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Using Social Media to
Sweeten Confectionery
Industry Growth
The millions of conversations on social media provide us new
ways to learn more about what matters to our customers.
Pete Healy
GyroHSR




                                                   listen to and understand customers — for
T     he best businesses in any industry focus
      tirelessly on the ultimate driver of their
success: the customer. The confectionery
                                                   now, let’s focus specifically on consumers
                                                   — has grown almost unimaginably through
industry has important channel partners —          the advent of social media. By now the
distributors, wholesalers, retailers — who         names of social network sites such as Face-
are, of course, valued customers. But the          book and LinkedIn have become familiar to
ultimate arbiter of our success is the cus-        many of us, but these represent just a part of
tomer we call a consumer, because this is          the tens of millions of online conversations
the person who decides whether our tea-            that also take place around the clock on         Pete Healy is VP
infused chocolate, our carbonated chewing          blogs, forums and platforms such as Twit-        account planning at
                                                                                                    GyroHSR LLC. Prior to
gum or our guacamole-flavored jelly bean is        ter. Millions of additional pieces of what
                                                                                                    this appointment he
worth the money in his or her pocket today,        has come to be known as consumer-gener-          was the director of
and whether it will still be worth the price       ated content — photos shared on Flickr,          Crowbar Marketing.
tomorrow.                                          videos uploaded to YouTube and the like          He previously worked
                                                                                                    at Perfetti Van Melle
   Understanding customers — and thereby           — are posted daily. If our ability to capture
                                                                                                    USA and Jelly Belly
gaining their business — depends largely, of       consumer conversations five years ago was        Candy Company.
course, on listening. Even when a customer         akin to overhearing occasional snatches of
isn’t yet sure what he or she wants, that very     water-cooler conversation, it now seems that
uncertainty can provide us insights that lead      we have been transported into the middle of
to new opportunities to meet that cus-             cacophonous crowds in Times Square on
tomer’s needs — and very possibly the same         New Year’s Eve.
or similar needs of the customer’s friends,           And, frankly, the quality of the conver-
family or colleagues. This is true whether         sations varies as broadly as the range of top-
we sell candy, computers or carpeting.             ics, from the mundane to the philosophical,
   In just the last five years our ability to      from politics to potato chips. We are, after ➤


                                                                        The Manufacturing Confectioner • June 2011 37
Social Media in the Confectionery Industry

Social media offers       all, just plain people before we’re con-       retain loyal consumers in an intensely com-
  the confectionery       sumers, but therein lies the payoff. We are    petitive, impulse-driven category.
         industry an      social animals, and most of us enjoy being
                          “in the know,” sharing our opinions and        THE CURRENT SOCIAL MEDIA
     unprecedented                                                       LANDSCAPEXXXXXXXXXXXXX
      opportunity to      influencing others. How good is that new
                                                                         In 2008, Brian Solis, a highly regarded new-
 leverage the voice       restaurant? Which 4G cell phone is the best?
                          Is that new dark chocolate candy bar as        media thought leader based in San Fran-
 of the customer in
                          good as it looks?                              cisco, mapped the “universe” of social-
     developing and
                             Like it or not, people — consumers, in      media sites as a color wheel (Figure 1),
delivering products
                          commercial terms — are using social media      with a spectrum that ranged from main-
    that can attract,
                          to talk about our products and our brands.     stream and niche social network sites
 engage and retain                                                       (Facebook, LinkedIn) to video and music
                          This is human nature, but now vastly ampli-
   loyal consumers.                                                      sites (YouTube, Pandora) to blog and con-
                          fied through a new-media universe that’s
                          here to stay. Do we want to listen? Do we      versation platforms (Blogger, Tumblr, Twit-
                          want to learn? Do we want to converse          ter). This map, which Solis entitled “The
                          with people who clearly are engaged            Conversation Prism,” also depicts dozens
                          enough to share their raves, complaints,       of other sites through which millions of
                          suggestions and desires? Social media          people share text-based and graphic con-
                          offers the confectionery industry an           tent of all types. Solis’s map is an insight-
                          unprecedented opportunity to leverage the      ful snapshot of a very young universe; some
                          voice of the customer in developing and        of the sites listed will disappear over time,
                          delivering products — and an overall brand     while others will grow and new ones arise.
                          experience — that can attract, engage and      Still, the point is that people have signed on
                                                                         to social media at an accelerating rate, even
The Conversation Prism                                                   if it’s only to see (or share) photos of their
                                                                         grandchildren on Facebook.
                                                                             In fact, Americans have embraced sev-
                                                                         eral social network sites with fervor (with
                                                                         one exception: MySpace, one of the first
                                                                         mainstream sites, now in decline as newer
                                                                         sites grow dramatically). Figure 2 summa-
                                                                         rizes key attributes of the current main-
                                                                         stream social-media sites:
                                                                             The social-media landscape extends, of
                                                                         course, beyond network sites like these.
                                                                         The Ning platform or metasite (www.ning.
                                                                         com) comprises a virtual gated community
                                                                         of thousands of niche-interest groups rang-
                                                                         ing from accountants to rock-climbers to
                                                                         devotees of Renaissance music. The site
                                                                         invites visitors to create and run their own
                                                                         social networks under the Ning umbrella
                                                                         for a monthly fee.
 Figure 1                                                                    Flickr is perhaps the best-known photo- ➤


38 June 2011 • The Manufacturing Confectioner
Social Media in the Confectionery Industry

sharing site, containing an estimated 4.5 bil-        “spectators” contribute no content, but               Approximately
lion images uploaded by members into gal-             read customer ratings and reviews, among              80,000 blogs are
leries of all types. Approximately                    other activities; even at this lowest rung of         launched each day,
80,000 blogs are launched each day, with              participation, social media is influencing            with the total now
the total now numbering in excess of 110              purchase decisions on a scale far beyond              numbering in excess
million (although many have become dig-               traditional word of mouth. The amplifica-             of 110 million.
ital flotsam, unattended by their authors).           tion of influence was recognized by
Tens of thousands of forums are main-                 Bernoff and Li when they added “conver-
tained by people sharing interests in every-          sationalists” to their model in 2010. These
thing from car seats to carpentry. Fiskars is         are participants who do not generally post
one company that has revitalized its brand            original content, but who actively foster
of scissors by creating a forum dedicated to          discussions on blogs, forums, opinion sites
and administered by passionate scrapbook              and the like. At the top of the social
hobbyists (www.fiskateers.com).                       technographics ladder are the “critics” and
   Of course, not everyone participates               “creators” who, as their labels imply, reg-
equally. In late 2007, Josh Bernoff and               ularly post product reviews and author
Charlene Li of Forrester Research intro-              blog entries, and upload photos, videos or
duced a “social technographics ladder” to             other content. (Of note is the fact that
represent the range of activity (Figure 3).           videos and annotated photos are now
“Inactives,” unsurprisingly, do not partic-           widely used for many product reviews.)
ipate in social media, although they may                 Why have millions of people gotten so
use the internet to shop, for email or for            involved in social media? First is the core
similar “Web 1.0” activities. One step up,            fact that, as we’ve noted, human beings are

Key Attributes of Current Mainstream Social Media Sites
 Facebook
   Users (2011):      525MM worldwide; 154MM in USA (double since 2009)
   Demographics:      18 – 24 yrs = 25%; 25 – 34 yrs = 25%; 35 – 44 yrs = 20%
   Site Character:    “Friends & family”
   Notes:             Average FB user is on the site 25 min per day; 71% of all U.S. internet users on FB
 Twitter
   Users (2011):      190MM worldwide; 90MM in USA (up from 12MM in 2009)
   Demographics:      45% of users >35 yrs (average user age = 39)
   Site Character:    Real-time, experiential, eclectic: from the mundane to the profound
   Notes:             Annual household income of users: 30%>$100k, 58% >$60k
 YouTube
   Views (2011):      Two billion views per day worldwide (600MM in USA)
   Demographics:      Global
   Site Character:    Eclectic in content, multilingual, multicultural
   Notes:             FB users in aggregate watch 46.2 years of YouTube videos per day; each auto-share
                       tweet about a YouTube video spurs seven new YouTube user sessions
 LinkedIn
    Users (2011):     95MM worldwide; 45MM in USA
    Demographics:     64% male; average user age = 41
    Site Character:   Professional; networking and discussion forums
    Notes:            Average annual household income of users: $110k
 MySpace
    Users (2011):     46MM (USA); down from 65MM in 2009
    Demographics:     56% female; 44% are 18 – 34 yrs
    Site Character:   Bands, high school students, 30-something moms
    Notes:            Annual household income: 46% at <$60k
 Figure 2                                                                                                   ➤


                                                                                   The Manufacturing Confectioner • June 2011 39
Social Media in the Confectionery Industry

  The simultaneous        inherently social animals. We want to          outfits: these all represent the role of
  development of a        belong. Beyond our obvious survival needs,     brands in our need for self-identity, self-
consumerist culture       we want to voice our thoughts, exchange        expression and peer affinity.
           and mass       ideas and learn from others.                      In fact, for many of us, these two emo-
    communications           Second, the simultaneous development        tional drivers have engendered a third,
     during the 20th      of a consumerist culture and mass com-         which we can call the brand/friend blur,
    century fostered      munications during the 20th century fos-       that is, the fact that we often rely on brands
     our tendency to      tered our tendency to connect to brands        for comfort, excitement or other emotional
                          — to choose Ford over Chevy, for exam-         boosts — much as we might expect from
 connect to brands
                          ple — through our relationships with other     friends. Coffee shops were coffee shops
         through our
                          people. Describing the merits of the new       until Starbucks came along, elevating the
  relationships with
                          Lexus around the water cooler, debating        emotional reward of consuming coffee to
       other people.
                          who makes the best golf clubs with friends     a level that engendered remarkable and
                          at a barbecue or seeing platoons of teens at   enduring brand loyalty. The coffeehouse
                          the mall all wearing Abercrombie & Fitch       chain remains a friend of sorts to count-
                                                                         less millions around the world.
                                                                            Fourth and last, online social media and
The Social Technographics Ladder
                                                                         networks have immeasurably increased
                                                                         the opportunities each of us has to be a
                                                                         “brand champion,” that is, to recommend
                                                                         a product, a service or a brand to a far
                                                                         larger and widespread audience than our
                                                                         traditional circles of family, friends and
                                                                         colleagues. Of course, the same audience is
                                                                         available when we play the role of a “brand
                                                                         detractor”; either way, the point is that
                                                                         social media provides for many individuals
                                                                         a scope of influence unimaginable even
                                                                         10 years ago.
                                                                            But that’s not all, as some TV ads pro-
                                                                         claim. Another wave of amplification is
                                                                         hitting us at this moment: the increasingly
                                                                         rapid diffusion of mobile technology in the
                                                                         form of smartphones (Figure 4). The inter-
                                                                         net marketing-research company com-
                                                                         Score reports than one in four cell phone
                                                                         owners in the United States now uses a
                                                                         smartphone, a clear indication that we’re
                                                                         increasingly online while on the move. In
                                                                         fact, comScore research confirms that
                                                                         nearly 40 percent of smartphone owners
                                                                         are using internet browser functions to
                                                                         access news and information online, and
 Figure 3                                                                nearly 25 percent regularly use their smart- ➤


40 June 2011 • The Manufacturing Confectioner
Social Media in the Confectionery Industry

phones to access social network sites. This         Consider a broader issue such as the crit- The likely fact is
means that the conversations that take           icisms expressed by some health advocates that consumers are
place across the internet have even greater      and consumers over the use of high-fruc- already talking
reach as people participate from smart-          tose corn syrup in food and beverage prod- about your brand
phones and other mobile devices.                 ucts, including, of course, confectionery. or your business.
                                                 Your company may have received no You can remain
IMPLICATIONS AND OPPORTUNITIES
                                                 inquiries or complaints so far, but the man- silent while the
FOR CONFECTIONERY R&D/
PRODUCTIONNXXXXXXXXXXXXXXXXX                     ner in which social media disseminates and conversation
                                                 perpetuates discussion — with, arguably, a continues, or you
Sociology and changes in the media land-
                                                 disproportionate representation of extreme can present your
scape are well and good, but what do they
matter for confectionery-industry profes-        opinion — may at some point draw your own point of view.
sionals working in product development or        business into the fray. Why do you use high-
production? The answer lies not only in how      fructose corn syrup in your products? Why
social media amplifies, but how it also accel-   don’t you label it more clearly on your
erates conversation among consumers, and         packaging? When do you plan to stop using
between consumers and businesses. Con-           it? The risk to your company’s reputation
sider the consumer who feels she received        and to its brand image may be substantial.
an unhelpful response from your customer            Senior corporate managers may right-
service department to her question about         fully object to the possibility of unjustified
a possible allergen in your product. In the      attacks or ill-informed accusations from
recent past she may have told a handful of       vocal activists online. Marketing managers
others about her dissatisfaction. Today, she     may fear that they will “lose control of
has the option of using her blog or a social     their brand” if they venture into the social-
network to share her discontent (or worse)       media realm. But if you are one of those
with hundreds or thousands of others             managers, the likely fact is that consumers
instantly, some of whom will likely share or     are already talking about your brand or
echo her message with others in their own        your business. You can remain silent while
networks. This ripple effect can be aston-       the conversation continues, or you can
ishingly fast; and while it may dissipate just   present your own point of view. When
as quickly, it may also gain force as it         mom-bloggers were offended by an online
spreads, provoking attention from reporters      ad campaign for Motrin in September 2008,
in mainstream media.                             they unleashed their anger quickly and
                                                 vociferously on their blogs and through
Social Media Amplification                        Twitter. McNeil Consumer Healthcare, the
                                                 maker of Motrin, was further criticized for
                                                 being slow and insincere in its apology.
                                                 Once the apology was made, however,
                                                 some mom bloggers called upon others to
                                                 let the issue go, showing that a sense of
                                                 fairness can prevail in social media, just as
                                                 in offline communities.
                                                    Returning to a positive scenario, con-
                                                 sumers may be delighted with your new
 Figure 4                                        tea-infused chocolate truffles. You may dis- ➤


                                                                      The Manufacturing Confectioner • June 2011 41
Social Media in the Confectionery Industry

        Social media      cover that several prominent bloggers are       bucks Idea, an online social community
   provides the R&D       generating many positive comments in            the coffeehouse chain launched in the
       or production      response to their posts about your prod-        spring of 2008. The premise was straight-
   professional the       uct. In fact, someone has set up a Face-        forward, as Starbucks told visitors to the
      opportunity to      book page where nearly a thousand fans          site, “You know better than anyone else
   access the voice       are already sharing their ideas for new fla-    what you want from Starbucks. So tell us.”
   of the consumer        vors; seaweed-infused truffles are winning      A recent check of the site showed that
almost immediately,       at the moment.                                  more than 44,000 ideas have been submit-
    in real time and         Of course, several aspects of these sce-     ted for food and beverage items, including
   with little effort.    narios — package design or new-flavor           flavors, blends and formulations. This fig-
                          requests, for example — traditionally fall      ure does not include another 21,000 ideas
                          within marketing or customer service. Here      for merchandise other than food and bev-
                          again, though, the rules are changing. Social   erages. It also does not include thousands
                          media not only amplifies and accelerates,       of suggestions related to the customer
                          it provides even the r & d or production        experience inside Starbucks locations.
                          professional ensconced in the most remote       While Starbucks has the advantages of a
                          laboratory or office the opportunity to         global brand and thousands of its own
                          access the voice of the consumer almost         storefronts, it achieved that status only by
                          immediately, in real time and with little       listening to its customers. The advent of
                          effort. Whether that professional scans         social media has given the company even
                          social media to stay ahead of potential         more opportunities to deepen the engage-
                          problems or to stay current with her col-       ment and loyalty of its fans.
                          leagues in marketing, customer service or
                          sales, online conversations offer a tremen-     IMPLICATIONS FOR CONSUMER-
                          dous wealth of information and insights.        DRIVEN BRAND ENGAGEMENTX
                             In 2010, the semiconductor manufacturer      If consumers increasingly regard their
                          Intel decided to ask consumers for new          favorite brands as a part of their self-iden-
                          product ideas. The company launched a           tity, as a platform for peer affinity and even
                          Facebook page through which consumers           as vehicles for self-expression, social media
                          could submit their own ideas or comment         clearly offer new ways to project those
                          on those submitted by others. The winner        emotional elements. Yes, that may be true
                          of this promotion would be named vice pres-     for cars or clothing, one might say, but isn’t
                          ident of r&d for a day, with the chance to      it far-fetched to ascribe the same dynamics
                          work with Intel engineers at the company’s      to a roll of mints or a bag of candy corn?
                          product-development center. Other prizes            Most marketers would agree that this is
                          included notebook computers and software.       not far-fetched, since the physical product,
                             The results of the 10-week event were        as important as it is, constitutes only the
                          remarkable: 53,000 participants who gen-        starting point for creating a brand experi-
                          erated 5,000 unique ideas; 200,000 views        ence that, if positive, can grow and deepen
                          of those ideas; 8,000 comments and 110,000      over time. When the consumer’s emotional
                          ratings; and a total of 420,000 engagements     attachment is validated by positive reac-
                          between consumers and the Intel brand.          tions from others in his network, his
                             Perhaps more relevant to food-industry       engagement with the brand deepens, rais-
                          professionals is the example of My Star-        ing the odds that he will continue to pur- ➤


42 June 2011 • The Manufacturing Confectioner
Social Media in the Confectionery Industry

chase the product. While the relevance of        snacks a new way to share their enthusiasm       Consumers use
product categories varies for each con-          for the brand. Without a large marketing         social media to
sumer depending on his or her needs and          budget, the company chose Facebook as its        amplify their
desires, confectionery has the advantage         platform to launch a series of monthly con-      engagement. Their
of being a fun, low-cost category from a         tests and sweepstakes, each centered on          posts accelerate
consumer standpoint.                             sharing and rating consumer-generated con-       imitation and
   The low-cost, low-risk attributes of con-     tent, ranging from fan videos to flavor ideas.   engagement by
fectionery make it an easy product to talk       Visitors to the Tornados Facebook page           others. Marketers
about. Trial based on someone’s recom-           could download coupons, and win points           can access these
mendation is usually simple and inexpen-         redeemable for Tornados-branded mer-             engagements more
sive, and in the “flat world” of social media,   chandise — and even a family trip to a           easily and broadly
nothing more is required to post an opinion      Nascar race at Daytona — by commenting           than ever before.
or review. (In fact, even product trial is       on other visitors’ content. When the Face-
optional, if one chooses to dismiss an item      book page reached 100,000 fans, Ruiz Foods
as too weird, unhealthy or otherwise unde-       committed to providing 100,000 free boxes
sirable.) In broader social terms, confec-       of Tornados through downloadable buy-
tionery is an easy conversation starter. Just    one, get-one e-coupons. By the end of the
like wandering into a neighborhood party,        campaign, the company had gained more
the first-time visitor to Twitter or another     than two million brand engagements with
social network site uses the topic to break      consumers online and well over 150,000
the ice, project some personality, establish     new Facebook fans. And by any measure,
rapport and create new acquaintances. If I       Ruiz Foods was successful in boosting the
like salted licorice and you like sweet, we      Tornados brand by using social media in
share a starting point from which to explore.    combination with tried-and-true promo-
   But if I like Darrell Lea licorice and you    tional activities to create new fans and
prefer Panda, then we move from category         strengthen consumer brand loyalty.
to brands, adding another dimension to              By now, millions of pieces of consumer-
the conversation. Confectionery is inher-        generated content about brands (including
ently fun, at the same time evoking child-       confectionery) have been shared on blogs,
hood memories and other pleasant asso-           Facebook and Twitter, and through videos
ciations. But we can talk only so long about     and photos uploaded to YouTube, Flickr and
a product type or category in general.           similar sites. Consumers use social media to
Brands, as we have noted, provide a spring-      amplify their engagement. Their posts accel-
board to do more, to project our individual      erate imitation and engagement by others,
personalities. Brands often serve as a           and marketers can access these engage-
means of self-expression. This is evident        ments, however large or small, more easily
in consumer actions that range from the          and broadly than ever before.
simple — for example, the habitual use of
a tagline from a TV ad — to the elaborate,       LEVERAGING SOCIAL MEDIA FROM
as when friends gather to drop chewy mints       CONCEPT TO CASH REGISTERXXXXX
into bottles of soda, releasing foamy gey-       How do we turn brand engagement
sers and provoking boisterous amusement.         through social media into sales that help
   In the summer of 2009 Ruiz Foods              our businesses grow? This can be done in
decided to give fans of their Tornados hot       numerous ways through each step of the ➤


                                                                         The Manufacturing Confectioner • June 2011 43
Social Media in the Confectionery Industry

     Companies that       process from product concept to cash reg-      • LinkedIn Groups to track conversations
     integrate social     ister, and can be tailored to the goals and      on technical issues, particularly in inter-
                          resources of any manufacturer.                   national contexts.
    media into their
                             Corazonas Foods, a manufacturer of          Marketing
         culture and
                                                                         • Facebook to engage consumers in con-
      operations will     snack foods based in Los Angeles, is a good
                                                                           versation about your brands and products.
          strengthen      example. Driven by the death of her father
                                                                         • Twitter and Facebook to promote and
  alignment of their      from heart disease, ceo Ramona Cappello          report in real time on sponsored events,
        business and      started the company in 2005 with the goal        roadshows, in-store demos.
                          of creating tortilla chips and other snacks    • Flickr to share event photos, or to invite
   brand strategies.
                          that both taste good and can actually lower      consumers to post their own photos
                          cholesterol. The company’s products con-         related to their experience of your
                          tain plant sterols that have been clinically     brands or products.
                                                                         • YouTube to share event or roadshow
                          shown to provide this benefit, and prod-
                                                                           video, or to invite consumer-generated
                          uct packaging includes the FDA-approved          content related to a contest or promotion.
                          health claim.                                  • Google Analytics to understand visitor
                             Corazonas Foods is another company            traffic to and on your brand or company
                          that has chosen Facebook as their key            website, and to integrate website and
                          social media platform through which to           social-media consumer/brand touch-
                          create and retain fans and customers. Much       points more effectively.
                                                                         • Mobile applications to deliver incentives
                          like Ruiz Foods, Corazonas offers coupons
                                                                           and personalized content to opt in con-
                          through the social network site, but also        sumers (may be triggered by shopper
                          goes further with a direct “Prove It” chal-      scans of quick response codes at point
                          lenge. A visitor can register her name and       of sale).
                          email, and then have her cholesterol tested    Sales/trade support
                          before and after eating Corazonas snacks       • LinkedIn Company or Group page(s)
                          over a four-week period. If her cholesterol      for distribution of value-add informa-
                          doesn’t drop, the visitor will receive a         tion to channel partners or retail trade
                                                                           customers.
                          refund. The company extends the brand
                                                                         • Twitter for real-time updates on in-store
                          experience, including social-media ele-
                                                                           demos or other promotional events.
                          ments, all the way to the point of purchase,
                                                                         Customer service/consumer affairs
                          where shoppers can receive cholesterol
                                                                         • Addictomatic or similar low-cost tools
                          screenings near Corazonas displays and           to scan consumer sentiment or response
                          in-store sampling. The company uses Twit-        to specific events.
                          ter to announce screening schedules and        • Twitter or Facebook to engage consumers,
                          itineraries for interested consumers.            facilitate resolution of complaints, proj-
                             In general terms, then, manufacturers         ect responsive image for the company.
                          can leverage social media and digital tools
                                                                         INTEGRATION INTO BUSINESS
                          in a number of ways to differentiate and       STRATEGIESXXXXXXXXXXXXXX
                          strengthen their brands:
                                                                         By its nature, social media is open and
                          Product concepts/product innovation            accessible. Conversation and collaboration
                          • Google Alerts and similar tools to scan      replace the one-way “push” communica-
                            blogs and forums for trend-focused con-
                                                                         tions of traditional advertising and Web 1.0
                            versations on analogous categories such
                            as flavored beverages, baked goods or        corporate websites. Social media therefore
                            cross-cultural fusion foods.                 challenges companies to attain higher lev- ➤


44 June 2011 • The Manufacturing Confectioner
Social Media in the Confectionery Industry

els of collaboration across corporate func-    brand loyalty that drives sales and to           The fundamental
tions in order to compete more effectively.    improve operations while reducing inter-         goal is to tap social
In fact, companies that integrate social       nal functional silos. For that reason, social-   media as a new
media into their culture and operations        media team members should never be iso-          tool to gain
will strengthen alignment of their business    lated in a separate “department” of              customer insights,
and brand strategies, in turn strengthen-      whatever sort, called upon only when a           to innovate, to
ing brand equity and brand loyalty among       manager wants a “funny viral video.”             build brand loyalty
consumers.                                                                                      that drives sales
   Like other c p g (consumer packaged         RETURN-ON-INVESTMENT
                                               CONSIDERATIONSXXXXXX                             and to improve
goods) companies, confectionery manu-                                                           operations while
                                               That’s all great, one may ask, but what’s
facturers can integrate social media into                                                       reducing internal
                                               the bottom line? What’s the r o i (return
their operations in various ways, depend-                                                       functional silos.
                                               on investment) of social media for a candy
ing on business goals, resources and inter-
                                               company? In these early days of this new
nal culture. Nonetheless, the foundation
must be a firm and sustained commitment        media landscape, there is no single, simple
by senior management to leverage social        answer. The good news is that tools of
media in order to do the following:            measurement abound; the big questions
• Engage consumers openly and authen-          are what to measure, and why.
   tically about the company’s products           Some successful business people see
   and brands.                                 social media as an investment in learning
• Recognize and reward fans of the com-        more about customers through dialogue,
   pany’s brands.                              or as a way to anticipate and leverage
• Optimize opportunities to support
                                               trends sooner and more effectively. What
   and/or promote retail trade customers.
                                               is the r o i on equipping your sales force
• Inform those interested about the com-
   pany’s community-focused programs or        with cell phones? What was the point of
   events.                                     creating a company website 10 years ago?
• Represent the industry of which the          In fact, as more companies begin to use
   company is part.                            social media, what may have provided a
With appropriate support, senior man-          competitive edge two years ago is fast
agement in each functional area should         becoming table stakes. But as we know,
evaluate and propose ways to leverage          ultimately there is a cost and, therefore, a
social media, and toward what objectives.      net value to any business activity.
“Appropriate support” in planning, imple-         The debate over the roi of social media
mentation and periodic measurement can         reflects the tension between opportunity
take the form of a nimble cross-functional     and risk in a new marketing landscape. But
team trained in social-media practices. (For   it has been intensified by attempts (often
those wondering why this would matter to       by social-media proponents) to apply
accounting or hr managers, it’s worth not-     financial terminology to nonfinancial meas-
ing that professionals in those fields are     ures: the number of hits on a company
generally very active on social network        microsite, the number of fans on a Face-
sites such as LinkedIn and Ning.)              book brand page, the number of views of
   Keep in mind that the fundamental goal      a company’s YouTube video and the like.
is to tap social media as a new tool to gain   These can be meaningful indicators, but
customer insights, to innovate, to build       they clearly are not financial measures. ➤


                                                                       The Manufacturing Confectioner • June 2011 45
Social Media in the Confectionery Industry

      The millions of        At this point the value of the sales-fun-     with brands and with the companies that
    conversations on      nel model comes to mind. Can we evaluate         produce those brands. The one-way “push”
    social media can      and select social-media-related indicators       of traditional advertising is now joined by
 teach us new ways        that might lead toward conversion? Can           conversations moving in all directions. In
       to learn more      we connect one consumer/brand touch-             this rapidly changing landscape, marketers
about what matters        point to another, and track the progression      fear “losing control” of their brands and
   to our customers,      to quantifiable sales points? For example,       ceos wonder whether social media can
 including how they       can we launch interactive digital ads that       really help business.
                          lead viewers to our microsite, where they           But if nothing else, we have learned that
      influence each
                          would receive an incentive to share with         the millions of conversations on social
other, and why they
                          friends via Twitter or Facebook, ultimately      media can teach us new ways to learn more
choose to purchase
                          driving new sales at nearby retailers?           about what matters to our customers,
        our products.
                             As mobile applications multiply, 4G cell      including how they influence each other,
                          phones with geo-location become com-             and why they choose to purchase — or
                          monplace, and quick response (q r) codes         bypass — our products. We can explore the
                          provide manufacturers with new ways to           new social-media landscape one step at a
                          incentivize consumers all the way to the         time, learning as we go, if we’re commit-
                          retail aisle, a social-media-driven sales fun-   ted in that effort. This includes the clear
                          nel becomes increasingly feasible. We have       understanding that fans on Facebook don’t
                          discussed the rapid diffusion of smartphones,    equal register rings, but that more fans can
                          which enables increasing numbers of con-         mean more sales, more often if we set the
                          sumers, while standing before product dis-       right goals and measures.
                          plays in a store aisle, to interact with the        People are talking about our brands; that
                          companies that make those products. We           is a simple reality. The question is whether
                          also have discussed the opportunity to use       we believe we can grow our businesses by
                          social-media platforms in combination with       ignoring or by engaging in those conver-
                          each other and with traditional marketing        sations. As new as social media still is, smart
                          tactics. In the case of Corazonas Foods and      companies already know the answer. n
                          its cholesterol-lowering snack products, this
                          approach has enabled them to increase their      REFERENCES
                          share of acv (all commodity volume) up to        Bernoff, Josh. Empowered. Forrester Blogs. Jan-
                                                                             uary 2010. Web: http://forrester.typepad.
                          40 percent in key markets, a remarkable            com/groundswell/2010/01/conversationalists-
                          achievement for a small company in an              get-onto-the-ladder.html
                          intensely competitive category.                  Bernoff, Josh, Charlene Li. Social Techno-
                             But in all cases, and regardless of tactics     graphics Ladder. Forrester Research, 2010.
                          or technology, the essential nature of social    Solis, Brian. The Conversation Prism v2.0.
                          media remains paramount, in the form of            @BrianSolis blog. March 30, 2009. Web:
                                                                             h t t p : / / w w w. b r i a n s o l i s. c o m / 2 0 0 9 / 0 3 /
                          a willing partnership and ongoing dialogue         conversation-prism-v20/
                          of the consumer with the brand marketer.

                          CONCLUSION
                          The advent and spread of social media in
                          hardly more than five years has trans-
                          formed the relationship consumers have
                                                                           Presented at the PMCA Production Conference



46 June 2011 • The Manufacturing Confectioner

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Social Media in the Confectionery Industry

  • 1. Using Social Media to Sweeten Confectionery Industry Growth The millions of conversations on social media provide us new ways to learn more about what matters to our customers. Pete Healy GyroHSR listen to and understand customers — for T he best businesses in any industry focus tirelessly on the ultimate driver of their success: the customer. The confectionery now, let’s focus specifically on consumers — has grown almost unimaginably through industry has important channel partners — the advent of social media. By now the distributors, wholesalers, retailers — who names of social network sites such as Face- are, of course, valued customers. But the book and LinkedIn have become familiar to ultimate arbiter of our success is the cus- many of us, but these represent just a part of tomer we call a consumer, because this is the tens of millions of online conversations the person who decides whether our tea- that also take place around the clock on Pete Healy is VP infused chocolate, our carbonated chewing blogs, forums and platforms such as Twit- account planning at GyroHSR LLC. Prior to gum or our guacamole-flavored jelly bean is ter. Millions of additional pieces of what this appointment he worth the money in his or her pocket today, has come to be known as consumer-gener- was the director of and whether it will still be worth the price ated content — photos shared on Flickr, Crowbar Marketing. tomorrow. videos uploaded to YouTube and the like He previously worked at Perfetti Van Melle Understanding customers — and thereby — are posted daily. If our ability to capture USA and Jelly Belly gaining their business — depends largely, of consumer conversations five years ago was Candy Company. course, on listening. Even when a customer akin to overhearing occasional snatches of isn’t yet sure what he or she wants, that very water-cooler conversation, it now seems that uncertainty can provide us insights that lead we have been transported into the middle of to new opportunities to meet that cus- cacophonous crowds in Times Square on tomer’s needs — and very possibly the same New Year’s Eve. or similar needs of the customer’s friends, And, frankly, the quality of the conver- family or colleagues. This is true whether sations varies as broadly as the range of top- we sell candy, computers or carpeting. ics, from the mundane to the philosophical, In just the last five years our ability to from politics to potato chips. We are, after ➤ The Manufacturing Confectioner • June 2011 37
  • 2. Social Media in the Confectionery Industry Social media offers all, just plain people before we’re con- retain loyal consumers in an intensely com- the confectionery sumers, but therein lies the payoff. We are petitive, impulse-driven category. industry an social animals, and most of us enjoy being “in the know,” sharing our opinions and THE CURRENT SOCIAL MEDIA unprecedented LANDSCAPEXXXXXXXXXXXXX opportunity to influencing others. How good is that new In 2008, Brian Solis, a highly regarded new- leverage the voice restaurant? Which 4G cell phone is the best? Is that new dark chocolate candy bar as media thought leader based in San Fran- of the customer in good as it looks? cisco, mapped the “universe” of social- developing and Like it or not, people — consumers, in media sites as a color wheel (Figure 1), delivering products commercial terms — are using social media with a spectrum that ranged from main- that can attract, to talk about our products and our brands. stream and niche social network sites engage and retain (Facebook, LinkedIn) to video and music This is human nature, but now vastly ampli- loyal consumers. sites (YouTube, Pandora) to blog and con- fied through a new-media universe that’s here to stay. Do we want to listen? Do we versation platforms (Blogger, Tumblr, Twit- want to learn? Do we want to converse ter). This map, which Solis entitled “The with people who clearly are engaged Conversation Prism,” also depicts dozens enough to share their raves, complaints, of other sites through which millions of suggestions and desires? Social media people share text-based and graphic con- offers the confectionery industry an tent of all types. Solis’s map is an insight- unprecedented opportunity to leverage the ful snapshot of a very young universe; some voice of the customer in developing and of the sites listed will disappear over time, delivering products — and an overall brand while others will grow and new ones arise. experience — that can attract, engage and Still, the point is that people have signed on to social media at an accelerating rate, even The Conversation Prism if it’s only to see (or share) photos of their grandchildren on Facebook. In fact, Americans have embraced sev- eral social network sites with fervor (with one exception: MySpace, one of the first mainstream sites, now in decline as newer sites grow dramatically). Figure 2 summa- rizes key attributes of the current main- stream social-media sites: The social-media landscape extends, of course, beyond network sites like these. The Ning platform or metasite (www.ning. com) comprises a virtual gated community of thousands of niche-interest groups rang- ing from accountants to rock-climbers to devotees of Renaissance music. The site invites visitors to create and run their own social networks under the Ning umbrella for a monthly fee. Figure 1 Flickr is perhaps the best-known photo- ➤ 38 June 2011 • The Manufacturing Confectioner
  • 3. Social Media in the Confectionery Industry sharing site, containing an estimated 4.5 bil- “spectators” contribute no content, but Approximately lion images uploaded by members into gal- read customer ratings and reviews, among 80,000 blogs are leries of all types. Approximately other activities; even at this lowest rung of launched each day, 80,000 blogs are launched each day, with participation, social media is influencing with the total now the total now numbering in excess of 110 purchase decisions on a scale far beyond numbering in excess million (although many have become dig- traditional word of mouth. The amplifica- of 110 million. ital flotsam, unattended by their authors). tion of influence was recognized by Tens of thousands of forums are main- Bernoff and Li when they added “conver- tained by people sharing interests in every- sationalists” to their model in 2010. These thing from car seats to carpentry. Fiskars is are participants who do not generally post one company that has revitalized its brand original content, but who actively foster of scissors by creating a forum dedicated to discussions on blogs, forums, opinion sites and administered by passionate scrapbook and the like. At the top of the social hobbyists (www.fiskateers.com). technographics ladder are the “critics” and Of course, not everyone participates “creators” who, as their labels imply, reg- equally. In late 2007, Josh Bernoff and ularly post product reviews and author Charlene Li of Forrester Research intro- blog entries, and upload photos, videos or duced a “social technographics ladder” to other content. (Of note is the fact that represent the range of activity (Figure 3). videos and annotated photos are now “Inactives,” unsurprisingly, do not partic- widely used for many product reviews.) ipate in social media, although they may Why have millions of people gotten so use the internet to shop, for email or for involved in social media? First is the core similar “Web 1.0” activities. One step up, fact that, as we’ve noted, human beings are Key Attributes of Current Mainstream Social Media Sites Facebook Users (2011): 525MM worldwide; 154MM in USA (double since 2009) Demographics: 18 – 24 yrs = 25%; 25 – 34 yrs = 25%; 35 – 44 yrs = 20% Site Character: “Friends & family” Notes: Average FB user is on the site 25 min per day; 71% of all U.S. internet users on FB Twitter Users (2011): 190MM worldwide; 90MM in USA (up from 12MM in 2009) Demographics: 45% of users >35 yrs (average user age = 39) Site Character: Real-time, experiential, eclectic: from the mundane to the profound Notes: Annual household income of users: 30%>$100k, 58% >$60k YouTube Views (2011): Two billion views per day worldwide (600MM in USA) Demographics: Global Site Character: Eclectic in content, multilingual, multicultural Notes: FB users in aggregate watch 46.2 years of YouTube videos per day; each auto-share tweet about a YouTube video spurs seven new YouTube user sessions LinkedIn Users (2011): 95MM worldwide; 45MM in USA Demographics: 64% male; average user age = 41 Site Character: Professional; networking and discussion forums Notes: Average annual household income of users: $110k MySpace Users (2011): 46MM (USA); down from 65MM in 2009 Demographics: 56% female; 44% are 18 – 34 yrs Site Character: Bands, high school students, 30-something moms Notes: Annual household income: 46% at <$60k Figure 2 ➤ The Manufacturing Confectioner • June 2011 39
  • 4. Social Media in the Confectionery Industry The simultaneous inherently social animals. We want to outfits: these all represent the role of development of a belong. Beyond our obvious survival needs, brands in our need for self-identity, self- consumerist culture we want to voice our thoughts, exchange expression and peer affinity. and mass ideas and learn from others. In fact, for many of us, these two emo- communications Second, the simultaneous development tional drivers have engendered a third, during the 20th of a consumerist culture and mass com- which we can call the brand/friend blur, century fostered munications during the 20th century fos- that is, the fact that we often rely on brands our tendency to tered our tendency to connect to brands for comfort, excitement or other emotional — to choose Ford over Chevy, for exam- boosts — much as we might expect from connect to brands ple — through our relationships with other friends. Coffee shops were coffee shops through our people. Describing the merits of the new until Starbucks came along, elevating the relationships with Lexus around the water cooler, debating emotional reward of consuming coffee to other people. who makes the best golf clubs with friends a level that engendered remarkable and at a barbecue or seeing platoons of teens at enduring brand loyalty. The coffeehouse the mall all wearing Abercrombie & Fitch chain remains a friend of sorts to count- less millions around the world. Fourth and last, online social media and The Social Technographics Ladder networks have immeasurably increased the opportunities each of us has to be a “brand champion,” that is, to recommend a product, a service or a brand to a far larger and widespread audience than our traditional circles of family, friends and colleagues. Of course, the same audience is available when we play the role of a “brand detractor”; either way, the point is that social media provides for many individuals a scope of influence unimaginable even 10 years ago. But that’s not all, as some TV ads pro- claim. Another wave of amplification is hitting us at this moment: the increasingly rapid diffusion of mobile technology in the form of smartphones (Figure 4). The inter- net marketing-research company com- Score reports than one in four cell phone owners in the United States now uses a smartphone, a clear indication that we’re increasingly online while on the move. In fact, comScore research confirms that nearly 40 percent of smartphone owners are using internet browser functions to access news and information online, and Figure 3 nearly 25 percent regularly use their smart- ➤ 40 June 2011 • The Manufacturing Confectioner
  • 5. Social Media in the Confectionery Industry phones to access social network sites. This Consider a broader issue such as the crit- The likely fact is means that the conversations that take icisms expressed by some health advocates that consumers are place across the internet have even greater and consumers over the use of high-fruc- already talking reach as people participate from smart- tose corn syrup in food and beverage prod- about your brand phones and other mobile devices. ucts, including, of course, confectionery. or your business. Your company may have received no You can remain IMPLICATIONS AND OPPORTUNITIES inquiries or complaints so far, but the man- silent while the FOR CONFECTIONERY R&D/ PRODUCTIONNXXXXXXXXXXXXXXXXX ner in which social media disseminates and conversation perpetuates discussion — with, arguably, a continues, or you Sociology and changes in the media land- disproportionate representation of extreme can present your scape are well and good, but what do they matter for confectionery-industry profes- opinion — may at some point draw your own point of view. sionals working in product development or business into the fray. Why do you use high- production? The answer lies not only in how fructose corn syrup in your products? Why social media amplifies, but how it also accel- don’t you label it more clearly on your erates conversation among consumers, and packaging? When do you plan to stop using between consumers and businesses. Con- it? The risk to your company’s reputation sider the consumer who feels she received and to its brand image may be substantial. an unhelpful response from your customer Senior corporate managers may right- service department to her question about fully object to the possibility of unjustified a possible allergen in your product. In the attacks or ill-informed accusations from recent past she may have told a handful of vocal activists online. Marketing managers others about her dissatisfaction. Today, she may fear that they will “lose control of has the option of using her blog or a social their brand” if they venture into the social- network to share her discontent (or worse) media realm. But if you are one of those with hundreds or thousands of others managers, the likely fact is that consumers instantly, some of whom will likely share or are already talking about your brand or echo her message with others in their own your business. You can remain silent while networks. This ripple effect can be aston- the conversation continues, or you can ishingly fast; and while it may dissipate just present your own point of view. When as quickly, it may also gain force as it mom-bloggers were offended by an online spreads, provoking attention from reporters ad campaign for Motrin in September 2008, in mainstream media. they unleashed their anger quickly and vociferously on their blogs and through Social Media Amplification Twitter. McNeil Consumer Healthcare, the maker of Motrin, was further criticized for being slow and insincere in its apology. Once the apology was made, however, some mom bloggers called upon others to let the issue go, showing that a sense of fairness can prevail in social media, just as in offline communities. Returning to a positive scenario, con- sumers may be delighted with your new Figure 4 tea-infused chocolate truffles. You may dis- ➤ The Manufacturing Confectioner • June 2011 41
  • 6. Social Media in the Confectionery Industry Social media cover that several prominent bloggers are bucks Idea, an online social community provides the R&D generating many positive comments in the coffeehouse chain launched in the or production response to their posts about your prod- spring of 2008. The premise was straight- professional the uct. In fact, someone has set up a Face- forward, as Starbucks told visitors to the opportunity to book page where nearly a thousand fans site, “You know better than anyone else access the voice are already sharing their ideas for new fla- what you want from Starbucks. So tell us.” of the consumer vors; seaweed-infused truffles are winning A recent check of the site showed that almost immediately, at the moment. more than 44,000 ideas have been submit- in real time and Of course, several aspects of these sce- ted for food and beverage items, including with little effort. narios — package design or new-flavor flavors, blends and formulations. This fig- requests, for example — traditionally fall ure does not include another 21,000 ideas within marketing or customer service. Here for merchandise other than food and bev- again, though, the rules are changing. Social erages. It also does not include thousands media not only amplifies and accelerates, of suggestions related to the customer it provides even the r & d or production experience inside Starbucks locations. professional ensconced in the most remote While Starbucks has the advantages of a laboratory or office the opportunity to global brand and thousands of its own access the voice of the consumer almost storefronts, it achieved that status only by immediately, in real time and with little listening to its customers. The advent of effort. Whether that professional scans social media has given the company even social media to stay ahead of potential more opportunities to deepen the engage- problems or to stay current with her col- ment and loyalty of its fans. leagues in marketing, customer service or sales, online conversations offer a tremen- IMPLICATIONS FOR CONSUMER- dous wealth of information and insights. DRIVEN BRAND ENGAGEMENTX In 2010, the semiconductor manufacturer If consumers increasingly regard their Intel decided to ask consumers for new favorite brands as a part of their self-iden- product ideas. The company launched a tity, as a platform for peer affinity and even Facebook page through which consumers as vehicles for self-expression, social media could submit their own ideas or comment clearly offer new ways to project those on those submitted by others. The winner emotional elements. Yes, that may be true of this promotion would be named vice pres- for cars or clothing, one might say, but isn’t ident of r&d for a day, with the chance to it far-fetched to ascribe the same dynamics work with Intel engineers at the company’s to a roll of mints or a bag of candy corn? product-development center. Other prizes Most marketers would agree that this is included notebook computers and software. not far-fetched, since the physical product, The results of the 10-week event were as important as it is, constitutes only the remarkable: 53,000 participants who gen- starting point for creating a brand experi- erated 5,000 unique ideas; 200,000 views ence that, if positive, can grow and deepen of those ideas; 8,000 comments and 110,000 over time. When the consumer’s emotional ratings; and a total of 420,000 engagements attachment is validated by positive reac- between consumers and the Intel brand. tions from others in his network, his Perhaps more relevant to food-industry engagement with the brand deepens, rais- professionals is the example of My Star- ing the odds that he will continue to pur- ➤ 42 June 2011 • The Manufacturing Confectioner
  • 7. Social Media in the Confectionery Industry chase the product. While the relevance of snacks a new way to share their enthusiasm Consumers use product categories varies for each con- for the brand. Without a large marketing social media to sumer depending on his or her needs and budget, the company chose Facebook as its amplify their desires, confectionery has the advantage platform to launch a series of monthly con- engagement. Their of being a fun, low-cost category from a tests and sweepstakes, each centered on posts accelerate consumer standpoint. sharing and rating consumer-generated con- imitation and The low-cost, low-risk attributes of con- tent, ranging from fan videos to flavor ideas. engagement by fectionery make it an easy product to talk Visitors to the Tornados Facebook page others. Marketers about. Trial based on someone’s recom- could download coupons, and win points can access these mendation is usually simple and inexpen- redeemable for Tornados-branded mer- engagements more sive, and in the “flat world” of social media, chandise — and even a family trip to a easily and broadly nothing more is required to post an opinion Nascar race at Daytona — by commenting than ever before. or review. (In fact, even product trial is on other visitors’ content. When the Face- optional, if one chooses to dismiss an item book page reached 100,000 fans, Ruiz Foods as too weird, unhealthy or otherwise unde- committed to providing 100,000 free boxes sirable.) In broader social terms, confec- of Tornados through downloadable buy- tionery is an easy conversation starter. Just one, get-one e-coupons. By the end of the like wandering into a neighborhood party, campaign, the company had gained more the first-time visitor to Twitter or another than two million brand engagements with social network site uses the topic to break consumers online and well over 150,000 the ice, project some personality, establish new Facebook fans. And by any measure, rapport and create new acquaintances. If I Ruiz Foods was successful in boosting the like salted licorice and you like sweet, we Tornados brand by using social media in share a starting point from which to explore. combination with tried-and-true promo- But if I like Darrell Lea licorice and you tional activities to create new fans and prefer Panda, then we move from category strengthen consumer brand loyalty. to brands, adding another dimension to By now, millions of pieces of consumer- the conversation. Confectionery is inher- generated content about brands (including ently fun, at the same time evoking child- confectionery) have been shared on blogs, hood memories and other pleasant asso- Facebook and Twitter, and through videos ciations. But we can talk only so long about and photos uploaded to YouTube, Flickr and a product type or category in general. similar sites. Consumers use social media to Brands, as we have noted, provide a spring- amplify their engagement. Their posts accel- board to do more, to project our individual erate imitation and engagement by others, personalities. Brands often serve as a and marketers can access these engage- means of self-expression. This is evident ments, however large or small, more easily in consumer actions that range from the and broadly than ever before. simple — for example, the habitual use of a tagline from a TV ad — to the elaborate, LEVERAGING SOCIAL MEDIA FROM as when friends gather to drop chewy mints CONCEPT TO CASH REGISTERXXXXX into bottles of soda, releasing foamy gey- How do we turn brand engagement sers and provoking boisterous amusement. through social media into sales that help In the summer of 2009 Ruiz Foods our businesses grow? This can be done in decided to give fans of their Tornados hot numerous ways through each step of the ➤ The Manufacturing Confectioner • June 2011 43
  • 8. Social Media in the Confectionery Industry Companies that process from product concept to cash reg- • LinkedIn Groups to track conversations integrate social ister, and can be tailored to the goals and on technical issues, particularly in inter- resources of any manufacturer. national contexts. media into their Corazonas Foods, a manufacturer of Marketing culture and • Facebook to engage consumers in con- operations will snack foods based in Los Angeles, is a good versation about your brands and products. strengthen example. Driven by the death of her father • Twitter and Facebook to promote and alignment of their from heart disease, ceo Ramona Cappello report in real time on sponsored events, business and started the company in 2005 with the goal roadshows, in-store demos. of creating tortilla chips and other snacks • Flickr to share event photos, or to invite brand strategies. that both taste good and can actually lower consumers to post their own photos cholesterol. The company’s products con- related to their experience of your tain plant sterols that have been clinically brands or products. • YouTube to share event or roadshow shown to provide this benefit, and prod- video, or to invite consumer-generated uct packaging includes the FDA-approved content related to a contest or promotion. health claim. • Google Analytics to understand visitor Corazonas Foods is another company traffic to and on your brand or company that has chosen Facebook as their key website, and to integrate website and social media platform through which to social-media consumer/brand touch- create and retain fans and customers. Much points more effectively. • Mobile applications to deliver incentives like Ruiz Foods, Corazonas offers coupons and personalized content to opt in con- through the social network site, but also sumers (may be triggered by shopper goes further with a direct “Prove It” chal- scans of quick response codes at point lenge. A visitor can register her name and of sale). email, and then have her cholesterol tested Sales/trade support before and after eating Corazonas snacks • LinkedIn Company or Group page(s) over a four-week period. If her cholesterol for distribution of value-add informa- doesn’t drop, the visitor will receive a tion to channel partners or retail trade customers. refund. The company extends the brand • Twitter for real-time updates on in-store experience, including social-media ele- demos or other promotional events. ments, all the way to the point of purchase, Customer service/consumer affairs where shoppers can receive cholesterol • Addictomatic or similar low-cost tools screenings near Corazonas displays and to scan consumer sentiment or response in-store sampling. The company uses Twit- to specific events. ter to announce screening schedules and • Twitter or Facebook to engage consumers, itineraries for interested consumers. facilitate resolution of complaints, proj- In general terms, then, manufacturers ect responsive image for the company. can leverage social media and digital tools INTEGRATION INTO BUSINESS in a number of ways to differentiate and STRATEGIESXXXXXXXXXXXXXX strengthen their brands: By its nature, social media is open and Product concepts/product innovation accessible. Conversation and collaboration • Google Alerts and similar tools to scan replace the one-way “push” communica- blogs and forums for trend-focused con- tions of traditional advertising and Web 1.0 versations on analogous categories such as flavored beverages, baked goods or corporate websites. Social media therefore cross-cultural fusion foods. challenges companies to attain higher lev- ➤ 44 June 2011 • The Manufacturing Confectioner
  • 9. Social Media in the Confectionery Industry els of collaboration across corporate func- brand loyalty that drives sales and to The fundamental tions in order to compete more effectively. improve operations while reducing inter- goal is to tap social In fact, companies that integrate social nal functional silos. For that reason, social- media as a new media into their culture and operations media team members should never be iso- tool to gain will strengthen alignment of their business lated in a separate “department” of customer insights, and brand strategies, in turn strengthen- whatever sort, called upon only when a to innovate, to ing brand equity and brand loyalty among manager wants a “funny viral video.” build brand loyalty consumers. that drives sales Like other c p g (consumer packaged RETURN-ON-INVESTMENT CONSIDERATIONSXXXXXX and to improve goods) companies, confectionery manu- operations while That’s all great, one may ask, but what’s facturers can integrate social media into reducing internal the bottom line? What’s the r o i (return their operations in various ways, depend- functional silos. on investment) of social media for a candy ing on business goals, resources and inter- company? In these early days of this new nal culture. Nonetheless, the foundation must be a firm and sustained commitment media landscape, there is no single, simple by senior management to leverage social answer. The good news is that tools of media in order to do the following: measurement abound; the big questions • Engage consumers openly and authen- are what to measure, and why. tically about the company’s products Some successful business people see and brands. social media as an investment in learning • Recognize and reward fans of the com- more about customers through dialogue, pany’s brands. or as a way to anticipate and leverage • Optimize opportunities to support trends sooner and more effectively. What and/or promote retail trade customers. is the r o i on equipping your sales force • Inform those interested about the com- pany’s community-focused programs or with cell phones? What was the point of events. creating a company website 10 years ago? • Represent the industry of which the In fact, as more companies begin to use company is part. social media, what may have provided a With appropriate support, senior man- competitive edge two years ago is fast agement in each functional area should becoming table stakes. But as we know, evaluate and propose ways to leverage ultimately there is a cost and, therefore, a social media, and toward what objectives. net value to any business activity. “Appropriate support” in planning, imple- The debate over the roi of social media mentation and periodic measurement can reflects the tension between opportunity take the form of a nimble cross-functional and risk in a new marketing landscape. But team trained in social-media practices. (For it has been intensified by attempts (often those wondering why this would matter to by social-media proponents) to apply accounting or hr managers, it’s worth not- financial terminology to nonfinancial meas- ing that professionals in those fields are ures: the number of hits on a company generally very active on social network microsite, the number of fans on a Face- sites such as LinkedIn and Ning.) book brand page, the number of views of Keep in mind that the fundamental goal a company’s YouTube video and the like. is to tap social media as a new tool to gain These can be meaningful indicators, but customer insights, to innovate, to build they clearly are not financial measures. ➤ The Manufacturing Confectioner • June 2011 45
  • 10. Social Media in the Confectionery Industry The millions of At this point the value of the sales-fun- with brands and with the companies that conversations on nel model comes to mind. Can we evaluate produce those brands. The one-way “push” social media can and select social-media-related indicators of traditional advertising is now joined by teach us new ways that might lead toward conversion? Can conversations moving in all directions. In to learn more we connect one consumer/brand touch- this rapidly changing landscape, marketers about what matters point to another, and track the progression fear “losing control” of their brands and to our customers, to quantifiable sales points? For example, ceos wonder whether social media can including how they can we launch interactive digital ads that really help business. lead viewers to our microsite, where they But if nothing else, we have learned that influence each would receive an incentive to share with the millions of conversations on social other, and why they friends via Twitter or Facebook, ultimately media can teach us new ways to learn more choose to purchase driving new sales at nearby retailers? about what matters to our customers, our products. As mobile applications multiply, 4G cell including how they influence each other, phones with geo-location become com- and why they choose to purchase — or monplace, and quick response (q r) codes bypass — our products. We can explore the provide manufacturers with new ways to new social-media landscape one step at a incentivize consumers all the way to the time, learning as we go, if we’re commit- retail aisle, a social-media-driven sales fun- ted in that effort. This includes the clear nel becomes increasingly feasible. We have understanding that fans on Facebook don’t discussed the rapid diffusion of smartphones, equal register rings, but that more fans can which enables increasing numbers of con- mean more sales, more often if we set the sumers, while standing before product dis- right goals and measures. plays in a store aisle, to interact with the People are talking about our brands; that companies that make those products. We is a simple reality. The question is whether also have discussed the opportunity to use we believe we can grow our businesses by social-media platforms in combination with ignoring or by engaging in those conver- each other and with traditional marketing sations. As new as social media still is, smart tactics. In the case of Corazonas Foods and companies already know the answer. n its cholesterol-lowering snack products, this approach has enabled them to increase their REFERENCES share of acv (all commodity volume) up to Bernoff, Josh. Empowered. Forrester Blogs. Jan- uary 2010. Web: http://forrester.typepad. 40 percent in key markets, a remarkable com/groundswell/2010/01/conversationalists- achievement for a small company in an get-onto-the-ladder.html intensely competitive category. Bernoff, Josh, Charlene Li. Social Techno- But in all cases, and regardless of tactics graphics Ladder. Forrester Research, 2010. or technology, the essential nature of social Solis, Brian. The Conversation Prism v2.0. media remains paramount, in the form of @BrianSolis blog. March 30, 2009. Web: h t t p : / / w w w. b r i a n s o l i s. c o m / 2 0 0 9 / 0 3 / a willing partnership and ongoing dialogue conversation-prism-v20/ of the consumer with the brand marketer. CONCLUSION The advent and spread of social media in hardly more than five years has trans- formed the relationship consumers have Presented at the PMCA Production Conference 46 June 2011 • The Manufacturing Confectioner