*image from: http://www.businessinsider.com/taco-bell-and-pizza-hut-are-getting-rid-of-artificial-ingredients-2015-5
Now Reading | The Science of Selling Pizza from Ogilvydo.com
Food brands are tricky. We’ve experienced the challenges firsthand as we’ve worked with many food products in the CPG space as an agency team over the last two decades. So when I saw this article from the CEO of Pizza Hut Hong Kong posted on the Ogilvy blog today, it got my attention. The landscape for food brands has changed dramatically over the last ten years, particularly in the area of consumer behavior.
Changes in consumer behavior, which in turn are driven by advances in technology, are the primary propelling force behind change in Leong’s business. Expectations are up and patience is down thanks to an on-demand culture, and Leong cites apps as a prime space where brands can cater to this hunger for convenience and create all kinds of value-add, from being able to share loyalty points with your friends to using an express lane instead of queuing. “Hong Kong is a very demanding market,” he explains. “They want to see new things every two months.” Which doesn’t sound too bad, until he goes on to add that it takes 18 months to develop new concepts, and every product has the potential to go horribly wrong — what worked in Taiwan or Dallas might tank in Hong Kong.
He goes on to share this insight:
The pressure is intense; he has found first-hand in the past that if you launch the wrong product, sales can plummet. Which is why he holds “ideation sessions,” where he invites chefs and agencies from all over the world to bounce around ideas (during which he will eat at least 50 pizzas).
“Food is all about detail and understanding trends,” Leong says. But don’t be too trendy, he warns; marketing to millennials is one thing, but brands need to take a long look in the mirror first and remind themselves who they are; “You can’t try overnight to be something you’re not.” In his experience, doing a 180 on your brand identity does nothing for driving sales or building repeat business.
What is his advice?
Leong urges food brands to resist the urge to be reactive when faced with disappointing sales. “We understand it’s about building business, and when business is tough, you will try a lot of knee-jerk actions to build traction.” But constant offers, promotions and discounts aren’t a lasting solution, and can actually devalue brand perceptions.
So much truth. To read the entire article, click here: http://www.ogilvydo.com/events/top-1000-brands/the-science-of-selling-pizza/
