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Lynn A. Kuntz

The Hot Pot is a goulash of news, opinions and advice about designing food products and other issues affecting our industry. Its moderator and sometimes contributor is Lynn A. Kuntz, editor of Food Product Design. A lifetime of food-industry experience, first in the trenches and currently via the written word, has shaped her knowledge base and her opinions―and she's not afraid to use either of them.

Connecting with Consumers: Trust Me

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Some of the seismic shifts in our world over the last year or so have caused many consumers to rethink their purchasing habits, so food and beverage companies that want to remain competitive need to embrace change. Keena D. Lykins, a public relations senior account supervisor at Rhea + Kaiser Marketing Communications, volunteered to draw on some of her food-industry savvy to consider today’s difficult environment and how connecting to consumers through trust might be key to business success.

   Lynn A Kuntz

With the inauguration of a new president behind us, media is beginning to refocus on the economy, and take a hard look at what’s in store for 2009.

In late 2008, Mintel issued a few predictions about 2009 consumer trends and offered suggestions on what food companies must do to stay competitive and relevant during this economic downturn (I love that there’s a politically correct way to say recession, by the way).

And though some companies may be tempted to cut the marketing budget, with consumers re-evaluating each purchase and looking for less expensive alternatives, this is one time you don’t want to disappear from the consumer psyche. For instance, the research company predicts consumers will “trade down” this year, giving up premium items to save money. Starbucks Corp. is already feeling the pinch of this choice while private label brands have reaped benefits from it.

In all, Mintel reports five major ways consumers will adapt to 2009:

1.      Take control of their lives with the Internet continuing to play a role in consumer empowerment;

2.      Simplify and purify their lifestyles;

3.      Seek out companies that embody trust:

4.      Trade down but up a little too, i.e. pick the $2 coffee over the $4 cup, but buy a better cut of beef for grilling at home: and

5.      Return to playfulness.

 

The third trend is the one I’m thinking about today.

 

Although I’ve seen no scientific data to back this up, I imagine the desire for trust and credibility has always been a part of the consumer decision-making process. But this is the age of transparency. Bloggers, discussion board participants and citizen-journalists enable consumers to easily assemble the information necessary to make accurate—or inaccurate—conclusions about companies. So, the need to be seen as trustworthy is greater than ever, and harder to achieve.

Fortunately, there are several ways a company can build credibility without divulging secret formulas or installing Web cams on the factory floor. Mintel predicts companies will demonstrate trustworthiness by:

·        Removing artificial ingredients from packaged foods;

·        Adding calorie counters to menus; and

·        Tightening up traceability, including more country-of-origin labeling.

 

More important, though, companies should keep in mind that the best ways to build trust with consumers are to:

Do the right thing. This is basic. We all know a company can take every precaution and still end up with a problem. But if you have problem, you had better have been doing the right thing, which includes everything from properly cleaning machines each night to testing ingredient shipments to ensure each batch meets specifications and health and safety standards.

Be open and honest. Tell people what you know, when you know it. As your mother probably said, “I don’t mind that you broke the vase as much as I mind that you lied about it.”

Go beyond the news release. Distributing a release to media is good, but in this day and age, companies need to go farther. Post your news—good and bad—where people will find it, i.e. on Web sites, blogs and discussion boards. There are dozens of ways to connect with consumers and smart companies are exploring all of them.

   –Keena D. Lykins

 

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