Eyes on the Horizon of the CPG Industry: Insights from Catalyx’s CEO, Guy White
In this blog, we hear from Guy White, Catalyx’s Founder and CEO, as he shares insights on the CPG industry and its future amidst evolving brand and consumer needs. Read on to explore the challenges and strategies for success as our landscape shifts; from competition and category penetration to the growing demand for consumer-centric innovation, and why looking back at where we’ve been is vital to forecast exactly where we’re going.
How did we get here?
2022 was the year of the price increase. The entire industry used commodity price inflation and broader pricing pressures to drive through a once-in-a-generation hike across the board. Sometimes as much as 20%. What began as a nervous experiment soon became an industry trend, as it became increasingly apparent that short-term price elasticity was almost zero. As commodity prices settled back down, this ensured strong profit growth; as a result, all but two major listed CPG companies met or exceeded investor expectations.
However, we’ve seen this become a double-edged sword that may well come to bite all but the very best, going forward. Leading CPG executives have come out with a fairly consistent message that no more price inflation will be taken. So, this price and profit bump is now firmly baked into base numbers and will need to deliver top and bottom-line expectations through volume-led sales growth instead.
There are only two ways to do this; steal share from your competition, or drive category penetration. The first has winners and losers by definition. The second is notoriously difficult to do. Both require successful innovation – be it creative, commercial or product-based.
Problem is; in all but very rare cases – successful innovation takes time to build.
The challenge
What we are seeing is that the “Covid gap” (including the rise in remote working reducing innovation creation efficiency and unsettled consumer needs) has now meant a whole lot of innovation funnels are a whole lot emptier than they need to be. Firms that have powerful consumer-centric innovation processes, strong retailer ties to push optimised sales fundamentals, or excellent abilities to create resonant creative approaches will win. Of course, a few will simply get lucky with right place, right time bets. Unfortunately, however, the rest will fall short, and from what I’ve been noticing in the industry, I don’t think that many are expecting it.
For instance, we can already see in some recent earnings reports a fairly gung-ho messaging backed up by shaky numbers. Just one example is the recent earnings report from Bayer that shows volume sales decline being masked entirely by pricing. In my experience, that’s the start of a slippery slope. And they are not the only one.
“I think we will see an exodus to quality and to equity.”
Compound this with interest rate rises and suddenly you have a whole sector of mortgage-owning, premium brand-buying families that are having to make fairly dramatic changes to their spending patterns… with a huge wave of CPG products now as much as 20% more expensive than they were 12 months ago.
You only have to look as far as the weaker than expected US retailer results and the significant uptick in shoplifting being reporting in multiple markets to recognise the situation out there right now.
Adapting on the move
Based on these changes in the atmosphere, we expect things to bite in 2024/25, especially for those not taking action now. I think we will see an exodus to quality and to equity.
“Our clients are looking to find weak links in the competition’s armour that are frustrating their consumers.”
Price promotions will be used to plug gaps for struggling products in the near term, weakening the value offered within their categories. But strong innovators will ultimately steal the share and find ways of getting new users into their categories – and retailers will, of course, favour brands that maintain or grow value.
At Catalyx, we are starting to see many more briefs coming our way asking for support specifically in how to drive category penetration. Our clients want to know; what are the levers to get more people to use products on more occasions? Where are the new consumer groups that could be persuaded to enter into a category? Coupled with this, we’re seeing a significant uptick in work on demand spaces and unmet needs. Our clients are looking to find weak links in the competition’s armour that are frustrating their consumers.
It’s fascinating to see this trend in clients wanting far more consumer-centricity. It’s showing up from the start of the innovation process all the way to creative briefs. The very best are migrating away from the more traditional (and dangerously limited) approaches such as focus groups, to more modern ways of crafting innovation and creative briefs. We’re seeing it grow, brands’ search for approaches that will help guide their creative partners to manifest results that truly speak to consumers.
We are working hand in glove with our own partnerships to embed the consumer voice into the creative optimisation process. We’re continuing to help forward-thinking brands make sure that whatever they create triggers that volume growth. Our entire purpose is to ensure clients are on the side of the winners in the fast-approaching battle for share.
Interesting times ahead.
You can stay up to date with Guy on his LinkedIn.
Need fast, cost-effective insights, instead of just data? Talk with our team today to find out what Catalyx can do for you, we’re always ready.
Let’s talk. Connect with us today.
From Data to Magic: Mel Nicholls Explores AI-Driven Insights and the Role of Strategy Innovation at Catalyx
In an era marked by the constant quest for innovation, the evolution of the Market Research industry and exploration of AI-driven insights has been nothing short of remarkable. The demand for timely insights to drive market-leading innovations for CPG brands has produced a seismic shift in research methodologies and a world of new possibilities. As brands strive to meet the evolving needs of today’s consumers, many are turning to data-dense DIY research solutions or relying solely on routes with a narrow view such as focus groups, and experts everywhere are raising the question of how AI can revolutionise research’s efficiency. Stepping into this discourse is Catalyx’s newly-promoted Strategy Innovation Director, Mel Nicholls.
Mel has been immersed in the research industry for 16 years. Starting her career in the mixed method world, she discovered a natural aptitude for Qualitative research that she attributes to her knack for connecting with others. Putting her curiosity to use to dive into consumer habits and behaviours, Mel has always been person-focused. She’s worked across all sectors, specialising in commercial research (consumer finance, retail, tech and media, and FMCG), alongside public sector research. She joined Catalyx 2 years ago where she’s back to being focused fully on consumers.
We spoke to Mel to get stuck in.
The industry continues to ramp up. AI-driven insights, more ambitious client expectations, a movement towards quicker and quicker turnaround. How, as you see it, does Catalyx make its mark amid this?
We genuinely do things differently here. In the traditional agencies I’ve worked in, focus groups and surveys were the popular fixes. These routes have their place, but it can be limited. What makes Catalyx impactful is our methods.
I love face to face, but in this there is always a human influence that emerges in a group. People react to each other, fall into roles depending on the dynamic, and a lot of times it’s the luck of the draw. Traditional research is also about claimed behaviours, but getting to the real behaviour is a little more difficult to do. During Covid, there was a massive shift in the industry to online research. This is great for us and we’re embracing it at Catalyx; with our Crowd methodology, people are faceless and therefore more comfortable to share, and they’re not influenced by others. This has resulted in a much more meritocratic system.
“Consumers are more enabled and more inquisitive every day, they’re creating these fascinating and useful responses that only listening to claimed behaviour would completely misdirect you on.”
Still, there’s the matter of data vs insight. What we want, and what the client wants, is to get people not to tell us, but to SHOW us what they do, say, think, feel and want. If you’re innovating to create new products for people, you need to really understand the unmet needs, compensatory behaviours, and what consumers are actually doing with your product or its competitors, including the shortcuts they’re creating… which sometimes they themselves aren’t aware of.
Consumers are more enabled and more inquisitive every day, they’re creating these fascinating and useful responses that only listening to claimed behaviour would completely misdirect you on. For example, a recent study of ours has discovered that for consumers keeping chocolate in their fridges, the client’s presupposition is that it’s a temperature preference. When you actually plunge into the reality of behaviours, however, it’s got nothing to do with that – turns out the rougher texture is what they want more of.
“We’re sometimes unpredictable and that’s what I love.”
That’s what you miss with DIY. I know why clients go for it; yes, we’re online, yes, we’re moving faster than ever, and yes, it’s very cost-effective, but it’s just bare bones. It’s hard to get that strategic view on the results you get and you still need an objective interpreter, data handlers to make sense of it properly, or you’re missing the insight.
Our methodology at Catalyx isn’t just reporting your findings, what we do is actually give you a compelling story that gets you to think differently about your data. I find that truth is always more than the data set, it’s the cultural context, the hidden motives, the insights we’ve learned from hundreds of similar inroads.
Of course, a huge boom in the industry is AI and what it can do for us. It’s easy to get carried away in the excitement but here, in research, it’s all about balance. We love adding it to our analysis to identify key themes, but we’re very firm at Catalyx that AI’s viewpoint is always going to benefit from the human spark to make magic for our clients.
AI is a brilliant tool to cut through data and at Catalyx our moderators are working hand in hand with it to speed us up and keep us sharp. Alone, though, you don’t get the context, you don’t get the human eye that fully interrogates what’s going on. We’re sometimes unpredictable and that’s what I love. That’s where META, our newest offering, shines. It’s the partnership of an extensive AI that pools and presents findings from multiple Bitesize studies, paired with our strategic skill that turns information into success for our clients.
I read something once that made me laugh and has always stuck with me; if you put a pattern of numbers into a computer and ask it to finish the sequence “2, 4, 6, 8…” it will answer “10, 12, 14, 16”. But, if you give those numbers to a human… we’re finishing that sentence with “who do we appreciate?”
A human eye sees the stuff that isn’t said. That’s often the most important part.
Mel Nicholls with Alex Spence and the Catalyx team
What’s the unique spark you bring to Catalyx?
I’m doing what I love – qualitative crowdbased research – but my strength is really about women and telling their stories. Menopause, perimenopause, and women with kids or looking to get pregnant – there are so many things that impact women that are barely spoken about. I find it really interesting, research that has a social edge to it.
I’m thrilled to take on the new title of Strategy Innovation Director (affectionately known as a SID) along with my colleague, Alex Spence. I’m working closely with the team, heading up key accounts, and working more closely with clients to make sure we’re giving them what they need. The more you do, the more you get to understand the nuance of client’s business needs and get to know their motivations as people, which I enjoy. I’ve also done a lot of mentoring in the past, and that’s something I’m loving bringing to the team here. It’s exciting to plug in my expertise for our qualitative training, from our storytelling to communications.
Alex and I are ultimately here to elevate. We’re really looking forward to working with the team to bring up the next generation of SIDs and to keep them learning and growing. There’s also plenty of opportunity to do lots more with our key accounts, the future is very bright. Saying it simply, I’m here to upskill our people and keep bringing them through the ranks, to welcome new partnerships into the fold, and to combine these halves to make magic happen.
You can stay up to date with Mel Nicholls on her LinkedIn.
Need fast, cost-effective insights, instead of just data? Talk with our team today to find out what Catalyx can do for you, we’re always ready.
Let’s talk. Connect with us today.
7 Emotional buying motives of household care consumers
Our latest blog is here to unveil the fascinating emotional buying motives that drive product preferences in the household care category.
A home is a sacred space, and while it demands a high level of functional care, emotion is a constant factor in the decision-making process for consumers when they shop. As a result, understanding the complex emotional motives that influence consumer behaviour is crucial for brands in the household care category to hold and grow their market share. As we uncover these contextual and sometimes-unseen motivations that drive purchase, products can be connected meaningfully with their target consumers and gain a competitive edge.
Using new consumer verbatim from our latest report, “Beyond the Surface: Unlocking complex consumers in the household care market”, and real-life brand examples, this blog will unveil 7 of these key consumer motivations.
The emotional buying motives for safety and hygiene is strong in the home
“Particularly in the kitchen, you want something that gets rid of the germs as well as the odour”
“Ensuring my home smells fresh indicates cleanliness to me” 25-34
In “Beyond the Surface”, our latest Catalyx-own study conducted on the household care category, we revealed the emotional driver for hygiene was intricately linked to the practical driver for efficiency in the case of disinfectants. Across the two main consumer segments that emerged within our research, “Explorers” and “Utilitarians”, one common need for products that guaranteed cleanliness as well as freshness emerged. Despite both groups of consumers having divergent priorities and preferences, this uniting factor shone through, and may be attributed to our sharp rise in germ-awareness following the Covid-19 pandemic.
You can read more and find out where this driver sits in the hierarchy of consumer needs we synthesised by downloading our free report today.
Seventh Generation offers consumers cleaning for a good cause
Another emotion that drives purchase is the desire to create altruistic benefits by investing in sustainable products. Seventh Generation excels in involving consumers with positive global impacts through the communications promoting their eco-friendly and renewably sourced household products. The brand’s messaging promises to “consider our impact on the next seven generations” in every aspect of their products, to be “a force for good”.
With advertising imagery that includes children at every turn, the brand appeals to consumer conscience and creates a compelling metaphor for the circularity of their recycled packaging and biodegradable ingredients.
From consumer frustration to a one-stop-shop
“It is difficult to find products that “Eliminate Odours” and have a pleasant, long-lasting scent. I would love to have a product that could do both and ease-up my responsibilities in that sense”
“It would save me money from not having to buy multiple products” 35-54
Many consumers within our “Beyond the Surface” study indicated frustration at current market solutions in the home scent category. They perceived a gap in the market and reacted negatively to complicated multi-product solutions that were costing them time or money.
We discovered that it takes time, effort, several scent items and hard work for many to achieve the levels of cleanliness and comfort they wanted. Products that don’t force consumers to choose between benefits are hard to find, but greatly sought after. You can find a granular look at consumers’ frustrations and a roadmap to solution within our free report.
How Mrs. Meyer’s Clean Day’s storytelling invites nostalgic investment
Household care is far from a functionality-only category. Consumers are willing to invest in not just the products, but the story of a brand, too. Mrs. Meyer’s Clean Day demonstrates this perfectly with a powerful brand narrative about the foundation of the company; inspired by Mrs. Meyer, an Iowan mother of nine known for excellent housekeeping and throwback sensibilities. The narrative combines old-fashioned elbow grease with the cleaning product scents of a lovingly-kept garden.
Playing on the nostalgia of “mother knows best”, the brand’s story infuses each product with Mrs. Meyer’s personality and invites emotional investment with this feel-good emotional driver for consumers to immerse themselves in.
Consumers seek comfort in this emotionally-charged space
“Turning a stressful situation into a positive” 35-54
“I want something that has the power to affect mood and emotions” 35-54
“This would bring calm and comfort and peace to my home” 35-54
Within our “Beyond the Surface” study, consumer verbatim revealed that the quest for individual wellness extends beyond personal care products and into those used for the home. As a result, consumers expressed that within the home scents category, products with the ability to mask odours only went part of the way to meeting their needs.
Our study’s persona group of “Explorers” revealed an opportunity for home scents to meet needs personalised to consumers from moment-to-moment. Following this, a trend emerged linking control over one’s habitat with the ability to fully relax. Our insights reveal that wellness plays a major role in the ideal offering of a home scent, and should not be underestimated. You can read our full report for free to see the use frequency and occasions for consumers’ favourite de-stressing scents.
How Lysol turns reliability into consumer relief
Another way for brands to take the guesswork out of the path to purchase is to anticipate consumer pain points and reliably solve them. For household challenges that require a high standard of cleaning, Lysol is one of the market-leaders demonstrating the value of no-frills relief in trying moments.
Their plant-based disinfectant wipes earned Good Housekeeping’s 2022 “Dependable Wipes” award, and just last month the company announced the world’s first ever air-sanitiser to kill airborne viruses. Staying firmly within their core offering of killing germs and viruses, Lysol continue to innovate and diversify their portfolio – all while keeping their products easy-to-use and consistently effective.
Simplehuman used a product innovation to create consumer excitement
One consumer emotion guaranteed to motivate purchase is excitement. Simplehuman proved recently that a sure-fire way to generate this driver is innovating to improve product experience. The brand launched a paper towel holder with a first-of-its-kind design, replacing the centre rod with a slender, reusable spray pump, that users can fill with the detergent of their choice; effectively combining two separate functions in one item.
This award-winning upgrade in convenience for household care consumers made a splash with press at time of release and has generated buzz online, with excellent peer reviews and word of mouth continuing to the fuel excitement – and fuel purchase.
The emotional buying motives of consumers are nuanced
From the need for safety and comfort in the control of consumers’ homes, to frustration and excitement about the products that allow them to achieve it, these emotional buying motives are just the tip of the iceberg.
Understanding and tapping into these emotional drivers can help brands in this category be present for the right consumer at the right time. Crucially, solving the right household challenges meaningfully will build loyalty and differentiation in the crowded household care market. By aligning their offerings with consumers’ emotional needs, brands can create a strong emotional connection and enhance their market share.
To explore these emotional buying motives in-depth, download our FREE report “Beyond the Surface: Unlocking complex consumers in the household care market.” Find out how we can deliver mind-opening WOW insights to unlock growth, and gain valuable insights for your brand’s success. Always the insight, not just the data.
Let’s talk. Click here to unlock your crowd.
Igniting Innovation at MRMW NA: David Gray Sets the Stage
The highly anticipated MRMW NA is on the horizon! With less than a week to go, our team is gearing up. In the cases of our Global Head of Key Accounts Jenny Kieras, and our Business Development Director David Gray, that means packing their bags to journey stateside and join with the US Catalyx team to meet and greet the industry’s finest.
While Jenny presents to the assembly on Thursday the 29th June at 10am, David is getting ready to showcase our multi-award-winning services and connect with fellow market research innovators.
Our Business Development Director looks ahead to MRMW NA
David Gray has built business for a range of companies for nearly 20 years and now can’t wait to get back into the swing of in person events. A newcomer to this event, he’s looking forward to the opportunity of introducing what sets Catalyx apart to a whole new territory. We spoke with David to find out more:
What’s special about Catalyx is that we’re really good at the “something else”, I’m excited to be bringing that to Atlanta.
For example, you might come to us wanting to measure the same 5 key metrics you’ve always measured, and that can be very process-driven and habitual, with a lot of bias. Catalyx’s first question would be what do you want to learn? We get you out of the initial rigid structure so you end up asking the right questions, and then we bring you the answers – not just the data. We know that neither problems nor people are linear – it’s because of the way we connect with consumers and quiz them and challenge them, that’s how we get there and find unseen insight.
How will Catalyx’s innovations fuel Jenny’s MRMW NA presentation?
You’ll have to wait until Thursday to find out! In the meanwhile, I’ll say this; the way I see it, when a Formula 1 car goes around the track, it returns millions of datapoints a second. That all flows to a machine that synthesises it for humans to understand. In the MR landscape at the moment, agile research solutions will report that information fairly fast, but what Jenny’s got up her sleeve is something to iteratively, proactively make sense of it. DIY research can tell you if a bolt is loose, but it won’t go further and say “here’s a spanner, here’s how you tighten it.”
We’re going into much more detail next week. What’s incredible about Jenny’s insight is that, even though you might not have thought to look, you may find out your tyres are about to need a change, too, before it becomes a crisis. We’re talking about a way to stop powerful information getting lost in the blind spots. Studies don’t have to be data-only to be fast, and you don’t have to leave human learnings on the table just because there’s new technology involved. There’s a best of both worlds.
What are you looking forward to most?
One of the reasons I’m getting on a plane and flying to Atlanta is I believe humans need to meet and talk to each other. It’s really important to me that events happen, and that we support them. In the last few years, we’ve become creatures of habit where it comes to work, ticking much-needed boxes, but I think you need that human spark.
If you exclusively default to digitalism and data, you lose the most powerful spark of innovation; human ingenuity. In a way, that’s exactly what Jenny’s presentation is going to be about.
Stay updated during the event!
Stay tuned for our upcoming updates, as we provide exclusive insights into the exciting moments and game-changing discussions that will unfold at MRMW NA! Follow us on LinkedIn to make sure you don’t miss a thing.
Want to connect before the big event? Reach out to our team today – we hope to see you there!
Let’s talk. Click here to unlock your crowd.
Beyond the Bottle: How a beverage retail experience can drive sales
In today’s world of quickly-multiplying consumer touchpoints, drinks brands need to optimise even the finest details in their beverage retail experience and path to purchase to gain a competitive edge within the crowded market.
In this blog, we explore the increasing power that retail experience has to impact beverage sales. From eye-catching packaging that captivates consumer attention, unique in-store launches, the importance of findability, to the integration of online and offline promotion and displays of visual merchandising, we delve into the elements that make beverages stand out on the shelves. Here are some examples of the strategies that go beyond the bottle and transform the way customers engage with and purchase their favourite beverages.
Our participants revealed how packaging sparked delight in their beverage retail experience
In a Catalyx study on sparkling beverages conducted in the US, our participants discussed packaging and revealed that the products that sparked delight were most often the ones that made it to checkout. In many cases, this was reported a huge factor in brand loyalty:
Participant 1: If the package is eye catching. I prefer [my favourite beverage’s packaging] because it’s simple and reminds me of my childhood.
Participant 2: I do love that I can always spot my little [mascot] in the crowded aisle, that never runs out.
A key learning from the study was that packaging not only had the ability to generate brand loyalty – it had the ability to break it as well. Our participants revealed that in the beverage category, packaging with aesthetic intrigue has the power to poach attention away from an intended repeat purchase, converting shoppers from one brand to another.
Participant 4: I was blinded by the dazzle of the [competitor’s] sparkling water over my tried and true [regular] sparkling water.
As well as punchy packaging incentivising an individual purchase, participants also disclosed that enjoyable visuals could actually influence an increased volume of sales per customer.
Participant 5: It’s a very colorful presentation which I love. I think I purchased more when the shelves are colorful.
In-store Experiences: how Swoon created a first-of-its-kind product journey
In an era of digitalisation, exciting in-store experiences create a driver to footfall. An excellent example of this can be found in a development from one of our previous blogs. Since we wrote about successful beverage branding with the Swoon x Barbie beverage collaboration, the pink lemonade has made retail history. This timely launch has become the first drink to be stocked within the toy aisle of Target – creating a completely unique and exclusively in-store experience.
Having launched on shelves besides iconic Mattel toys and merchandise, the innovative Swoon x Barbie retail journey creates excitement for beverage-seekers and Barbie fans alike by immersing consumers in Barbie’s world, and benefitting from a far broader pool of shoppers. By creating a one-of-a-kind experience and utilising cross-promotion to drive sales effectively, this launch event has set a category-bending precedent.
What we learned from Corona Cero about product convenience
Convenience is a critical factor in the retail experience. For shoppers to find their ideal beverage with ease, our Catalyx-own research on Corona Cero serves as a poignant case study. While our research revealed that the beverage met the needs of its category and provided tangible value to the consumer when used, its path to purchase in-store generated shopping frustration. We discovered that this was an instance of poor findability as a result of compounding factors ranging from packaging to shelf placement, and it created the experience of disappointment and impression of low availability for consumers.
You can read our full report with the detailed findings and discover more in-depth learnings on the impact of convenience on retail experience.
Coca-Cola demonstrates on the importance of online and offline integration
As technology continues to innovate, seamless integration between online and offline channels is crucial. Customers expect consistency regardless of their shopping method, and once-predictable spending habits continue to shift worldwide. Coca-Cola has excelled in maximising omnichannel touchpoints, recently reclaiming their spot in Kantar’s top 10 most valuable brands list.
CEO James Quincey attributes the recent success to the brand’s drive to “become much more digital” in order to engage a Gen Z consumer base, presenting “the right product, in the right package, in the right channel”. Examples of this are found in their adoption of AI and tech-forward product launches such as their latest League of Legends collaboration. Thanks to a laser-focus on omnichannel touchpoints to supplement offline purchases with online promotions, the brand continues to expand its market share.
Visual merchandising and displays – how ZOA unlocked sales with a new, appealing look
Lastly, Zoa, the energy drink created by Dwayne “The Rock” Johnson, provides an example of the power of in-store displays. Zoa originally launched in 2021 with large black cans and masculine, fitness-related imagery, but has recently rebranded to engage a far broader consumer base.
Visual merchandising now plays a vital role, with smaller can sizes and gender-neutral packaging, creating an eye-catching on-shelf impression and encouraging exploration instead of segmentation. Zoa reported a sharp rise in bricks and mortar retail sales when the new look debuted, with a large in-store display of the cans multiplying sales in one big-box store 15-fold. Molson Coors’ Matt Stallman explained: “We’re finding ways to stop [consumers] in their tracks… when you get an array of singles together on display, they’re going to move. We see that in the numbers.”
Go beyond the bottle to level up your beverage’s retail experience
In today’s diversifying retail landscape, there’s no detail too small for a beverage brand to capitalise on. Retail experience comprises of complex factors, and the first step in tailoring your offering to shoppers is deep-diving into the purchase journey of your consumers. By doing this, beverage brands can transform the way consumers react to, engage with, and even advocate for their products.
Want to learn more?
Catalyx has launched Bitesize research to help brands iteratively unlock the bigger picture through the finer details such as the ones we’ve explored in this blog.
GET A FREE REPORT on The Battle of the Brands as an example of how we can deliver mind opening wow insights to unlock growth, in an iterative learning approach. Fast insights for fast decisions. Always the answer, never just the data.
Let’s talk. Click here to unlock your crowd.
How transparent ingredients meet consumer expectations
Openness About Ingredients and Production Practices Can Benefit Beverage Brands
We look at how transparent ingredients and openness of sourcing and production can help drive growth by meeting consumer expectations.
Transparent ingredients builds trust
Consumers are increasingly concerned about transparency on values close to hearts such as health, sustainability and ethical considerations. Loyalty is won and lost from how honest a brand.
Conscious consumers expect transparent natural ingredients for health benefits
Today consumers are more conscious about what they consume, in particular the food and drink they consume. Health is an important factor in choices, and so transparency on ingredients is crucial to make those critical choices. For example, in Catalyx-own research on Corona Cero, the ‘natural ingredients’ claim dialled up engagement in product and consideration to purchase. Using these transparent and attractive ingredient claims can also help to differentiate you from the competition.
Natural ingredients are associated with reduced chemicals or synthetic equivalents. Consumers prefer and trust natural ingredients as a way to reduce their consumption of artificial additives, preservatives and flavourings. Natural ingredients create a perception of healthier and cleaner product choices. For example, tea company Brew Lab, a New York-based brand. Stocked in the likes of Target and Whole Foods, in 2020 they launched their Owl’s Brew Boozy Tea, an alcoholic sparkling tea made from clean and tasty ingredients.
The Clean Label movement continues to gain pace. Linked to this is the simplicity of ingredients as well as natural ingredients. Over 70% of consumers are willing pay more for current brands that reformulate to be able to make natural ingredients claims (Ingredion’s Global Clean Label Manufacturer research).
Dietary intolerances and allergens require transparency
Over the last five decades dietary requirements have been on a noticeable rise. Recent academic data suggests up to 11% of the global population has a food allergy. And with an increase in inflammatory responses, even more people are dealing with food intolerances. The most common of these inflammatory issues is Irritable Bowel Syndrome (IBS), with the National Institute of Health in the US claiming about 12% of people in the US have IBS. GII Research reports the European gluten-free foods and beverages market is estimated to register a CAGR of 11.1% during the forecast period (2022-2027). Therefore, having very clear and transparent access to ingredients in an easy to digest format is increasingly important. This is particularly important when thinking about online product touchpoints.
Gluten free beers are on the rise in the UK due to active demand from the 10% of consumers who are on gluten-free diets (Coeliac UK). And by the many who choose gluten-free options if available but don’t cut gluten out completely. Numerous beer brands have innovated to offer just as good gluten-free beer alternatives – Vocation, Green’s, Magic Rock Brewing, Purity Brewing, Greene King, Jubel, Brew Dog and more.
Transparent ingredients in combination with transparent sourcing and production
Consumers expect the sourcing of ingredients and the production of product from ingredients to be as transparent as the ingredients themselves. Minimal processing and as close to its natural state as possible are drivers to a product’s naturalness. This can also relate to the farming of ingredients – the sustainable practices that are as natural as possible, such as organic. Soil health, biodiversity, and sustainable ecosystems will become increasingly important. Particularly as Gen Z is emerging as the sustainability generation and are driving this agenda.
It’s important for brands to be considering how they can innovate to meet consumer expectations on natural ingredients, simple and open sourcing and production, and how to communicate with clear benefit of transparency.
GET A FREE REPORT on The Battle of the Brands. See how we can deliver mind-opening WOW insights to unlock growth, in an iterative learning approach. Get fast insights for fast decisions. Always the answer, never just the data.
Catalyx has launched Bitesize research to help brands innovate continuously.
Let’s talk. Click here to unlock your crowd.
Your product’s use case and how to get it right
Cracking the Code: Identifying the Optimal Use Cases for Your CPG Product
Do your consumers connect with your CPG product’s use cases? For brands seeking to maximise their product’s growth potential, there is one common stumbling block you may be up against. When brands don’t think about how a product seamlessly integrates into their lives, growth will become unattainable. This blog explores the significance of identifying the key areas to ensure optimal use cases for your CPG product and how it can fuel growth.
A product’s use case can have impact on unclear product positioning
Take San Pellegrino’s “Essenza”, a beverage boasting a unique flavour profile and intriguing ingredients. Surprisingly, a Catalyx-own study revealed that due to unclear positioning in the market and packaging that failed to convey optimal use, over a third of consumers struggled to discern the intended usage occasions. Consequently, consumers had difficulty incorporating this drink into their daily lives, resulting in a reduced likelihood of making a purchase in the first place.
Catalyx crowdsourcing of behavioural product usage revealed that 35% of usage experience language was negative:
“I wonder if the Pellegrino Essenza is suitable for daily consumption or if it’s designed for a specific occasion”
“Does the product stand alone or do I need to mix it?”
“Is San Pellegrino Essenza an alternative to diet soda?”
This study serves as a vivid reminder of the role that clear positioning plays in connecting your product with your target audience.
The impact of poor creative communications
Another example of weaker usage understanding is Corona Cero, a non-alcoholic beer. This time we found a lack of relevant communication execution across touchpoints. In a Catalyx study using our new Bitesize research programme, we discovered that the creative execution in Corona Cero advertising failed to connect with consumers. While consumer reaction to taste was overwhelmingly positive when using the product, the promotional communication performed weakest on product fit, being memorable and being clear about what the product offers.
Corona Cero’s positioning did not communicate the unique benefits of the drink and advertising shifted purchase intent only marginally, relying on Corona brand cues. Consumers were unsure about the relevance of the non-alcoholic product within their lives and actual usage occasions.
61% of consumers wanted more focus on the actual product and more relatability within the usage occasions
“Show people of different ages and backgrounds enjoying the drink at different occasions”
You can read the rest of that report for free here.
The impact of an irrelevant product use need
Cases of suboptimal use can be risked when the innovation is too focused on novel marketing and the product itself is ignored. This happened to Coca-Cola Zero Sugar Byte, raising eyebrows with its limited-edition pixel-flavored soda. Described as the first-ever Coca-Cola flavour born in the metaverse, it aimed to unite digital and physical worlds. The soda had coordinated launches within both Fortnite and Meta, and while this was applauded, the taste received heavy online criticism. As an exciting nod to evolving technology the product served its purpose – however, as a refreshing beverage use occasion expected by consumers, it fell drastically short.
Growth through powerful positioning and branding
The above explores where brands have got it wrong. But what about when they get it right? When brands meet a usage need and promote the right optimal use cases, they can successfully position their product. Use cases serve as guiding beacons, lighting the path for consumers to seamlessly embrace a product in their lives. By highlighting the various occasions, settings, or specific needs your product solves or excels in, you empower consumers to buy into its integration within their lifestyles.
We can learn from an excellent example from another category. invisaWear is a brand with an offering that blends two usage needs into one item – aesthetics of jewellery with personal-safety technology. Recently it was nominated for a 2023 Webby award. Offering a niche product, invisaWear recognised the need to provide crystal-clear promotional communications explaining optimal use, setup, care, and operating instructions. The brand also ensures that customers understand how easily it integrates into their lives by listing segmented examples of target users who could benefit, eliminating ambiguity to simplify the purchase decision-making process.
It’s crucial to have clear marketing that unlocks both adoption and growth of your offering. By identifying and championing the optimal use cases for your CPG product, you empower consumers to easily welcome it into their lives.
GET A FREE REPORT on The Battle of the Brands. See how we can deliver mind-opening WOW insights to unlock growth, in an iterative learning approach. Get fast insights for fast decisions. Always the answer, never just the data.
Catalyx has launched Bitesize research to help brands innovate continuously.
Let’s talk. Click here to unlock your crowd.
How successful beverage branding transforms bottles into beloved brands
A toast to successful beverage branding: what makes a product stand out?
Successful beverage branding is crucial in today’s crowded market – it takes more than a great product to stand out. A strong brand identity is essential to differentiate your product from the competition and capture the attention of consumers. So, here are some great examples that have recently used unique branding to unlock success:
Trip’s branding embodies their claims
Trip’s CBD-infused soft drinks are branded to personify their product claims of relaxation. As an alcohol alternative promising zero hangovers, the minimalist pastel packaging’s artwork evokes peace, luck and a carefree experience, targeting younger, health-conscious consumers who wish to unwind without traditional drawbacks. The brand emphasizes the pared-back quality of its ingredients, which include adaptogenic herbs and CBD, to promote relaxation and reduce stress without the need for alcohol.
Swoon collaborates with the classics to evolve for the future
Swoon is a US brand that produces sugar-free soft drinks. This summer, it has launched an exciting collaboration with Barbie to produce Barbie-branded packaging and an exclusive line of merch to get ahead of the trend with the upcoming Barbie movie. This collaboration targets health-conscious consumers who enjoy sweet drinks and appreciate appeals to femininity and fun, guilt-free. Accordingly, Swoon’s website states “Swoon and Barbie are committed to celebrate and evolve the classics to create a better future.”
Using AR to immerse, excite and promote, Lyre’s makes waves in a calmer category
In late 2022, Lyre’s, a non-alcoholic “spirits” company, launched an innovative branding strategy using the animal mascots and QR codes shown on their bottle labels to create an augmented reality experience called Lyre’s Impossible Bar. The animals on each label would come to life and immerse consumers in a virtual menu of cocktail recipes, promoting more of Lyre’s products as they go. The experience is built for sharing on social media platforms, creating excitement and exploration for consumers who are new to the category.
Funkin’ Cocktails uses timely launches to demonstrate their convenience to consumers
The UK’s first BCORP cocktail company, Funkin’ Cocktails has focused on ease and convenience in their branding, using taglines like “any hour can be happy”. As a result, their new canned cocktail range launched strategically in time for British bank holidays, Cinco de Mayo and summer, featuring eye-catching colours and playful messaging, all working to emphasise their easy-to-select and easy-to-enjoy products. Because of this, Funkin’ Cocktails’ branding effectively communicates their benefits of being RTD (ready to drink) and portable, capitalising on the increasing popularity of canned cocktails.
Even successful beverage brands like Coca-Cola need to innovate
Recently Coca-Cola launched an AI art competition through a custom platform called “Create Real Magic”. The innovative platform combines GPT-4 and DALL-E technologies to produce Coca-Cola-related text and images from prompts. Winning submissions will feature on digital billboards in New York’s Time Square and London’s Piccadilly Circus. Certainly the beverage market is rapidly diversifying – Coca-Cola is adapting to keep their share.
Successful beverage branding in today’s crowded market requires an understanding of the kinds of innovation your consumers want to see. Even juggernauts like Coca-Cola are innovating to adopt cutting-edge technologies that amplify their branding. The competition has never been fiercer.
Drive growth with your branding
Unlock growth for your brand by tapping into your crowd with Catalyx. Let us help you optimize your branding strategy for maximum impact.
GET A FREE REPORT on The Battle of the Brands. See how we can deliver mind-opening WOW insights to unlock growth, in an iterative learning approach. Get fast insights for fast decisions. Always the answer, never just the data.
Catalyx has launched Bitesize research to help brands innovate continuously.
Let’s talk. Click here to unlock your crowd.
Consumer personalisation for differentiation
Beyond the Basics: How Beverage Brands are Personalising Beyond Flavour and Ingredients
Consumer personalisation isn’t new. But personalising and tailoring to consumer need in new and innovative ways can differentiate your brand vs. the competition. We look at exciting examples from the beverage industry to demonstrate how brands can stand out beyond the basics with personalisation.
Personalisation to solve for consumer need
Consumer personalisation won’t drive incremental growth if it’s just a novel idea. It needs to meet a specific consumer need to make impact. So it’s crucial brands understand their target audience needs for innovative personalised solutions. UK-based Miracle Tea solves for both personal taste preferences and health needs, with their personalised blending service using a proprietary algorithm on their website. It recommends a custom tea blend tailored to the consumer individual needs based on a quiz.
And sometimes a product solution is born from a personalised need. Meeting daily hydration consumer personalisation needs, US-based company VIVIC offers a personalisation hydration monitoring service via a wearable device and app. Tracking the consumer hydration levels it recommends personalised hydration goals and drink recommendations based on individual need.
Leverage technology for consumer personalisation like Johnnie Walker
Brands can leverage technology to automate consumer personalisation. With algorithms and machine learning to recommend products and services that are tailored to each individual customer. And this can help to deliver personalized experiences at scale, without requiring significant manual effort. Somabar, an automated bartending appliance brand, uses an AI-powered robotic bartender. Designed to meet consumer desire for a bar cocktail experience and drink exploration at-home. Consumers use the mobile app, select the preferred cocktail with customised ingredients, flavours, strengths. Then the app sends the recipe to the Somabar robot to mix and dispense the cocktail using precise measurements and temperatures. The robot also uses machine learning algorithms to improve personalised recommendations and individual preferences over time.
Johnnie Walker also used technology effectively to launch a personalised whisky bottle service that uses augmented reality (AR) technology to create a personalised label that features the customer’s face. Consumers can use a dedicated app to take a selfie, which is then turned into an AR image that is added to the label of their Johnnie Walker bottle.
Personalised engagement in real-time with Coca-Cola and Pepsi
Real-time personalised experiences are becoming increasingly popular in the beverage industry. And many brands use technology to offer customised and personalised experiences to their customers. You can create incredible consumer experiences in real-time to stand out from the competition. Both Coca-Cola and Pepsi created personalised vending machines for consumers to create custom blends personalised to their preference for that moment in time.
Heineken has developed a real-time personalised beer recommendation service using facial recognition technology. Customers can use a mobile app to take a selfie, which is then analysed by the app to determine the customer’s mood and personality. Then the app recommends a beer that’s suited to the customer’s mood and personality.
Unpacking consumer personalisation needs using quick insights
Use iterative learning to innovate personalisation with real-time feedback from consumers to better meet their needs. Getting continuous fast consumer insights can help brands create a more relatable and engaging personalised experience. Understand consumer preferences and behaviour, such as browsing behaviour to identify patterns and trends to personalise products to meet specific consumer needs.
Catalyx has launched Bitesize research to help brands innovate continuously.
GET A FREE REPORT on The Battle of the Brands as an example of how we can deliver mind opening wow insights to unlock growth, in an iterative learning approach. Fast insights for fast decisions. Always the answer, never just the data.
Let’s talk. Click here to unlock your crowd.
Why Consumers Expect You To Innovate Continuously
Innovate continuously to meet demanding consumer expectation. Brands are increasingly facing this challenge and at speed!
The need from the complex consumer in a digitalised age to innovate continuously
Consumers are constantly changing and evolving. Increased digitalisation of our lives drives access to more information, products, and services. The number of consumer touchpoints is rapidly increasing. Combined with an uncertain and changing societal context. We are faced with a complex consumer to understand.
Being informed and connected makes consumers more empowered. They have the access to constantly compare and evaluate products. So, they’re able to demand more. Therefore, brands must innovate continuously to meet these evolving consumer expectations.
Apple and Samsung understand consumer technology demands them to innovate continuously
Digitalisation itself increases the need for continuous innovation. Consumers expect products integrated with the latest technology. The rapid pace of technological change means brands need to adapt and adopt new and emerging technologies to stay relevant.
Mobiles are the most obvious example of seeing this need for continuous innovation in action. Apple and Samsung are the front runners in continuously improving smartphones to meet consumer expectations.
CommBank integrates AI to meet consumer expectations to innovate continuously
The recent explosion of AI is already creating consumer demand for brands to integrate AI into their consumer solutions to augment the human experience. For example, Australian bank CommBank is committed to using AI to exceptional customer experiences at scale. They have recently tested an in-app feature that uses AI to learn the user fuel spending pattern, then alerts them when they should think about filling up and tells them the cheapest option in the nearby area.
Amazon meets the need for convenience to innovate continuously
Consumer demand for continuous innovation is also driven by the increasing desire for convenience. Therefore, the demand for brands to adopt innovations such as one-click ordering, and same-day delivery is increasingly expected. Amazon was at the forefront on this innovation evolution, while other brands have followed such as Dominos who’ve made ordering easier with one-click based on favourites. Brands must be innovating for convenience to compete.
L’Oreal Perso understands consumers want more personalised control
As consumers’ options increase, their demand for more increases. New tech offers the improvement for consumer product personalisation. Netflix and Spotify are experts at personalised algorithms for their content. Consumers are now used to this level of personalisation and want to feel empowered to curate for their own relevant requirements. L’Oreal Perso gives to power to the consumer to control their own personalised skincare solutions. Using AI technology the device analyses the person’s own skin concerns, environmental factors, and preferences to curate a skincare regime that’s dispensed from the device, and then track progress from use. Innovation to find growth from the many but personalise for the individual is a path brands must explore to innovate continuously to be competitive.
Innovate continuously to unlock growth
To be in position to find growth, innovation is key. Investment of innovation enables differentiation in increasingly saturated markets. To keep attracting new customers, brands need to be better than the competition. Keeping up with technology to integrate into innovation is part of this future-focused relevance to meet consumer expectation to innovate continuously in ways to delight them.
Catalyx has launched Bitesize research to help brands innovate continuously.
GET A FREE REPORT on The Battle of the Brands as an example of how we can deliver mind opening wow insights to unlock growth, in an iterative learning approach. Fast insights for fast decisions. Always the answer, never just the data.