On-Trend' Innovation & Marketing Concepts: The Sensory Mega-Trend

Overview

Catalyst

Summary

Table of Contents

Table of figures

Analysis

INTRODUCTION: Using trend frameworks develops the means to boost the quality and frequency of insight generation and new product planning

There is a funnel approach to identifying the manifestation of trends

TREND: Innovation is a major driver of growth but is a challenging process

A number of internal problems can lead to ineffective approaches to innovation

Four different types of innovation strategy exist

One of the major hurdles to successful innovation appears to be capturing consumers' imagination

TREND: New sensual products and concepts are emerging as consumers seek more pleasure, intensity and sensation from consumption

TREND: Enjoyment driven consumers are becoming more experimental which makes an emotional connection all the more important

INSIGHT: Manufacturers must capitalize on the desire to experiment by arousing curiosity

DATAMONITOR VERDICT: Manufacturers must actively tempt today's inquisitive consumers

INSIGHT: Manufacturers are creating additional sensual appeal by manipulating the key sensory attributes of products

DATAMONITOR VERDICT: Intensifying product sensory appeal must be an important innovation objective

INSIGHT: 'Scent-sory Marketing' reflects how industry players are using scent in a creative and innovative manner to engage shoppers

DATAMONITOR VERDICT: Marketers are beginning to realize that scent is extremely powerful in shaping perceptions and forging an emotional connection with consumers

INSIGHT: 'Sonic Branding' is another emerging discipline in the broader discipline of 'sensory marketing'

DATAMONITOR VERDICT: A branded audio identity can help differentiate brands in crowded marketplaces

INSIGHT: 'Sensory Packaging' is a powerful tool for evoking consumer desire

DATAMONITOR VERDICT: Any packaging concept that enhances the sensory properties of products has the potential to be a key differentiator and is thus highly valued by shoppers

INSIGHT: 'Erotic branding' and 'shock advertisements' are marketing concepts being used to bring brands into consumers' consciousness

DATAMONITOR VERDICT: Marketers should approach evocative, shock based marketing with caution

INSIGHT: Offering 'brand experiences' has become an important branding imperative in the 'experience economy'

DATAMONITOR VERDICT: 'Experiential Marketing' and 'Experiential Retailing' will grow in relevance and popularity because it provides a foundation for brand interaction, product trial and brand engagement

INSIGHT: Multi-sensory marketing brings together many of the above sensory platforms into one compelling selling proposition

DATAMONITOR VERDICT: Multi-sensory branding can help to establish an emotional connection with shoppers

TREND: The trend towards authenticity and provenance is beginning to impact mass market products

INSIGHT: Origin specific and traceable goods have added appeal to today's discerning shoppers

DATAMONITOR VERDICT: Being more open and transparent will become a key feature of marketing communications in the future, especially with more brands using provenance as a point of differentiation

INSIGHT: The growing importance of authenticity and provenance means that touting brand heritage becomes increasingly important

DATAMONITOR VERDICT: Terms like 'heritage', 'authenticity' and 'personality' can be seen as the building-blocks of an aspirational brand image

TREND: More affluent and expectant consumers are trading up more frequently

INSIGHT: Manufacturers must re-align products to reflect changing perceptions of what is considered to be 'premium' or 'luxury'

DATAMONITOR VERDICT: Being a mid-market brand is a dangerous place to be

INSIGHT: Premium is still a high price related to extraordinary factors perceived and experienced by consumers

APPENDIX

Definitions

Methodology

Further reading and references

Ask the analyst

Datamonitor consulting

Disclaimer

List of Figures

Figure 1: Datamonitor's mega-trends are having a long-term and substantive impact on the marketing landscape and can be grouped into two categories

Figure 2: Consumer behavior and the innovations targeting it inevitably fit into a 'trend hierarchy'

Figure 3: There are four different approaches to innovation and six kinds of innovativeness rating

Figure 4: Attitudes towards innovation vary markedly and influence the inability of new products to capture the imagination of CPG shoppers

Figure 5: There are numerous factors influencing sensory trends in consumer packaged goods

Figure 6: The sensory mega-trend reflects consumers' desire for experiential pleasure, intensity and sensation from products

Figure 7: People are looking for new consumption experiences so industry players must carefully consider how to arouse consumer curiosity and induce product trial

Figure 8: Marketing communications and actual product features can be manipulated to maximize the visual dynamics and sensory appeal of brands

Figure 9: Beer manufacturers are actively targeting more adventurous palates with fruity beers

Figure 10: Food and beverage marketers are delivering additional sensory excitement with new textures, bolder flavors, flavor blending and co-branding with iconic branded flavors/ingredients

Figure 11: Manufacturers are looking to reinforce the sensual credentials of products though engaging brand names and written communications while Guinness typifies efforts being made to help consumers replicate 'third-place experiences' and quality within the comfort of their own homes

Figure 12: Opportunities exist to use scent in a more creative and engaging manner

Figure 13: A variety of brands have been using brands in different ways to create a 'sonic' identify

Figure 14: Easily confusable, active packaging and intelligent packaging are actually two distinct concepts

Figure 15: There are a number of new smart packaging/label innovations entering the market

Figure 16: Packaging materials can be manipulated to enhance the sensory experience for consumers

Figure 17: Brands are using edgier, erotic and shock tactics to get noticed in an increasingly cluttered marketplace

Figure 18: Experiential 'third-places' are becoming an established part of experiential marketing campaigns

Figure 19: Experiential marketing exists on different levels

Figure 20: The search for authenticity reflects consumers' active pursuit for higher quality experiences from consumption

Figure 21: Health and provenance conscious consumers want to know about the products they ingest or topically apply so manufacturers are making greater efforts to be transparent

Figure 22: Provenance/locality and production details are issues that increasingly matter to shoppers

Figure 23: Iconic imagery can add an authentic aura to a marketing communication

Figure 24: Touting brand heritage becomes increasingly important in light of the growing importance consumers attach to growing importance of authenticity and provenance

Figure 25: Using 'ordinary' people in marketing looks set to become a more established feature of marketing campaigns

Figure 26: Firms in the middle need to move either up or down-market or face death in the middle

Figure 27: Mass market brands are having to premiumize just to stay relevant

Figure 28: While many brands should be looking to premiumization opportunities, PJ smoothies is an example of how industry players must be prepared to re-align products towards the lower end of the market as well

Figure 29: Manufacturers must excel - more than competitors - in the provision of factors associated with the Premium Price Index (PPI)