Building An FMCG Social Brand 2012

BUILDING AN FMCG SOCIAL BRAND
What you need to know as you plan for 2013/14
20 case studies
14 vital questions to ASK your business
39 FMCG brands benchmarked
21 trends identified
By Steve Sponder – Head of Agency | Headstream
and Tom Chapman – Business Development Director | Headstream
www . h e ads t r e am . com | F E B R U A R Y 2 0 1 3

contents
Executive Summary
FMCG sector background
FMCG sector – Social Brands 100 insights
FMCG sector – Current challenges and case studies
FMCG sector – Future of social media
Conclusion and getting started
How can Headstream help?
Sources
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5
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31
C on t e n t s
www . h e ads t r e am . com
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1 • Executive Summary
This white paper has been created by Headstream to assist FMCG sector
marketers as they plan their strategies and budgets for 2013/14. It provides
timely information, case studies, insights, trend predictions, and practical
advice to assist FMCG brands as they consider how social media can support
their business goals.
The paper has five main sections:
• an overview of the broader backdrop within the FMCG sector,
• what we can learn about the current social media performance of FMCG
brands from Headstream’s 2012 Social Brands 100 ranking,
• current consumer behaviour and case studies illustrating how FMCG brands
are responding to the challenges and opportunities presented by social media,
• five future trends that the FMCG sector should be aware of and planning
for, and
• conclusions and how to ‘Get Started’ with the planning process.
Look out for our ‘Key Questions’ sections throughout. These summarise
the questions marketing teams should pose as they integrate social into
their strategy, and how Headstream can help.
The summary below identifies the key findings and insights from
the white paper.
• FMCG businesses have emerged relatively well from the global downturn
particularly those brands that have long-term heritage
• The adoption of consumer technology is a significant trend that will
fundamentally change the relationship between FMCG brands and
consumers
• Consumers globally are increasingly turning to the Internet, and peer-to-
peer recommendation on social networks, to inform purchase decisions
• FMCG brands should look to increase the rate of conversation with
followers on Twitter, and to encourage fans to co-create content with them
on Facebook
• The customer journey has moved on from the traditional, linear ‘funnel
model’, to a more complex ‘customer decision journey’ where consumers
are influenced by multiple touch points. Digital, and particularly social
media, has driven this change
e x e c u t i v e s u m m a r y
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The adoption of
consumer technology
is a significant trend
that will fundamentally
change the relationship
between FMCG brands
and consumers

• More frequently FMCG brands are merging digital and physical spaces to
achieve visibility amongst potential consumers
• Sales coupons and promotions have a very high rate of participation as
people like to feel that they are getting something for nothing
• Employing random acts of kindness provides an opportunity to get closer
to prospective or existing customer(s), in hope of achieving earned media
by tapping into their social/interest networks
• Consumers are scrutinising the value of brands based on the social good
they do in the world
• Traditional FMCG activities like sampling and endorsements can be super-
charged into content co-creation, gifting, and peer-to-peer acts of kindness
e x e c u t i v e s u m m a r y
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2 • FMCG sector background
While the FMCG food and drink sector has fared relatively well during the
global economic downturn of the last four years, the recession has prompted
significant changes in behaviour amongst consumers.
As austerity continues consumers have become very price conscious and
promotions are now expected. Similarly, the decline in trust in institutions
and ‘big corporations’ has provided opportunities for brands with long-term
heritage to appeal to consumers’ need for reassurance and comfort. These
same motivations have seen impulse-buy treats perform well as consumers
seek relief from the gloomy environment, while perceived luxury goods e.g.
bottled water have seen sales decline according to Euromonitor International.
Looking ahead, industry trade body the Consumer Goods Forum identified
the factors that will affect the FMCG industry in the years up to 2020 in its
‘Future Value Chain 2020’ report. Amongst these the most relevant are:
Mass urbanisation: More than half of the world’s population now lives
in cities. By 2050 this figure will balloon to 70% meaning FMCG and retail
industries will have to respond.
Ageing population: By 2047 people over 60 will outnumber those under 15.
How does the industry respond to this older population?
Sustainability: By 2030 the world’s population will reach 8.3 billion, boosting
demand for food and energy by 50% and fresh water by 30%. FMCG
companies will have to respond to this by adopting sustainable practices and
demonstrating this to consumers.
Increased impact of consumer technology adoption: This will affect
consumers’ own behaviour, while at the same time providing the ability to
influence the buying behaviour of other consumers as the use of social and
digital media continues to spread.
Increase in consumer service demands: will define new service models,
offered via the Internet, that move beyond selling individual products and
bring different types of solutions to consumers and shoppers.
F M C G s e c t or bac k ground
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“Companies that serve
tomorrow’s consumers
will need to build more
sustainable businesses
and drive brand value
and sales through
greater engagement
with increasingly
sophisticated and tech-
savvy consumers.”

These trends emphasise the need for FMCG companies to continuously
innovate to best adapt to change at global, local and personal levels.
As Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola
Company said in June 2012: “Companies that serve tomorrow’s consumers
will need to build more sustainable businesses and drive brand value and sales
through greater engagement with increasingly sophisticated and tech-savvy
consumers.”
F M C G s e c t or bac k ground
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3 • FMCG sector – Social Brands 100 insights
In order to understand how FMCG brands are currently performing in social
media relative to other sectors, we have taken an in-depth look into the
performance of FMCG brands in Headstream’s Social Brands 100 report.
Social Brands 100 (SB100) is a global ranking of those brands that are
leading the way in social media. Brands do not pay, or apply, to be considered
in the ranking. The only way to participate is through a crowd-sourced
nomination process on Twitter that establishes a long-list of brands. Analysing
the intensity of interactions between these brands and individuals on social
and digital platforms, and giving each one a Data Score establishes a shortlist
of 100 brands. The final ranking from one to one hundred is then established
by adding a score for each brand from an expert panel of judges.
The sectors featuring in the SB100 are: Automotive, Charity, Entertainment,
Fashion Beauty, Financial Services, FMCG, Manufactured Goods, Media,
Retail, Services, Technology, Telecoms, Travel Leisure.
The following section outlines FMCGs sub-sector’s performance by
aggregating the Data Score from the 38 FMCG brands that were nominated
for the long-list (including the 14 brands that went forward to appear in the
final Social Brands 100).
SB100 ranked FMCG brands
There was a strong representation from FMCG brands in this year’s Social
Brands 100.
The nominated FMCG brands were: Aunt Bessies, Bombardier Beer, Bray’s
Cottage Pork Pies, Breckland Orchard, Burts Chips, Cadbury, Castello Cheese
UK, Cravendale, Divine Chocolate, Doritos, Douwe Egberts, Ella’s Kitchen,
Fox’s Biscuits, Gower Cottage Brownies, Greenbaby, Hansa Pilsener, Heineken,
Holywell Spring, Innocent, Life Lock, Lurpak, Lush Cosmetics, Marmite,
MaxiRAW, Muddy Boots Real Foods, Oral B, Orchard Pig, Origin Coffee,
Red Bull, Relentless Energy Drink, Ribena, Snickers, Starbucks, Tetley, The
Collective NZ, Tropicana, Vibe Energy Gum, Virtuous Bread, Walkers Crisps.
F MC G se c t o r – s o c i a l b r a n d s 1 0 0 i n s i g h t s
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For the full SB100 report:
www.socialbrands100.com

Of these, fourteen were ranked in the overall top 100:
Innocent (#1)
Cadbury (#7)
Lurpak (#13)
Red Bull (#13)
Cravendale (#19)
Tetley (#24)
Marmite (#34)
Muddy Boots Real Foods (#53)
The Collective NZ (#57)
MaxiRAW (#68)
Walkers Crisps (#89)
Oral B (#92)
Ribena (#96)
Tropicana (#98)
The Social Brands 100 analysed the social performance of over 300 brands in
the period from January to March 2012. The full methodology can be found
here and the report can be downloaded here.
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facebook
The FMCG sector came fourth of our thirteen sectors for overall Facebook
performance, coming in behind the Services, Retail and Financial Services
sectors.
Looking at the individual areas that make up the Facebook score FMCG
brands are outperforming when it comes to responding to posts from fans,
coming fourth out of thirteen for this metric. The star performers in this area
were dairy business The Collective New Zealand, and MaxiRAW, which both
appear in the overall SB100 top ten for this metric.
Another area of strength is the level of engagement FMCG brands are
creating when they post content on their Facebook pages. Overall the FMCG
brands came fifth out of thirteen sectors in this area. Again MaxiRAW was
a particularly strong performer coming first on this metric and taking the
position as top performing Facebook brand across the entire SB100.
Looking at areas for improvement, the data clearly shows that the number of
posts made by fans, and the interaction from the community with fan posts,
are the areas for improvement. The FMCG brands came eleventh out of
thirteen for the volume of fan posts compared to brand posts, and in last place
for the level of engagement from the rest of the community when a fan posts.
This indicates that community spirit measured by the propensity for peer
to peer conversation to take place isn’t as strong as in other sectors. More
active community management to bring fans together and encourage them to
post content would help resolve this.
YOUTUBE
FMCG brands came sixth out of thirteen sectors for the effectiveness of their
video content on YouTube. This sees them lagging behind sectors such as
Technology, Automotive and Entertainment, and suggests FMCG brands can
improve when it come to producing quality video content that generates views
and interaction.
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TWITTER
FMCG brands have taken to Twitter effectively and came third amongst all
sectors, behind the Services and Media sectors. This strong performance was
built on a number one position for ‘All @brand mentions’ metric that assesses
a brand’s success in spreading its @brand name via Twitter.
There were also above average performances for the Retweets and
Timeliness of Response metrics where FMCG brands featured in fourth and
fifth place amongst the thirteen sectors across the whole of the SB100
Twitter rankings.
Looking at areas for improvement, the data indicates that FMCG brands could
increase their rate of response and conversation with those that engage with
them on Twitter. For the metric that measures the frequency of conversation
between the @brand account and followers FMCG brands came seventh out
of thirteen.
The best performing FMCG brands on Twitter were Tetley and Oral B which
came second and fourth in the overall SB100 Twitter rankings.
Google+
There were some stand-out performances on Google+ from the FMCG sector.
Red Bull came first across the entire SB100 for its Google+ performance,
beating Google itself into second place, and Cadbury featured in sixth place.
However, the overall performance was not as impressive with the aggregated
score for all FMCG brands putting the sector at ninth place overall. This
reflects the differing rates of adoption between the high performers and
some brands that have used the platform lightly, if at all.
foursquare
The FMCG brands ranked in the SB100 have not adopted Foursquare.
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summary
Overall, the FMCG brands ranked sixth amongst our thirteen SB100 sectors, a
slightly above average showing. So what is the recipe to improve social brand
performance?
While each brand is individual in terms of its objectives and what constitutes
a successful set of social media outputs, there are some general conclusions
we can draw.
Facebook is an area of relative strength where high levels of engagement
are being created with FMCG brands’ posts, and posts from fans are being
acknowledged and responded to. Where FMCG brands could productively
invest more time is in activities and content that encourage more posts from
fans (co-creation) and a more vibrant spirit between fans.
On Twitter the content that is being created by brands is hitting the mark and
providing value to followers. This is indicated by the above average retweet
score, and number one position for the spread of @brand names across
the Twitter platform. The area where FMCG brands can improve is in the
frequency with which they respond to followers. There isn’t a single FMCG
brand in the overall SB100 top ten for this ‘conversation rate’ metric, a clear
opportunity for brands to differentiate themselves.
Google+ has provided significant reach and community interaction for brands
like Red Bull and Cadbury, but other FMCG brands are not using the platform
at all. This is a missed opportunity as the platform provides opportunities to
access a more male and higher average income demographic than Facebook
and Twitter, and to use features such as broadcast hangouts that can create
high engagement and valuable content.
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The area where FMCG
brands can improve is
in the frequency with
which they respond to
followers.

KEY QUESTIONS
• How can you encourage Facebook fans to post their own content, and
comment on one another’s posts?
. Are you community managing your Twitter followers proactively and
conversing regularly?
. Does your content fit into a broader content strategy that is founded on
business goals?
• Do you have monitoring in place to assess what content receives the
highest level of interaction?
• What is your strategy for YouTube, how can video be a more effective part
of your content strategy?
• Are you able to benchmark social performance regularly and use this
knowledge to optimise activity?
HOW HEADSTREAM CAN HELP
• Providing regular social media performance benchmarking using the
Social Brands 100 methodology
• Audits and social analytics
• Content, channel and community strategies and execution
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?
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4 • FMCG sector – CURRENT CHALLENGES AND CASE STUDIES
To put the current challenges for FMCG brands in context we have
examined two areas:
• the changes in the way that consumers make buying decisions, created
by the influence of the social web, and,
• the trends and case studies demonstrating current best practice,
and an effective response to these changes.
how FMCG brands are evolving to use social media
within the consumer decision journey
In classic marketing, the customer acquisition process is thought of as a
purchase funnel. Cold prospects are dumped at the top of the funnel
through awareness campaigns and squeezed down via qualifying actions
e.g. product brochures, sales calls, product demonstrations, and emails.
Those prospects that were hot for your product went on to purchase,
becoming a customer and then added to the CRM database. If the process
was successful, marketers placed it on a rinse and repeat cycle. It was
relatively straightforward.
Unfortunately, the purchase funnel no longer applies. In today’s world, media
fragmentation and the proliferation of digital has resulted in an increase in the
number of brands under consideration for consumers. As a result, the entire
purchasing cycle has shifted. To respond to this shift, the funnel has been
replaced by what McKinsey has termed the ‘consumer decision journey’.
F MC G se c t o r – c u r r e n t c h a l l e n ges a n d c a se s t u d i es
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In today’s world,
media fragmentation
and the proliferation
of digital has resulted
in an increase in the
number of brands
under consideration
for consumers.
Source: Consumer Decision Journey. McKinsey Solution 2010.
AWARENESS
FAMILIARITY
CONSIDERATION
PURCHASE
LOYALTY
THEN: THE PURCHASE FUNNEL NOW: THE CONSUMER DECISION JOURNEY
EVALUATE
COMMIT
EXPERIENCE
INTEREST
TRIGGER
DECISION
TRIGGER
CONSIDER
BUY

The consumer decision journey as illustrated on page 13 is largely influenced
by digital – more specifically the social web – underpinned by social media.
Social media has fundamentally affected the FMCG purchasing landscape and
buying behaviour as consumers look toward reviews and recommendations
rather than a brand’s own messages.
In response to these changes, successful FMCG brands have re-aligned
their marketing to adapt to the new consumer decision journey. Brands are
frequently using social media to create more targeted and contextualised
experiences when consumers are researching FMCG products and services,
not only to remain competitive in the marketplace, but also to ensure they are
delivering the right experiences at the right time for consumers.
We have examined the social media marketing communication activity of
FMCG brands globally over the past 12 months.
To provide structure to the FMCG social media activity explored, we have
segmented the examples featured into three key phases of the consumer
decision journey:
• Initial consideration – Trigger
• Active evaluation – Information gathering, shopping and buying
• Post purchase experience and advocacy
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Initial Consideration – Trigger
Social media plays an important role in the initial consideration stage when
it comes to the purchase of products for food and beverage brands. At
this stage marketers have an opportunity to deliver value in the form of
information, and entertainment. The purpose of valuable content or ‘social
currency’ during this phase is to generate earned media for a brand,
achieving cut through in a crowded marketplace, thus reaching as wide an
audience as possible.
Experiential meets social
More frequently FMCG brands are merging the digital and physical spaces to
achieve visibility amongst potential consumers. Through experiential activity,
brands have created opportunities for engagement and interactivity by
facilitating an experience that is both personable and shareable across social
media, helping to boost the potential of earned media.
• Extending the functionality of a standard food vending machine, Unilever
developed the ‘smile-activated’ (http://youtu.be/V5bs_pIFuto) vending
machine that dispensed free ice cream in exchange for smiles. The
hacked machine featured a camera with motion/gesture control and LCD
screen which mirrored exactly what was placed in front of the camera.
When a passerby was drawn to the machine, the camera detects a face
and prompts the person for a big smile. The custom developed ‘smile-o-
meter’ measured the grin and if the smile was satisfactory the consumer
would receive a free ice cream. A photo of the person smiling was taken
by the machine and with permission could then be uploaded and shared
via 3G to Facebook.
• In support of its Olympic 2012 sponsorship, Cadbury (http://www.
cadbury.co.uk) created ‘Cadbury House’ located in London’s Hyde Park.
Upon entering, guests were given an RFID-enabled ID badge linked directly
to their personal Facebook account. Once in the exhibit, users could
‘check-in’ on Facebook by placing their badge next to a RFID scanner.
Photos could also be posted directly to Facebook using the RFID badge.
Cadbury’s social media channels experienced sharp growth over the
17 days of the Olympic Games with its Facebook page experiencing
a 20% lift in 17 days adding an additional 35,000 followers.
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casestudies
More frequently FMCG
brands are merging
the digital and physical
spaces to achieve
visibility amongst
potential consumers.

SOCIAL VIDEO
In the UK, increasing investment in video and social media is credited with
helping FMCG brands to shift focus from direct response activity. In the US,
marketing spend on digital video increased 42% from 2010 to 2011 and in
the UK it grew by 100% over the past year, (in the UK, marketers now spend
more online than they do on TV).
• Milk brand Cravendale (http://www.milkmatters.co.uk) produced a TV
spot (http://www.youtube.com/watch?v=h6CcxJQq1x8) showing what
happens in a world where cats are passionate about milk. Especially when
in the world in which cats evolve opposable thumbs! The spot which was
seeded on YouTube achieved over 6.5 million views and helped establish
Cravendale as the UK’s #1 branded milk.
• Memetic advertising from brands is becoming increasingly popular. Smart
Water (https://www.facebook.com/smartwater) in the US produced a
TV spot featuring celebrity Jennifer Aniston referencing famous memes
such as double rainbow and dancing babies. Immediately after its release
the video hit 100,000 views and went viral itself. Vitamin water (https://
www.facebook.com/vitaminwater) also embraced internet culture
within their ad by leveraging Internet memes (http://www.youtube.com/
watch?v=DRQFJF6OV4g). The video paid homage to the ‘Nyan cat’,
‘sexy sax guy’ and ‘Filipino inmates’ dancing to Michael Jackson,
achieving 500,000+ views on YouTube.
• Beer brand Fosters (http://www.fostersbeer.com) has long been associated
with comedy including its TV spots and sponsorship of live comedy events.
On its fostersfunny.co.uk (http://fostersfunny.co.uk) website, the brand
released a series of web only video clips from comedians such as Steve
Coogan as Alan Partridge, and sketches from classic British comedy
series The Fast Show. The videos themselves were shared on YouTube
and became a trending topic on Twitter as each new video was released.
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casestudies

storytelling across social media
Today it isn’t possible for brands to simply curate or aggregate content and
expect consumers to immediately advocate products and services. Branded
content will only be successful if it is used to tell a broader and coherent
story, it is made clear why the story matters, and it is distributed correctly.
Storytelling as a discipline has become increasingly popular for brands as
a way to co-create content that is based on real experience rather than
fabricated ones.
• Wholefoods have a dedicated blog for storytelling (http://www.
wholefoodsmarket.com/blog/whole-story) featuring stories on sustainability,
organic and urban farming told by the experts who are part of the company’s
supply chain. In addition Whole Foods launched branded content initiatives
via a dedicated YouTube account (http://www.youtube.com/user/
WholeFoodsMarket) featuring insightful stories from people who share
their personal accounts of sustainable, organic and urban farming.
This content is then used to tap into communities with shared interests.
active evaluation – information gathering, shopping and buying
Consumer-driven marketing (e.g. Internet reviews, word-of-mouth,
recommendations from friends and family, in-store interactions and
recollections of past experiences) at the active evaluation stage is now more
important than ever. Consumers have increased control of this process, actively
‘pulling’ and pushing content in the form of information to help themselves and
others in the decision making process.
To ensure food and beverage brands do not miss out, marketers are looking to
influence the consumer-driven touch points by joining the conversation at the
right moment, and/or facilitating conversations by listening to questions and
providing contextually relevant information to influencers.
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casestudies

Social coupons promotions (Fan bait)
Sales coupons and promotions have a very high rate of participation as
people like to feel that they are getting something for nothing. US market
research company Chadwick Martin Bailey have found that one in four
consumers say that their main reason for becoming fans of food and
beverage brands on Facebook is for vouchers.
Both coupons and promotions can easily generate excitement amongst both
new and existing customers. Marketers are using Facebook brand pages as
a repository for coupons and promotions which can be exchanged for ‘likes’
or ‘shares’.
• In an exchange for likes, Mentos (https://www.facebook.com/MentosUS)
produced a bespoke ‘free Mentos’ tab whereby users could print off a
coupon to redeem a free pack.
Social sampling
Brands are using the social and sharing nature of the web to their advantage.
As opposed to transferring a sampling campaign online and hoping for
interaction, social media provides a platform to connect with customers,
facilitating connections and conversations boosting earned media potential.
• Starbucks invited its fans to share 280,000 free pints of Starbucks ice
cream (http://www.starbucksicecream.com) via its bespoke Facebook app.
Through the application fans had the opportunity to surprise and delight
their friends and family with free ice cream, simply through data entry and
capture and social sharing.
• Starburst via its Facebook page (https://www.facebook.com/Starburst)
announced their new Starburst Morph confectionary, providing free
samples to the first four thousand fans who requested the samples.
Facebook commerce (F-Commerce)
The Facebook platform has allowed brands to move away from replicating
existing commerce experiences, to building experiences that take advantage
of the community and the social sharing functionality on the site.
• Rather than replicate a traditional web store on the Facebook platform,
Heinz Tomato Ketchup (http://www.facebook.com/HeinzKetchup)
used the site to generate earned media and advocacy for its Balsamic
Vinegar ketchup. An initial run of 3,000 bottles were sold exclusively
through Facebook to build excitement around the launch. The Facebook
community therefore had exclusive access to trial the product before it
was available in store.
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casestudiescasestudiescasestudies
Sales coupons and
promotions have a very
high rate of participation
as people like to feel
that they are getting
something for nothing.

SOCIAL ADVERTISINg
Savvy marketers are using social ads on both Facebook and Twitter platforms
to highlight brand content in an attempt to boost earned media around a
product campaign.
• Cadbury were amongst the first to use a Promoted Trend in relation to the
Olympics in the UK. It ran a Promoted Trend 100 days out from the event,
promoting its Olympics advent calendar. Cadbury claimed to have seen
10,000 people tweeting about it on that day.
Social branded entertainment
Branded entertainment is simply communication that plays on people’s
emotions. If the content provides value in the form of entertainment then it
will generate conversations and earned media. For marketers the advantage
of branded entertainment is that you do not need huge budgets to reach an
audience of millions if the content delivers true value. Multi-channel branded
entertainment that incorporates social media and engages an audience on a
deeper level helps build a brand in the mind of the consumer.
• In support of the 2012 James Bond ‘Skyfall’ movie, Heineken
created a piece of branded entertainment in the form of a Facebook
application. ‘Crack the Case’ (https://www.facebook.com/heineken/
app_448213661885294) invites aspiring 007s to step up and see what
it takes to become a secret agent. Players connect through Facebook to
receive a personalised experience as you journey through the game helping
the central character to crack the case. The reward is not only a unique
brand experience but video content that can be shared amongst personal
social graph.
Random acts of kindness
Random acts of kindness is quite simply carrying out a selfless act that
looks to assist or cheer up an individual or group of people. From a brand’s
perspective, employing random acts of kindness provides an opportunity to
get closer to prospective or existing customer(s), in hope of achieving earned
media by tapping into their social/interest networks.
• Cadbury regularly issues bespoke chocolate bars and treats to charities
and celebrities on Twitter who mention Cadbury, or chocolate. Many
celebrities tweet pictures of themselves with the Cadbury bars that is
followed up by a retweet and response from the official Cadbury Twitter
feed (https://twitter.com/CadburyUK).
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Influencer outreach
One of the most popular forms of social media marketing is influencer
outreach, which is essentially celebrity endorsement of a product. This tactic
is akin to traditional PR but is effective in generating awareness i.e. short-term
spikes in earned media for a piece of content and not in shifting behaviour.
• In what became a controversial campaign that was eventually cleared
by the ASA, chocolate bar Snickers recruited a number of celebrities
on Twitter to tweet out of character. One example is Manchester United
Footballer Rio Ferdinand tweeting about the joys of knitting. This caused a
huge surge in followers tweeting about his strange tweets. Several tweets
later it was revealed to be a marketing ploy by Snickers, the celebrities
then tweeted a picture of them with a Snickers bar, accompanied by the
text ‘you are not yourself when you’re hungry’.
post purchase experience and advocacy
Once a product purchase has been made, the post purchase experience
kicks in, and brands need to ensure they are supporting the consumer on a
continuous journey. Following a purchase it is not uncommon for consumers
to use social media such as forums and social networks to share and validate
their recent purchases.
Savvy marketers are looking to join the conversation at this stage and
providing an after-sales experience that inspires loyalty, repeat purchases and
keeps competitor products/services at bay is key. This brand presence should
not be limited to online, but consideration is given to blending the social web
and physical world together to create new experiences.
Exclusive content – augmented reality and social sharing
Brands are increasingly using augmented reality to augment (overlay) real-
world products with virtual experiences, as a way of bringing packaging to life
in more exciting and engaging ways.
• Starbucks for Valentine’s Day produced heart print coffee cups.
Customers who downloaded the Cup Magic iPhone app (http://www.
starbucks.com/coffeehouse/mobile-apps/starbucks-cup-magic), and
placed the cup within the phone’s vision, experienced the hearts coming
to life with heart-shaped flower petals flying off of the cup. You could then
send a video of the scene to your loved one directly via Facebook.
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casestudiescasestudies

Exclusive content – QR CODES
FMCG brands are beginning to use QR codes on product packaging, creating
more visual and interactive experiences for customers. The experiences delivered
in the form of functional, educational or pure entertainment content are
delivered simply through customers pointing their smartphone at the QR code.
• Salanova (http://www.salanova.com), a salad company from Holland,
employed QR codes on their ‘Salafresh’ product, which is a potted salad
lettuce that enables you to grow your own salad in the kitchen. When
consumers scan the code, they are directed to a mobile-friendly version
of the site where they can find recipes, inspiration and other salad
information and tips.
Reward – Advocacy
For FMCG brands, social networks and location based networks can be an
inexpensive way to generate earned media about product or brand at a
specific location, with the opportunity to identify and form closer relationships
with loyal customers with rewards.
• For Starbucks, regular customers can ‘check-in’ using Foursquare. The
person with the most check-ins at a particular store would earn the title
of ‘Mayor’ and would be rewarded with free coffee at that store. Moving
beyond monetary rewards, Starbucks provided rewards such as invitations
to special events and exclusive digital content.
• Diet Coke rewarded its loyal fans by offering them the chance to receive
a 30-second party to celebrate the brand’s 30th anniversary. People were
invited to tweet @DietCokeUS and complete a task, such as completing a
sentence. Winners were thrown a short party and received a year’s supply
of Diet Coke.
Reputation management
An online reputation management strategy is not just about managing
negative comments and detractors within the online space, more importantly
it forms part of strategic brand management. Monitoring, identifying, and
influencing your online reputation within social space, can assist in developing
new opportunities and brand/product insights.
• Kellogg’s ran a UK taste test panel with online site NetMums for its
new ‘Choc ‘n’ Roll’ cereal. Following the online feedback on NetMums’
community forums, Greg Peterson, the MD of Kellogg’s worked with the
forum to not only discuss their thoughts on ‘Choc ‘n’ Roll’ but also to
gather feedback and answer questions on Kellogg’s cereal in general.
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Social good
Consumers are scrutinising the value of brands based on the social good
they do in the world. Successful brands currently doing social good are those
who display authenticity with genuine intentions, forming part of their wider
corporate social responsibility program. Consumers can see right through
brands that do social good as a PR exercise in hope of a quick win, resulting
in a reputation management issue.
• Innocent drinks partnered with National Trust for an on-pack promotion
and social media campaign that aimed to increase the bee population.
The ‘buy one get one bee’ initiative was a push to help reduce the
disappearance of bees in the UK. Limited edition bottles helped introduce
2 million honeybees into Britain through its work. Alongside the promotion,
Innocent provided The National Trust with beehives for 40 UK sites and
new beekeeper kits.
Crowdsourcing
Customer loyalty is predominantly down to trust. To develop trust within
relationships, the key is to be open and honest, which in business boils down
to transparency.
Our networked world fuelled by social media has led to like minds connecting
on topics of interest. For savvy FMCG marketers, tapping into the thoughts
and knowledge of like-minded communities has helped with current
and future product development. On some occasions this has delivered
tremendous competitive advantage.
• Heineken partnered with global ideas and inspiration website ‘PSFK’ to set
up the ‘Ideas Brewery’, an innovation competition encouraging readers
around the world to reinvent their long-standing draught beer experience,
packaging, sustainability and transportation. The brand established the
‘Ideas Brewery, a campaign set up to challenge the current norms within
the industry’. All ideas submitted were voted upon by the community
and finalists could win cash prizes as well as be invited to participate in an
idea-enhancing workshop in Amsterdam. Through this initiative Heineken has
the potential to use social to its fullest potential and create products and
services that have been created by the community, for the community.
F m c g se c t o r – c u r r e n t c h a l l e n ges a n d c a se s t u d i es
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casestudiescasestudies

summary
The complexity of the consumer decision journey forces brands to adopt new
ways of marketing and this in turn will influence marketing expenditure.
Rather than focus purely on the awareness phase, consideration now needs
to be given to the whole process, ensuring that everything from information
gathering, to post-purchase experiences and support are of consideration.
For the food and beverages FMCG sector there is the benefit that consumers
have many interactions with their products, and/or regularly are in proximity
to the product when in store. The opportunity is available for savvy brands
to stitch together the customer’s real world and digital world activities to
increase purchase intent, loyalty and advocacy.
At the same time traditional FMCG activities like sampling and endorsements
can be super-charged in to content co-creation, gifting, and peer-to-peer acts
of kindness.
The success or failure of these kinds of initiatives is underpinned by content.
To get the desired earned media (word of mouth) effects, the content must
be valuable in the eyes of the community and therefore worthy of sharing.
key questions
• Does your social strategy deliver the right content, at the right time,
in the right format for customers?
• Does your marketing provide value of different kinds to customers
e.g. utility, monetary, exclusive information, rather than simply
pushing messages?
• Do you monitor social media effectively, with the intention of joining
conversations at appropriate times?
• Are you listening to your customers’ post-purchase conversations,
and facilitating sharing and customer care where appropriate?
how headstream can help
• Content, channel and community strategy development
• Insights from social media monitoring
• Creative campaigns
• Community management
• Social media training to up-skill in house teams
f m c g se c t o r – c u r r e n t c h a l l e n ges a n d c a se s t u d i es
p ag e 2 3
?
!
...traditional FMCG
activities like sampling
and endorsements can
be super-charged in to
content co-creation,
gifting, and peer-to-
peer acts of kindness.

5 • FMCG sector – The future of social media
Research included in this white paper has highlighted recent social media
activity executed within the context of food and beverage industries, working
within the framework of the consumer decision journey.
As highlighted by the aforementioned analysis, the complexity of the
consumer decision journey forces brands to adopt new ways of marketing
and this in turn will influence marketing expenditure. Rather than focus
purely on the awareness phase, consideration now needs to be given to the
whole process, ensuring that everything from information gathering, to post-
purchase experiences and support are of consideration.
areas for further study and consideration
To further continue the evolution of social media within the food and
beverage industries, and to create even greater value for brands, we at
Headstream are looking into future social media developments. The following
areas of research represent more promising possibilities:
always on MARKETING:
Media fragmentation, connected consumers and the blurring lines between
advertising and PR led Headstream to develop the Paid, Owned, Earned,
Network and Borrowed media framework (http://blog.stevesponder.com/paid-
owned-network-borrowed-and-earned-media). This framework allowed us to
help plan our clients’ content distribution in order to generate earned media.
For brands to be relevant and influence the initial consideration and active
evaluation stage of consumers, content itself can be planned in an ‘always-on’
strategy. As opposed to just focusing on the BIG idea, marketers should
be looking to focus on the LONG idea. Consideration is given to taking the
consumer on a longer journey of engagement and loyalty over time, this is
achieved via valuable pieces of content that stitch together to form a more
compelling campaign.
Coca-Cola is one brand that has restructured its internal marketing team to
place content at the heart of everything they do. Their ‘Liquid and Linked’
2020 vision for content focuses on liquid content that can be shared
(frictionless), and linked content which is related to brand purpose. The brand’s
70/20/10 content plan leans on always-on.
f m c g se c t o r – t h e f u t u r e o f s o c i a l m e d i a
p ag e 2 4

Interactive technology:
We have already featured a few experiential examples of food and beverage
brands’ use of multi-touch screen product displays and kiosks. Exciting
developments are happening on a daily basis in the areas of touch, gesture
recognition, voice, face detection, eye tracking, thought and smell.
All of these available interactions will have a profound impact on the way
people interact with technology, so much so that in the not too-distant future,
we will interact with technology in the same way we interact with each other –
naturally.
Electronics giant Samsung in January 2012 demonstrated their new ‘Smart
Glass’ technology (http://www.youtube.com/watch?v=m5rlTrdF5Cs). Smart
Glass is a transparent touch screen glass which allows for digital content
to be augmented directly on the glass. For food and beverage brands, this
technology not only can be used to create more engaging vending machine
experiences, but more creative consideration can be given to displaying user
generated content such as customer reviews and sharing digital content to
social networks.
Audio watermarking and connected TV:
The next generation of television known as ‘Connected TV’ leverage the web,
delivering apps and surfacing web content.
Connected TVs offer brands a platform to develop applications such as
branded entertainment and utility, allowing users to access content direct
from the sofa in lean back mode. Branded content such as videos and games
can now be enjoyed and shared via social networks on a larger screen rather
than limited to mobile and tablet screens.
Red Bull is one beverage brand that has decided to package up sponsorship
content in the form of a smart TV app ‘Red Bull TV’. The Red Bull TV channel
delivers original programming and extreme sports coverage to smart TV
owners, providing access to a wide variety of content.
In addition to developments such as connected TV, the second screen
(mobile, tablet) used to complement the first screen (TV) already delivers new
possibilities for marketers. Audio watermarking embedded within applications,
for example Shazam (http://www.shazam.com) will allow viewers to receive
content such as promotional discounts, exclusive invitations to VIP events
etc... via audio triggers within the application.
p ag e 2 5

For the uninitiated, Shazam is a smart phone application that uses audio
watermarking technology to serve up content. Shazam achieved its popularity
back in 2010 as a music identification service for unfamiliar songs we were
listening to. Users install the Shazam app on their mobile phone and by hitting
the “tag now” button and holding the phone’s mic up to a speaker, the app
will usually identify the song and provide artist information, as well as a link
to purchase the album.
With more retail brands creating their own applications for mobile and tablets,
incorporating audio watermarking means that users can unlock content
e.g. promotions, coupons, entertainment, utility when using or viewing content
on television, in-store and on tablet via the companion app and share this
content amongst their social network.
General Mills in December 2011 rolled out an interactive TV campaign for
its home baking brand Pilsbury incorporating Shazam. Tech savvy mums
could ‘Shazam’ when the TV ad was aired, and receive recipes and additional
content that could then be shared amongst their social network.
Internet of Things – social web of things:
The social web of things is a social network for things and services that you
use in your daily life. Today we connect with our friends via social networks; in
the future it is believed that physical products such as food and drink can and
should connect with the Internet and our digital selves in the same way.
Moving a step toward the world of the Internet of Things, Evian in France
introduced the ‘SmartDrop’, a web enabled 4-inch magnet that allows you to
schedule deliveries of Evian bottled water. The device connects to your WiFi
network to transfer orders directly from your fridge.
p ag e 2 6

p ag e 2 7
key questions
• How informed, and agile, is your social media team to respond to
new opportunities?
• How does each marketing activity fit into a compelling ‘LONG idea’ for
your brand?
• How are your digital world and real world customer experiences being
coordinated to create a cohesive experience for the customer?
• Do you have a landscape of the relevant interest graphs for your brand?
how headstream can help
• Education and training to keep ahead of latest trends
• Content, channel and community strategy and execution
• Insights from social media monitoring
?
!

conclusion
Social media has made every consumer a potential brand gatekeeper for
the FMCG brands they experience every day. As a result positive customer
reviews, endorsements and comments are becoming an increasingly
important goal for FMCG marketers.
Generating this positive conversation around a brand requires significant
investment in the relevant communities by the brand. This encompasses both
time investment to maintain genuine dialogue, and investment in content
to provide genuine value to consumers that they will care about, and are
therefore more likely to share.
With increasing smart phone penetration leading means that more and more
consumers are accessing views and reviews at the point of purchase. Those
brands that can tailor their approach to offer value to the consumer, whether
monetary, entertainment, information etc, at this crucial point of purchase will
be able to gain a crucial over competitor brands.
getting started
To make the most of these opportunities brands should consider:
• making social media an integral and leading part of the marketing strategy,
not an afterthought,
• co-ordinating social media strategy and activity across departments
that may traditionally have been separate e.g. marketing, customer
services, technology,
• introducing real-time social media monitoring,
• creating a 24/7 capability to social engagement via content creation and
community management.
While these developments require significant time investment they will create
a socially enabled retail organisation that is ready to face into the dynamic,
highly informed and smart consumer of the social age.
Talk to Headstream
Twitter: @headstream
Web: www.headstream.com
conclusion and g e t t ing s t ar t e d
p ag e 2 8
Generating this positive
conversation around
a brand requires
significant investment
in the relevant
communities by
the brand.

how can headstream help?
Headstream is helping marketers across diverse sectors move beyond
funnel-inspired push marketing towards engagement, and building win-win
relationships with prospects and customers. We can help in the
following ways:
planning
We can help you get your thinking straight and work out how you’ll prove ROI.
This is valuable before embarking on any activity or developing your social
media strategy
• audits and social analytics
• insights from social media monitoring
• content, channel and community strategy
• influencer identification
execution
With seven years experience of rolling out successful social activity for
national and global brands we know how to get cut through and build lasting
communities:
• creative campaigns
• influencer outreach
• community management
• content calendars
benchmarking
Using our leading Social Brands 100 methodology we can provide regular
social media performance benchmarking against your key competitors.
education
We offer a broad range of training options, from simple best practice papers
and briefing sessions to in-depth bespoke education programmes. We have
experience of working with senior management on a 1to1 basis through to
sales, marketing, customer service and HR teams.
h e ads t r e am
p ag e 2 9

about headstream
Headstream is a specialist social agency and part of the Lawton Communications
Group. For the past seven years we’ve been helping brands like Lush, Activision,
and PO Cruises become more successful by embedding social into their
marketing communications. Headstream is also the agency behind the
influential Social Brands 100 ranking of high performing social brands.
Find out more at www.socialbrands100.com.
we believe
• Social is making marketing exciting again
• Social brings brands closer to customers
• Social should be simple
• When we have fun with our clients, we do better work.
www.headstream.com, or follow us on Twitter @headstream
h e ads t r e am
p ag e 3 0

sources
http://www.psfk.com
http://wallblog.co.uk/2012/06/11/why-social-media-counts-when-it-comes-to-
fmcg-infographic
http://www.socialbakers.com/blog/527-finally-here-the-biggest-global-social-
media-report-on-facebook-industries
http://www.impinj.com/blog/author/jmcfarland
http://www.bizcommunity.com/Article/196/467/69214.html
http://sparksheet.com/the-human-side-of-brand-storytelling
http://www.squarecode.biz
http://www.theconsumergoodsforum.com/2-wwedo/2.2-
programmes/2.2.futurevaluechain.asp
the authors
Steve Sponder – steve.sponder@headstream.com
Tom Chapman – tom.chapman@headstream.com
for more information
Andrea Catt
andrea.catt@headstream.com
+44 (0)23 8082 8520
S ourc e s | au t h ors | for mor e informa t ion
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Building An FMCG Social Brand 2012

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