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Natural Products Marketing Benchmark Report 2015

Natural Products Marketing Benchmark Report 2015

The SPINS & Pure Branding Natural Products Marketing Benchmark Report 2015 is the only benchmark report for natural products marketers. Leverage proven best practices and industry standards to develop annual budgets, successful marketing plans and effective campaigns. Determine which marketing tactics are most effective for your company from the data-driven insights of 301 marketing decision makers from small, medium and large natural products companies.

From the information of this 196-page report you can:
● Develop effective campaigns based on the experiences of hundreds of marketers facing similar challenges
● Support your annual budget rationale with real numbers based on industry standards
● Write a more successful marketing plan informed by best practices for a company of your size in your category


What’s Inside
● 196 pages and 143 charts
● 3 Special Reports:
○ 8 Predictors of Rapid-Growth Natural Companies
○ Social Media Success for Natural Products Marketers
○ Natural,’ GMOs, Local & The North American Food System
● Retailer insights from primarily independent retailers
● Specific insights that pertain to large, medium and small companies

You’ll Learn:
● How companies overcome their marketing challenges
● How the industry values market research
● What makes rapid growth companies different from others
● How the industry feels about regulating the word “Natural,” GMOs, local food movement and the North American food system
● What the channels are with best growth opportunities
● The top marketing tactics, both in terms of use and ROI
● The percentage of marketing budget in relation to revenue
● What makes some companies more successful in social media
● What makes packaging redesign successful
● What influences the rise or fall of marketing budgets

Introduction
Executive summary
Key Findings
Chapter 1: Profile of natural products marketers
Company size
Figure 1-1 Gross revenue in 2013
Figure 1-2 Number of employees
Figure 1-3 Percent of small, medium and large businesses
Figure 1-4 Small, medium and large businesses in natural products: market share and growth (source: SPINS)
Company category]
Figure 1-5 Company category
Figure 1-6 Natural products dollar sales in 2014 by department, excluding alcohol (source: SPINS)
Who makes the marketing decisions?
Figure 1-7 Job title
Figure 1-8 Size of marketing department
Figure 1-9 Are employees aware of your company’s principles?
Figure 1-10 Are your company’s core values articulated to customers?
Figure 1-11 Are customers aware of your company’s core principles?
Chapter 2: Channels
Figure 2-1 Channels where your company first gained market penetration
Figure 2-2a Total US sales for 7/2012–6/2013 over 7/2013–6/2014 in natural products in billions of dollars for selected channels (source: SPINS)
Figure 2-2b Total US sales for 7/2012–6/2013 over 7/2013–6/2014 in 100% organic content in millions of dollars for selected channels (source: SPINS)
Figure 2-3 Channels that represent the greatest opportunity for sales
Category sales in the three main channels=
Figure 2-4 Percent change of US dollar sales for 7/2012–6/2013 over 7/2013–6/2014 of natural departments in the natural channel, specialty channel and multi outlet channel (source: SPINS)=
Chapter 3: Challenges
Identifying challenges
Figure 3-1 Greatest external challenges faced in marketing natural or organic products
Figure 3-2 Greatest internal challenges faced in marketing natural or organic products
Figure 3-3 How companies are utilizing external resources to overcome these challenges Figure 3-4 What approaches companies find most effective for increasing the value of marketing in their company
Chapter 4: Special report — “Natural,” GMOs, local & North American food system
Definition of “natural”
Figure 4-1 Should the term “natural” be regulated?
“Natural” versus GMO
Figure 4-2 Are genetically engineered fruits and vegetables (like genetically engineered corn or soy) natural?
Figure 4-3 Is meat like hamburger that comes from cattle fed with genetically engineered grains natural?
Figure 4-4 Are nutritional supplements that contain some genetically modified ingredients natural?
GMO labeling and Whole Foods Market
Figure 4-5 What do you think about Whole Foods Market’s decision to require GMO labeling in its stores?
Buy- and grow-local movement
Figure 4-6 The impact the buy- and grow-local movement in North America has had on marketing efforts
North American food system
Figure 4-7 How do companies describe the North American food system?
Figure 4-8 What concerns companies about the North American food system
Figure 4-9 What has your company done because of what it thinks about the North American food system?
The “local” paradox
Impact that certification and classification has on sales
Figure 4-10 Percent dollar growth for products currently with the certification or PR claim (source: SPINS)
Chapter 5: Marketing measurements and research
Figure 5-1 The importance of ROI on determining marketing budget allocation and marketing tactics
Figure 5-2 Methods for tracking ROI
Market research
Figure 5-3 Types of market research used in last 24 months
Figure 5-4 How companies use research reports
Figure 5-5 Shortcomings of marketing research reports
Figure 5-6 Do companies have a method for quantifying brand awareness?
Driving natural and organic growth
Figure 5-7 What is driving natural and organic growth in the natural channel?
Figure 5-8 What is driving natural and organic growth in the specialty gourmet channel?
Figure 5-9 What is driving natural and organic growth in the conventional food channel?
Chapter 6: Marketing budgets
Figure 6-1 Annual marketing budget (excluding trade spend, staff and overhead)
Change in marketing budget
Figure 6-2 Year over year change in marketing budgets 2012–2013
Figure 6-3 Year over year change in marketing budgets 2013–2014
Figure 6-4 Factors affecting future budgets
Figure 6-5 Annual trade marketing budget
Figure 6-6 Measuring ROI for trade marketing spend
Figure 6-7 Marketing budget as percent of revenue, by company size
Chapter 7: Special report — Rapid-growth companies
Finding #1 – Rapid growth happens to all companies, regardless of size
Finding #2 – Product differentiation pays off
Finding #3 – Limited marketing experience can hamper growth
Finding #4 – Going to seminars and conferences translates into good ROI
Finding #5 – Marketing budgets matter
Finding #6 – The better the data, the more rapid the growth
Finding #7 – Embrace online digital and mobile marketing
Finding #8 – Keeping your employees connected to company values has its benefits
Chapter 8: Marketing tactics
Figure 8-1 Traditional marketing tactics used in last 12 months
Figure 8-2 Estimated ROI for traditional marketing tactics
Figure 8-3 Online marketing tactics used in last 12 months
Figure 8-4 Estimated ROI for online marketing tactics
Top Ten Tactics
Figure 8-5 Top ten marketing tactics (combined traditional and online) used in last 12 months
Figure 8-6 Top ten marketing tactics (combined traditional and online) in ROI in last 12 months
Tactic profiles
Traditional Marketing Tactics
Percent discounts
Demo: Live
Advertising: Circulars/In-store
Content: Sales collateral
Coupons
Co-op advertising
Consumer advertising: Print
Event marketing
Promotion tied to charity or organization (local or national)
BOGO (buy one, get one free)
Point-of-purchase/Shelf-talkers
Press relations
Shipper displays
Demo: Passive
Market research
Sponsorships
Content: Video
Educational: In-person training
Manufacturer-purchased shelf/display space
Consumer advertising: Advertorial
Direct marketing: Mail
Loyalty programs
Personalized database-driven marketing
Buzz marketing
Consumer advertising: Radio
Sweepstakes
Direct marketing: Telemarketing
Frequent shopper programs
Consumer advertising: Television
Online marketing tactics
Website
Facebook
Email newsletters
Online contests, coupons and giveaways
Twitter
Search engine optimization (SEO)
Blogging
Banner advertising
Direct marketing by email
Pinterest
YouTube or other online videos
Search engine marketing: Pay-per-click
Mobile phone apps
LinkedIn
Educational: Online training
Webinars
Google+
Content: User-generated
Lead nurturing
Chapter 9: Top marketing tactics used by retailers
Figure 9-1 Retailer use of traditional marketing tactics
Figure 9-2 Retailer use of online marketing tactics
Figure 9-3 Tactics most effective in increasing sales
Figure 9-4 Tactics most effective in driving sales inquiries
Figure 9-5 Tactics most effective in increasing consumer loyalty
Chapter 10: Social media
Facebook
Figure 10-1 Approximate number of Facebook fans/Likes
Figure 10-2 Approximate frequency of posting on Facebook
Figure 10-3 What companies use Facebook for
Twitter
Figure 10-4 Approximate number of Twitter followers
Figure 10-5 Approximate frequency of tweeting on Twitter
Figure 10-6 What companies use Twitter for
Google+
Figure 10-7 Approximate number of Google+ followers
Figure 10-8 Approximate frequency of posting on Google+
Figure 10-9 What companies use Google+ for
Pinterest
Figure 10-10 Approximate number of Pinterest followers
Figure 10-11 Approximate frequency of pinning on Pinterest
Figure 10-12 What companies use Pinterest for
Chapter 11: Special report — Four findings for social media success
How we determined success
Finding #1 – Companies succeeding in social media tend to value research more
Finding #2 – Companies succeeding in social media are far more involved in online marketing
Finding #3 – Companies succeeding in social media practice the art of engagement
Finding # 4 – Companies succeeding in social media commit more of their budget to marketing
Figure 11-1 All size companies
Figure 11-2 Small companies (<$1 million)
Figure 11-3 Medium companies ($1 million to $15 million)
Figure 11-4 Large companies (>$15 million)
Chapter 12: Branding and packaging
Figure 12-1 Most recent packaging redesign
Figure 12-2 Percent of budget allocated to packaging design
Figure 12-3 Type of packaging redesign
Figure 12-4 Was the packaging redesign part of a broader rebranding effort?
Figure 12-5 Redesign outcomes after placement over time
Figure 12-6 Redesign outcomes after placement over time when part of a broader rebranding effort
Chapter 13: New product introduction
Figure 13-1 Quantity of new product launches in the past 24 months
Figure 13-2 Percent of budget allocated for new product launches in the past 24 months
Chapter 14: In-house versus outsource
Size of marketing departments
Figure 14-1 Size of marketing department
Figure 14-2 Marketing services outsourced
Marketing services outsourced
Chapter 15: Trade show involvement
Figure 15-1 Trade shows exhibited in the prior 12 months
Figure 15-2 Reason for exhibition
Figure 15-3 Trade shows attended by retailers in the prior 12 months
Figure 15-4 Retailers’ reason for exhibition
Chapter 16: Words of wisdom from companies and retailers
Financial advice
Strategic advice
Tactical advice
About the Authors

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