Monday, August 23, 2010

Market Your Virtual Food to Social Users

In 2009, Internet users bought nearly $2.2 billion worth of virtual goods; experts forecast that number will increase to $6 billion by 2013. – eMarketer

 

Applications and social games that allow users to spend real-world money to enhance their online experience are the top earners in the virtual numbers game.

 

“Last year, social games, one of the most popular forms of social application, generated over $500 million in revenue — the majority of which came from social games on Facebook.” – Mashable

 

farmville

 

This growing trend of virtual shopping presents a huge opportunity for premium food marketers to repurpose their real-world product in an online world.

 

UK newspaper, The Guardian recently reported that Small Planet Foods, a subsidiary of General Foods, had introduced a new brand of organic blueberries that only exists in the virtual world where it is traded although the money needed to purchase them is quite real. The blueberries represent a “brand extension” of a real-world product which General Foods plans to use to establish a presence in FarmVille.

 

As consumers continue to spend more time engaging with social gaming tools, how can you integrate your food product into this virtual world? Is there an application or game that currently exists, such as Second Life or FarmVille, where you would like to create a presence? Or, would you create your own virtual world or game to engage customers? 

 

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Friday, August 13, 2010

Marketing Premium Food Comfort Overload

KFC got the food world buzzing with their outrageous Double Down Sandwich. Friendly’s tempts kiddie palates with the Mac & Cheese Quesadilla (with the option to add bacon or a hot dog). And now Denny’s joins the comfort food binge-fest with its Fried Cheese Sandwich.

 

dennys_friedcheesemelt_0810

 

For a mere $4, diners can enjoy a grilled cheese sandwich stuffed with fried mozzarella sticks complete with a side of French fries and marinara sauce, of course.

 

I’m all for taking the occasional comfort in food reminiscent of cozy childhood memories, but are we going too far?

 

It almost seems as if there’s some sort of contest to take comfort food to new heights (or lows) – Krispy Kreme hamburger, anyone? We can thank Paula Deen for that one.

 

Are we in so much need of comfort that plain ole’ comfort food just doesn’t cut it anymore?

 

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Friday, August 6, 2010

Ditch These Marketing Premium Food Trends?

Food trends tend to focus on the up-and-coming. We all want to know what consumers are going to clamor for next and be the first to provide it to them.

 

However, one bold writer for The Daily Beast is calling for an end to these still-hot trends:

 

Food Trucks: “As the mobile food market gets gourmet, its prices are skyrocketing past the $2 hot dog stands. And wouldn’t you prefer to eat that $7 banh mi pork sandwich or $9 Wagyu beef and broccoli at a proper table instead of standing on a street corner?”

 

There is something to be said for receiving sit-down service. However, much like fast food made a dining room out of our cars, the food truck provides diners with another alternative to enjoying their favorite foods.

 

Bacon: “Not since Elvis’ peanut butter, banana and bacon sandwich has there been such a craze for all things porcine. And while at first the enthusiasm of these bacon crusaders was contagious, sometimes it’s OK to make guacamole, or a Bloody Mary, sans pork.”

 

In a region where chocolate-covered bacon-on-a-stick is a highlight at our State Fair, I might have to tread lightly on this one. When used in moderation, bacon can add the perfect savory flavor to create a mouth-watering sweet and salty experience.

 

Truffle Oil: “Too many chefs have become heavy-handed with the infusion, using it more as a crutch than an accessory. The oil shouldn’t overpower the dish, which it ends up doing more often than not.”

 

I have to wonder if consumers would continue to gobble this lucrative product up if they knew it often wasn’t made from real truffles.

 

Cupcakes: “After witnessing them at every wedding, social function, and fashion show for the past two years we’re gagging at the sweetness. Are adults really waiting in line for a treat once reserved for fourth-grade birthday parties?”

 

Hmmm…the indulgence of cake wrapped neatly in a bite-sized package. I don’t see the issue with this one.

 

“Farm to Table”: “While this is one of the most admirable food trends to emerge recently, the term “farm to table” has lost all meaning as Sysco-loving chefs in the ‘burbs have co-opted the concept without really understanding it.”

 

I would have to agree that unless used properly, this term has the potential to lose all meaning (“organic,” anyone?), which is unfortunate because it represents a consumer desire to understand what it is they are eating.

 

Sliders: “Ultimately, this miniature menu innovation is a way for restaurateurs to charge more money for a cutesy dish versus serving a heftier, eight-ounce burger—and to leave diners wanting more.”

 

Like the cupcake, I see this as more of a trend toward smaller portion sizes. As long as ordering half a burger is not an option, sliders present an alternative for those diners who don’t wish to consume a full beef patty.

 

What do you think? Should we all get over these trends, or should the author get over her annoyance with them?

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Friday, July 2, 2010

Embrace Flavor to Market Premium Food

As food trends continue to evolve, so do consumers’ demand for flavor – and plenty of it. Premium food marketers may find success by tapping into the growing request for bold, daring flavor combinations.

 

According to The Wall Street Journal, the current flavor boom is a big change for a nation known for its mashed potatoes, chicken sticks, macaroni and cheese and other unadventurous fare. It’s a reversal that has been building since processed food first began to drown out regional cuisines during World War II, food historians say. Another contributing factor is the growing interest in ethnic cuisines. As the global stage continues to become smaller and more diverse, Americans are much more adventurous with their dining selections.

 

Some examples of food companies embracing the flavor explosion include:

 

  • Seasoning company McCormick & Co. Inc. says Americans now keep an average of 40 different spices, a figure that has grown roughly twice as fast in the past two decades as it did in the previous 30 years.

 

  • PepsiCo Inc.’s Frito-Lay brand recently introduced Doritos chip flavors labeled First-, Second- and Third-Degree Burn, made with jalapeno, buffalo and habanero flavors.

 

  • Gum-maker Wm. Wrigley Jr. Co. is using technologies such as the textured crystals it calls Micro-Bursts to deliver a more intense flavor as well as new sweeteners to make flavors last longer.

 

“Consumers expect more from a flavor. It’s kind of like moving from regular TV to high-def TV,” says Stephen Kalil, corporate executive research chef at Frito-Lay’s Culinary Innovation Center.

 

Do you think Americans’ need to spice things up will eventually result in a desensitization to natural flavors? Is there really too much of a good thing when it comes to flavorful foods?

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Thursday, June 17, 2010

Premium Food Marketers Win Social Media Race

Premium food brands are leading the way in social media marketing. In the first media measurement of its kind, Famecount.com recently announced that Starbucks is the most popular consumer brand in the social media world.

 

Food brands took six of the top ten spots in the consumer brand category:

 

1. Starbucks

2. Coca-Cola

3. Skittles

4. Whole Foods Market

5. Oreo  

6. RedBull

7. Zappos.com

8. JetBlue Airways

9. Dell

10. Woot!

 

To determine the leading consumer brands using social media, Famecount analyzed information from the top social media sites – Facebook, Twitter and YouTube. The only brand not using all three channels is Woot, which doesn’t have a YouTube presence.

 

In a press release, Daniel Dearlove, founder of Famecount.com, explained the importance of the study,

 

“This data is unique in that it gives us for the first time an accurate global ranking of the popularity of brands online. It is interesting to see established offline brands perform so strongly. This highlights the growing importance of social media in wider marketing campaigns, as well as the applicability of these channels to established brands, which may not have had a significant online presence previously. Social networks are helping them to tap into wider audiences and strengthen communications with existing consumers.”

 

While this information shows strong evidence that consumers are willing to claim loyalty to their favorite premium food brands, there is definitely a need for more statistical data about social media’s influence on brands. The Famecount study is a big step in the right direction and it will be interesting to see what evolves from this point on.

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Wednesday, June 9, 2010

Channeling Table Manners to Market Premium Food

We’re all familiar with the adage “Waste not, want not,” but has one Australian restaurateur gone too far?

 

Fed up with the waste left by diners, Chef Yukako Ichikawa of Wafu – a restaurant that offers “guilty free Japanese cuisine” in the suburbs of Sydney – has ordered her customers to eat everything on their plates or pay a penalty and be banned from her eatery. Conversely, diners who eat all the food they have ordered will receive a 30% discount.

 

Wafu’s website clearly defines the Chef’s expectations of her diners:

 

Eat-in Policy

First, read our policies and mission statement on our front door or on our website. If you agree to our terms (namely, not wasting food and sharing meals as if you would at home) we will gladly welcome you to Wafu.

 

Takeaway Policy

When using your own storage containers for takeaway food, we give you a 30% discount and stamp your Wafu card towards the reward of a $20 voucher to be used for anything in the store!

 

Using our containers incurs a $3 fee for EACH container used to package your meal. Trying to order takeaway without your own containers or plates may also result in refusal of service.

 

The restaurant has gained plenty of media coverage due to its odd (at least by American standards) dining requirements, and has received generally mixed reviews for the policies. Patrons who ranked the restaurant on Eatability typically either gave it high marks for the food or heavily criticized the service, claiming that diners who did not meet the policies were told to leave.

 

“[I] ate here ages ago and loved it, but when I came back, I have never been treated so rudely, by the senior staff. She said a few different things quickly about reading her Policy, which I was accepting of, fair enough, was her restaurant, but she was rude and got defensive when I asked for clarification and basically said we should go because we are not suitable customers/suitable for the restaurant.”

 

Are Ichikawa’s policies commendable or will her personal beliefs hinder the restaurant’s success?

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Monday, May 17, 2010

Should You Market Your Premium Food as Unhealthy?

Can premium food marketers benefit from swimming against the healthy tide? KFC thinks so. The company says it’s “pleased” with the attention its new Double Down Sandwich—featuring fried chicken as “bread”—has been getting, citing unprecedented response with young males, the primary target audience.

Rick Maynard, KFC spokesman, cited word of mouth that built from the test market outward, resulting in increased media attention, and more importantly, a record number of social media reviews and YouTube videos posted.

However, overall consumer perception of KFC may be suffering, as noted in an article from Nation’s Restaurant News:

Data from New York-based BrandIndex, which compiles consumer perception scores relating to hundreds of brands across several industries in the United States, revealed KFC may be giving back some gains from the positive buzz associated with last year’s launch of Kentucky Grilled Chicken.

Despite increased awareness for the brand during the Double Down’s ad campaign, KFC’s “buzz score,” which BrandIndex compiles from 5,000 daily consumer surveys by subtracting negative feedback from positive feedback, has declined steadily in the lead-up to the product’s debut. Among consumers 18 to 49 years old, KFC’s buzz score fell from 21.1 in mid-March to 11.5 on April 16, just days after its introduction, BrandIndex said.

Ted Marzilli, senior vice president for BrandIndex, called KFC’s strategy “high risk, with potential for high reward.”  It all depends on whether the product is seen as a way to treat yourself for eating well most of the time, or as another example of why quick service restaurants should be off the menu if you want to be healthy.

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Wednesday, May 12, 2010

Premium Food Marketing, Hold the Salt

Fat, sugar, carbs—they’ve all had a turn as the bad guy in American diets. Now, it’s salt. If you can tell a low-sodium story, now might be the time to do it.

The National Salt Reduction Initiative (NSRI)—a coalition of cities, states and health organization spearheaded by the New York City Health Department—is working to reduce Americans’ salt intake by 20% over five years.

NSRI has developed targets to guide company salt reductions in 62 categories of packaged food and 25 categories of restaurant food. The initiative includes voluntary two- and four-year targets for average salt levels in each category of food.

Heinz, Kraft Foods, Mars Food US, Starbucks Coffee Company, and Subway are among the first 16 companies to sign onto the initiative. Some companies have already made reductions; others announced plans to meet the reduced salt guidelines within a certain time period.

A report by the Institute of Medicine calls on the Food and Drug Administration to set maximum sodium levels for different foods. It has the support of a few key senators, who are planning hearings.

Others aren’t so sure. A recent Washington Post article quoted Lori Roman, president of the Salt Institute, a trade association, as saying the initiative was “not based on sound science.”

“The Italians eat about 40 percent more sodium than Americans, yet they have better cardiovascular health than Americans,” Roman said. “So it’s not the sodium. It’s an overall diet high in fruits and vegetables.”

Whether or not salt really is a bad guy, sodium levels in food are getting more scrutiny than ever before. How could you leverage a positive low-salt story, beyond packaging? Is there messaging in your advertising? On your website? Are you talking about low-sodium in your social media? Do your foodservice customers know that your product is low sodium? Are you helping them tell that story to their customers?

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Thursday, May 6, 2010

Top Functional Food Trends for Premium Food Marketers

Functional foods continue to draw heavy demand from consumers.

 

Food Technology magazine recently listed the top ten trends in the functional food category.

  1. Retro Health – Consumers are going back to the basics and seeking out foods that are lower in sodium, fat, calories and sugar. Whole grains and protein content are package claims that appeal to shoppers.
  2. Naturally Functional – Providing foods that are naturally high in nutrients and blending them with phytochemicals to achieve additional benefit is an appealing trend to consumers – think V8 Fusion Juice
  3. Functional Fill-ins – Shoppers, especially in the 18 – 35 age group, want snacks that offer more than just a sugar rush and provide a healthy alternative. Examples include nuts, trail mix, dry fruit, etc.
  4. Prime Timers – Caters to the age 50+ market who are looking to lower cholesterol, improve mind function and maintain bone health amongst other benefits. Heart-healthy oatmeal and cereal are doing well in this category.
  5. Chemical Warfare – Chemicals, additives, preservatives and artificial colors are among top food concerns for consumers who are doing what they can to avoid them.
  6. Ailing Adolescents – Addressing the growing problem of childhood obesity, consumers are seeking out “products that will prevent and perhaps even treat risk factors for serious diseases later in life.” Moms are monitoring their kids’ eating habits and want meals and snacks that provide
  7. Meddling in Medications – Consumers want an alternative to costly prescription medications and more natural medical solutions. Vitamins, minerals and pre/probiotics speak to these demands.
  8. Daily Dynamics – Improving daily performance, receiving an energy boost and enhancing beauty and exercise continue to rank high on the list of reasons consumers purchase functional foods and beverages.
  9. Get the Lowdown – Targeting lower-income shoppers with functional foods geared towards their needs and spending habits allows premium food marketers to tap into the fastest-growing income group.
  10. Foodservice – Restaurants continue to skew healthier on their menu options by including lower-fat options and kid-friendly items that also make moms happy. Those who label menu items with health claims such as “heart healthy,” see more demand for those items by diners.
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Monday, May 3, 2010

Premium Food Marketers Putting the Function in Food

As Americans continue to focus on health and health care, premium food marketers will find success in the functional food category, a top trend in food products. Functional foods include products that have added nutrients, vitamins, performance boosters, and often provide extra health benefits.

 

According to Food Technology, “Healthful positioning was a dominant factor in the success of new foods and drinks that reached blockbuster sales status in 2009.”

 

The category accounted for $37.4 billion in U.S. sales in 2009. In fact, six out of ten adults bought a functional food or drink in 2009, up from 48% who did so in 2008. One reason? With less time to create well-rounded meals, consumers are looking to food manufacturers to provide quick and easy meals that provide the health benefits they might otherwise be missing.

 

Mintel lists the top reasons consumers gave for purchasing a functional food item in 2009:

  • Supplement diet
  • Digestive health
  • Weight loss
  • Specific health issue
  • Energy boost
  • Mental focus
  • Eliminate stress

Will consumers continue to clamor for functional foods or will the category hit a plateau due to oversaturation? How can premium food marketers continue to tout the health benefits of functional foods without buzz words like “antioxidants,” “fortified” and “probiotic” losing their impact?

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