Grow your brand joining your consumer 24/7
In a context of slow growth for FMCG, brands across different categories must find new pockets of growth. Some brands manage to expand to new territories by targeting new moments of consumption. For food and beverages brands, occasions to connect with consumers are available not only in home but increasingly out of home as well and, depending on your current brand positioning, the other way round. Throughout the day consumers are giving brands countless opportunities to be chosen, but at the same time, an increasing number of players are joining the game, blurring the lines and barriers that used to be in place. Take Starbucks and Juan Valdez for example: 2 completely different companies that changed the way we all drink coffee ‘on the go’ and now are trying to be taken home by being present in the modern trade.
If your brand aims to succeed, then dominating consumer choices ‘throughout the day’ is an obligation. If your ‘comfort zone’ is currently ‘in home’, moving ‘out of home’ is mandatory.
4 facts to prove the relevance of out of home:
• Everyone eats or drinks out of home at least twice a week on average, being +17 years old the most frequent shoppers.
• Up to 40% of Food and Beverage occasions happen out of home.
• Despite Mexico having 60% more occasions than Brazil (108 vs 68 per year), Brazilians spend twice as much in each occasion (USD 3.8 vs 1.9).
• As a result, Brazil OOH market doubles the Mexican one: 11 billion dollars vs 6 billion USD in the last 12 months.
Given its reach and size, out of home means a huge growth opportunity for brands. However moving from in home to out of home demands a shift in our mindset: it is not only about your brand strategy within a category, but your role within a specific moment of consumption as #1 driver.
There are 5 elements that define the decision behind any moment of consumption. They are all deeply connected; some of them are even a result of the others. What’s more important, while some of them can be influenced by us, others are defined by the consumers. Considering this, in order to succeed you need to tackle each one of them.
You might find this perspective too theoretical or even too obvious, so let’s prove its relevance through 2 examples that show this underlying behaviour.
Depending on the snacking moment, your business opportunity could increase by 30% (US 1.76 vs 1.38). The potential categories to solve an apparently similar snacking occasion also change, as each moment is actually triggered by different motivations.
While dinner in home is meant to be shared, the decision for lunch out of home is completely based on the consumers’ desire. Different pack sizes become relevant in each moment.
Understanding what goes on in every moment must be the foundation of your strategy. As your partners, we also explore new territories and expand our view, joining your most valuable consumers throughout the day, stepping out of their homes into wherever they want to take us.
If your brand aims to succeed, then dominating consumer choices ‘throughout the day’ is an obligation.