more about Cann, see page 35.
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Brand Watch
CeraVe Touts Healthy Skin Through Digital BY C H A R L I E M E N C H AC A
L’Oreal’s CeraVe brand launched an all-digital campaign last November to highlight the health benefits of its products on skin. The “Think Ceramides!” program was named after the key ingredient included within all CeraVe product formulations. Ceramides are lipids naturally found in skin, and comprise half of the skin’s composition to form the natural skin barrier, according to the company. “We understand many consumers may not know what ceramides are, so the hope for our new campaign is to raise awareness about the fundamental role they play in protecting our greatest organ, our skin,” says Jaclyn Marrone, vice president of marketing, CeraVe. CeraVe chose November so that the campaign could also celebrate “Healthy Skin Month,” a national initiative led by the American Academy of Dermatology. The ceramides-focused assets will be used throughout this year as evergreen content, educating
followers and brand fans on the importance of ceramides, Marrone says. The brand worked closely with Ogilvy, its New York-based advertising agency, to develop the campaign’s central theme. Ogilvy created two videos representative of the key messaging that CeraVe always keeps ceramides in mind, so consumers don’t have to worry about it. The brand also partnered with Brooklyn, N.Y.-based creative agency Mustache to integrate the campaign message into lifestyle social content. More than 70 pieces of creative were developed for the campaign, spanning across digital, social, e-commerce, medical and public relations platforms. Posts appeared on CeraVe’s social media accounts, and Tom Allison, the brand’s cofounder, also shared the campaign on his Twitter and TikTok accounts. Allison’s TikTok activity coincided with a Nov. 26 takeover of that social media platform planned for users outside of the U.S. As CeraVe remains rooted in dermatology, it collaborates with derm influencers and key opinion leaders to be the voice of its
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campaigns. For “Think Ceramides!”, the brand teamed with Dr. Muneeb Shah on TikTok to help convey the key role ceramides play for skin. “Dr. Shah has been a continued partner of the brand and was the perfect derm influencer for this campaign, because he does a great job at making scientific learnings relatable and easy to understand — something incredibly important to the brand as [it seeks] to educate viewers on the importance of skin health,” Marrone says. CeraVe also partnered with board-certified dermatologist Dr. Ted Lain for various assets of the campaign. This included a Nov. 4 Instagram Live skin chat on CeraVe’s account to discuss the benefits of ceramides. The brand plans to tie in to Healthy Skin Month each November as an opportunity to increase awareness and communication about ceramides, Marrone says. IQ
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Brand Watch
Instacart Champions ‘Homemade’ in its First Brand Campaign BY C H A R L I E M E N C H AC A
Grocery delivery platform Instacart celebrated fresh food and community in its first-ever integrated brand campaign. Dubbed “How Homemade is Made,” the effort rolled out in November 2021 and ran through the winter holiday season. The campaign emphasized Instacart’s long-term ambition to expand the brand and product experience from transactional to inspirational. “As we look ahead, Instacart’s opportunity is to partner with grocery retailers to also inspire people across all of their food needs, whether it’s cooking your mom’s short ribs or putting together a quick lunchbox for your kids,” Instacart CEO Fidji Simo said in a media release. “With this campaign, we hope to remind people that food is more than sustenance; it’s an opportunity for human connection.” The campaign came to life in a TV spot created in partnership with San Francisco-based agency
Goodby Silverstein & Partners (GS&P). The story encouraged viewers to imagine a world where unique family dishes become commercially available. ABC, CBS and NBC carried 30- and 60-second versions of the spot, which was also posted on Instacart’s YouTube channel. There were nine total pieces of creative, including the commercial and photographs of eight different recipes, says a spokesperson for Instacart. Each recipe contained a QR code that took consumers to a shoppable recipe on the Instacart app. Digital out-of-home ads ran in Phoenix and San Francisco in large-format bulletins along highways, the Instacart spokesperson says. Small-format digital ads appeared on street furniture and at malls, gyms, electric vehicle charging stations and gas stations. Paid social, influencer marketing utilizing a #HowHomemadeIsMade hashtag and programmatic advertising rounded out the campaign. “We developed the ‘How Homemade is Made’ campaign to highlight how the traditional concepts of food, family
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and shared meals that we know consumers crave can not only live alongside modern technology, but actually be fueled by it,” said Rich Silverstein, GS&P co-founder and co-chairman, in the release. Instacart’s brand strategy was developed in partnership with San Francisco-based agency TwentyFirstCenturyBrand. The media planning and execution were led by New York-based media investment company GroupM. The social media and influencer campaign was developed with London-based production company Media.Monks. IQ
Working with Brands For details on how SmartyPants collaborated with Instacart, see page 51.
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In-StoreExperience
BevAlc Brands Go Experiential BY J AC Q U E L I N E B A R B A
A
s the beverage alcohol (BevAlc) category overall continues to point to more innovation and success, brands are testing out pop-up and experiential physical concepts in order to win new consumers and create brand awareness. Read on to learn how three BevAlc brands tapped into the power of human connection in-store via new concepts that champion their spirits while engaging shoppers.
James B. Beam Distilling Co.’s Distillery In August 2021, Beam Suntory’s James B. Beam Distilling Co. opened the Fred B. Noe Distillery, which is dedicated to seventh-generation Beam master distiller Fred Noe and led by Noe’s son, Freddie. It produces several of the
James B. Beam Distilling Co.’s well-known brands, including Little Book whiskey’s annual series of blends, and serves as a testing ground for future, high-quality innovations. The Fred B. Noe Distillery joins the Beam family’s iconic distillery campus in Clermont, Kentucky, which has produced bourbon (including Jim Beam) since 1935. The new distillery, which is powered by renewable energy, also offers experiential learning through distillation sessions and seminars with Freddie Noe, hands-on activities in the blending lab, and a tasting bar to sample new and yet-to-be released innovations for select members of the trade. Additionally, a “state-ofthe-art” classroom for the University of Kentucky’s James B. Beam Institute for Kentucky Spirits educates future leaders in the American whiskey industry.
Remy Martin’s Modern Boutique Remy Cointreau’s Remy Martin has opened its first standalone boutique in Hainan, China — the country where it has been exporting product from since the 1880s. Opened in October, the space showcases its
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fine Champagne cognacs by embedding the brand’s craftsmanship, heritage and its commitment to sustainability throughout the store. The sensorial and contemporary retail experience was created by Remy Martin’s architect team to characterize the House in Cognac, where Remy Martin’s cellars and tasting room is located in Cognac, France.
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Inside the store, chalky white walls aim to resemble the Cognac vineyards, while light oak fittings serve as a reminder of the barrels deep in its cellars, according to the company. Remy Martin collaborated with French artist and designer Marianne Guely to create “poetic paper drapes” adorning the wall bays and to bring color to the space. Lavish displays and discovery tables encourage product discovery. The boutique also offers tastings, gifting personalization and an interactive screen where shoppers can explore their organoleptic profiles and learn more about Remy Martin cognacs.
Johnnie Walker Princes Street Emporium Diageo’s Johnnie Walker Scotch brand took its experiential in-store efforts to a new level, opening a “state-ofthe art,” eight-story experiential whisky department store in Edinburgh, Scotland, last year. Diageo made a nearly $250 million (£185million) investment in the project — which was four years in the making — to create the Princes Street experience in Edinburgh, as well as to transform 12 of the company’s existing distillery single-malt experiences and to create other luxury branding experiences.
“It started with a challenge, which was how do we make Scotch whisky — particularly blended Scotch whisky — more shareable,” said Greg Klingaman, Diageo’s global reserve retail director, during a virtual session in November as part of Path to Purchase Live: The Digital Experience. Johnnie Walker dove into a number of luxury experiences in one massive, former department store in Scotland, for whisky connoisseurs and tourists alike. Brand innovation studio Dalziel & Pow assisted Diageo in designing the immersive retail experience. Some unique store features include: • A personalization area on the ground floor allowing shoppers to customize bottles with engraving and bespoke label-printing services or bottle their own special-edition liquid. • A “Flavour Finder” activity that uses an audio motion sensor showcase wall to tell the story of each liquid. This interactive moment can also match customers’
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preferred tastes and scents with a whisky profile. • A lifestyle boutique selling a range of store-exclusive branded garments and accessories, such as sustainably sourced clothing home accessories and bar tools. • Roof terrace planters to provide herbs for garnishes and infusions for drinks, a sedum roof covering and bird boxes to encourage biodiversity. “Johnnie Walker Princes Street is a landmark investment in Scotch whisky and into Scotland, and it sets a new standard for immersive visitor attractions,” Ivan Menezes, Diageo’s chief executive, said in a statement. “It celebrates Scotland’s remarkable heritage, our incredible skilled whisky-makers, and looks to the future by engaging new generations of consumers from around the world in the magic of Scotch whisky.” IQ
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ADAPTING TO ABNORMAL TIMES Our 26th annual survey finds an industry figuring out how to engage shoppers while still dealing with the persistent pandemic and plenty of other concerns. BY T I M B I N D E R
E
ver since the World Health Organization declared COVID-19 a global pandemic in March 2020 and disruption set in, consumer product companies have been trying to adapt and figure out what the new normal will be. Now, as we approach the two-year mark, there’s still no clear answer. With our 26th annual Path to Purchase Trends survey, conducted in October-November 2021, we set out to understand how these companies and their marketers have been dealing with the issues of the day as well as what their concerns were as we headed into the new year. It should come as no surprise that, among the respondents to our online survey, the supply chain crisis, budget/funding/inflation issues
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RETAIL MEDIA TRENDS:
Rating of retailer networks, chain by chain Page 27
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PATH TO PURCHASE TRENDS 2022
How investment (budgetary spend and/or attention) in the following areas changed in 2021 compared to 2020 2021 INVESTMENT CHANGES 70%
E-commerce content (PIM, DAM, delivery packaging, etc.) Retailer media networks Other digital media beyond retailer networks and social media (paid search, internet ads) Social media
20%
62%
10%
25%
61%
13%
24%
59%
23%
15% 18%
Shopper marketing
53%
30%
17%
Insights & analytics
51%
33%
16%
Mobile (SMS, mobile app/website advertising)
50%
Trade promotion
32%
Consumer promotion
29%
In-store marketing Traditional media (TV, print, etc.)
21%
35% 40%
Increase
30% 44%
29%
Survey respondents were permitted to skip this question, answering “not sure.” Source: P2PIQ Trends Report 2022
28%
40% 36%
19%
16%
52% Flat
Decrease
Survey results for the second straight year showed that e-commerce content and digital media (including retailer networks) saw the biggest increases in investment, with traditional media and in-store marketing showing the biggest decreases. While the latter two’s decreases were similar for both 2020 and 2021, the increases for the top tactics have slowed a bit. E-commerce content (70% increase in 2021 vs. 85% in 2020), retailer networks (62% vs. 77%) and digital media (61% vs. 77%) showed smaller increases, perhaps indicating less drastic adjustments were needed following the initial changes in 2020 after the onset of the pandemic.
and a pandemic that won’t subside were among the biggest concerns heading into 2022. “Increasing costs of everything — raw materials, transportation, labor (and not being able to find people to fill the positions in our plants),” said one respondent. “There is no government plan in place to address these rapid cost increases,” answered another. “I am concerned high levels of inflation are on the horizon.” And, beyond costs … “Material availability, whether it’s related to the production of our products or to our marketing efforts. Reliable transportation/carriers is also an increasingly troublesome issue,” a respondent said. The COVID-19 virus itself, and the variants that have occurred, remained a concern for many of our respondents (and this was before the attention-grabbing omicron variant emerged in late November). In addition to the general challenges the pandemic has presented, there’s still “the struggle to find
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effective and cost-efficient ways to sample products in the COVID world,” a respondent reported. Many respondents did identify concerns beyond those mentioned above. “Getting noticed and keeping people’s attention,” was one respondent’s concern. “Also, making sure we have a steady flow of products to fill our orders.” “Minimizing the impact of paring down in-store efforts,” said another. “The attention span is short, and ensuring we have the shopper’s attention throughout the journey is key to winning.” Identifying a challenge not specific to these pandemic-related times, one respondent was concerned with overall brand awareness: “We are an emerging brand that has had success gaining placements, but are struggling with pull through on the shelves. Our two biggest priorities for 2022 are to drive marketing resources to our wholesale partners and exponentially growing our brand awareness.”
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as …
PATH TO PURCHASE TRENDS 2022
Strategies/tactics most important in the past year 50%
E-commerce/E-commerce content Digital media (other than retailer networks and social media) Retailer media networks
34% 32% 31%
Social media
22%
In-store display activity for retailer-driven programs Direct-to-consumer sales
17%
Traditional media
15%
In-store media/signage
15%
In-store display activity for brand-driven programs
12%
In-store sampling/demos
11%
Alternate venue sampling/demos
11%
Online sampling/demos
10%
Mobile marketing 6% *Respondents were asked to select up to three Source: P2PIQ Trends Report 2022
And, changing subjects, a concern for another respondent was, “Low-price players creeping into the category and providing inferior products may sour consumers for adoption of higher-end products.”
MOST IMPORTANT STRATEGIES/TACTICS We presented the product marketers taking our survey with a list of 13 strategies or tactics and asked them to choose up to three that have been the most important to them in the past year (see chart above). Exactly half answered either e-commerce generally or e-commerce content — the most for any option. Next, slightly more than a third of respondents chose digital media tactics (other than retail media and social media), with retailer media networks and social media finishing close behind in third and fourth place, respectively. As a follow-up to that question, we asked respondents to give us more detail on the strategic/ tactical changes they’ve made in the last year. Here’s a sampling of their responses:
• “Our organization is investing more in e-commerce — not in internal resources, but in marketing dollars for consumer promotions.” “We’ve increased focus on digital media that can impact e-commerce buys.” • “We’ve increased paid search to capitalize on product trends, and increased spend on analytics in order to make actionable decisions to optimize the budget.” • “There’s a greater focus on engaging the shopper before they enter the store via social media and other digital media, plus mobile marketing. Sales at the shelf are still important, so we continue to invest in shelf media spends.” • “It has been difficult to connect with some retailers as there has been significant buyer turnover. You start to plan activity only to be told that the person has left the company, been transferred or promoted.” • “Our key focus areas are getting more visibility to the impact of retail media, and collaborating with retailers to improve impact of shopper marketing and retailer media.” • “We had a significant shift into social, especially TikTok, in order to follow the consumer. We’ve seen strong conversion from these activities, so we’ve amped up more expenditure in this space.”
• “Due to COVID we had to pivot and rely less on in-store and more on online.” • “We’ve increased our e-commerce strategy due to growing online grocery shopping.”
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PATH TO PURCHASE TRENDS 2022
Are you incorporating social commerce into your omnichannel budgets?
Which social platforms are you incorporating? 81%
No
22%
Yes
78% Source: P2PIQ Trends Report 2022
46%
TikTok
45%
Other
10%
Other mentions: Facebook (6%) LinkedIn (3%) Pinterest (1%) Twitch (1%)
*Respondent were asked to select all that apply Source: P2PIQ Trends Report 2022
Resoundingly Instagram, but also Twitter and TikTok, have been the primary platforms for social commerce activity among the 78% of respondents who indicated they budget for social commerce.
LEVERAGING PHYSICAL EXPERIENCES While none of the various in-store related choices in the strategies/tactics question were selected by more than 22% of respondents, another question related to physical experiences had 72% say that they leverage in-store/ physical experiences in some way. We picked their brains further, asking what types of physical experiences beyond the traditional retail environment their brands leverage. Among the answers were: hosting or having a presence at local events; sponsoring larger events such as concerts, festivals and sports; leveraging brand or pop-up stores; executing demonstrations inside and outside stores; and retailtainment. And then, getting to the “why,” we asked what the main factors were in driving the decision/ability to leverage physical experiences outside the traditional retail environment. Many of the answers were simple and what you might expect, including the ability to reach the right consumer; brand awareness and sampling; brand engagement; content generation and testing; and to drive innovation. Some of the other responses dove a little deeper: • “The desire to stay connected to our local community.” • “To meet the end-users where they work and play, rather than hoping they’ll find the time to come to our dealers’ stores.” • “For consumers to see/feel/experience products live and engage with brand authorities and experts.”
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Does your brand leverage physical experiences outside of the typical retail environment? No
28%
Yes
72% Source: P2PIQ Trends Report 2022
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PATH TO PURCHASE TRENDS 2022
ENGAGEMENT INSIDE THE STORE Diving deeper into the store itself, we asked what will most effectively drive shopper engagement inside the store going forward. Interestingly, the term “omni” popped up in multiple answers. “This is a tough one,” one respondent said. “Outside of pricing tactics, I would say a link to the omni-experience — the ability for shoppers to browse in-store and on their phone at the same time to gather more information to aid their decision-making.” “The complete omni-journey,” answered another. “In-store is not going away, so as tactics evolve more to before the store, it’s important to keep in
Does your brand have a direct-to-consumer (DTC) capability? 25%
Yes, it’s been around for a while
47%
Yes, and it’s newly launched
No, but we’re thinking about/ working on it
No, we’re not going there
19% 9%
RETAILER LOYALTY PROGRAMS — ENGAGEMENT
Source: P2PIQ Trends Report 2022
We asked this question in our survey two years ago, pre-pandemic (although offering slightly different choices of answers), and the numbers tell a story. In our 2020 Trends Survey, 53% of respondents indicated they were already selling directly to consumers. This time around, 72% said they are selling DTC. And while just 9% said outright “no” to using DTC this time around, two years ago 32% said they had no plans to sell directly to consumers.
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mind that you still need to win the physical shelf.” “Omnichannel communication and offers” are critical, said one respondent. “The retailer creating reasons/ experiences for shoppers to want to go in-store and break their curbside/ delivery habits.” Other responses included: • “Attractive and informative displays with effective consumer marketing elements will still drive the highest lift.” • “Exclusive products and innovative merchandising.” • “Experiential marketing. Give shoppers a reason to go to the store. Something that they cannot experience from the comfort of their own home.” • “On-shelf signage, merchandising complementary items together, building brand awareness online so that the consumer is familiar prior to in-store shopping, and onshelf promotions.”
Focusing further on engagement, we asked what factors contribute to a retailer’s loyalty program, offering the best opportunities for engaging shoppers. “Being able to do precision targeting,” said one respondent,
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PATH TO PURCHASE TRENDS 2022
Retailers’ ability to share actionable shopper data to drive more effective marketing Ability to share actionable data
7-Eleven (n=21) Albertsons (n=43)
43%
26%
Ahold Delhaize (n=33)
14% 29%
Best Buy (n=14)
29%
42%
38%
Publix (n=35)
44% 27%
Walmart (n=56)
23%
Whole Foods (n=25)
24% Excellent
61%
29%
71% 54%
24%
47%
53%
17%
57%
44%
15%
39%
62%
50%
50%
57%
43%
64%
36%
51%
49%
34%
66%
23% 9% 20% 16%
30%
20%
60%
40%
19%
48%
52%
48%
52%
60%
40%
15%
26%
46%
20% 24%
Poor
23% 20%
27%
39% 24%
30% 9%
27%
Good
39%
29% 55%
22%
64%
61%
34%
40%
Walgreens (n=23)
66%
36%
13%
34%
31%
13%
35%
7%
46%
15% 17%
48%
Southeastern Grocers (n=27) 11%
7%
46%
31%
ShopRite (n=31) 3%
87%
39%
31%
18%
19%
Sephora (n=10) 10%
Total Wine (n=15)
33% 46%
14%
56%
13%
23% 9%
31%
27%
Sam’s Club (n=32)
Target (n=47)
24% 52%
14%
44%
13%
27%
36%
PetSmart (n=11)
14%
16%
39%
25%
91%
24% 7%
35%
22%
Lowe’s (n=16) Meijer (n=35)
32%
39%
Kroger (n=39)
71%
9%
22%
61%
15%
29%
29%
39%
Data sharing is a revenue source
9% 40%
36%
Dollar General (n=31) 10% Family Dollar (n=26) 15% Home Depot (n=23)
26% 27%
27%
Costco (n=41) 5% CVS (n=31) 16%
19%
39%
47%
Aldi (n=15) 7% Amazon (n=55)
H-E-B (n=34)
10%
33%
18%
Data sharing is collaborative
28%
60%
40%
20%
48%
52%
11%
41%
59%
44%
56%
Don’t share
Please take into consideration the low sample sizes (n=) for some retailers. Retailers with fewer than 10 responses are not shown (Petco, Ulta) Source: P2PIQ Trends Report 2022
For “ability to share actionable data” results, we present the retailers in alphabetical order. And we caution you to consider the sample size (n=) and not read too much into the results for those with a lower number of respondents. We encourage you to look primarily at the “excellent” and “good” percentages — and those two answers combined. Kroger, Amazon and Best Buy received the highest percentage of “excellent” ratings, while CVS and Home Depot have the highest “good” or better ratings. We also asked whether each retailer’s data sharing was “collaborative” or “a revenue source.” PetSmart, Target, Total Wine and Sephora received the highest marks for being collaborative, while respondents said Ahold Delhaize, Aldi, 7-Eleven and CVS used data more for a revenue source.
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PATH TO PURCHASE TRENDS 2022
offering an example. “Target is able to target select segments (e.g., demo, lapsed, category, etc.) in their loyalty program.” “The ability to tap into the retailer’s loyalty data for targeted programming to meet specific objectives of the manufacturer,” said another. “The ability to engage shoppers at the point of decision and the ability to read the long-term result of that engagement,” answered another. “Sampling is a great example. It’s one thing to know the immediate impact, but the worth is the impact over the next two or three occasions.” A few of the respondents would like to see more from retailers in this area. For example: • “I would say making it easy to see offers both in-store and online. I’m not sure if any one retailer has a grasp on this yet, at least not in the adultbeverage category.” • “I don’t see any retailer doing anything unique in this space to build true loyalty/love for the retailer.”
Retailers’ effectiveness at segmenting online sales vs. brick-and-mortar sales 7-Eleven (n=21) 5% Ahold Delhaize (n=33) 3% Albertsons (n=42) 7% Aldi (n=15)
29%
39%
27%
31%
Amazon (n=55)
48% 36%
Home Depot (n=22) 9% Kroger (n=38) 24%
47%
Publix (n=34) 9% 21%
Sephora (n=10)
20%
ShopRite (n=31) 3% 15% 18%
Total Wine (n=15)
20%
24%
52%
18% 32%
34%
13%
32%
27%
18%
27%
44%
9% 24%
38%
24%
17% 10% 10%
60% 42%
15% 33% 41%
Walmart (n=54) 13%
19%
52% 56%
19%
20%
9% 18% 27%
27%
23%
49%
35%
38%
Excellent
13%
33%
24%
Walgreens (n=22) 9%
9%
29%
33%
36%
Target (n=45)
24%
40%
46%
Sam’s Club (n=29)
Southeastern Grocers (n=27)
41%
35%
Meijer (n=34) 6%
17%
50%
20%
11% 23%
32%
30%
17% 17% Family Dollar (n=25) 12% 24% H-E-B (n=33) 3% 27%
PetSmart (n=11)
18% 15%
42%
16%
Dollar General (n=29)
Lowe’s (n=15)
33%
23%
39%
Costco (n=38) 11% CVS (n=30) 7%
14%
33%
13%
35%
Best Buy (n=13)
SURVEY METHODOLOGY
38% Good
Poor
4% 24%
They can’t
Please take into consideration the low sample sizes (n=) for some retailers. Retailers with fewer than 10 responses are not shown (Petco, Ulta) Source: P2PIQ Trends Report 2022
PetSmart, Best Buy and Amazon received the highest marks for their effectiveness at segmenting online vs. brick-and-mortar sales. If you consider “good” or better ratings, Target and Sephora head the list. Approximately half of the retailers on our list had at least 50% of the respondents who worked with the chain say the retailer’s effectiveness at segmenting data was “poor” or that they couldn’t segment the data. Again for this chart, consider the sample size (n=) when analyzing the results.
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38%
30%
20%
Whole Foods (n=24) 4%
In October and November 2021, marketing executives at U.S.-based consumer product manufacturers were emailed a questionnaire to be completed online. The names were drawn from Path to Purchase IQ magazine subscribers, Path to Purchase Institute members and others in the EnsembleIQ database, with an emphasis on people with manager, director or senior executive titles. From those emails, 122 executives submitted surveys. Each respondent was entered into a drawing for one of four $100 Amazon gift cards.
29%
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PATH TO PURCHASE TRENDS 2022
RETAILER MEDIA NETWORKS:
RATINGS AND CHALLENGES
BY C Y N D I L O Z A
R
esponding to changing shopping behaviors and the incredible growth of e-commerce due to the ongoing COVID-19 pandemic, retailers in 2021 seemed to be either doubling down on their media network offerings or creating new networks altogether. As more marketers work with retailer media networks and retailers fully embrace their role as media companies, however, challenges are naturally coming to light. “Each network varies in terms of capabilities, search methods, etc., which makes providing one set of [key performance indicators] difficult to establish,” said one survey respondent when asked what has been most challenging in working with retailer media networks (RMNs). Respondents shared issues ranging from data sharing and ROI tracking to transparency and creative freedom. “Getting information reported back to our company is challenging,” noted another respondent. “When we are able to get it, the price is very steep (investment required to get ROI information returned).” Some RMNs are standing out above others with regard to different performance metrics — at
Do you work with retailer media networks?
Other
No
Determined campaign by campaign
18%
3%
18% National media
Shopper marketing
30%
Yes
82% Source: P2PIQ Trends Report 2022
50%
Source: P2PIQ Trends Report 2022
What’s your assessment of retailer media platforms? A simple money grab for the retailer
33%
2020 Results
23% Effective, but no more so than other digital media
43%
39% 14% 24%
More effective than other digital media
15%
Other
10%
Source: P2PIQ Trends Report 2022
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From which budget is your retail digital media spend most often allocated?
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least for now while some retailers build out their networks. We asked respondents to rate the retailer media networks with which they work based on their relative strengths in targeting effectiveness, measurement capabilities, ROI, data sharing, sales growth, creative freedom and trafficdriving capabilities. Not surprisingly, Walmart Connect, Target’s Roundel, Kroger’s Kroger Precision Marketing (KPM), Amazon DSP and Instacart were the networks our brand respondents worked with the most. Among these networks – and most other networks included in the survey – KPM led the way for its measurement capabilities and data sharing, with 62% of survey participants giving the network “excellent/very good” scores for these metrics. “Kroger and Amazon provide much better data without spend level commitments,” noted one respondent. Instacart Ads also did well among these topfive networks for its ROI with a majority of survey participants giving the network an “excellent/very good” score for the metric.
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Among other results: • Walmart Connect has some work to do as far as creative freedom: a majority of survey participants who have worked with the network gave the platform a “poor/fair” score for creative freedom. Otherwise, the platform generally performed well in all other metrics. • Amazon generally earned “excellent/very good” and “good” scores across all metrics. • 71% of survey takers who worked with Sam’s Club Media Group gave the platform an “excellent/very good” for sales growth. • 82% of participants who worked with Petco group gave the platform an “excellent/very good” for sales growth (although nearly threequarters noted the network’s targeting effectiveness and sales growth needs to improve). • Although the Chesapeake Media Group network is relatively new, a majority of respondents gave the platform an “excellent/very good” score for ROI. The concept of these networks representing legitimate “media” opportunities has also continued to grow: nearly a third (30%) of respondents said network buys are being funded by national media budgets, up from 24% in last year’s Trends survey and 18.2% in 2020. Skeptics remain, however, and continue to grow in numbers. About a third (33%) of survey takers said the networks are more a “money grab for the retailer” than an effective tool (an increase from 24% in last year’s survey). Moreover, 43% of respondents this year felt networks were “effective, but no more so than other digital media.” IQ
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PATH TO PURCHASE TRENDS 2022
RATING RETAILER MEDIA NETWORKS For any retailer media network you have worked with, please rate its performance in the following areas …
Best Buy
(Best Buy Media Network)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
50.0% 42.9% 64.3% 50.0% 57.1% 28.6%
21.4% 28.6% 21.4% 35.7% 7.1% 28.6% 14.3% 35.7% — 42.9% 35.7% 35.7%
42.9%
14.3%
42.9%
GOOD
POOR/FAIR
Respondents: 14
Costco
Ahold Delhaize (AD Retail Media)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
13.3% 20.0% 13.3% 13.3% 26.7% 40.0%
GOOD
POOR/FAIR
26.7% 60.0% 40.0% 40.0% 13.3% 73.3% 26.7% 60.0% 33.3% 40.0% 26.7% 33.3%
13.3% 33.3% 53.3%
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
36.4% 27.3% 27.3% 27.3% 18.2% 45.5%
27.3% 36.4% 9.1% 63.6% 27.3% 45.5% 18.2% 54.5% 36.4% 45.5% 27.3% 27.3%
27.3% 27.3% 45.5%
Respondents: 11
Respondents: 15
CVS
Albertsons
(Albertsons Performance Media)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
(CVS Media Exchange) EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
33.3% 20.0% 26.7% 6.7% 20.0% 20.0%
40.0% 26.7% 26.7% 53.3% 20.0% 53.3% 40.0% 53.3% 26.7% 53.3% 53.3% 26.7%
20.0%
40.0%
40.0%
Respondents: 15
Amazon (Amazon DSP)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
50.0% 30.0% 40.0% 20.0% 10.0% 20.0%
10.0% 40.0% 20.0% 50.0% 20.0% 40.0% 20.0% 60.0% 40.0% 50.0% 20.0% 60.0%
50.0%
10.0%
40.0%
GOOD
POOR/FAIR
Respondents: 10
Dollar General EXCELLENT/VERY GOOD
42.9% 37.1% 45.7% 28.6% 34.3% 28.6%
GOOD
POOR/FAIR
31.4% 25.7% 37.1% 25.7% 40.0% 14.3% 37.1% 34.3% 42.9% 22.9% 37.1% 34.3%
40.0% 37.1% 22.9%
Respondents: 35
(DG Media Network)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
42.1% 21.1% 31.6% 15.8% 36.8% 36.8%
31.6% 26.3% 26.3% 52.6% 36.8% 31.6% 42.1% 42.1% 31.6% 31.6% 21.1% 42.1%
21.1%
26.3%
52.6%
Respondents: 19
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eBay
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
27.3% 54.5% 18.2% 36.4% 18.2% 18.2% —
GOOD
POOR/FAIR
27.3% 45.5% 9.1% 36.4% 36.4% 45.5% 27.3% 36.4% 18.2% 63.6% 54.5% 27.3% 18.2%
81.8%
Respondents: 11
H-E-B
(H-E-B Retail Media)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
35.7% 28.6% 21.4% 7.1% 21.4% 14.3%
28.6% 35.7% 35.7% 35.7% 14.3% 64.3% 35.7% 57.1% 35.7% 42.9% 21.4% 64.3%
50.0%
21.4%
28.6%
GOOD
POOR/FAIR
Respondents: 14
Family Dollar
(Chesapeake Media Group)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
The Home Depot EXCELLENT/VERY GOOD
25.0% 33.3% 58.3% 33.3% 25.0% 25.0%
GOOD
POOR/FAIR
16.7% 58.3% 33.3% 33.3% 8.3% 33.3% 25.0% 41.7% 50.0% 25.0% 25.0% 50.0%
16.7% 33.3% 50.0%
(Retail Media+)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
Respondents: 12
Respondents: 14
Giant Eagle
Instacart
(Advantage Media)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
GOOD
POOR/FAIR
30.8% 30.8% 38.5% 38.5% 46.2% 46.2%
23.1% 46.2% 30.8% 38.5% 23.1% 38.5% 15.4% 46.2% 23.1% 30.8% 7.7% 46.2%
30.8%
23.1%
46.2%
21.4% 14.3% 64.3%
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
30.4% 26.1% 52.2% 26.1% 47.8% 21.7%
GOOD
POOR/FAIR
13.0% 56.5% 43.5% 30.4% 17.4% 30.4% 21.7% 52.2% 21.7% 30.4% 30.4% 47.8%
13.0% 47.8% 39.1%
Respondents: 23
Kroger EXCELLENT/VERY GOOD
31.3% 56.3% 31.3% 37.5% 37.5% 18.8%
GOOD
POOR/FAIR
50.0% 18.8% 6.3% 37.5% 31.3% 37.5% 18.8% 43.8% 31.3% 31.3% 31.3% 50.0%
50.0% 12.5% 37.5%
Respondents: 16
(Kroger Precision Marketing)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
48.3% 62.1% 34.5% 62.1% 24.1% 24.1%
GOOD
POOR/FAIR
24.1% 27.6% 13.8% 24.1% 41.4% 24.1% 24.1% 13.8% 41.4% 34.5% 44.8% 31.0%
27.6% 31.0% 41.4%
Respondents: 29
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42.9% 21.4% 35.7% 64.3% 14.3% 21.4% 35.7% 42.9% 21.4% 64.3% 28.6% 7.1% 42.9% 42.9% 14.3% 21.4% 28.6% 50.0%
(Instacart Ads) EXCELLENT/VERY GOOD
Respondents: 13
Gopuff
EXCELLENT/VERY GOOD
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PATH TO PURCHASE TRENDS 2022
Meijer
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
Target EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
28.6% 42.9% 28.6% 42.9% 57.1% 21.4%
42.9% 28.6% 21.4% 35.7% 50.0% 21.4% 28.6% 28.6% 14.3% 28.6% 28.6% 50.0%
28.6%
35.7%
35.7%
Respondents: 14
Petco
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
(Roundel)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
27.3% — 72.7% 18.2% 18.2% 63.6% 36.4% 36.4% 27.3% 81.8% — 18.2% 27.3% — 72.7% 45.5% 18.2% 36.4% 45.5% 18.2% 36.4%
Wakefern
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement) Respondents: 18
Sam’s Club
Walgreens
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
17.6% 29.4% 52.9% 35.3% 23.5% 41.2% 29.4% 35.3% 35.3% 35.3% 29.4% 35.3% 70.6% 29.4% — 41.2% 35.3% 23.5% 41.2% 11.8% 47.1%
Respondents: 17
Shipt
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
GOOD
POOR/FAIR
40.7% 25.9% 29.6% 44.4% 40.7% 48.1% 40.7% 40.7% 48.1% 40.7% 29.6% 48.1%
22.2% 40.7% 37.0%
(Walgreens Advertising Group)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
44.4% 27.8% 44.4% 22.2% 33.3% 22.2%
22.2% 33.3% 33.3% 38.9% 11.1% 44.4% 16.7% 61.1% 16.7% 50.0% 33.3% 44.4%
50.0%
16.7%
33.3%
GOOD
POOR/FAIR
EXCELLENT/VERY GOOD
40.0% 20.0% 30.0% 40.0% 50.0% 50.0%
30.0% 30.0% 60.0% 20.0% — 70.0% 20.0% 40.0% 20.0% 30.0% 10.0% 40.0%
30.0%
20.0%
50.0%
GOOD
POOR/FAIR
Respondents: 10
Walmart EXCELLENT/VERY GOOD
GOOD
POOR/FAIR
25.0% 37.5% 18.8% 25.0% 18.8% 37.5%
12.5% 62.5% 18.8% 43.8% 31.3% 50.0% 25.0% 50.0% 31.3% 50.0% 25.0% 37.5%
25.0%
43.8%
31.3%
Respondents: 16
(Walmart Connect)
Targeting effectiveness Measurement capabilities ROI Data sharing Sales growth Creative freedom Traffic-driving capabilities (off-site media placement)
EXCELLENT/VERY GOOD
21.9% 25.0% 21.9% 21.9% 28.1% 3.1%
46.9% 31.3% 43.8% 31.3% 40.6% 37.5% 31.3% 46.9% 40.6% 31.3% 43.8% 53.1%
25.0%
37.5%
37.5%
Respondents: 32
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33.3% 25.9% 11.1% 18.5% 11.1% 22.2%
Respondents: 27
Respondents: 11
(Sam’s Club Media Group)
EXCELLENT/VERY GOOD
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15 EMERGING BRANDS TO WATCH
15 EMERGING BRANDS TO WATCH
From cannabis-infused drinks to sustainably packaged cleaning products to a new breed of personal care items and everything in between, these newcomers in the CPG space are responding to evolving consumer trends and changing the game. Keep your eyes on these brands making big moves. BY J E N N Y R E B H O L Z
The retail world has been an evolving landscape for the past decade. So has the world of consumer packaged goods. With the onset of the pandemic, shopper behavior continued to evolve at an exponential pace, with new factors coming to the forefront, including a whole new level of contemplation about life and how to live, work and survive at home. From a greater focus on wellness and healthy living to sustainability, the pet adoption boom and a conscious consumer mindset, people were looking deeper at the brands they were buying and the impact of the products they were selecting for themselves and their families. This shift in priorities set the stage for a host of emerging CPG brands to enter the space. While some of these brands have been finding a place in their market categories for numerous years, several are more recent introductions. Here’s our roundup of the emerging brands you may want to keep track of this year.
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Spot & Tango
Category: Pet Spotandtango.com When it comes to furry friends, consumers are happily investing in their health and well-being. The pet adoption boom in 2020 spurred a spike in pet care industry sales, which show no signs of slowing down. The ongoing humanization of pets is a clear trend, with owners exploring premium food selections — like Spot & Tango — for their fur babies. Russell Breuer and his wife Molly started Spot & Tango in their kitchen, preparing fresh meals from scratch (from family recipes) for their dog, Jack. They wanted to provide the very best nutrition for their pet, so Spot & Tango came to life with the goal of improving the lives of pets and their parents. Spot & Tango recipes incorporate real food locally sourced from farms and human-grade suppliers in the U.S. The recipes are made with 12 simple ingredients (UnKibble has 14 ingredients). There are no artificial ingredients — no powdered meat meals, no artificial additives or preservatives, and no soy, wheat, gluten, antibiotics or GMOs. Fresh and UnKibble are the two types of food offerings. With the Fresh recipes, customers receive a customized meal plan for their dog, so the food supports their weight, breed and dietary needs. This line appeals to pet parents looking to serve the freshest food possible, and it is a good alternative for picky eaters and aging dogs. The UnKibble option (approximately 40% less expensive than other fresh options on the market) utilizes a “Fresh Dry” process, whereby fresh, whole food ingredients are combined and then chilled, so the water can be extracted in a unique low-pressure environment. This method yields minimally processed, shelf-stable food with only human-grade ingredients. “Spot & Tango is a mission-driven brand,” says Breuer. “We believe that pet health and wellness is a right, not a luxury. We’re constantly working to introduce new recipes and products to meet customers’ needs.”
Dropps
Category: Household Cleaning Products Dropps.com COVID-19, combined with extreme weather conditions, has consumers re-evaluating cleanliness as well as their environmental footprint. Market reports indicate the global household cleaning products category is positioned for growth. Enter Dropps, an eco-friendly household cleaning brand that pioneered the original laundry detergent pod in 2006. The company is committed to effective, eco-responsible and convenient products, with a goal to simplify life for people and the planet. The brand provides ingredient transparency, maintains high sourcing standards, uses eco-responsible packaging and is manufactured in the U.S. In 2017, Dropps was awarded the EPA Safer Choice Partner of the Year by the U.S. Environmental Protection Agency (EPA). In 2020 as the company was experiencing record-breaking growth, it updated its brand identity to support future success, including the expansion into other areas of home with reusable Swedish dishcloths, seasonal scents and Active Wash laundry detergent pods. “Dropps is remaking cleaning for good. Our purpose is to make life simple — for both people and planet,” said Jonathan Propper, founder and CEO of Dropps, in a media release. “We are driven to make life easier for individuals and families, and to do the right thing by providing everyday products that are both eco-responsible and economical, which, if multiplied across a multitude of individuals and families, can have a measurable impact on the planet.”
Blueland
Category: Household Cleaning Products Blueland.com Blueland is another brand providing cleaning solutions with an eco-responsible mindset. According to the Blueland website, since 2019 the brand’s products have helped eliminate more than 1 billion single-use plastic bottles from landfills and oceans. The brand story is expressed as “a cleaner planet starts at home.” That is where the journey started for CEO and Co-Founder Sarah Paiji Yoo. As a new mom, she was overwhelmed to learn about all of the single-use plastic being thrown away — and wanted to do her part to make a difference. The basics of the system is purchasing a “Forever Bottle” once, and then refilling it with water and the appropriate cleaning or soap tablet. According to the company, the refill tablets are more than 30 times smaller than the average cleaner. And the reusable Tritan and glass Forever Bottles are BPA- and antimony-free. In addition to the brand’s bottles, shakers and tins, the company uses recyclable shipping boxes, paper-based tape, compostable refill packaging, no single-use plastic and water-based inks. Blueland is B Corp and Cradle to Cradle Certified. The brand has been carbon neutral since 2020 and was Climate Neutral Certified as of 2021.
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15 EMERGING BRANDS TO WATCH
Goli Nutrition
Category: Supplements Goli.com Consumers have a whole new perspective on health and wellness. From physical fitness and mental health to proper immune system support and smart dietary choices, there is a desire to stay as healthy as possible — and a growing interest in supplements. Goli Nutrition is the creator of the Apple Cider Vinegar Gummy — a patented formula that combines apple cider vinegar with vitamins B9 and B12 to help support immune health, cellular energy production, heart health, a healthy nutrient metabolism, a healthy nervous system and overall good health, according to the company. Goli Nutrition’s products are non-GMO, vegan, gluten-free, unfiltered, gelatin-free and free of chemicals and artificial ingredients. The brand touts itself as a peoplefocused nutrition company aimed at providing products to support sustainable wellness. In that spirit, Goli Nutrition partners with Vitamin Angels to combat childhood malnutrition. Each purchase of Goli Gummies provides a 1-for-1 vitamin grant to provide a child in need with a six-month supply of vitamins.
Olipop
Category: Beverage Drinkolipop.com While there are many consumers who are dedicated brand fans of their favorite soda, the focus on health and wellness translates into exploring options for drinking habits. Olipop is a fast-growing functional beverage brand, co-founded by Ben Goodwin and David Lester, focused on bringing the benefits of digestive health to a mass audience. It is a clinically backed beverage designed to bring fiber back into American’s diet. According to data shared by Olipop, humans used to get 150 grams of fiber a day compared to now only 16 grams of fiber. In combating this “fiber gap,” Olipop is said to so far have contributed more than 75 million grams of fiber to the American diet. Olipop is made with “OLISMART,” a blend of eight unique botanicals, plant fibers and prebiotics. It comes in six flavors: Vintage Cola, Strawberry Vanilla, Orange Cream, Classic Root Beer, Ginger Lemon and Cherry Vanilla. The brand is bringing consumers soda with digestive health benefits and, according to company-released information, the refrigerated beverage has yielded 6x retail door growth and 10x revenue growth.
Vital Proteins
JuneShine
Another brand that emerged out of a personal journey, founder Kurt Seidensticker was looking for a product to support his joint health after experiencing knee discomfort from running. Learning about ingestible collagen changed his approach to diet, and he launched Vital Proteins in 2013. The brand offers a wide range of premium collagen products with the goal of helping people live fuller, more vibrant lives. The premium collection of collagen products includes a selection of powders, supplements, drinks and gummies, designed to help people “reach their full potential and upgrade their wellness routines.”
JuneShine was founded by former college roommates Forrest Dein and Greg Serrao to be a new type of alcohol brand — a product to support healthy, active lifestyles without sacrificing flavor and fun. It is brewed with real, organic ingredients and no artificial coloring, GMOs, pesticides or processed corn rice or syrup: just green tea, honey, fruit juice, spices and a jun kombucha base. According to JuneShine, it is recognized as the No. 1 hard kombucha brand in the U.S. with more than 10 million cans sold. The refreshing beverage is 6% ABV and approximately 145 calories per can (only 2-3 grams of sugar per can). It comes in flavors such as Grapefruit Paloma, Midnight Painkiller and Blood Orange Mint. The brand is also committed to environmental consciousness. In partnership with Climate Neutral, JuneShine is 100% carbon neutral, and also donates 1% of all sales annually to 1% For The Planet, a collection of environmental nonprofits working to fight climate change.
Category: Supplements Vitalproteins.com
Category: Beverage (Hard Kombucha) Juneshine.com
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15 EMERGING BRANDS TO WATCH
Aunt Jackie’s
Category: Personal Care (Hair) Auntjackiescurlsandcoils.com With the breadth of emerging beauty brands recently, it is clear that consumers want products that address their unique personal care needs. A slew of newcomers are not only delivering a customized experience, but they’re doing so with a conscience. Aunt Jackie’s believes better products support better hair. The brand’s products are sulfateand paraben-free and contain no mineral oil or petrolatum. The products utilize eco-friendly preservatives to deliver high-quality, sustainable products with long shelf lives. From customized product regimens to a supportive Curl Clique community platform, Aunt Jackie’s is committed to “providing high-quality products for textured hair that help women and families embrace their natural curls, coils and waves to achieve healthy hair.”
Category: Cannabis Beverage Drinkcann.com
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Category: CBD Beverage Shopcanopy.com In 2020, Canopy Growth Corp. launched Quatreau, a premium ready-to-drink, CBDinfused sparkling water, in the U.S. market after a successful rollout in Canada. Quatreau is described as a functional zero-sugar drink that is a natural low-calorie beverage alternative. It is a sparkling water with 20 milligrams of premium, U.S. grown hemp-based CBD in four flavors: Cucumber + Mint, Passionfruit + Guava, Ginger + Lime and Blueberry + Acai. “We have proven our beverage strategy in Canada, where we are currently the market share leaders in CBD-infused, ready-to-drink beverages,” said Canopy Growth President and Chief Product Officer Rade Kovacevic in a media release. “Beverages are fueling growth in the CBD category, and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero-sugar option.”
Cann
Cann is a cannabis-infused social tonic created by Jake Bullock and Luke Anderson in 2018. Another innovative garage startup story, the brand describes the product as “the future of social drinking.” As an alternative to alcohol, one of the promoted benefits is a similar buzz without a hangover in the morning. Made from five simple, natural ingredients, it comes in flavors such as Lemon Lavender, Blood Orange Cardamom and Grapefruit Rosemary. In addition to all-natural flavors (not from concentrate), it is lightly sweetened with a touch of agave. It has no gluten, no Stevia and is non-GMO. This cannabis-in-a-can product offers consumers a micro-dose of 2MG THC. It gives partygoers and happy hour patrons a buzzworthy option free of alcohol (according to the company, effects can be felt within 10 minutes, but also tend to subside at a faster rate, approximately an hour).
Quatreau
Dr. Squatch
Category: Men’s Personal Care Drsquatch.com Dr. Squatch is “raising the bar on men’s personal care products.” The brand boasts natural products — formulated specifically for the needs of men — with no harmful ingredients. Founder and CEO Jack Haldrup brought Dr. Squatch to market due to his own skin condition, psoriasis. While he finally found a natural soap at a farmer’s market that worked for him, he wanted to create something more accessible and made for men. The Dr. Squatch product line includes bar soaps, hair care, deodorant and toothpaste. The brand offers a variety of scents, such as Pine Tar, Fresh Falls, Bay Rum, Wood Barrel Bourbon, Cedar Citrus, Grapefruit IPA and Cold Brew Cleanse.
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15 EMERGING BRANDS TO WATCH
Versed
Cerebelly
The Versed mission is to “make good skin and clean products for all.” The products are formulated to the highest European Union standards, avoiding more than 1,350 toxins and questionable ingredients. In addition, the brand is committed to reducing waste, lessening its carbon footprint and playing its role in preserving Earth’s ecosystems. The brand promises to keep things real, “high-performance, not hype.” This includes being a source of information and expertise. The website offers an extensive Ingredient Glossary as part of its “The Good Skin Blog” and numerous ways to give customers personal attention — from prescriptive icons and a Skin Decoder quiz to a DM and text message-based Skin Hotline.
Looking for baby brain food? Dr. Teresa Purzner, a neurosurgeon and mom with a PhD in Development Neurobiology was looking for the right baby food for the first of her three children. The available options were lacking the daily value of nutrients she believed were important for the growth of a baby’s brain — for her children and kids everywhere. She partnered with her brother and tapped into a team of world-class pediatricians, nutritionists and food scientists to create Cerebelly, a product line that provides 16 key nutrients for the growing brain. The brand believes there is a better way to nourish children, so “Cerebelly unites neuroscience, nutrition and organic, farm-fresh food to give them the very best from the very start.”
Category: Skincare Versedskin.com
Category: Food (Baby) Cerebelly.com
Hello Bello
Function of Beauty
Category: Personal Care (Shampoo/body wash/skin) Functionofbeauty.com
Category: Personal Care/Cleaning (Baby) Hellobello.com
Launched in 2015, Function of Beauty offers customizable hair, skin and body care products. In addition to the company’s commitment to be clean, ethical and sustainable, the brand is socially conscious with a mission of supporting women and girls in STEM (science, technology, engineering, mathematics). A distinctive detail of the startup story was the decision to build its own state-of-the-art factory (in Catawissa, Pennsylvania) in order to be able to create its customized products at scale. It has since expanded with a second facility in Paxinos, Pennsylvania. Cruelty-free and 100% vegan, the brand currently uses more than 60 natural ingredients to create custom formulas — products free of sulfates, parabens and phthalates. The website has a running tabulation (with a last seen total) of 87,221,245,070,160 unique formulas.
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In addition to what’s best for our bodies and our pets, brands are tapping into what is best for babies. Celebrities Kristen Bell and Dax Shepard co-founded the premium and affordable baby product line Hello Bello with Sean Kane, Jay McGraw and Jennifer Pullen. Launched in February 2019, the brand aims to give parents the best products for their kids at a budgetfriendly price. Hello Bello manufactures and distributes products such as diapers, wipes, toiletries and cleaning supplies — more than 100 family essentials. The brand is committed to creating products that are good for babies, parents and the planet. According to its mission statement, “We believe in premium for all because every baby deserves the best.”
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Immersive Brand Experiences Looking to further deepen your connection with consumers? Take inspiration from these CPG and DTC brands that came to life via physical spaces and pop-ups designed to engage shoppers and build a brand fan base. BY J E N N Y R E B H O L Z
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o matter the shopping channel, brand success depends on the basic principle of consumers buying products. And brands have learned that by developing a deeper connection with consumers and nurturing a relationship, a continuous purchasing cycle can be achieved. This relationship development has uncovered the importance of delivering memorable brand experiences. Even pre-pandemic, brands were working with creative teams and forming unique collaborative partnerships to curate immersive experiences to surprise and delight shoppers. From pop-up shops to new DTC retail spaces, CPG brands are seeing the power of directly connecting with shoppers to gain market share and create a brand fan base. “We continuously see the push toward direct-toconsumer relationships. You are seeing that more and more in the CPG world and seeing a lot of experiential things happening, even pre-pandemic,” says Melissa
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Gonzalez, CEO and chief strategist of The Lionesque Group, an MG2 company. “It’s about creating that emotional connection with the brand and taking it beyond the product on the shelf. Companies are investing in creating deeper connections that entrench the consumer in the lifestyle and value proposition of the brand.” While astute brands have been leveraging the online experience and connecting with consumers wherever they are, especially since COVID-19 hit, physical retail and in-person experiences deepen the brand-consumer relationship. Shoppers are craving opportunities for exploration and discovery — to get out of the house, be inspired and feel a sense of community. From ritualizing a daily event to offering personalization and customization, immersive experiences open consumers’ eyes to the possibilities of a product and increase the lifetime value of the brand. “With the overwhelming adoption of online exploration
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and transaction, designing compelling brand experiences across the entire omnichannel landscape is more important than ever,” says Nick Burdett, Digital Director EMEA for Landor & Fitch. “Experience is the brand’s opportunity to truly differentiate in the marketplace, and to build affinity and preference with customers. And since the last best experience that anyone has anywhere becomes the minimum expectation for the experiences they want everywhere, brands must push the envelope to create relevant, intuitive and engaging experiences.” Considering the sea of choices in the CPG world, Gonzalez challenges brands to think about what is going to make a product stand out in a deeper way. She believes notable immersive experiences educate, demystify, inspire and empower consumers, achieving the emotional connection that helps a brand stand out. “If the brand can successfully do all of those things, I think they have a powerful opportunity to increase brand loyalty,” says Gonzalez. Read on to see how M&M’s, KitKat, 5 Element Food Therapy, Cuyana, Business & Pleasure Co. and Old Spice are bringing the lifestyle and value proposition of their brands to life in immersive experiences that surprise and delight shoppers.
M&M’S BERLIN
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n October 2021, M&M’s introduced an immersive flagship retail experience in Berlin. The brand experience celebrates M&M’s commitment “to creating a world where everyone feels they belong.” “At M&M’s, our aim is to always elevate and evolve our fans’ experiences with the brand. Creating immersive experiences like our newest Flagship M&M’s Berlin is a continued step forward in reaching the M&M’s fans in a meaningfully unique and dynamic way,” says Patrick McIntyre, director of global retail at Mars Retail Group. “M&M’s Berlin is our first store in
continental Europe allowing Berliners and travelers alike to experience M&M’s in a way they haven’t had the opportunity to before across all five senses.” The approximately 32,000-square-foot immersive retail experience exudes the vibrant energy and artistic roots of Berlin. The colorful space includes experiential highlights such as an M&M’s Cafe, offering M&M’s beverages, cookies and ice cream, as well as photo moments at the Karaoke Garden — a tribute to Berlin’s karaoke culture. At M&M’s Street Art, fans can visit a graffiti wall inspired by the Berlin Wall. Visitors can also shop M&M’s Berlin merchandise at the “I <3 Spati Shop,” which is a nod to the area’s distinct convenience shops, the Berlin Spati. “We’re really proud of how the brand’s commitment to creating a world where everyone feels they belong shines through in every element of the store,” says McIntyre. “Experiences in the store like the Karaoke Garden and M&M’s Street Art — both unique to the M&M’s Berlin store — are designed to encourage fans to celebrate and express their individual and creative true selves, something we strive to achieve in everything we do.”
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THE KITKAT CHOCOLATORY
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ocated in Sao Paulo, Nestle’s KitKat Chocolatory is a permanent retail flagship designed to “premiumize” the brand in South America, the largest confectionery market in the world, explains Nick Burdett, digital director EMEA at Landor & Fitch, which worked with the brand to develop the experience. The intent was to elevate the product through an experience centered around KitKat’s “Have a Break” tagline and connect with the local Gen Z market. “The goal of the experience was to truly differentiate KitKat in the marketplace with a flagship experience that was unlike any retail experience in the region,” describes Burdett. “We were guided by bringing to life a selection of experience principles (the experience DNA) that focused in on “product,” “play” and “community.” We were guided by these principles to design an experience that was engaging, truly immersive and inherently social.” The experience includes activations such as a virtual reality game in which consumers participate in the creation of a newly released product line while exploring a virtual KitKat world. Through social augmented reality, an in-store “treasure hunt” experience encourages consumers to engage with KitKat filters and interactive shareable content. Interactive kiosks also allow consumers to order products and even customize their own confectionery. “This move to automation empowers customers to order product without the need for a staff member present,” says Burdett. “The very deliberate push to integrate technology-enabled experiences also allows the brand to track performance and uptake in real time. Store managers can view the performance of each area of the store with absolute accuracy that allows them to test and learn and make incremental changes to improve overall performance for each square foot of the store.” According to Burdett, the experience has been
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a success since its launch with demand for product almost surpassing product availability. “The local community has viewed the retail space as a destination to hang out and socialize with their friends in a fun environment,” he adds. “And the online platform has seen a large uptake in the region with its innovative take on the purchase funnel.” The new retail format is planned to be rolled out across Brazil and South America as the brand grows market share. In early 2021, Landor & Fitch helped Nestle Brazil with an ecommerce solution as a follow up to the successful, award-winning physical retail experience. This was an opportunity for the brand and business to scale across the region despite COVID-19 impacting additional physical retail launches. “The concept was to create a virtual expression of the physical concept to provide a common design language and experience concept across all customer touchpoints in the region,” describes Burdett. “Think of it as a KitKat Chocolatory universe, common across all touchpoints.”
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IMMERSIVE BRAND EXPERIENCES
5 ELEMENT FOOD THERAPY
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haron Felice Tuggle learned about the benefits of fresh pet food and Chinese herbs through a personal experience— the cancer care of her Boxer-Rottweiler mix Hoochie. In 2016, she partnered with the doctor who helped her and Hoochie on their cancer journey, Certified Holistic Vet Dr. Anne Reed. They introduced 5 Element Food Therapy: a line of pet food supplements based in traditional Chinese veterinary medicine. Their mission to “Feed What They Need – Love Them Longer” began online with an array of products created to “help readjust and maintain balance in your pet’s system through supplements to their regular diet.” The business model required a lot of refrigeration and storage space, and Tuggle knew the education around the products could benefit from face-to-face interactions with pet parents, which led to her opening a 439-square-foot retail space in Oakland, California, in March 2021. “We typically sell wholesale, but with COVID-19 and people out walking their dogs, I thought it might be a great opportunity to connect with pet owners,” Tuggle says. “Adding a small retail area to support the storage space seemed like the best of both worlds.” Tuggle says retail sales have far exceeded online sales. Second quarter 2021 has yielded 125% growth compared to 2020. “The retail experience for my canine customer is one of complete delight,” she adds. “I have a Bone Broth Bar and Snack Bar, so the dogs rush in for free tastings.” While the retail space allows Tuggle to connect with and educate pet owners on the benefits of fresh food and supplements, it also provides opportunities to bolster the brand’s community ties. From honoring National Pet Grieving Day to playing off the area’s cherished culinary tradition of chicken and waffles (with Chicken & Woofles treats on Sundays), she is creating moments of surprise and delight for shoppers to engage with the brand on a deeper level. 5 Element Food Therapy continues to ship nationwide through its online store, with many loyal customers on the East Coast. “I absolutely have plans for future locations,” says Tuggle. “We are currently scouting the East Bay where our commercial kitchen is located. Ultimately, we would like to expand to cities like San Diego, Austin and Denver.”
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CUYANA
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an Francisco-based Cuyana is an innovative and sustainable fashion brand founded by Karla Gallardo and Shilpa Shah based on a “fewer, better” philosophy. The brand promotes the practice of purchasing fewer, but better, quality pieces. In celebration of the company’s 10-year anniversary, the brand partnered with Toyota to launch a unique pop-up retail experience — Cuyana In Motion: A Traveling Showroom. The Cuyana In Motion experience touts itself as “the first expression of the innovative Toyota Agile Space (TAS) concept, the reimagining of the use and provisioning of space for multiple new uses and applications,” according to a media release. The traveling showroom takes advantage of unused space, helping shopping centers monetize non-typical Gross Leasable Space. It provides brands like Cuyana the opportunity to test locations, gain
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exposure and gather data before making any long-term lease commitments. The design for this modern mobile shopping concept was a creative collaboration between Cuyana and architecture firm Bohlin Cywinski Jackson. The elevated shopping experience is a modular structure that occupies approximately eight parking spaces. It can be broken down, transported on a flatbed truck and re-constructed within one week. For Cuyana, the micro-concept translates its IRL experience into a physical showroom that provides a safe shopping environment in a designated location for approximately one month. Customers can purchase items from the curated collection on display as well as the entire brand offering with delivery available direct to their homes. The brand utilizes beacon technology to gather customer information and generate leads. “We’re incredibly excited to finally debut this concept focused on innovation and design while delivering exceptional service and accessibility,” says Shilpa Shah, cofounder and chief experience officer at Cuyana. “Our goal is to reimagine shopping in the post-pandemic era and bring the Cuyana brand with our fewer, better philosophy directly to our sustainability-minded customers.” The Cuyana In Motion pop-up experience features a thoughtfully curated collection of products, including some of its best-selling bags, small leather goods, accessories and jewelry. It launched in June 2021 at The Platform in Culver City, California. Cuyana In Motion was at Fashion Island in Newport Beach, California, through Jan. 19, 2022, with future stops to be confirmed.
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IMMERSIVE BRAND EXPERIENCES
BUSINESS & PLEASURE CO.
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usiness & Pleasure Co. (B&PCo.) translated its e-commerce experience into a physical expression of its sophisticated beach product brand with the introduction of its first retail store in May 2021. Dubbed The Laguna Beach House, the well-appointed space not only allows consumers to touch and feel the exquisite detailing and quality of the products, but it also provides the perfect setting for product testing on the spectacular Laguna Beach just steps away from the store. The brand is finding the physical retail introduction to be a huge success as it provides an opportunity to connect with the customer base to explain quality, pricing and other technical product details. “In the beginning, we built our product for e-commerce trade, focusing on state-of-the-art packaging and un-boxing experiences,” says a B&PCo. spokesperson. “We have these little product touches and surprises that most brands cut corners and save costs on. It’s been lovely to see these extra details being noticed in-person.” B&PCo. is planning for future locations in key cities around the globe. It is committed to creating brand experiences that reinforce the high quality and timeless appeal of the products and longevity of the brand.
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IMMERSIVE BRAND EXPERIENCES
OLD SPICE BARBERSHOP
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n March 2021, Procter & Gamble’s Old Spice introduced a brickand-mortar barbershop in Columbus, Ohio, playing off its roots as an iconic American grooming brand with an 80-year-plus history offering anti-perspirants, deodorants, body washes, body sprays, shampoos and hair stylers. The barbershop is Old Spice’s first and only retail space, and an opportunity to invite customers into an immersive brand experience. The location selection not only connects to the brand’s Ohio roots, but it also targets its core audience — a young, diverse demographic — in the vibrant downtown area. The classic, upscale design of the space sets the stage for the innovative experience. “Old Spice is turning the traditional barbershop on its head by welcoming guys into the Old Spice universe for a real-life experience with the brand they know and love,” Leif Edgar, Old Spice brand director, said in a media release. “Every single detail from the front desk to the mural in the back of the shop has been created for a truly memorable experience as we help our guys navigate the seas of manhood with the perfect haircut, style and hair grooming products.” Highlights of this immersive experience include a fully operational content studio, which allows the barbershop to extend its influence across the United States with content such as overthe-top haircuts and celebrity barber tips. The physical space also boasts a barber residency program as a unique draw — weekend residencies feature celebrity barbers styling hair, leading hair information sessions and shooting content spots. The Old Spice Barbershop also provides an opportunity for the brand to share new hair care and styling formulas, as well as a chance to deepen community connections with partnerships, such as serving a cobranded coffee by local Brioso Roastery and Coffee Bar. “Looking at what Old Spice did opening a barbershop, it’s not just about a product,” notes The Lionesque Group’s Gonzalez.
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“It’s a more immersive, comprehensive experience around the culture of what happens in a barbershop, and it organically creates a human connection beyond just what the brand is. That is pretty powerful when that can happen.” IQ
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Retail Activation
DTC Brand Fi Moves In-Store at PetSmart BY C H R I S G E L B AC H
Fi, a producer of smart dog collars that has made its mark through direct-to-consumer (DTC) sales, has expanded into retail through a partnership with PetSmart that made its product available in 250 PetSmart stores across 41 states and in Puerto Rico starting in early October 2021. The partnership emerged after months of talks as PetSmart works to modernize the product categories it offers in stores. “We’re proud to integrate with Fi to move forward our shared vision of empowering pet parents to be the best that they can be,” said Jennifer Helman, senior director at PetSmart in the initial release announcing the partnership. “Whether our customers are shopping for themselves or seeking a purposeful gift for the dog-lover in their lives, many of them now have the chance to learn more about Fi’s location and health tracking for dogs at a PetSmart near them.” The product launched in 2019 as the first LTE-M enabled GPS tracking collar and has since been used by millions of dog owners in the U.S. Key to the rollout at PetSmart are in-store displays — collaboratively designed by Fi and the PetSmart team — which focus on educational details about the collar’s capabilities. “The objective for our in-store display was to stand out and generate awareness about our collars as people shopped the store,” says Jonathan Bensamoun, founder and CEO of Fi. “The vast majority of people still don’t realize
you can see where your dog is — live on your phone.” This is one differentiator between the product and microchips, which Fi also makes. While a microchip allows a vet or animal control to scan your pet’s chip and look up your contact information in a registry, it doesn’t allow you to track your pet in real time. The Fi collar enables pet owners to track their pet via GPS anywhere in the U.S., from anywhere in the world. It also allows owners to create geofences that provide instant alerts if the dog escapes. The Fi collars additionally give pet owners smartwatch-style health insights on their furry pal through activity and sleep tracking. This includes the ability to monitor changes in the pet’s sleeping time and behaviors that could indicate health issues, and the ability to compare the dog’s activity to that of others of their breed, age and location. Fi dog collars are available at PetSmart
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stores and online at the PetSmart website in small, medium and large sizes, and in colors that include yellow, gray, blue and pink. As of Jan. 3, it was selling for $49.99, down from its initial retail price of $149.99. Besides the in-store displays, trainers and groomers at PetSmart locations have also been given coupons featuring a $10-off offer, along with one-sheeters that educate their clients on these features. The fact sheet leads with a statistic noting that 10 million pets get lost every year in the U.S. and that Fi helps with this issue by functioning like a cellphone for your dog, which helps you find your dog if it escapes or to check in on it when you’re traveling. An email touting the partnership was sent to the hundreds of thousands of pet lovers comprising the PetSmart and Fi email lists. The campaign also included an Instagram giveaway and social media announcements to spread awareness among the two partners’ combined audience of nearly 1 million followers. According to Bensamoun, Fi remains primarily focused on DTC sales outside of this PetSmart partnership, but the company is always exploring the right retail opportunities. “While Fi’s magic takes place largely in our software, the collar’s sleek design gets a unique chance to shine in the brick-and-mortar retail experience,” Bensamoun says. IQ
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ActivationGallery
Holiday 2021
Despite another chaotic year battling the COVID-19 pandemic — as well as resulting inflation, labor shortages and supply chain challenges — consumers didn’t shy away from spending during the 2021 holiday season. In fact, according to a report from MasterCard SpendingPlus, holiday sales jumped 8.5% compared to 2020. On the following pages, we provide a glimpse at how some retailers and brands activated during the holiday season, online and in stores. BY J AC Q U E L I N E B A R B A
Bark continued its ongoing partnership with Target, rolling out a collection of Christmas and Hanukkah dog toys exclusively at the mass merchant. The “Season’s Sweetings” line comprised 19 SKUs, including a menorah, “peppermint” pretzel and “gingerbark” latte dog toys. In stores, the collection garnered an endcap outfitted with signage depicting a QR code and offering a free custom holiday card. The code linked to a webpage powered by Barcelona, Spain-based Typeform on which shoppers could upload a picture of their dog and agree to be added to Bark’s email marketing list to receive a holiday card depicting an artistic rendering of their canine by email.
Mondelez International and Walmart doubled down on their ongoing “Create. Share. Give” cause platform with a “Season of Giving” recipe contest. Shoppers were able to submit up to 10 recipes incorporating Mondelez products through a web page within Walmart. com. The page linked to e-commerce pages for Mondelez products and hosted four “recipes for inspiration,” incorporating brands such as Oreo, Ritz and Nutter Butter. The recipe that received the most votes from other consumers from Nov. 30 to Dec. 4 earned a video from Buzzfeed’s Tasty as part of an ongoing partnership between the foodfocused social franchise and Walmart.
Target used a Facebook update to tout a free $10 store gift card to shoppers who spent $50 on select toys from the Lego Group’s flagship brand and items from the new “Lego Collection x Target,” which spans household items like colorful tumblers, holiday bricks and minifigures, as well as pet and people apparel. The offer ran from Dec. 12-18.
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TRION
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ips Str l e Lab Molson Coors Beverage Co.’s Blue Moon ran sponsored Facebook updates leading up to the holidays, encouraging consumers to “keep it simple” this year and leave more time for family and friends by getting beers delivered via Amazon’s delivery service, Fresh. A “Shop Now” button linked to an Amazon.com product details page for a 12-pack of Blue Moon available, for two-hour delivery, without exiting the social platform.
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ActivationGallery Aldi assembled six culinary influencers to join Kim Brazington, the discount retailer’s buying director for cheese, in creating a “Charcuterie Board of Directors” to provide inspiration for holiday entertaining both in stores and online. An endcap merchandising spreads, breadsticks and crackers from private label Specially Selected was outfitted with a header and floor cling encouraging shoppers to “make an #AllAldi charcuterie board.” The same message appeared on floor clings near the retailer’s selection of cheese and charcuterie, where a shelf tag positions Aldi’s private label Emporium Selection goat cheese as a “charcuterie board must-have.” Side panels encouraged shoppers to look for additional shelf tags identifying more must-haves throughout the store while also depicting a QR code that directed them to a campaign webpage within Aldi.us.
Mars Inc. also enticed consumers to shop for M&M’s through its own efforts on social media. Short, sponsored Snapchat ads elevated the confectionery brand’s “Make Any Occasion Sweeter” holiday campaign by demonstrating a simple recipe for M&M’s holiday popcorn. The shoppable ad linked to a webpage within the brand’s website listing “M&M’s Candy Flavors” via a “More” button without exiting the platform.
Branded, corrugated quarter pallet displays from The Lumistella Company (formerly CCA and B) merchandised various Elf on the Shelf and Elf Pets packages at Meijer. Under an “Adoption Center” sign, the brand tried to bring to life the “Scout Elves,” playing off the annual holiday tradition.
Procter & Gamble’s Pepto Bismol ran sponsored “Sweet Treat Relief” Instagram story ads to tout its Pepto Bismol Chews to ensure consumers “Stay merry” during the holidays. The gifstyle update depicted an animated gingerbread man and house and a “Pepto has you covered” message. A “Shop Now” button linked to a landing page (operated by SmartCommerce’s e-commerce enabler Click2Cart) that invited users to “check out” via CVS Pharmacy or Target, without leaving the platform.
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SC Johnson’s Glade deployed a holiday red version of its account-specific “Seasonal Air Care Center” quarter pallet display at Walmart. The display stocked a variety of the brand’s seasonal scents ahead of the holidays.
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Solutions & Innovations
Can Apps ‘Fundamentally Change’ Shopping? A roundup of technology-driven tools that drive consumer understanding, engagement and conversion on every step of the path to purchase. BY B I L L S C H O B E R
In December, Tempe, Arizonabased BrickSeek, a 6-year-old service that checks inventory both online and in-store at some of the nation’s largest retailers, launched its first app. The app is being made available to all membership levels — Basic (free), Premium ($9.99/month) and Extreme Deal Hunter ($29.99/ month) — on both the iOS and Android platforms. BrickSeek says it has inventory checkers operating with a number of major chains, including Walmart, Target, Lowe’s, Office Depot, Home Depot, CVS and Dollar General. The BrickSeek app’s barcode scanner lists available online offers for a specific product, as well as info that can be used for price comparisons across retailers and availability in-store nearby. All membership levels let users do basic things like create and manage alerts, but those with higher levels get to see key deals first, access nationwide trends data and greatly expand their personalized search areas.
Klarna, the Swedish global payments provider and shopping platform, unveiled an all-in-one shopping app in November that the company says “will fundamentally change” the end-to-end shopping experience. The app, available in the U.S., U.K. and 11 other Eurozone countries, will enable shoppers to perform multiple actions without having to switch between apps, such as: Shopping at all stores In November, Los Angeles-based ZeroWasteStore online, unlocking deals and price-drop alerts, and tracking (ZWS) extended its online sustainable marketplace delivery and returns on all Klarna and non-Klarna-bought through an app it claims will be a “first-of-its-kind” items. It also adds a “Buy Now, Pay Later” (BNPL) tool sustainable shopping experience. The company says that sets up interest-free flexible payments at all online that all orders handled through the app will be carbon retailers — regardless of whether they’ve partnered with neutral and packaged with zero waste, using only Klarna or not. This financing option is delivered through materials that are backyard compostable or recyclable. “virtual one-time cards” that Klarna says are free to use. The new app, available on Apple and Android devices, Future features may include a collective loyalty card offers enhanced search functions through categories space and visibility into price histories, reviews and store such as “low-waste swaps” and “zero-waste items,” while availability. Klarna, which has its U.S. headquarters in letting users discover brands such as Stasher, No Tox Life, Columbus, Ohio, says that 18 million consumers already Elate Cosmetics and Suds & Co. shop through the app every month.
Bill Schober is Editor Emeritus of Path to Purchase IQ. He’s been associated with the Institute since 1994, covering all aspects of consumer marketing with a special emphasis on the shopping experience. He welcomes any questions, comments, requests or pitches about Solutions & Innovations, and can be reached at bschober@ensembleiq.com.
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Solutions & Innovations Niantic, the company that created Pokemon Go, announced in November that it was working with Fold, a crypto firm with a bitcoin rewards app, to create Fold AR, dubbed the first-ever augmented reality bitcoin-earning feature “in the metaverse.” Atlanta-based Fold’s gift-card platform enables shoppers to earn Satoshis (sats) through its Visa rewards debit card or by buying prepaid gift cards for top retailers. Shoppers can then purchase clothes and be rewarded with up to 100% back on every purchase, or even a whole bitcoin that’s transmitted straight to their bitcoin wallets. Once Fold AR is fully deployed in 2022, instead of hunting for Pokemons named Bulbasaur, Fold users will be hunting bitcoin and other prizes that are “placed” in their physical surroundings by Niantic’s “planetscale” AR technology. Fold says it currently has 250,000 users.
In October, San Francisco-based Instacart acquired Caper AI, an artificial intelligence-powered “Smart Cart/Checkout” tech platform. New York-based Caper uses an object recognition system that enables shoppers to place bulk items (i.e., fruits and vegetables) into a cart without having to scan or weigh them, and then check out from the cart. The system features touch-enabled screens with maps that aid in-store navigation and suggest other purchases based on what is already in the shopper’s cart. Caper’s smart checkout counters use cameras and a weight sensor to auto-detect items placed on its counter. Eventually, Instacart says it plans to integrate these technologies into its own app and websites, as well as those of its 600 national, regional and local retail partners. Caper’s smart carts, which already are deployed at some Kroger and Wakefern stores, were the first approved under the National Type Evaluation Program (NTEP), certifying that it can accurately sell items priced by weight and measures.
Hamburg, Germany-based online service Neuroflash can write, test and validate marketing copy for you in English and German. Using artificial intelligence, Neuroflash is said to “learn your writing style” and then produce copy for everything from product descriptions for Amazon and other e-commerce sites to direct-marketing emails, Facebook and Google ads, and social media posts. Basically, after you enter your first draft into the service, the AI produces variations and then tests them. If, for example, you entered an email subject line, the AI will cough up alternatives and then predict the open rates for the different versions. The magic is in GPT-3, an “autoregressive language model” launched by OpenAI in 2020. GPT-3 is based on a neural network with 175 million synapses that developers claim can generate its “own thoughts” and texts that the rest of us can’t distinguish from those produced by actual humans.
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In November, Boston-based home decorating site Wayfair launched “Wayfair On Air,” a video-commerce experience that brings entertainment and design inspiration into a “seamless” mobile shopping experience. The content lineup includes studio show formats as well as segments shot inside the homes of various “creators,” such as celebrity chef Danny Boome, family blogger Amiyrah Martin and shopping expert Albany Irvin. New episodes are slated to appear daily throughout the week. Consumers can access Wayfair On Air through Wayfair’s app (iOS only for now), and browse every product featured on the episode while they watch, adding items to their own lists or to the shopping cart.
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Insider Intel
SmartyPants, Instacart Launch ‘New Year’ Campaign BY PAT H T O P U R C H A S E I N S T I T U T E S TA F F
Unilever’s SmartyPants vitamins and supplements brand teamed up with Instacart to drive awareness and sales during the category’s crucial “New Year” season. As part of the brand’s “New Year, New You” campaign, SmartyPants worked to own the first week of January on Instacart with prime advertising real estate on the grocery delivery and pickup service’s platform: a dedicated banner ad that sat at the top of the storefront page of any retailer where SmartyPants is sold, including Walmart (in limited markets), Meijer, Costco, Target, CVS, Walgreens and Sam’s Club, as well as Kroger’s flagship and Ralphs. Each ad linked to a landing page listing available SmartyPants gummy vitamins and supplements for men, kids, women and expecting mothers (prenatal) at the respective retailer, and also dangled a $1 digital coupon Instacart shoppers could apply to their carts throughout the month to further incentivize trial. “With this activation, we’re really excited, because we’re owning the most top-of-funnel prime real estate for the entire first week of the year,” says Amy Avellar, director of shopper marketing at SmartyPants. “SmartyPants is the only brand for this first week that you will see in this [Instacart] space. [It’s] a really large opportunity for
us to drive brand awareness and reach those new buyers and extend our awareness as much as possible.” The banner ad creative was unique to each day, with the brand testing and learning with different creative messaging and products featured, Avellar says. Marketing support also included a dedicated email to Instacart shoppers; targeted display ads, including Instacart’s new search keyword banner ads; and featured product ads on the platform throughout January. SmartyPants also was tapped by Instacart to be the solo brand partner for its own “New Year, New You” campaign. As the brand partner, SmartyPants’ products and branding was showcased within Instacart’s campaign, which ran throughout January and focused on engaging consumers as they hit a collective “reset” button. The New Year season (followed closely by back-to-school) is extremely important for the brand to capture those new buyers and those shoppers with renewed interest in the category to maximize that year-round consumer value, Avellar says. “New Year, New You timing is where we go the strongest in terms of activations and budget to support,” Avellar says. “We know if we’re able to convert them in January, we as a brand see really high repeat and retention.” Beyond Instacart, SmartyPants’ New Year effort this year also runs through
January/February 2022
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February and includes: • Retailer media networks, such as Walmart Connect and Target’s Roundel; • Third-party mobile media company Ogury, to execute targeted mobile ads driving consumers to specific retail partners or product pages for purchase; • Social media activity on its own accounts; • Influencers and paid amplification with influencer company Acorn; • Demos at Costco and Sam’s Club; • Meijer’s January beauty wellness box; • FSIs; • In-store shelf talkers and on-pack neckhangers through Neptune Retail Solutions; • Digital incentives via Ibotta and Prodege; and • Sampling through Target when it returns to the store. Across all the digital and physical touchpoints, message consistency remains key for the brand. “We’re creating this integrated marketing campaign that spans both digital and physical, because we know that the path to purchase no longer is straight, and we want to make sure that we have our brand presence and communication to the shopper at every step of the way,” Avellar says. IQ
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