At Kantar Consulting, we have frequently told our clients that growth will increasingly come from uncomfortable places. I can honestly say that no sound bite we have developed in my 20+ years of doing this type of work has engendered more head nods and general agreement than this simple sentiment — which is one of the primary reasons it is a cornerstone of Kantar Consulting’s “switch on growth” strategy.
This observation is rooted in the idea that most retail growth over the last 30 years (since the mass rise of Walmart, which used to be an uncomfortable place for companies, believe it or not) has come from retailers that present uncomfortable challenges to the suppliers selling to them. Today, this remains true. At a global level, discount, eCommerce, cash and carry/club, small-format grocery, off-price apparel, pharmacy/drug, specialty formats, and the traditional trade all represent growth vehicles that are less comfortable than the large-box, large-velocity, large-shelf retailers that most global FMCG companies are wired for.
In forming Kantar Consulting this year, we have found that the concept applies to consumer marketing as well. Whether it is uncomfortable segments, media platforms, analytic techniques, or skills, growth in creating demand (brand and marketing) has become just as uncomfortable as growth in converting demand (retail/shopper). This combination of different business problems and opportunities created by these uncomfortable places forced us to do a better job of dimensionalizing why these uncomfortable places are uncomfortable and what the solutions for discomfort look like.
Over the next six months, you can expect more detail on the nature of these uncomfortable places (starting with a discussion about the “Uncomfortable States of America,” premiering in October 2018) and how best-in-class companies are conquering discomfort and winning.
unease, physical discomfort, pain, and awkwardness.Follow the Money
Unease: “I can’t see it.” So many of our clients are growing more slowly today because small brands have appeared in niches or on the boundaries of their categories and taken valuable consumers and share. The inability to “see” these growth opportunities isn’t because these companies are blind to the opportunity, but because they are blind to the significance of the opportunity. Virtually every company losing share to a niche brand today probably has a PowerPoint buried on a shared drive somewhere that describes its plan to attack that segment. And chances are, the company passed over the plan in favor of more “comfortable” alternatives. Those alternatives often fail to generate sustained growth — or any growth, for that matter — while the more challenging opportunities grow into scaled businesses that are then either copied or acquired.
On the retail side, emerging customers are often under-resourced in favor of established retailers that drive volume. Meanwhile, companies that get an early start in adapting their businesses to smaller players will enjoy genuine first-mover advantage as these small entities get bigger.
Our solution for overcoming this discomfort is the “W” in the WHOLE Demand framework, which is the wide-angle lens. For companies seeking to grow in an uncomfortable world, the virtue of a wide-angle lens is twofold:
Physical discomfort: “I can’t reach it.” Even if an opportunity is identified, efforts to create or convert demand and engage or convert the consumer/shopper can fall flat. The advertising does not resonate, the retail program does not catch the eye, or the new techniques are ineffective or do not generate enough ROI. We can solve for this gap with the “H” in WHOLE, which stands for human-centric. The critical mindset here is to meet consumers/shoppers where they want to be, not where the brand/company would prefer them to be.
At a simple level, conversations about trying to “shift” shoppers to more lucrative classes of trade and away from retailers they obviously prefer is a failure of human understanding. Most brands cannot change a shopper’s retailer of choice. In consumer marketing, we can often trace this lack of “reach” back to wishing the consumer preferred old and more established platforms of advertising consumption. Human-centric approaches allow companies to speak to their target consumers in language native to them and on the platforms and in the outlets of their choosing.
Pain: “I can’t afford it.” One of the most common objections to growing in uncomfortable places is ROI — that spending a dollar here will not generate the same return as spending it in a more comfortable place. As I hope you are beginning to see, a number of these states of discomfort are interrelated. In this case, the frame of reference and the lack of the right “angle” lens is often a crippling problem afflicting the “O” in our WHOLE Demand framework, or optimization. The common optimization challenges to overcome are:
Awkwardness: “I can’t do it.” Parents will recognize the difference between a child saying “I can’t do it” (which usually means “I haven’t done it before and I’m afraid”) and legitimate lack of ability. Our clients suffer from both in this new world of growth, which brings us to the “L” in WHOLE, which stands for learning. To thrive in uncomfortable places, an organization needs to learn on three levels:
Finally, the “E” in WHOLE, which stands for experience, is the outcome of mastering these critical uncomfortable skills — brands and shopping experiences that create and convert demand. We’ll cover these in more detail as we expand each of these solution areas.
The idea of WHOLE is also the core strategic idea required to win in this environment, which is WHOLE Demand — integrating marketing and sales so you can move seamlessly from demand conversion to demand creation in strategy, planning, and action. Kantar Consulting stands ready to help you get “uncomfortable” in this WHOLE new world.
Join me this December at the Retail Insights Conference to continue the conversation