Coupon Promotions that Engage Healthy Shoppers – Natural

Coupon Promotions that Engage
Healthy Shoppers – Natural Channel
Case Studies & Best Practices
Presented by
CEO/Founder Matthew Saline
Karen Herther, Sr. Director Research & Insights
April 2014
The Story of Mambo Sprouts
Launched in 1996
America’s Natural & Organic Marketing Company
Meeting a need for Mass Market & Retail Promotions targeted to Health
& Natural ‘LOHAS’ (Lifestyle Of Health And Sustainability) Consumers.
Mambo Sprouts connects healthy natural brands to consumers via
targeted natural channel promotions in-store, at home & on the go.
www.mambosprouts.com
State of Natural Product Industry
By the Numbers
• Burgeoning natural products industry forecast to grow
to $226 billion or 51% by 2018 (8.6% annual growth).
• 2.5 times the projected growth rate of mainstream
consumer packaged goods.
• Trend toward natural, organic and healthy products
part of a macro trend – not a fad.
Natural Expo West 2014 broke records:
67,000 industry members, 2,600 exhibiting, record
1st time exhibitors.
Source: 2014 NEXT Trend Forecast - New Hope Natural Media/Expo West
State of Natural Product Industry
Natural/Specialty Product Retail Channel is Different:
3,000 plus retailer locations (Progressive Grocer)
• Led by One Major Retailer
• Whole Foods Market (350 stores in US/Canada)
• Less Regional Chain Dominance – A few
Specialty/Health Retail Chains –
• e.g., Sprouts, Natural Grocer, Earth Fare, Fresh Market
• Many Independent Retailers – about half
The State of Natural Industry
Source: Category Management Solutions CMS4CPG.com

Natural product sales
up about 10% in both
natural & mainstream
grocery.

80% of Sales - split
between Natural
Product &
Conventional
Retailers.
HEALTH & NATURAL PRODUCT BUYING TRENDS
Natural Channel Consumers
Clean Eating
Combined Channel Dollar Growth
Natural & Specialty Food/Bev
9.4%
Natural & Organic Food/Bev
12.1%
Organic (70%+ organic content)
12.7%
Fair for Life Certified
34.0%
Non GMO Project Verified
15.8%
B Corp Certified
14.0%
Gluten Free (labeled)
23.5%
Vegan (labeled)
12.2%
Raw (labeled)
31.4%
Consumers are
seeking ‘pure’
cleaner foods &
value brands that
are transparent &
authentic.
Savvy shoppers
look at ‘specifics’ &
trend will accelerate.
Source: Nielsen SPINScan Natural and Specialty Gourmet 2013 Current 52 Weeks Versus Year Ago
How do we learn about the Natural Consumers?
Each year Mambo Sprouts
Marketing Research conducts its
Annual LOHAS Market Industry
Survey - a bellwether source for
healthy natural shopper trends.
In the News:
Full
Source: 2014 Market LOHAS MamboTrack Natural & Organic Shopper Annual Study
Personna of Healthy Natural Consumer
Savvy Conscious Shoppers:
 Make healthy eating, shopping & lifestyle
choices based on values.
 Seek out information (online) & read labels.
 Willing to spend more for ‘better for you’ products but
are price & value driven – shop sales, coupons.
 Opinion leader health & eco consumers – share.
Source: 2014 Market LOHAS MamboTrack Natural & Organic Shopper Annual Study
Health and Natural Shopper Profile
Female - 9 in 10 (94%)
Median Age 39
Higher median household income
($82K)
Wired Grocery Consumers:
 58% use mobile digital coupons
 Almost 1 in 2 use mobile
phone/device to look up product
information
Well educated - 8 in 10 have a
College/Advanced degree
Healthy conscious food buyers:
 8 in 10 seek out Non-GMO
 7 in 10 buy Gluten Free
Source: 2014 Market LOHAS MamboTrack Natural & Organic Shopper Annual Study
Active in healthy living:
Organic Foods (82%)
Manage health through
food choices (75%)
Fitness/exercise (71%)
Engage in Social Media Almost 9 in 10
 81% use Facebook
 45% on Pinterest
Natural Shoppers are Conscious & Value Driven
Plan to
Spend more
Shop for
Organic
Products
Non GMO
Products
80%
64%
64%
Using
Buy
Coupons
More or at
past levels
Organic due
to Non GMO
73%
71%
Source: 2014 Market LOHAS MamboTrack Health & Natural Shopper Annual Study
Where do They Buy Natural/Organic Products?
91%
74%
73%
69%
61%
55%
45%
Supermarkets
Local
Health
Food Store
Source: 2014 Market LOHAS MamboTrack Health & Natural Shopper Annual Study
And other
price clubs
Couponing Use Steady as Economy Improves
High coupon usage the new norm among health & value
conscious shoppers:
 8 in 10 healthy shoppers using same or more
coupons.
 Around 1 in 2 will redeem more Online Printable
coupons & Retailer/In-Store coupons in 2014.
 Use of Digital mobile couponing notably higher – 6 in
10 vs. 44% in 2013.
Source: 2014 Market LOHAS MamboTrack Natural & Organic Shopper Annual Study
Taste, Healthy Ingredients, Price & Coupons
Drive Brand Choice
What do healthy natural consumers want?
MamboTrackers speak: “We want healthier (natural),
great tasting alternatives to my favorite foods”
example –
…’healthier’ pop tarts
…‘better-for-you’ teas, waters, sodas and
more are driving beverage category growth
…healthier, tasty breakfast cereals & snacks (fun theme
for families)
Natural Channel Coupon Case Studies
Sp13 IS
TM
Manufacturer’s Coupon | Expires: 08/31/13
$
1.00 Off
any ONE (1)
4-Pack Glass Bottles
Retailer: We will reimburse you the face value of
this coupon plus 8¢ handling provided you and the
consumer have complied with the terms of this offer .
Invoices proving purchases of sufficient stock to cover
presented coupons must be shown on request. Any
other application may constitute fraud. Coupon void
where prohibited, taxed or restricted. Coupon valid in
the US only. DO NOT DOUBLE. Consumer: Consumer
must pay any sales tax. Limit 1 coupon per purchase
on products(s) indicated. Void if reproduced, altered or
expired. Cash value .001¢. Reproduction of this coupon
is expressly prohibited. Mail to: Zevia, Inc., CMS Dept.
#94773, One Fawcett Drive, Del Rio, TX 78840
Once upon a time...soda loving people had a
revelation. They knew soda could be made
smarter. The best ingredients with a guilt free
sweetener seemed like an impossible dream. And
yet, it wasn’t!
How to tell healthy shoppers about this great new product!
–Natural Coupon Promotion - Case Study
Zevia wanted to support natural & independent retailers who are key to building the Zevia brand
Key goals of (any Zevia) retailer couponing program–
• To raise the brand awareness in-store both to the retail
team & the shoppers.
• To raise the brand affinity at the buyer’s desk by showing
commitment to supporting & driving sales.
• To increase trial at a given retailer.
• To increase volume at a given retailer.
– A Case Study
How to ..
- get people to Join the (healthy) Soda Revolution
- educate consumers on Stevia natural sweetener
- convince them it is time for smarter choices
Brand Solution: Leverage integrated Mambo Sprouts
targeted natural retailer & online promotions
– A Case Study
TM
Sp13 IS
Spring 2013 – Natural Channel
Online & Retail Promotions
Manufacturer’s Coupon | Expires: 08/31/13
$
1.00 Off
any ONE (1)
4-Pack Glass Bottles
Retailer: We will reimburse you the face value of
this coupon plus 8¢ handling provided you and the
consumer have complied with the terms of this offer .
Invoices proving purchases of sufficient stock to cover
presented coupons must be shown on request. Any
other application may constitute fraud. Coupon void
where prohibited, taxed or restricted. Coupon valid in
the US only. DO NOT DOUBLE. Consumer: Consumer
must pay any sales tax. Limit 1 coupon per purchase
on products(s) indicated. Void if reproduced, altered or
expired. Cash value .001¢. Reproduction of this coupon
is expressly prohibited. Mail to: Zevia, Inc., CMS Dept.
#94773, One Fawcett Drive, Del Rio, TX 78840
Su13 IS
TM
Manufacturer’s Coupon | Expires: 10/31/13
FREE
Buy any THREE (3)
16 oz Cans Get ONE (1) Zevia
Zero Calorie 16 oz. Can FREE
Retailer: We will reimburse you the face value of
this coupon plus 8¢ handling provided you and the
consumer have complied with the terms of this offer.
Invoices proving purchases of sufficient stock to cover
presented coupons must be shown on request. Any
other application may constitute fraud. Coupon void
where prohibited, taxed or restricted. Coupon valid in
the US only. DO NOT DOUBLE. Consumer: Consumer
must pay any sales tax. Limit 1 coupon per purchase
on products(s) indicated. Void if reproduced, altered or
expired. Cash value .001¢. Reproduction of this coupon
is expressly prohibited. Mail to: Zevia, Inc., CMS Dept.
#94773, One Fawcett Drive, Del Rio, TX 78840.
– A Case Study
Video
– A Case Study
Spring 2013 Mambo Natural Retailer Promotions
In Whole Foods Market
Whole Deal Value Guide
May - 2013
2013 Whole Planet
Foundation Calendar
– A Case Study
Spring 2013
In Mambo/Sprouts Farmers Market (in-store & on-line coupons)
Mambo &
@ Natural Expo– Get Social!
JOIN IN the
brand
Conversation!
– A Case Study Testimonial
Mambo Sprouts programs had two big wins for Zevia.
• “First, they allow us to efficiently connect with retailers
that aren’t able to provide these type of manufacturer
couponing programs on their own.
• Second, they allow us to find efficiencies in promoting in
a variety of retailers without managing multiple points of
contact.
As a small brand, this was key and as our brand has
grown, the success of these programs has as well.”
Barbara’s Natural Coupon Promotion –
Case Study
Barbara’s Story
A pioneer in the natural foods movement.
Founded in 1971 by a young woman
passionate about creating great-tasting food
from simple, wholesome ingredients.
Barbara’s Consumers:
• Core Natural & Organic Buyers
• Healthy Conventional Grocery Shoppers
Barbara’s Natural Coupon –Case Study
Barbara’s Coupon Promotion Goals:
• To reach & communicate Barbara’s Non-GMO leadership
message (‘loud & proud’) to core N&O shoppers.
• To increase natural channel sales & brand visibility.
• To engage with opinion leader natural consumers (social
media, contests, e-news).
Brand Solution: Leverage integrated Mambo Sprouts
targeted online & natural retail coupon promotions.
Source: 2014 Market LOHAS MamboTrack Natural & Organic Shopper Annual Study
Barbara’s Natural Coupon Promotion–
A Case Study
February 2014
Sprout Out (on-line coupons)
{ web page }
– A Case Study
Winter 2014 Mambo Retailer
Coupon Book Promotion
– A Case Study
March/April 2014
In Mambo/Whole Deal (in-store and on-line coupons)
– A Case Study
Winter 2014
In Mambo/Sprouts Farmers Market Promotion
(in-store and on-line coupons)
Natural Coupon– A Case Study
Mambo Sprouts Barbara’s Integrated Brand Coupon
Promotion successfully:
• Created ‘buzzz’ & awareness of Barbara’s as a leading
Non-GMO brand among core natural shoppers.
• Increased Barbara’s product sales in-store with high
value E-coupon.
• Engaged consumers online to continue the conversation
(social channels, email, contest).
Mambo Sprouts Marketing - Tips for a Success
Natural Brand Coupon Promotion
Brand It!
Logo / i m age
Anatomy of
Engaging
Natural
Coupon
Promotion
Tell Your Bran d
Story Br an d m essage
r ei n f o r ce u n i q u e b r an d
b en ef i t s: , Or gan i c,
No n -GM O – gr eat
t ast i n g. Nat u r al
Sw eet en er
Get Their
Attention H i gh
val u e co u p o n o r
sp eci al o f f er
Keep it Simple & Easy
Si n gl e Pu r ch ase
Req u i r em en t an d go od
o n var i et y o f b r an d
p r o d u ct s
Keep Attention
Get Social
Con su m er
en gagem en t vi a
Facebo ok ,
Tw i t t er
Where to Buy
St o r e l o cat o r
Dai l y gi veaw ay,
con t est , r eci p e, et c.
Let Them Le arn
More Feat u r e br an d
w eb si t e
Expiration Date
3 m o n t h s+ t o al l o w t i m e
t o u se
How To Measure the Impact of Natural Coupon
Promotions
Coupons Generate Awareness and Trial
• Printable Internet Coupon Redemption – 17% - 18%*.
• Retailer In-store – Other Handouts - 3.5% - 4.5%*.
Build Brand Awareness (Impressions)
But Consumer Engagement is Key
• LIKES on Facebook, Pinterest PINS & shares.
• Contest entries, Sign ups for brand communications.
*CPG Coupon Redemption (MPS, Inc. 2014)
7 Best Practices in Creating Successful Natural
Coupon Promotions
1. Get Their Attention – high value coupon, trial offer, header
or Email subject line
2. Tell Your Brand Story –natural message that speaks to
audience (e.g., Natural, Non-GMO, Gluten Free)
3. Keep it Simple & Easy - single purchase, good on variety of
brand products
4. Time to Use – allow long enough expiration date to redeem
5. Let Them Learn More! (website or QR code, video)
6. Engage – Add a contest, recipe, etc.
7. Get Social – via Facebook, Pinterest, Instagram, etc.
Source: Mambo Sprouts Marketing Research & Insights
www.mambosprouts.com
Coupon Promotions that Engage
Healthy Shoppers – Natural Channel
Case Studies & Best Practices
Thank you!
www.mambosprouts.com
CEO/Founder Matthew Saline
Karen Herther, Sr. Director Research & Insights