Yogurt, yogurt everywhere

Walk into any supermarket or health-foods store today, and you'll see a vast array of yogurts in the dairy case. Flash back just 11 years, and the yogurt offerings were meager, to say the least. Dannon was marketing yogurt in US stores, but the food category was miniscule and anything but mainstream.

The incredible growth of yogurt during the 21st century is due, in large part, to the entrance of one brand--Chobani, which launched its Greek yogurt in 2007.

Today, Chobani is competing with brands that didn't exist in 2007, as well as brand and product extensions of companies that were part of the yogurt market in the 20th century. Consumers have responded to the new wave of yogurts by trying new products and, in some cases, becoming loyal yogurt lovers.

No wonder Chobani has been redesigning its products and packaging to stand out in this increasingly crowded environment. The company is also reformulating yogurts with lower sugar and more flavor pop. And it's "stretching" the branded yogurt concept into drinkable products, among other innovations.

Yogurt is everywhere. How will Chobani, Dannon, and other brands maintain the interest and loyalty of consumers in such a competitive marketplace?

The Sneakerization of the Non-Dairy Milk Market

Does the "dairy case" in your local supermarket include rows of shelves with alternatives like soy milk and almond milk?

The increase in number and variety of non-dairy milk products illustrates the "sneakerization" of this market--meaning the proliferation of multiple products for microtargeting niche or microniche consumer segments. Ever-finer market segmentation for targeting small niches interested in specific types of products/benefits, in other words.

Even calling these products "___milk" can be controversial. But despite industry efforts like the long-running "Got Milk?" campaign (which morphed into "Milk Life"), consumption of traditional dairy milk is not going up.

In fact, many consumers are seeking out milk alternatives for health, nutrition, and lifestyle reasons.

Consumers are paying attention to these non-dairy milks and seeking out new choices, boosting demand for what was once a tiny niche. This is changing the makeup of the industry. For instance, adapting to this trend toward proliferation of non-milk products, one former dairy producer now makes peanut milk.

Sneakerization of this market means more competition among non-dairy milk products AND milk products, all seeking to improve market share, sales, and profitability.

Upcoming 12th Blogiversary

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June will mark the 12th anniversary of this blog! My very first post was about the way Boeing views the future (for strategy reasons) vs. the way competitor Airbus views the future.

At the time, I indicated a preference for Boeing's view, because it envisioned a point-to-point future for passenger flights, whereas Airbus's vision was for giant jets flying passengers from one airport hub to another.

The difference matters, because these visions of the future guide companies in planning for new products and supply-chain priorities. In turn, suppliers and buyers both consider what Boeing and Airbus think about the future of air travel and the airline industry. They factor these and other projections into their planning for marketing strategy.

In general, what Boeing envisioned in 2006 has come to pass now. As a result, there is higher demand for lighter, fuel-efficient jets than for heavy, gigantic jets like the Airbus 380.

Boeing at this moment sees air travel demand increasing from 2017-2036, according to its Current Market Outlook. In fact, it believes this will mean airlines will need to have twice as many passenger jets in service by 2036, compared with fleet sizes today.

Today, Airbus also believes that demand for air travel and air cargo will increase year after year after year, and by 2036, the company projects a need for 35,000 additional aircraft.

The competition between these rivals continues as the market expands and airlines line up new aircraft. In 2017, Airbus sold more aircraft than Boeing. However, Boeing was the leader in aircraft delivered.

Notice that the focus is on Airbus AND Boeing, because these two manufacturers are the two largest in the world.

How will their competition affect the overall market, including smaller manufacturers?

New Food Products Tap into Consumer Behavior Trends

Kraft Heinz's logo on Twitter

Kraft Heinz makes some of the world's most recognized brands--Heinz ketchup, Oscar Meyer hot dogs, Kraft cheese, and Ore-Ida frozen potatoes are just four examples.

But it's also facing ongoing changes in consumer behavior (culture by culture, not just internationally), which means it must adapt its products and its marketing to be competitive and successful in the changing marketplace.

"I think the most important thing we can do is provide options, so consumers can make their choice," says the company's CEO, Bernardo Hees. In other words, innovate new products that meet the needs of customers in specific markets, pointing up benefits and features for those segments.

One product Kraft Heinz recently introduced to the U.S. market is Just Crack an Egg, which combines a couple of consumer-behavior trends: interest in different/novel breakfast formats, desire for faster yet healthy meals, need for simplicity in preparation, and affordability.

What makes Just Crack an Egg unusual from a marketing perspective? The combination of multiple brands that make up the product. Its ingredient brands include Ore-Idea potatoes, Oscar Meyer meat, and Kraft cheese. Also, this product is not in the packaged-goods aisles but in the refrigerated foods aisle, which gives Kraft Heinz a new place to grab attention of the target market.

Will the combination of these famous brands and the novelty of preparation and distribution attract customers who will not just try once but become repeat purchasers over time?

Ford Steers Toward SUVs, Crossovers, and Trucks

Now that oil prices have been well below $100/barrel for an extended period, Ford Motor Co. says it's cutting back on its line of passenger cars because of much higher demand for larger vehicles--which deliver higher profits.

As the tweet above indicates, Ford is "transforming our North American lineup by 2020..." The transformation means that U.S. dealers will soon sell only two passenger-type vehicles: the Mustang and the Focus Active (a forthcoming crossover).

The rest of the vehicles in Ford showrooms will be SUVs, trucks, and crossovers. So is Ford speeding away from passenger cars? Not really. The head of global markets says: "We will have a very diverse passenger car business. It just won’t be traditional silhouetted sedans that tend to be commoditized."

In other words, Ford is busy reinventing vehicles with a remix of benefits and design for the next generation of car buyers, resulting in distinctive products that are differentiated from competitive vehicles. The company is also slashing costs to improve profitability. Because the smaller cars don't deliver as much profitability as the larger vehicles, they're being dropped from the product mix.

By 2022, Ford's dealerships in North America will stock none of these models: Fiesta, Focus, and Taurus. The phaseouts will follow the company's product lifecycle schedule. Remember that Ford's marketing in the rest of the world will continue to feature passenger cars that are fuel efficient and fit the driving preferences of local buyers.

Heinz Gets Social Media Talking

Heinz recently asked on Twitter for a "vote" on whether the company should launch an official version of mayonnaise-ketchup, or "Mayochup." Of course, consumers have been mixing mayo and ketchup at home to create their own condiment for years. In Utah, it's simply "Fry Sauce."

But now Heinz wanted to know whether demand was high enough for a branded product. And, probably not coincidentally, the social-media "vote" was also a way to get attention for Heinz's branded mayo, which is competing with long-established Hellman's mayo (owned by Unilever).

If Heinz received half a million "yes" votes, it said it would introduce the new product. In the end, Heinz received 511,000+ "yes" votes and announced it would launch the new product later in 2018. Lots of comments, too, and coverage by news outlets.

Next social media question: What should the new product be named, if not Mayochup? No matter the result, Heinz understands that involving the public via crowdsourcing and voting attracts media attention, too.

Marketing Earth Day

The first Earth Day was celebrated on April 22, 1970, and within months, the US Environmental Protection Agency had been created to protect our precious environment.

Earth Day 2018 will be on Sunday, April 22. This year, the focus will be on plastics--specifically, removing plastics from our waterways and preventing plastics from harming the natural environment.

Of course, Earth Day has its own Twitter account (with 48k followers), its own FB account (with nearly 400k likes), a YouTube channel, Instagram account, and a blog housed on its website.

Businesses, educational groups, and other organizations are going green every day and using Earth Day to put the focus on education and action for ecological health. A few examples: Dow has teamed up with Erb Institute (U of Michigan) for a new sustainability education project. Apple announced, in time for Earth Day, that all its facilities run on 100% green energy. Indiana State University has a bike-share program as part of its Earth Day events, which also include bringing vendors on campus to provide info to students and faculty. Major League Soccer is working toward greener goals on Earth Day. The United Nations has declared the day International Mother Earth Day.

Watch for more environmental activities that encourage consumer and business involvement, along with nonprofits providing education and guidance, leading up to Earth Day and beyond.

Are Competitors Really Stakeholders? Yes!

By far the most popular posts on my marketing blog are those about competitors as stakeholders. Definition of stakeholders: "People or organizations that are affected by or that can affect an organization's performance."

So for the record, let's say it again: Competitors are definitely stakeholders. One academic paper gave six good reasons why this is so--starting with the fact that competitors' interests are not in direct opposition to the interests of a particular marketing organization. In many instances, a rival's goals and situation will be so close to yours that you absolutely must take its actions into consideration. Not to copy that rival but to anticipate and defend against competitive challenges--that's the real reason to look at competitors as stakeholders.

When a competitor introduces a new product that directly competes with your existing product, it's going to have some influence on what happens to your product. When a competitor changes a price (either up or down), that will likely change industry demand and therefore have an impact on your organization. When a competitor trumpets its sustainability initiatives, it could very well have some impact on how customers and other stakeholders compare what you're doing to what that rival is doing. More than ever, consumers care about the ethics and social responsibility of the brands they see. They also have changing preferences that competitors may detect or influence, adding to pressure on you and your industry.

A great example is Amazon vs. Walmart. Each watches the other closely, you can be sure. Walmart is playing catchup in e-commerce but doing a very credible job, even as Amazon encroaches on traditional retailing. Don't forget that this rivalry is having an impact on the rest of the retail industry, as well. The giants make moves, and even other giants must be ready to defend or deflect or initiate something new and different to influence consumer behavior.

As you scan the marketing environment, be sure that rivals are on your stakeholder list. NOT because you want to coordinate price changes--collusion is illegal in most countries--but because your strategy is necessarily influenced by the strategy and tactics of competitors. Be ready.

The Changing Face of Brand Typefaces

Southwest Airlines changed its brand's typeface a few years ago. The intent was to give the brand a more friendly, caring look. Instead of all caps, the new brand is written in upper and lower case (better readability, more accessible). And the addition of a heart (shown here in the Twitter account profile) puts "caring" into the spotlight in a very visible way.

I used the Wayback Machine to look at the Southwest brand in 2013. Above, the logo from the airline's website in that year. Notice the all-caps name. Color scheme is same as today, but no heart.

Compare with the Southwest brand in 1999, again from the Wayback Machine's captures of the company's website. All-caps name, no blue, no heart.

With airline industry consolidation a long-term trend, Southwest is no longer the scrappy startup it once was, but a strong, established carrier with a proud history and loyal customer base. The company's forecasts are closely watched for clues to industry trends. And like all airlines, Southwest watches out for price wars that can affect consumer behavior, market share, and profitability.

Therefore, when Southwest changed its brand typeface, the airline wanted to convey a certain attitude toward its customers, giving it a way to stand out in the crowded skies. It even created a separate website, "Southwest Heart," to explain the heart element in its logo.

"Now we have a unique font that really embodies our personality as a brand," explains Southwest's director of brand communications, adding that this helps differentiate the airline from competitors.

Marketing Insects as Food?

Here's an interesting marketing trend in the world of food: Eat bugs.

In Canada, Loblaw's is marketing Cricket Powder, made from ground-up crickets. It's not just full of protein, it's an environmentally-friendly approach to eating. "By making products like Cricket Powder widely available in our grocery stores, we are giving Canadians the option to not only try something new, but to also make a conscious decision on what they eat and how it impacts the environment," says a Loblaw vice-president.

In fact, cricket flour is being incorporated into a range of products. Chapul specializes in cricket-protein chocolate bars, among other edibles. Cowboy Cricket Farms produces 20 million crickets yearly and makes cookies from cricket flour. Chirps chips are made from, yes, cricket flour.

Today, insect-based protein foods are niche products. Do they have the potential to become mainstream products in the not-so-distant future?