Highlights include marketing approaches that target generations

EDITOR’S NOTE: Nerac Analysts Scott Lloyd and Natasha Bangel traveled to Naples, Fla., this fall for the Mintel New Products Conference. Here is a summary what they discovered.

Of Boomers, Gen X & Millennials

When marketing foods, it is important to keep in mind the consumer’s age, which often provides a window into their buying habits, says Larry Wu, vice president and consumer strategist for food and beverage at Iconoculture Advisory Services, a leading consumer behavior research company. For example, Mr. Wu divides consumers into boomers, Gen X , and millennials.

Baby boomers, who range from 43-61, as a whole are trying to defy aging and want to get the most for their money when shopping. The boomers at the younger end of the range want nutritious, easy-to-prepare meals that their families will enjoy. Older boomers transitioning to a life without children are less inclined to prepare meals at all.

Gen X consumers, who are between the ages of 30 and 42, are media savvy and individualistic. Convenience means everything, and they are willing to pay extra for what they perceive as value added to a product. They are willing to pay extra for organic food, for example, because they value the fact that it is free of chemicals and hormones.

Millennials, defined as between ages 20 and 29, are generally technologically savvy, media immersed, raised for success, and have what Mr. Wu calls, “sensitive B.S. radar.” This group generally cooks only for social events, and rarely just for themselves.

This point of all this is that food manufacturers and marketers need to decide whether it is potentially more profitable to go after a small percentage of a large market through mass marketing or a large percentage of a smaller market by tailoring the product and the message to meet the needs of a specific demographic.

Teens Represent A Different Opportunity

An even younger generation, today’s teens, is emerging as a consumer group to be dealt with, and the conference assembled a panel of teenagers to talk about what is on their minds to help food companies hone their marketing.

It was obvious in listening to them that their lives are extremely busy and that convenience is a huge factor in their buying decisions. And for these young people, convenience means a meal that takes less than 5 minutes to prepare. But foods must not have what they perceive as flaws. For example, caramel apples are convenient, but the caramel makes their fingers sticky. That is inconvenient. However, if the manufacturer includes a wet wipe, that changes the product to convenient.

They also like to eat out, and say that they rarely eat breakfast. Their morning schedules are tight, and often they are just too lazy to fix something that’s not convenient.

One thing was clear, however. They are put off by companies that change marketing slogans. For example, the teens said they were upset when McDonald’s changed its slogan to “feed your inner child” from “I’m lovin’ it.” But they liked the fact that Kit Kat stayed with the slogan, “Break me off a piece of that Kit Kat bar.”

How To Market Healthful Foods

Barb Stuckey, executive vice president of marketing at Mattson, which bills itself as the largest independent developer of new products for the food and beverage industry, said one of the hardest things in marketing foods is breaking what she called “neophobia,” a fear of something new. This is particularly true of products being marketed as healthful. However, that obstacle can be overcome if food companies apply these principles:

• Put taste first and deliver an experience.
• Make it easy.
• Deliver more satisfaction and nutrition per calorie.
• Sell it on the shelf.

For example, she cited Hershey’s Cocoa Via as an example of a company applying the four principles. The packaging and website deliver an experience to the customer. It’s easy, because all you have to do is open it up. It delivers an appropriate amount of antioxidants per calorie. And Hershey’s packaging sells it on the shelf because it spells out the source of the antioxidants.

Bertolli is another example. Bertolli packages frozen entrée dinners for two, so it delivers an experience. The packaging displays the product with wine, which creates a luxurious state of mind. Bertolli makes it easy because the product serves two people unlike other frozen dinners that are single servings or family-size portions. The product can be purchased in a reduced calorie brand. And the packaging makes the product stand out on the shelf.

If It Tastes Good, Is It Bad?

The ability to perceive flavor and sweetness varies by species, which has led to a new approach to consumer research based on genotypes and groups of individuals. As a result, said Dr. Gary Beauchamp, director of the Monell Chemical Senses Center, markets can be segmented by biological differences.

Also, opportunities exist for discoveries based on the reactions of receptors or receptor cells to screen for novel compounds that flavor foods. For example, oleocanthal, which provides antiflammatory and antioxidant activity, provides the peppery bite in olive oil. But put the same compound in cold medicine and it does not taste good.

That leads to the question, if it tastes good is it bad? The answer is yes and no. Yes, because sugar, salt, and fat if consumed in excess exacerbate obesity. No, because flavor compounds signal the presence of nutritionally valuable substances and may themselves be nutritionally valuable.

General Trends In Food

The conference wrapped up with some trend-spotting by two chefs from the Culinary Institute of America (CIA):

• Salsa surpassed ketchup sales last year.
• Olive oil has replaced butter on bread.
• More chicken than beef sold at McDonald’s.
• People complain about the price of gas but are spending more per ounce for bottled water.
• The number of farmers markets has increased to 4,700 from 1,700 since 1994.
• “Fresh” and “authentic” have replaced “gourmet” in marketing products.
• Organics have undergone significant growth.

In a recently conducted consumer poll that the chefs cited, three quarters of the respondents agreed with the statement, in the future, menus will be more influenced by social and ethical matters. Only 9 percent disagreed and 16 percent were undecided.

Consumers also listed in order of importance the following reasons for buying products:

• Sustainability
• Environmentally friendly
• Locally sourced
• Hormone-free
• Organic
• Fair trade
• Genetically modified organisms (GMO)
• Animal rights

There are a lot of different ways to develop products, and once developed, marketing has a role in the product’s success. While marketing entails many considerations, these issues shed new light on ways to approach marketing. Keep in mind that you need to stay ahead of the trends, and not just how your own products meet new needs, but also how they stack up against the competition. And with creative marketing, you might just be able to create The Next Big Thing.